IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF COLORADO 

Civil Action No. 09-cv-01853-CMA-BNB 

UNITED STATES OF AMERICA, 

Plaintiff, 

v. 

QUALITY TERMINAL SERVICES, LLC, a limited liability company, 

Defendant. 

STIPULATED FINAL JUDGMENT AND ORDER FOR CIVIL PENALTIES,
 

PERMANENT INJUNCTION, AND OTHER EQUITABLE RELIEF
 

Plaintiff, the United States of America, acting upon notification and authorization to the 

Attorney General by the Federal Trade Commission (“FTC” or “Commission”), is concurrently 

filing its Complaint, which alleges that Defendant Quality Terminal Services, LLC (“QTS”) has 

engaged in violations of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. §§ 1681-1681x, and 

in unfair or deceptive acts or practices in violation of Section 5 of the Federal Trade Commission 

Act (“FTC Act”), 15 U.S.C. § 45(a). The parties have agreed to the entry of this Stipulated Final 

Judgment and Order for Civil Penalties, Permanent Injunction, and Other Equitable Relief 

(“Order”) to resolve all matters in dispute in this action without trial or adjudication of any issue 

of law or fact herein and without Defendant admitting the truth of, or liability for, any of the 

matters alleged in the Complaint. Defendant has waived service of the Summons and Complaint. 

THEREFORE, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as 

follows: 

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FINDINGS
 

1.	 This Court has jurisdiction over the subject matter of this case and over Defendant QTS. 

2.	 Venue in this district is proper under 15 U.S.C. § 53(b), and under 28 U.S.C. § 1391(b)­

(c), and 1395(a). 

3.	 The Complaint states claims upon which relief may be granted against Defendant under 

Sections 5(a)(1), 13(b), and 16(a) of the FTC Act, 15 U.S.C. §§ 45(a)(1), 53(b), and 

56(a); and under Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a). 

4.	 Defendant makes no admission to the allegations in the Complaint, other than the 

jurisdictional facts. 

5.	 Defendant waives: (a) all rights to seek appellate review or otherwise challenge or contest 

the validity of this Order; (b) any claim Defendant may have against the Commission, its 

employees, representatives, or agents that relate to the matter stated herein; (c) all claims 

under the Equal Access to Justice Act, 28 U.S.C. § 2412, as amended by Pub. L. 104-121, 

110 Stat. 847, 863-64 (1996); and (d) any rights to attorneys’ fees that may arise under 

said provision of law. 

6.	 Entry of this Order is in the public interest. 

DEFINITIONS 

For purposes of this Order, the following definitions shall apply: 

1.	 “Fair Credit Reporting Act” or “FCRA” refers to 15 U.S.C. §§ 1681-1681x, as amended. 

2.	 “Adverse action,” “consumer,” “consumer report,” “consumer reporting agency,” and 

“employment purposes” mean the terms as defined in Section 603 of the FCRA, 15 

U.S.C.§ 1681a, as amended. 

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3. Unless otherwise specified, “Defendant” means Quality Terminal Services, LLC, and its 

successors and assigns. 

4.	 “Commerce” means as defined in Section 4 of the Federal Trade Commission Act, 15 

U.S.C. § 44. 

ORDER 

I. CIVIL PENALTY 

IT IS ORDERED that Defendant shall pay to Plaintiff a civil penalty, pursuant to 

Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a), in the amount of Fifty-Three Thousand 

Dollars ($53,000.00) as follows: 

A.	 Defendant shall make the payment required by Paragraph I within ten (10) 

business days of the date of entry of this Order by electronic fund transfer or 

cashier’s check in accordance with the instructions provided by the Office of 

Consumer Litigation, Civil Division, U.S. Department of Justice, Washington, 

D.C. 20530, for appropriate disposition; 

B.	 In the event of any default in payment, which default continues for ten (10) 

business days beyond the due date of payment, the entire unpaid penalty, together 

with interest, as computed pursuant to 28 U.S.C. § 1961, from the date of default 

to the date of payment, shall immediately become due and payable; 

C.	 This judgment represents a civil penalty owed to the United States Government 

and is not compensation for actual pecuniary loss, and, therefore, it is not subject 

to discharge under the Bankruptcy Code pursuant to 11 U.S.C. § 523(a)(7). 

Defendant agrees that the facts as alleged in the complaint filed in this action shall 

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be taken as true, without further proof, in any subsequent litigation filed by or on 

behalf of the Commission to collect any unpaid amount or otherwise enforce its 

rights pursuant to this Order. 

D.	 Proceedings initiated under this Part are in addition to, and not in lieu of, any 

other civil or criminal penalties that may be provided by law, including any other 

proceedings Plaintiff may initiate to enforce this Order. 

E.	 Defendant relinquishes all dominion, control, and title to the funds paid to the 

fullest extent permitted by law. Defendant shall make no claim to or demand 

return of the funds, directly or indirectly, through counsel or otherwise. 

II. PROHIBITED BUSINESS ACTIVITIES 

IT IS FURTHER ORDERED that Defendant and all other persons or entities within the 

scope of Fed. R. Civ. P. 65, whether acting directly or through any sole proprietorship, 

partnership, limited liability company, corporation, subsidiary, branch, division, or other entity, 

who receive actual notice of this Order by personal service or otherwise, are hereby permanently 

restrained and enjoined from the following: 

A.	 When using a consumer report for employment purposes, failing to provide a 

consumer to whom the consumer report relates, before taking adverse action 

against the consumer based in whole or in part on information contained in the 

consumer report, (1) a copy of the consumer report, and (2) a description in 

writing of the consumer’s rights under the FCRA, as required by Section 

604(b)(3) of the FCRA, 15 U.S.C. § 1681b(b)(3); 

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B. After taking adverse action against a consumer based in whole or in part on 

information contained in a consumer report, failing to provide to the consumer: 

(1) notice of the adverse action taken; (2) the name, address, and telephone 

number of the consumer reporting agency (including a toll-free telephone number 

established by the agency if the agency compiles and maintains files on consumers 

on a nationwide basis) from which the consumer report was obtained; (3) a 

statement that the consumer reporting agency did not make the decision to take 

the adverse action and is unable to provide the consumer the specific reasons why 

the adverse action was taken; and (4) notice of the consumer’s right (A) to obtain, 

under Section 612 of the FCRA, 15 U.S.C. § 1681j, within 60 days after receiving 

notice of the adverse action, a free copy of the consumer report from the consumer 

reporting agency from which the report was obtained, and (B) to dispute, under 

Section 611 of the FCRA, 15 U.S.C. § 1681i, with a consumer reporting agency 

the accuracy or completeness of any information in a consumer report furnished 

by the agency, as required by Section 615(a) of the FCRA, 15 U.S.C. § 1681m(a); 

and 

C.	 Failing otherwise to comply with Sections 604 and 615 of the FCRA, 15 U.S.C. 

§§ 1681b and 1681m, as they may be amended from time to time. 

III. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring and investigating 

compliance with any provision of this Order, 

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A. Within ten (10) days of receipt of written notice from a representative of the 

Commission, Defendant shall submit additional written reports, which are true 

and accurate and sworn to under penalty of perjury; produce documents for 

inspection and copying; appear for deposition; and/or provide entry during normal 

business hours to any business location in Defendant’s possession or direct or 

indirect control to inspect the business operation; 

B.	 In addition, the Commission is authorized to use all other lawful means, including 

but not limited to: 

1.	 obtaining discovery from any person, without further leave of court, using 

the procedures prescribed by Fed. R. Civ. P. 30, 31, 33, 34, 36, 45, and 69; 

2.	 posing as consumer to Defendant, its employees, or another other entity 

managed or controlled in whole or in part by Defendant, without the 

necessity of identification or prior notice; and 

C.	 Defendant shall permit representatives of the Commission to interview any 

employer, consultant, independent contractor, representative, agent, or employee 

who has agreed to such an interview, relating in any way to any conduct subject to 

this Order. The person interviewed may have counsel present. 

Provided, however, that nothing in this Order shall limit the Commission’s lawful use of 

compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1, to 

obtain any documentary material, tangible things, testimony, or information relevant to unfair or 

deceptive acts or practices in or affecting commerce (within the meaning of 15 U.S.C. § 45(a)(1)) 

or to any violation of the FCRA. 

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IV. COMPLIANCE REPORTING
 

IT IS FURTHER ORDERED that, in order that compliance with the provisions of this 

Order may be monitored: 

A.	 For a period of five (5) years from the date of entry of this Order, Defendant shall 

notify the Commission of any changes in structure of Defendant or any business 

entity that Defendant directly or indirectly controls, or has an ownership interest 

in, that may affect compliance obligations arising under this Order, including but 

not limited to: incorporation or other organization; a dissolution, assignment, 

sale, merger, or other action; the creation or dissolution of a subsidiary, parent, or 

affiliate that engages in any acts or practices subject to this Order; or a change in 

the business name or address, at least thirty (30) days prior to such change, 

provided that, with respect to any proposed change in the business entity about 

which Defendant learns less than thirty (30) days prior to the date such action is to 

take place, Defendant shall notify the Commission as soon as is practicable after 

obtaining such knowledge. 

B.	 One hundred eighty (180) days after the date of entry of this Order and annually 

thereafter for a period of five (5) years, Defendant shall provide a written report to 

the FTC, which is true and accurate and sworn to under penalty of perjury, setting 

forth in detail the manner and form in which it has complied and is complying 

with this Order. This report shall include, but not be limited to: 

1. A copy of each acknowledgment of receipt of this Order, obtained 

pursuant to the Section titled “Distribution of Order;” and 

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2. Any other changes required to be reported under Subsection A of this 

Section. 

C.	 Defendant shall notify the Commission of the filing of a bankruptcy petition by 

Defendant within fifteen (15) days of filing. 

D.	 For the purposes of this Order, Defendant shall, unless otherwise directed by the 

Commission’s authorized representatives, send by overnight courier all reports 

and notifications required by this Order to the Commission, to the following 

address: 

Associate Director for Enforcement 

Federal Trade Commission 

600 Pennsylvania Avenue, N.W., Room NJ-2122 

Washington, DC 20580 

RE: FTC v. Quality Terminal Services LLC 

Provided, that, in lieu of overnight courier, Defendant may send such reports or 

notifications by first-class mail, but only if Defendant contemporaneously sends 

an electronic version of such report or notification to the Commission at: 

DEBrief@ftc.gov. 

E.	 For purposes of the compliance reporting and monitoring required by this Order, 

the Commission is authorized to communicate directly with Defendant. Provided, 

however, nothing in this provision shall limit the Commission’s authority to pose 

as a consumer or supplier pursuant to Subsection B.2 of the Section titled 

“Compliance Monitoring.” 

V. RECORD KEEPING PROVISIONS 

IT IS FURTHER ORDERED that: 

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A. For a period of eight (8) years from the date of entry of this Order, Defendant and 

its agents, employees, officers, corporations, and those persons in active concert 

or participation with it who receive actual notice of this Order by personal service 

or otherwise, are hereby restrained and enjoined from failing to create and/or 

retain the following records: 

1.	 Files containing the names, addresses, telephone numbers, all disclosures 

and authorizations made pursuant to Section 604(b)(2) of the FCRA, and 

all materials provided to consumers by Defendant in connection with its 

compliance with Sections 604(b)(3) and 615(a) of the FCRA. 

2.	 Consumer complaints (whether received in written or electronic form, 

directly, indirectly, or through any third party), and any responses to those 

complaints, whether in written or electronic form, that relate to 

Defendant’s activities as alleged in the Complaint and Defendant’s 

compliance with the provisions of this Order. 

3.	 Copies of all training materials that relate to Defendant’s activities as 

alleged in the Complaint and Defendant’s compliance with the provisions 

of this Order. 

4.	 Copies of all subpoenas and other communications with law enforcement 

entities or personnel, whether in written or electronic form, if such 

documents bear in any respect on Defendant’s use of consumer reports for 

employment purposes. 

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5. All records and documents necessary to demonstrate full compliance with 

each provision of this Order, including but not limited to, copies of 

acknowledgments of receipt of this Order, required by the Sections titled 

“Distribution of Order” and “Acknowledgement of Receipt of Order” and 

all reports sumitted to the FTC pursuant to the Section titled “Compliance 

Reporting.” 

VI. DISTRIBUTION OF ORDER 

IT IS FURTHER ORDERED that, for a period of five (5) years from the date of service 

of this Order, Defendant shall deliver copies of this Order as directed below: 

A.	 Defendant must deliver a copy of this Order to (1) all of its principals, officers, 

directors, and managers; (2) all of its employees, agents, and representatives who 

engage in conduct related to the subject matter of the Order; and (3) any business 

entity resulting from any change in structure set forth in Subsection A of the 

Section titled “Compliance Reporting.” For current personnel, delivery shall be 

within five (5) days of service of this Order upon Defendant. For new personnel, 

delivery shall occur prior to them assuming their responsibilities. For any 

business entity resulting from any change in structure set forth in Subsection A of 

the Section titled “Compliance Reporting,” delivery shall be at least ten (10) days 

prior to the change in structure. 

B.	 Defendant must secure a signed and dated statement acknowledging receipt of the 

Order, within thirty (30) days of delivery, from all persons receiving a copy of the 

Order pursuant to this Section. 

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___________________________________ 

VII. ACKNOWLEDGMENT OF RECEIPT OF ORDER 


IT IS FURTHER ORDERED that Defendant, within five (5) business days of receipt of 

this Order as entered by the Court, must submit to the Commission a truthful sworn statement 

acknowledging receipt of this Order. 

VIII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for 

purposes of construction, modification, and enforcement of this Order. 

IX. COSTS AND ATTORNEYS’ FEES 

IT IS FURTHER ORDERED that each party shall bear its own costs and attorneys’ fees 

incurred in connection with this action. 

The parties hereby stipulate to the entry of the foregoing Order, which shall constitute a 

final Order in this action. 

IT IS SO ORDERED: 

Dated this _______day of __________________, 2009 

UNITED STATES DISTRICT JUDGE 

The parties, by their respective counsel, hereby consent to the terms and conditions of the 

stipulated Order as set forth above and consent to the entry thereof. Defendant waives any rights 

that may arise under the Equal Access to Justice Act, 28 U.S.C. § 2412, as amended by Pub. L. 

104-121, 110 Stat. 847, 863-64 (1996). 

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FOR THE UNITED STATES OF AMERICA:
 

TONY WEST 

Assistant Attorney General 

Civil Division 

DAVID M. GAOUETTE 

Acting United States Attorney 

District of Colorado 

s/ Lisa A. Christian 

LISA A.CHRISTIAN 

Assistant United States Attorney 

District of Colorado 

1225 Seventeenth Street, Suite700 

Denver, CO 80202 

303-454-0100 

EUGENE M. THIROLF 

Director 

KENNETH L. JOST 

Deputy Director 

Office of Consumer Litigation 

s Alan Phelps 

ALAN PHELPS 

Trial Attorney 

Office of Consumer Litigation 

U.S. Department of Justice 

PO Box 386 

Washington, D.C. 20044 

202-307-6154 

Alan.Phelps@usdoj.gov 

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FOR THE FEDERAL TRADE COMMISSION:
 

s/ Jessica Rich 

JESSICA RICH 

Acting Associate Director 

Division of Privacy and Identity Protection 

s/ Rebecca E. Kuehn 

REBECCA E. KUEHN 

Assistant Director 

Division of Privacy and Identity Protection 

s/ Sandra McCarthy 

SANDRA MCCARTHY 

Attorney 

s/ Molly Crawford 

MOLLY CRAWFORD 

Attorney 

Division of Privacy and Identity Protection 

Federal Trade Commission 

Washington, D.C. 20580 

Tel: (202) 326-2252 

Fax (202) 326-3768 

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FOR THE DEFENDANT: 

s/ Thomas G. Mandula 

THOMAS G. MANDULA, Manager 

Quality Terminal Services, LLC 

s/ Gary J. Benson 

GARY J. BENSON
 

Dworkin, Chambers, Williams, York, Benson & Evans, P.C.
 

3900 East Mexico Avenue
 

Suite 1300
 

Denver, Colorado 80210
 

Tel.: (303) 584-0990
 

Fax: (303) 584-0995
 

Attorney for Defendant
 

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REASONS FOR SETTLEMENT 

This statement accompanies the final order executed by defendant Quality Terminal 

Services, LLC. The final order enjoins Quality Terminal Services, LLC from violating Sections 

604 and 615 of the Fair Credit Reporting Act ("FCRA"), 15 U.S.C. §§ 168tb and 1681m. The 

final order requires that entry of a judgment in the amount of fifty-three thousand dollars 

($53,000) as a civil penalty be entered against defendant. 

Pursuant to Section 5(m)(3) of the Federal Trade Commission Act ("FTC Act"), as 

amended, 15 U.S.C. § 45(m)(3), the Commission hereby sets forth its reasons for settlement by 

entry of a Stipulated Final Judgment and Order for Civil Penalties, Permanent Injunction, and 

Other Equitable Relief ("final order"): 

On the basis of the allegations contained in the complaint, and the statutory factors in the 

FCRA and the FTC Act, the Commission believes that the civil penalty judgment of $53,000 

constitutes an appropriate amount on which to base the settlement, and that the provision 

enjoining defendants from violating Sections 604 and 615 of the FCRA should assure 

defendant’s future compliance with the law. With the entry of the final order, the time and 

expense of litigation will be avoided. 

For the foregoing reasons, the Commission believes that the settlement by entry of the 

attached final order is justified and well within the public interest.