Thursday, October 19, 2006
Closet World Agrees to Penalties
False advertising and exceeding contract amounts alleged
A Southern California closet firm and three related companies will be allowed to stay in business, but under close watch by the Contractors State License Board. Closet World Inc. has agreed to a “stipulated settlement and disciplinary order” after the CSLB investigated dozens of consumer complaints.
Violations alleged by the CSLB included false advertising, exceeding agreed-to contract amounts, employing non-registered sales persons and requiring excessive down payments from consumers.
In the settlement, which will take effect on November 13, the Whittier–based company has agreed to a stayed revocation of its license and being placed on probation for two years. Three other companies, Home Closets, Inc. Closets By Design and Closet Dimensions, Inc., dba Closet World, have agreed to the same terms. The inactive licenses of four individuals, O’Hannes Elias Jivalgian, Alexsan Jivalagian, Darren Berger and Willie Arias were placed on a one-year stayed suspension and put on probation for two years with terms and conditions.
The settlement includes 22 safety provisions for consumers and guidelines for the companies as the terms and conditions of this probation. “We look at this as a win-win situation,” said CSLB Registrar Steve Sands. “Consumers have protections in place and these established California companies get to stay in business. We’ll keep a close watch and make sure they follow through with the service that consumers deserve.”
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