SAN DIEGO - A company that once held the franchise for 62 Pizza Hut restaurants in San Diego was ordered to pay $695,000 to settle consumer fraud and other allegations, District Attorney Bonnie Dumanis announced Wednesday.

The complaint alleged that RLLW Inc. charged customers an energy surcharge and failed to pay workers' compensation insurance for employees.

The District Attorney's Office filed the lawsuit, which alleged false advertising and unfair competition, in 2004. The Department of Industrial Relations then closed down the restaurants, but they were reopened shortly afterward.

The $695,000 settlement includes a penalty of $315,000, investigatory costs of $125,000 and restitution of $255,000.

"Today's action shows that this office will prosecute these consumer fraud cases on every level possible," Dumanis said. "We will do whatever it takes to get the attention of these businesses that violate the law and let them know they cannot take unfair advantage of San Diegans."

The restitution includes $105,000 to the State Compensation Insurance Fund, which until December 2003 covered the employees of the restaurant. For a period of time after that policy was terminated, RLLW failed to carry workers' compensation insurance, authorities said.

The restitution order also includes payment of $150,000 in coupons to be distributed by the current franchise holder. The coupons will be good for unrestricted discounts of $1 off a large pizza or 75 cents off a medium pie at all Pizza Hut restaurants formerly owned by RLLW.