THE HONORABLE WALTER T. McGOVERN
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
FEDERAL TRADE COMMISSION, Plaintiff,
FORTUNA ALLIANCE, L.L.C., et al., Defendants.
Civ. No. C96-799M
STIPULATED FINAL JUDGMENT AND ORDER AS TO MONIQUE DELGADO
Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), has filed a complaint for a permanent injunction and other relief pursuant to Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. 53(b), naming as a defendant Monique Delgado and alleging violations of Section 5 of the FTC Act, 15 U.S.C. 45.
Monique Delgado and the Commission, by and through their respective counsel, have agreed to entry of this Order by this Court in order to resolve all matters in dispute between them in this action. Monique Delgado has consented to the entry of this Order without trial or adjudication of any issue of law or fact herein. NOW, THEREFORE, Monique Delgado and the Commission having requested the Court to enter this Order, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as follows:
A. This Court has jurisdiction of the subject matter of this action and the parties consenting hereto.
B. Entry of this Order is in the public interest.
C. Monique Delgado has waived all rights to seek judicial review or otherwise challenge or contest the validity of this Order.
D. This Order does not constitute and shall not be interpreted to constitute either an admission by Monique Delgado or a finding by the Court that Monique Delgado has engaged in violations of the FTC Act.
For purposes of this Order the following definitions apply:
A. "Multi-level marketing program" means any marketing strategy in which participants pay money to the program promoter in return for which program participants obtain the right to (1) recruit additional participants, or to have additional participants placed by the promoter or any other person into the program participant's downline, tree, cooperative, income center, or other similar program grouping; (2) sell goods or services; and (3) receive payment; PROVIDED the payments received by program participants are derived primarily from the sale or purchase of the goods or services, and not from recruiting additional participants nor having additional participants placed into the program participant's downline, tree, cooperative, income center, or other similar program grouping. For purposes of this Order, the phrase "goods or services" does not include a membership or opportunity to participate in another sales or marketing program.
B. "Chain or pyramid marketing program" is a sales device whereby a person, under a condition that he or she make a payment, is granted a license or right to recruit for consideration one or more additional persons who are also granted a license or right upon condition of making a payment, and may further perpetuate the chain or pyramid of persons who are granted a license or right upon such condition. A limitation as to the number of persons who may participate, or the presence of additional conditions affecting eligibility for the above license or right to recruit or the receipt of profits therefrom, does not change the identity of the program as a chain or pyramid marketing program.
C. "Person" means a natural person, organization or other legal entity, including a corporation, partnership, proprietorship, association, cooperative, government or governmental subdivision or agency, or any other group or combination acting as an entity.
D. "Assisting" means providing the means and instrumentalities for or otherwise facilitating any conduct that a defendant knows or should know violates any provision of Paragraph I or II of this Order. This includes, but is not limited to, formulating or providing or arranging for the formulation or provision of written or electronic promotional materials.
IT IS THEREFORE ORDERED that Monique Delgado, whether acting directly or through any business, entity, corporation, subsidiary, division, or other device, in or affecting commerce, as "commerce" is defined in the FTC Act, 15 U.S.C. 44, is permanently enjoined from engaging, participating, or assisting in any manner or capacity whatsoever in the advertising, promoting, offering for sale, or sale, of any chain or pyramid marketing program, except that Monique Delgado is not enjoined from engaging, participating, or assisting in multi-level marketing programs.
IT IS FURTHER ORDERED that Monique Delgado, whether acting directly or through any business, entity, corporation, subsidiary, division, or other device, in connection with the advertising, promoting, offering for sale, or sale of any marketing or investment program, in or affecting commerce, as "commerce" is defined in the FTC Act, is hereby permanently restrained and enjoined from making, or assisting another in making, directly or by implication, orally or in writing, any misrepresentation about any material fact, including, but not limited to, misrepresentations about earnings that program participants have actually made or can potentially make.
IT IS FURTHER ORDERED that Monique Delgado shall fully cooperate with the FTC and Fortuna Alliance L.L.C., Augustine Delgado, Libby Gustine Welch, and Donald R. Grant, in obtaining complete termination of the actions pending in any foreign courts, including Antigua. Neither party shall assert claims for fees, costs, or damages against any other party to the foreign actions for claims arsing out of those actions.
IT IS FURTHER ORDERED that for a period of three years from the date of entry of this Order, Monique Delgado shall notify the FTC in writing of any affiliation or employment with any new marketing or investment business, in commerce, as "commerce" is defined in the FTC Act, within 21 days of the commencement of that affiliation. Each notice shall include the defendant's then-current business and home address and phone number, and a statement of the nature of the new business or employment along with a description of her interest, duties, and responsibilities in the business or employment.
IT IS FURTHER ORDERED that Monique Delgado shall, within 180 days after the date of entry of this Order, file with the Court a report, in writing, setting forth the manner and form in which she has complied with this Order.
IT IS FURTHER ORDERED that all notices required of defendant by this Order shall be made to the following address:
Federal Trade Commission
915 Second Avenue, Suite 2896
Seattle, Washington 98174
IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for all purposes.
SO ORDERED, this _____ day of , 19__, at Seattle, Washington.
Hon. Walter T. McGovern
UNITED STATES DISTRICT JUDGE
The parties hereby consent to the terms and conditions set forth above and consent to entry of this Order without further notice to the parties. Monique Delgado hereby waives any right that may arise under the Equal Access to Justice Act, 28 U.S.C. 2412.
FEDERAL TRADE COMMISSION
Randall H. Brook
Charles A. Harwood
Attorneys for Plaintiff Federal Trade Commission
Ronald M. Gould, WSBA #6458
James F. Williams, WSBA #23613
1201 Third Avenue
Seattle, WA 98101
JUDD & SAILER, P.L.L.C.
Robert O. Sailer, WSBA #5430
Attorneys for Monique Delgado