New Jersey,US:The New Jersey Division of Consumer Affairs(DCA)said on Tuesday that it is suing a group of related furniture companies for alleged multiple violations of the state Consumer Fraud Act.
In a civil lawsuit filed in Superior Court in Union County,the DCA alleges the companies failed to deliver ordered items,delivered the wrong or damaged pieces and failed to provide refunds or gave refund cheques which bounced to dozens of customers.
Lev Stanik and Roman Tyger used multiple names like LaFlat,LaFurniture and Design,Tyger Furniture and TG Furniture Group for their companies,and operated from various websites.They also had business offices in Lyndhurst,Fair Lawn,Ridgefield,Rahway and Brooklyn.
"The approximately 39 consumers who have filed complaints to date are collectively owed over US$100,000,"said Acting Director of the DCA,Eric Kanefsky."Through this action,we hope to get this money back and stop these companies from defrauding other consumers,"Mr Kanefsky added.
However in a phone interview,Mr Stanik insisted:"I did not steal any money."
"I made mistakes in my business and I had to file for bankruptcy,"he said."I'm returning my customers the money.I've already returned money to 95 percent of my customers.I am still in the process of returning their money.It will take a little time–six months."Mr Stanik added that his problems began when a furniture wholesaler in China failed to deliver merchandise he had ordered.
"My company is now closed,I'm not in business,"he said."In six months I paid customers back US$60,000.Now I just pay from my own pocket.There is no more business.I'm completely in bankruptcy."
One of the company's websites still appears to be in operation.The home page at www.laflat.com allowed one reporter from the online newspaper,The Record,to create an account and choose furniture to order and then asked for credit card information.It generated an automatic email sent to an email address at The Record verifying that the account had been established and that orders could be placed.
When reached at the contact number provided on the website,Mr Stanik said neither he nor Mr Tyger had anything to do with the company anymore.
The DCA complaint also alleges that the companies sold merchandise in their showrooms without a label to display the selling price.It adds that the defendants violated state laws which require them to provide buyers with delivery dates,tell them about their right to cancel orders and receive refunds,and to replace damaged items or merchandise incongruent with what customers had ordered.
