Israeli Company Accused of Defrauding Vulnerable Customers in LA

Los Angeles police are investigating the Israeli company Mazal Group following allegations that its employees defrauded a developmentally disabled customer, Victor Chizulam, charging him over $41,000 for products and an additional $10,000 in tips through deceptive means. Chizulam, who received a large settlement from a car accident, discovered the charges when he sought help with his phone bill. He claims he was coerced into buying skincare products at the Bee & Co. stall in the Westfield Topanga mall, taken to a back room, yelled at, and prevented from leaving until he surrendered his credit card. He also stated he was forced to add tips.

Following the initial report by CBS News, another customer, Gabe Cota, who identifies as having a learning disability, came forward with similar accusations. Cota reported being lured into the same stall with a sample and compliment, ultimately being charged over $3,000. Even after blocking his credit card to prevent further purchases, he alleges the employee convinced him to transfer $300 from his bank account.

A CBS reporter acting as a decoy customer was offered an eye cream for over $1,200, which was then discounted by more than half. She was also offered a purported five-year supply of "Botox in a bottle."

A class-action lawsuit has been filed against Bee & Co. on behalf of over 100 customers who claim nearly $1 million in losses. The company denies the allegations. The investigation by the LAPD encompasses the entire Mazal Group, as another customer in her 70s was allegedly exploited at a different store affiliated with the group. This customer sued and reached a settlement, as did two other clients in their 80s who made purchases at other group-affiliated stores.

Mazal Group received the lowest possible rating, an F, from the Better Business Bureau, which noted the company's failure to respond to 33 complaints. The attorney for Mazal Group reportedly offered to refund Chizulam if he retracted negative reviews and had his lawyer send a letter downplaying the incident. Another company lawyer called the CBS report "one-sided" and blamed a "rogue employee," despite evidence suggesting a pattern and that the store manager also received a "tip." The mall management expressed concern and is considering legal action against the store, which has since closed its doors, though it's unclear if this was a management decision.