Fair Lawn Moving Company Accused of Holding Customers' Items Hostage

The owners of a Fair Lawn moving company provided artificially low estimates to customers and then threatened to drive off with their belongings if they didn't immediately pay as much as double the original quote, the Attorney General's Office said.

The state filed a 10-count indictment Thursday against Adam, 32, and Oziel Eliad, 60, both of Paramus and owners of Moving Max Inc. 

The indictment alleges the Eliads committed multiple violations of the Public Movers and Warehousemen Licensing Act and its related regulations, and the Consumer Fraud Act. The state is seeking enhanced penalties because Adam Eliad and Oziel Eliad allegedly violated terms of a February 2007 Final Consent Judgment related to a former moving company they owned.

The Division of Consumer Affairs has received 15 consumer complaints against Moving Max, totaling nearly $13,000 in overcharges the customers claim to have paid, according to the Attorney General's Office.

The Division is seeking enhanced civil penalties of up to $20,000 for each violation of the Consumer Fraud Act and up to $5,000 for each violation of the Public Movers and Warehousemen Licensing Act.

“Moving Max and its owners, Adam and Oziel Eliad, held consumers’ possessions hostage, threatening to drive away with furniture and other personal items, unless they were immediately paid outrageously high and sometimes bogus fees,” Acting Attorney General John J. Hoffman said. 

“We allege that the defendants are repeat violators of our consumer protection laws and regulations. We are asking the court to permanently bar them from the moving industry and impose enhanced civil penalties for their egregious actions."

The complaint alleges the defendants provided consumers with artificially low quotes via the Internet. These quotes ranged from approximately $225 to $921, the Attorney General's Office said.

But after loading consumers' property onto the moving truck, the company demanded significantly higher payments, ranging from $500 to $1,665, the Attorney General's Office said.

The defendants attempted to justify these amounts with "exorbitant and bogus charges" that had not been disclosed or discussed beforehand, the Attorney General's Office said.

These included charges for items and services such as unnecessary packing, use of tape and blankets that were not actually necessary or used, carrying furniture on stairs, travel time, and even an “EPA” fee when no such fee was included in company’s tariff (the “Moving Max tariff”)—a formal schedule of rates and charges filed with the Division of Consumer Affairs, the Attorney General's Office said.

When customers protested these amounts, the defendants allegedly threatened to drive off and retain the consumers’ personal belongings until payment was made by cash or money order, the Attorney General's Office said.

The complaint also alleges the defendants failed to conduct physical pre-move inspections of the consumers’ belongings; failed to provide consumers with a copy of the state-mandated brochure, “Important Notice to Consumers Using Public Movers," intentionally concealed contractual forms so they could not be read by consumers who were pressured to sign the forms without being able to read them adequately and failed to provide a written estimate or a formal contract to the consumers, according to the Attorney General's Office.

"Moving Max allegedly used bait-and-switch tactics to victimize consumers," Acting Consumer Affairs Director Steve Lee said. "These consumers were vulnerable, as their possessions had already been loaded onto a Moving Max truck, and many felt they had no choice but to pay these excessive and predatory fees. We intend to get the money used to pay for these illegal fees back to consumers and to hold the defendants accountable for their actions."

The Eliads on Feb. 8, 2007 had entered into a consent judgment with the Attorney General and the Division of Consumer Affairs, which resolved a civil enforcement action brought by the Division of Consumer Affairs against the Eliads and a former moving company, A Professional Movers, Inc. 

That consent judgment included the provision that any future violations of the Public Movers Licensing Act and Regulations or the Consumer Fraud Act would be subject to enhanced penalties. 

The state’s new complaint alleges the Eliads have violated multiple injunctive relief and business practices provisions of this consent judgment by charging and receiving compensation at rates significantly higher than the rates in the Moving Max tariff, charging for items not found in the Moving Max tariff, and other alleged violations, the Attorney General's Office said.

Consumers who believe they may have been victimized by Moving Max or other moving companies can file a complaint online with the State Division of Consumer Affairs or by calling 1-800-242-5846 or 973-504-6200.