Indicted Brick Contractor Took $750K In Funds Through Sandy Fraud: State AG

TRENTON, NJ — A contractor based in Brick Township is accused of taking more than $750,000 in federal relief funds from 14 homeowners whose homes were damaged or destroyed during Superstorm Sandy and then not performing the work, according to a complaint filed by state Attorney General Christopher S. Porrino and the Division of Consumer Affairs.

Lawson Renovations, LLC, which does business as J and N Construction and Roofing, and a variety of similar names and is owned and operated by Jamie Lynn Lawson, violated the Contractors’ Registration Act, the contractor registration regulations, the home elevation regulations, the New Jersey Consumer Fraud Act, the regulations governing home improvement practices and the regulations governing general advertising, according to the complaint.

J & N allegedly took money from consumers to renovate, rebuild and/or elevate Sandy-damaged homes and then failed to begin work, failed to maintain the required commercial general liability insurance coverage while working on consumers’ homes, and/or abandoned unfinished projects without returning for weeks, months or at all, according to the complaint, which was filed in Superior Court in Ocean County.

Lawson was indicted on similar charges by an Ocean County grand jury in December.

The complaint alleges that J & N was paid more than $1 million in Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) funds for home elevation and improvement projects for 13 homeowners. Two of those homeowners also paid J & N a total of more than $82,000 of their own money for the projects, according to the complaint. The work on projects was either not performed at all or only partially completed, the complaint said. In addition, J & N was paid $38,500 with Low-to-Moderate Income (LMI) Program funds for another home elevation and improvement project that was not performed at all.

Both RREM and LMI are administered by the New Jersey Department of Community Affairs, to pay for construction work on Sandy-damaged homes. The RREM Program is the state’s largest rebuilding initiative.

“For some New Jersey residents, the devastation suffered during Superstorm Sandy is not over. We will not tolerate unscrupulous contractors who compound that suffering through fraud,” said Steve Lee, director of the Division of Consumer Affairs.

The complaint also alleges that:

• J & N failed to advertise its services properly on its website by not including its state-issued home improvement contractor registration number, its home elevation contractor registration and new home builders’ registration number.
• J & N’s website claimed the company had “an A+ rating with the Better Business Bureau” when it actually had an “F” rating with the Bureau as of Nov. 3, 2016.
• Contracts utilized by J & N did not include the address of the sales representative or agent who solicited or negotiated the contracts, the registration number of the contractor, the dates or time period on which the work was to commence and by which the work was to be completed, the terms and conditions affecting contract price and any warranty or guarantee.
• The contracts also did not include state-mandated “Notice to Consumer” cancellation language and the toll-free telephone numbers provided by the Division for consumers making inquiries concerning contractors.
• The contractor failed to secure proper building and construction permits, failed to respond to consumers’ calls and texts into the status of their projects, failed to perform work after receiving payment and failed to give notice regarding delays in construction.

“For some New Jersey residents, the devastation suffered during Superstorm Sandy is not over. We will not tolerate unscrupulous contractors who compound that suffering through fraud,” said Steve Lee, director of the Division of Consumer Affairs.

The complaint seeks consumer restitution, the disgorging of federal money paid to the contractor, civil penalties, attorneys’ fees and investigative costs. In addition, the state is seeking to permanently revoke the contractor’s state registrations and forbid J & N and Lawson from operating a construction business in New Jersey.

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504- 6200.

Jamie Lynn Lawson photo provided by the Ocean County Prosecutor's Office