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The owner of a furniture store has been arrested and is being charged with defrauding at least 83 victims of more than $290,000. New Jersey's division of Consumer Affairs filed a lawsuit against the man for his alleged violations of the Consumer fraud Act.
According to the lawsuit, William C. Neumann, 61, is guilty of “committing unconscionable commercial practices, making false promises and misrepresentations as well as violating furniture delivery regulations.”
Neumann has been charged with misconduct by a corporate official and theft by deception. His bail is set at $150,000. He faces 20 years in prison and additional civil penalties of at least $100,000 if convicted on all charges. He will also have to repay the victims of his unscrupulous business transactions.
The Fraud
Neumann's company, Cabbage Rose Ltd., did business online as Classic House Furniture and Chelsea Manor Unlimited. As the former, he sold high-end furniture and a $3.95 pamphlet supposedly warning consumers of how to avoid costly interior decorating mistakes.
From January 2004 to January 2007, reports flooded into the Special Prosecution Bureau of the Monmouth County Prosecutor's Office complaining of Neumman's failure to deliver furniture after receiving full payment. The state Division of Consumer Affairs and the Fair Haven Police Department also received similar reports.
According to authorities, Neumann received more than $290,000 in payments from at least 83 customers all around the United States, but never delivered furniture to any of them.
Consumer Affairs officials also said Neumann neglected to pay the $75,000 in civil penalties and compensation for other customers he had cheated as he was ordered to do in a September 2005 consent order.
The director of Consumer Affairs, Stephen B. Nolan, said, “We will not be satisfied until consumers receive the restitution they deserve for the losses they have sustained … Consumers can spend thousands of dollars for furniture and they deserve the merchandise delivered as scheduled, or a refund. Merchants who don't respect the legal rights of consumers will find out, as in this case, that they are not above the law.”
Victim of consumer fraud? You may not be the only one who has suffered the same injustice. Please contact us today for a complimentary consultation with an experiencedConsumer fraud class action lawsuits are specifically designed to help individuals who have been similarly aggrieved to pursue a common goal – namely to hold the deceptive business accountable for any damages suffered. Thus, consumers who have been defrauded by a corporation or other entity may file a consumer fraud class action lawsuit on behalf of themselves and others to seek compensation for their shared grievance.
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