GARY L. IVENS
RUSSELL S. DEITCH, Cal. Bar No. 138713
JAMES A. KAMINSKI
Federal Trade Commission
6th Street at Pennsylvania Ave., NW, Rm. 238
Washington, DC 20580
Telephone Numbers: (202)326-2330, (202) 326-2585
Facsimile Number: (202) 326-3395

JOHN JACOBS Cal. Bar No. 134154
Federal Trade Commission
10877 Wilshire Blvd., Ste. 700
Los Angeles, CA 90024
Telephone Number: (310) 824-4343
Facsimile Number: (310) 824-4380

Attorneys for Plaintiff
FEDERAL TRADE COMMISSION

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION

FEDERAL TRADE COMMISSION, Plaintiff,

v.

Century Direct Marketing, Inc. dba Consumer Information Services, Inc. et al., Defendants.

Civ. No. 98-9257 AHM (RCx)

STIPULATED ORDER FOR  PERMANENT INJUNCTIVE RELIEF WITH CONSUMER REDRESS AND OTHER EQUITABLE REMEDIES

Plaintiff, the Federal Trade Commission ("FTC" or the "Commission"), has filed a Complaint for a Permanent Injunction and Other Equitable Relief ("Complaint") pursuant to Section 13(b) of the Federal Trade Commission Act ("FTC

Act"), 15 U.S.C. §§ 53(b), alleging that defendants Century Direct Marketing, New Concept Communications, Christian Hunter, Thomas Adams, Antoine Bourdeaux, Sven Klein, and Lisa Sultan (collectively "defendants") engaged in deceptive acts and practices in connection with the advertising and telemarketing of informational guides to consumers throughout the United States. The Commission's Complaint alleges that defendants' deceptive acts and practices violate Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). Defendants have filed answers denying said allegations. The Commission and defendants desire to settle this lawsuit without admission of liability or wrongdoing and have consented to the entry of this Stipulated Order for Permanent Injunctive Relief with Consumer Redress and Other Equitable Relief ("Stipulated Order") without a trial or adjudication of any issue of law or fact herein.

NOW, THEREFORE, the Commission and defendants, having requested the Court to enter this Stipulated Order, it is ORDERED, ADJUDGED, AND DECREED as follows:

FINDINGS

1. This is an action by the Commission instituted under Section 13(b) of the FTC Act, 15 U.S.C. §§ 53(b). Pursuant to this section of the FTC Act, the Commission has the authority to seek the relief contained herein.

2. This Court has jurisdiction over the subject matter of this case and all parties hereto. Venue in the Central District of California is proper.

3. The Commission's Complaint states a claim upon which relief may be granted against defendants under Sections 5 and 13(b), of the FTC Act, 15 U.S.C. §§ 45, 53(b).

4. The alleged activities of defendants are in or affecting commerce, as defined in Section 4 of the FTC Act, 15 U.S.C. § 44.

5. Defendants, without admitting the allegations set forth in the Complaint, agree to entry of this Stipulated Order.

6. The parties shall each bear their own costs and attorney's fees incurred in this action and have waived all claims under the Equal Access to Justice Act, 28 U.S.C. § 2412, as amended by P.L. 104-121, 110 Stat. 847, 863-864 (1996), and all rights to seek judicial review, or otherwise to challenge the validity of this Stipulated Order.

7. Entry of this Stipulated Order is in the public interest.

DEFINITIONS

For purposes of this Stipulated Order, the following definitions shall apply:

1. "Assets" means all real and personal property of defendants, or held for the benefit of any such defendants, including but not limited to "goods," "instruments," "equipment," "fixtures," "general intangibles," "inventory," "checks," or "notes" (as these terms are defined in the Uniform Commercial Code), lines of credit, and all cash, wherever located.

 

2. "Material" means likely to affect a person's choice of, or conduct regarding, goods or services.

 

3. "Person" means any individual, group, unincorporated association, limited or general partnership, corporation, or other business entity.

 

4. "Document" is synonymous in meaning and equal in scope to the usage of the term in Federal Rule of Civil Procedure 34(a) and includes writings, drawings, graphs, charts, photographs, audio and video recordings, computer records, and other data compilations from which information can be obtained and translated, if necessary, through detection devices into reasonably usable form. A draft or non-identical copy is a separate document within the meaning of the term.

 

5. "Telemarketing" means a plan, program, or campaign which is conducted to induce the purchase of goods or services by use of one or more telephones, and which involves more than one interstate telephone call.

I.

PROHIBITED MISREPRESENTATIONS

IT IS THEREFORE ORDERED that, in connection with the advertising, promotion, offering or sale of auction information or job opportunity packages, or other goods or services sold through telemarketing, defendants, their successors, assigns, officers, agents, servants, employees, and those persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, are hereby permanently restrained and enjoined from making or substantially assisting others in making, directly or by implication, orally or in writing, any misrepresentation of material fact, including, in particular, but not limited to:

A. Falsely representing that consumers who purchase the defendants' publications on seized cars frequently are able to purchase vehicles at prices substantially below their wholesale values;

 

B. Falsely representing that the consumers who purchase the defendants' publications on foreclosed homes frequently are able to purchase foreclosed homes at prices substantially below their market values;

 

C. Falsely representing the defendants will not use consumers' checking account or credit card information for the purposes of debiting consumers' bank accounts or billing consumers' credit card accounts;

 

D. Falsely representing the total cost to purchase, receive, or use any auction or job opportunity package or other good or service sold through telemarketing that is the subject of a sales offer, or falsely representing the quantity of such publications, job opportunity packages or other goods or services sold through telemarketing that are the subject of a sales offer;

 

E. Failing to disclose, before a customer is charged or pays for goods or services offered through telemarketing, in a clear and conspicuous manner, the following material information:

 

1. the identity or quantity or the total cost to purchase, receive, or use the goods or services that are the subject of a sales offer;

 

2. if a defendant has a policy of not making refunds, cancellations, or repurchases, a statement informing the customer that this is the defendant's policy, or

 

3. if a defendant makes a representation about a refund, cancellation, exchange, or repurchase policy, a statement of all material terms and conditions of such policy; or

 

F. Failing to provide refunds in accordance with material terms and conditions as stated to customers.

II.

POSSESSING AND RELYING UPON A REASONABLE BASIS PRIOR TO MAKING A REPRESENTATION

IT IS FURTHER ORDERED that the Defendants, their successors, assigns, officers, agents, servants, employees, and those persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, are hereby permanently restrained and enjoined from making any material representation in any manner, expressly or by implication, orally or in writing, about the ability of consumers who purchase defendants' auction information or job opportunity package, or other goods or services sold through telemarketing to (a) purchase vehicles, homes, or other goods or services, or (b) achieve any specified level of income through any job opportunity or business venture, unless the representation is true and, at the time it is made, defendants possess and rely upon competent and reliable evidence that substantiates the representation.

III.

CUSTOMER AUTHORIZATION

IT IS FURTHER ORDERED that the Defendants, their successors, assigns, officers, agents, servants, employees and those persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, are permanently restrained and enjoined from obtaining or submitting for payment a check, draft, or other form of negotiable paper drawn on a person's checking, savings, share, or similar account, without that person's express verifiable authorization. Such authorization shall be deemed verifiable if any of the following means are employed.

A. Express written authorization by the customer, which may include the customer's signature on the negotiable instrument; or

 

B. Express oral authorization which is tape recorded and made available upon request to the customer's bank and which evidences clearly both the customer's authorization of payment for the goods and services that are the subject of the sales offer and the customer's receipt of all of the following information:

 

(1). The date of the draft(s);

 

(2). The amount of the draft(s);

 

(3). The payor's name;

 

(4). The number of draft payments (if more than one);

 

(5). A telephone number for customer inquiry that is answered during normal business hours; and

 

(6). The date of the customer's oral authorization; or

 

C. Written confirmation of the transaction, sent to the customer prior to submission for payment of the customer's check, draft or other form of negotiable paper, that includes all of the information contained in B(1)-(6) above, and the procedures by which the customer can obtain a refund from the seller or telemarketer in the event the confirmation is inaccurate.

IV.

MONETARY SETTLEMENT

IT IS FURTHER ORDERED that

A. Defendants Century Direct Marketing and New Concept Communications shall pay to the Commission the amount of Two Hundred Thousand dollars ($200,000), for which they are jointly and severally liable. This payment is for purposes of settlement only and does not constitute an admission by defendants or a finding by the Court of the occurrence of consumer injury or the total amount of consumer injury caused by the law violations alleged in this action.

 

B. For purposes of administration, all payments required under this Section to be made to the Commission shall be made by certified check or other guaranteed funds payable to and delivered to the Commission, or by wire transfer in accord with directions provided by the Commission.

 

C. In the event of any default on any obligation of defendants to make payment under this Section, interest, computed pursuant to 28 U.S.C. § 1961(a), shall accrue from the date of default to the date of payment.

 

D. Defendants are hereby required, in accordance with 31 U.S.C. § 7701, to furnish to the Commission their respective taxpayer identifying numbers (social security numbers or employer identification numbers), which shall be used for purposes of collecting and reporting on any delinquent amount arising out of such persons' relationship with the government.

 

E. Defendants hereby assign all rights they may have to pursue any and all claims related to this case under any existing corporate or directors and officers liability insurance policies to the Commission.

V.

PERFORMANCE BOND FOR TELEMARKETING

IT IS FURTHER ORDERED that Defendants Hunter, Adams, and Bourdeaux, inclusively or in any combination thereof, are permanently restrained and enjoined from engaging in, or substantially assisting others engaged in, the offering for sale or selling of any auction or job information package, or any other product, program, or service, directly or indirectly, to the general public by means of telemarketing, unless they first post a cash performance bond in the principal amount of One Hundred Thousand Dollars ($100,000). Said bond shall be conditioned upon compliance by such defendants with the FTC Act and Sections I through III of this Stipulated Order. The bond shall be deemed continuous and remain in full force and effect as long as such defendants continue to offer for sale or sell any auction or job information package, or any other product, program, or service, directly or indirectly, to the general public by means of telemarketing, and for one (1) year after they have ceased any such activity. The bond shall cite the FTC Act and Sections I through III of this Stipulated Order as the subject matter of the bond and provide surety against such defendants' failure to pay any consumer redress or disgorgement that may be ordered in consequence of the violation thereof. Such performance bond shall be an insurance agreement providing surety issued by a surety company that is admitted to do business in every state in which such defendant(s) is doing business and that holds a Federal Certificate of Authority as Acceptable Surety on Federal Bonding and Reinsuring. Such defendants shall provide a copy of such performance bond to the Commission prior to the commencement of any business for which such bond is required.

The bond shall provide that within thirty (30) days following receipt of notice of entry of a final judgment by a court in an action initiated by the Commission or the United States against such defendants for consumer redress or disgorgement pursuant to this Stipulated Order or under the provisions of the FTC Act, which judgment has determined an amount of consumer redress or disgorgement to be paid, the Commission may draw so much of the bond as is equal to the amount of any consumer redress or disgorgement ordered, provided that, if defendants Hunter, Adams, or Bourdeaux have agreed to the entry of a court order for consumer redress in such an action, a specific finding that such defendants violated the terms of this Stipulated Order or the provisions of the FTC Act shall not be necessary. A copy of the notice provided for herein shall be mailed to such defendants at their last known addresses.

Defendants may not disclose the existence of the performance bond to any consumer, or other purchaser, or prospective purchaser, to whom a product, program, or service is advertised, promoted, offered for sale, sold, or distributed by means of telemarketing, without also disclosing at the same time and in a like manner that the performance bond is required by order of the United States District Court for the Central District of California in settlement of allegations in a civil lawsuit that defendants engaged in false and misleading representations.

VI.

RIGHT TO REOPEN

IT IS FURTHER ORDERED that within five (5) business days after the date this Stipulated Order is signed by the Court, defendants shall each submit to the Commission a truthful sworn statement (in the form shown on Appendix A to this Stipulated Order) that shall reaffirm and attest to the truthfulness, accuracy, and completeness of their respective financial statements. The Commission's agreement to this Stipulated Order is expressly premised upon the financial condition of each defendant, as represented in their financial statements and amendments thereto, which contain material information upon which the Commission relied in negotiating and agreeing upon this Stipulated Order.

If, upon noticed motion of the Commission, the Court finds that any defendant made a material misrepresentation or omission concerning that defendant's financial condition, then the Court shall enter a modified judgment holding that that defendant is liable to the Commission for consumer redress in the amount of Seven Million Dollars ($7,000,000) less all prior payments for consumer redress made by any defendants in this action. The Commission, or any of its designees, may collect said modified judgment.

Provided, however, that in all other respects this judgment shall remain in full force and effect, unless otherwise ordered by the Court.

VII.

TERMINATION OF RECEIVERSHIP

IT IS FURTHER ORDERED that the Receiver shall, if he has not already done so, file his final report and request for fees and expenses within five days after of the date this Stipulated Order is signed by the Court. Upon receipt of the Receiver's final fees, the Receivership created by the Order Appointing Temporary Receiver, and signed by the Court on December 11, 1998, shall terminate.

VIII.

LIFTING OF ASSET FREEZE AND
TRANSFER OF FUNDS FOR CONSUMER REDRESS

IT IS FURTHER ORDERED that the freeze against the assets of defendants ordered by the Court on November 18, 1998, and extended thereafter, shall be lifted as of the date the Court signs this Order.

IX.

ACKNOWLEDGMENT OF RECEIPT

IT IS FURTHER ORDERED that, within five (5) business days after receipt of this Stipulated Order as entered by the Court, defendants shall each submit to the Commission a truthful sworn statement, in the form shown on Appendix B to this Stipulated Order, that shall acknowledge receipt of this Stipulated Order.

X.

DISTRIBUTION OF STIPULATED ORDER BY DEFENDANTS

IT IS FURTHER ORDERED that, for a period of three (3) years from the date of entry of this Stipulated Order, defendants shall:

A. Provide a copy of this Stipulated Order to, and obtain a signed and dated acknowledgment of receipt of same from, each officer or director for any business in which (1) any defendant is an owner of the business or directly or indirectly manages or controls the business, and (2) the business is engaged in or substantially assists others in engaging in telemarketing; and

 

B. Provide a copy of this Stipulated Order to, and obtain a signed and dated acknowledgment of receipt of same from, all personnel in a management capacity, immediately upon employing or retaining any such persons, for any business in which (1) any defendant is an owner of the business or directly or indirectly manages or controls the business, and (2) the business is engaged in or substantially assists others in engaging in telemarketing;

 

C. Require personnel in a management capacity to inform all personnel who respond to consumer complaints and all sales personnel of the contents and requirements of this Order and to post this Order or an accurate summary thereof approved by Commission Counsel in a place of prominence where it is accessible for all personnel to review; and

 

D. Maintain for a period of three (3) years after execution and, upon reasonable notice, make available to representatives of the Commission the original signed and dated acknowledgments of the receipt of copies of this Stipulated Order or an accurate summary thereof, as required in Subsections A, B and C of this Section, for any business in which (1) any defendant is an owner of the business or directly or indirectly manages or controls the business, and (2) the business is engaged in or substantially assists others in engaging in telemarketing.

XI.

RECORD KEEPING

IT IS FURTHER ORDERED that, for a period of three (3) years from the date of entry of this Stipulated Order, defendants, in connection with any telemarketing business which they own in full or in part, or which they directly or indirectly manage or control, are hereby restrained and enjoined from failing to create, and from failing to retain for a period of three (3) years, following the date of such creation, unless otherwise specified:

A. Books, records, and accounts that, in reasonable detail, accurately and fairly reflect the cost of goods or services sold, revenues generated, and the disbursement of such revenues;

 

B. Records accurately reflecting: the name, address, and telephone number of each person employed in any capacity by such business, including as an independent contractor; that person's job title or position; the date upon which the person commenced work; and the date and reason for the person's termination, if applicable. The business subject to this Section shall retain such records for any terminated employee for a period of two (2) years following the date of termination;

 

C. Records containing the names, addresses, telephone numbers, dollar amounts paid, quantity of items or services purchased, and description of items or services purchased, for all consumers to whom such business has sold, invoiced, or shipped any goods or services;

 

D. Tape recordings of the entirety of each sales call which results in a purchase;

 

E. Records that reflect, for every consumer complaint or refund request, whether received directly or indirectly, or through any third party:

 

1. The consumer's name, address, telephone number, and the dollar amount paid by the consumer;

 

2. The written complaint or refund request, if any, and the date of the complaint or refund request;

 

3. The basis of the complaint, including the name of any sales or consumer service persons complained against, and the nature and result of any investigation conducted concerning any complaint;

 

4. Each response and the date of the response;

 

5. Any final resolution and the date of the resolution; and

 

6. In the event of a denial of a refund request, the reason for the denial; and

 

F. Copies of all sales scripts, training materials, advertisements, or other marketing materials utilized.

XII.

COMPLIANCE REPORTING BY DEFENDANTS

IT IS FURTHER ORDERED that, in order that compliance with the provisions of this Stipulated Order may be monitored:

A. For a period of three (3) years from the date of entry of this Stipulated Order, defendants shall notify the Commission in writing of the following:

 

1. Any change in defendant's residence, mailing address, or telephone number within thirty (30) days of the date of such change;

 

2. Any change in defendant's employment status (including self-employment) within thirty (30) days of such change. Such notice shall include the name and address of each business defendant is affiliated with or employed by, a statement of the nature of the business, and a statement of defendant's duties and responsibilities in connection with the business; and

3. Any proposed change in the structure of any business entity owned in full or in part, or controlled by defendant, such as creation, incorporation, dissolution, assignment, sale, merger, creation or dissolution of subsidiaries, proposed filing of a bankruptcy petition, change in the corporate name or address, or any other change that could affect compliance obligations arising out of this Stipulated Order, thirty (30) days prior to the effective date of any proposed change; provided, however, that, with respect to any proposed change in the business about which defendant learns less than thirty (30) days prior to the date such action is to take place, defendant shall notify the Commission as soon as is practicable after learning of such proposed change.

 

B. One hundred eighty (180) days after the date of entry of this Stipulated Order, defendants shall each provide a written report to the Commission, sworn to under penalty of perjury, setting forth in detail the manner and form in which each has complied and is complying with this Stipulated Order. This report shall include but not be limited to:

 

1. Defendant's then-current residence address and telephone number;

 

2. Defendant's then-current employment or business addresses and telephone numbers, a description of the business activities of each business or employer, and defendant's business title and responsibilities;

 

3. A copy of each acknowledgment of receipt of this Stipulated Order obtained by defendant pursuant to Section X of this Stipulated Order, if any; and

 

4. A statement describing the manner in which defendant has complied and is complying with Sections I-III and X of this Stipulated Order.

 

C. For the purposes of this Stipulated Order, defendants shall, unless otherwise directed by the Commission's authorized representatives, mail all written notifications to the Division of Marketing Practices at the address specified in Section XVII, infra.

 

D. For the purposes of Subsection A and B, "employment" includes the performance of services as an employee, consultant, or independent contractor; and "employers" include any individual or entity for whom a defendant performs services as an employee, consultant, or independent contractor.

XIII.

COMMISSION'S AUTHORITY TO MONITOR COMPLIANCE

IT IS FURTHER ORDERED that the Commission is authorized to monitor defendants' compliance, and the compliance of their successors, assigns, officers, agents, employees, and those persons in active concert or participation with them who receive actual notice of this Stipulated Order by personal service or otherwise, whether acting directly or through any entity, corporation, subsidiary, division, or other device, with this Stipulated Order by all lawful means, including but not limited to the following:

A. During all periods of time during which defendants are required to maintain a bond pursuant to Section V, the Commission is authorized, without further leave of Court, to obtain discovery from any person in the manner provided by Chapter V of the Federal Rules of Civil Procedure, Fed. R. Civ. P. 26-37, including the use of compulsory process pursuant to Fed. R. Civ. P. 45, for the purpose of monitoring and investigating any defendant's compliance with any provision of this Stipulated Order;

 

B. The Commission is authorized to use representatives posing as consumers to any defendant, any defendant's employees, or any other entity managed or controlled in whole or in part by any defendant, without the necessity of identification or prior notice; and

 

C. Nothing in this Stipulated Order shall limit the Commission's lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49 & 57b-1, to investigate whether defendants, and their successors, assigns, officers, agents, employees, and those persons in active concert or participation with them who receive actual notice of this Stipulated Order by personal service or otherwise, whether acting directly or through any entity, corporation, subsidiary, division, or other device, have violated any provision of this Stipulated Order, any provision of the Telemarketing Rule, 16 C.F.R. Part 310, or Section 5 of the FTC Act, 15 U.S.C. § 45.

XIV.

ACCESS TO BUSINESS PREMISES

IT IS FURTHER ORDERED that, for a period of three (3) years from the date of entry of this Stipulated Order, for the purpose of further determining compliance with this Stipulated Order, the Commission may, upon good cause, petition the Court, with notice to defendants, and their successors, assigns, officers, agents, employees, and those persons in active concert or participation with them who receive actual notice of this Stipulated Order by personal service or otherwise, whether acting directly or through any entity, corporation, subsidiary, division, or other device, for an order to allow:

A. Access during normal business hours to any office, or facility storing documents, of any business in which (1) any defendant is an owner of the business or directly or indirectly manages or controls the business, and (2) the business is engaged in or substantially assists others in engaging in telemarketing. If the Court grants such access, defendants, and their successors, assigns, officers, agents, employees, and those persons in active concert or participation with them who receive actual notice of this Stipulated Order by personal service or otherwise, whether acting directly or through any entity, corporation, subsidiary, division, or other device, shall permit representatives of the Commission to inspect and to copy all documents relevant to any matter contained in this Stipulated Order, and shall permit Commission representatives to remove documents relevant to any matter contained in this Stipulated Order for a period not to exceed forty-eight (48) hours so that the documents may be inspected, inventoried, and copied; or

 

B. Interviews with the officers, directors, and employees, including all personnel involved in responding to consumer complaints or inquiries, and all sales personnel, whether designated as employees, consultants, independent contractors or otherwise, of any business to which Subsection A of this Section applies, concerning matters relating to compliance with the terms of this Stipulated Order. The persons interviewed may have counsel present.

Provided, however, that nothing in this Section shall limit the right of the Commission to seek any relief under Fed. R. Civ. P. 65 to which it may be entitled.

XV.

NOTICES

IT IS FURTHER ORDERED that all notices and other documents required of defendants in this Stipulated Order shall be made to the following address:

Director of Marketing Practices

Federal Trade Commission

600 Pennsylvania Ave., NW, Rm. 238

Washington, DC 20580

Re: FTC v. Century Direct Marketing et al.

or any such other address as the Commission shall specify.

XVI.

CUSTOMER LISTS

IT IS FURTHER ORDERED that defendants, and their successors, assigns, officers, agents, employees, and those persons in active concert or participation with them who receive actual notice of this Stipulated Order by personal service or otherwise, whether acting directly or through any entity, corporation, subsidiary, division, or other device, are permanently restrained and enjoined from providing or disclosing, whether or not in exchange for payment or other consideration, to any party, the names, addresses, telephone numbers, credit card numbers, or bank account numbers of, or other information related to ("customer list information"), persons whose identities or customer list information were obtained by defendants before the entry of this Stipulated Order, if the Commission, after having been given 20 days' notice of the identity of the intended recipient of the customer list information, disallows the list sale or exchange on the grounds that the intended recipient within ten (10) years preceding the sale or exchange has been under Commission consumer protection order relating to franchising, telemarketing, or credit practices or has engaged in a pattern of acts or practices that violate the FTC Act within five (5) years preceding said sale or exchange. Provided, however, that past sales by defendants of customer lists shall not be deemed a violation of this provision, and that defendants, and their successors, assigns, officers, agents, employees, and those persons in active concert or participation with them who receive actual notice of this Stipulated Order by personal service or otherwise, whether acting directly or through any entity, corporation, subsidiary, division, or other device, may provide such information to a law enforcement agency either voluntarily or as required by any law, regulation, or Court order.

XVII.

RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that the Court shall retain jurisdiction of this matter for all purposes.

The Commission and defendants hereby stipulate and agree to entry of the foregoing Stipulated Order, which shall constitute a final judgment in this action.

IT IS SO ORDERED.

Dated:

HON. A. HOWARD MATZ
United States District Judge

SIGNED AND STIPULATED BY:

Dated:

GARY IVENS
RUSSELL DEITCH
JAMES KAMINSKI
JOHN JACOBS
Attorneys for Plaintiff
Federal Trade Commission

Dated:

CENTURY DIRECT MARKETING, INC.
By Christian Hunter, President

Dated:

NEW CONCEPT COMMUNICATIONS, INC.
By Christian Hunter, President

Dated:

CHRISTIAN HUNTER
Individually and as an officer/director of CDM and NCC

Dated:

THOMAS ADAMS, III
Individually and as an officer/director of CDM and NCC

Dated:

ANTOINE BOURDEAUX
Individually and as an officer/director of CDM and NCC

Dated:

SVEN KLEIN
Individually and as an officer/director of CDM and NCC

Dated:

LISA SULTAN
Individually

APPENDIX A

FTC v. Century Direct Marketing, Inc. et al.

Stipulated Order for Permanent Injunctive Relief
With Consumer Redress and Other Equitable Relief

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION

Federal Trade Commission, Plaintiff

v.

Century Direct Marketing, Inc., d/b/a Consumer Information Services, Inc. et al., Defendants

Civ. No. 98-9257 AHM (RCx)

I, _____________________________, hereby state that the information contained in the Financial Statement of Defendant ______________________________ and related papers provided to the plaintiff on ________________ [and as amended on ______________], and, with respect to bank accounts, as more particularly stated in the reports to the Court by the Receiver, [for corporate defendants] if applicable] was [were] true, accurate, and complete at such time.

I declare under penalty of perjury that to the best of my knowledge the foregoing is true and correct.

DATE

APPENDIX B

FTC v. Century Direct Marketing, Inc. et al.

Stipulated Order for Permanent Injunctive Relief
With Consumer Redress and Other Equitable Relief

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

FEDERAL TRADE COMMISSION, Plaintiff,

v.

Century Direct Marketing, Inc. dba Consumer Information Services, Inc. et al., Defendants.

Civ. No. 98-9257 AHM (RCx)

STIPULATED ORDER FOR  PERMANENT INJUNCTIVE RELIEF WITH CONSUMER REDRESS AND OTHER EQUITABLE REMEDIES

[Name of defendant], being duly sworn, hereby states and affirms as follows:

1. My name is_______________________. My current residence address is . I am a citizen of the United States and am over the age of eighteen. I have personal knowledge of the facts set forth in this Affidavit.

 

2. I am a defendant in Federal Trade Commission v. Century Direct Marketing, Inc. et al. (United States District Court for the Central District of California).

 

3. On ____________, I received a copy of the Stipulated Order for Permanent Injunctive Relief with Consumer Redress and Other Equitable Relief, which was signed by the Honorable A. Howard Matz and entered by the Court on _____________. A true and correct copy of the Order I received is appended to this Affidavit.

 

I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct. Executed on __________, at _____________, California.

[Full name of defendant]