NEWARK
– The staging place for the undercover
operation was a four bedroom, three bathroom
Cape Cod-style dwelling that, like many homes
in its Lyndhurst neighborhood, suffered extensive
structural and mold damage as a result of
floodwaters caused by Tropical Storm Irene.
The home served as the base for a multi-agency,
four-day undercover operation to expose allegedly
unregistered home improvement contractors
seeking to capitalize on the August 2011 natural
disaster that left many homeowners in desperate
need of home repair help. As
part of the operation, Division of Consumer
Affairs investigators, posing as homeowners,
responded to home repair advertisements
shortly after the floodwaters receded. The
investigators invited a total of 16 contractors
to visit the undercover house, examine the
damage, and provide repair estimates.
According
to the investigation, a total of 12 contractors
who arrived at the home allegedly were not
registered to perform any residential home
improvement work. But their lack of state-mandated
annual registration did not prevent them
from providing repair estimates exceeding
$30,000 in some cases.
"Some
of the allegedly unregistered contractors
showed up without bringing a single tape
measure, ruler, meter, or any other measuring
device," said Thomas R. Calcagni, Director
of the Division of Consumer Affairs. "According
to our investigation, one allegedly unregistered
contractor, advertising through flyers posted
at a local grocery store, turned out to
have a California driver's license, a Massachusetts
license plate, and a New Jersey post office
box."
Since
2006, New Jersey law requires anyone advertising
or performing home improvement work to register
with the Division of Consumer Affairs. New
Jersey's Contractors' Registration Act and
Advertising Regulations protect consumers
by helping ensure the accountability of
those performing residential improvements.
The Act and regulations require contractors
to demonstrate they have a legitimate business
address that is a street address, and at
least $500,000 in liability insurance, before
they can become registered. The Act also
requires that all home improvement contracts
in excess of $500 contain clear language,
including the project’s agreed-upon
price, starting and ending dates, and scope
of work.
Following
the undercover operation, the Bergen County
Prosecutor’s Office filed fourth-degree
criminal charges against eight of the contractors.
In addition to operating allegedly as unregistered
home improvement contractors, the eight
individuals charged criminally were identified
as not having any business information on
file with the State. In New Jersey, a fourth-degree
offense carries a maximum sentence of 18
months in state prison and a criminal fine
of up to $10,000.
The
Division of Consumer Affairs filed civil
Notices of Violation against the remaining
four contractors who, although having filed
their businesses with the State, allegedly
advertised and solicited home improvement
work without being registered. The four
contractors face civil penalties of $5,000
each.
“We
staged this sting in one of the many homes
in this state that sustained enormous damage
due to Tropical Storm Irene. And like the
damaged homes of many desperate New Jerseyans
who had their lives thrown into chaos by
the extensive flooding, our undercover operation
became an attractive target for those contractors
willing to flout our consumer protection
laws,” said Director Calcagni.
The
undercover operation began in September
2011 as a collaboration between the Division
of Consumer Affairs and Lyndhurst Police
Department. The Police Department identified
the privately owned home whose owner was
willing to host the undercover investigation.
In
the first phase of the operation, undercover
investigators sought out contractors the
way many consumers do – by reading
advertisements online, in newspapers, and
in flyers posted at local stores. The investigators
used the posted contact information to invite
the contractors to inspect the damaged home
and provide repair estimates. The inspections
were conducted over the course of four days,
on October 5, 6, 7, and 13, 2011.
During
the operation’s second phase, the
State provided information from its investigation
to the Bergen County Prosecutor’s
Office, which conducted additional investigation
resulting in the criminal charges against
8 contractors.
“The
Bergen County Prosecutor’s Office
will take all necessary action to protect
local residents, particularly the most vulnerable
citizens,” said Bergen County Prosecutor
John L. Molinelli. “Our office’s
White Collar Crimes Unit commends this pro-active
initiative by the Division of Consumer Affairs.”
Chief
James B. O’Connor of the Lyndhurst
Police Department said, "Homeowners
in Lyndhurst suffered significant damage
and real losses due to Tropical Storm Irene.
It was essential to protect them against
the even greater harm and monetary costs
they could face by hiring contractors who
choose not to comply with consumer protection
laws. This partnership began when Division
of Consumer Affairs investigators came out
to our communities during the initial recovery
period, to warn residents about home improvement
and other scams. The Lyndhurst Police Department
assisted in this effort by identifying the
house that was used, and coordinating this
collaboration."
The
Bergen County Prosecutor’s Office
has filed fourth-degree criminal charges
against the following, allegedly unregistered
contractors, each of which is presumed innocent
until proven guilty beyond a reasonable
doubt:
-
Gerard Carrion, advertising
as “Reliable Handyman Service,”
of Sparta
-
David Czeizinger, advertising
as “Mr. D’s Home Improvement,”
of Kearny
- Joseph
Dellasala, of Hackensack
- Perlat
Jera, advertising as “Jera
Home Improvement,” of Hasbrouck
Heights
- John
Robbie, advertising as “John
Robbie’s Carpentry Plus,”
of North Arlington
- Maria
Somma, advertising as “Chester
& Maria,” of Cranford
- Stan
Stanley, of Wayne
- Peter
Varley, advertising as “Reliable
Home Improvement,” of Annandale
The
Division of Consumer Affairs has filed civil
Notices of Violation against the following,
allegedly unregistered contractors, each
of which may request an administrative hearing
in which to challenge the charges:
-
Jorge Avila, advertising
as Toyo Construction, in Morristown
- Niksa
Dobre, advertising as Asseria
Construction, in Totowa
- Carlos
Guarquila, advertising as CG
General Construction, in Bellville
- Ruben
Silva, advertising as R&S
Home Improvement, in Newark
Calcagni
noted that consumer complaints about unregistered
and dishonest home improvement contractors
were the second-most common complaint type
reported to the Division of Consumer Affairs
in 2010, representing 1,400 of the 13,800
consumer complaints filed that year.
Responding
to this concern, the Division, in partnership
with the County Offices of Consumer Affairs,
launched an enforcement initiative throughout
the spring and summer of 2011 cracking down
on unregistered home improvement contractors.
The
initiative began in March with an undercover
house in Gloucester County, resulting in
civil charges against 18 contractors. The
initiative continued with a statewide mobile
enforcement effort that resulted in another
31 contractors being charged. The charges
announced today bring to 61 the total number
of contractors charged in the Division's
2011 enforcement initiative.
The
Division of Consumer Affairs offers the
following advice for New Jersey consumers
considering hiring a home improvement contractor:
-
Learn whether the contractor is
properly registered with the Division
of Consumer Affairs. The law
requires home improvement contractors
to include their State registration number,
which always begins “13VH,”
on all contracts, signs, and advertisements
as a resource for consumers.
-
Contact the Division of Consumer
Affairs to learn whether the contractor’s
registration is still valid.
Call the Division at 800-242-5846,
access our online database at www.NJConsumerAffairs.gov/LVinfo.htm,
or use the free "New Jersey Professional
License Lookup" iPhone application,
available for download by visiting www.NJConsumerAffairs.gov.
-
Call the Division of Consumer
Affairs to learn whether the contractor
has been the subject of consumer complaints.
You can also check the Division's online
listing of legal filings, at www.NJConsumerAffairs.com/ocp/filings.htm,
to learn whether the business has been
the subject of legal action by the Division.
-
Demand a copy of the contractor's
liability insurance policy, and
contact the insurer to make sure the policy
is valid.
-
It is customary not to pay for
the entire home improvement project in
advance. Pay no more than one-third
beforehand, one-third halfway through,
and one-third upon completion.
In
order to solicit and perform home improvement
work legally in New Jersey, contractors
are encouraged to register with the Division
using the information available at www.NJConsumerAffairs.gov/HIC/HIC_application.htm.
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.
Follow
the Division
of Consumer Affairs on Facebook, and
check our online calendar of upcoming Consumer
Outreach events at www.NJConsumerAffairs.gov/outreach/.
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