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News Release

For Immediate Release
August 7, 2009

Senior Assistant Attorney General Connie Stratton
(603) 271-3643

Work Out World Laconia

Deputy Attorney General Orville Brewster Fitch announced that Steven Borghi pled guilty today to two misdemeanor violations of the Consumer Protection Act. Mr. Borghi also pled guilty on behalf of Downtown Fitness, LLC d/b/a Work Out World, Laconia to two felony violations of the Consumer Protection Act. The criminal charges arose out of Mr. Borghi's operation of Work Out World, Laconia, a health club that failed to open.

Work Out World Laconia, a health club located in that city, began taking membership fees from consumers as early as November of 2008, claiming that it intended to open in January of 2009. New Hampshire law requires a health club to escrow membership fees when it obtains those fees prior to opening. The misdemeanor and felony violations of the Consumer Protection Act charged that Work Out World failed to escrow the membership fees it obtained prior to opening and that it violated the Consumer Protection Act by taking deposits and failing to provide the promised services.

Steven Borghi was sentenced to 30 days at the House of Corrections, suspended for 2 years. Downtown Fitness, LLC d/b/a Work Out World was fined $15,000. A condition of the sentence also required that Work Out World refund all individuals who had paid membership fees to join Work Out World which has not opened. Work Out World has refunded those individuals.

Deputy Attorney General Fitch said "This office will continue to protect consumers from businesses which fail to comply with New Hampshire laws. Health clubs in the State of New Hampshire are regulated by statute and the failure to comply with those statutes constitutes a violation of the Consumer Protection Act."

If you have a complaint against any business and wish to file a complaint, visit the Consumer Protection Bureau's Web site.

New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301
Telephone: 603-271-3658