Precious Cargo Will Provide Full Consumer Refunds, Resolve Tax Obligations

On June 1, 2012, more than 100 families were told their daycare provider, Precious Cargo, was closing immediately, forcing families to find new childcare. 

One of the owners, Jake Giuliano, sent this press release to Patch after the closing:  

"We are sad to report that Precious Cargo Daycare and Learning Center of Branford has ceased operations as of June 1, 2012. Due to the economy and lack of staffing, we were unable to remain open. We owe a great deal of thanks and appreciation to all the families and children we served over the past 13 years and to all of our amazing employees who have helped to make our Branford center an integral part of the community."

In the aftermath of the closing, families were left to wonder how to recoup the funds they had paid for tuition and deposits with an investigation being opened by the Attorney General's office.

Last week, a settlement was filed in Superior Court and, according to a press release from the Attorney General's Office, "Precious Cargo will provide full consumer refunds to parents who lost deposits and prepaid tuition payments and has resolved outstanding tax liability to the state."

More information is included in the press release below:

Under the settlement, Precious Cargo and its owners will pay a total of $55,000 for consumer restitution, of which $30,000 has already been remitted to the state. The remaining $25,000 will be paid over two years.

Additionally, the defendants have paid $159,818 to the Department of Revenue Services to resolve outstanding claimed wage withholding tax liability to the state. 

“My office received dozens of complaints when this daycare center shut down last summer with little warning,” said Attorney General Jepsen.“While some consumers were able to get money back through their credit card companies, other parents – many of whom paid by cash or check – were left in the lurch for their prepaid services. This settlement provides for full refunds for those parents, and I’m very pleased we were able to reach this resolution. I’m grateful to the commissioners and their staff for their partnership in this matter, which helped produce a positive outcome for the affected families as well as Connecticut’s taxpayers.”

“Searching for quality child care at the last minute is troublesome enough for hard-working parents, but losing money on top of that was salt in the wound,” Commissioner Rubenstein said. “We are happy that our cooperative efforts served to ease the financial loss to the parents affected by this sudden closure.” 

“This is a great example of state agencies working together,” said Commissioner Sullivan. “These families put their trust and their hard-earned dollars on the line when they signed up for this child care. I’m glad we have been able to help and protect the interests of the state.”

Restitution will be distributed to consumers in two installments. Eligible consumers have been identified by the state and will be receiving a claim form with a cover letter explaining payment structure and requesting verification of the amount owed. Consumers who already received chargebacks through their credit card company are not eligible for additional restitution through this settlement. 

Per the settlement, Precious Cargo’s owners – Jacqueline DiFusco, Jake Giuliano, Kristine DeCarlo and John Giuliano – are enjoined from owning, operating or participating in the management or marketing of a daycare facility for five years. Additionally, they are prohibited from owning or operating a business where their names do not appear in the business’s trade name for five years.

The settlement is not considered final until approved by the court. Consumers will questions about this settlement can contact the Office of the Attorney General at 860-808-5400 or the Department of Consumer Protection at 800-842-2649.

Assistant Attorney General Thomas Saadi with the Office of the Attorney General’s Consumer Protection Department assisted the Attorney General with this matter.

Please click here to view the settlement document.

More on Precious Cargo's Closing

• Did You Lose Your Daycare Yesterday? (June 2, 2012)
• State Opens Inquiry Into Branford Daycare Center's Abrupt Closing (June 10, 2012)
• Precious Cargo Refugees Find a Safe Harbor (June 13, 2012)
• See Us Grow Daycare Scheduled to Open Jan. 7 (Jan. 2, 2013)