For Immediate Release:

June 21, 2001

FOR FURTHER INFORMATION CONTACT:

Genene W. Morris

973-504-6327

NEWARK -New Jersey Division of Consumer Affairs Director Mark S. Herr has temporarily banned two Ocean County men from working as hearing aid dispensers in New Jersey after they failed to appear at a hearing to answer allegations that they defrauded Ocean County seniors out of tens of thousands of dollars, Attorney General John J. Farmer, Jr., and Consumer Affairs Deputy Director Edith Brower said today.

Herr's ruling, issued Tuesday, comes less than a month after the State filed a 13-count complaint against John A. Goble, a licensed hearing aid dispenser and Jess J. Mendenhall, a former hearing aid dispensing permit holder who worked under Goble's supervision. Both defendants worked at Crestwood Hearing Aid Center, 88 Schoolhouse Road, Suite #1, Whiting. The States complaint was filed on May 21.

Herr, who serves as hearing officer over the proceedings against Goble and Mendenhall, is expected to schedule a plenary hearing at a later date. Herr's order temporarily restrains Goble from practicing and Mendenhall from seeking to become licensed as a hearing aid dispenser in the State while the proceedings against them continue.

The State's suit alleges that Goble and Mendenhall lured Ocean County senior citizens ranging in age from 63 to 89 into visiting Crestwood with offers for "free" hearing tests. While there, the complaint alleges, the pair used deceptive and/or strong-arm tactics to get their elderly victims to buy over-priced hearing aids totaling $54,338.

"These 'free' offers turned out to be an expensive proposition for each of the senior citizens who visited the center, Attorney General Farmer said. "The consumers paid between $1,300 and $7,000 for hearing aids that our complaint alleges were not worth anywhere near their asking price."

In fact, in one case, an 84-year-old Ocean County woman paid $7,000 for two Starkey Sequel TQ hearing aids from the defendants. A hearing aid expert hired by the State has certified that those hearing aids typically go for $1,895 to $2,495, Farmer said.

"The State's suit alleges that the defendants' scheme targeted elderly victims to bilk them out of thousands of dollars," Brower said. "We take seriously any attempt by anyone who does business in New Jersey to defraud consumers, especially elderly consumers."

In at least two instances, the complaint alleges, the defendants told the senior citizens who had gone to the center for hearing tests that if they did not buy the hearing aids they would tell the local police that they were hearing impaired and should not be driving.

In other instances, the complaint alleges, the defendants refused to cancel contracts after the consumers balked at the price of the hearing aids and even went as far as driving some of their victims to the bank so they could get paid that day.

For example, the complaint alleges, Goble walked up to a 74-year-old Ocean County man and told him that he looked like a person who did not hear well. Goble then allegedly offered the consumer, John M., a free hearing test at Crestwood.

During the test, Goble allegedly told John M. that he had severe hearing loss and that he would inform the local police that he should not be allowed to drive if he did not purchase a hearing aid from Crestwood. The complaint further alleges that Goble drove John M. to the bank that same day so that John M. could withdraw $1,400 to pay for two Magnatone Full Shell hearing aids.

Another woman complained that she gave Goble a signed, blank check to purchase two Starkey SASx hearing aids believing the cost was $520. Goble allegedly made the check out for $5,200. When the 89-year-old woman balked, explaining that she did not have enough money to cover the check, the complaint alleges, Goble insisted that she pay the full amount in cash.

The next day, the complaint alleges, the woman cashed in a Certificate of Deposit to pay for the hearing aids.

The State's suit seeks to have Goble's license to practice hearing aid dispensing in New Jersey revoked. It also seeks to permanently ban Mendenhall from seeking to become a licensed hearing aid dispenser in New Jersey. The suit further seeks to have Goble and Mendenhall pay enhanced civil penalties of $30,000 for targeting and defrauding elderly and disabled consumers and to pay restitution to the affected consumers.

Deputy Attorney General Doreen A. Hafner of the Division of Law is handling this matter for the State.