The owner of an area furniture business has admitted to stealing more than $330,000 from customers, according to a press release from the Monmouth County Prosecutor’s Office.
On March 9, William C. Neumann Jr., 62, owner of Cabbage Rose, Fair Haven, and the Internet-based Chelsea Manor Unltd., pleaded guilty to one count of second-degree theft by deception and one count of third-degree failure to file taxes during an appearance in state Superior Court, Freehold, according to the release.
Neumann, of the Leonardo section of Middletown, entered his guilty pleas pursuant to a negotiated plea agreement with the Monmouth County Prosecutor’s Office.
The terms of Neumann’s plea agreement, which were reviewed with and approved by Neumann’s victims, provide for the Prosecutor’s Office to recommend that Neumann receive a seven-year state prison term for the theft by deception charge and a concurrent five-year term for the failure to file taxes charge. Pursuant to the negotiated plea agreement, Neumann will be required to pay more than $330,000 in restitution to his victims.
Neumann’s guilty pleas were entered before Superior Court Judge Ira E. Kreizman, who will sentence Neumann on June 19. He remains free on $150,000 bail until the sentencing.
After numerous complaints were received by the Prosecutor’s Office, the Fair Haven Police Department and the New Jersey Division of Consumer Affairs, a joint investigation was initiated by the three agencies in conjunction with the New Jersey Division of Taxation, the press release said.
The investigation revealed that Neumann received furniture orders and accepted deposits for merchandise pursuant to generated invoices.
The investigation further revealed that from January 2004 until January 2007 Neumann received payments from customers totaling more than $330,000 but failed to deliver any of the merchandise or submit any refunds.
The investigation determined that Neumann defrauded a total of 81 victims nationwide, according to the Prosecutor’s Office.
Additionally, from 2003 until 2006, Neumann failed to file New Jersey gross income tax returns.
Neumann also represented to his customers that he was an authorized dealer for several furniture distributors throughout the United States.
The investigation further revealed that Neumann was never an authorized dealer for these businesses.