New York's attorney general has launched a lawsuit against the owners of Buffalo-based FWS furniture company, which recently went out of business, costing customers thousands of dollars.
Attorney General Eric Schneiderman says consumers made advance payments to the company for goods totaling between $160,000 and $250,000. When FWS closed up shop in October, many of those customers were unable to obtain either their furniture or refunds.
FWS was purchased in May 2010 by Dynasty Companies of WNY, Inc. The company continued to lose money under the new ownership until it was shut down by its creditor. Schneiderman says FWS spent the advance payments in trying to stay afloat as the company was hemorrhaging hundreds of thousands of dollars.
“This company and its owners operated with a complete disregard for their customers’ hard-earned money,” said Attorney General Schneiderman. “Many people save for years to make such large purchases, and FWS’s careless practices have left customers out in the cold – with thousands of dollars lost and few options to recover those funds. These unscrupulous business practices ripped off Western New York consumers, and we will hold the perpetrators accountable for this misconduct.”
Schneiderman says some consumers were able to obtain their merchandise or stop credit card payments. The lawsuit is on behalf of those who stand to lose their advance payments.
The AG has requested a temporary restraining order preventing FWS and its owners from transferring any funds or destroying any business records.