HARTFORD, Conn. -- The former president of an oil company that abruptly closed last month misled thousands of customers into entering prepaid home heating oil contracts, the state is alleging in a lawsuit against the man and his wife.

Attorney General Richard Blumenthal, D-Conn., announced Friday the filing of a state lawsuit against Christopher T. Carr and his wife, Hilary, for the alleged sale of the oil contracts and for fraudulently transferring the title to the couple's Fairfield home to Hilary.

"We are suing this individual Chris Carr because he defrauded individuals out of literally millions of dollars," Blumenthal told Eyewitness News. "We want that money back for those consumers."

The oil company abruptly closed last month with $2 million in debt and left 12,000 customers without oil. Nearly 3,000 of those customers had prepaid contracts.

Blumenthal said Christopher Carr can be linked to $7.7 million of missing money -- about $4 million of which is owed to customers, and the rest is owed to banks.

"There is powerful evidence that he took millions of dollars on behalf of F&S Fuel when he knew the company could not deliver on those pre-paid contracts," Blumenthal said.

Channel 3 Eyewitness News reporter Eric Parker reported some of the money could come from the sale of company assets, some of which took place at a court auction on Tuesday.

The stat is also pursuing a bio-diesel facility to be sold that was backed by Christopher Carr, and the former company president's personal assets.

"Love and affection may be fine between him and his wife, but it won't satisfy those consumers who are owed millions of dollars." - Attorney General Richard Blumenthal

Blumenthal said Christopher Carr transferred his personal home in Fairfield to Hilary Carr "for $0 and 'love and affection' mere days after he was fired from F&S -- a transfer allegedly intended to hinder, delay or defraud the state and other creditors by shielding it from civil action."

"Love and affection may be fine between him and his wife, but it won't satisfy those consumers who are owed millions of dollars," Blumenthal said.

By filing the lawsuit, the state seeks restitution for customers and voiding the transfer of the home.

If the case wind its way through the courts before any resolution, it may be a while before any customers see their money. Blumenthal said he has not ruled out any negotiations, saying he has been talking to Christopher Carr's attorneys.