| DEBRA A. VALENTINE General Counsel THOMAS SYTA (CA Bar # 116286) SUZANNE CHYNOWETH (Arizona Bar #6835) IN THE UNITED STATES DISTRICT COURT FEDERAL TRADE COMMISSION, Plaintiff, vs. SOURCE ONE PUBLICATIONS, INC., and COURTNEY WIGGS, individually and as an officer of Source One Publications, Inc., Defendants. CV 99- PLAINTIFF'S APPLICATION FOR AN ORDER TO SHOW CAUSE WHY A PRELIMINARY INJUNCTION SHOULD NOT BE ENTERED AGAINST DEFENDANTS SOURCE, ONE PUBLICATIONS AND COURTNEY WIGGS, INCLUDING AN ASSET FREEZE AGAINST COURTNEY WIGGS Plaintiff, the Federal Trade Commission, having filed its complaint in this matter for a permanent injunction and other equitable relief, including restitution for consumers injured by defendant's unlawful practices, moves this Court for an Order to Show Cause Why a Preliminary Injunction Should Not Issue restraining the conduct of defendants Source One Publications, Inc. and Courtney Wiggs, and imposing an asset freeze as to defendant Courtney Wiggs. A proposed Preliminary Injunction has been filed concurrently. This Court is authorized to grant preliminary injunctive relief by Sections 13(b) and 19 of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 53(b) and 57b, the Telemarketing and Consumer Fraud and Abuse Prevention Act ("Telemarketing Act"), 15 U.S.C. §§ 6102(c), 6105(b), and Fed. R. Civ. P. 65. In support of its motion, plaintiff states that defendants have engaged and are likely to continue to engage in acts and practices that violate the FTC Act and the Telemarketing Sales Rule, 16 C.F.R. Part 310, et seq. Defendants's telemarketers have caused thousands of consumers to pay millions of dollars for their "credit card protection" services on the basis of scare tactics and flagrant misrepresentations about defendants' identity and consumers' liability for fraudulent charges to their credit cards. Ironically, these would-be protectors of consumers' credit card accounts routinely cram unauthorized charges for their services on the credit card accounts of consumers who refused to purchase from them. As set forth fully in Plaintiff's accompanying Memorandum of Points and Authorities, issuing a preliminary injunction will prevent defendants from continuing these practices and harming more consumers. Issuance of an asset freeze against Courtney Wiggs will protect her assets from dissipation during the duration of this lawsuit so that the assets can be made available for redress in the event the Commission prevails on the merits. Respectfully submitted, DATED:_____________________ ___________________________ SUZANNE CHYNOWETH Attorneys for Plaintiff |