Legal News

Cuomo Charges Alleged Craigslist Scamsters

By Amir Efrati

Craigslist, the free classifieds site, has come in handy since we moved to Gotham four years ago, though the LB sadly notes that the popular site has taken a bite out of newspapers’ balance sheets over the years. (Also, the LB recently failed to sell a used Playstation 2 slim (with two controllers!) on the no-nonsense site.)

But apparently the site also has been a big headache for thousands of apartment hunters in New York.

How do we know? Earlier today, just a stone’s throw away from LB headquarters, New York Attorney General Andrew Cuomo criminally charged four individuals at New York City apartment broker Innovative Apartments and Screening Services Inc. for using Craigslist to lure thousands of people into paying $200 apiece for credit reports and background checks that were never conducted, and for access to what ended up being non-existent or unavailable apartments.

The scam allegedly bilked around 4,000 people, who responded to Craiglist posts advertising “exclusive” listings for no-fee apartments, out of more than $900,000 over the last three years.

Adding insult to injury, when the complainants tried to obtain a refund, Innovative’s employees allegedly routinely ignored their requests, provided only a partial refund, or issued refund checks that did not clear.

Click here for a smiliar Craigslist scam spotted by Bakersfield, Calif., TV station KGET.

Full post as published by Law Blog - WSJ.com on July 17, 2008 (boomark / email).