NEWARK – The Division of Consumer Affairs and the Monmouth County Prosecutor’s Office today both took actions against William Neumann, a Fair Haven furniture retailer, for allegedly committing fraud against consumers in violation of a 2005 settlement with the state.

Neumann, owner of the Cabbage Rose Ltd. Store doing business as Chelsea Manor Unlimited and Classic House Furniture which all sell furniture via the internet, was arrested today and charged with theft by deception and misconduct by a corporate officer. Also today, Consumer Affairs filed suit against Neumann and his businesses in state Superior Court in Monmouth County.

The state’s lawsuit alleges that the defendants violated New Jersey’s Consumer Fraud Act by committing unconscionable commercial practices, making false promises and misrepresentations as well as violating furniture delivery regulations. Additionally, these actions violate the terms of a September, 2005 consent order with the state.

The defendants also violated the consent order by not paying $75,000 in civil penalties to the state and not paying restitution to consumers.

"The violations defendants committed against consumers will not be tolerated.  Beyond continuing deceptive practices against consumers, Neumann disregarded the terms of a 2005 settlement,’’ Attorney General Stuart Rabner said. "I want to commend the Monmouth County Prosecutor’s Office and the Division of Consumer Affairs for working together and coordinating civil and criminal actions to end this pattern of consumer abuse.”

Neumann and his companies face an additional $100,000 in civil penalties for continuing violations. Each violation of the Consumer Fraud Act and furniture delivery regulations carries a penalty of up to $20,000.

The state in its lawsuit is petitioning that the defendants be permanently barred from engaging in retail business in New Jersey or with New Jersey customers.

Neumann currently sells furniture on the internet at  www.ClassicHouseFurniture.com and www.CabbageRoseltd.com

“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 to receive the merchandise delivered as scheduled or a refund,” Acting Director Nolan said. “Merchants who don’t respect the legal rights of consumers will find out, as in this case, that they are not above the law.”

The defendants allegedly violated the Consumer Fraud Act by:

• Accepting payment for merchandise and then failing to deliver the ordered merchandise;
  
• Failing to provide consumers with a contract form, sales document, or invoice setting forth a promised delivery date and the consumers’ rights in the event of non-delivery on the promised delivery date;
  
• Continuously failing to offer and/or provide consumers with refunds for
  merchandise that Defendants failed to deliver on the contracted for delivery
  date or thereafter;
• Leading consumers to believe that furniture has been ordered from a particular manufacturer when such is not the case;
  
• Continuously failing to notify consumers that Defendants are unable to deliver the merchandise on the contracted for delivery date;
  
• Leading consumers to believe that Defendants can order merchandise directly from the manufacturers when they have not received authority to be authorized dealers of such furniture manufacturers;
  
• Failing to respond to consumer complaints, inquiries and/or requests for refunds;
  
• Using a contract form or sales document that states “Merchandise that has left  the premises is not cancellable, refundable or returnable.”
  
• Misrepresenting to consumers the expected delivery date of merchandise;
  
• Misrepresenting to consumers that a refund is forthcoming, when such is not the case;<
• Misrepresenting that Defendants placed an order for merchandise with a manufacturer, when such is not the case; and
  
• Misrepresenting on their web sites that defendants have access to certain furniture manufacturers when they have not received authority to be authorized dealers of such furniture manufacturers;

Deputy Attorney General Jennifer D. Dougherty is representing the state in this matter. Consumers who wish to file complaints with Consumer Affairs may do so online at http://www.njConsumerAffairs.gov or by calling (800) 242-5846 (toll-free within New Jersey) or (973) 504-6200.

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