Bamboozled: Fallout for bomb shelter scammer is a big one

Al Demola, a man profiled in the Bamboozled column for six years over a variety of scam complaints, has reached a settlement with the state

Three consumers who purchased bomb shelters from a New Jersey businessman will be getting their money back.

Al Demola of Cranbury, a man profiled in the Bamboozled column for six years over a variety of scam complaints, has reached a settlement with the Office of the Attorney General and the Division of Consumer Affairs.

Demola and the company, Titan Shelters, will pay $177,373. Of that, $71,800 is restitution for three consumers who filed complaints with the division. It also includes $83,000 is in civil penalties and $22,573 in attorneys' fees and investigative costs, the state said.

"Demola was marketing products to people who were anticipating a disaster, and with Demola, they got a disaster, according to the allegations in our complaint," said acting attorney general John Hoffman. "With this settlement, we're securing restitution for consumers who never received the shelters they were promised."

Demola advertised the business, which was supposed to be located in New Jersey, in the Virginia and West Virginia markets.

The settlement comes after a seven-count civil complaint was filed by the state against Demola and Titan Shelters in March 2015. The state alleged Demola took payments for bomb shelters that he never delivered, violating the Consumer Fraud Act, the Home Improvement Contractors' Registration Act and other statues. 

With the settlement, Titan Shelters may not do business in New Jersey, and the company must be dissolved.

A 2013 screen shot of the now defunct web site of Titan Shelters.TitanShelters.com 

For at least three years, Demola may not advertise, offer for sale, sell and/or perform home improvements in the state. Also for three years, Demola cannot manage, operate or own any business in New Jersey that requires licensing or registration by Consumer Affairs, including as a home improvement contractor, plumber, electrician, fire or burglar alarm installer, or locksmith.

"Titan Shelters and Demola operated as unregistered home improvement contractors in New Jersey and sold merchandise allegedly manufactured at a non-existent location," said Steve Lee, acting director of the state's Division of Consumer Affairs. "Through this settlement, we have achieved our goals of halting Titan Shelters' business operations and have prohibited Demola from operating as a home improvement contractor in New Jersey."

Messages left for Demola's attorney, James Lisa of Jersey City, were not immediately returned. 

Bamboozled readers first met Demola in 2010 when he ran a series of waterproofing companies that received a host of consumer complaints. 

Dozens of consumers came to Bamboozled over the years with claims that Demola's companies scammed them. Over and over again, we unearthed evidence that the companies consumers complained about were linked to Demola -- through known addresses, registrations in Demola's and/or his wife Kim Costa's name, through photo identification from unhappy customers  -- but authorities never took action.

THE BULLDOG

Tina Greene, the Kinsdale, Va., woman whose persistence was at the heart of this case, first contacted Bamboozled in 2014 after she learned of Demola's bomb shelter offers to others in Virginia. 

"I'm glad that there's restitution," Greene said of the settlement. "He should have been stopped a long time ago."

Tina Greene and her husband Jerry stand on their property in the area where their bomb shelter was to be installed.Tina Greene 

Greene first contacted Demola in January 2014, and he traveled to her home to give an estimate, she said.

"This man was such a smoothie. He was so likable," Green said of their first meeting. They talked about family, and about their shared devotion to God, she said.

Demola originally quoted Greene a price of $16,200 for the shelter. 

"Then he said he prayed on it, and gave a discount to $12,000," Greene said.

To help with the financing, Greene said, Demola recommended a banker friend of his, Tim Brazil, who was employed by Admirals Bank in Providence, R.I., according to Greene and a series of letters with the bank.

Greene worked with Brazil and took a loan with Admirals for more than $12,000 in March 2014, documents show, and $11,000 was wired to Demola's account, documents show.

Greene would make monthly payments of $188 on the loan.

But she'd be paying on a loan for a product she never received.

By the spring of 2014, Greene said, she knew something was very wrong.

Demola wasn't returning her calls, she said, or when he did, he had all kinds of excuses for why work hadn't started yet. He'd had a heart attack. He was completing other jobs and the weather put him behind schedule. And on, and on, and on.

Greene started regular communication with an investigator with the New Jersey Division of Consumer Affairs. She said the investigator told her the state was working on a case.

In early June 2014, Greene received a message from Demola. He said he had a cancellation on a unit that was bigger than what Greene had ordered, but he was willing to give it to her at no additional charge.

But by then, Greene was done. All she wanted was her money back.

Demola agreed to a refund, and Greene got it in writing in a letter dated June 17, 2014.

"Titan Shelters is unable to refund the monies requested in full at this time," the letter said. "However, Titan can offer a refund in installments of $1,000 per month, plus payment of $190.00 for your monthly note to Admiral's (sic) Bank for six months, and the remaining balance to be paid on the seventh month."

The letter was signed by Alfred Demola.

But no refund money was ever sent to Greene.

It would be nearly a year later when Consumer Affairs would file the civil suit against Demola.

"This man needs to be in jail," she said. "I'm still paying on the loan and I don't want to ruin my credit because of him."

Greene hired an attorney and they tried to get Admirals Bank to release the loan because, they said, it was made under fraudulent circumstances.

But Admirals Bank told the Greene's attorney that Demola wasn't their employee and there was nothing they could do, documents show.

We tried to track down the fired loan officer, but messages left were not returned, and Admirals Bank didn't respond to multiple requests for comment.

WILL THE MONEY COME?

The settlement will allow the victims to pay off the loans, and hopefully be made whole.

We hope Demola will make things right by paying the restitution, but his track record isn't exactly pristine.

Aleta Heir stands in her basement. She won a $200,000 settlement against a waterproofing company linked to Al Demola, but she hasn't received any payments. Saed Hindash/NJ Advance Media 

There are several outstanding judgments against Demola or his former companies for cases involving his waterproofing businesses.

Aleta and Jack Heir, a Freehold couple that won a $200,000 judgment against a waterproofing company linked to Demola, said  they were glad to hear of the settlement.

"He's a lowlife, as low as can be," said Jack Heir. "At least they got something out of him. It would be better if he went to jail but this is one small step for mankind."

Public records show Demola and his wife filed for bankruptcy in 2013, but the case was dismissed because they didn't file all the required information with the court.

Demola has 30 days from the date the settlement was filed with the court -- Jan. 4 -- to make the full payment, Consumer Affairs' Lee said.

"If that doesn't happen, we will do everything we can to use legal means to get that money back to consumers and get the civil penalties that have been agreed to," Lee said. 

We'll keep you posted on any money received by the customers as part of the settlement.