Los Angeles City Attorney Hydee Feldstein Soto is suing a Studio City pet organization, alleging it sold commercially bred dogs as rescues in a scheme prosecutors call "puppy laundering."

The civil complaint, filed Oct. 22 in Los Angeles County Superior Court, accuses Wagmor Pets, two affiliated companies and founder Melissa Bacelar of buying dogs from breeders and puppy mills and reselling them to families who believed they were adopting rescued animals. The lawsuit seeks a permanent injunction, consumer restitution and at least $7.3 million in civil penalties, as first reported by the Los Angeles Times.

The case targets Wagmor Pets, Wylder's Holistic Pet Center, Inc. and Doho House LLC. All three share the same Studio City address and are owned and operated by Bacelar, according to the lawsuit, NBC Los Angeles reported.

City prosecutors allege Bacelar bought and resold "hundreds if not thousands of dogs purchased from breeders" in violation of California and Los Angeles animal welfare laws, according to the LA Times. The lawsuit alleges the operation was an "illegal commercial enterprise" disguised as a nonprofit animal rescue.

California law prohibits pet stores from selling dogs directly. Rescue groups can facilitate adoptions but cannot offer commercially bred puppies to get around that ban, NBC Los Angeles reported.

The complaint also alleges Wagmor charged more than the $500 state cap on adoption fees for dogs displayed at pet stores. Bacelar told a city inspector in February that fees could reach $1,500, according to the Santa Monica Daily Press. The lawsuit further alleges Wagmor continued claiming nonprofit status after the IRS revoked it and operated its storefront without required city permits.

Some dogs sold by the defendants had serious health problems and died within days or weeks of purchase, the lawsuit alleges.

Prosecutors said in a press release that 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," KTLA reported.

Bacelar denies allegations

Bacelar disputed the accusations. She told the LA Times on Tuesday, Oct. 27, that the lawsuit is filled with recycled claims that were previously litigated and dismissed. She called the case a "money grab."

In a separate statement reported by NBC Los Angeles, Bacelar said the "allegations are not true" and that she would "respond fully to the City's complaint in court." She alleged the lawsuit is part of a campaign against her waged by two attorneys.

Wagmor became well known after a 2019 appearance on Ellen DeGeneres' talk show. Publicity over the years noted that DeGeneres, Jennifer Aniston, Dwayne Johnson and Jenna Dewan adopted pets from the organization, according to NBC Los Angeles.

A six-year citizen investigation

The lawsuit follows years of work by Santa Monica resident Ashley Oelsen. She began investigating Wagmor in 2020 after learning a Los Angeles-area rescue was flying 100 dogs from China's meat trade to Washington state, the Santa Monica Daily Press reported. Every dog was a French bulldog.

Oelsen had completed an animal welfare and behavior program at the University of Pennsylvania School of Veterinary Medicine. She flew to Washington to see the dogs herself and said the French bulldogs were "friendly, well adjusted, loving, beautiful" and showed no signs of abuse, according to the Santa Monica Daily Press.

Within 48 hours, Oelsen said, she found a lawsuit she identified as Green v. Bacelar, with seven plaintiffs and six dead puppies. She started contacting the plaintiffs from the airport.

Oelsen said she took her findings to the IRS, the state attorney general, consumer protection agencies and Los Angeles Animal Services. None acted on her reports, she said.

The LA Times reported in 2024 on customers who filed lawsuits alleging Bacelar bought dogs cheaply from breeders, misrepresented them as rescues and charged high adoption fees. Veterinary documents obtained by the Times from Missouri showed Wagmor was listed as the final destination for dozens of dogs purchased at Southwest Auction in Rocky Comfort, Mo.

The city attorney's Public Rights Branch is handling the case, No. 26STCV33334. Anyone who bought a dog from Wagmor Pets or has information can email the city attorney's office, according to the Santa Monica Daily Press.