c~;:.~:, ~t~.r~ ~?.~',n ' ~ V CHRISTOPHER S. PORRINO ATTORNEY GENERAL OF NEW JERSEY Division of Law 124 Halsey Street - 5`h Floor P.O. Box 45029 Newazk, New Jersey 07101 Attorney for the Plaintiffs c~ -~, 0 N By: ~~ ~~ ~ ~i ~~ .. ..i: n. ~ ; ~ ~ ,~^, i 11 'j:t. ` '' Labinot A. Berlajolli (034612011) Deputy Attorney General (973)648-3469 SUPERIOR COURT ~F NEW JERSEY CHANCERY DIVISION, MERCER COUNTY DOCKET NO. MER-C-23-16 0 z u~ ~. C~ ~...: 'J224 005-1 6 CHRISTOPHER S. PORRINO, Attorney General of the State of New Jersey, STEVE C. LEE, Director of the New Jersey Division of Consumer Affairs, O U Civil Action Plaintiffs, v. C.L.J. HOME IMPROVEMENTS INC.; BASEMENTS 4 LESS INC. alk/a NJ BASEMENT CONTRACTORS; CHOICE HOME IMPROVEMENTS LLC; CHARLES JOHNSTON,JR. a/k/a CHARLES L. JOHNSTON alk/a CHARLES J~HNSTON, JR., individually and as owner, officer, director, manager, employee, representative and/or agent of C.L.J. HOME IMPROVEMENTS INC., BASEMENTS 4 LESS 1NC. alk/a NJ BASEMENT CONTRACTORS, and CHOICE HOME IMPROVEMENTS LLC; JANE .AND JOHN DOES 1-20, individually and as owners, officers, directors, shareholders, founders, members, managers, employees, servants, agents, representatives and/or independent HOME of contractors C.L.J. IMPROVEMENTS INC., BASEMENTS 4 LESS 1NC. alkla NJ BASEMENT CONTRACTORS, and/or CHOICE HOME IMPROVEMENTS LLC; and XYZ CORPORATIONS 1-20, Defendants. FINAL ORDER ON DEFAULT AS TO DEFENDANTS C.L.J. HOME IMPROVEMENTS INC, BASEMENTS 4 LESS INC, CHOICE HOME IMPROVEMENTS LLC AND CHARLES L.JOHNSTON S MATTER was opened to the Court on the application of plaintiffs,Christopher S. Porrino, Attorney General of the State of New Jersey {"Attorney General"}, and Steve C. Lee, Director of the New Jersey Division of Consumer Affairs {"Director") (collectively, "Pla.intiffs")1, (by Labinot A. Berlajolli, Deputy Attorney General, appearing}, by way of a Complaint filed on May 3, 2016, alleging that C.L.J. Home Improvements, Inc. ("C.L.J. Home Improvements"); Basements 4 Less Inc., a/k/a NJ Basement Contractors,("Basements 4 Less"); Choice Home Improvements, LLC, ("Choice Home Improvements") as well as Charles L. Johnston, Jr., a/k/a Charles L. Johnston, a/k/a Charles Johnston, Jr., individually ("Johnston") (collectively, "Defendants"), have, directly or thxough others, engaged in conduct in violation of the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1 et sec . ("CFA"), the Contractors' w,_, the Regulations Governing Contractor Registration, Registration Act, N.J.S.A. 56:8-136 et se w,_ ("Contractor Registration Regulation"), Regulations Governing N.J.A.C. 13:45A-17.1 et se Home Improvement .Practices, N.J.A.C. 13:45A-16.1 et se ("Home Improvement Regulations"). C.L.J. Home Improvements, Basements 4 Less., Choice Home Improvements and Johnston failed to file Answers. On June 28, 2016, the Court entered default against C.L.J. Home Improvements, Basements 4 Less, Choice Home Improvements and Johnston, pursuant to R. 4:43-1. Defendants have not moved to vacate the defaults entered against them. THIS COURT NOW FINDS THAT: A. The Court has jurisdiction over the subject matter of this action and over the named Defendants. 1 This action was commenced on behalf of Robert Lougy, former Acting Attorney General. In accordance with R. 4:34-4, the caption has been revised to reflect the current Attorney General. 2 used upon the evidence submitted by Plaintiffs, including the Certification of Investigaa Creggett with accompanying exhibits-, and the Certification of Deputy Attorney General Labinot A. Berlajolli with accompanying e~iibits, the Defaulting Defendants have engaged in conduct which comprises one thousand forty-six (1046) violations of the CFA, the Contractors' Registration Act, the Contractor Registration Regulations, and the Home Improvement Regulations, with the following breakdown: (a) Unconscionable Commercial Practices (N.J.S.A. 56:8-2) —four hundred thirty-six (436) violations total (C.L.J. Home Improvements, forty (40), Basements 4 Less, three hundred eighty-four (384), and Choice Home Improvements, twelve (12); (b) Misrepresentations (N.J.S.A. 56:8-2) —eighty-nine (89) violations (C.L.J. Home Improvements, seven (7), Basements 4 Less, eighty (80), and Choice Home Improvements, two (2); (c) Knowing Omissions of Material Facts (N 7'S.A• 56:8-2) —one hundred two (102) violations (C.L.J. Home Improvements, eleven (11), Basements 4 Less, eighty-nine (89), and Choice Home Improvements, two (2); (d) Contractors' Registration tact (N.J.S.A. 56:8-136 et se .) —one hundred twenty-six (126) violations (C.L.J. Home Improvements, fourteen (14), Basements 4 Less, one hundred two (110), and Choice Home Improvements, two (2); (e) Contractor Registration Regulations (N.J.A.C. 13:45A-17.2 et sec .) —sixty-two (62) violations {C.L.J. Home Improvements, seven (7), Basements 4 Less, fifty-four (54), and Choice Home Improvements, one (1); and (fl Home Improvement Regulations (N.J.A.C. 13:45A-16.1 et sec .) -- two hundred thirtyone (231) violations (C.L.J. Home Improvements, twenty-five (25), Basements 4 Less, two hundred one (201), and Choice Home Improvements, five (5). ~~ ~ . 3 ~` THEREFORE,IT IS on this 1. ~~ day of OCTOBER,2016: ORDERED that the acts and omissions of Defendants constitute unconscionable commercial practices deception, false promises, misrepresentations and /or knowing omissions in violation of the CFA, N.J.S.A. 56:8-1 et sec ., as well as violations of.the Contractors' Registration Act, N.J.S.A. 56:8-136 et seg^, the Contractor Registration Regulations, N.J.A.C. 13:45A-17.1 et se ., and the Home Improvement Regulations, N.J.A.C. 13:4SA-16.1 et sec. 2. YT IS FURTHER ORDERED that the Defendants and their owners, officers, directors, shareholders, founders, members, managers, agents, servants, employees, representatives, independent contractors and all other persons or entities directly undex their control, are permanently enjoined from engaging in, continuing to engage in, or doing any acts oz practices in violation of the CFA, N.J.S.A. 56:8-1 et sec ., as well as in violation of the ___~c ., the Contractor Registration Regulations, Contractors' Registration Act, N.J,S.A. 56;8-136 et se N.J.A.C. 13:45A-17.1 et seg_, and the Home Improvement Regulations, N.J.A.C. 13;45A-16.1 et .5..~~ 3. IT I5 FURTHER ORDERED that, pursuant to the CFA, N.J.S.A. 56:8-8, the Defendants are permanently enjoined from owning, operating or otherwise managing any business or other entity in the State, whether registered with the Division or not, that advertises, offers for sale, sells and/or performs HIC Services within the State; 4. IT IS FURTHER ORDERED that, pursuant to the CFA, N.J.S.A. 56:8-8,~ the Defendants are permanently enjoined from the advertisement, ~ offer for sale, sale and performance of HIC Services within the State; D ''~ ~;' ~a IT IS FURTHER ORDERED that the corporate charters of C.L.J. Home Improvements and Basements ~4 Less in the State of New Jersey are permanently vacated ancUor annulled, and the corporate charter of Choice Home Improvements is cancelled as authorized by the CFA, N.J.S.A. 56:8-8. 6. IT IS FURTHER ORDERED that, pursuant to the CFA, N.J.S.A. 56:8-8 the Defendants shall pay to Plaintiffs consumer restitution in the total amount of $449,329.69 as follows: C.L.J. Home Improvements - $37,302.50; Basements 4 Less - $407,102.19; and Choice Home Improvements- $4,925.00. The funds paid by Defendants pursuant to this section of the Final Judgment by Default 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 of Consumer Affairs 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. 7. YT IS FURTHER ORDERED that, pursuant to the CFA, N.J.S.A. 56:8-13, De- fendants, shall pay to the Division civil penalties in the total amount of $10,460,000.00 as follows: $1,040,000.00 as to C.L.J Home Improvements; $9,180,000.00 as to basements 4 Less; and $240,000.000 as to Choice Home Improvements, and $10,460,000.00 as to Johnston. 8. IT YS FURTHER ORDERED that, pwrsuant to the CFA, N.J~S.A. 56:8-19, Defaulting Defendants, jointly and severally, shall reimbwrse Plaintiffs for all attorneys' fees incurred in the prosecution ofthis action, in the total amount of $37,868.50 9. IT IS FURTHER ORDERED that, ptusuant to the. CFA, N.J.S.A. 56:8-11, 5 •, , ~ it4 ~Y4 :!,( tive ~~lau~«~~~ Defendants, jointly and severally, shall reimburse Plaintiffs for their investiga costs, in the total amount of $23,223.80. 10. YT IS FURTHER ORDERED that nothing contained in this Judgment and persons Order, including the Court's determinations herein, sha11 bind or affect the rights of any not a party hereto, or preclude actions against any unnamed parties. 11. 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. 12. YT IS FURTHER ORDERED that this Judgment and Order may be enforced only by Plaintiffs or Defendants oz their successors hereto. 13. YT YS FURTHER ORDERED that this Court retains jurisdiction fox the purpose and of enabling Plaintiffs or Defendants to apply to this Court for any such further orders with, this directions as may be necessary and appropriate fox the enforcement of, or compliance Judgment and Order. N(~N PATTT. TNNR~_ P_J_C:~T. . ~ \ -- In ac ordance with the required statement of R. 1:6-2(a), this motion was unopposed. i D opposed