These are the stories that give Contractors a bad name!
New Jersey Division of Consumer Affairs Obtains $7.7 Million Judgment Against “Roofing Police” Contractor Accused of Performing Shoddy Work and Deceiving Consumers
NEWARK -
Attorney General Jeffrey S. Chiesa and the New Jersey Division of
Consumer Affairs today announced a $7.7 million judgment against John
Kot, of Garwood, and his multiple home improvement companies –
including Roofing Police, Inc., which has used distinctive vehicles
painted to resemble police squad cars. Under the terms of the judgment,
Kot and the companies are permanently barred from performing home
improvement work, and Kot is permanently barred from managing or owning
any business in New Jersey.
“These defendants allegedly left consumers with
shoddy work, broken promises, and warranties that were ignored – often
while using business names or language on their websites that implied
they had some connection to government or police work,” Attorney
General Jeffrey S. Chiesa said. “We have held them accountable by
obtaining a judgment that provides for consumer restitution and civil
penalties, and which prohibits them from performing home improvement
work, or even owning or managing any business in New Jersey.”
Under the Final Judgment by Default and Order,
entered by Bergen County Superior Court Judge Robert P. Contillo,
defendant Kot, 41, and the various home improvement companies he
operated, were found to have engaged in conduct which comprises 1,542
violations of the State Consumer Fraud Act, Contractors' Registration
Act, Contractor Registration Regulations, Home Improvement Regulations,
and Advertising Regulations.
Kot and his companies are collectively required to
pay a total of $7.7 million – including $150,000 in consumer
restitution, $7.5 million in civil penalties, $38,000 for the State’s
attorney’s fees, and $30,000 for the State’s investigative costs. Kot
and his companies are permanently enjoined from performing home
improvements in the State. Kot also is permanently enjoined from
managing or owning any business in the State; and the corporate charters
of the defendant corporations and companies are annulled.
The Final Judgment by Default and Order is against
all defendants in the State’s complaint, except for Gabriel R. DaSilva,
Jr., who settled with the State via a Final Consent Judgment. A
$30,000 civil penalty is assessed against DaSilva but will remain
suspended so long as he complies with the terms of the settlement as
well as all applicable laws. DaSilva is not barred from performing home
improvement work, so long as he first obtains State registration as a
home improvement contractor.
“Our investigation and the Court’s findings make it
abundantly clear that consumers must be cautious when hiring a home
improvement contractor,” Acting Director Eric T. Kanefsky said.
“Through this default judgment, we have ensured that one of the worst
can no longer defraud New Jersey’s consumers.”
The State’s complaint, filed on behalf of the
Division of Consumer Affairs by the Division of Law, alleged that the
defendants performed substandard work; refused to repair their
substandard work despite promises and/or warranties; refused to return
consumer deposits for work that was never performed; failed to honor
guarantees or warranties provided in their contracts; and started work
without the necessary state or local permits. The companies also
allegedly advertised through names and statements that wrongfully
implied they were affiliated with government or were quasi-police
agencies or police-affiliated businesses.
The State alleged that the defendants perpetuated
their deceptive business practices through the interchangeable use of
multiple business entities, names, addresses and phone numbers.
Defendants advertised or contracted with consumers using the following
corporations, limited liability companies, trade names and/or
unregistered business names: A-1 American Construction, Inc.; A 1
American Chimney Limited Liability Company; Brick City Chimney Service,
L.L.C.; Brick City Chimney Service and Cleaning, Inc.; Roofing Police,
Inc.; Roofing Squad; Chimney Squad; Brick City; Brick City Chimney
& Roofing Services; A-1 American Masonry; A-1 American Masonry
Services; A-1 American Chimney Service; A-1 American Contracting; A-1
American Roofing; A-1 American Gutters; A-1 American Siding; A-1
Affordable Construction; A Above American; A Above Brick City; and
Diamond Roofing. Defendants used common addresses in Fair Lawn,
Hackensack, Maywood and Garwood. The State’s Complaint further
alleged that the defendants misrepresented their business locations and,
in Kot’s case, used as assumed name as an alias in the course of
conducting business. The Division of Consumer Affairs received
complaints about the defendants from a total of 81 consumers.
Deputy Attorney General Nicholas Kant, in the
Division of Law's Consumer Fraud Prosecution Section, represented the
State in this action.
Advice for New Jersey Consumers, When Hiring a Home Improvement Contractor:
Before hiring a home improvement contractor, New Jersey consumers are urged to:
- Obtain the contractor's State registration number, which always begins "13VH."
- Contact the Division of Consumer Affairs to learn whether the contractor's registration is still valid. Call the Division’s License Verification Line at 973-273-8090, or check the Division's database of all 43,000 registered home improvement contractors.
- Demand a copy of the contractor's commercial general liability insurance policy.
- Contact the insurer to learn whether the policy is still valid.
- Run Internet searches to see if there are online complaints against the contractor.
Additional advice can be found in the Consumer Brief, "Hiring Home Improvement Contractors, (Spanish).
Advice for Home Improvement Contractors:
To advertise and perform home improvement work legally in New Jersey,
contractors must register with the New Jersey Division of Consumer
Affairs. Registration materials are available here.
Consumers who believe they have been cheated or
scammed by a business, or suspect any other form of consumer abuse, can
file a complaint with the New Jersey Division of Consumer Affairs by
visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.
Follow the Division of Consumer Affairs on Facebook, and check our online calendar of upcoming Consumer Outreach events.
Thank you for reading!
No comments:
Post a Comment