Federal Trade Commission v. Telestar Consulting, Inc., et al., LACV16-00555-SJO (SSx), U.S. District Court, Central District of California

This matter began as a receivership, but was converted to a monitorship by a Stipulated Preliminary Injunction.  Defendants operated a telemarketing sales business – selling arts and crafts supplies and anti-microbial products to non-profits, small preschools, and school athletic departments.  But, the primary sales driver was the shipment, and subsequent billing for, unordered merchandise.  The FTC alleged violations of the FTC Act, the Telemarketing Act, and the Unordered Merchandise Statute.  After appointment, we suspended all operations from the Southern California headquarters and coordinated with the FTC and Defendants as they worked toward a Stipulated Preliminary Injunction, which was entered in March, 2016.  By the terms of the Preliminary Injunction, Defendants were able to resume operations, subject to stringent conditions and we were appointed Monitor tasked to oversee Defendants’ new operations, which are to be based on a new sales model that does not include telemarketing.  We are currently serving in that capacity.