Andrew Gamber, Voyager Financial Group, LLC, BAIC, Inc., SoBell Corp
Documents in this case
Case summary
On August 14, 2019, the Consumer Financial Protection Bureau filed a proposed stipulated judgment with Andrew Gamber, Voyager Financial Group, LLC, BAIC, Inc., and SoBell Corp., which was entered by the court on September 4, 2019. The companies were brokers of contracts offering high-interest credit to veterans and other consumers and were owned and operated by Gamber. In the complaint, the Bureau alleged that Gamber and his companies misrepresented to consumers that the contracts the companies facilitate are valid and enforceable when, in fact, they are void under federal and state law; misrepresented to consumers that the product is a sale of payments and not a high-interest credit offer; misrepresented to consumers when they will receive their funds; and failed to inform consumers of the applicable interest rate on the credit offer. The order bans the defendants from the industry and imposes a judgment for $2.7 million in redress, $1 for a civil money penalty to the Bureau, and $75,000 to the State of Arkansas. The Bureau filed this complaint in coordination with the Office of the Arkansas Attorney General.
Complaint ()
PDF of this document (16 pages)
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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS Bureau of Consumer Financial Protection and the State of Arkansas ex rel. Leslie Rutledge, Attorney General, Plaintiffs, v.
Case Number:
COMPLAINT AUG 1 4 2019 f~ES W.-w:MACK, CLERK y DEPCLERK 4; I q- C. V - 5t, 5 - B s M Andrew Gamber, Voyager Financial Group, LLC, BAIC, Inc., and SoBell Corp., This case assigned to District Judge Af ,Ue.r and to Magistrate Judge ..... 8.._11._.}-------- Defendants.
The Bureau of Consumer Financial Protection (Bureau) and the State of Arkansas ex rel. Leslie Rutledge, Attorney General (Arkansas), bring this action against Andrew Gamber; Voyager Financial Group, LLC; BAIC, Inc.; and SoBell Corp. ( collectively, Defendants) under the Consumer Financial Protection Act of2010 (CFPA), 12 U.S.C. §§ 5531, 5536(a), 5564, 5565. Arkansas also brings this action under the Arkansas Deceptive Trade Practices Act (ADTPA), Ark. Code Ann.§ 4-88-101, et seq. and the Arkansas Constitution, as amended by Amendment 89, § 3. Plaintiffs allege as follows. Jurisdiction and Venue 1.
This Court has subject-matter jurisdiction over this action because it is brought under "Federal consumer financial law," 12 U.S.C. § 5565(a)(l), presents a federal question, 28 U.S.C. § 1331, and is brought by an agency of the United States, 28 U.S.C. § 1345. 2.
This Court has supplemental jurisdiction over Arkansas's state-law claims because they are so related to the federal claims that they form part of the same case or controversy. 28 U.S.C. § 1367(a).
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3.
This Court has personal jurisdiction over Defendants because Defendants are located, reside, and do business in this district. 12 U.S.C. § 5564(f). 4.
Venue is proper because Defendants are located, reside, and do business in this district, 12 U.S.C. § 5564(f), because Defendants reside in this district and all Defendants are residents of the State of Arkansas, 28 U.S.C. § 139l(b)(l), and because a substantial part of the events or omissions giving rise to the claims occurred in this district, 28 U.S.C. § 139l(b)(2). Parties 5.
The Bureau is an independent agency of the United States created by the CFPA. 12 U.S.C. § 549l(a). The Bureau has independent litigating authority and is authorized to initiate civil actions in federal district court to secure appropriate relief for violations of"Federal consumer financial law," 12 U.S.C. § 5564(a)-(b), including the CFPA, 12 U.S.C. § 5481(14). 6.
Leslie Rutledge is the Attorney General for the State of Arkansas and is the chief legal officer of the State. She is statutorily mandated to maintain and defend the interests of the State, the legitimate business community, and Arkansas consumers in federal court. Ark. Code Ann.§§ 4-88-105, 25-16-701 et seq. Under Ark. Code Ann.§ 4-88-104 and 4-88-113, the State may seek civil enforcement of the ADTP A.
7.
Defendant Voyager Financial Group, LLC (VFG) was an Arkansas corporation headquartered in Little Rock, Arkansas. VFG brokered extensions of credit to consumers and is therefore a "covered person" under the CFPA. 12 U.S.C. § 5481(5)-(7), (15)(A)(i). 8.
Defendant BAIC, Inc. (BAIC) was a Texas corporation headquartered in Little Rock, Arkansas. BAIC brokered extensions of credit to consumers and is therefore a "covered person" under the CFPA. 12 U.S.C. § 5481(5)-(7), (15)(A)(i). Case 4:19-cv-00565-BSM Document 1 Filed 08/14/19 Page 2 of 13
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9.
Defendant SoBell Corp (SoBell) was a Mississippi corporation headquartered in Little Rock, Arkansas. SoBell brokered extensions of credit to consumers and is therefore a "covered person" under the CFPA. 12 U.S.C. § 5481(5)-(7), (15)(A)(i). 10.
Defendant Andrew Gamber was a co-founder and owner ofVFG. Gamber was the sole founder and owner of BAIC and SoBell. He had managerial responsibility for VFG, BAIC, and SoBell, and he materially participated in the conduct of their affairs. Gamber is therefore a "related person" under the CFPA, 12 U.S.C. § 5481(25)(C)(i)-(ii), and is thus deemed a "covered person" under the CFPA. 12 U.S.C. § 5481(25)(B). Further, under Ark. Code Ann.§ 4-88-l 13(d)(l), Gamber is liable for violations of the ADTPA as a "partner, officer, or director" and a "person who directly or indirectly control[led]" VFG, BAIC, and SoBell. Factual Background 11.
Gamber, through his companies VFG, BAIC, and SoBell, brokered contracts offering high-interest credit to consumers. The credit offers were marketed as purchases of consumers' future pension or disability payments.
12.
Defendants set up contracts between consumers and investors where consumers receive a lump-sum payment, ranging from a few thousand to tens of thousands of dollars, and were thereafter obligated to repay a much larger amount by assigning to investors part of consumers' monthly pension or disability payments. The consumers' obligations typically last five to ten years.
13.
The majority of the high-interest credit offers Defendants brokered were for veterans who have Department of Veterans Affairs (VA) disability pensions or pensions administered by the Defense Finance and Accounting Service (DF AS). The VA establishes a veteran's level of disability compensation and administers disability pensions. DF AS is a federal Case 4:19-cv-00565-BSM Document 1 Filed 08/14/19 Page 3 of 13
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agency within the Department of Defense; it includes an office that issues monthly pension payments to military retirees.
14.
From at least 2011 through 2016, Defendants' contracts required veterans to go into their VA or DF AS online portal and change their entire pension direct-deposits or their monthly allotments to be routed directly into a bank account controlled by Defendants or Defendants' agents. If veterans contracted to sell only part of their pensions through Defendants, Defendants would receive the veterans' entire pension direct-deposits or monthly allotments and then remit portions of them to the veterans' bank accounts. 15.
Federal law prohibits agreements under which another person acquires the right to receive a veteran's pension payments. 38 U.S.C. § 530l(a)(3)(C). 16.
South Carolina law, the law governing these contracts according to their choiceof-law provisions, prohibits an assignment of earnings for payment or as security for payment of a debt arising out of a consumer loan and deems a sale of unpaid earnings made in consideration of the payment of money to the seller of the earnings to be a loan secured by an assignment of earnings. S.C. Code§ 37-3-403 (2012). "Earnings" includes periodic payments under a pension, retirement, or disability program. S.C. Code§ 37-1-301(15). Thus, these contracts are prohibited under their governing state law.
17.
Consumers could repay the contracts from sources other than the contracted-for income stream. In fact, consumers were required to purchase life-insurance policies so that, should a consumer die and the income stream stop, the outstanding amount on the contract would still be paid.
18.
Defendants represented to consumers that the products Defendants brokered were sales of payments and not high-interest credit offers. For example, the first page of the "New Case 4:19-cv-00565-BSM Document 1 Filed 08/14/19 Page 4 of 13
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Seller Information Packet," sent to consumers by Defendants, stated, "It is important to note that this is not a loan[.]" The first paragraph of a form email sent with the packet stated, "Please keep in mind that this is not a loan, you are selling a product for a set price." 19.
Defendants did not disclose to consumers the interest rates of the products Defendants brokered.
20.
In Defendants' communications with consumers who had ostensibly been matched with a buyer, Defendants routinely told consumers that consumers would receive their funds by a specific date or within a specified period. On multiple occasions, however, Defendants did not deliver the funds to the consumer by the promised date. Many consumers experienced funding delays, some as long as several months. 21.
Many consumers realized the illegal nature of the transactions, and some complained directly to Defendants that the transactions are illegal. In response, Defendants repeatedly told consumers that the transactions were legal. Count I Deceptive Acts or Practices in Violation of the CFP A 22.
The allegations in paragraphs 1 to 21 are incorporated here by reference. 23.
An act or practice is deceptive if it involves a material misrepresentation or omission that is likely to mislead consumers acting reasonably under the circumstances. 24.
Information that is material to consumers is information that is likely to affect a consumer's choice of, or conduct regarding, a product or service. 25.
The contracts brokered by Defendants were void from inception because federal law prohibits agreements under which another person acquires the right to receive a veteran's pension payments, 38 U.S.C. § 5301(a)(3)(C), and because South Carolina law, which governs Case 4:19-cv-00565-BSM Document 1 Filed 08/14/19 Page 5 of 13
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the contracts, prohibits sales of unpaid earnings and prohibits assignments of pensions as security on payment of a debt, S.C. Code§ 37-3-403.
26.
Defendants repeatedly failed to disclose to consumers that the contracts Defendants brokered were illegal because (1) assignments of veterans' pensions are prohibited by federal law and (2) sales of unpaid earnings and assignments of pensions as security on payment of a debt are prohibited under South Carolina law. Defendants repeatedly misrepresented the contracts as valid and enforceable. 27.
Defendants' failures to disclose the illegality of the contracts and their misrepresentations of the contracts as valid and enforceable were likely to mislead consumers acting reasonably under the circumstances.
28.
Defendants' omissions and misrepresentations were material because they were likely to influence the decisions of consumers acting reasonably under the circumstances. 29.
Therefore, Defendants engaged in deceptive acts and practices in violation of the CFPA. 12 U.S.C. §§ 5531(a), 5536(a)(l)(B).
Count II Deceptive Acts or Practices in Violation of the CFP A 30.
The allegations in paragraphs 1 to 21 are incorporated here by reference. 31.
Defendants brokered contracts that provide for consumers to receive a lump-sum payment and thereafter repay a much larger total amount over time using their monthly pension or disability payments. These products are high-interest credit offers. 32.
Defendants represented to consumers that Defendants' products were sales and not high-interest credit offers.
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33.
Consumers acting reasonably under the circumstances were likely to be misled by Defendants' misrepresentations.
34.
Defendants' misrepresentations regarding the nature of the products Defendants brokered were material to consumers because the misrepresentations rendered a reasonable consumer unable to compare the cost of Defendants' products with other potential sources of credit and were likely to influence the decisions of consumers acting reasonably under the circumstances.
35.
Therefore, Defendants engaged in deceptive acts and practices in violation of the CFPA. 12 U.S.C. §§ 553 l(a), 5536(a)(l)(B).
Count III Deceptive Acts or Practices in Violation of the CFP A 36.
The allegations in paragraphs 1 to 21 are incorporated here by reference. 37.
Defendants misrepresented to consumers that consumers would receive funds from Defendants within a specified period when, in fact, many consumers did not receive funds by the specified date.
38.
Defendants' misrepresentation were likely to mislead consumers acting reasonably under the circumstances.
39.
Misrepresentations about the date by which consumers would receive lump-sum payments under Defendants' contracts were material because they were likely to influence the decisions of consumers acting reasonably under the circumstances. 40.
Therefore, Defendants engaged in deceptive acts and practices in violation of the CFPA. 12 U.S.C. §§ 553l(a), 5536(a)(l)(B).
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Count IV Unfair Acts or Practices in Violation to the CFP A 41.
The allegations in paragraphs I to 21 are incorporated here by reference. 42.
An act or practice is unfair if it causes or is likely to cause consumers substantial injury that is not reasonably avoidable and is not outweighed by countervailing benefits to consumers or to competition.
43.
Defendants failed to inform consumers of their products' interest rates. 44.
Defendants caused or likely caused substantial injury to consumers because Defendants prevented consumers from comparing alternative products. And by failing to inform consumers about the products' interest rates, Defendants deprived consumers of information consumers would need to determine whether the product is usurious and therefore potentially unlawful under their state's law.
45.
Consumers could not reasonably have avoided injury in this situation; consumers could not reasonably be expected to make the interest-rate calculation themselves, particularly after Defendants misrepresented that the product was not a high-interest credit offer. 46.
This injury was not outweighed by countervailing benefits to consumers or competition.
47.
Therefore, Defendants engaged in unfair acts and practices in violation of the CFPA 12. U.S.C. §§ 553l(c), 5536(a)(l)(B).
CountV Deceptive, Unconscionable, and False Practices in Violation to the ADTPA 48.
The allegations in paragraphs I to 21 are incorporated here by reference. Case 4:19-cv-00565-BSM Document 1 Filed 08/14/19 Page 8 of 13
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49.
Defendants' business practices constitute the sale of"goods" or "services" within the meaning of Ark. Code Ann.§ 4-88-102(3) & (6). These same practices constitute business, commerce, or trade within the meaning of Ark. Code Ann. § 4-88-107. 50.
The deceptive and unconscionable trade practices enumerated are in addition to and do not limit the types of unfair trade practices actionable at common la~ or under other statutes of the State of Arkansas, including the Arkansas Constitution. Ark. Code Ann. § 4-88- 107(b ).
51.
Defendants' conduct constitutes deceptive, false, and unconscionable trade practices prohibited by the ADTP A, including but likely not limited to Ark. Code Ann. § 4-88- 107( a)( 1) and 4-88-107(a)(10). More specifically, Defendants violated the ADTPA by: a.
Knowingly making a false representations as to the characteristics, uses, benefits, sources, and approval of these lump-sum payments, rather than correctly characterizing the transactions as loans that were void from inception because federal law prohibits agreements under which another person acquires the right to receive a veteran's pension payments, under 38 U.S.C. § 5301(a)(3)(C).
b.
Advertising "lump-sum payments" with the intent not to sell them as advertised to both pension sellers and buyers was deceptive because Defendants affirmatively state that the transactions are not loans or are structured in such a manner that the practice of both selling and buying a veteran's pension is legal. c.
Engaging in other unconscionable, false, or deceptive action or practice in business, by charging and collecting usurious interest rates (in excess of 17% ) as a matter of law and that violates the Arkansas Constitution. See Ark. v. R & A. Inv. Co., Inc., 336 Ark. 289, 782 S.W.2d 299 (1991); Ark. Bd. of Collection Agencies & Old Case 4:19-cv-00565-BSM Document 1 Filed 08/14/19 Page 9 of 13
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Republic Sur. Co. v. McGhee, 372 Ark. 136,271 S.W.3d 512 (2008); Staton v. Ark. Bd of Collection Agencies & Am. Mfrs. Mut. Ins. Co., 3 72 Ark. 387, 277 S. W .3d 190 (2008); McGhee v. Ark. Bd. of Collection Agencies, 375 Ark. 52,289 S.W.3d 18 (2008). The usurious interest rates are believed to have ranged from 25% to over 40%, not including fees and the required life-insurance premiums costs that may be considered as part of the overall cost of credit.
d.
Requiring consumers to purchase life-insurance policies that paid the purchaser of the loan upon the consumers' death is unfair and unconscionable in that the cost of the life-insurance policy is not disclosed as part of the cost of the loan. 52.
Defendants' conduct in connection with the sale or advertisement of "lump-sum payment" or "income stream purchases" was in violation of Ark. Code Ann. § 4-88-108 through the concealment, suppression, or omission of material facts: a.
That the assignment of the pension was void at its inception and Defendants' act, use, or employment of a carefully crafted and constructed scheme to cast the loans as "lump-sum payments" was employed to obtain commissions and fees through deceit, defraud, or false pretenses.
b.
That the assignment of certain pensions was void at its inception, such that Defendants' advertisements, statements and business model was deliberately designed to skirt both the definition of a loan and the definition of a security with the intent that both buyers and sellers rely upon the concealment, suppression, or omission. c.
That Defendants Gamber and VFG were subject to a cease-and-desist consent order for the sale of unregistered securities. See In re VFG, LLCJ/kla Voyager Fin. Grp., LLC., Arkansas Security Department Order No. S-12-00 l 5-l 4-OR06. Case 4:19-cv-00565-BSM Document 1 Filed 08/14/19 Page 10 of 13
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d.
And that both the life-insurance coverage on the seller and limits to other ''wrap insurance" purportedly provided by Lloyds of London to protect the buyers did not disclose that the life insurance may lapse or that the seller could reduce or direct the income stream at any time.
53.
Defendants' conduct is ongoing in that many veterans and other consumers who sold their pensions are still paying on these loans and buyers who purchased the "income streams" are still receiving payments.
54.
Further, Defendants' affirmative and fraudulent scheme sought to characterize the transactions as the sale of a pension rather than a usurious loan in order to prevent consumers from discovering the fraud and usurious interest. 55.
Finally, some of these transactions were committed against "elder or disabled persons" that subject Defendants to additional civil penalties not to exceed $10,000 for each violation, Ark. Code Ann.§ 4-88-201 et seq., because: a.
Defendants' conduct was in disregard of the rights of the elder or disabled person to his or her pension.
b.
Defendants knew or reasonably should have known that their conduct was directed toward these elder or disabled persons because the customers were receiving pensions and disability payments.
c.
The elder or disabled person was more vulnerable to Defendants' conduct because of age, poor health, infirmity, impaired understanding, restricted mobility, or disability than other persons and the elder or disabled person actually suffered substantial physical, emotion, or economic damage resulting from Defendants' conduct. d.
And Defendants' conduct caused an elder or disabled person to suffer: Case 4:19-cv-00565-BSM Document 1 Filed 08/14/19 Page 11 of 13
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1.
mental or emotional anguish;
11.
loss of or encumbrance upon a primary residence of the elder or disabled person;
iii.
loss or encumbrance upon the elder or disabled person's principal _employment or principal source of income; 1v.
loss of funds received under a pension or retirement plan or a government benefits program;
v.
loss of property set aside for retirement or for personal or family care and maintenance;
vi.
loss of assets essential to the health and welfare of the older or disabled person; or v11.
any other similar facts the Court deems appropriate. Prayer for Relief Wherefore, the Bureau and Arkansas request that the Court: 1.
permanently enjoin Defendants from committing future violations of the CFPA, 12 U.S.C. §§ 5531, 5536(a), or any provision of"Federal consumer financial law," as defined by 12 U.S.C. § 5481(14); 2.
permanently enjoin Defendants from committing future violations of the ADTP A and the Arkansas Constitution, Amend. 89; 3.
grant additional injunctive relief as the Court may deem just and proper; 4.
order the suspension or forfeiture of franchises, corporate charters, or other licenses or permits or authorization to do business in Arkansas. Ark. Code Ann. § 4-88-l 13(b );
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5.
award restitution, damages, or other monetary relief against Defendants; 6.
order Defendants to pay redress to harmed consumers; 7.
order Defendants to disgorge all ill-gotten gains; 8.
impose on Defendants civil money penalties; 9.
order Defendants to pay the Bureau's and Arkansas's costs incurred in connection with prosecuting this action; and 10.
award additional relief as the Court may determine to be just and proper. Respectfully submitted, Cara Petersen Acting Enforcement Director Jeffrey Paul Ehrlich Acting Principal Deputy Enforcement Director Michael G. Salemi Acting Deputy Enforcement Director Kara K. Miller Assistant Litigation Deputy Isl Benjamin Konop Benjamin Konop, Ohio Bar No. 0073458 Senior Litigation Counsel Lane Powell, Mich. Bar No. P79432 Enforcement Attorney Bureau of Consumer Financial Protection 1700 G Street, NW Washington, DC 20552 Telephone: (202) 435-7265 Facsimile: (202) 435-7329 [email protected] [email protected] Leslie Rutledge ~ ~~~ Senior Assistant Attorney General Arkansas Attorney General's Office 323 Center Street, Suite 200 Little Rock, AR 72201 Telephone: (501) 682-8114 Facsimile: (501) 682-8118 [email protected] Case 4:19-cv-00565-BSM Document 1 Filed 08/14/19 Page 13 of 13
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JS44 (Rev.02/19) CIVIL COVER·SHEET J./; /q -c.v- 5~5- BSM The {S 44 civil ·bover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.) I. (a) PLAINTIFFS Bureau of Consumer Financial Protection and the State of Arkansas ex rel. Leslie Rutledge, Attorney General DEFENDANTS Andrew Gamber, Voyager Financial Group, LLC, BAIG, Inc., and SoBell Corp · (b) County of Residence ofFirst Listed Plaintiff County of Residence of First Listed Defendant Pulaski ------------ (EXCEPT IN U.S. PLAINTIFF CASES) ( C) Attorneys (Firm Name, Address, and Telephone Number) (See attachment) ( IN U.S. PLAINTIFF CASE~ Ol'(LY) NOTE:
IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED.
Attorneys (If Known) II. BASIS OF JURISDICTION (Place an "X"inOneBoxOnly) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an "X" in One Box for Plaintiff I I i'!f. I U.S. Government Plaintiff 0 2 U.S. Government Defendant • 3 Federal Question (U.S. Government Not a Party) • 4 Diversity (Indicate C:itizenship of Parties i11 Item III) IV. NATURE OF SUIT (Place an "JC" in One Box Only) CONTRACT TORTS· • 110 Insurance PERSONAL INJURY PERSONAL li"IJURY • 120 Marine • 310 Airplane • 365 Personal Injury - • 130 Miller Act • 3 15 Airplane Product Product Liability • 140 Negotiable Instrument Liability • ·367 Health Care/ 0 150 Recovery of Overpayment • 320 Assault, Libel & Pharmaceutical & Enforcement of Judgment Slander Personal Injury • 151 Medicare Act • 330 Federal Employers' Product Liability • 152 Recovery of Defaulted Liability • 368 Asbestos Personal Student Loans • 340 Marine Injury Product (Excludes Veterans) • 345 Marine Product Liability 0 153 Recovery of Overpayment Liability PERSONAL PROPERTY of Veteran's Benefits • 350 Motor Vehicle • 370 Other Fraud • 160 Stockholders' Suits • 355 Motor Vehicle • 371 Truth in Lending • 190 Other Contract Product Liability • 3 80 Other Personal 0 195 Contract Product Liability 0 360 Other Personal Property Damage • 196 Franchise Injury 0 385 Property Damage • 362 Personal Injury - Product Liability Medical Maloractice REAL PROPERTY .
CIVn..RIGBTS PRISONER PETITIONS 0 210 Land Condemnation 0 440 Other Civil Rights Habeas Corpus:
0 220 Foreclosure • 441 Voting • 463 Alien Detainee · 0 230 Rent Lease & Ejectrnent 0 442 Employment • 510 Motion_s to Vacate 0 240 Torts to Land 0 44 3 Housing/ Sentence • 245 Tort Product Liability Accommodations 0 5 30 General • 290 All Other Real Property • 445 Amer. w/Disabilities - 0 535 Death Penalty Employment Other:
0 446 Amer. w/Disabilities - 0 540 Mandamus & Other Other 0 550 Civil Rights • 448 Education • 555 Prison Condition • 560 Civil Detainee - Conditions of Confmement V. ORIGIN (P/acean "X"inOneBoxOnl_v) (For Diversity Cases On/;~ and One Box for Defendant) · PTF DEF .
PTF DEF Citizen of This State • I O I Incorporated or Principal Place • 4 • 4 Citizen of Another State FORFEITURE/PENALTY • 625 Drug Related Seizure of Property 21 use 881 • 690Other LABOR • 710 Fair Labor Standards Act 0 720 Labor/Management Relations 0 740 Railway Labor Act 0 751 Family and Medical Leave Act • 790 Other Labor Litigation • 791 Employee Retirement Income Security Act .
IMMJGRATION of Business In This State • 2 • Incorporated and Principal Place of Business In Another State • 5 -• 5 • 3 Foreign Nation • 6 • 6 Click here for· Nature of Suit Code Descriotions BANKRUPTCY OTHER STATUTES • 422 Appeal 28 USC 158 • 375 False Claims Act • 423 Withdrawal • 376 Qui Tam (31 USC 28 use 151 3729(a)) • 400 State Reapportionment PROPERTY RIGHTS • 410 Antitrust • 820 Copyrights • 430 Banks and Banking • 830 Patent • 450 Commerce 0 835 Patent - Abbreviated • 460 Deportation New Drug Application • 470 Racketeer Influenced and • 840 Trademark Corrupt Organizations SOCIAL SECURITY • 480 Consumer Credit • 861 HIA (1395ft) 0 485 Telephone Consumer • 862.Black Lung (923) Protection Act 0 863 DIWC/DIWW (405(g)) 0 490 Cable/Sat TV 0 864 SSID Title XVI 0 850 Securities/Commodities/ 0 865 RSI ( 405(g)) Exchange ~ 890 Other Statutory Actions 0 891 Agricultural Acts FEDERAL TAX SUITS 0 893 Env,ironmental Matters • 870 Taxes (U.S. Plaintiff 0 895 Freedom of Information or Defendant) Act 0 871 IRS-Third Party • 896 Arbitration 26 use 7609 • 899 Administrative Procedure Act/Review or Appeal of Agency Decision • 462 Naturalization Application 0 950 Constitutionality of • 465 Other Immigration State Statutes Actions ~ I Original O 2 Removed from Remanded from Appellate Court 0 4 Reinstated or O 5 Transferred from O 6 Multidistrict 0 8 Multidistrict Litigation - Direct File Proceeding State Court Reopened Another District Litigation - (specif_v) Transfer Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity): I 12 U.S.C § 5564(a)-(b) VI. CAUSE OF ACTION 1-B-n-.e-f-de-s-cn-·p""'ti_o_n-of_c__,a~us.,_e..,_: -'----------------------.------------- Violations of the Consumer Financial Protection Act and Arkansas Deceptive Trade Practices Act VII. REQUESTED IN COMPLAINT:
CHECK IF THIS IS A CLASS ACTION DEMAND$ CHECK YES only if demanded in complaint: VIII. RELATED CASE(S) IF ANY DATE 08/14/2019 FOR OFFICE USE ONL RECEIPT# AMOUNT UNDER RULE 23, F.R.Cv.P.
JURY DEMAND:
0 Yes )i!iNo (See instructions):
JUDGE DOCKET NUMBER SIGNATURE OF A TIOR..t'ffiY OF RECORD ,_.., APPL YING IFP JUDGE MAG.JUDGE Case 4:19-cv-00565-BSM Document 1-1 Filed 08/14/19 Page 1 of 3
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JS 44 Reverse (Rev. 02/19) INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44 Authority For Civil Cover Sheet The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney filing a case should complete the form as follows: l.(a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use only the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, giving both name and title.
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II.
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IV.
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V.
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Multidistrict Litigation - Direct File. (8) Check this box when a multidistrict case is filed in the same district as the Master MDL docket. PLEASE NOTE THAT THERE IS NOT AN ORIGIN CODE 7. Origin Code 7 was used for historical records and is no longer relevant due to changes in statue.
VI.
Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service VII.
Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P. Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction. Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded. VIII.
Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there are related pending cases, insert the docket numbers and the corresponding judge names for such cases.
Date and Attorney Signature. Date and sign the civil cover sheet.
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Cara Petersen, Acting Enforcement Director Jeffrey Paul Ehrlich, Acting Principal Deputy Enforcement Director Michael Salemi, Acting Deputy Enforcement Director Kara K. Miller, Assistant Litigation Deputy Attorneys to be noticed:
Benjamin Konop, Ohio Bar No. 0073458 Lane Powell, Mich. Bar No. P79432 Bureau of Consumer Financial Protection 1700 G Street, NW Washington, DC 20552 Telephone: (202) 435-7265 Email: [email protected] Email: [email protected] Leslie Rutledge, Arkansas Attorney General's Office Attorney to be noticed:
Kate Donoven, Ark. Bar No. 98189 Senior Assistant Attorney General Arkansas Attorney General's Office 323 Center Street, Suite 200 Little Rock, AR 72201 Telephone: (501) 682-8114 Email: [email protected] Case 4:19-cv-00565-BSM Document 1-1 Filed 08/14/19 Page 3 of 3
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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS
Bureau of Consumer Financial Protection, and the State of Arkansas ex rel. Leslie Rutledge, Attorney General,
Plaintiffs,
v.
Andrew Gamber, Voyager Financial Group, LLC, BAIC, Inc., and SoBell Corp.,
Defendants.
Case Number 4:19-CV-000565 BSM
STIPULATED FINAL JUDGMENT AND ORDER
Plaintiffs, the Bureau of Consumer Financial Protection (Bureau) and the State of Arkansas, ex rel. Leslie Rutledge, Attorney General (Arkansas), commenced this civil action on August 14, 2019, to obtain injunctive and monetary relief and civil penalties from Andrew Gamber, Voyager Financial Group, LLC, BAIC, Inc., and SoBell Corp. (Defendants). The Complaint alleges violations of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531, 5536(a), 5564, 5565, the Arkansas Deceptive Trade Practices Act (ADTPA), Ark. Code Ann. § 4-88-101, et seq., and the Arkansas Constitution as amended by Amendment 89, §3, in connection with Defendants’ brokering of contracts offering high-interest credit to consumers, including (1) misrepresenting to consumers that the contracts Defendants facilitated are valid and enforceable when, in fact, the contracts are void from inception because federal law prohibits agreements under which another person acquires the right to receive a veteran’s pension payments, 38 U.S.C. § 5301(a)(3)(C), and because South Carolina law, which governs the contracts, prohibits sales of unpaid earnings and prohibits assignments of pensions as security on payment of a debt, S.C. Code § 37-3-403; (2) misrepresenting to consumers that the offered Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 1 of 17
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product is a sale of payments and not a high-interest credit offer; (3) misrepresenting to consumers that they would receive funds from Defendants within a specified period when, in fact, many consumers would not receive funds by the specified date; and (4) failing to inform consumers of the applicable interest rate on the credit offer. Plaintiffs and Defendants agree to entry of this Stipulated Final Judgment and Order (Order), without adjudication of any issue of fact or law, to settle and resolve all matters in dispute arising from the conduct alleged in the Complaint. FINDINGS 1.
This Court has subject-matter jurisdiction over this action because it is brought under “[f]ederal consumer financial law,” 12 U.S.C. § 5565(a)(1), presents a federal question, 28 U.S.C. § 1331, and is brought by an agency of the United States, 28 U.S.C. § 1345. 2.
This Court has supplemental jurisdiction over Arkansas’s state-law claims because they are so related to the federal claims that they form part of the same case or controversy. 28 U.S.C. § 1367(a).
3.
This Court has personal jurisdiction over Defendants because they are located, reside, and do business in this district. 12 U.S.C. § 5564(f). 4.
Venue is proper because Defendants are located, reside, and do business in this district. 12 U.S.C. § 5564(f); 28 U.S.C. § 1391(b)-(c). 5.
Defendants neither admit nor deny any allegations in the Complaint, except as specified in this Order. For purposes of this Order, Defendants admit the facts necessary to establish the Court’s jurisdiction over them and the subject matter of this action. 6.
Defendants waive all rights to seek judicial review or otherwise challenge or contest the validity of this Order and any claim they may have under the Equal Access to Justice Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 2 of 17
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Act, 28 U.S.C. § 2412, concerning the prosecution of this action to the date of this Order. Each Party agrees to bear its own costs and expenses, including, without limitation, attorneys’ fees. 7.
Entry of this Order is in the public interest. DEFINITIONS 8.
The following definitions apply to this Order: a.
“Affected Consumer” includes consumers who entered into contracts related to their pension income streams that were brokered by Defendants between January 1, 2011 and December 31, 2017. b.
“Assisting Others” means helping, aiding, or providing support to others, including but not limited to:
i.
consulting in any form whatsoever;
ii.
formulating or providing, or arranging for the formulation or provision of, any advertising or marketing material, including but not limited to any telephone-sales script, direct-mail solicitation, or the text of any Internet website, email, or other electronic communication;
iii.
providing names of, or assisting in the generation of, potential customers; and iv.
participating in or providing services related to the offering, sale, or servicing of a product, or the collection of payments for a product.
c.
“Defendants” means the Individual Defendant and the Corporate Defendants, individually, collectively, or in any combination. Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 3 of 17
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i.
“Corporate Defendants” means Voyager Financial Group, LLC and its successors and assigns, BAIC, Inc. and its successors and assigns, and SoBell Corp. and its successors and assigns. ii.
“Individual Defendant” means Andrew Gamber and any other name by which he might be known.
d.
“Effective Date” means the date on which the Order is entered on the docket.
e.
“Enforcement Director” means the Assistant Director of the Office of Enforcement for the Bureau of Consumer Financial Protection, or his or her delegate.
f.
“Related Consumer Action” means a private action by or on behalf of one or more consumers or an enforcement action by another governmental agency brought against Defendants based on substantially the same facts as described in the Complaint.
g.
“Relevant Period” includes from January 1, 2011, through December 31, 2017.
ORDER CONDUCT RELIEF I. Permanent Ban IT IS ORDERED that:
9.
Defendants and their officers, agents, servants, employees, and attorneys, and all other persons in active concert or participation with them who have actual notice of this Order, whether acting directly or indirectly, are permanently enjoined from brokering, offering, and Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 4 of 17
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arranging agreements between pension-recipients and third parties under which the pensionrecipient purports to sell a future right to the income stream, or any portion of the income stream, from his or her pension. Defendants are also permanently enjoined from Assisting Others in engaging in such conduct.
MONETARY PROVISIONS II. Order to Pay Redress IT IS FURTHER ORDERED that:
10.
A judgment for monetary relief is entered in favor of the Bureau and against Defendants, jointly and severally, in the amount of $2.7 million for the purpose of providing redress to Affected Consumers; however, full payment of this judgment will be suspended upon satisfaction of the obligations in Paragraphs 11, 17, and 21 of this Order and subject to Section V of this Order.
11.
Within 90 days of the Effective Date, Defendants must pay to the Bureau by wire transfer to the Bureau or to the Bureau’s agent, and according to the Bureau’s wiring instructions, $200,000, in partial satisfaction of the judgment referenced in Paragraph 10 of this Order.
12.
With regard to any redress that Defendants pay under this Order, if Defendants receive, directly or indirectly, any reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, or if Defendants secure a tax deduction or tax credit with regard to any federal, state, or local tax, Defendants must: (a) immediately notify the Enforcement Director, and (b) within 10 days of receiving the funds or monetary benefit, Defendants must transfer to the Bureau the full amount of such funds or monetary benefit (Additional Payment) to the Bureau or to the Bureau’s agent according to the Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 5 of 17
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Bureau’s wiring instructions. After the Bureau receives the Additional Payment, the amount of the suspended judgment referenced in Paragraph 10 will be reduced by the amount of the Additional Payment and the Additional Payment will be applied toward satisfaction of the monetary judgment entered in Paragraph 10.
13.
Any funds received by the Bureau in satisfaction of this judgment will be deposited into a fund or funds administered by the Bureau or the Bureau’s agent according to applicable statutes and regulations to be used for redress for Affected Consumers, including but not limited to refund of moneys, restitution, damages, or other monetary relief, and for any attendant expenses for the administration of any such redress. 14.
If the Bureau determines, in its sole discretion, that redress to Consumers is wholly or partially impracticable or if funds remain after redress is completed, the Bureau shall deposit the remaining funds in its possession in the U.S. Treasury as disgorgement. Defendants will have no right to challenge any actions that the Bureau or its representatives may take under this section.
15.
Payment of redress to any Affected Consumer under this Order may not be conditioned on that Affected Consumer waiving any right. III. Order to Pay a Civil Money Penalty to the Bureau on Federal Claims IT IS FURTHER ORDERED that:
16.
Under § 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of the violations of law alleged in the Complaint and taking into account the factors in 12 U.S.C. § 5565(c)(3), Individual Defendant must pay a civil money penalty of $1 to the Bureau. Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 6 of 17
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17.
Within 10 days of the Effective Date, Individual Defendant must pay the civil money penalty by wire transfer to the Bureau or to the Bureau’s agent in compliance with the Bureau’s wiring office.
18.
The civil money penalty paid under this Order will be deposited in the Civil Penalty Fund of the Bureau as required by § 1017(d) of the CFPA, 12 U.S.C. § 5497(d). 19.
Individual Defendant must treat the civil money penalty paid under this Order as a penalty paid to the government for all purposes. Regardless of how the Bureau ultimately uses those funds, Individual Defendant may not:
a.
claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit for any civil money penalty paid under this Order; or b.
seek or accept, directly or indirectly, reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, with regard to any civil money penalty paid under this Order.
IV. Order to Contribute to the Consumer Education and Enforcement Fund in Lieu of Paying a Civil Money Penalty to Arkansas on Arkansas State Claims
IT IS FURTHER ORDERED that:
20.
In lieu of a civil money penalty, Defendants must pay $75,000 to the Arkansas Attorney General’s Consumer Education and Enforcement Fund. 21.
Within 90 days of the Effective Date, Individual Defendant must pay the Consumer Education and Enforcement Fund by wire transfer in compliance with the Attorney General’s wiring instructions, payable to the “State of Arkansas Consumer Education and Enforcement Fund,” addressed to the attention of the Chief Financial Officer, and reference this Order.
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22.
The money paid under this Order will be deposited in the Arkansas Attorney General’s Consumer Education and Enforcement Fund and used in accordance with Act 763 of 2013 for costs associated with the investigation and prosecution of this case. 23.
Individual Defendant must treat this contribution to the Arkansas Attorney General’s Consumer Education and Enforcement Fund as a penalty paid to Arkansas for all purposes. Regardless of how Arkansas ultimately uses those funds, Individual Defendant may not:
a.
claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit for any contribution to the Arkansas Attorney General’s Consumer Education and Enforcement Fund paid under this Order; or b.
seek or accept, directly or indirectly, reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, with regard to any contribution to the Arkansas Attorney General’s Consumer Education and Enforcement Fund paid under this Order.
V. Effect of Misrepresentation or Omission Regarding Financial Condition
IT IS FURTHER ORDERED that:
24.
The suspension of the judgment for redress entered in Section II of this Order is expressly premised on the truthfulness, accuracy, and completeness of the Financial Statement of Individual Defendant Andrew Gamber, including the attachments, signed on or about March 25, 2019 and submitted to Plaintiffs on or about March 25, 2019. 25.
If, upon motion by the Bureau or Arkansas, the Court determines that Individual Defendant has failed to disclose any material asset or that any of his financial statements contain Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 8 of 17
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material misrepresentations or omissions, the Court shall terminate the suspension of the judgment for redress entered in Section II and, without further adjudication, reinstate the judgment entered in Section II of this Order, and the full judgment for redress of $2.7 million shall be immediately due and payable, less any amounts previously paid to Plaintiffs under Section II of this Order.
26.
If the Court terminates the suspension of the judgment for redress under this section, Plaintiffs will be entitled to interest on the judgment, computed from the date of entry of this Order, at the rate prescribed by 28 U.S.C. § 1961, as amended, on any outstanding amounts not paid.
27.
If the Court terminates the suspension of the judgement for redress under this section, in all other respects this Order shall remain in full force and effect unless otherwise ordered by the Court, and proceedings instituted under this section would be in addition to, and not in lieu of, any other civil or criminal remedies as may be provided by law, including any other proceedings that either Plaintiff may initiate to enforce this Order. VI. Additional Monetary Provisions
IT IS FURTHER ORDERED that:
28.
In the event of any default on Individual Defendant’s obligations to make payment under this Order, interest, computed under 28 U.S.C. § 1961, as amended, will accrue on any outstanding amounts not paid from the date of default to the date of payment and will immediately become due and payable.
29.
Individual Defendant relinquishes all dominion, control, and title to the funds paid under this Order to the fullest extent permitted by law, and no part of the funds may be returned to Individual Defendant.
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30.
The facts alleged in the Complaint will be taken as true and be given collateral estoppel effect, without further proof, in any proceeding based on the entry of the Order, or in any subsequent civil litigation by or on behalf of the Bureau in a proceeding to enforce its rights to any payment or monetary judgment under this Order.
31.
Under 31 U.S.C. § 7701, Individual Defendant, unless he already has done so, must furnish to the Bureau his taxpayer-identifying numbers, which may be used for purposes of collecting and reporting on any delinquent amount arising out of this Order. 32.
Within 30 days of the entry of a final judgment, order, or settlement in a Related Consumer Action, Individual Defendant must notify the Enforcement Director and Arkansas in writing of the final judgment, order, or settlement. That notification must indicate the amount of redress, if any, that Individual Defendant paid or is required to pay to consumers and describe the consumers or classes of consumers to whom that redress has been or will be paid. 33.
To preserve the deterrent effect of the civil money penalty in any Related Consumer Action, Individual Defendant may not argue that it is entitled to, nor may Individual Defendant benefit by, any offset or reduction of any monetary remedies imposed in the Related Consumer Action because of the civil money penalty paid in this action. If the court in any Related Consumer Action offsets or otherwise reduces the amount of compensatory monetary remedies imposed against Individual Defendant based on the civil money penalty paid in this action or based on any payment that the Bureau makes from the Civil Penalty Fund, Individual Defendant must, within 30 days after entry of a final order granting such offset or reduction, notify the Bureau and pay the amount of the offset or reduction to the United States Treasury. Such a payment will not be considered an additional civil money penalty and will not change the amount of the civil money penalty imposed in this action. Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 10 of 17
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COMPLIANCE PROVISIONS
VII. Reporting Requirements IT IS FURTHER ORDERED that:
34.
Defendants must notify the Bureau and Arkansas of any development that may affect compliance obligations arising under this Order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor company; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; the filing of any bankruptcy or insolvency proceeding by or against Defendants; or a change in Defendants’ names or addresses. Defendants must provide this notice at least 30 days before the development or as soon as practicable after learning about the development, whichever is sooner.
35.
Within 7 days of the Effective Date, Defendants must: a.
designate at least one telephone number and email, physical, and postal address as points of contact, which the Bureau and Arkansas may use to communicate with Defendants;
b.
identify all businesses for which Defendants are the majority owner, or that Defendants directly or indirectly control, by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; c.
describe the activities of each such business, including the products and services offered, and the means of advertising, marketing, and sales; d.
identify Individual Defendant’s telephone numbers and all email, Internet, physical, and postal addresses, including all residences; and Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 11 of 17
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e.
describe in detail Individual Defendant’s involvement in any business for which he performs services in any capacity or which he wholly or partially owns, including Individual Defendant’s title, role, responsibilities, participation, authority, control, and ownership. 36.
Defendants must report any change in the information required to be submitted under Paragraph 35 at least 30 days before the change or as soon as practicable after learning about the change, whichever is sooner.
37.
Within 90 days of the Effective Date, and again one year after the Effective Date, Defendants must submit to the Enforcement Director and Arkansas an accurate written compliance-progress report sworn under penalty of perjury (Compliance Report), which, at a minimum:
a.
lists each applicable paragraph and subparagraph of the Order and describes in detail the manner and form in which Defendants have complied with each such paragraph and subparagraph of this Order; and b.
attaches a copy of each order acknowledgment obtained under Section VIII, unless previously submitted to Plaintiffs. VIII. Order Distribution and Acknowledgment IT IS FURTHER ORDERED that:
38.
Within 7 days of the Effective Date, Defendants must submit to the Enforcement Director and Arkansas an acknowledgment of receipt of this Order, sworn under penalty of perjury.
39.
Within 30 days of the Effective Date, Defendants (including Individual Defendant, for any business of which he is the majority owner or which he directly or indirectly Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 12 of 17
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controls) must deliver a copy of this Order to each of their board members and executive officers, as well as to any managers, employees, service providers, or other agents and representatives who have responsibilities related to the subject matter of the Order. 40.
For 5 years from the Effective Date, Defendants (including Individual Defendant, for any business of which he is the majority owner or that he directly or indirectly controls) must deliver a copy of this Order to any business entity resulting from any change in structure referred to in Section VII, any future employees, service providers, or other agents and representatives who will have responsibilities related to the subject matter of the Order before they assume their responsibilities.
41.
Defendants must secure a signed and dated statement acknowledging receipt of a copy of this Order, ensuring that any electronic signatures comply with the requirements of the E-Sign Act, 15 U.S.C. § 7001 et seq., within 30 days of delivery, from all persons receiving a copy of this Order under this section.
IX. Recordkeeping IT IS FURTHER ORDERED that:
42.
Defendants (including Individual Defendant, for any business of which he is the majority owner of that he directly or indirectly controls) must retain for 5 years from the Effective Date, the following business records:
a.
all documents and records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Bureau and Arkansas;
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b.
copies of all sales scripts; training materials; advertisements; websites; and other marketing materials relating to the subject of this Order, including any such materials used by a third party on behalf of Defendants; c.
for each individual Affected Consumer: the consumer’s name; address; phone number; email address; amount of the lump sum the consumer received; a copy of any promotional or welcome materials provided; and a copy of any contracts the consumer signed;
d.
for all contracts brokered by Defendants, accounting records showing the gross and net revenues generated; and e.
all consumer complaints and refund requests (whether received directly or indirectly, such as through a third party) related to contracts brokered by Defendants, and any responses to those complaints or requests. 43.
Defendants must make the documents identified in Paragraph 42 available to the Bureau and Arkansas upon request.
X. Notices IT IS FURTHER ORDERED that:
44.
Unless otherwise directed in writing by the Bureau, Defendants must provide all submissions, requests, communications, or other documents relating to this Order in writing, with the subject line, “In re Andrew Gamber, ENF Matter No. 2017-1908-02,” and send them by overnight courier or first-class mail to the below address and contemporaneously by email to [email protected]:
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Assistant Director for Enforcement Bureau of Consumer Financial Protection ATTENTION: Office of Enforcement 1700 G Street, N.W.
Washington D.C. 20552.
Arkansas Attorney General’s Office
ATTENTION: Consumer Protection Division 323 Center Street, Ste. 200 Little Rock, Arkansas 72201
XI. Cooperation with the Bureau and Arkansas IT IS FURTHER ORDERED that:
45.
Defendants must cooperate fully to help the Bureau and Arkansas determine the identity and location of, and the amount of injury sustained by, each Affected Consumer. Individual Defendant must provide such information in his or his agents’ possession or control within 14 days of receiving a written request from the Bureau or Arkansas. 46.
Defendants must cooperate fully with the Bureau and Arkansas in this matter and in any investigation related to or associated with the conduct described in the Complaint. Individual Defendant must provide truthful and complete information, evidence, and testimony. Individual Defendant must appear and must cause Defendants’ officers, employees, representatives, or agents to appear for interviews, discovery, hearings, trials, and any other proceedings that the Bureau or Arkansas may reasonably request upon 14 days written notice, or other reasonable notice, at such places and times as the Bureau or Arkansas may designate, without the service of compulsory process.
XII. Compliance Monitoring IT IS FURTHER ORDERED that:
47.
Within 14 days of receipt of a written request from the Bureau or Arkansas, Defendants must submit additional Compliance Reports or other requested non-privileged Case 4:19-cv-00565-BSM Document 9 Filed 09/04/19 Page 15 of 17
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information, which must be sworn under penalty of perjury; provide sworn testimony; or produce non-privileged documents.
48.
For purposes of this section, the Bureau and Arkansas may communicate directly with Defendants, unless Defendants retain counsel related to these communications. 49.
Nothing in this Order will limit the Bureau’s lawful use of compulsory process, under 12 C.F.R. § 1080.6, or Arkansas’s use of its subpoena power under Ark. Code Ann. §§ 4- 88-111 and 25-16-705.
XIII. Retention of Jurisdiction IT IS FURTHER ORDERED that:
50.
The Court will retain jurisdiction of this matter for the purpose of enforcing this Order.
XIV. Service IT IS FURTHER ORDERED that:
51.
This Order may be served upon Defendants by electronic mail, certified mail, or United Parcel Service, either by the United States Marshal, the Clerk of the Court, or any representative or agent of the Bureau or Arkansas.
IT IS SO ORDERED:
_________________________________ UNITED STATES DISTRICT JUDGE DATED: September 4, 2019
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/s/Benjamin Konop
Benjamin Konop Lane Powell
Attorneys for Plaintiff Bureau of Consumer Financial Protection
Kate Donoven
Attorney for Plaintiff State of Arkansas
/s/ Andrew Gamber
Andrew Gamber
Defendant Principal for Defendants Voyager Financial Group, LLC, BAIC, Inc., and SoBell Corp
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