|
TRENTON
– Attorney General Anne Milgram announced
that the owner of Celebration Studios, a now
defunct Chester-based wedding photograph company,
pleaded guilty today to a theft charge for
failing to pay photographers he hired. In
addition, the company pleaded guilty to theft
for failing to deliver photographs, photo
albums and videos to thousands of customers.
According
to Criminal Justice Director Deborah L. Gramiccioni,
Marc S. Schwartz, 47, of Randolph, pleaded
guilty to fourth-degree theft of services
before Superior Court Judge Salem Vincent
Ahto in Morris County. The charge was contained
in an accusation filed by Deputy Attorney
General Marysol Rosero of the Division of
Criminal Justice Major Crimes Bureau.
Under
the plea agreement, Schwartz must pay $75,000
in restitution to eight photographers, and
the state will recommend that Schwartz be
sentenced to one year of probation. In pleading
guilty, Schwartz admitted that he hired the
photographers to take photos and videos for
Celebration Studios and failed to pay them
in accordance with their agreements.
In
addition, a plea was entered today on behalf
of the corporate defendant, Celebration Studios,
to a third-degree charge of theft by failure
to make required disposition of property.
The company, through its attorney, admitted
that it engaged in theft and fraudulent business
practices by entering into contracts with
customers and receiving money for wedding
photography services and products that were
paid for, but not delivered.
“We
took swift legal action through the Division
of Consumer Affairs to ensure that any photos
and videos that were in the possession of
Celebration Studios were secured for the affected
couples,” said Attorney General Milgram.
“With today’s pleas, we hold the
company and its owner accountable under our
criminal code for the way that they conducted
business.”
The
New Jersey Division of Consumer Affairs obtained
a Final Judgment and Order on July 17, 2009
against Schwartz and Celebration Studios that
provides for $855,618 in consumer restitution,
$1,836,000 in civil penalties, and $383,684
for reimbursement of the state’s attorneys’
fees and investigative costs. Under its plea
agreement, the company must execute a Consent
Judgment for the same amount of restitution.
At present, neither defendant has any assets
to satisfy the judgments.
The
Division of Consumer Affairs filed suit against
the defendants in January 2008 and obtained
a court order to impound all photographs,
videos and other merchandise in the company’s
warehouse. The Division of Consumer Affairs
has been working to distribute the merchandise
to more than 2,000 customers.
Judge
Ahto scheduled sentencing for Schwartz and
Celebration Studios for Dec. 18.
Detective
Cheryl Smith and Deputy Attorney General Rosero
conducted and coordinated the investigation
for the Division of Criminal Justice Major
Crimes Bureau.
Former
customers of Celebration Studios have until
Jan. 13, 2010 to claim their merchandise from
the Division of Consumer Affairs, under the
terms of the July 17 Final Judgment and Order.
Customers who contracted with Celebration
Studios and have not yet received their photographs
or videos should contact the Division by calling
1-800-242-5846 (toll-free
within N.J.) or 973-504-6200
or by emailing wedding.photos@dca.lps.state.nj.us
to arrange for the pickup or delivery of their
merchandise.
In
the July 17 Final Judgment and Order, Superior
Court Judge Catherine M. Langlois found that
Celebration Studios and Schwartz engaged in
conduct that comprised 1,821 violations of
the Consumer Fraud Act and three violations
of the Regulations Governing General Advertising.
In addition, Schwartz is permanently enjoined
from owning and/or operating any business
in the state through which merchandise is
sold, unless he posts a bond in the amount
of the greater of $250,000 or 10 percent of
his prior year’s income.
Deputy
Attorney General Lorraine K. Rak, Chief of
the Consumer Fraud Protection Section, and
Deputy Attorney General Alina Wells represented
the Division of Consumer Affairs in the civil
action.
###
|
