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Fed. Trade Comm'n v. Leshin, No. 09-11679

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By FindLaw Staff on September 06, 2010 7:19 PM

In Fed. Trade Comm'n v. Leshin, No. 09-11679, the Federal Trade Commission's suit against defendants for providing debt consolidation services in violation of the Federal Trade Commission Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act, the court affirmed the district court's judgment holding defendants in contempt for violating a stipulated injunction and ordering defendants to disgorge all fees collected in violation of the injunction, holding that 1) district court did not abuse its discretion by holding the defendants in contempt; 2) district court did not err by holding the counseling center in contempt, by holding defendants individually liable, or by holding the contempt defendants jointly and severally liable; 3) district court did not abuse its discretion by ordering disgorgement as the sanction for contempt or in calculating the amount to be disgorged; 4) district court issued civil contempt sanctions and did not violate the contempt defendants' right to due process; and 5) the provision of the final order of disgorgement that allows the Commission to convert unpaid balance into a money judgment is not ripe for review.


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