Former “Studs to Rugs” Owner Barred From Doing Business In North Dakota
BISMARCK, ND (KFGO) – Former Fargo contractor and business owner Timothy Rosene, is barred from doing business in North Dakota for at least the next five years, announced Attorney General Wayne Stenehjem.
In October, 2017, the Attorney General’s Consumer Protection division initiated an investigation of Rosene, doing business as Studs to Rugs, Inc., after receiving multiple complaints from homeowners. Investigators learned that Rosene had taken numerous large advance deposits from several individuals before abruptly closing his business without warning and without providing any refunds. As a result of the investigation, the Consumer Protection division sued Rosene for violations of the consumer fraud law.
The Cass County District Court found that Rosene had engaged in consumer fraud, abandoned projects, diverted funds, and failed to disclose financial difficulties when he knew or should have known that he would be unable to complete the projects. The court approved a settlement agreement between Rosene and the Attorney General’s Office, and entered a judgment, ordering Rosene to pay restitution of $121,958.16 to the various homeowners whose projects Rosene had not started or completed.
“Contractors who take advance payments and then do not complete the work will be held accountable for their actions,” said Stenehjem. “These unfortunate homeowners trusted Mr. Rosene with their hard-earned dollars. He violated that trust and the law.”
The court’s judgment also includes $12,250.00 in civil penalties, fees, and costs to the Attorney General’s Office. The District Court banned Rosene and Studs to Rugs from working as contractors for five years, or until Rosene has paid in full everyone to whom he owes refunds and the civil penalties owed to the Attorney General’s Office.
According to Parrell Grossman, Director of the Consumer Protection division, corporations and their principals are not insulated from personal liability when they have engaged in fraudulent activity. “Mr. Rosene is the person who made the promises and representations to these victims and he is personally liable for the conduct and restitution in this matter,” Grossman said.