NEWARK, N.J. (Legal Newsline) -- New Jersey Acting Attorney General John Hoffman and the Division of Consumer Affairs announced Monday a $130,000 settlement with a work-at-home company and its owner for allegedly operating a scam.
Capital Enterprises Inc. and David Brookman, the company's owner, allegedly lured consumers through ads that promised earnings of $5,000 or more per week by mailing the company's special letters from home.
Out of about 13,000 customers, only 45 allegedly ever made more than $100 from the envelope stuffing program.
Consumers who signed up for the work-at-home program allegedly had to pay a registration fee and make further payments to stay in the program.
"This settlement should serve as a clear cautionary note to consumers," Hoffman said. "When an offer seems too good to be true -- especially if it's a work-at-home ad offering thousands of dollars in return for little work -- it may very well be a scam, designed to enrich a con artist while wasting your money and time."
Under the terms of the settlement, Brookman and Capital Enterprises will pay $130,000, which includes $66,712 in civil penalties and $63,288 to reimburse the state for attorney and court costs.
Brookman is permanently enjoined from selling or advertising work-from-home or direct mail or similar programs in the state. He also is banned from forming any business in New Jersey or advertising the sale of any merchandise without posting a $250,000 bond and providing the state with information about the business for the next 10 years.