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NEWARK
– The State Division of Consumer Affairs
this week filed a second lawsuit against
travel company owner Daryl T. Turner, who
in just February of this year settled a
multi-million dollar lawsuit with the Division
alleging a pattern of deceptive business
practices carried out by his numerous vacation
travel membership companies.
The
six-count Verified Complaint filed Monday
in Burlington County Superior Court charges
Turner, individually and d/b/a Reservations,
his wife Robyn B. Bernstein, and their Marlton-based
company, Travel Deals Limited Liability
Company, as well as VIP Executives, LLC,
with violating the New Jersey Consumer Fraud
Act and Advertising Regulations, by failing
to fulfill promises of complimentary cruises
and airfare used to induce attendance at
sales presentations, and failing to provide
the luxury vacation packages at discounted
prices represented during the sales presentations.
On
Tuesday, Presiding Judge of the Chancery
Division, Michael J. Hogan, temporarily
enjoined the defendants from transferring
or disposing of any assets related to the
matter, and specifically enjoined Turner
from any involvement in the business operations
of Travel Deals or from otherwise engaging
in the advertisement, offering for sale,
and sale of vacation packages to consumers
in and outside of New Jersey.
In
a separate action, attorneys representing
the Division of Consumer Affairs and Turner
are scheduled to appear in Superior Court
in Morris County on Friday, June 10, 2011,
for argument on the State’s earlier-filed
Motion to Enforce Litigant’s Rights,
alleging that Turner is in violation of
the February 2011 settlement. (See May 19,
2011 press release, available at www.NJConsumerAffairs.gov/press/vacationtravel.htm
). In addition to barring Turner from engaging
in the travel business in the state for
no less than five years, and from operating
any such business thereafter without State
approval, that Consent Judgment required
Turner to repay consumers nearly $2.2 million
for vacation packages and/or complimentary
items never provided. The Division has alleged
that its recent discovery of substantial
undisclosed assets held by Turner, including
several luxury vehicles, belies his sworn
statement that he is unable to meet any
portion of his restitution obligation.
“As
we allege in our lawsuit, Turner is in clear
violation of his settlement with the State,”
said Attorney General Paula T. Dow. “Every
indication points to Travel Deals being
yet another of Turner’s companies
that dangles too-good-to-be-true offers
of free cruises and international vacations
in front of consumers, defrauds consumers
of their hard-earned money, and then leaves
them with little more than heartache and
frustration.”
To
date, the Division has received complaints
from 15 consumers, the majority of whom
paid between $2,500 and $5,194 for vacation
packages, which as alleged in the State’s
new lawsuit, turned out to be essentially
worthless.
The
alleged scheme is similar to that which
was the subject of the Division’s
previous lawsuit against Turner. According
to that lawsuit, filed in 2009, Turner and
his various vacation travel companies took
payment from consumers and then repeatedly
failed to provide the contracted-for vacation
packages, or refund the money. The defendants
also failed to deliver various promotional
items promised to consumers in return for
their attendance at promotional seminars.
More than 670 affected consumers were identified
in that lawsuit, which named Turner and
his travel companies as defendants, namely
Dreamworks Vacation Club a/k/a Dreamworks
Vacations a/k/a Dreamworks, Five Points
Travel Company, Bentley Travel, Modern Destinations
Unlimited, Blue Water, Vacation Clubs LLC
d/b/a La Bonne Vie Travel, Dream Vacations
International, Inc., and Away We Go Promotions,
LLC.
“Although
Travels Deals is a relatively new company,
the defendants’ unconscionable business
practices are no different than those of
Turner’s prior enterprises: bait-and-switch
promotional gimmicks, empty promises of
deep-discount luxury vacation packages,
and costly and unconscionable cancellation
policies,” Thomas R. Calcagni, Acting
Director of the State Division of Consumer
Affairs, said. “By these latest actions,
we are holding Daryl Turner to his $2.2
million obligation payable to consumers.
And where it seems that Turner has been
slow to catch on, we’re once again
spelling it out in simple terms for these
defendants – if you rip off our citizens,
you will pay.”
In
addition to consumer restitution and reimbursement
of the State’s investigative costs
and attorneys’ fees, the State is
seeking assessment of civil penalties against
the defendants. Under the New Jersey Consumer
Fraud Act, and in light of the Consent Judgment
resolving the earlier lawsuit, any violation
would constitute a second or succeeding
violation, subjecting Turner to enhanced
civil penalties of up to $20,000 per violation.
Under
the Order entered by Judge Hogan yesterday,
the parties are to appear in Court on July
18, 2011, at 1:30 PM, at which time Judge
Hogan will hear argument on the State’s
request for a preliminary injunction, appointment
of a receiver, and asset freeze. The temporary
restraints will remain in effect until then.
Consumers
who believe they have been cheated or scammed
by a business, or suspect any other form
of consumer abuse, can file a complaint
with the State Division of Consumer Affairs
by visiting its website, www.NJConsumerAffairs.gov,
or by calling 1-800-242-5846
(toll free within New Jersey) or
973-504-6200.
Deputy
Attorney General Lorraine K. Rak, Chief
of the Consumer Fraud Prosecution Section,
is representing the Division of Consumer
Affairs. Division of Consumer Affairs Investigator
Murat Botas of the Office of Consumer Protection
is conducting the investigation. The Burlington
County Consumer Affairs Local Assistance
Office assisted in the earlier investigation.
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