NEWARK – The owner of Fair Haven-based furniture retailers Chelsea Manor Unlimited, The Cabbage Rose, Ltd. and Classic House Furniture has been barred from operating those businesses, under a Consent Judgment filed in State Superior Court in Monmouth County.

The Consent Judgment is against William C. Neumann, Jr., owner of Chelsea Manor, L.L.C. which does business as Chelsea Manor Unlimited, The Cabbage Rose Ltd. and Classic House Furniture, for restitution owed to affected consumers as well as civil penalties and reimbursements to the state for its investigative costs and attorneys’ fees. The companies are also permanently barred from conducting business in New Jersey.

The Office of the Attorney General and Division of Consumer Affairs filed suit against Neumann and Chelsea Manor, L.L.C., The Cabbage Rose, Ltd. and Classic House Furniture last year, alleging that the defendants violated the state’s Consumer Fraud Act and furniture delivery regulations as well as the terms of a 2005 Consent Order with the state.

“This settlement provides relief for the defendants’ deceptive conduct and seeks to provide safeguards against any future violations of the Consumer Fraud Act and regulations by defendants,” Attorney General Anne Milgram said.

Under the Consent Judgment, the defendants owe $302,612 in restitution to 84 affected consumers and $628,129 in civil penalties and cost reimbursements to the state. At present, the state is not aware of any assets that Neumann and any of the entities have to satisfy the Consent Judgment. The state has recorded the Consent Judgment as a lien and will continue to monitor the defendants’ financial status.

If Neumann opens another business in New Jersey within the next five years, he must inform the Division and post a $500,000 bond for the initial year of the new business. After the first year, the posted bond will either be $500,000 or 10% of the business’ gross income, whichever is greater.

“If Neumann opens another business in the future, he will be required to post a bond to ensure that there is some asset available to provide restitution to consumers who may be defrauded by the future business,” Acting Consumer Affairs Director Larry DeMarzo said.

Deputy Attorney General Jennifer D. Dougherty represented the state in this matter.

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