American Financial Support Services, and others were sued by the Federal Trade Commission (FTC) over debt relief practices.
It appears that Carey Howe, Anna Howe, Shunmin Hsu, Ruddy Palacios, and Oliver Pomazi have finally reached an agreement with the FTC to close their involvement in the case.
Under the proposed stipulated order for permanent injunction and monetary judgment, the folks above have agreed to:
- “Stipulating Defendants are permanently restrained and enjoined, whether acting directly or through an intermediary, from advertising, marketing, promoting, offering for sale, or selling, or Assisting Others in the advertising, marketing, promoting, offering for sale, or selling, of any Debt Relief Product or Service.”
- Not misrepresent “directly or by implication, in the sale of goods or services any material aspect of the performance, efficacy, nature, or central characteristics of goods or services that are the subject of a sales offer.”
- Not violate “the FTC’s Telemarketing Sales Rule, 16 C.F.R. pt. 310.”
A judgment in the amount of $43 million is entered but in partial satisfaction of the judgment the following people are ordered to pay:
- Carey G. Howe and Anna C. Howe: $133,496.42
- Shunmin Hsu: $43,252.16
- Ruddy Palacios: $260,582.00
- Oliver Pomazi: $54,505.00
In addition to the payments above the FTC will place liens and security interest on their real property.
- Carey G. Howe and Anna C. Howe: $80,302.00 (8282 Valencia Drive, Huntington Beach, California 92647)
- Shunmin Hsu: $237,840.76 (12602 Barrett Lane, North Tustin, California 92705)
- Ruddy Palacios: $24,958.29 (1912 Alcor Street, Lomita, California 90717)
For any issues that remain from the original complaint, the setting people will have to “fully cooperate with representatives of the Commission and the Receiver in this case and in any investigation related to or associated with the transactions or the occurrences that are the subject of the Complaint. Stipulating Defendants must provide truthful and complete information, evidence, and testimony. Stipulating Defendants must appear and cause their employees, representatives, or agents to appear for interviews, discovery, hearings, trials, and any other proceedings that a Commission or Receiver’s representative may reasonably request upon five (5) days written notice, or other reasonable notice, at such places and times as a Commission or Receiver’s representative may designate, without the service of a subpoena.”
This will follow all the named people for the next 15 years in any business they engage in. The court document says,”For 15 years after entry of this Order, each Stipulating Defendant for any business that such Stipulating Defendant, individually or collectively with any other Defendants, is the majority owner or controls directly or indirectly, must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees having managerial responsibilities for the conduct specified in Section IV and all agents and representatives who participate in the conduct specified in Section IV; (3) any payment processor or lead broker or generator used by the business; and (4) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting.”
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