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A second lawsuit has recently been filed in New Jersey Superior Court regarding the Atlantic City Pesach program fiasco, FAA News has learned.

The lawsuits name as defendants Hersch (Heshy) Goldstein and his brother Joel Goldstein, as well as Aryeh Hospitality, LLC and JGold Supreme Services, LLC which are companies under their ownership, as well as Hennie Goldstein and Simon Youngwirth, the bookkeeper.

Some families paid over $23,000 for their Pesach program reservations, which they booked many months in advance.

The frenzy began on March 29, 2023, just days before Pesach, when Heshy Goldstein emailed everyone who had placed reservations and alleged that he was the victim of a “huge financial scam” and was unsure if the Passover Program could continue as planned. The email also stated that “any payments that were made this morning will not be processed unless we reach a resolution.”

Ultimately, the Pesach program was not held, and refunds were not given.

On June 7, Hackensack Attorney Charles I. Epstein Esq. filed a class-action suit on behalf of everyone who had placed a reservation, highlighting that Goldstein did not provide any details or proof of the “huge financial scam” of which he claimed he was a victim.

"On information and belief, there was no actual financial scam of which the Defendants were a victim. Instead, it is believed that Goldstein failed to make required payments to the Claridge Hotel and that is the reason the Passover Program could not proceed. On information and belief, the funds that Plaintiff paid were diverted by the Defendants for their own benefit or the benefit of others," the suit charges.

The 10-count Complaint includes allegations of; 1) breach of contract; 2) consumer fraud; 3) fraud; 4) consumer fraud; 5) fraudulent transfers; 6) fraudulent transfers; 7) fraudulent transfers; 8) for an accounting; 9) unjust enrichment; and 10) racketeering.

The suit, which was filed in New Jersey Superior Court in Bergen County, seeks judgement for compensatory damages, punitive damages, treble damages and counsel fees plus costs of investigation and litigation of this matter.

Ocean Township Attorneys Richard J. Angelo Esq. and Joseph G. Hughes Esq. have now filed yet a second lawsuit in this matter.

This second lawsuit, which was filed in New Jersey Superior Court in Ocean County and represents only two Plaintiffs, includes allegations of; 1) breach of contract; 2) consumer fraud; 3) fraud; 4) consumer fraud; 5) fraudulent transfers; 6) unjust enrichment; and 7) negligently caused economic loss.

The suit request judgment against Defendants for compensatory and punitive damages or appropriate equitable relief, together with attorney’s fees, if applicable, costs of suit, and any other relief as the court may deem proper.

Heshy Goldstein and his, pro se, have filed motions to dismiss the first lawsuit, arguing in part that the program contract included a provision that any disputes will be adjudicated before a Bais Din.

The Plaintiffs filed Opposition to the motion, arguing that the arbitration provision is not enforceable pursuant to a 2014 New Jersey Supreme Court case decision known as Atalese v. Legal Services Group, which found that arbitration provisions must include explicit waiver language which states clearly and unambiguously that in choosing arbitration, consumers are giving up their right to seek relief in a judicial forum. In this instance, the program contract simply stated that any disputes will go to Bais Din, but there was no "explicit waiver" language.

Mr. Goldstein filed a Reply Brief arguing that Atalese is only applicable in "standard" arbitration panels, but not Bais Din.

The Plaintiffs shot right back that, as recently clarified by the Appellate Division in the Lakewood case of Bedrock Steel vs. Accurate Builders, the explicit waiver language requirement pursuant to Atalese does apply to Bais Din as well. (Read more about that case here on FAA News).

The motion hearing was originally scheduled for last Friday, August 4. However, as the lawsuit also names as a defendant an LLC, the court has advised Mr. Goldstein that his LLC must be represented by an attorney. The court has therefore adjourned the motion hearing to next Friday, August 18 to give Mr. Goldstein an opportunity to retain an attorney.

As previously reported here on FAA News, the New Jersey Supreme Court has recently agreed to review the specific requirements of explicit arbitration waiver language.

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1 comment:

Anonymous said...

I know I'll get shame for this but there's no evidence that hebudmsed it for other purposes meaning the plaintiff is claiming ge gad other BILLS to pay...
Where ? What are they ? If you make claims you must prove them! I've see. The videos his proof is that he was hacked and the emails were very similar so he sent the money to somone else-the spoof email- buy that can be easily fabricated. the huge chillul hashem this will cuase I think soomkne should make a go fund page for the victims