MARY JO WHITE
United States Attorney
By: Silvia L. Serpe
Assistant United States Attorney
1 Saint Andrew's Plaza
New York, New York 10007
Tel: 212-637-2200

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA, Plaintiff,

v.

THE NAHDREE GROUP, LTD., a corporation, Defendant.

Civil Action No.

REQUEST FOR ENTRY OF CONSENT DECREE

Plaintiff, the United States of America, acting upon notification and authorization to the Attorney General by the Federal Trade Commission ("Commission"), and defendant The Nahdree Group, LTD., respectfully request that this Court enter the submitted Consent Decree.

The Consent Decree was signed by the parties in March, 1999. Subsequent to that signing but before the Consent Decree could be filed in this Court, the defendant filed Chapter 11 bankruptcy in the District of New Jersey (Case No. 99-37076-RG). Although most actions are automatically stayed by bankruptcy, there is a law enforcement exception to the automatic stay, which provides that the automatic stay provisions do not apply to "the commencement or continuation of an action or proceeding by a governmental unit . . . to enforce such governmental unit's or organization's police and regulatory power, including the enforcement of a judgment other than a money judgment, obtained in an action or proceeding by the governmental unit to enforce such governmental unit's or organization's police or regulatory power." 11 U.S.C. 362(b)(4). Thus, plaintiff could have filed the Consent Decree with the understanding that the provision in the Consent Decree requiring a monetary payment [Paragraph 3] would be subject to the automatic stay. Nonetheless, plaintiff postponed filing to allow time to consult with the Commission, the defendant, and the Chapter 11 trustee regarding the most efficient way to proceed.

After consultation with the Chapter 11 trustee, the parties have agreed that this Order can and should be entered now. Re-executing the Order to reflect the existence of the bankruptcy is unnecessary and would add costs and delay. The provision requiring payment within five days shall simply be treated as stayed and any payments shall be made in the context of the bankruptcy proceeding.

DATED:

DAVID W. OGDEN
Acting Assistant Attorney General
Civil Division
U.S. Department of Justice

OF COUNSEL:

ELAINE D. KOLISH
Associate Director
Division of Enforcement
Federal Trade Commission

MARY K. ENGLE
Assistant Director
Division of Enforcement
Federal Trade Commission

CONSTANCE M. VECELLIO
Attorney
Division of Enforcement
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
202-326-2966

FOR THE UNITED STATES OF AMERICA:

MARY JO WHITE
United States Attorney
Southern District of New York

By: _________________________
SILVIA L. SERPE (SS-1845)
Assistant U.S. Attorney
1 Saint Andrew's Plaza
New York, New York 10007
212-637-2704

EUGENE THIROLF
Director
Office of Consumer Litigation

By: ________________________
ELIZABETH STEIN
Attorney
Office of Consumer Litigation
Civil Division
U.S. Department of Justice
Washington, DC 20530
(202) 307-0486

DAVID W. OGDEN
Acting Assistant Attorney General
Civil Division
U.S. Department of Justice

FOR THE DEFENDANT:

NEVILLE, PETERSON & WILLIAMS
Attorneys for Defendant
80 Broad Street - 34th Floor
New York, New York 10004

By: __________________________
MARTIN J. NEVILLE, ESQ.
A Member of the Firm