Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_08-cv-00908/USCOURTS-azd-2_08-cv-00908-4/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:0045 Federal Trade Commission Act

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Federal Trade Commission, 

Plaintiff, 

vs.

Handicapped & Disabled Workshops,

Inc., also formerly known as Handi-Tech

Company; Handi-Hope Industries, Inc.;

Handi-Ship, LLC; Bruce D. Peeples;

George Thomas; and Joshua D.

Abramson, 

Defendants. 

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No. CV-08-908-PHX-DGC

ORDER

Plaintiff Federal Trade Commission (“FTC”) filed a complaint alleging that

Defendants engaged in a fraudulent telemarketing scheme by, among other things, selling

common household products at exorbitant prices based on false statements that the sales

would help handicapped employees of Defendants, shipping unordered products to

consumers and subsequently mailing invoices demanding payment from the consumers,

harassing consumers through repeated and threatening phone calls and letters, and charging

consumers’ credit cards and bank accounts without authorization. Dkt. #3. The complaint

asserts violations of the Federal Trade Commission Act, the Telemarketing and Consumer

Fraud and Abuse Prevention Act, the FTC’s Telemarketing Sales Rules, and the Unordered

Merchandise Statute. Dkt. ##3, 48. The FTC seeks injunctive relief, rescission or

reformation of contracts, restitution, and disgorgement of ill-gotten monies. Id.

Case 2:08-cv-00908-DGC Document 71 Filed 10/28/09 Page 1 of 3
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The Court entered stipulated final judgments in favor of the FTC and against

individual Defendants Bruce Peeples, George Thomas, and Joshua Abramson. Dkt. ##52,

53, 54. 

The Court entered a stipulated preliminary injunction appointing attorney Matthew

Callister as the permanent receiver (“Receiver”) over Corporate Defendants Handicapped &

Disabled Workshops, Inc., Handi-Hope Industries, Inc., and Handi-Ship, LLC. Dkt. #29.

Following the entry of default judgment against Corporate Defendants (Dkt. #47), the Court

issued an order directing the Receiver to wind down Corporate Defendants and discharge the

receivership (Dkt. #55).

The Receiver filed a final report, accounting, and recommendations on March 25,

2009. Dkt. #56. Pursuant to certain orders (Dkt. ##58, 63, 66), the Receiver has filed a first

status report (Dkt. #64), a second status report (Dkt. #67), and a supplement to the second

status report (Dkt. #69). The Receiver also has filed an application for approval of receiver

fees (Dkt. #61) and a supplement to that application (Dkt. #68). On the basis of these filings

and the record as a whole, and for good cause appearing:

IT IS HEREBY ORDERED:

1. Due to its minimal monetary value, the remaining inventory held by the

Receiver shall be donated to appropriate charities.

2. From the $419,300.10 held in the Receivership Trust Account, the Receiver

may retain $10,000.00 (i) for the purpose of paying any future unemployment

tax liability relating to the filing of the 2008 unemployment tax returns for

Corporate Defendants, and (ii) for the purpose of paying CPA Charles Estes

for preparing said tax returns.

3. The Receiver’s application for receiver fees and costs (Dkt. ##61, 68) is

approved. The Receiver is awarded a total of $44,398.98. This amount shall

be paid from funds held in the Receivership Trust Account.

4. The remaining $364,901.12 in the Receivership Trust Account, and any

unused portion of the $10,000 retained by the Receiver for tax-related

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purposes, shall be provided to the FTC for ultimate satisfaction of claims.

Affected consumers and/or victims of Defendants’ misconduct shall be repaid

prior to the repayment of any trade creditors or other debts and liabilities

incurred by Corporate Defendants before May 15, 2008.

5. The Clerk is directed to terminate this action.

DATED this 28th day of October, 2009.

Case 2:08-cv-00908-DGC Document 71 Filed 10/28/09 Page 3 of 3