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The AG’s Consumer Protection Division has reached a settlement of the civil charges against Christopher Engel, Karol Engel, Matthew Dihel, MOCHA Furniture Limited Liability Company, Urbana custom décor Limited Liability Company, and Farmstead Custom Furniture LLC in Frederick County, according to AG Brian Frosh.
Frosh said the group was "collectively charged with violating the Consumer Protection Act for collecting deposits and other monies from consumers to build custom furniture, and then failing to either provide consumers their ordered goods or to refund their money.”
As part of the scheme, the companies also were accused of intentionally going out of business to avoid repaying customers, and later opening under new names.
The settlement will require the Engels, Dihel, and the companies to return to consumers all the money the consumers paid for furniture they did not receive or that was received but did not conform to their orders, as well as to pay penalties to the state.
Under the settlement, the three will also be barred from operating a business in Maryland that accepts deposits without first providing a bond to ensure services are fulfilled.
Since at least 2019, prosecutors alleged that the Engels took orders and deposits for custom furniture, and misled buyers with false promises of delivery.
They then allegedly either failed to deliver the furniture or provided furniture that was “of worse quality than was advertised,” and then failed to provide consumers’ owed refunds for years.
Dihel later joined the scheme during different versions of the company as they attempted to duck customers looking for refunds.
The Engels and Dihel were also accused of misleading consumers each time they changed the business name and told consumers that the company the consumers had been doing business with no longer existed, Frosh noted.
Under the settlement, the collective must:
- Pay full restitution of at least $90,000 to consumers who were bilked during the scheme;
- $65,000 in civil penalties, which increase to as much as $200,000 if the Engels and/or Dihel fail to comply with the settlement agreement, including by failing to pay the full restitution amount;
- Agree to terms that will ensure that the Engels and Dihel, as well as their companies, do not further violate the Consumer Protection Act by forcing them to post a $100,000 bond before taking in any deposits upfront.
“Customers of the Engles, Dihel, and their companies paid for high-quality, custom-built furniture. Some got nothing at all. Others received products that were significantly inferior to what they were promised,” the AG said. “Consumers who were deceived by the respondents will be able to get their money back under this settlement.”
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