Pipeline giant AJ Perri was fined $100,000 — the largest ever imposed by the New Jersey Pipeline Commission — and agreed to change its fraudulent business practices under a compliance order with the state attorney general’s office.
The deal was completed last week after an investigation by Bamboozled found that the company routinely performed unnecessary high-priced work, encouraged employees to sell work and used customer scare tactics, including falsely claiming their devices could explode at any moment.
Bamboozled spoke to dozens of clients, as well as current and former employees of AJ Perri, who talked about predatory practices based on commission-based sales structures and pressure to meet sales targets.
Following the investigation, the state plumbers’ board began its own investigation, which eventually resulted in complaints from 30 people, some of which were exposed in the duped case investigation.
According to a consent order between the board of directors and minority shareholder Michael Perry, a licensed master plumber AJ Perri, the company has “repeatedly used deceit and misrepresentation” in violation of the Uniform State Enforcement Law.
AJ Perri also failed to retain video footage of the operation and document its findings in violation of the pipeline’s state licensing, the order said.
The company admitted no violations under the settlement agreement and agreed to pay $75,000 immediately. The remaining $25,000 fine is reserved for AJ Perri for complying with the terms of the agreement.
Attorney General Christopher Porrino said that A.J. Perri technicians “used overly aggressive and deceptive tactics to force consumers, many of whom were elderly, to pay for plumbing repairs that were unnecessary or far in excess of what was needed and service charges.” “.
“This settlement not only imposes record civil sanctions for serious misconduct by AJ Perri, but also requires the company to make significant changes to the oversight and management of its technicians to ensure that consumers receive transparency and compliance from AJ Perri, both the law requires. Be honest. ” Pollino said.
AJ Perri President Kevin Perry said the company thanked the board of directors for their “thorough investigation”.
“While we disagree with the board’s findings and strongly deny that our business promotes, supports or encourages any behavior that is contrary to the interests of our clients, we are pleased that the board agrees that this matter should be brought to a close and we we can both do it behind us,” Perry said in a written statement to Bamboozled.
The case began when employee AJ Perri reported him to Bamboozled. An employee who shared internal emails and photos claims the company sold the sewers for $11,500 to 86-year-old Carl Bell when only on-site repairs were needed.
The story prompted dozens of consumer complaints about Bamboozled, including from the family of an 85-year-old man with Alzheimer’s. The family said they asked AJ Perry to stop contacting their father, but the call continued and the father accepted the $8,000 job, which his son says he doesn’t need.
Another consumer said her grandparents, both in their 90s, were afraid to accept an $18,000 job that would require them to rip out their basement floor and dig the earth two feet, 35 feet deep to replace a supposedly crushed cast iron pipe. The family asked why the company replaced the entire pipeline and not just the part where the blockage was found.
Others reported being told that their heating equipment emitted harmful carbon monoxide and a second opinion suggested that this was not true.
Internal email regarding Carl Baer’s pipe replacement, provided to Bamboozled by AJ Perri staff.
One demonstrated a “leadership” competition, and another advised employees to focus on daily support calls to “find as many problems with the heating or cooling system as possible, give technicians access to home heating and cooling vendors for the price of a new system,” the employee said.
“They reward the best sellers with bonuses, trips to Mexico, meals, etc.,” said another employee. “They don’t reward non-sellers or tell people it’s okay.”
The Pipeline Committee began its review by inviting these consumers and others to testify before the committee.
The board shared its findings in the agreement, including several complaints that the company misrepresented the condition of consumer plumbing in an “trying to sell repairs more expensive.” Other complaints allege that “the company used ‘pressure’ or ‘scare tactics’ to sell more expensive or unnecessary repairs.”
When the commission contacted the company’s representatives with specific consumer complaints, it learned that the video of many customers’ sewer and water networks had been recorded for government verification, but there were no photographs confirming the recommended work. In other cases, jobs were recommended by camera specialists who were not licensed plumbers, and the company had no instructions to confirm whether those recommendations or videos were viewed by a licensed plumber.
Attorney General Pollino said that prior to the settlement, AJ Perri, at the board’s request, offered all or part of compensation to affected consumers. The consent order states that a total of 24 customers who complained to the state received full or partial refunds. The others didn’t give AJ Perri any money.
“We thank Bamboozled for bringing this to light and encourage consumers to file a complaint against AJ Perri,” Pollino said. “The information they provided to the department helped us take appropriate action to stop this fraudulent business practice and protect consumers, especially vulnerable seniors, from such harm in the future.”
In addition to fines and reprimands, the agreement provides important protections for the rights of potential AJ Perri clients.
All inspection cameras of sewer or water lines will be maintained for four years and made available to the state upon receipt of complaints.
AJ Perri must provide referral options in writing, not just verbal, and consumers must sign the form.
Any work recommended by a Perri employee (non-licensed plumber) must be approved by a licensed plumber before work can begin. Referrals from licensed plumbers must also be in writing.
If the state receives a complaint in the future, the company undertakes to provide a written response to consumers and the state within 30 days. The consent order details how complaints should be handled, including binding arbitration with the Department of Consumer Affairs, if consumers are not satisfied with the company’s response. In addition, future violations involving the elderly will result in a fine of $10,000 each.
“I am pleased to. I’m glad the government is involved and they have new rules and regulations that AJ Perry has to follow,” said Bell, the homeowner who initiated the investigation. “At least people now have conversion.”
Ironically, according to Baer, he continues to receive calls from companies, such as those servicing his furnace.
“To think that someone wants and can take advantage of it because of their age is tantamount to a criminal offense,” she said.
Richard Gomułka, who claims AJ Perri told him his boilers emit dangerous amounts of carbon monoxide, praised the deal.
“I hope this stops other companies from doing this with other consumers in the future,” he said. “I regret that no one has ever gone to jail for these fraudulent activities.”
have you been deceived? Contact Karin Price Muller at Bamboozled@NJAdvanceMedia.com. Follow her on Twitter @KPMueller. Find Bamboozled on Facebook. Mueller is also the founder of NJMoneyHelp.com. Stay informed and subscribe to the weekly NJMoneyHelp.com email newsletter.
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Post time: Oct-17-2022