Superstorm Sandy Seminar Scammer Must Pay $46,000 Restitution And Fines

(A screenshot of a YouTube video shows William Loiry speaking about a similar “Gulf Coast Leadership Summit” he hosted in the wake of the BP oil spill in the Gulf of Mexico that made similar promises.)

The Florida man who tried to fleece Toms River residents and thousands of others across the state while purporting to give residents information on rebuilding after Superstorm Sandy has been ordered to pay more than $46,000 in restitution and fines, according to a news release from the state Attorney General’s office.

William Loiry of Santa Rosa Beach, Fla., convinced 55 New Jersey residents to pay at least $175 apiece to attend his “Superstorm Sandy Reconstruction Summit,” which was to have taken place on Dec. 17, 2012 in Trenton. The state Division of Consumer Affairs, with the help of the state Division of Law, filed suit to stop the event.

Superior Court Judge Thomas M. Moore ruled Thursday that that Loiry’s actions constituted multiple violations of New Jersey’s Consumer Fraud Act and Advertising Regulations and orderd him to pay $46,384.20, of which $12,500 represents restitution for summit registration and/or sponsorship fees paid by those New Jersey consumers. The remainder of the judgment will pay the state’s attorney’s fees and a $10,000 fine.

“On the very same day that Superstorm Sandy struck, this Florida resident launched a scheme to profit from the aftermath here in New Jersey,” Acting Attorney General John J. Hoffman said. “He sent 70,000 emails urging the recipients to attend a ‘Summit’ at which top government leaders supposedly would inform the public about relief and rebuilding opportunities. He created a website bearing the Presidential Seal and language conveying the false impression that the ‘Summit’ was affiliated with government.”

“Our swift action put a stop to this false and misleading advertising, and has now resulted in a judge’s order that he pay restitution to those New Jersey consumers who registered to attend,” Hoffman said.

Loiry registered his Superstorm Sandy Reconstruction Summit website, www.sandyreconstruction.org, on October 29, 2012 – the same day Superstorm Sandy made landfall in New Jersey. The website featured the Seal of the President of the United States as well as a quote from President Barack Obama stating, “We are going to be here until the rebuilding is complete.”

The website promised an “all-day regional and national conference” at which consumers would “get the latest information … from top leaders” on relief operations, emergency housing, priorities for new construction of homes and infrastructure, and financing opportunities.

The website solicited registration fees of $175 to $275 per person to attend the Superstorm Sandy Reconstruction Summit, and $1,000 for corporate entities to sponsor the event.

Loiry also promoted the event and solicited attendance by sending approximately 70,000 emails to individuals, businesses, and government officials, promising that the event “will feature local, state, and national government, business, and nonprofit decision-makers providing the latest information on relief, restoration, and reconstruction.”

An investigation by the Division of Consumer Affairs revealed that, despite the promises and representations made in Loiry’s website and emails, no government officials had actually planned to attend or speak at the summit.

Loiry identified himself as the Chairman of the “United States Leadership Forum” and sent invitation emails from “NY/NJ Reconstruction Leadership” – purported organizations of which Loiry himself appears to have been the sole employee or member. Neither organization name is registered to do business in New Jersey.

“Beginning immediately upon Sandy’s landfall in New Jersey, the Division of Consumer Affairs has taken aggressive action to protect New Jersey consumers from post-disaster fraud in its many forms, including price gouging and misleading solicitations for charity,” Division of Consumer Affairs Acting Director Steve Lee said. “We will not tolerate those who attempt to line their pockets with profits from the misfortune of others.”

Deputy Attorney General Glenn T. Graham of the Consumer Fraud Prosecution Section represented the State in this action.

Lead Investigator Aziza Salikhov in the Division of Consumer Affairs’ Office of Consumer Protection conducted the investigation.

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