Jerry and Rick Chotin, the father and son team who own Kawin
Chotin Inc. in downtown St. Louis, may have to pay another
$50,000 fine and penalties of up to $2,000 per violation for
violating an agreement with the Attorney General's office. The
Chotins signed the agreement in December, promising to make
restitution to dissatisfied customers to whom they had sold
fracture-filled diamonds without disclosing that they were
filled. The Chotins recently went into Chapter 11 bankruptcy.
The Attorney General filed a suit against the Chotins on February
10 to force them to abide by the agreement, whose terms specified
that Rick and Jerry Chotin would be liable individually if by
January 15 the company did not satisfy consumers who bought the
treated diamonds. The suit charges that the Chotins failed to
issue full refunds to at least 100 consumers.
The suit also charges that the Chotins replaced at least two
altered diamonds with other altered diamonds without disclosure,
and induced or attempted to induce 17 consumers to sign
settlement agreements that eliminated the Chotins' liability to
these consumers.
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