SACRAMENTO, CA – A California jeweler must pay restitution in connection with a scheme targeting military families.
A Los Angeles Superior Court judge ordered defendants Ramil Abalkhad, owner of Romano’s Jewelers, and Melina Abalkhad, owner of MBNB Financial Inc., to pay the victims $16,440.56 by May 4, 2020.
“Individuals who participate in despicable crimes by targeting our young men and women in uniform will pay the price,” said California Attorney General Xavier Becerra. “We hope today’s announcement brings healing and closure to the victims of this scheme. Our office will continue to protect all Californians from all types of fraud – large or small. The California Department of Justice will always have the backs of our military families.”
Romano’s Jewelers had several retail locations in California, including stores near Camp Pendleton Marine Corps Base, according to a press release from Becerra’s office. The Abalkhads were alleged to have targeted young Marines and sailors, encouraging the purchase of jewelry using MBNB Financial for credit. According to the criminal complaint, Ramil Abalkhad failed to provide legally required disclosures about monthly payments, interest rates and others terms of financing.
Those customers who fell behind on their payments were allegedly harassed by the defendants’ debt collectors. In addition, the complaint alleged that Romano’s Jewelers used debt collectors who falsely posed as attorneys and illegally threatened servicemembers with court martial and other military disciplinary actions.
The California Department of Justice filed a 14-count felony complaint charging the defendants with conspiracy to violate the Unruh Act, which protects consumers who buy goods or services on credit, and the Rosenthal Fair Debt Collection Practices Act, which protects Californians against unlawful debt collection practices.
Becerra announced the sentencing of the defendants in December 2018. Ramil Abalkhad was sentenced to three years of felony probation, including a requirement that he serve 90 days in jail.
He will also be required to cancel outstanding MBNB debts owed by the victims identified in the criminal complaint and was also ordered to remove any negative credit reporting by MBNB from the victims’ credit history.
Melina Abalkhad was sentenced to complete a misdemeanor diversion program for her role in operating Romano’s Jewelers affiliate MBNB Financial.