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By JOHN DECKER jdecker@leader.net
Saturday, January 29, 2000     Page: 3A

WILKES-BARRE – More than 40 local consumers allegedly bilked out of more
than $25,000 by a Wyoming carpet firm likely will not get their money back, a
state official said Friday.
   
Deputy Attorney General James Sysko said the attorney general’s plans to
sell the inventory of Wyoming Valley Discount Flooring and use the funds for
restitution to consumers have been dashed.
    “They’re basically out of luck at this point,” Sysko said.
   
A New York wholesale carpet company that delivered products to owners
William and Joseph “Jay” Gallagher was never paid. But the wholesale company
settled a claim against the brothers in April, a few months before action was
taken locally.
   
William, 44, has since died. He was found dead at his home at 309 Pittston
Ave., Avoca, on Thursday night. Chief Deputy Coroner Joseph Shaver on Friday
attributed the death to natural causes. Shaver would not comment on who found
Gallagher or how long he had been dead.
   
Regarding the payback to consumers, Sysko cited a line commonly used by
attorneys: “First in line, first in right.”
   
Sysko said the brothers owed the wholesale company $4,000, about equal to
the value of the inventory held. Sysko fears most of the merchandise will be
bought at a Feb. 23 sheriff’s sale, leaving little for local consumers.
   
The Gallaghers owned the store at 187 Wyoming Ave. Police say the two men
bilked at least 42 customers out of more than $25,000.
   
Police said customers who purchased flooring called to try to get their
deposits back, but they were usually told there were no cash refunds, only
store credit. Others were told they would receive a check in the mail, but a
check never came, according to arrest papers.
   
Now only one of the brothers remains as the case proceeds to trial in
Luzerne County Court.
   
Joseph Gallagher, 41, of Wilkes-Barre, awaits trial on the deceptive
business charge. He is also charged with forgery and writing bad checks.
   
William Gallagher had faced a charge of deceptive business practices. He
also was charged with striking a customer with his van, but the reckless
endangerment charge filed against him was dismissed because a witness failed
to attend Gallagher’s preliminary hearing.
   
A district justice dropped a theft by deception charge against both
brothers because he felt police failed to prove the Gallaghers intended to
deceive their customers.
Call Decker at 829-7222.