Lawsuit accuses Studio City animal rescue of running puppy laundering operation

STUDIO CITY, LOS ANGELES (KABC) -- The City of Los Angeles is suing a celebrity-favorite dog rescue in Studio City accused of operating a puppy laundering scam.

The lawsuit claims Wagmor Pets pretended to save animals while actually buying hundreds, and possibly thousands, from commercial dog breeders and puppy mills and then selling them to unsuspecting people as rescue pets.

"Consumers who believed they were giving rescued puppies loving homes were, instead, allegedly misled into financially supporting the very commercial dog breeding industry they sought to avoid," read a press release from City Attorney Hydee Feldstein Soto's office.

Kim Sill, a board member for animal rescue Shelter Hope Pet Shop, says people have reached out to her over the years with complaints about the business.

"In California, the legal limit for a rescue dog is $500 . She's been selling them way over $2,000 and cooking the books to make it look like it's going to different places and that's against the law," Sill said.

The owner of Wagmor Pets denies any wrongdoing, calling the lawsuit a rehash of old claims that were previously litigated and dismissed.

She took to social media to defend the business, saying "The allegations are not true, and we will prove it in court, just like last time."