NEWARK
– Attorney General Jeffrey S. Chiesa
and the New Jersey Division of Consumer Affairs
have filed suit against two North Jersey moving
companies accused of enticing consumers with
low cost estimates, then holding the consumers’
belongings hostage with the demand that they
pay hundreds or thousands of dollars more
than the originally agreed-upon prices.
On
Tuesday, May 8, in response to a motion
by the Division, New Jersey Superior Court
Judge Margaret Mary McVeigh issued an order
that temporarily shuts down the defendants’
businesses. The order also requires Paterson-based
Progressive Movers, Inc., Lodi-based ABC
Packing Services, Inc., and their principals
to return consumers’ property without
requiring any payment, voids any contracts
the defendants had to perform future moves
or storage, and prohibits them from selling
or transferring any assets related to the
lawsuit. The Judge will decide after a June
15 hearing whether the defendants’
business activities should remain shut down
pending the outcome of the State’s
lawsuit.
“The
State has no tolerance for unscrupulous
movers who hold consumers’ property
hostage as a form of extortion,” Attorney
General Jeffrey S. Chiesa said. “We
are committed to cleaning up the marketplace
to ensure a fair and safe environment for
anyone seeking to hire a mover – and
to protect the interests of the many movers
who operate honestly and in compliance with
the law.”
The
State has received complaints from a total
of 87 consumers who say they were victims
of the defendants’ predatory bait-and-switch
and other unconscionable business practices,
and other violations of the New Jersey Public
Movers Licensing Act, Public Movers Regulations,
and Consumer Fraud Act. The Division currently
has received more consumer complaints against
the defendants than against any other moving
company.
“The
Division of Consumer Affairs received 199
complaints about moving companies last year
– many of which were filed against
these defendants,” Eric T. Kanefsky,
Acting Director of the Division of Consumer
Affairs, said. “This action stands
as a warning to predatory movers, and a
reminder that consumers should learn as
much as they can about a moving company,
before trusting its workers with their valued
property.”
Defendant
Progressive Movers, Inc., with a principal
place of business in Paterson, advertised
and performed moving and storage services
under a variety of names including Modern
One Versatile Expert Relocation Service,
M.O.V.E.R.S. Inc., and Modern M.O.V.E.R.S.
Inc, according to the State’s ten-count
civil complaint, filed in Passaic County.
The company is owned and operated by Konstantin
Egorov, who is also a defendant in the State’s
lawsuit.
Although
consumers contracted with Progressive Movers,
they later were presented with charges for
packing services and materials allegedly
demanded under the name of a company they
had never heard of before the moves. That
company, ABC Packing Services, Inc. of Lodi,
was not licensed to perform moving services
in New Jersey. ABC Packing and its owner
and operator, Yevgeniy “Eugene”
Piksun, are also defendants in the State’s
lawsuit.
The
State alleges that Egorov and Piskun often
used aliases when interacting with consumers.
Egorov used the first names “Greg”
or “Kyle”; and Piskun used the
name “Sam.” The two men also
allegedly gave documents to consumers using
the name State Wide Box Company, Inc., even
though that company name is not registered
to them, and the actual registered business
by that name has no relation to Egorov or
Piskun.
The
State alleges the defendants conducted a
scheme in which they placed profiles for
Progressive and Modern One on websites at
which consumers search for local movers.
The profiles allegedly did not include phone
numbers, and required consumers to request
estimates via the internet.
The
defendants typically provided artificially
low estimates, such as offering $210 for
a move. When consumers asked to confirm
whether that really was the full price,
the defendants assured them it was, according
to the Complaint. They sent email confirmations
saying the quoted price included services
such as loading, delivery, reassembly, truck
rental, gas, and insurance, and that the
consumer would even receive five free boxes
for packing.
The
State alleges the defendants typically required
consumers to sign blank, incomplete documents,
such as bills of lading, or packing charges
forms, without letting consumers read and
understand the forms. After consumers signed
the documents, the defendants allegedly
filled in the blanks to add exorbitant,
unexpected charges. In many cases, the extra
charges covered services which were unjustifiable
or unwarranted; or which were not explained
ahead of time to the consumers, the State
alleges.
The
additional costs inflated the total price
of each move to anywhere from $500 to $4,940.
The average total price was $1,400 –
reflecting an increase of more than 500
percent above an original $210 quote. The
State alleges that the defendants typically
waited until consumers’ belongings
had been locked up in a moving vehicle,
or in storage, before informing them of
the higher prices. When consumers refused
to pay, the defendants typically told them
their property would be kept in storage
and not returned until the consumers paid
the demanded amount, as well as storage
costs. On one occasion, the defendants’
employees allegedly demanded sex in exchange
for reducing the high price.
On
several occasions the defendants drove away
with consumers’ property, refusing
to return it for days until the consumers
paid. When consumers did receive their property,
items were often allegedly missing or damaged.
The defendants allegedly refused to pay
for lost or damaged goods, and often allegedly
refused to respond to the consumers’
complaints.
Progressive
Movers and Egorov are accused of conducting
these actions while bound by the terms of
a prior Consent Order entered into with
the Division on July 19, 2010. The Consent
Order, agreed upon to resolve earlier consumer
complaints, allowed Progressive to remain
in business while subject to certain limitations
and requirements. Progressive’s and
Egorov’s alleged new violations constitute
failures to abide by the Consent Order,
subjecting them to enhanced civil penalties.
The
Division is seeking full restitution for
the affected consumers, as well as civil
penalties, and repayment for the State’s
investigative costs and attorneys’
fees.
Advice
for Consumers:
Before
hiring a mover, review the tips available
from the New Jersey Division of Consumer
Affairs at www.NJConsumerAffairs.com/brief/mover.pdf
. They include:
