BINGHAMTON, N.Y. (Legal Newsline) — New York Attorney General Eric Schneiderman has filed a lawsuit against Henry Dean and his company, FLGH LLC, seeking a permanent injunction barring them from the vacation rental home business.
According to the March 16 allegations, Dean and his company purchased a property in November 2013 seeking to renovate it and turn it into a large vacation rental property. Dean advertised the property, according to Schneiderman, on various websites, including VRBO.com. He allegedly made multiple claims about the property in the advertisements that turned out to be false, such as it having three hot tubs and a fire pit, according to Schneiderman's office.
Consumers would pay deposits to secure a booking at the property, but once they learned the actual condition of the property, they would reportedly try to cancel. The state claims that Dean would tell consumers it would take some time to refund the deposits, as he had put the money in escrow. Dean, however, allegedly had already spent the money and was seeking refunds from new consumers to pay back previous consumers.
“A vacation is a luxury that hardworking New Yorkers often save for months or years to enjoy,” Schneiderman said. “It’s just cruel to deceive and defraud those who are trying to get away on vacation or plan a special event with loved ones. I will keep fighting to root out and prosecute unscrupulous business owners.”
The state seeks $102,694.88 in restitution for consumers and $85,000 in civil penalties and costs.