IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ARIZONA

UNITED STATES OF AMERICA, Plaintiff,
v.
SUNBELT CONSTRUCTION CO., a corporation, Defendant.

Civil Action No.

CONSENT DECREE

WHEREAS: Plaintiff, the United States of America, has commenced this action by filing the Complaint herein; defendant has waived service of the Summons and Complaint; the parties have been represented by the attorneys whose names appear hereafter; and the parties have agreed to settlement of this action upon the following terms and conditions, without adjudication of any issue of fact or law and without defendant admitting liability for any of the matters alleged in the Complaint;

THEREFORE, on the joint motion of plaintiff and defendant, it is hereby ORDERED, ADJUDGED, and DECREED as follows:

1. This Court has jurisdiction of the subject matter and of the parties.

2. The Complaint states a claim upon which relief may be granted against the defendant under Sections 5(l), 9, 13(b) and 16(a) of the Federal Trade Commission Act, 15 U.S.C. 45(l), 49, 53(b) and 56(a).

CONSUMER REDRESS AND CIVIL PENALTIES

3. No later than three (3) days after the date of entry of this Consent Decree, defendant Sunbelt Construction Company shall:

A. Transfer all of its ownership interests in all bank accounts or accounts held by any financial entity, including but not limited to First Interstate Bank of Arizona Account Numbers 136017125 and 13621416, to the Federal Trade Commission and deposit these funds into an escrow account established and administered by the Federal Trade Commission, or its agent; and
 
B. Transfer all of its ownership interests in any other assets or property, including but not limited to the assets and property listed in Appendix A, to the Federal Trade Commission.

4. The Federal Trade Commission, or its agent, shall, to the extent practicable, liquidate all assets and property transferred by defendant and shall deposit the proceeds into the escrow account. Any remaining assets and property shall be disposed of in a manner determined by the Federal Trade Commission, in its sole discretion.

5. Funds in the escrow account, together with any accrued interest, shall be paid out in the following priority:

A. To any person or entity engaged by the Federal Trade Commission to liquidate assets and property transferred by defendant;
 
B. To any person or entity who, in the opinion of the Federal Trade Commission, or its staff, was a bona fide supplier of goods or services to Sunbelt Construction Company;
 
C. To the Federal Trade Commission for inclusion in a redress fund to be established in this matter.

6. The redress fund shall be used to provide direct redress to past purchasers of land who did not receive the improvements, amenities and facilities required under Part IV of the Commission order in Docket C-2903, as modified December 30, 1983, and to pay any attendant costs of administration. If the Federal Trade Commission determines, in its sole discretion, that redress to purchasers is wholly or partially impracticable, any funds not so used shall be paid to the United States Treasury as a monetary civil penalty pursuant to Section 5(l) of the FTC Act, 15 U.S.C.  45(l).

7. Defendant shall be notified as to how the funds in the escrow account and redress fund are disbursed, but shall have no right to contest the manner of distribution chosen by the Commission.

INJUNCTION

8. Defendant Sunbelt Construction Company, its successors and assigns, and its officers, agents, servants, employees and attorneys, and all persons in active concert or participation with any one or more of them who receive actual notice of this Consent Decree by personal service or otherwise, are hereby enjoined from ever violating, directly or through any corporation, subsidiary, division or other device, Parts I, II, III, V, VI, VII and VIII of the Commission order in FTC Docket No. C-2903, as modified December 30, 1983.

9. In the event the Commission order is hereafter modified, defendant's compliance with that order as so modified shall not be deemed a violation of this injunction.

PERSONS AFFECTED; CONTINUING JURISDICTION

10. Defendant Sunbelt Construction Company, its successors and assigns, shall, within thirty (30) days of the date of entry of this Consent Decree, provide a copy of this Consent Decree to each of its officers, agents, servants, employees and attorneys, secure from each such person a signed statement acknowledging receipt of a copy of this Consent Decree, and shall, within ten (10) days of complying with this paragraph, submit an affidavit to the Federal Trade Commission, by mailing a copy thereof, to the Associate Director for Enforcement, Bureau of Consumer Protection, Washington, D.C. 20580, setting forth the fact and manner of its compliance, including the name and title of each person to whom a copy of the Consent Decree has been provided.

11. Defendant Sunbelt Construction Company, its successors and assigns, shall, within thirty (30) days of the date of entry of this Consent Decree, transfer custody and control of all of its business records to the Federal Trade Commission. Defendant shall deliver these records to a location specified by the Federal Trade Commission, or its staff.

12. Defendant Sunbelt Construction Company, its successors and assigns, shall notify the Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580, at least thirty (30) days prior to any change in defendant's business including, but not limited to, merger, incorporation, dissolution, assignment, sale which results in the emergence of a successor corporation, the creation or dissolution of a subsidiary or parent, or any other change which may affect defendant's obligations under this Consent Decree.

13. This action and the relief awarded herein, is in addition to and not in lieu of other remedies as may be provided by law, including both civil and criminal remedies.

14. This Court shall retain jurisdiction of this matter for the purposes of enabling any of the parties to this Consent Decree to apply to the Court at any time for such further orders or directives as may be necessary or appropriate for the interpretation or modification of this Consent Decree, for the enforcement of compliance therewith, or for the punishment or redress of violations thereof.

JUDGMENT IS THEREFORE ENTERED in favor of plaintiff and against defendant, pursuant to all the terms and conditions recited above.

Dated this day of , 19 .

UNITED STATES DISTRICT JUDGE

The parties, by their respective counsel, hereby consent to the terms and conditions of the Consent Decree as set forth above and consent to the entry thereof. Defendant waives any rights that may arise under the Equal Access to Justice Act, 28 U.S.C. 2412.

FOR THE UNITED STATES OF AMERICA:

FRANK W. HUNGER
Assistant Attorney General
Civil Division
U.S. Department of Justice

JANET NAPOLITANO
United States Attorney

By:

Assistant United States Attorney
EUGENE THIROLF
Director
Office of Consumer Litigation

SHARON KURN
Attorney
Office of Consumer Litigation
Civil Division
U.S. Department of Justice
Washington, D.C. 20530

FOR THE FEDERAL TRADE COMMISSION:

DEAN GRAYBILL
Associate Director
for Enforcement

JUSTIN DINGFELDER
Assistant Director
for Enforcement

LOUISE R. JUNG
Special Assistant for Enforcement

JOSEPH J. KOMAN
Senior Attorney
Division of Enforcement
Bureau of Consumer Protection
Federal Trade Commission
601 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
(202) 326-2989

FOR THE DEFENDANT:

SUNBELT CONSTRUCTION COMPANY
a corporation

By: WILLIAM J. QUAID
President
Sunbelt Construction Company

GUST ROSENFELD
Attorneys for Defendant

By: TIMOTHY W. BARTON
A Member of the Firm