The U.S. Transportation Department filed suit Thursday to shut down what it calls an unsafe Las Vegas tour bus operator.
The suit was filed in U.S. District Court in Las Vegas against Avatar Tours LLC and two men the government says run the business, Sean Delaney II and Brenden Delaney.
It appeared Thursday that even before the lawsuit was filed, Avatar had already shut down. It filed for Chapter 7 bankruptcy liquidation on Oct. 18.
"It is my understanding it ceased operations well before the bankruptcy filing date," said the company’s bankruptcy attorney, Robert Atkinson, of the Henderson law firm Kupperlin Law Group LLC.
Atkinson said he couldn’t comment on the allegations in the government agency’s lawsuit, which contained allegations of safety violations. The Delaneys couldn't immediately be located for comment.
The lawsuit said the Transportation Department’s Federal Motor Carrier Safety Administration had ordered Avatar to cease all operations effective Aug. 28.
"Despite the unsatisfactory safety rating, the order to cease and the revocation of its operating authority, defendants continue to operate commercial motor vehicles transporting passengers in interstate commerce. These continued operations threaten the safety and welfare of defendant’s passengers and the general public," the government agency claimed in a motion for an injunction to block the company from operating.
The Kingman Daily Miner newspaper in Arizona reported Oct. 9 that the company was under investigation after Mohave County sheriff’s officers and federal and Arizona state officials shut down two Avatar Tours buses during inspections in late September near the South Rim of the Grand Canyon.
In Thursday’s lawsuit, government attorneys said Avatar’s problems dated to August 2010, when the company was cited by an auditor for violations involving financial responsibility, qualification of drivers and drivers’ hours of service.
"The auditor notified Avatar Tours that it was prohibited from conducting interstate operations unless and until it obtained appropriate insurance, filed proof of such insurance with FMCSA and applied for and was granted operating authority registration," the lawsuit said.
By March, the company received federal authority to operate, the lawsuit said.
In July, however, the company failed a compliance review involving qualifications of drivers, their hours of service and vehicle inspection and maintenance. This review eventually resulted in the order for the company to shut down by Aug. 28, the lawsuit said.