BBB Business Review




This Business is not BBB accredited

Maxwell Gates Enterprises

Additional Locations 88 E Main St Ste H # 433, Mendham, NJ 07945


On a scale of A+ to F Reason for Rating BBB Ratings System Overview

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Description

This company offers business opportunities.

BBB Accreditation

This business is not BBB accredited.
Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.
To be accredited by BBB, a business must apply for accreditation and BBB must determine that the business meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses must pay a fee for accreditation review/monitoring and for support of BBB services to the public.

Reason for Rating

BBB rating is based on 16 factors. Get the details about the factors considered.
Factors that lowered the rating for Maxwell Gates Enterprises include:

  • BBB concerns with the industry in which this business operates
  • 156 complaints filed against business
  • Failure to respond to 87 complaints filed against business
  • 8 complaints filed against business that were not resolved
  • Overall complaint history with BBB
  • Length of time business has taken to resolve complaint(s)
  • Government action(s) against business


Customer Complaints Summary Read complaint details

156 complaints closed with BBB in last 3 years | 93 closed in last 12 months

Complaint Type Total Closed Complaints
Advertising/Sales Issues 69
Billing/Collection Issues 2
Delivery Issues 19
Guarantee/Warranty Issues 8
Problems with Product/Service 58
Total Closed Complaints 156
Read Complaints | Definitions | BBB Complaint Process | File a Complaint against Maxwell Gates Enterprises
See Trends in Complaints on Maxwell Gates Enterprises | View Complaints Summary by Type Pie Chart on Maxwell Gates Enterprises



  • Government Actions

    Final Consent Judgment
    Date of Action: 10/7/2013
    The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

    On October 7, 2013, Acting Attorney General John J. Hoffman and the New Jersey Division of Consumer Affairs announced a $130,000 settlement with a Mendham-based company the State sued as part of “Operation Empty Promises,” a nationwide crackdown on work-at-home scams.

    David Brookman and his company, Capital Enterprises, Inc., lured consumers through ads that promised, “Get Paid From Mailing Our Special Letters From Home! Potential Earnings Of Up To $5,000 Or More Weekly!”

    The State’s investigation revealed that Brookman and his company never fulfilled that promise. The State found that, of Brookman’s approximately 13,000 customers, only 45 – less than 1 percent – ever made more than $100 from the envelope stuffing program. Approximately 11,000 made no money at all. The most any consumer ever made from Brookman’s work-from-home scheme was $520 over a 10-month period. According to the State’s lawsuit against Brookman, consumers who signed up for the work-at-home program had to pay a registration fee. After paying the fee, they found the terms and conditions substantially changed, often including a requirement to make further payments.

    The State’s five-count lawsuit, filed by the Division of Law in State Superior Court in Essex County and transferred to Morris County, alleged that Brookman and his company, Capital Enterprises, Inc., violated the New Jersey Consumer Fraud Act by engaging in unconscionable commercial practices, deception, false promises, and misrepresentations, as well as bait-and-switch tactics, in their advertisement and sale of work-at-home programs. Brookman also conducted business under the names Maxwell Scott Enterprises, Maxwell Scott, David Gates Enterprises, Warner Daniel, and Preston Lord Enterprises.

    Under the settlement, Brookman and his company will pay $130,000 which includes $66,712 in civil penalties and $63,288 reimbursement of the State’s attorneys’ fees and investigative costs. Brookman will pay the initial $50,000 within 10 days of the settlement, and the rest in quarterly installments of $10,000.

    Also under the terms of the settlement, Brookman is permanently enjoined from advertising or selling work-from-home or direct-mail or similar programs in New Jersey or directed to New Jersey residents. For the next 10 years, Brookman shall not form any business in New Jersey, or advertise the sale of any merchandise, without posting a bond of $250,000, and providing the State with specific information about the business.

    What government actions does BBB report on?
  • Advertising Review

    BBB has nothing to report concerning Maxwell Gates Enterprises's advertising at this time.
    What is BBB Advertising Review?



Additional Information

top BBB file opened: January 24, 2011 Business started: 04/01/2008 in NJ Business incorporated: 04/01/2008 in 0 Contact Information

Customer Contact: Mr. David Gates, President
Business Category

Work-At-Home Companies Business Opportunity Companies

Alternate Business Names

Capital Enterprises, Inc. David Gates Inc. Gordon James Enterprises Maxwell Scott Enterprises Preston Lord Enterprises Warner Daniel Enterprises Additional Information


Starting December 2012 the BBB received several calls alleging non delivery of materials by Preston Lord Enterprises after the initial payments were sent to the company. The BBB asked the consumers to provide a written copy of their disputes.
Preston Lord Enterprises responded to complaints filed with the BBB stating that the materials were sent to the consumers. Those complaints were closed as resolved. Additional complaints alleged that after the initial package was received a new letter disclosed that one had to continue paying for more leads at half of the initial start-up fee. The company responded by referring to the terms set out in the company letters and advises customers to read carefully what was provided.
The BBB advises consumers seeking any work at home jobs to ask the program sponsor to list every step of the job and to ask if the pay is based on client response (commission). Additional information about the expenses incurred, including supplies, additional fees should also obtained.


Better Business Bureau, New Jersey