A New Jersey-based auction house accused of falsely labeling its items as “confiscated assets from narcotics dealers” prior to locally held sales is permanently barred from making any misleading statements in the future and must pay $20,000 in penalties as part of a civil settlement with the San Mateo County District Attorney’s Office.
The office announced the settlement Friday, only days after the complaint was filed against State Auction Services, Inc., in San Mateo County Superior Court. The company must pay civil penalties and costs as well as agreeing not to misrepresent any items at auction under the Nov. 21 stipulated final judgment signed by Judge Beth Freeman. The company did not have to admit any liability.
The complaint claimed the company “engaged in false and misleading advertising and unlawful business practices” as part of its San Mateo County auctions. The auctions, held in local hotels, were preceded by advertisements claiming hundreds of jewelry pieces were seized from drug dealers by various United States law enforcement agencies. The jewelry was not actually confiscated assets, according to the complaint.
The suit also claimed the defendants violated state auction law by failing to post consumer information at the site or have a $20,000 bond.
Neither prosecutor John E. Wilson nor Paul B. Brickfield, attorney for State Auction Services, could be reached for comment.
Michelle Durand can be reached by e-mail: michelle@smdailyjournal.com or by phone: (650) 344-5200 ext. 102. What do you think of this story? Send a letter to the editor: letters@smdailyjournal.com. |