Federal agents executed search warrants today at multiple Purrfect Auto locations on Thursday. Back in 2006, the I-Team's hidden cameras caught franchise employees charging for services they never performed.
The Nevada Attorney General accused 11 Purrfect Auto franchises of a common scheme -- luring customers with low cost services and then charging for parts and repairs that are never installed or performed.
Now after nearly three years, the federal government has taken an interest in the company's business practices.
Beginning early Thursday morning, the Internal Revenue Service executed search warrants at multiple locations, according to the U.S Attorney's Office.
Witnesses say the IRS agents closed the business to customers while they reviewed documents and computers within. "I didn't expect to see Internal Revenue show up at the door with guns on their side. Kind of weird, kind of scary," said customer Andrea Frohman.
The IRS declined to comment about the nature of the investigation, though law enforcement sources say Purrfect Auto has been on the agency's radar for several years.
The AG's case against some of the franchisees is scheduled to go to trial this fall.
A defense attorney involved in that case said he was unaware of the IRS activity. He says he will have more information next week.
Calls to the franchise company, Francare, were not returned.
