UNITED STATES DISTRICT COURT FEDERAL TRADE COMMISSION, Plaintiff, vs. AMERAPRESS, INC., a corporation, VOXCOM SALES, LLC, a corporation, THE HOME BUSINESS GROUP, a corporation, LAWRENCE R. BIGGS, JR., individually and as an officer of AmeraPress, Inc. and of Voxcom Sales, LLC, KIM CROWTHER, individually and as an officer of The Home Business Group, and DONALD G. MCCLELLAN, individually and as an officer of AmeraPress, Inc. and of The Home Business Group and as a director of Voxcom Sales, LLC, Defendants. Civil Action No. COMPLAINT FOR INJUNCTION AND OTHER EQUITABLE RELIEF Plaintiff, the Federal Trade Commission ("FTC" or "the Commission"), for its complaint, alleges as follows: 1. The FTC brings this action under Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b), to secure a permanent injunction, preliminary injunctive relief, and other equitable relief, including rescission of contracts, restitution, and disgorgement, for defendants' unfair or deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). JURISDICTION AND VENUE 2. This Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 1331, 1337(a), and 1345, and 15 U.S.C. §§ 45(a) and 53(b). 3. Venue in the United States District Court for the Northern District of Texas is proper under 28 U.S.C. § 1391(b) and (c), and 15 U.S.C. § 53(b). THE PARTIES 4. Plaintiff, the Federal Trade Commission, is an independent agency of the United States Government created by statute. 15 U.S.C. § 41 et seq. The Commission is charged, inter alia, with enforcement of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or practices in or affecting commerce. The Commission is authorized to initiate federal district court proceedings to enjoin violations of the FTC Act and to secure consumer redress and such other equitable relief as may be appropriate in each case. 15 U.S.C. § 53(b). 5. Defendant AmeraPress, Inc. ("AmeraPress") is a Nevada corporation with its principal place of business at 203 S. Ector Drive, Euless, Texas 76040. AmeraPress offers for sale and sells business ventures involving the sale of pre-paid calendars, business cards, trading cards, and similar items to the public. AmeraPress has transacted business in the Northern District of Texas. 6. Defendant Voxcom, LLC ("Voxcom") is a Delaware corporation with its principal place of business at #250, 14990 Landmark Boulevard, Dallas, Texas 75240. Prior to defendant AmeraPress' incorporation in August, 1997, AmeraPress was a d.b.a. for Voxcom. Through its d.b.a. AmeraPress, Voxcom has offered for sale and sold business ventures involving the sale of pre-paid calendars, business cards, trading cards, and similar items to the public. Voxcom has transacted business in the Northern District of Texas. 7. Defendant The Home Business Group ("Home Business Group") is a Nevada corporation with its principal place of business at 321 N. Mall Drive, St. George, Utah 84790. Home Business Group offers for sale and sells business ventures for several home business opportunities, including AmeraPress. Home Business Group has transacted business in the Northern District of Texas. 8. The foregoing corporate defendants -- AmeraPress, Voxcom, and Home Business Group -- operate together as part of a common enterprise to offer for sale and sell business ventures involving the sale of pre-paid calendars, business cards, trading cards, and similar items to the public. 9. Defendant Lawrence R. Biggs, Jr. is the president and a director of defendants AmeraPress and Voxcom. At all times material to this complaint, acting alone or in concert with others, he has formulated, directed, controlled or participated in the acts and practices of the corporate defendants, including the acts and practices set forth in this complaint. In connection with the matters alleged herein, he has transacted business in the Northern District of Texas. 10. Defendant Kim Crowther is the president and a director of defendant Home Business Group. At all times material to this complaint, acting alone or in concert with others, he has formulated, directed, controlled or participated in the acts and practices of the corporate defendant, including the acts and practices set forth in this complaint. In connection with the matters alleged herein, he has transacted business in the Northern District of Texas. 11. Defendant Donald G. McClellan is a director and secretary/treasurer of AmeraPress, a director of Voxcom, and the vice president and secretary of Home Business Group. At all times material to this complaint, acting alone or in concert with others, he has formulated, directed, controlled or participated in the acts and practices of the corporate defendants, including the acts and practices set forth in this complaint. In connection with the matters alleged herein, he has transacted business in the Northern District of Texas. COMMERCE 12. At all times relevant to this complaint, defendants have maintained a substantial course of trade or business in the offering for sale and sale of pre-paid calendar, business card, and trading card business ventures, in or affecting commerce, as "commerce" is defined in Section 4 of the FTC Act, 15 U.S.C. § 44. DEFENDANTS' BUSINESS ACTIVITIES 13. Since at least July, 1996, defendants have been engaged in a common scheme to offer for sale and sell purportedly profitable pre-paid calendar, business card, and trading card business ventures to members of the public. Defendants have sent written materials to consumers inviting them to attend seminars located in hotels around the country at which the business ventures were discussed. In order to induce purchasers to invest substantial amounts of money, the defendants have represented at the seminars that these business ventures will be successful and highly profitable. Consumers were informed that they could earn from $20,000 to $100,000 annually by investing in the business. 14. Shortly after consumers purchased the business ventures, they received follow-up telephone calls from the defendants during which they were again told that they could make substantial earnings, as much as $200,000 a year, from their investments. As a result, they were induced to purchase significant additional amounts of products and advertising materials from the defendants. Individual consumers have spent from $1,800 to $10,000 on defendants' products and materials. VIOLATION OF SECTION 5 OF THE FTC ACT 15. In the course of offering for sale and selling pre-paid calendar, business card, and trading card business ventures, defendants have represented, expressly or by implication, that purchasers can reasonably expect to achieve a specific level of earnings. 16. In truth and in fact, in numerous instances, purchasers did not attain the specific level of earnings represented by the defendants. 17. Therefore, defendants' representations as set forth in Paragraph 15 are false and misleading and constitute deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). CONSUMER INJURY 18. Consumers in many areas of the United States have suffered substantial monetary loss as a result of defendants' unlawful acts or practices. Absent injunctive relief by this Court, defendants are likely to continue to injure consumers and harm the public interest. THIS COURT'S POWER TO GRANT RELIEF 19. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court to grant injunctive and other equitable relief, including consumer redress, disgorgement and restitution, to prevent and remedy any violations of any provision of law enforced by the Federal Trade Commission. 20. This Court, in the exercise of its equitable jurisdiction, may award other relief to remedy injury caused by defendants' law violations. PRAYER FOR RELIEF WHEREFORE, the Commission respectfully requests that this Court, as authorized by Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), and pursuant to its own equitable powers: (1) Award plaintiff such preliminary injunctive and ancillary relief as may be necessary to avert the likelihood of consumer injury during the pendency of this action and to preserve the possibility of effective final relief; (2) Enter judgment against the defendants and in favor of the plaintiff for each violation alleged in the complaint; (3) Permanently enjoin the defendants from violating the FTC Act, as alleged herein; (4) Award such relief as the Court finds necessary to redress injury to consumers resulting from the defendants' violations of the FTC Act, including but not limited to, rescission of contracts, the refunds of monies paid, and the disgorgement of ill-gotten monies; and (5) Award plaintiff the costs of bringing this action, as well as such other and additional relief as the Court may determine to be proper. Dated: , 1998. Respectfully submitted, DEBRA A. VALENTINE THOMAS B. CARTER ____________________________ Susan E. Arthur Attorneys for Plaintiff |