An Appellate court found that Jon Paxton was found in violation of the Consumer Fraud Act. Court documents show that Jon Paxton filed false documents for the sale of condos in 2005. The ruling came from the Appellate Division, following a complaint being filed by ABJ Sprinkler Co. Paxton owned JP Prime, Juan Pablo’s Margarita Bar, and Café Jon Paul and has since filed for bankruptcy after owning a number of companies money, including Coastal Broadcasting. The judges said that Paxton signed the title over saying the property was free of liens or judgment, despite knowing there was a construction lien placed on the property. Part of the ruling read:
“However, the additional admissions in Paxton’s deposition also establish that he knew the representations were false when he made them, because he knew that Cresse still owed ABJ money for the sprinkler installation and that there was an ongoing dispute over the amount due. In this context, the failure to promptly file the Master Deed is beside the point. The CFA violations occurred when Paxton signed the affidavits of title and supplied them to the buyers.”
The trial court initially said that Paxton didn’t violate the Consumer Fraud Act, but did file a lien in their favor. The Appellate Division has decided to “reverse the order on appeal and remand this matter to the trial court to address the issues of damages and counsel fees under the CFA.”
