AG to keep pressing Raleigh e-retailer accused of deceptive business practices


RALEIGH, N.C. (WNCN) – It’s been almost a week since a judge ordered a Raleigh-based e-retailer who is accused of deceptive business practices to start making refunds.

But how is that process being monitored?

It’s up to the attorney general’s office to monitor compliance with the court order by eRummagers. The attorney general’s office was the one which brought suit against the company which resulted in the injunction.

At the moment, the attorney general’s office is concerned that eRummagers may not have enough money to repay all the victims who ordered goods which were never delivered.

Attorney General Josh Stein says his people are still trying to figure where the money is located.

Stein says as of now, “We don’t know” if there is a proper accounting of the funds.

When Judge Bryan Collins issued his injunction against the company last Monday, he set no hard deadline for it to comply and the attorney general says eRummagers has yet to provide it with the answers it needs regarding victims.

“The court ordered eRummagers to give us a complete list of all outstanding customers owed refunds,” said Stein. “We don’t have that information yet.”

Stein said the court order placed a block on eRummagers and all its affiliated business from taking any money for purchases made in advance.

CBS North Carolina went on eRummagers site and found that indeed, its checkout function is now disabled.

But, records from the Secretary of State’s office show Caleb Udofia, the same man who owns Erummagers, also owns another online e-retailer called Kente Sunwear. It’s still active.

And the state is worried about that company.

In court Monday, assistant attorney general Kristine Ricketts said her office believed Udofia is selling merchandise on the Kente Sunwear site that was once available on eRummagers..

“The state’s concern here is that this is a Ponzi scheme where new sales are generated to repay prior victims,” said Ricketts.

The state says it must have a list of victims who need refunds from eRummagers

“We are going to continue to press the company until we get a comprehensive list to understand the full scale of the problem here,” said Stein.

After the injunction was issued, the attorney for eRummagers told CBS North Carolina refunds might take some time.

Attorney James Jorgensen said refunds would be made “as soon as reasonably possible. We’re working towards, and hope by the end of the year.”

Meanwhile, Stein says his office will make the case a priority.

“We are going to keep pushing and pushing this until we get to the bottom of this,” said Stein.

The attorney general also says his office is ready to take eRummagers back to court if they continue failing to comply with the court order.

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