JEFFREY S. CHIESA ATTORNEY GENERAL OF NEW JERSEY Division of Law 124 Halsey Street - 5th Floor PO. Box 45029 Newark, New Jersey 07101 Attorney for Plaintiffs By: Cathleen O?Donnell Glenn T. Graham Deputy Attorneys General (973) 648-4802 (973) 648-7457 JEFFREY S. CHIESA, Attorney General of the . State of New Jersey, and ERIC T. KANEFSKY, 3 Acting Director of the New Jersey Division of Consumer Affairs, Plaintiffs, V. ALL CARE CHIMNEY MICHAEL LYON, and JANE AND JOHN. DOES 1-10, individually and as owners,l of?cers, directors, shareholders, founders,: managers, agents, servants, employees,: representatives and/or independent contractors of ALL CARE CHIMNEY COPORATION and XYZ CORPORATIONS, 1?10, Defendants. 1'37 . FILED AUG 03 2012 GLENN BERMAN, JSC CHANCERY SUPERIOR COURT OF NEW JERSEY CHAN CERY DIVISION MIDDLESEX COUNTY DOCKET NO. MID-C- 199-1 1 Civil Action FINAL JUDGMENT AND WHEREAS the Attorney General of the State of New Jersey (?Attorney General?) is charged with the responsibility of enforcing the New Jersey Consumer Fraud Act, N.J.S.A. 56:8- 1 e_t the Contractors? Registration Act, N.J.S.A. 56:8?136 e_t seq, the Regulations Governing Contractor Registration, gt (?Contractor Registration Regulations?) and the Regulations Governing Home Improvement Practices, 16.1 Qt s_eg. (?Home Improvement Regulations?); WHEREAS the Acting Director of the New Jersey Division of Consumer Affairs (?Acting Director?) is charged with the responsibility of administering the CFA, Contractors? Registration Act, Contractor Registration Regulations and the Home Improvement Regulations on behalf of the Attorney General; WHEREAS this matter was opened to the Court on September 28, 2011, by the ?ling of a Veri?ed Complaint by way of Order to Show Cause with Temporary Restraints on behalf of the Attorney General and Director (collectively, ?Plaintiffs?)1 pursuant to the provisions of the CFA, N.J.S.A. 56:8-2, 56:8-8, 56:8-11, 56:8-13; and 56:8-19, alleging that All Care Chimney Corporation and Michael Lyon (collectively, ?Defendants?) engaged in conduct in violation of the CFA, the Contractors? Registration Act, the Contractor Registration Regulations, and the Home Improvement Regulations, in connection with their advertisement, offering for sale, sale and performance of home improvement services Services?) to consumers in the State of New Jersey (?State? or ?New Jersey?); WHEREAS Plaintiffs, pursuant to and 56:8?8, have moved for judgment against Defendants that includes a ?nding that Defendants? acts and omissions constitute multiple violations of the CFA, the Contractors? Registration Act, the Contractor Registration Regulations, and/or the Home Improvement Regulations, the issuance of permanent 1 This action was commenced on behalf of former Attorney General Paula T. Dow and former Director Thomas R. Calcagni. Pursuant to 4234?4, the caption has been revised to re?ect the current Attorney General and Acting Director. 2 injunctive relief, an award of consumer restitution, an award of maximum civil penalties and reimbursement of Plaintiffs? attorneys? fees and investigative costs; and WHEREAS the Court having considered the pleadings ?led in this action as well as the following papers submitted in support of this motion: Memorandum of Law, Certi?cation of Glenn T. Graham, dated June 27, 2012; Certi?cation of Barbara Ferris, dated June 27, 2012, with accompanying exhibits; and the following Certi?cations and accompanying exhibits previously submitted to this Court: Certi?cations of Barbara Ferris, dated September 28, 2011, November 1, 2011, November 2, 2011 and January 17, 2012; Certi?cation of Michael Bruch, (undated); Certi?cation of Suzanne Crilley, dated September 20, 2011; Certi?cation of Betty Fields, dated October 27, 2011; Certi?cation of Margo Hodshon, dated September 16, 2011; Certi?cation of David Hunter, dated September 20, 201-1; Certi?cation of David Hvisdock, dated September 19, 2011; Certi?cation of Douglas Lee, dated October 27, 2011; Certi?cation of Janis McCarty, dated October 28, . 2011; Certi?cation of Catherine Mills, dated September 16, 2011; Certi?cation of Jared O?Cone, dated January 13, 2012; Certi?cation of Libera Petrowski, dated January 13, 2012; Certi?cation of Diane Radler, dated January 13, 2012; Certi?cation of Nicholas Rini, dated September 19, 2011; Certi?cation of Steven Schif?nan, dated September 19, 2012; Certi?cation of Robert Seid, dated September 16, of Stephen Seid, dated September 16, 2011; Certi?cation Kara Spressert, dated September 19, 2011; Certi?cation of Dennis, Van Demark, dated October 28, 2011; and Certi?cation of Gayle Wilton, dated January 14, 2011; I THIS COURT NOW FINDS THAJLT: A. The Court has jurisdiction over the subject matter of this action and over the named and served Defendants hereto. B. Based upon all of the evidence submitted by Plaintiffs, Defendants have engaged in conduct which comprises separate violations of the CFA, m. 56:8-1 gt E, I 19 5 separate violations of the Contractors? Registration Act, 56:8-136 gt gay, separate violations of the Contractor Registration Regulations, gt m? and separate violations of the Home Improvement Regulations, 16.1 e_t m; and f! 'o'lations above IW involving senior citizens and/or persons - with a disability pursuant to the CFA, speci?cally, N.J.S.A. 1. ORDERED that the acts and issio of Defendants constitute multiple THEREFORE, IT IS on this 5 day of ft]; 2012, instances of unlawful practices in violation of the CFA, m. 5628-1 e_t seq, the Contractors? Registration Act, 56:8-136 e_t the Contractor Registration Regulations, e_t and the Home Improvement Regulations, e_t gm. 2. IT IS FURTHER ORDERED that Defendants and their owners, of?cers, directors, shareholders, founders, managers, agents, servants, employees, representatives, independent contractors, attorneys, corporations, subsidiaries, af?liates, successors, assigns and all other persons or entities directly under their control or under common control with them and all other persons or entities in active concert or participation with them are permanently enjoined from engaging in, continuing to engage in, or doing any acts or practices in violation of the CFA, m. 56:8-1 gt Contractors? Registration Act, 56:8-136 e_t m, the Contractor Registration Regulations, 1.3245A-17.1 e_t seq, and the Home Irnprovernent Regulations, e_t seq, including, but not limited to, the acts and practices alleged in the Veri?ed Complaint. 3. IT IS FURTHER ORDERED that Defendants are permanently enjoined from . the advertisement, offer for sale, sale and performance .of HIC Services within the State. 4. IT IS. FURTHER ORDERED that Defendants are permanently enjoined from owning and or operating any business or other entity in the State that advertises, offers for sale, sells and/or performs HIC Services Within the State. 5. IT ISFURTII-IER ORDERED that Defendant Lyon is personally liable for. the violations of the CFA, 5628-1 e_t s_eg., the Contractors? Registration Act, my}; 56:8? 136 e_t the Contractor Registration Regulations, m; e_t seg, and the Home Improvement Regulations, e_t committed by All Care Chimney Corporation, including, but not limited to, the acts and practices alleged in the Veri?ed Complaint. 6. IT IS FURTHER ORDERED that Defendant Lyon is permanently enjoined ?o'm owning and/or operating any business or other entity in the State through which merchandise is advertised, offered for sale and/or sold to consumers, unless he posts a bond in favor of Plaintiffs in the amount of Two Hundred Fifty Thousand and 00/100 Dolalrs or ten percent of his prior business year?s gross income, Whichever is . greater. The bond shall be posted to secure any payments to be made by Lyon, including, but not limited to, recovery under the CFA, the Contractors" Registration Act, the Contractor Registration Regulations and/or the Home Improvement Regulations. Lyon shall maintain the bond until such time as he no longer operates such business or entity. 7. IT IS FURTHER ORDERED that theDivision may sell and/or arrange for the sale of Defendants? vehicles previously impounded and that the proceeds of such sale, if any, are to be retained by the Division for purposes of consumer restitution. 5 8. IT IS FURTHER ORDERED that Defendants, jointly and severally, shall pay to the Division consumer restitution in the total amount of 33 6 .1798 ~7l as authorized by The funds paid by Defendants pursuant to this section of the Final Judgment and Order (?Judgment and Order?) shall be used for equitable relief including, but not limited to, consumer redress and any attendant expenses for the administration of any redress fund. If Plaintiffs determine, in their sole discretion, that redress to consumers is wholly or partially impracticable, any funds not so used shall be retained by the Division in lieu of redress. Defendants shall have no right to contest the manner of distribution chosen by Plaintiffs. Plaintiffs in their sole discretion may use a designated agent to administer consumer redress. 9. IT IS FURTHER ORDERED that the funds deposited by Defendants in the - ts wows: 8 5,011) taunted the aerator Receiver?s Trust Account shall be released 1M, at Wm 3w ta 3,306.04; emigratea ni?E?wj ?ins team ?5363?. ?t?ath - mm of Hftr?3?4UManm Wagon! fur?33t908. w. no but ante orHER ORDERED that Defendants, jointly and severally, shall pay to the Division civil penalties in the total amount acCordance with M. 56:8?13 and civil penalties in the total amount of with 11. IT IS FURTHER ORDERED that Defendants, jointly and severally, shall reimburse Plaintiffs for all attorneys? fees incurred in the prosecution of this action, in the total amount of 2,:ng 1 for the use of the State of New Jersey, as authorized by the 56:8-11 and N.J.S.A. 56:8-19. 12. IT IS FURTHER ORDERED that Defendants, jointly and severally, shall reimburse Plaintiffs for their investigative costs and fees, in the total amount of$ H, Mae's [a for the use of the State ofNew Jersey, as authorized by the CFA, MM. 56:8-11 and 5628?19. 6 . . swam A kid want-W! ?9 *Dgf??wej?g am M?l'whm. 1w: vemws mm a 5, WW Stewed ties for mu waste it Assam. *2:an to RN cavalier usnhahm I ym%% 13. IT IS FURTHER ORDERED that nothing contained in this Judgment and Order, including the Court?s determinations herein, shall bind or affect the rights of any persons not a party hereto, or preclude actions against any unnamed parties. ?14. IT IS FURTHER ORDERED that nothing contained in this Judgment and Order shall bind or affect any position which any party may take in future or unrelated actions. 15. IT IS FURTHER ORDERED that this Judgment and Order may be enforced only by Plaintiffs or Defendants or their successors hereto. 16. IT IS FURTHER ORDERED that this Court retains jurisdiction for the purpose of enabling Plaintiffs or Defendants to apply to this Court for any such further orders and directions as may be necessary and appropriate for the enforcement of, or compliance with, this Judgment and Order. A, HON. GLENN BERMAN, THATA COPY OF THIS NDER BE SERVED ON ALL COUNSEL UNREPRESENTED PARTIES WITHIN 7 DAY .