TRENTON – Acting Attorney
General Paula T. Dow and Criminal Justice
Director Stephen J. Taylor announced that
the owner of Celebration Studios, a now
defunct Chester-based wedding photograph
company, was sentenced today on a theft
charge for failing to pay photographers
he hired.
Marc S. Schwartz, 47, of
Randolph, was sentenced to one year of probation
and ordered to pay $152,443 in restitution
to 20 photographers by Superior Court Judge
Salem Vincent Ahto in Morris County. Schwartz
pleaded guilty to fourth-degree theft of
services on Nov. 10.
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.
Deputy Attorney General
Marysol Rosero of the Division of Criminal
Justice Major Crimes Bureau prosecuted the
case. Detective Cheryl Smith investigated
for the bureau.
The corporate defendant,
Celebration Studios, also pleaded guilty
on Nov. 10 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.
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 executed a Consent
Judgment to pay that amount of restitution,
and Judge Ahto today ordered the company
to pay the 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 an order to
impound all photographs, videos and other
merchandise in the company’s warehouse.
The Division of Consumer Affairs conducted
outreach to former customers of Celebration
Studios and distributed photographs, videos
and other materials to more than 1,400 customers
who had not received their merchandise.
In the July 17, 2009 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.
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