FOR IMMEDIATE RELEASE:
December 17, 2002

FOR FURTHER INFORMATION CONTACT:
Genene Morris (973)504-6327

NEWARK - New Jersey is suing a defunct southern New Jersey health club and its principals for allegedly defrauding consumers by accepting their money for long-term gym memberships even though the club was on the verge of closing and ceasing operations, Attorney General David Samson said.

The six-count administrative suit names as defendants One on One Fitness Corporation, its president, Heather K. Newton a.k.a. Heather K. Shapiro-Newton, and the club's vice president, Andrew S. Newton. The Newtons live in Mount Laurel. One on One Fitness also did business as One on One Women's Fitness Center.

The complaint alleges that the defendants promised consumers who were buying or who had bought memberships with the gym that, although the Stratford location was closing, they were going to open another in Voorhees where their memberships would be valid.

In fact, the Voorhees location was never opened, leaving consumers out of the money they paid for the memberships.

Furthermore, the complaint alleges, the gym took money for memberships for another location it was purportedly going to open in Hainesport. The gym never opened, once again leaving consumers without the memberships and without their money.

"Consumers should not have to feel as though they are taking a gamble with their money when they enter into gym membership agreements," Governor James E. McGreevey said. "They should be able to trust when a business owner accepts payment for services he says he or she will deliver, he or she will do it."

"As a business owner, you cannot take people's money for services you know full well you cannot deliver," Attorney General Samson said. "That's not just bad business practice, it's unlawful."

The complaint also alleges that the defendants:

• made false promises that members of the One on One facility in Stratford would receive two additional months free at the end of each membership;
  
  
• failed to register with Consumer Affairs' Regulated Business Section and file a bond of at least $25,000 as required under regulations governing health clubs.
  
  
• sold long-term membership contracts for an unregistered facility, for which there was no bond from which aggrieved consumers could be reimbursed.

The State's suit seeks a court order requiring the defendants to pay restitution to affected consumers and pay the State civil penalties, costs and attorneys fees.

Deputy Attorney General Kenneth Adebonojo of the Division of Law is handling this matter for the State.