Arizona Attorney General Mark Brnovich obtained $162,000 in restitution for customers who filed complaints against Rastra Holding, LLC, based in Scottsdale. Rastra markets and sells construction materials made from recycled foam plastics to consumers throughout the United States. The restitution was obtained as part of an Assurance of Discontinuance.
Rastra is solely owned and managed by Karl Holik.
Approximately fifteen consumers filed complaints with the Attorney General’s Office against Rastra. Consumers claimed they contracted with Rastra for the purchase and delivery of post-recycled plastic and concrete construction materials, but the materials were never shipped. Based on the allegations in the consumer complaints, Rastra marketed and processed orders it could not fulfill, continued to accept down-payments for products it knew would not ship, deceptively misrepresented fulfillment dates and fabricated excuses for non-delivery, misappropriated consumer funds, and failed to make good on refund promises.
The Attorney General’s Office resolved the investigation by entering into an Assurance of Discontinuance, under which Rastra and Holik agreed to discontinue marketing and selling products it cannot deliver, provide timely refunds, and adhere to all requirements in the Arizona Consumer Fraud Act.
In addition to the $162,000 in consumer restitution, Holik is required to pay $9,500 in attorneys’ fees and investigative costs in monthly installments.
If you believe you have been a victim of consumer fraud, please contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6504, or outside the Phoenix and Tucson metro areas at 1(800) 352-8431. Consumers can also file complaints online by visiting the Attorney General’s website at https://www.azag.gov/complaints/consumer.