FOR IMMEDIATE RELEASE:
March 31, 2003

FOR FURTHER INFORMATION CONTACT:
Genene Morris (973)504-6327

NEWARK — The owner of the Diamond Beach Resort hotel has settled a lawsuit against him by agreeing to refrain from falsely advertising the quality of the hotel's rooms and facilities and pay more than $25,000 in consumer restitution, Acting Attorney General Peter C. Harvey and Consumer Affairs Director Reni Erdos announced today.

The agreement, finalized this month, settles a lawsuit filed by the State in December naming John Patitucci, Diamond Beach Resort and the Grand Hotel of Wildwood Crest, Inc., alleging the defendants misled and deceived consumers through advertisements that falsely depicted the hotel's rooms and facilities as clean and luxurious, even though it was in serious disrepair.

Under the terms of the agreement, Patitucci will also pay $135,000 in penalties and costs to the State. Furthermore, in addition to paying restitution to consumers who have filed complaints with Consumer Affairs to date, Patitucci has agreed to attempt to resolve all complaints filed against the hotel with Consumer Affairs within the next six months regarding its 2002 season or enter into binding arbitration with Consumer Affairs' Alternative Dispute Resolution Unit.

Dozens of consumers complained to Consumer Affairs that they paid hundreds of dollars to stay at the hotel after seeing advertisements for the hotel. However, when they arrived, consumers complained that the hotel was filthy, foul-smelling and lacked air-conditioning in certain areas. The hotel also had been previously fined more than $16,000 for fire code violations.

"We are pleased that we were able to forge an agreement that is in the best interest of the public," Acting Attorney General Harvey said. "By securing this agreement, we intend to send the message that we are serious about fighting fraud and ensuring consumers are not taken advantage of."

"I want to personally thank Michael Brogan of the Cape May County Consumer Affairs Office for partnering with Division's Office of Consumer Protection in this matter," Director Erdos said. "We were successful in this case, in part, because of the assistance and expertise of his office."

Deputy Attorney General Pamela A. Dougherty of the Division of Law handled this case for the State. .