Government Enforcement Actions

December 23, 2014

Environmental services company National Water Main Cleaning Co. agreed to pay more than $650,000 to resolve claims it violated the Massachusetts False Claims Act by submitting false bills and records on multiple public contracts for sewer, storage tank and catch basin cleaning, maintenance and repair, and illegally discharged sewage and wastewater. The complaint also alleges the company violated the Massachusetts Clean Waters Act by discharging sewage and wastewater into the waters of the Commonwealth without a valid permit. MA

December 22, 2014

The FTC charged Your Yellow Book Inc., Brandie Michelle Law, Dustin Robert Law, and their father, Robert Ray Law with defrauding small businesses and nonprofits by charging them for online business directory listings they had not ordered or received – their deceptive tactics included unsolicited telemarketing calls and bogus invoices with the walking fingers image often associated with local yellow page directories. Defendants are banned from telemarketing, and they will pay $1.7 million to reimburse consumers who lost money to the scam. FTC

December 22, 2014

The U.S. District Court for the Northern District of Texas issued a supplemental Consent Order of Permanent Injunction requiring Steven Lyn Scott of Dallas, Texas, to pay a $700,000 civil monetary penalty and restitution of $766,625.30, plus post-judgment interest. An earlier Consent Order of the Court, entered on May 5, 2014, imposed a permanent trading and registration ban against Scott and prohibits him from violating provisions of the Commodity Exchange Act and CFTC regulations. CFTC

December 22, 2014

The CFTC ordered Deutsche Bank Securities Inc. to pay a $3 million penalty on charges of failing to properly invest customer segregated funds, failing to prepare and file accurate financial reports, failing to maintain required books and records, and for related supervisory failures. CFTC

December 22, 2014

Aspen Dental Management, Inc. and Aspen Dental Associates of New England, P.C. agreed to pay at least $990,000 to settle allegations of deceptive advertising and marketing practices, and failing to give refunds to consumers for services not provided. There are more than two dozen Aspen Dental locations in Massachusetts. MA

December 19, 2014

California Attorney General Kamala D. Harris announced that the California Department of Justice, along with the Attorneys General of the other 49 States and the District of Columbia, the Federal Trade Commission, and the Federal Communications Commission, reached settlements with T-Mobile USA, Inc. to resolve allegations that T-Mobile placed charges for third-party services on consumers’ mobile telephone bills that were not authorized by the consumer, a practice known as “mobile cramming.” The settlement terms require that T-Mobile pay at least $90M. Consumers who have been “crammed” often complain about charges, typically $9.99 per month, for “premium” text message subscription services (also known as “PSMS” subscriptions) such as horoscopes, trivia, and sports scores, that the consumers have never heard of or requested. T-Mobile is the second mobile telephone provider to enter into a nationwide settlement to resolve allegations regarding cramming. AT&T agreed to pay $105M to settle similar charges in October. CA

December 18, 2014

A federal district court for the Southern District of New York has ordered Royal Bank of Canada to pay civil monetary penalties of $35 million for engaging in more than 1,000 illegal wash sales, fictitious sales, and noncompetitive transactions over a three-year period.  CFTC

December 18, 2014

The CFTC has obtained a court order requiring AlphaMetrix, LLC, a Chicago-based Commodity Pool Operator and Commodity Trading Advisor, and its parent company AlphaMetrix Group, LLC to pay a combined $8.4 million in penalties, restitution, and disgorgement.  CFTC

December 18, 2014

Nine hotel operators in Massachusetts agreed to cease a potentially anticompetitive practice through which a hotel receives competitive room rates and occupancy information that can be used to raise or stabilize its own prices. Three of the operators agreed to pay a total of $45,000 in civil penalties. The hotels involved in the investigation included Morgans Hotel Group Management LLC, Pyramid Advisors, LP / Kimpton Hotel and Restaurant Group, LLC, HHLP Bulfinch Associates, LLC / Marriott International, Inc. / Omni Hotels Management Corporation / Pacific Boston Holdings Corp. / Seaport Hotel Limited Partnership / Starwood Hotels & Resorts Worldwide, Inc. MA

December 18, 2014

Freedom Furniture, Inc., Freedom Acceptance Corporation, Military Credit Services, LLC will pay more than $2.5M for violations of state and federal laws on credit and debt collection. Freedom Furniture is a national retailer that sells furniture, electronics, jewelry and other products online and at 14 retail locations near military bases, including one in North Carolina near Fort Bragg in Fayetteville. FAC services credit and collects debts on behalf of Freedom Furniture, and MCS extends credit for purchases made by military consumers at independent retailers. VA