New Jersey Division of Consumer Affairs Reaches $300,000 Settlement with Operators of Multiple North Jersey Furniture Businesses Charged with Violations of the Consumer Fraud Act
NEWARK - The Office of the Attorney General and the New Jersey Division of Consumer Affairs have reached a $300,000 settlement with two individuals and the furniture businesses they operated. The Division filed legal actions against these individuals and companies for alleged consumer fraud violations, including failing to deliver merchandise paid for by consumers and not providing refunds.
In May 2012, the State filed suit in State Superior Court in Union County against Lev Stanik, of Rahway, and Roman Tyger, of Brooklyn, New York, and the following businesses they operated: LaFlat, Inc.; LaFlat Group, Inc.; LaFurniture & Design Ltd.; LaFurniture Corp.; LaFurniture Group, Inc.; and Tyger Furniture, a/k/a "TG Furniture Group." Stanik and Tyger also were involved in furniture sales through multiple internet sites. Based on consumer complaints received by the Division of Consumer Affairs, the lawsuit against Stanik, Tyger, and their businesses alleged that customers of these businesses were unable to obtain refunds, and in some cases, were not told the furniture they ordered had actually been discontinued. In other instances, consumers demanding refunds were provided bad checks due to insufficient funds, and as a result could not get money back that was paid upfront for furniture.
"This settlement holds the defendants accountable for their alleged violations and requires them to pay a substantial sum, which will be used toward restitution for affected customers," Acting Attorney General John J. Hoffman said. "Our consumer protections laws exist to protect against the unscrupulous practices alleged here. These businesses are required to follow our consumer protection laws going forward and we fully expect that they will do so."
Of the total settlement, $240,000 is suspended, but will become due and payable if any terms of the consent judgment settling this matter are violated in any way. The balance will be paid by Stanik, Tyger, and their businesses and will be distributed to alleged victims as restitution.
"Furniture and home furnishings ranked as one of the Division's ten largest complaint category last year. Consumers are entitled to receive the exact furnishings that they are paying for. Anything less is a violation of our state laws and we will take action, as we did in this matter, to ensure consumers are protected," said Steve Lee, Acting Director of the Division of Consumer Affairs.
Investigator Raquel Davis-Williams in the Division's Office of Consumer Protection conducted the investigation.
Deputy Attorney General Alina Wells in the Division of Law's Consumer Fraud Prosecution Section represented the Division of Consumer Affairs in this matter.
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an
online complaint with the State Division of Consumer Affairs by visiting its
website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504- 6200.
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