Know Who You're Dealing With
Ernest Canelli IV: A Criminal Record Consumers Deserve to Know About
The owner of Factory Spas Direct, LLC pleaded guilty to two counts of forgery in the second degree in Dutchess County Court. This page presents publicly available court records and press reporting so consumers can make informed decisions.
Press & Arrest Records
Documented Criminal History: Press Reports
The following records are drawn from publicly available newspaper reporting by the Daily Freeman (Kingston, NY). They document the criminal investigation and arrests that preceded the 2013 guilty plea — including a five-month state police investigation that directly implicated his spa business.
Hyde Park Man Accused of Forgery Scheme — Factory New Spas Searched
December 21, 2011 · Daily Freeman (Kingston, NY)
Following a five-month investigation, state police charged Ernest Canelli, 42, of Hyde Park with forgery, scheme to defraud, possession of a weapon, and grand larceny — all felonies. Police said Canelli purchased motor vehicles from local dealers, took out loans on them, defaulted, then forged lien releases and sold the vehicles — including a Formula boat — before they could be repossessed, often pocketing cash from remaining equity. Search warrants were executed at his business, Factory New Spas, and at his residence. Police recovered computers and a firearm Canelli was not licensed to possess. Critically, police noted that during the investigation, several individuals came forward reporting they had paid for hot tubs and never received them. Additional complaints were described as outstanding and pending.
- Charges
- Forgery, scheme to defraud, possession of a weapon, grand larceny (all felonies)
- Bail set
- Not reported
- Key detail
- Search warrants executed at Factory New Spas; hot tub victims identified during investigation
Forgery Arrest — Hyde Park (DMV Title Fraud)
January 14, 2012 · Daily Freeman (Kingston, NY)
Ernest Canelli IV, of South Quaker Lane in Hyde Park, was arrested by state police in Rhinebeck and charged with forgery, a felony. According to police, Canelli listed another person's motorcycle for sale on Craigslist, met with state police undercover investigators, and forged the owner's name to the DMV title, forged a lien release stating the lender no longer had an interest in the motorcycle, and forged the owner's name to the DMV bill of sale. Canelli was arraigned and sent to the Dutchess County Jail in lieu of $150,000 cash or $300,000 bond.
- Charges
- Forgery (felony)
- Bail set
- $150,000 cash or $300,000 bond
- Key detail
- Undercover state police operation; forged DMV title, lien release, and bill of sale
These records are reproduced from publicly available newspaper reporting. They document the investigation and arrests that led to the March 2013 guilty plea in Dutchess County Court.
Court Record
Guilty Plea: Forgery in the Second Degree — Two Counts
Ernest Canelli IV pleaded guilty to two counts of forgery in the second degree in Dutchess County Court. Sentence affirmed on appeal, October 7, 2015. This is a matter of public court record — not an allegation.
Ernest Canelli IV, the owner and operator of Factory Spas Direct, LLC, pleaded guilty to two counts of forgery in the second degree in Dutchess County Court (Judge Forman). Judgment was rendered on March 7, 2013.
Canelli appealed the sentence. On October 7, 2015, the Appellate Division of the Supreme Court of New York affirmed the judgment, finding the sentence was not excessive. The case is People v. Canelli, Appellate Division, Second Department.
A guilty plea is a formal admission of criminal wrongdoing before a court of law. It is not an allegation or a civil dispute — it is a conviction on the record, affirmed by an appellate court.
Consumers who have been harmed by Factory Spas Direct, LLC should be aware of this background when evaluating their legal options and when filing complaints with regulators.
People v. Canelli
Appellate Division, Supreme Court of New York (Second Department)
Canelli pleaded guilty to two counts of forgery in the second degree. He was sentenced by Dutchess County Court on March 7, 2013. He appealed the sentence; the Appellate Division affirmed the judgment on October 7, 2015, finding the sentence was not excessive.
- Trial court
- County Court, Dutchess County (Judge Forman)
- Judgment
- March 7, 2013
- Appeal decided
- October 7, 2015
- Outcome
- Affirmed — sentence not excessive
New Development
Owner Relocates to Sint Maarten, Announces Caribbean Expansion
Public Facebook posts by Ernest Canelli IV document a timeline of relocation to Sint Maarten and the announced launch of a new business location there. Both posts are quoted verbatim below.
"Many people know that we have just bought full time residence in Sint. Marteen. Today we had some landscaping redone, planted a palm tree and a few tropical shrubs in pots near our entrance door. Awesome feeling living in the Caribbean. Things are so different, so simple, so pleasing. I am blessed to be building a life with my best friend, lover and wife. Marcy Canelli"
— Ernest Canelli IV, personal Facebook post, March 31, 2026
Establishes that Canelli had purchased a full-time residence in Sint Maarten by March 2026.
"The first of many things to come here in St. Martin — Factory Spas Direct of the Caribbean... "We are the pros at getting you into Hot Water" now in the Caribbean too!"
— Ernest Canelli IV, personal Facebook post, August 23, 2026
Announces the launch of "Factory Spas Direct of the Caribbean" — a new business location in St. Martin.
Consumers outside the United States should be aware that a business owner with a documented U.S. criminal conviction for forgery in the second degree is now operating or planning to operate in Sint Maarten / St. Martin. If you have been harmed by Factory Spas Direct in any location, the complaint resources on this site remain available to you.
Sources: Public Facebook posts by Ernest Canelli IV, dated March 31, 2026 and August 23, 2026. Quoted verbatim as posted.
File With the BBB
Report Factory Spas Direct, LLC to the Better Business Bureau
Factory Spas Direct, LLC currently holds an F rating — the lowest possible score — with the Better Business Bureau. This rating reflects a pattern of unresolved consumer complaints, failure to respond to the BBB, and a history of business practices that fall below acceptable standards.
The Better Business Bureau maintains a public record of consumer complaints against businesses. Filing a complaint with the BBB creates a documented, publicly visible record that other consumers can see — and that the BBB uses to calculate a business's rating.
Submit a formal complaint through the BBB's official complaint portal.
View the company's BBB profile, existing complaints, and current F rating.
Write a public review of your experience that appears on the BBB business profile.
Filing Tip
When filing with the BBB, select "Fraud" or "Deceptive Business Practices" as the complaint category. Include dates, dollar amounts, and all communications. Mention that the owner, Ernest Canelli IV, has a prior conviction for forgery in the second degree.
Types of Claims
What Category Does Your Complaint Fall Under?
Victims of Factory Spas Direct, LLC have reported a range of harms. Understanding which legal category applies to your situation helps you file more effectively — and strengthens the overall record against this company.
Fraud & Deceptive Practices
Misrepresentation of products, false advertising, bait-and-switch tactics, or any deliberate deception that caused you financial harm.
- Product described or advertised differently than what was delivered
- False claims about warranties, certifications, or specifications
- Charges made without authorization
Breach of Contract
When Factory Spas Direct, LLC failed to deliver what was promised in a written or verbal agreement — including delivery timelines, product specifications, refund policies, or warranty terms.
- Product never delivered after payment was accepted
- Refund promised but never issued
- Warranty service denied despite valid claim
Property Damage
Physical damage to your property caused by a defective product sold by Factory Spas Direct, LLC — including structural damage, water damage, electrical hazards, or injury resulting from a faulty spa or hot tub.
- Defective spa caused water damage to your home or deck
- Electrical malfunction created a safety hazard
- Structural failure of the product damaged surrounding property
Defamation — Slander & Libel
If Factory Spas Direct, LLC or its representatives made false statements of fact about you — verbally (slander) or in writing (libel) — that damaged your reputation, you may have a defamation claim.
- False written statements made about you in response to a negative review
- Verbal false accusations made to third parties
- Threats or intimidation designed to silence your complaint
Take Legal Action
New York State Legal Resources for Victims
If Factory Spas Direct, LLC operates in or has harmed consumers in New York, the following official state resources are available to you.
NYS Attorney General — File a Consumer Complaint
The New York State Attorney General's Bureau of Consumer Frauds and Protection investigates deceptive business practices, fraud, and consumer scams.
NYS Supreme Court — Civil Complaint Filing (NYSCEF)
The New York State Courts Electronic Filing system allows you to file civil court documents directly with the NYS Supreme Court. Consult an attorney before filing.
These links connect to official New York State government websites. This site is not affiliated with any government agency. Consult a licensed New York attorney before initiating legal proceedings.
Why This Matters
A Conviction for Forgery Is Relevant to Consumer Complaints
Pattern of Conduct
A conviction for forgery in the second degree is relevant context when regulators and law enforcement evaluate new consumer complaints. It establishes a documented pattern of dishonest dealing.
Regulatory Disclosure
When filing complaints with the FTC, BBB, or your state Attorney General, you may include information about the owner's criminal conviction as relevant background.
Due Diligence for Consumers
Anyone considering a purchase from Factory Spas Direct, LLC should know that its owner was convicted of forgery in the second degree before doing business with the company.
Legal Proceedings
If you are pursuing civil remedies, your attorney may find the owner's criminal conviction relevant to establishing intent and credibility.
A Note on Sources & Accuracy
The conviction information on this page is sourced from a published appellate court opinion: People v. Canelli, Appellate Division, Supreme Court of New York, decided October 7, 2015. Press records are sourced from the Daily Freeman (Kingston, NY). The Sint Maarten relocation and Caribbean expansion information is sourced from public Facebook posts by Ernest Canelli IV, dated March 31, 2026 and August 23, 2026.
If you have additional documentation, court records, or news coverage related to Ernest Canelli IV's criminal history, please submit it through our complaint form.
This page does not constitute legal advice. Consult a licensed attorney in your state for guidance specific to your situation.
Armed with this information? File your complaint now.
Reference the owner's criminal conviction when submitting to the FTC, BBB, and your state Attorney General.