D.C. settles church computer lawsuit

The District government Friday announced a settlement that stops a California-based company from collecting tens of thousands of dollars from five D.C. churches that signed leases for over-priced computer equipment.

D.C. Attorney General Peter Nickles said Balboa Capital Corporation has agreed to the settlement without any admission of liability.

The District had accused Balboa of working with D.C.-based Television Broadcasting Online and Urban Interfaith Network of Oxon Hill to market computer equipment leases to dozens of predominantly African-American churches in D.C. The churches were offered free computer kiosks, Nickels said, with the promise that advertising would cover the costs. But the advertising never materialized and many of the churches were left with leases requiring them to pay tens of thousands of dollars.

Nickels said the District is continuing to pursue action against others named in the lawsuit, including Chesapeake Industrial Leasing Co. of Baltimore, and United Leasing Associates of America in Wisconsin.