IRS reportedly serves warrants on LV auto shops

Criminal investigators with the Internal Revenue Service served search warrants Thursday on six Purrfect Auto Service locations in the valley and seized hard drives from computers and other materials, sources close to the investigation said Friday.

The Nevada attorney general's office, which filed a lawsuit in 2006 over allegedly deceptive trade practices at some Purrfect Auto Service locations, earlier provided documents to the IRS. However, the IRS agents are believed to be investigating other matters at locations believed to be controlled by members of the same family.

Operators of two of the locations said their shops were not searched by federal investigators. There are business licenses for 25 Purrfect Auto Service locations in the Las Vegas area.

"Everything is sealed. The search warrants were served at six locations in Las Vegas, but I can't identify the subjects of the investigation," said Natalie Collins, a spokeswoman for the U.S. attorney's office. No criminal charges have been filed. She did not have the addresses of the locations searched. A spokeswoman for the IRS declined comment.

The operation appears to center around Francare Inc., which has identified itself as a franchisor for Purrfect Auto Service. Waqas Abdul Rehman, president of Francare, could not be reached for comment. Nevada secretary of state records show that Francare's office is at 6512 N. Decatur Blvd., Suite 130-513.

Attempts to reach attorneys for defendants in the attorney general's case were unsuccessful.

Purrfect Auto Services made news in November 2006 when the attorney general's office used video equipment from KLAS-TV, Channel 8, to document allegations of improprieties involving work done on cars.

Senior Deputy Attorney General Kathleen Delaney, who has since become a Clark County district judge, filed a lawsuit accusing Sunbar Investments Inc. and several other corporations of deceptive trade practices.

Setrak Mardirossian was president of Sunbar, but the company's corporate charter has since been revoked, according to the Nevada secretary of state's office.

The civil case is pending.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.