UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

FEDERAL TRADE COMMISSION

Plaintiff

v.

M.J.S. FINANCIAL SERVICES INC.,
a Georgia corporation;
RESOURCE TRAVEL SERVICE INC.,
a Georgia corporation;

MICHAEL JEROME SMITH, individually and
as an officer of M.J.S. Financial Services Inc.
and Resource Travel Service Inc.;
and
VALERIE RANGER, individually and
as an officer of Resource Travel Service Inc.,
Defendants.

Civil Action No.
1:97-CV-3087-ODE


STIPULATED FINAL JUDGMENT AND ORDER FOR PERMANENT INJUNCTION

Plaintiff, Federal Trade Commission ("FTC" or "Commission"), has filed a complaint pursuant to Sections 13(b) and 19 of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C.  53(b) and 57b, and Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C.  6105(b), charging the Defendants M.J.S. Financial Services Inc., Resource Travel Service Inc., Michael Jerome Smith and Valerie Ranger with violations of Section 5 of the FTC Act, 15 U.S.C.  45, and with violations of the FTC's Telemarketing Sales Rule, 16 C.F.R. Part 310.

The Commission and Defendants M.J.S. Financial Services Inc., Resource Travel Service Inc., Michael Jerome Smith and Valerie Ranger, by and through their counsel, have agreed to the entry of this Stipulated Final Judgment and Order for Permanent Injunction ("Final Judgment") by this Court in order to resolve all matters in dispute in this action. The Commission and Defendants M.J.S. Financial Services Inc., Resource Travel Service Inc., Michael Jerome Smith and Valerie Ranger have consented to entry of this Final Judgment without trial or adjudication of any issue of law or fact herein.

Being fully advised in the premises and acting upon the joint motion of the parties, Defendants M.J.S. Financial Services Inc., Resource Travel Service Inc., Michael Jerome Smith and Valerie Ranger and the Commission, to enter this Final Judgment, IT IS HEREBY ORDERED, ADJUDGED AND DECREED AS FOLLOWS:

FINDINGS

1. This Court has jurisdiction of the subject matter of this action and of all the parties hereto;

2. The Complaint states a claim upon which relief may be granted against Defendants M.J.S. Financial Services Inc., Resource Travel Service Inc., Michael Jerome Smith and Valerie Ranger under Sections 5, 13(b) and 19(a) of the FTC Act, 15 U.S.C.  45, 53(b) and 57b, and under Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C.  6105(b);

3. Venue in this district is proper under 28 U.S.C.  1391(b) and (c), and 15 U.S.C.  53(b);

4. Entry of this Final Judgment is in the public interest;

5. The acts and practices of Defendants M.J.S. Financial Services Inc., Resource Travel Service Inc., Michael Jerome Smith and Valerie Ranger were in or affecting commerce, as "commerce" is defined in Section 4 of the FTC Act, 15 U.S.C.  44;

6. Defendants M.J.S. Financial Services Inc., Resource Travel Service Inc., Michael Jerome Smith and Valerie Ranger have waived all claims under the Equal Access to Justice Act, 28 U.S.C.  2412, and all rights to seek judicial review or otherwise challenge or contest the validity of this Final Judgment; and

7. Except as provided in Paragraph V of this Final Judgment, the Final Judgment does not constitute and shall not be interpreted to constitute either an admission by Defendants or a finding by the Court of any facts, other than those set forth above, or that Defendants have engaged in violations of the FTC Act, the Telemarketing and Consumer Fraud and Abuse Prevention Act, or any other law.

DEFINITIONS

For purposes of this Final Judgment, the following definitions shall apply:

1. "Telemarketing" shall mean a plan, program, or campaign which is conducted to induce the purchase of goods or services by use of one or more telephones and which involves more than one interstate telephone call.

2. "Material" means likely to affect a person's choice of, or conduct regarding, goods or services.

3. "Final Judgment" means this Stipulated Final Judgment and Order for Permanent Injunction.

4. "Defendants" means M.J.S. Financial Services Inc., Resource Travel Service Inc., Michael Jerome Smith and Valerie Ranger.

ORDER

I.

IT IS THEREFORE ORDERED that Defendants are hereby permanently restrained and enjoined from telemarketing or causing others to telemarket.

II.

IT IS FURTHER ORDERED that Defendants are hereby permanently restrained and enjoined from obtaining or submitting or causing others to obtain or submit for payment a check, draft or other form of negotiable paper drawn on a person's checking, savings, share or similar account, without that person's signature on the negotiable instrument.

III.

IT IS FURTHER ORDERED that Defendants, in connection with the advertising, offering for sale, sale, or distribution of any extension of credit, are hereby permanently restrained and enjoined from:

A. Making, expressly or by implication, any false or misleading statement or representation that:

1. Anyone or any entity will provide consumers or arrange for consumers to receive credit cards;

2. Consumers' applications for credit cards have been approved; or

3. Consumers will receive credit cards regardless of their creditworthiness; and

B. Making, expressly or by implication, orally or in writing, any false or misleading statement or representation about, or failing to disclose any material fact relating to, the cost or conditions for receiving any extension of credit.

IV.

IT IS FURTHER ORDERED that Defendants are hereby permanently restrained and enjoined from providing to any person, except agents of the Commission or other law enforcement authorities, the name, address, telephone number, Social Security number or credit card or bank account number of any person who engaged in a telemarketing transaction with Defendants, their employees or agents.

V.

IT IS FURTHER ORDERED that Defendants shall, within five (5) business days after the date of entry of this Final Judgment, submit to the Commission a truthful sworn statement in the form shown in Appendix A to this Final Judgment, that shall reaffirm and attest to the truthfulness, accuracy, and completeness of the financial statements that Defendants previously submitted to the Commission. The Commission's agreement to, and the Court's approval of, this Final Judgment are expressly premised upon the truthfulness, accuracy, and completeness of these financial statements. If, upon motion by the Commission, this Court finds that any Defendant failed to file the sworn statements required by this Paragraph, or filed a financial statement that failed to disclose any material asset, or materially misrepresented the value of any asset, or made any other material misrepresentation in or material omission from the financial statement, the Commission may request that this Final Judgment be reopened for the purpose of requiring from that Defendant such equitable relief as this Court may deem appropriate; provided, however, that in all other respects this Final Order shall remain in full force and effect unless otherwise ordered by this Court; and provided further, that proceedings instituted under this provision are in addition to, and not in lieu of, any other civil or criminal remedies as may be provided by law, including other proceedings the Commission may initiate to enforce this Final Judgment. In any such enforcement proceeding, Defendants agree that the facts as alleged in the Complaint filed in this matter shall be taken as true in any subsequent litigation filed by the Federal Trade Commission to enforce its rights pursuant to this Final Judgement.

VI.

IT IS FURTHER ORDERED that, each party to this Final Judgment hereby agrees to bear its own costs and attorneys' fees incurred in connection with this action; provided, however, that Defendants shall pay Plaintiff's attorneys' fees to the extent previously ordered by the Court.

VII.

IT IS FURTHER ORDERED that, in order to facilitate the Commission's monitoring of compliance with the provisions of this Permanent Injunction, Defendants Michael J. Smith and Valerie Ranger shall, for a period of five (5) years commencing with the date of entry of this Final Judgment:

A. Notify the Commission in writing of any change in their residential addresses within ten (10) days of such change; and

B. Notify the Commission in writing within ten (10) days of undertaking any change in employment. Such notice shall include the name and address of each business that the reporting Defendant is employed by or working with, a statement of the nature of the business, and a statement of his or her duties and responsibilities in connection with the business.

VIII.

IT IS FURTHER ORDERED that, in order to facilitate the Commission's monitoring of compliance with the provisions of this Permanent Injunction, Defendants shall, for a period of five (5) years commencing with the date of entry of this Final Judgment:

A. Notify the Commission in writing at least thirty (30) days prior to the effective date of any proposed change in the structure of Defendant M.J.S. Financial Services Inc., Resource Travel Service Inc., or any business entity owned or controlled by Defendant Michael Jerome Smith and/or Defendant Valerie Ranger, such as the creation, incorporation, dissolution, assignment, sale, creation or dissolution of subsidiaries, or any other changes that may affect compliance obligations arising out of this Final Judgment;

B. After receiving reasonable notice from the Commission, permit duly authorized representatives of the Commission access during normal business hours to the offices of any business engaged in telemarketing owned or controlled in whole or in part by Defendants or either one of them to inspect and copy all documents and records relating in any way to any conduct subject to this Final Judgment;

C. Refrain from interfering with duly authorized representatives of the Commission who wish to interview the officers, directors, or employees of any business, engaged in telemarketing, owned or controlled in whole or in part by Defendants or either one of them with respect to any conduct subject to this Final Judgment;

D. Upon written request by any duly authorized representative of the Commission, submit written reports (under oath, if requested) and produce documents on thirty (30) days notice with respect to any conduct subject to this Final Judgment; and

E. Appear on fifteen (15) days notice for deposition with respect to any conduct subject to this Final Judgment.

IX.

IT IS FURTHER ORDERED that, within sixty (60) days after the date of entry of this Final Judgment, Defendants shall file a report with the Commission setting forth in detail the manner and form in which they have complied with this Final Judgment. This report shall include the current residence addresses for Defendants Michael Jerome Smith and Valerie Ranger and their employment status, including the name and business address of their current employer(s), if any, a statement of the nature of the business, and a statement of his or her duties and responsibilities in connection with the business.

X.

IT IS FURTHER ORDERED that all notices required of Defendants by this Final Judgment shall be mailed to the following address:

Director
Atlanta Regional Office
Federal Trade Commission
Suite 5M35, Midrise Building
60 Forsyth Street, SW
Atlanta, GA 30303-2322

XI.

IT IS FURTHER ORDERED that 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.

XII.

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for all purposes, including but not limited to the enforcement of compliance with the Final Judgment, or the punishment of violations thereof.

SO ORDERED, this ______ day of __________, 1998.

___________________________________
Honorable Orinda D. Evans
United States District Judge

The parties hereby stipulate and agree to the terms and conditions set forth above and consent to entry of this Final Judgment.

For Plaintiff Federal Trade Commission

Dated:
Chris M. Couillou (Georgia Bar No. 190062)
Attorney
Federal Trade Commission
Suite 5M35, Midrise Building
60 Forsyth Street, SW
Atlanta, Georgia 30303-2322
(404) 656-1353

For Defendants

Dated: Michael Jerome Smith, individually
and as the Chief Executive Officer of
M.J.S. Financial Services Inc. and Resource Travel Service Inc.

Dated:
Valerie Ranger, individually and
as an officer of Resource Travel Service Inc.

Dated:
E. Carl Touchstone (Georgia Bar No. 714740)
The Kendall Law Firm
Attorney for Defendants M.J.S. Financial Services Inc., Resource Travel Service Inc.,
Michael Jerome Smith and Valerie Ranger
1130 Cleveland Ave.
Atlanta, Georgia 30344
(404) 559-1446