Kinkade's company, Media Arts Group Inc. , was accused of unfair dealings with owners of Thomas Kinkade Signature Gallery franchises. In 2006, an arbitration board awarded Karen Hazlewood and Jeffrey Spinello $860,000 in damages and $1. 2 million in fees and expenses due to Kinkade's company "[failing] to disclose material information" that would have discouraged them from investing in the gallery. The award was later increased to $2. 8 million with interest and legal fees. The plaintiffs and other former gallery owners also leveled accusations of being pressured to open additional galleries that were not financially viable, being forced to take on expensive, unsalable inventory, and being undercut by discount outlets whose prices they were not allowed to match. Kinkade denied the accusations, and Media Arts Group had successfully defended itself in previous suits by other former gallery owners. Kinkade himself was not singled out in the finding of fraud by the arbitration board. In August 2006, the Los Angeles Times reported that the FBI was investigating these issues, with agents from offices across the country conducting interviews.