LIST OF DEFENDANTS IN STATE AND CANADIAN PROVINCIAL CASES IN ADVANCE FEE LOAN CRACKDOWN

DEFENDANTS:
525125 B.C. LTD., d/b/a ALLIED CREDIT REFERRAL SERVICES
MICHAEL RICHARDSON
ENGLHIEBERTH S. SMITH
LOCATION: Richmond, British Columbia, Canada

NATURE OF BUSINESS: The complaint alleges that Allied Credit Referral Services advertises advance fee loans in papers and tabloids in the United States. Consumers call the defendants' telemarketers and are told that they are certain to be approved for a loan or have an excellent or good chance of being approved for a loan, but must pay an upfront fee to receive it. Allied then refers the consumers to a "turndown room," in some instances to defendants Gary Walton and Pinnacle (see above), and the consumers are refused the loan or credit and lose their upfront fees.

The Ministry of the Attorney General obtained an Order to Refrain from Dealing with Assets against Federal Express Canada Ltd., which requires Federal Express Canada Ltd. to hold any packages sent through Federal Express for the defendants and to turn those packages over to the Ministry. By taking this action, the Ministry is able to stop the flow of consumer funds sent to defendants from the United States into Canada.

STATUTES/RULES ALLEGEDLY VIOLATION: The British Columbia Trade Practice Act.

MEDIA CONTACTS: Donna Rita Cook, Public Relations Office of the Ministry of the Attorney General, Victoria, British Columbia, Canada, (250) 387-9548; filed in the Supreme Court of British Columbia, on January 6, 1998, Victoria Registry No. 98 0036.

DEFENDANTS:
AMERICAN HOME BUYERS ASSOCIATION, L.L.C.
FRESH START FINANCIAL MANAGEMENT, L.L.C.
MICHAEL A. CIMINO
LOCATION: Kansas City, Missouri

NATURE OF BUSINESS: Defendants advertise in newspapers and on the radio and television offering consumers home loans, credit checks and credit repair. Consumers pay for a credit check and then are told by defendants that they have been approved for a loan and must pay a fee of one month's gross income. Defendants guarantee that in exchange for one month's gross income, defendants will pay consumers' administrative closing costs in addition to 100% financing for their new homes. Consumers participating in defendants' "Program" rarely received an immediate loan and instead are informed, after paying the advance fee, that they had to qualify for a loan through defendants' lease-to-own program which might take up to two years. Defendants' criteria for refunds made it virtually impossible for consumers to get their money back.

STATUTES/RULES ALLEGEDLY VIOLATED: Missouri Credit Service Organization Act, The Credit Repair Organizations Act, Missouri's Loan Brokers Act, and The Missouri Merchandising Practices Act.

MEDIA CONTACTS: Scott Holste, Missouri Attorney General's Office, (573) 751-8844; filed in the Circuit Court of Jackson County, Missouri at Kansas City on November 7, 1997; Case No. CV97-28507.

DEFENDANTS:
BLUE SKY CREDIT
RB+ FINANCIAL
WADE CHASSIN
KEN CHASSIN
LOCATIONS: Arco, Idaho and Los Angeles, California

NATURE OF BUSINESS: Defendants are two companies and two individuals who purportedly offer to help consumers who are seeking debt consolidation and other consumer loans. Once consumers contact the companies, they are told that their loans are approved and that a processing fee of $25 to $400 must be paid to complete the application so that the check can be delivered. None of the companies ever granted or arranged a loan for their customers. The Idaho Department of Finance obtained cease and desist orders against all defendants.

STATUTES/RULES ALLEGEDLY VIOLATED: Idaho Loan Broker Act.

MEDIA CONTACTS: Kelly Robison, Financial Institutions Bureau, State of Idaho Department of Finance (208) 332-8002.