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Attorney General Sues Kawin Chotin

Feb 18, 1994 10:18 AM  
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Jerry and Rick Chotin, the father and son team who own Kawin

Chotin Inc. in downtown St. Louis, may have to pay another

$50,000 fine and penalties of up to $2,000 per violation for

violating an agreement with the Attorney General's office. The

Chotins signed the agreement in December, promising to make

restitution to dissatisfied customers to whom they had sold

fracture-filled diamonds without disclosing that they were

filled. The Chotins recently went into Chapter 11 bankruptcy.

The Attorney General filed a suit against the Chotins on February

10 to force them to abide by the agreement, whose terms specified

that Rick and Jerry Chotin would be liable individually if by

January 15 the company did not satisfy consumers who bought the

treated diamonds. The suit charges that the Chotins failed to

issue full refunds to at least 100 consumers.

The suit also charges that the Chotins replaced at least two

altered diamonds with other altered diamonds without disclosure,

and induced or attempted to induce 17 consumers to sign

settlement agreements that eliminated the Chotins' liability to

these consumers.

Tags: Consumers
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