Frederick County furniture sellers to pay $155K in AG settlement

Mary Grace Keller, The Frederick News-Post, Md.
·2 min read
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Jul. 12—Frederick County furniture sellers accused of failing to deliver products as promised have reached a settlement with the Consumer Protection Division of the Maryland Office of the Attorney General.

The settlement requires payment of at least $90,000 in restitution to consumers and $65,000 in civil penalties, according to a news release on Tuesday from Attorney General Brian E. Frosh's office.

In May, the attorney general's office announced charges against Christopher Aaron Engel; his wife, Karol Engel; Matthew R. Dihel; Urbana Custom Décor Limited Liability Company; Farmstead Custom Furniture LLC; and MOCHA Furniture Limited Liability Company.

They were collectively charged with violating the Consumer Protection Act "for collecting deposits and other monies from consumers to build custom furniture, and then failing to either provide consumers their ordered goods or to refund their money," the release said.

The attorney general's office also alleged the companies closed and reopened under new names to avoid repaying customers.

The accused reportedly took deposits for custom pieces, made excuses when products were not delivered on time and sometimes provided lower quality furniture than promised, according to the attorney general's office. Customers did not get refunds they requested, according to the attorney general's office, with some dating back to late 2019.

The settlement puts restrictions on those involved to prevent future violations. The Engels, Dihel and the companies cannot take payments before delivering a product unless they first post a $100,000 bond with the Consumer Protection Division, the release said.

Civil penalties could reach $200,000 if the Engels and/or Dihel fail to comply with the settlement agreement.

Christopher Engel said his decision to settle was financially motivated.

In a phone interview Tuesday, Engel said they would have faced greater fines if they did not agree to the settlement. He does not view the settlement as admitting to any wrongdoing and said he disagrees with the accusations.

Engel said he and Dihel will continue to sell what furniture they can to help pay restitution and fines.

"The agreement has been made and we have to live with the agreement," Engel said.

Follow Mary Grace Keller on Twitter: @MaryGraceKeller