FTC v. David L. Amkraut - Stipulated FInal Judgement

STEPHEN CALKINS
General Counsel

HEATHER HIPPSLEY
DANA J. LESEMANN
Federal Trade Commission
6th St. and Penn. Ave., N.W.
Washington, D.C. 20580
(202) 326-3285; -3146

THOMAS J. SYTA
Federal Trade Commission
11000 Wilshire Boulevard, Suite 13209
Los Angeles, CA 90024
(310) 575-7890
Attorneys for Plaintiff

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

FEDERAL TRADE COMMISSION, Plaintiff

DAVID L. AMKRAUT, individually and doing business as
LAW OFFICES OF DAVID L. AMKRAUT, Defendant.

Civ.
STIPULATED FINAL JUDGMENT AND ORDER FOR PERMANENT INJUNCTION AND OTHER EQUITABLE RELIEF

On ________, 1997, Plaintiff, Federal Trade Commission ("Commission"), filed its Complaint seeking a permanent injunction and redress for injured consumers, pursuant to Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. 53(b).

The Commission and defendant David L. Amkraut, individually and doing business as Law Offices of David L. Amkraut ("Amkraut"), have stipulated to the entry of the following Final Judgment and Order in settlement of the Commission's complaint against him, and the Court, being advised in the premises, finds:

This is an action by the Commission instituted under Sections 5 and 13(b) of the Federal Trade Commission Act, 15 U.S.C. 45 and 53(b) ("FTC Act"). The complaint seeks permanent injunctive relief and redress for allegedly injured consumers for alleged unfair or deceptive acts or practices by defendant in the promotion and sale of certain services to consumers in connection with the distribution of applications for immigrant visas and permanent residence visas (hereinafter "green cards") in the United States through the diversity visa program (hereinafter "green card lottery").
This Court has jurisdiction of the subject matter of this case and jurisdiction over all parties hereto. Venue in the Central District of California is proper.
The activities of the defendant are in or affecting commerce, as defined in 15 U.S.C. 44.
The Commission alleges that, from at least January, 1992, and continuing until this day, defendant has maintained a substantial course of trade in the sale of services in connection with the green card lottery ("green card lottery services"); that defendant marketed green card lottery services throughout the United States and the world by placement of advertisements both in the United States and abroad, and dissemination of promotional materials via United States mail.
The Commission has the authority under Section 13(b) of the FTC Act to seek the relief it has requested, and the Complaint states a claim upon which relief may be granted.
Defendant does not admit, and emphatically denies, the Commission's allegations and nothing herein shall be construed as an admission or finding of liability or misrepresentation by defendant.
Defendant, for the purposes of settling the Commission's Complaint against him, agrees to entry of this Final Judgment and Order for Permanent Injunction under Section 13(b) of the FTC Act.
This action and the relief awarded herein are in addition to, and not in lieu of, other remedies as may be provided by law, including both civil and criminal remedies, except that this action and the relief awarded herein constitute a final settlement, with respect to activities of defendant as of this date, between the Commission and defendant.
Defendant waives any claim that he may have under the Equal Access to Justice Act, 28 U.S.C. 2412, concerning the prosecution of this action to the date of this Order.
Entry of this Order is in the public interest.

ORDER

DEFINITIONS

A. "Defendant" shall mean David L. Amkraut, individually and doing business as Law Offices of David L. Amkraut.
: B. "Green card lottery" shall mean the process by which the National Visa Center ("NVC") randomly selects individuals to apply for immigrant visas through the diversity visa program.; C. "Entries" shall mean the document(s) submitted by defendant to the NVC to enter individuals in the green card lottery.; D. "Winner" shall mean any individual selected by the NVC through the green card lottery to receive the opportunity to apply for an immigrant visa.; E. "Applications" shall mean the documents filed to obtain immigrant or non-immigrant visas.; F. "Green card lottery services" shall mean any service rendered in connection with the green card lottery, including but not limited to the preparation and submission of entries to the green card lottery, the notification of green card lottery winners, and the preparation and submission of applications for immigrant visas on behalf of green card lottery winners.

PROHIBITIONS ON MISREPRESENTATIONS AND UNFAIR PRACTICES

II.

IT IS HEREBY ORDERED that, in connection with the promotion, advertising, marketing, sale, offering for sale, or providing of green card lottery services, or the provision of any other immigrant or nonimmigrant visa services offered through the use of direct marketing defendant and his officers, directors, agents, servants, employees, salespersons, attorneys, corporations, subsidiaries, affiliates, successors, and assigns; other entities or persons directly or indirectly under his control; and all persons or entities in active concert or participation with him, who receive actual notice of this Order by personal service, facsimile or otherwise, are hereby permanently restrained and enjoined from:

A. Misrepresenting, directly or by implication, that there is a special application or form to enter the green card lottery, including, but not limited to, misrepresenting that there are formal papers called "Registrations" that must be written and filed with the U.S. State Department in order to enter the green card lottery;
: B. Misrepresenting, directly or by implication, that (1) entries and applications submitted through defendant's services satisfy the technical requirements set by the State Department; and (2) that no entry or application filed through defendant's services has ever been rejected by the State Department; however, nothing herein shall preclude defendant from truthfully describing his background, knowledge, and experience as an immigration attorney, his knowledge of and experience in the field of immigration law, and truthfully stating that he will use his best efforts and/or attempts, or will try to assure that the entries or applications are prepared, filed, or processed correctly;; C. Misrepresenting, directly or by implication, that (1) after an entry has passed the screening process and has made it into the green card lottery drawing, defendant can increase a consumer's chances of being selected as a winner in the drawing; (2) defendant's knowledge of immigration law increases the chances that a consumer's entry will be selected after the entry has been registered and is in the green card lottery drawing; (3) defendant has hidden ways to increase a consumer's winning chances in the green card lottery drawing; (4) defendant can use his knowledge of "loopholes" in the lottery procedure to increase a consumer's chances of being selected in the green card lottery drawing; and (5) U.S. consulates will not offer individual help in applying for immigrant or nonimmigrant visas;; D. Misrepresenting, directly or by implication, defendant's success in obtaining green cards among consumers who use his services, including but not limited to the rate and numbers of winners in the green card lottery for consumers who use his services; providing, directly or indirectly, any success rates for defendant's services offered in the green card lotteries conducted in fiscal years (FY) 1993, 1994, 1995, and 1996; however, nothing in this provision shall: (1) preclude defendant from providing a success rate for the FY 1992 lottery, provided that defendant includes the following disclosure verbatim: "The FY 1992 lottery held in October, 1991, was substantially different from subsequent lotteries because the FY 1992 lottery allowed individuals to submit multiple entries to increase their chance of being selected as a winner; currently, however, entrants are permitted to submit only a single entry," and (2) prohibit defendant from accurately representing his rate of success for the FY 1997 green card lottery or any future green card lotteries, provided that (a) defendant calculates such success rates in terms of the number of entries submitted by defendant that were actually selected by the State Department as "winning entries"; (b) defendant does not include within such success rates any members of the consumer's family who are not selected as "winning entries"; and (c) in calculating any comparisons between or among success rates, defendant shall compare only analogous methodologies or formulas;; E. Misrepresenting, directly or by implication, that certain promotional material distributed to consumers are reprints of independent newspaper articles, including, but not limited to, misrepresenting that the promotional material produced by or under the direction of defendant's employees are articles by independent authors, journalists, or reporters. Nothing herein shall prohibit defendant from preparing press releases, authored by defendant or his agents or employees, submitting them to publications, and from thereafter reproducing them as promotional materials in exactly the form published, except that if payment is made to have such press releases published, then the reprints must demonstrate that is a "paid advertisement" in the form typically used by publications to designate paid advertisements;; F. Misrepresenting, directly or by implication, that defendant is a member of the American Immigration Lawyers Association or any other professional association or organization;; G. Misrepresenting, directly or by implication, that defendant can verify that an entry has been registered in the green card lottery, except that nothing herein shall preclude defendant from truthfully stating that an entry has been prepared and/or sent to the NVC, or from providing proof of mailing or a receipt such as a proof of mailing certificate or a certified mail receipt;; H. Misrepresenting, directly or by implication, any other fact material to a consumer's decision to purchase any of defendant's green card lottery services;; I. Assisting others in making, directly or by implication, any false or misleading oral or written statement or representation enumerated in subparts A-H of this Paragraph;; J. Knowingly failing to comply with all State Department regulations or standard operating practices or procedures for green card lottery entries or applications for immigrant or nonimmigrant visas offered through the use of direct marketing by defendant, including but not limited to submitting multiple entries to the green card lottery on behalf of consumers who purchase defendant's green card lottery services.

AFFIRMATIVE DISCLOSURE

III.

IT IS FURTHER ORDERED that, in connection with the promotion, advertising, marketing, sale, offering for sale, or providing of green card lottery services or any other immigrant or nonimmigrant visa services offered through the use of direct marketing, defendant and his officers, directors, agents, servants, employees, salespersons, attorneys, corporations, subsidiaries, affiliates, successors, and assigns; other entities or persons directly or indirectly under his control; and all persons or entities in active concert or participation with him, who receive actual notice of this Order by personal service, facsimile or otherwise, shall:

A. Set forth on all newspaper advertisements and at least one constituent document of any direct mail package used to solicit payment fromthe inquirer to employ defendant's green card lottery services the following disclosure: "This is a lottery. Entries must be correctly prepared and sent, or they are disqualified. Entries that qualify are then selected randomly. Being a 'winner' means you can apply for a limited number of green cards. Being a 'winner' does not guarantee that you will get a green card. You may have to pay additional money to the U.S. State Department to apply for the green card. If you are a 'winner', we will write you within five (5) business days after we receive notice from the State Department. You can then apply for the green card on your own or can hire our firm to do the work at an additional fee.";
: B. Set forth the required disclosure in a clear and conspicuous manner, separated from all other text, in 100% black ink against a light background, in ten (10) point or larger print, enclosed in a box containing only the required disclosure, and in the same language used in the promotional material or document, except that in a newspaper advertisement, the disclosure may be in the same type size as the text (body copy) of the advertisement.

NOTIFICATION OF WINNERS

IV.

IT IS FURTHER ORDERED that, in connection with the promotion, advertising, marketing, sale, offering for sale, or providing of green card lottery services, defendant and his officers, directors, agents, servants, employees, salespersons, attorneys, corporations, subsidiaries, affiliates, successors, and assigns; other entities or persons directly or indirectly under his control; and all persons or entities in active concert or participation with him, who receive actual notice of this Order by personal service, facsimile or otherwise, shall:

A. If defendant receives notification from the State Department that an individual who has purchased defendant's green card lottery services has been selected as a "winner," defendant shall send a notice within five (5) business days, by first class mail, postage prepaid, to the winning individual indicating that he or she has been selected as a "winner." In notifying the individual that he or she has been selected as a "winner," the "winner" shall be informed that he or she can hire defendant to continue the green card application process at an additional fee of $[his then current fee] or can have defendant send the application forms to the consumer so that the consumer can apply for the green card on his or her own. Defendant shall include with the winner notification letter either:
: (1) A pre-addressed postcard providing an area where the winner can indicate whether he or she wishes to hire defendant or receive the application form to apply on his or her own. The text on the postcard shall be in ten (10) point or larger print and be in the same language as used in the notification materials. The postcard must include either pre-paid postage or a pre-paid international reply coupon; or; (2) A pre-addressed return envelope either postage prepaid or with an international reply coupon, and a form or forms on which the winner can indicate whether he or she wishes to hire defendant or receive the application forms to apply on his or her own. The text on the form or forms shall be ten (10) point or larger print, and be in the same language as used in the notification materials.
: B. Within five (5) business days of receiving a response from the "winner" -- either by postcard, letter, telephone, facsimile, or any other means -- indicating that the "winner" wants to receive the application forms, defendant shall send the application forms provided for the "winner" by the State Department. Nothing herein shall require defendant to do any work on such immigrant visa application unless hired to do so by the "winner" in writing.

CONSUMER REDRESS

IT IS FURTHER ORDERED that, no later than ten (10) days following the publication of the Federal Register Notice announcing the application procedures for the FY 1998 green card lottery, defendant shall make all reasonable efforts to contact consumers who paid defendant to be entered in the FY 1995 and/or FY 1996 green card lotteries and who were not selected as green card lottery "winners," and shall offer those consumers the opportunity to enter the FY 1998 lottery at no charge according to the following formula:

A. Any consumer who paid defendant to be entered in either the FY 1995 green card lottery or the FY 1996 green card lottery shall be provided one free entry for the FY 1998 lottery. If the consumer paid defendant $50 for an individual entry, the individual consumer shall be entered in the FY 1998 green card lottery at no charge. If the consumer paid defendant $75 to enter his/her family in the FY 1995 or FY 1996 green card lottery, the consumer and his/her family shall be entered in the FY 1998 green card lottery at no charge.
: B. Any consumer who paid defendant to enter both the FY 1995 and the FY 1996 lotteries shall receive two free entries for the FY 1998 lottery, for either individuals and/or families, depending on the type of service purchased by the consumer in the FY 1995 and FY 1996 lotteries.; C. In the mailing notifying consumers that they are eligible for redress under Paragraph V(A) above, defendant shall include verbatim the Notice attached in Attachment Two to this Order.; D. In the mailing notifying consumers that they are eligible for redress under Paragraph V(B) above, defendant shall include verbatim the Notice attached in Attachment Three to this Order.

FINANCIAL DISCLOSURE REQUIREMENTS

VI.

IT IS FURTHER ORDERED that, within fifteen (15) calendar days after the entry of this Order, defendant shall submit to the Commission a sworn Financial Statement that shall provide a detailed accounting of the assets and liabilities of defendant as of the date of the entry of this Order.

VII.

IT IS FURTHER ORDERED that the Court's approval of this Order is expressly premised upon the financial condition of defendant as represented by him in his Preliminary Financial Statement submitted on February 15, 1996, which contains material information upon which the Commission has relied in negotiating and agreeing to the terms of this Order. If, upon motion by the Commission, this Court finds that defendant failed to submit to the Commission the sworn Financial Statement required by Paragraph VI above, or that his Preliminary Financial Statement failed to disclose any material asset, materially misrepresented the value of any material asset, or made any other material misrepresentation in or omission from said Preliminary Financial Statement, the Commission may request that the Final Judgment be reopened to modify the extent of liability of defendant; provided, however, that in all other respects this Order shall remain in full force and effect and, solely for the purposes of this Paragraph, defendant waives any right to contest any of the allegations of the Commission's Complaint; and provided further, that proceedings instituted under this paragraph are in addition to and not in lieu of any other civil or criminal remedies as may be provided by law, including any other proceedings the Commission may initiate to enforce this Order.

PRESERVATION OF RECORDS

VIII.

IT IS FURTHER ORDERED that, in connection with the promotion, advertising, marketing, sale, offering for sale, or providing of green card lottery services, or the provision of any other immigrant or nonimmigrant visa services offered through the use of direct marketing:

A. Defendant is hereby restrained and enjoined, for a period of three (3) years from the date of entry of this Order, from failing to keep at least one (1) sample copy of each and every form of promotional material, including, but not limited to,

1. advertisements in newspapers, magazines or periodicals;
: 2. solicitation letters, leaflets, flyers, pamphlets or brochures;; 3. on-site promotional displays or literature;; 4. a print-out of all screens displayed in any advertisement on any on-line computer service or network, which shall identify the on-line site, forum or address;; 5. written scripts of radio advertisements;; 6. VHS videotape cassettes and written scripts or photoboards of television advertisements;; 7. any other items mailed or distributed to consumers;; 8. and any other documents that pertain to the subject matter of this lawsuit;

B. Defendant and his officers, directors, agents, servants, employees, salespersons, attorneys, corporations, subsidiaries, affiliates, successors, and assigns; other entities or persons directly or indirectly under his control; and all persons or entities in active concert or participation with him, who receive actual notice of this Order by personal service, facsimile or otherwise, are hereby restrained and enjoined, for a period of three (3) years from the date of entry of this Order, from destroying, mutilating, changing, concealing, altering, transferring, or otherwise disposing of, in any manner, directly or indirectly, any records, whether in writing, in computer-maintained form, or in any other form, that defendant is required to keep by subparagraph (A), except that defendant may maintain a "hard copy" of a computerized record that is required to be kept by reason of subparagraph (A) in place of that computerized record. Nothing herein shall require defendant to disclose materials that are protected by any recognized Federal privilege or constitutional right, including but not limited to the attorney-client privilege.

C. The provisions of this paragraph shall not prohibit compliance with legal process, including subpoenas and other legal requests to produce documents, but does require that, if such documents are subpoenaed by a non-governmental entity, any person producing such documents shall retain complete copies of all documents produced.

EMPLOYEE NOTIFICATION

IX.

IT IS FURTHER ORDERED that within ten (10) calendar days following the date of entry of this Order, defendant shall provide a copy of this Order to each of his officers, directors, managing agents, supervisory employees, divisions, subsidiaries, corporations, affiliates, successors, independent contractors or consultants involved in the provision of green card lottery services or the provision of any other immigrant or nonimmigrant visa services offered through the use of direct marketing by defendant, and obtain a signed receipt therefor. Further, for a period of three (3) years from the date of entry of this Order, defendant shall provide a copy of said Order to every such officer, director, managing agent, supervisory employee, division, subsidiary, corporation, affiliate, successor, independent contractor or consultant of defendant involved in the provision of green card lottery services or the provision of any other immigrant or nonimmigrant visa services offered through the use of direct marketing by defendant, within fifteen (15) calendar days of the commencement of such relationship, and obtain a signed receipt therefor. Provided, however, that this Paragraph shall not require defendant to provide a copy of this Order to any independent contractor who performs a purely non-discretionary function, including, but not limited to, printers, mail processors, and typesetters.

MONITORING PROVISIONS

IT IS FURTHER ORDERED that defendant shall notify the Commission within thirty (30) days of the effective date of any change in his status, organization, or structure, such as dissolution, assignment, or sale of his business, that may affect any compliance obligations arising from this Order.

For the purposes of this Order, all written notifications to the Commission shall be mailed to:

Associate Director for Service
Industry Practices
Room 200
Federal Trade Commission
Washington, D.C. 20580

XI.

IT IS FURTHER ORDERED that, for the purpose of further determining or securing compliance with this Order, and subject to any recognized Federal privilege or constitutional right, including but not limited to the attorney-client privilege, defendant shall:

A. Notify the Commission, at least seven (7) days prior to mailing the redress notification letters as specified in Part V of the Order, of the location of the independent mail processing service and arrange for duly authorized representatives of the Commission to inspect the mail pieces at that location prior to mailing; and for a period of three (3) years after the date of entry of this Order:

B. Permit duly authorized representatives of the Commission, within ten (10) business days of receipt of written notice from the Commission, access during normal business hours to any office which he controls (and/or to the offices of any company or any person under his control), which is involved in the provision of green card lottery services or the provision of any other immigrant or nonimmigrant visa services offered through the use of direct marketing, to inspect and copy defendant's documents and all documents of any business entity owned or controlled by defendant, limited to any matters contained in this Order, provided that defendant or any such company or person each may have counsel present; and

C. Not obstruct duly authorized representatives of the Commission, within ten (10) business days of receipt of written notice from the Commission, from interviewing employees involved in the provision of green card lottery services or the provision of any other immigrant or nonimmigrant visa services offered through the use of direct marketing, regarding any matter covered by this Order, provided that defendant or any such company or person may have counsel present.

D. Nothing in Paragraph XI shall limit the Commission's use of any law enforcement tool as provided by law, nor shall it constitute a waiver by defendant of any recognized Federal privilege or constitutional right, including but not limited to the attorney-client privilege, constitutional right, or other lawful basis for withholding documents or information or objecting to the production of documents or information.

XII.

IT IS FURTHER ORDERED that defendant shall notify the Commission in writing, within ten (10) calendar days after the date of entry of this Order, of his current residence and business address and employment status, including the names and business addresses of his current employers, and shall inform the Commission in writing within thirty (30) calendar days of any changes in business address or employment status, for a period of three (3) years after the date of entry of this Order, so that compliance with the provisions of this Order can be monitored.

COMPLIANCE REPORTS

XIII.

IT IS FURTHER ORDERED that for the purpose of further determining or securing compliance with this Order, defendant shall, in accordance with the provisions set out in Attachment One to this Order, file with the Commission reports, in writing, setting forth in detail the manner and form in which defendant has complied with this Order.

RETENTION OF JURISDICTION

XIV.

IT IS FURTHER ORDERED that the Court retains jurisdiction of this matter for purposes of construction, modification and enforcement of this Final Judgment and Order for Permanent Injunction.

IT IS SO ORDERED.

Dated:_____________

________________________________
UNITED STATES DISTRICT JUDGE

ATTACHMENT ONE - COMPLIANCE REPORTS

The compliance reports required by Paragraph XIII of the Order must demonstrate full compliance with each paragraph of the Order and be filed in accordance with the dates specified below. The report should follow the Order, paragraph by paragraph, explaining how each requirement has been met. Attach documentary exhibits to the report supporting all of its explanations. These exhibits should include all materials used, issued, developed or disseminated since the date of the Order that relate to the promotion, advertisement, sale, or offering for sale of any service in connection with the green card lottery.

1. Within one hundred twenty (120) days of the entry of this Order, document the steps that defendant has taken to ensure that no misrepresentations prohibited by Part II of the Order are made. Specifically, the report and attached exhibits should provide, at a minimum, the following materials and explanations:

A. At least one (1) sample copy of each and every form of promotional material, including, but not limited to,

(i) advertisements in newspapers, magazines or periodicals;

(ii) solicitation letters, leaflets, flyers, pamphlets or brochures;

(iii) on-site promotional displays or literature;

(iv) on-line computer services or networks (provide a print-out of all screens displayed in the advertisement and identify the on-line site, forum or address);

(v) written scripts for each radio advertisement;

(vi) VHS videotape cassette and written script or photoboard for each television advertisement;

(vi) and any other items mailed or distributed to consumers;

: B. Copies of all information, instructions, scripts and other such materials furnished to defendant's officers, agents, representatives, employees, and independent contractors to be used after the date of this Order in connection with the advertising, promotion, offering for sale, or sale of any green card lottery services. However, nothing herein shall require defendant to disclose any materials protected by the attorney-client privilege or any federally-recognized privilege.

2. Within one hundred twenty (120) days of the entry of this Order, document the quality control measures taken by defendant to ensure that green card lottery entries and immigrant visa applications subject to this Order are prepared and filed correctly in accordance with Part II(J).

3. Within one hundred twenty (120) days of the entry of this Order, document the steps that defendant has taken to ensure that the affirmative disclosure required by Part III of the Order is included in the specified materials.

4. Within one hundred twenty (120) days of the entry of this Order, document the steps taken by defendant to preserve the records specified in Part VIII of the Order, including a description of the procedures that have been instituted to ensure such record preservation.

5. Within one hundred twenty (120) days of the entry of this Order, document the steps taken by defendant to comply with Part IX of the Order, including the identities of persons and entities to whom a copy of the Order has been distributed.

6. Within sixty (60) days of the close of the FY 1998 green card lottery entry period, document that defendant has notified FY 1997 green card lottery winners and produced the required materials to them in the manner specified by Part IV of the Order.

7. Within sixty (60) days of the close of the FY 1998 green card lottery entry period, document that defendant has provided consumer redress as specified in Part V of the Order, including an affidavit from the third party mailer attesting to the number of redress notification letters mailed, the dates(s) the letters were mailed, and attaching the form letter enclosed in each mailing, and including an affidavit from defendant providing an accounting of the number of consumers who replied to the redress notification letter and participated in the redress program, the number of redress participant lottery entries mailed to the NVC, and the date(s) of mailing.

8 Within one year of the entry of this Order, account for the number of participants in the redress program specified in Part V of this Order who were selected as winners in the FY 1998 green card lottery program and document that defendant has notified them and produced the required materials to them in the manner specified by Part IV of this Order.

All exhibits attached to the compliance reports should be individually numbered and referenced in a table of contents. A request for confidentiality should identify with particularity each part of the submission for which confidentiality is claimed, and a justification should be given for each such part. If any request for confidentiality is made, a second version of your submission should be provided from which the confidential material has been properly redacted.

The compliance report must be signed and sworn to or affirmed by the defendant or a representative or agent authorized to do so on the defendant's behalf, before a notary public or other person authorized to administer oaths.

The compliance reports, and their attached exhibits, should be mailed to:

Associate Director for Service
Industry Practices
Room 200
Federal Trade Commission
Washington, D.C. 20580

by the dates specified in this Attachment.

ATTACHMENT TWO - CONSUMER REDRESS
NOTIFICATION LETTER FOR PARAGRAPH V(A)

The Notice required by Paragraph V(A) of the Order shall state as follows:

"Dear Consumer:

The purpose of this letter is to notify you that you are eligible to receive free green card lottery services because you used the Law Offices of David L. Amkraut to enter you in the March, 1994 or March, 1995 green card lottery.

The Federal Trade Commission, an agency of the United States government, alleged that the firm made misleading statements to consumers in order to persuade them to pay to be entered in the green card lottery.

The Law Offices of David L. Amkraut does not admit that it has engaged in any wrongdoing and denies the allegations. However, in order to settle this matter, the law firm has agreed to offer to everyone who paid the firm to enter them in the March, 1994 and March, 1995 green card lotteries the opportunity to be entered in the March 1997 green card lottery for free. Because you paid to have your lottery entry prepared by the firm in either the March, 1994 or March, 1995 lottery, you are eligible to have one entry in the March, 1997 lottery prepared by the firm for you for free. Please note that you can only enter the lottery once. Multiple entries are not allowed and will be disqualified. If you accept this offer, you cannot enter the March, 1997 green card lottery through any other service or by yourself.

In order to accept this offer and have your entry prepared and submitted in the March, 1997 green card lottery at no cost, you must complete the enclosed entry form and return it to the Law Offices of David L. Amkraut by no later than [Date]. Your entry will then be prepared and submitted to the National Visa Center for processing in the March, 1997 green card lottery. Please inform the firm if you move or change your mailing address.

Green card lottery 'winners' are selected randomly from among those entries that are prepared and submitted properly. Being a 'winner' means you can apply for a limited number of green cards. Being a 'winner' does not guarantee that you will get a green card. You may have to pay additional money to the U.S. State Department to apply for the green card. If you are a 'winner', the Law Offices of David L. Amkraut will write you within five (5) business days after they have been notified by the State Department that you have been selected. You can then apply for the green card on your own or you can hire the law firm to do the work at an additional fee of $___."

____________

Defendant shall set forth the required Notification Letter in a clear and conspicuous manner, in 100% black ink against a light background, in ten (10) point or larger print, on a separate sheet of paper, and in the same language as that used in the remainder of the materials sent to the consumer.

ATTACHMENT THREE - CONSUMER REDRESS
NOTIFICATION LETTER FOR PARAGRAPH V(B)

The Notice required by Paragraph V(B) of the Order shall state as follows:

"Dear Consumer:

The purpose of this letter is to notify you that you are eligible to receive free green card lottery services because you used the Law Offices of David L. Amkraut to enter you in the March, 1994 and March, 1995 green card lotteries.

The Federal Trade Commission, an agency of the United States government, alleged that the firm made misleading statements to consumers in order to persuade them to pay to be entered in the green card lottery.

The Law Offices of David L. Amkraut does not admit that it has engaged in any wrongdoing and denies the allegations. However, in order to settle this matter, the law firm has agreed to offer to everyone who paid the firm to enter them in the March, 1994 and March, 1995 green card lotteries the opportunity to be entered in the March 1997 green card lottery for free. Because you paid to have your lottery entry prepared by the firm in both the March, 1994 and March, 1995 lotteries, you are eligible to have two entries in the March, 1997 lottery prepared by the firm for free -- one for you (which would include your husband or wife, and your unmarried children under the age of 21) and one for a relative or a friend. Please note that you can only enter the lottery once. Multiple entries are not allowed and will be disqualified. If you accept this offer, you cannot enter the March, 1997 green card lottery through any other service or by yourself.

In order to accept this offer and have your entry prepared and submitted in the March, 1997 green card lottery at no cost, you must complete the enclosed entry forms and return them to the Law Offices of David L. Amkraut by no later than [Date]. The entries for you and a friend will then be prepared and submitted to the National Visa Center for processing in the March, 1997 green card lottery. Please inform the firm if you move or change your mailing address.

Green card lottery 'winners' are selected randomly from among those entries that are prepared and submitted properly. Being a 'winner' means you can apply for a limited number of green cards. Being a 'winner' does not guarantee that you will get a green card. You may have to pay additional money to the U.S. State Department to apply for the green card. If you are a 'winner', the Law Offices of David L. Amkraut will write you within five (5) business days after they have been notified by the State Department that you have been selected. You can then apply for the green card on your own or you can hire the law firm to do the work at an additional fee of $___."

_____________

The parties hereby stipulate and agree to entry of the foregoing Order, including Attachments, which shall constitute a final judgment in this action. Defendant hereby waives any claim they may have under the Equal Access to Justice Act, 28 U.S.C. 2412, concerning the prosecution of this action through the date of this Order.

Dated:_________________

_______________________________
David L. Amkraut
Defendant

Dated:_________________

_______________________________
Heather Hippsley
Dana J. Lesemann
Attorneys for Plaintiff
Federal Trade Commission

As to form only:

Dated:_________________

_______________________________
Charles F. Abbott
Attorney for Defendant
David L. Amkraut