Monmouth County Builder Accused Of $230K In Sandy Fraud: AG

TRENTON, NJ — A Monmouth County building coontractor has been accused of defrauding four Monmouth County homeowners out of more than $230,000 in federal relief funds for repairs after Superstorm Sandy, the state Attorney General's office said Friday.

James J. Sullivan, owner of Eco-Coastal Building LLC in Monmouth Beach, is accused of violating the New Jersey Consumer Fraud Act, the Contractors’ Registration Act, regulations governing home elevation contractors and the regulations governing home improvement practices by failing to perform contracted-for improvements and/or home elevations after receiving federal Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program funds and consumer payments, Attorney General Christopher S. Porrino said in a news release.

Authorities also allege Eco-Coastal failed to pay a $1,250 fine it was ordered to pay as part of a 2016 consent order in which the company agreed to comply with the Consumer Fraud Act and other contractor regulations. Eco-Coastal also agreed to perform home elevations without ever being registered a home elevation contractor, Porrino's office said.

"This company has an admitted history of failure to adhere to the state’s rules governing home improvement contractors,” Porrino said. “We will not tolerate repeated abuses of consumers, especially those who are desperate to return home after Superstorm Sandy.”

The homeowners consumers identified in the complaint received money from the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, administered by the New Jersey Department of Community Affairs (“DCA”), to pay for construction work on Sandy-damaged homes. The RREM Program is the state's largest rebuilding initiative.

The complaint also alleges Eco-Coastal did not include required standard language in its contracts concerning dates when work would commence and be completed, information about materials to be used and the terms and conditions affecting price, as well as other standard information such as the toll-free telephone number provided by the state for information and Eco-Coastal’s state registration number.

The complaint, among other things, also alleges that:

• Eco-Coastal and Sullivan failed to complete work specified in the contract and then at times failed to respond to consumers’ calls, e-mails and texts inquiring about when work would continue.

• Eco-Coastal and Sullivan failed to pay subcontractors, who then refused to continue working until payment was received, which resulted in work being stopped or delayed. On two occasions, consumers paid subcontractors out-of-pocket, payments that were Sullivan's obligation.

• Eco-Coastal and Sullivan refused to provide consumers with documents, such as invoices, required by the RREM program.

• Eco-Coastal and Sullivan performed substandard work and then failed to make the necessary corrective repairs.

Authorities are seeking restitution for any consumer affected by the alleged conduct of Eco-Coastal and Sullivan, a return of the federal funds he acquired and civil penalties for the alleged violations of the Consumer Fraud Act.

The Division of Consumer Affairs is also seeking to permanently enjoin Sullivan and Eco-Coastal from doing construction work 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.

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