The Maryland attorney general's office has arranged for the sale of a Laurel health spa that the state took over because of violations by its owner.
The state became the court-appointed receiver for the Grecian Nautilus Spa Sept. 4, after the owner, Louis Andrews of Burtonsville, allowed a bond to expire that would protect consumers if the club closed.
State prosecutors allege that Andrews and a business associate, Carole Haley of College Park, diverted funds from the Laurel facility for their own use.
Prince George's County Circuit Court Judge Arthur Ahalt approved a plan this week to sell Grecian Nautilus to Laurel Fitness and Swim Club Inc.
The operator of Laurel Fitness, Morris Goldman, owns the Laurel Racquetball Club and is part owner of the Capitol Hill Squash Club in Washington and the Baltimore Racquet and Fitness Club, which will open soon.
State officials said the new owner will honor all current club memberships and immediately post a $100,000 bond to protect the memberships.
Under the court agreement, Andrews will turn over about $15,000 of the money he receives from the sale to the attorney general's Consumer Protection Division.
Most of that money will go to pay restitution owed to former customers of a Cockeysville, Md., health club that Andrews owned and closed abruptly in 1979.
The remainder will be used to pay the state for expenses it incurred during its take-over of the Grecian Nautilus Spa.
Merrit Athletic Club Security Inc. helped the state operate the Laurel club.
"Merrit performed a vital public service by agreeing to help us in this unusual situation," Attorney General J. Joseph Curran Jr. said.