Federal Trade Commission v. Ideal Financial Solutions, et al., 13-CV-00143-JAD-GWF, U.S. District Court, District of Nevada
These Defendants ran a particularly brazen fraud – they ran unauthorized charges (usually $29.95) against the bank account and credit card accounts of consumers who had purchased no product or services from them. Consumer account information was obtained through payday loan brokers and middlemen who were in possession of high volumes of consumer payday loan applications. The apparent premise of the business was that most consumers would not notice the unauthorized charge or not pursue a chargeback. Consumers who did call to complain were told that they had purchased financial counseling services, payday loan matching services, or assistance in completing payday loan applications.
The FTC’s Complaint and TRO application alleged multiple specific violations of the FTC Act. The TRO was entered January 30, 2013, after which we concluded that this business could not operate lawfully and profitably in the context of this receivership and terminated operations. A Preliminary Injunction was entered February 15, 2013. In February, 2016, the Court granted summary judgment as to the Receivership Defendants and the Individual Defendants, who had not previously settled, and entered a Final Judgment for $43 million. As Receiver, we continue to pursue a claim against a third party merchant account processor.