State Intervenes to Prevent Con-Artist from Using Bankruptcy to Avoid Paying Debt to Consumers

The Attorney General’s Office and the Division of Consumer Affairs have filed a complaint in U.S. Bankruptcy Court to preserve claims for money owed to New Jersey consumers and the State by an Essex County businessman accused of fraud, State Attorney General Peter C. Harvey and Consumer Affairs Director Kimberly Ricketts announced.

"Con artists who swindle consumers out of their hard-earned cash must be held accountable for their actions," said Acting Governor Richard J. Codey. "Filing bankruptcy to avoid paying your debt is not an option in New Jersey."

A complaint was filed against Daniel T. Salomon in Essex County Superior Court on April 6, 2004 alleging that he violated the Consumer Fraud Act and the Used Car Lemon Law in connection with his used car businesses, TradeLease and Anatres. Specifically, the suit alleges that Salomon obtained money by false pretenses and false representations by practices including; collecting fees that were not owed, converting sales into leases without permission, withholding titles, failing to honor the terms of warranties, failing to provide necessary refunds and failing to forward consumer payments to leasing companies. The State has asked the Superior Court to assess against Salomon the maximum civil penalties allowed under the Consumer Fraud Act.

The bankruptcy complaint was filed on September 30, 2005 and asks the court to find that the consumer restitution and civil penalties owed by Salomon are non-dischargeable. The court has not yet announced a decision on Salomon’s request for bankruptcy protection.

"We are putting con artists on notice," Director Ricketts said. "You cannot cheat consumers and get away with it by filing for bankruptcy. We will use the full extent of the law to make sure you pay what you owe."

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