Facts

The Federal Trade Commission filed a complaint for a permanent injunction and other equitable relief against Rincon Management Services LLC, and its two principal owners Jason Begley and Wayne Lunsford.

PLAINTIFF'S CONTENTIONS:
The FTC alleged deceptive acts or practices in violation of the Federal Trade Commission Act and the Fair Debt Collection Practices Act during the collection of consumer debt. Specifically, the FTC alleged defendants falsely claimed that a lawsuit had or would be filed against the consumers, that the consumer owed attorney fees or court costs, and they are subject to legal actions or arrest. The FTC also alleged improper communications with third parties, and a lack of meaningful disclosure of their identity during telephone calls.

DEFENDANT'S CONTENTIONS:
Defendant declined to admit or deny the allegations.

Result

According to a stipulation of entry of a final order for permanent injunction and monetary judgment, defendants are permanently restrained from debt collection practices, helping others engage in such activities, or advertising or selling commercial debt programs that use consumer information related to a debt or debt collection. Defendants agreed to pay $23,084,885 in equitable monetary relief. Also, Lunsford was required to pay a $134,000 contempt judgment for the proceeds he received when he sold his home in violation of the asset freeze.