ED Magedson – Founder
Preston Lord Enterprises5 Lyons Mall Suite 777 Basking Ridge, New Jersey USA
Preston Lord Enterprises Capital Enterprises, Inc.David Gates Inc.Gordon James EnterprisesMaxwell Scott EnterprisesPresto Home business; Work from home; Stuff and Mail Letters; Easy Job; Basking Ridge New Jersey
Date of Action: 7/25/2011
March 2, 2011 NEWARK - The Office of the Attorney General and the Division of Consumer Affairs have filed suit against a Mendham-based work-at-home company and its principal, alleging that they defrauded consumers through offers to earn income by stuffing envelopes or assembling booklets.
The state's lawsuit is part of "Operation Empty Promises," a nationwide crackdown against work-at-home scams announced today. Operation Empty Promises is a multi-agency law enforcement initiative which includes ten FTC actions, forty-eight criminal actions by the Department of Justice (many of which involved the assistance of the U.S. Postal Inspection Service), seven additional civil actions by the Postal Inspection Service, and twenty-six actions by state law enforcement agencies.
The state's five-count Complaint, filed in State Superior Court in Essex County, alleges that David S. Brookman, 40, and his company, Capital Enterprises, Inc., violated the state Consumer Fraud Act and Advertising Regulations through bait-and-switch tactics in advertisements that stated consumers 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 state alleges that after consumers paid registration fees to Brookman and Capital Enterprises, defendants then changed the terms and conditions of their work-at-home programs to require additional undisclosed payments and fees. Capital Enterprises does business as Maxwell Scott Enterprises, Maxwell Scott, David Gates Enterprises, and Warner Daniel. The state's Complaint alleges that David Gates is an alias used by Brookman. The state is seeking restitution for consumers, along with imposition of civil penalties and reimbursement of attorneys' fees and costs and defendants' compliance with the state's consumer protection laws and regulations.
The lawsuit, which is being transferred to State Superior Court in Morris County, alleges that the defendants engaged in unconscionable commercial practices and used deception, false pretenses, false promises and misrepresentations to defraud consumers. The defendants allegedly also knowingly omitted material facts when soliciting consumers and engaged in bait-and-switch tactics. For example, the defendants allegedly failed to disclose to consumers prior to their payment of the registration fee for the booklet assembly work-at-home program that the stated income potential for assembling booklets only applied if the consumer, at his or her own expense, advertised and marketed the very booklets they were to assemble. Consumers can file complaints with the Division of Consumer Affairs by using the forms available at www.njconsumeraffairs.gov or by calling 1-800-242-5846 (toll-free within N.J.) or 973-504-6200.
Work-At-Home CompaniesBusiness Opportunity Companies
Preston Lord Enterprises is an alternate name registered under Capital Enterprises, Inc. The BBB of New Jersey has received over 7,000 inquiries on Preston Lord Enterprises since October 2012.
Starting December 2012 the BBB received several calls alleging non delivery of materials after the initial payments were sent to Preston Lord Enterprises. The BBB asked the consumers to provide a written copy of their dispute so we can forward it to the company for resolution.
Preston Lord Enterprises offers work at home. According to information in BBB files, there is a one time fee of $199 or $299 for a start-up package depending on the material choice. The consumers allege that the amount is to be refunded after the 9th paycheck.
Preston Lord Enterprises responded to complaints filed with the BBB stating that the materials were sent to the consumers. Those complaints were closed as resolved. Additional complaints allege that after the initial package is received a new letter is disclosed that one has to continue paying for more leads at half of the initial start-up fee. The company responded by referring to the terms set out in the company letters and advises customers to read carefully what is provided.
As of January 9, 2013 the BBB cannot contact Preston Lord Enterprises by phone. The recording informs the callers that due a high volume of calls the company is offering phone service only to paid customers. The BBB advises consumers seeking any work at home jobs to ask the program sponsor to list every step of the job and to ask if the pay is based on client response (commission). Additional information about the expenses incurred, including supplies, additional fees should also obtained.
This report was posted on Ripoff Report on 09/03/2013 12:11 PM and is a permanent record located here: http://www.ripoffreport.com/r/Preston-Lord-Enterprises/Basking-Ridge-New-Jersey-07920/Preston-Lord-Enterprises-Capital-Enterprises-IncDavid-Gates-IncGordon-James-Enterprise-1081320. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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