RALEIGH, N.C. (WNCN) – New allegations about the owner of a Raleigh-based e-retailer who has been accused of by the attorney general of deceptive business practices.
The owner of eRummagers was back in court Thursday.
A judge discussed the possibility of criminal contempt charges against Caleb Udofia after the state said he was violating the temporary restraining order against him and his company.
He and his attorney listened as the state told the judge Udofia is personally selling items from the eRummagers website on such sites as “Let Go,” “Craig’s List”, and “Offer Up.”
“It appears to the state that the defendants assets and inventory are being sold off and transferred to Caleb both personally and through his new corporation Kente Sunwear. These violations must end or before long eRummagers will have no assets,” said Assistant Attorney General Kristine Ricketts.
She also claimed Udofia’s been taking customer complaints off the eRummagers website.
“The defendant removed 21 to 51 complaints, over 40 percent. That’s a violation of the court’s TRO,” said Ricketts.
Udofi’s lawyer denies the charges.
“Nothing is being transferred or sold off. No sales are being made. no transactions are being engaged in,” said attorney James Jorgensen.
He told the judge those were advertisements on other sites that one up before the temporary restraining order went into effect.
The lawyer also said the complaints were still up on what he described as the “back end of the site” and not visible because they were stored on app and Udofia’s company stopped paying for the app.
After hearing those explanations, Judge Graham Shirley issued a stern warning.
“Any disobedience of this order is criminal contempt,” Shirley said.
As for Udofia, he still refuses to speak.
After the court session ended, CBS North Carolina’s Steve Sbraccia tried to speak to him on camera.
Udofia kept silent and his lawyer said, “I’m asking him to hold off on that for now.”
Asked about the new allegations against his client, his lawyer said, “We need to look at the allegations before in a position to talk on it. Probably through pleadings in the case as opposed to the media.”
The judge granted Udofia and his lawyer another week to put together documents needed for their case.
In the meantime, the temporary restraining order has been extended until Nov. 13, prohibiting eRummagers from doing business or spending any cash.