Dow suing work-at-home company

Keith Loria Mar. 2, 2011, 2:00am


NEWARK, N.J. (Legal Newsline) - New Jersey Attorney General Paula Dow announced on Wednesday that she has filed a lawsuit against a work-at-home company and its owner, alleging that they defrauded state consumers.

The Mendham, N.J.-based Capital Enterprises and owner David S. Brookman allegedly violated New Jersey's Consumer Fraud Act and state advertising regulations.

Capital Enterprises does business as Maxwell Scott Enterprises, Maxwell Scott, David Gates Enterprises and Warner Daniel. David Gates is an alias used by Brookman, Dow says.

The suit alleges that the defendants claimed people could earn income by stuffing envelopes or assembling booklets after they paid a registration fee but used bait-and-switch tactics to defraud people.

Although the company advertised that workers could earn "up to $5,000 or more weekly" by stuffing envelopes and mailing letters, and "$2,500 or more weekly" by assembling booklets, the defendants allegedly changed the conditions of the work-at-home programs to require other undisclosed payments and fees.

The lawsuit also alleges that the defendants used deception, false pretenses, false promises and misrepresentations by leaving out material facts when soliciting consumers.

"Roadside utility poles across New Jersey are covered with offers to earn money while working at home," Dow said. "These offers sound too good to be true.... they often are scams that only enrich the con artists who perpetrate them."

Dow is seeking restitution for consumers and wants civil penalties assessed against the defendants. She is also asking that the defendants pay all costs associated with the litigation.

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