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NEWARK
– The Attorney General’s Office
and Division of Consumer Affairs have filed
suit against Phoenix Executive Group (PEG),
a career consulting firm, alleging that
the company charged clients thousands of
dollars in fees for services it failed to
provide. The suit also alleges that PEG
misrepresented its ability to place clients
into high-paying jobs.
PEG
is a registered “career consulting
organization” with offices in Iselin,
Princeton and Parsippany. The company solicited
clients through advertisements, job fairs
and by contacting people who had posted
their resumes online. Among other things,
PEG allegedly misrepresented that it had
an extensive exclusive network of contacts
through which clients would obtain high-paying
executive level jobs.
Before
the suit was filed in Superior Court in
Middlesex County, Consumer Affairs identified
28 PEG clients as victims of the company’s
alleged fraudulent business practices. The
State is seeking restitution for victims,
assessment of civil penalties and reimbursement
of its costs and fees.
“These
clients paid PEG thousands of dollars with
the expectation that they would get a high-paying
job. Instead, all they got was a snow job,”
Consumer Affairs Director Kimberly Ricketts
said. “What they got in many cases
was generic company contact information
with incorrect addresses and prepared resumes
with spelling and grammar mistakes.”
The
State’s complaint alleges that PEG’s
conduct included:
- Misrepresenting
that its network of contacts provides
it with access to a “hidden”
job market not available through other
sources;
- Falsely
promising or guaranteeing the provision
of temporary employment until permanent
employment is obtained;
-
Falsely promising or guaranteeing job
offers and/or permanent employment within
a specific time frame;
- Falsely
promising or guaranteeing a minimum
salary and/or hiring or sign-on bonus;
- Requiring
clients to pay thousands of dollars
up front as a “retainer”
before any services and/or products
are provided; and
- Failing
to provide refunds when contracted services
are not provided and failing to inform
clients of any refund policy.
Deputy
Attorney General Cathleen O’Donnell
is representing the State in this matter.
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