case 2:13-cv-08843-JFW-PLA Doc~'!lertt'l Filed 12/03/13 Page 1 of 19 Page ID :1 

15 

16 

~ 

~~~ UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

17 "}:-l~ 2.-\ ~ 

18 FEDERAL TRADE COMMISSION, 1

· 

19 

20 

21 

Plaintiff, 

v. 

22 CREAM GROUP, INC., also d/b/a 

Terra Nova, TNT, Inc., and CRM, Inc., 

23 a California Corporation; · 

SAMI CHARCHIAN, also d/b/a Oro 24 Marketing, Inc., Modo, Modo Industry, 

25 Oro Max, Casa de Oro, Casa de Moda, 

Oro Mundo, and Natioll/Modo, 

26 individually and as an owner or director 

of Cream Group, Inc.; 

27 

28 

Complaint - 1 

COMPLAINT FOR PERMANENT· 

INJUNCTION AND OTHER 

EQUITABLE RELIEF 
ase 2:13-cv-08843-JF~-PLA Document 1 Filed 12/03/13) Page 2 of 19 Page ID :2 

1 JONATHAN E. NUECHTERLEIN 

General Counsel 

2 CHARLES A. HARWOOD 

RegiQnal Director 

3 LAURA M. SOLIS, W A State Bar No. 36005 

Email: lsolis@,ftc.gov 

4 KATHRYN C. DECKER, WA State Bar No. 12389 

Email: kdecker@,ftc.gov 

5 JULIE K. MAYER 

Email: jmayer@,ftc.gov 

6 F ederai Trade Commission 

915 Second Avenue, Suite 2896 

7 Seattle, WA 98174 

Phone: (206) 220-6350 

8 Facsimile: (206) 220-6366 

9 Local Counsel 

RAYMOND E. McKOWN, CA Bar No. 150975 

10 Email: rmckown@ftc.gov 

Federal Trade Commission 

11 10877 Wilshire Blvd., Suite 700 

Los Angeles,__ CA 90024 

12 Phone: (310, 824-4325 

Facsimile: (31 0) 824-4380 

13 

Attorneys for Plaintiff 

14 Federal Trade Commission 

15 nb +eQ \JUe 

16 -r-~~ UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

17 '2--l 

18 FEDERAL TRADE COMMISSION, 

19 

20 

21 

Plaintiff, 

v. 

22 CREAM GROUP, INC., also d/b/a 

Terra Nova, TNT, Inc., and CRM, Inc., 

23 a California Corporation; 

SAMI CHARCHIAN, also d/b/a Oro 24 MarkS!1ing, ln_e., M_QdO, Modo Industry, 

25 Oro Max, Casa de Oro, Casa de Moda, 

Oro Mundo, and Nation/Modo, 

26 individually and as an owner or director 

of Cream Group, Inc.; 

27 

28 

Complaint - 1 

~YJ}-88 43111¥l~ 

COMPLAINT FOR PERMANENT 

INJUNCTION AND OTHER 

EQUITABLE RELIEF 

lODGED 

C[LE'fll~crcouRT 

DE~22~3] ~NTRALOiSTRICT OF CALIFORNIA 

DEPUTY 
ase 2:13-cv-08843-JfV1-PLA Document 1 Filed 12/03/13) Page 3 of 19 Page ID :3 

1 JOHN CHARCHIAN, a/k/a Djahan_gir Charchian and J ahangir John Charcliian, 

2 also d/b/a Oro Marketing, Inc., Modo, 

Modo Industry, Oro Max, Cas a de Oro, 

3 Casa de Moda, Oro Mundo, and 

Nation/Modo, individually and as an 

4 owner or director of Cream Group, Inc.; 

and 

5 

NORMA RAE RAMOS, individually 

6 and as officer and director of Cream 

Group, Inc., 

7 

8 

9 

10 

11 

Defendants. 

Plaintiff, the Federal Trade Commission ("FTC"), for its Complaint 

alleges: 

12 

1. The FTC brings this action under Sections 13(b) and 19 ofthe 

13 

Federal Trade Commission Act C~FTC Act"), 15 U.S.C. §§ 53(b) and 57b, and the 

14 Telemarketing and Consumer Fraud and Abuse Prevention Act ("Telemarketing 

15 Act"), 15 U.S.C. §§ 6101-6108, to obtain temporary, preliminary, and permanent 

16 injunctive relief, rescission or reformation of contracts, restitution, the refund of 

17 

monies paid, disgorgement of ill-gotten monies, and other equitable relief for 

18 

Defendants' acts or practices in violation of Section 5(a) of the FTC Act, 15 

19 

U.S.C. § 45(a), and in violation of the FTC's Telemarketing Sales Rule ("TSR"), 

20 16.C.F.R. Part 310. 

21 

22 

23 

24 

JURISDICTION AND VENUE 

2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. 

§§ 1331, 1337(a), and 1345, and 15 U.S.C. §§ 45(a), 53(b), 57b, 6102(c), and 

6105(b). 

__ 2_5_ ----- -T:----venmnsp.toper in this district under 28 U;S.C. § 139l(b)(1)-(3), 

26 (c)(1)-(3), and (d), and 15 U.S.C. § 53(b). 

27 

28 

Complaint - 2 
ase 2:13-cv-08843-fFY,-PLA Document 1 Filed 12/03/13) Page 4 of 19 Page ID :4 

1 PLAINTIFF 

2 4. The FTC is an independent agency of the United States Government 

3 created by statute. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the 

4 FTC Act, 15 U.S.C. § 45(a), which prohibits unfair and deceptive acts or practices 

5 · in or affecting commerce. The FTC also enforces the Telemarketing Act, 15 

6 U.S.C. §§ 6101-6108. Pursuant to the Telemarketing Act, the FTC promulgated 

7 and enforces the TSR, 16 C.F .R. Part 310, which prohibits deceptive and abusive 

8 telemarketing acts or practices. 

9 5. The FTC is authorized to initiate federal district court proceedings, 

10 by its own attorneys, to enjoin violations of the FTC Act and the TSR, and to 

11 secure such equitable relief as may be appropriate in each case, including 

12 rescission or reformation of contracts, restitution, the refund of monies paid, and 

13 the disgorgement of ill-gotten monies. 15 U.S.C. §§ 53(b), 56(a)(2)(A)-(B), 57b, 

14 6102(c), and 6105(b). 

15 DEFENDANTS 

16 6. Defendant CREAM GROUP, INC. ("Cream Group"), also doing 

17 business as Terra Nova, TNT, Inc., and CRM, Inc., is a California corporation 

18 with its office and principal place of business at 14037 Vanowen St., Van Nuys, 

19 California 91405. Cream Group transacts or has transacted business in this 

20 district and throughout the United States. 

21 7. Defendant SAMI CHARCHIAN, also doing business as Oro 

22 Marketing, Inc., Modo, Oro Max, Casa de Oro, Casa de Moda, Oro Mundo, and 

23 Nation/Modo, owns, directs, or otherwise controls Cream Group. At all times 

24 material to this Complaint, acting alone or in concert with others, Defen~(l_nt Sami __ --- ----- ------------

25 Charchian has formulated, directed, controlled, had the authority to control, or 

26 participated in the acts and practices set forth in this Complaint, including the acts 

27 and practices of Cream Group. Defendant Sami Charchian is or has been a 

28 

Complaint - 3 
ase 2:13-cv-08843-J€0-PLA Document 1 Filed 12/03/13 ')Page 5 of 19 Page ID :5 

1 signatory on bank accounts in the names of Cream Group and Oro Marketing, 

2 Inc., into which consumer funds have been deposited, and has initiated or 

3 authorized payments or transfers from these accounts to persons or entities in 

4 apparent furtherance of the acts or practices set forth in this Complaint. He has 

5 also arranged for the telephone and courier services used in co!l..nection with 

6 Defendants' business in apparent furtherance of the acts or practices set forth in 

7 this Complaint. Defendant Sami Charchian resides or has resided in this district 

8 and, in connection with the matters alleged herein, transacts or has transacted 

9 business in this district and throughout the United States. 

10 8. Defendant JOHN CHARCHIAN, a/k/a Djahangir'Charchian and 

11 Jahangir Johri Charchian, also doing business as Oro Marketing, Inc., Modo, Oro 

12 Max, Casa de Oro, Casa de Moda, Oro Mundo, and Nation/Modo, owns, directs, 

13 or otherwise controls Cream Group. At all times material to this Complaint, 

14 acting alone or in concert with others, Defendant John Charchian has formulated, 

15 directed, controlled, had the authority to control, or participated in the acts and 

16 practices set forth in this Complaint, including the acts and practices of Cream 

17 Group. He has initiated or authorized payments or transfers from bank accounts 

18 in the name of Cream Group and Oro Marketing, Inc., into which consumer funds 

19 have been deposited, to persons or entities in apparent furtherance of the acts or 

20 practices set forth in this Complaint. He is one of the owners ofDefendants' 

21 business premises at 1403 7 Van owen St., Van Nuys, California 91405. 

22 Defendant John Charchian resides or has resided in this district and, in connection 

23 with the matters alleged herein, transacts or has transacted business in this district 

24 and throughout the United States. 

25 9. Defendant NORMA RAE RAMOS is the president, chief executive 

26 officer, secretary, chief financial officer, director, and registered agent for Cream 

27 Group. At all times material to this Complaint, acting alone or in concert with 

28 

Complaint - 4 
ase 2:13-cv-08843-J~0-PLA Document 1 Filed 12/03/13,) Page 6 of 19 Page ID :6 

1 others, Defendant Norma Rae Ramos has formulated, directed, controlled, had the 

2 authority to control, or participated in the acts and practices of Cream Group, 

3 including the acts and practices set forth in this Complaint. Defendant Norma 

4 Rae Ramos is or has been a signatory on bank accounts in the name of Cream 

5 Group into which consumer funds have been deposited and from which payments 

6 have been initiated or authorized to persons or entities in apparent furtherance of 

7 the acts or practices set forth in this Complaint. Defendant Norma Rae Ramos 

8 resides or has resided in the state of California and, in connection with the matters 

9 alleged herein, transacts or has transacted business in this distt:ict and throughout 

10 the United States. 

11 COMMERCE 

12 10. At all times relevant to this Complaint, Defendants have maintained 

13 a substantial course of trade in or affecting commerce, as "commerce" is defined 

14 in Section 4 of the FTC Act, 15 U.S.C. § 44. 

15 DEFENDANTS' BUSINESS PRACTICES 

16 11. Defendants telemarket the opportunity to buy what they claim is 

17 popular brand-name merchandise at wholesale prices. Defendants primarily 

18 target Hispanic women across the United States for their unsolicited 

19 telemarketing sales calls and employ telemarketers who conduct the calls in 

20 Spanish. Promising brand-name merchandise that consumers can resell for a 

21 profit in their communities and to friends and family, Defendants' telemarketers 

22 convince consumers to pay between $400 and $490 for a cash-an-delivery 

23 ("COD") shipment. Instead of the promised goods, Defendants send cheap, poor24 quality merchandise. If consumers call to complain, Defendants' representatives --

. 25 tell them that the company made a mistake and will send another shipment 

26 containing the promised brand-name merchandise, along with a refund check for 

27 the first shipment, if the consumer pays between $400 and $490 for the next COD 

28 

Complaint - 5 
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ase 2:13-cv-08843-Jf\AJ-PLA Document 1 Filed 12/03/13 ')Page 7 of 19 Page ID :7 

shipment. Consumers who pay for additional COD shipments receive only more 

shoddy merchandise and no refunds. Defendants' representatives often threaten 

consumers who refuse to accept and pay for additional shipments with phony 

lawsuits, fines, garnishment, and damage to their credit history. In some 

instances. .. Defendants' renresentatives ~ - ·- .. --- also threaten consumers with arrest or 

referral to immigration authorities. 

12. Since 2009, Defendants Sami Charchian and John Charchian have 

used various d/b/as, including Oro Marketing, Inc., Modo, Oro Max, Casa de Oro, 

Casa de Moda, Oro Mundo, and Nation/Modo, to deceptively market and sell 

their merchandise to consumers. After Defendant Cream Group was incorporated 

in 2011, Defendants began using different dlb/as, including Terra Nova, TNT, 

Inc., and CRM, Inc., to deceptively market and sell their merchandise to 

consumers. 

13. Defendants' telemarketers typically first contact consumers by cold 

calling them at home and offering them the chance to purchase a variety of 

merchandise-often clothing, lingerie, purses, and perfumes-at deeply discounted 

prices. Defendants' telemarketers tell consumers that the merchandise is from 

popular and well-known brands, including Abercrombie & Fitch, Aeropostale, 

American Eagle, .Ahnani, Banana Republic, Bebe, Bulgari, Carolina Herrera, 

Chanel, Coach, Diesel, Dolce & Gabbana, GAP, Gucci, Guess, Hollister, Hugo 

Boss, Lacoste, Levi Strauss, Luis Vuitton, Obsession, Prada, Ralph Lauren, 

Tommy Hilfiger, Victoria's Secret, and YSL. Defendants' telemarketers claim 

that consumers can purchase a shipment of such merchandise at a reduc~d 

"wholesale" or discount price, and typically quote a price between $400 and 

$490. Defendants' telemarketers claim that consumers can use the merchandise 

themselves or resell it for a profit in their communities and to their friends and 

family. 

Complaint - 6 
ase 2:13-cv-08843-J~~-PLA Document 1 Filed 12/03/13 ) Page 8 of 19 Page ID :8 

1 14. Once consumers agree to order a shipment of merchandise, 

2 Defendants' telemarketers tell them that the merchandise will be shipped, COD, 

3 by United Parcel Service ("UPS") or Federal Express ("FedEx"). Defendants' 

4 telemarketers instruct consumers to give the delivery driver a money order as 

5 oavment when the shinment is delivered. Defendants olace labels on each ... .. ~ ... 

6 package that instruct the delivery driver not to allow the consumer to open the 

7 package until after she has paid the driver with her money order; For example, 

8 Defendants' labels often state "ATTENTION: UPS DRIVER ... PLEASE DO 

9 NOT LET RECIPIENT OPEN BOX WITHOUT GETTING MONEY ORDER 

10 FIRST." 

11 15. After consumers pay the delivery drivers with their money orders 

12 and open Defendants' packages, they discover that Defendants have not sent the 

13 promised, brand-name merchandise, but generic-brand or unlabeled products of 

14 poor quality. In many cases, the merchandise consumers receive is of an entirely 

15 different type than the merchandise the consumer ordered. Some consumers have 

16 described the merchandise they receive as "junk." 

17 16. When consumers call the company to report that they have not 

18 received the promised merchandise, Defendants' representatives typically say that 

19 the wrong merchandise was sent by mistake. Defendants' representatives claim 

20 that the company will send another COD package containing the correct 

21 merchandise along with a check refunding the entire cost of the first shipment. 

22 Defendants' representatives tell consumers to give a second money order, 

23 typically for between $400 and $490, to the delivery driver when the second 

24 shipment arrives. 

25 17. Relying on Defendants' promises, some consumers agree and pay for 

26 another COD shipment. Upon paying for and receiving the second shipment, 

27 however, consumers discover that, once again, Defendants have sent only poor28 

Complaint - 7 
,~-.... ""h 

ase 2:13-cv-08843-JF\1\}PLA Document 1 Filed 12/03/13 ) Page 9 of 19 Page ID :9 

1 quality and generic-brand or unlabeled merchandise and have failed to include a' 

2 refund check as promised. Defendants deceive some consumers into paying even 

3 more money by continuing to make refund promises and instructing consumers to 

4 make additional payments, typically for between $400 and $490. As before, 

5 Defendants' subsequent shipments to these consumers contain only more poor6 quality and generic-brand or unlabeled merchandise and do not contain refund 

7 checks. 

8 18. In many instances, Defendants' representatives threaten or intimidate 

9 consumers who refuse to accept and pay for additional shipments. Defendants' 

10 representatives often tell these consumers that the company has filed or will file 

11 lawsuits against them and provide a fake date and location for the hearing. 

12 Defendants' representatives further tell consumers that they are required to appear 

13 at a' courthouse with two government-issued IDs, that they may be charged 

14 thousands of dollars in fines and have their wages, bank accounts, or tax refunds 

15 garnished if they do not appear for the hearing, and that their credit history will be 

16 damaged if they refuse to pay more money. In some instances, Defendants' 

17 representatives have threatened consumers with arrest or referral to immigration 

18 authorities. 

19 19. Defendants typically do not refund consumers' money. Consumers 

20 who persist in attempting to obtain refunds from Defendants are ignored or told 

21 they must first return the merchandise shipped in error using return labels that 

22 Defendants will send only after consumers pay an additional amount of between 

23 $400 and $490. 

24 VIOLATIONS OF THE FTC ACT 

25 20. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits unfair or 

26 deceptive acts or practices in or affecting commerce. 

27 

28 

Complaint - 8 
ase 2:13-cv-08843-J{w)PLA Document 1 Filed 12/03/13 ')Page 10 of 19 Page ID :10 

1 21. Misrepresentations or deceptive omissions of material fact constitute 

2 deceptive acts or practices prohibited by Section 5(a) of the FTC Act. 

3 COUNTI 

4 Deceptive Representations in the Sale of Merchandise 

5 22. In numerous instances in connection with the advertising, marketing, 

6 promotion, offering for sale, or sale of merchandise to consumers, Defendants 

7 have represented, directly or indirectly, expressly or by implication, that 

8 consumers who purchase merchandise from Defendants will receive well-known, 

9 brand-name merchandise at low or wholesale prices. 

1 0 23. In truth and in fact, in numerous instances in which Defendants have 

11 made the representations set forth in Paragraph 22 ofthis Complaint, consumers 

12 who purchase merchandise from Defendants do not receive well-known, brand13 name merchandise at low or wholesale prices. 

14 24. Therefore, Defendants' representations as set forth in Paragraph 22 

15 of this Complaint are false and misleading and constitute deceptive acts or 

16 practices in violation of Section 5(a) ofthe FTC Act, 15 U.S.C. § 45(a). 

17 

18 

COUNT II 

Deceptive Representations Regarding Refunds 

19 25. In numerous instances, in connection with the advertising, 

20 marketing, promotion, offering for sale, or sale of merchandise to consumers, 

21 Defendants have represented, directly or indirectly, expressly or by implication, 

22 that consumers who pay for and accept receipt of additional shipments from 

23 Defendants will receive the well-known, brand-name merchandise consumers 

24 ordered, along with a refund of the amount they paid to Defendants. ---------·-- --------------

25 26. In truth and fact, in numerous instances in which Defendants have 

26 made the representations set forth in Paragraph 25 of this Complaint, consumers 

27 who pay for and accept receipt of additional shipments from Defendants received 

28 

Complaint - 9 
ase 2:13-cv-08843-JFW):>LA Document l Filed 12/03/13 '}'age 11 of 19 Page ID :11 

1 neither the well-known, brand-name merchandise they ordered nor a r~fund of the 

2 amount they paid Defendants. 

3 27. Therefore, Defendants' representations as set forth in Paragraph 25 

4 of this Complaint are false and misleading and constitute deceptive acts or 

5 practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

6 THE TELEMARKETING SALES RULE 

7 28. Congress directed the FTC to prescribe rules prohibiting abusive and 

8 deceptive telemarketing acts or practices pursuant to the Telemarketing Act, 15 

9 U.S.C. §§ 6101-6108, in 1994. The FTC adopted the original Telemarketing 

10 Sales Rule in 1995, extensively amended it in 2003, and amended certain sections 

11 thereafter. 16 C.F .R. Part 310. 

12 29. Defendants are "seller[s]" and/or "telemarketer[s]" engaged in 

13 "telemarketing," and Defendants have initiated, or have caused telemarketers to 

14 initiate, "outbound telephone call[s]" to consumers to induce the purchase of 

15 goods or services, as those terms are defined in the TSR, 16 C.F.R. § 310.2(v), 

16 (aa), (cc), and (dd). 

17 30. The TSR prohibits sellers and telemarketers from misrepresenting, 

18 directly or by implication, in the sale of goods or services, any material aspect of 

19 the performance, efficacy, nature, or central characteristics of the goods or 

20 services that are the subject of a sales offer. 16 C.F .R. § 31 0.3( a)(2)(iii). 

21 31. The TSR prohibits sellers and telemarketers from misrepresenting, 

22 directly or by implication, in the sale of goods or services, any material aspect of 

23 the nature or terms of the seller's refund, cancellation, exchange, or repurchase 

24 policies. 16 C.F.R. § 310.3(a)(2)(iv). --

25 32. The TSR prohibits sellers and telemarketers from failing to disclose 

26 truthfully, in a clear and conspicuous manner, before a customer consents to pay 

27 for goods or services offered, if the seller has a policy of not making refunds or 

28 

Complaint - 10 
ase 2:13-cv-08843-JFW:PLA Document 1 Filed 12/03/13 }age 12 of 19 Page ID :12 

1 cancellations, a statement informing the customer that this is the seller's policy. 

2 16 C.F.R. § 310.3(a)(1)(iii). 

3 3 3. The TSR prohibits sellers and telemarketers from making a false or 

4 misleading statement to induce any person to pay for goods or services. 16 

5 C.F.R. § 310.3(a)(4). 

6 34. It is an abusive telemarketing act or practice, and a violation of the 

7 TSR, for any seller or telemarketer to engage in the use of threats or intimidation. 

8 16 C.F.R. § 310.4(a)(l). 

9 35. Pursuant to Section 3(c) ofthe Telemarketing Act, 15 U.S.C. 

10 § 6102(c), and Section 18(d)(3) of the FTC Act, 15 U.S.C. § 57a(d)(3), a violation 

11 of the TSR constitutes an unfair or deceptive act or practice in or affecting 

12 commerce, in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

13 VIOLATIONS OF THE TELEMARKETING SALES RULE 

14 COUNT III 

15 Misrepresentations in Violation of the TSR 

16 36. In numerous instances, in connection with telemarketing goods, 

17 Defendants have made false or misleading statements, directly or by implication, 

18 to induce consumers to pay for goods, including, but not limited to, 

19 misrepresentations that consumers who purchase merchandise from Defendants 

20 will receive well-known, brand-name merchandise at low or wholesale prices. 

21 3 7. Defendants' acts or practices, as described in Paragraph 3 6 above, 

22 are deceptive telemarketing acts or practices that violate the TSR, 16 C.F .R. 

23 § 310.3(a)(2)(iii) or§ 310.3(a)(4). 

24 COUNTIV 

-- 25 Refund Misrepresentations in Violation of the TSR 

26 38. In numerous instances, in connection with telemarketing goods, 

27 Defendants have misrepresented, directly or by implication, material aspects of 

28 

Complaint - 11 
se 2:13-cv-08843-JFW}'LA Document 1 Filed 12/03/13 'page 13 of 19 Page ID :13 

1 the nature or terms of the seller's refund, cancellation, exchange, or repurchase 

2 policies, including, but not limited to, that consumers who pay for and accept 

3 receipt of additional shipments from Defendants will receive the well-known, 

4 brand-name merchandise they ordered, along with a refund of the amount they 

5 have paid to Defendants. 

6 39. Defendants' acts and practices, as described in Paragraph 38 above, 

7 are deceptive telemarketing acts or practices that violate the TSR, 16 C.P.R. 

8 § 310.3(a)(2)(iv). 

9 COUNTV 

10 Failure to Disclose Refund, Cancellation, Exchange, or Repurchase Policy 

11 40. In numerous instances, in connection with telemarketing goods, 

12 Defendants have failed to disclose truthfully, in a clear and conspicuous manner, 

13 before a consumer consents to pay for the goods, that Defendants have a policy of 

14 not making refunds or cancellations. 

15 41. Defendants' acts and practices, as described in Paragraph 40 above, 

16 are deceptive telemarketing acts or practices that violate the TSR, 16 C.P.R. 

17 § 310.3(a)(l)(iii). 

18 COUNTVI 

19 Threats or Intimidation 

20 42. In numerous instances, in connection with telemarketing, Defendants 

21 have used threats or intimidation to coerce consumers to pay Defendants, 

22 including, but not limited to, threatening consumers with false legal actions, fines, 

23 damage to consumers' credit history, garnishment of income and bank accounts, 

24 arrest, and reports to immigration authorities. 

---1 

··· 25 43. Defendants' acts and practices, as described in Paragraph 42, are 

26 abusive telemarketing acts or practices that violate the TSR, 16 C.P.R. 

27 § 31 0.4( a)(1 ). 

28 

Complaint - 12 
ase 2:13-cv-08843-JFW)PLA Document 1 Filed 12/03/13 ·.page 14 of 19 Page ID :14 

1 CONSUMER INJURY 

2 44. Consumers have suffered and will continue to suffer substantial 

3 injury as a result of Defendants' violations of the FTC Act and the TSR. In 

4 addition, Defendants have been unjustly enriched as a result of their unlawful acts 

5 or practices. Absent injunctive relief by this Court, nefendants are likely to 

6 continue to injure consumers, reap unjust e:I?"ichrnent, and harm the public 

7 interest. 

8 THIS COURT'S POWER TO GRANT RELIEF 

9 45. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this 

10 Court to grant injunctive and such other relief as the Court may deem appropriate 

11 to halt and redress violations of any provision of law enforced by the FTC. The 

12 Court, in the exercise of its equitable jurisdiction, may award ancillary relief, 

13 including rescission or reformation of contracts, restitution, the refund of monies 

14 paid, and the disgorgement of ill-gotten monies, to prevent and remedy any 

15 violation of any provision of law enforced by the FTC. 

16 46. Section 19 ofthe FTC Act, 15 U.S.C. § 57b, and Section 6(b) ofthe 

17 Telemarketing Act, 15 U.S.C. § 6105(b), authorize this Court to grant such relief 

18 as the Court finds necessary to redress injury to consumers resulting from 

19 Defendants' violations of the TSR, including the rescission or reformation of 

20 contracts and the refund of money. 

21 PRAYERFORRELIEF 

22 WHEREFORE, PlaintiffFTC, pursuant to Sections 13(b) and 19 of the 

23 FTC Act, 15 U.S.C. § 53(b) and 57b, Section 6(b) of the Telemarketing Act, 15 

24 U.S.C. § 6105(b), and the Court's own equitable powers, requests that the Court: ---

··· ·· 25 A. Award Plaintiff such preliminary injunctive and ancillary relief as 

26 may be necessary to avert the likelihood of consumer injury during the pendency 

27 of this action and to preserve the possibility of effective final relief, including, but 

28 

Complaint- 13 
se 2:13-cv-08843-JFVV}LA Document 1 Filed 12/03/13 ~age 15 of 19 Page ID :15 

1 not limited to, temporary and preliminary injunctions, an order freezing assets, 

2 immediate access to business premises, and the appointment of a receiver; 

3 B. Enter a permanent injunction to prevent future violations of the FTC 

4 Act and the TSR by Defendants; 

5 C. Award such relief as the Court finds necessary to redress injury to 

6 consumers resulting from Defendants' violations of the FTC Act and the TSR, 

7 including, but not limited to, rescission or reformation of contracts, restitution, the 

8 refund of monies paid, and the disgorgement of ill-gotten monies; and 

9 D. Award Plaintiff the costs ofbringing this action, as well as such 

10 other and additional relief as the Court may determine to be just and proper. 

11 

12 Dated this ,/nd day of~, 2013. 

13 

14 ( 

) 

15 

16 

Respectfully Submitted, 

JONATHAN E. NUECHTERLEIN 

General Counsel 

17 

18 

CHARLES A. HARWOOD 

Regional Dire~to/ ~ . 

a~~ LAURA M. SOLIS 

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Complaint - 14 

KATHRYN C. DECKER 

JULIE K. MAYER 

RAYMOND E. MCKOWN 

ATTORNEYS FOR: PLAINTIFF 

FEDERAL TRADE COMMISSION 
Case 2:13-cv-08843-JFW-PLA Document 1 Filed 12/03/13 Page 16 of 19 Page ID #:16 

UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

NOTICE OF ASSIGNMENT TO UNITED STATES JUDGES 

This case has been assigned to District Judge ____ ....!.J....:..o_hn_F._W_al_te_r ____ and the assigned 

Magistrate Judge is Paul L. Abrams 

The case number on all documents filed with the Court should read as follows: 

2:13CV8843 JFW PLAx 

Pursuant to General Order 05-07 of the United States District Court for the Central District of 

California, the Magistrate Judge has been designated to hear discovery related motions. 

All discovery related motions should be noticed on the calendar of the Magistrate Judge. 

December 2, 2013 

Date 

Clerk, U. S. District Court 

By J.Prado 

Deputy Clerk 

NOTICE TO COUNSEL 

A copy of this notice must be served with the summons and complaint on all defendants (if a removal action is 

filed, a copy of this notice must be served on all plaintiffs). 

Subsequent documents must be filed at the following location: 

!E) Western Division 

312 N. Spring Street, G-8 

Los Angeles, CA 90012 

-D Southern Division 

411 West Fourth St., Ste 1053 

Santa Ana, CA 92701 

D EasternDivision - ---------

3470 Twelfth Street, Room 134 

Riverside, CA 9250 1 

Failure to file at the proper location will result in your documents being returned to you. 

CV-18 {08/13} NOTICE OF ASSIGNMENT TO UNITED STATES JUDGES 
I. (a) PLAINTIFFS (Check box if you are representing yourself O ) 

Federal Trade Commission 

(b) Attorneys (Firm Name, Address and Telephone Number. If you 

are representing yourself, provide same information.) 

Laura M. Solis, Kathryn Decker, Julie Mayer 

Federal Trade Commission 

915 Secofid Avenue, Suite 2896, Seattle, WA 98174 

Phone: (206) 220·6350 

II. BASIS OF JURISDICTION (Place an X in one box on!y.) 

[8_] 1. U.S. Government 

Plaintiff 

. 0 2. U.S. Government 

Defendant 

0 3. Federal Question (U.S. 

Government Not a Party) 

0 4. Diversity (Indicate Citizenship 

of Parties in Item Ill) 

IV. ORIGIN (Place an X in one box only.) 

DEFENDANTS ( Check box if you are representing yourself 0 ) 

CREAM GROUP, INC.; SAMI CHARCHIAN; JOHN CHARCHIAN, a/k!a Djahangir 

Charchian and Jahangir John Charchian; NORMA RAE RAMOS 

(b) Attorneys (Firm Name, Address and Telephone Number. If you 

are representing yourself, provide same information.) 

Ill. CITIZENSHIP OF PRINCIPAL PARTIES-For Diversity Cases On!y 

(Place an X in one box for plaintiff and one for defendant) 

PTF DEF PTF DEF 

Citizen ofThis State 0 1 0 1 Incorporated or Principal Place O 4 D 4 

of Business in this State 

Citizen of Another State 

Citizen or Subject of a 

·Foreign Country 

0 2 0 2 Incorporated and Principal Place 0 5 0 5 

of Business in Another State 

0 3 D 3 Foreign Nation O 6 D 6 

1v1 1. Original 0 2. Removed from 

~ Proceeding State Court 0 3. Remanded from 

Appellate Court 

4 R O . • d 6.Multi- ems tate or O 5. Tr~n~ferred fr?m Another 0 District 

Reopened D1stnct (SpeCify) Litigation 

V. REQUESTED IN COMPLAINT: JURY DEMAND: 0 Yes [81 No (Check "Yes" only if demanded in complaint.) 

CLASS ACTION under F.R.Cv.P. 23: 0 Yes (8] No 0 MONEY DEMANDED IN COM,PLAINT: $ 0 

VI. CAUSE OF ACTION (Cite the U.S. Civil Statute under which you are filing and write a brief statement of cause. Do not cite jurisdictional statutes unless diversity.) 

Sections 13(b) and 19 of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 53(b) and 57b, and the Telemarketing and Consumer Fraud and Abuse Prevention Act 

("Telemarketing Act"), 15 U.S.C. §§ 6101-6108 

VII. NATURE OF SUIT (Place an X in one box only). 

400 State 0 120Marine 

Reapportionment 

0 41 0 Antitrust 0 130 Miller Act 

0 430 Banks and Banking O 140 Negotiable 

Instrument O 450 Commerce/ICC 150 Recovery of Rates/Etc. 0 Overpayment & 

0 460 Deportation Enforcement of 

O 470 Racketeer lnflu- Judgment 

enced & Corrupt Org. D 151 Medicare Act 

0 480 Consumer Credit 152 Recovery of 

0 490 Cable/Sat TV 0 Defaulted Student 

Loan (Excl. Vet.) 

850 Securities/Com- 0 modities/Exchange 153 Recovery of 0 Overpayment of 

[EJ 890 Other Statutory Vet. Benefits 

Actions O 160 Stockholders' 

0 891 Agricultural Acts Suits 

0 893 Environmental 0 1900ther 

Matters Contract 

O 895 Freedom of Info. 

Act O 195 Contract 

Product Liability 

0 896 Arbitration 0 196 Franchise 

899 Admin. Procedures - D Act/Review of Appeal of 

--Agency 

0 220 Foreclosure 

O 950 Constitutionality of 

State Statutes O 230 Rent Lease & 

FOR OFFICE USE ONLY: 

CV-71 (09/13) 

310Airplane 

315 Airplane 

Product Liability 

0 320 Assault, Libel & 

Slander 

0 330 Fed. Employers' 

Liability 

0 340 Marine 

0 345 Marine Product 

Liability 

350 Motor Vehicle 

0 355 Motor Vehicle 

Product Liability 

360 Other Personal 0 Injury 

0 362 Personal InjuryMed Malpratice 

365 Personal InjuryProduct Liability 

367 Health Care/ 0 Pharmaceutical 

-Personal Injury 

Product Liability 

0 368 Asbestos Personal 

0 442 Employment 

0 443 Housing/ 

Accomodations 

445 American with O DisabilitiesEmployment 

0 446 American with 

Disabilities-Other 

0 448 Education 

CIVIL COVER SHEET 

0 720 Labor/Mgmt. 

Relations 

D 740 Railway Labor Act 

0 751 Family and Medical 

Leave Act__ 

D 790 Other Labor 

Litigation 

0 791 Employee Ret. Inc. 

Secu Act 

Page 1 of 3 
Case 2:13-~v-08843-J~PLA Document 1 Filed 12/03/13 )Page 18 of 19 Page ID #:18 

. UNITED STATES DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA 

CIVIL COVER SHEET 

VIII. VENUE: Your answers to the questions below will determine the division of the Court to which this case will most likely be initially assigned. This initial assignment 

is subject to change, in accordance with the Court's General Orders, upon review by the Court of your Complaint or Noti~e of Removal. 

A: Was this case removed from 

D Yes ~ No D Los Angeles 

D Ventura, Santa Barbara, or San Luis Obispo Western 

corresponding division in·response to 

D, below, and skip to Section IX. 

Question B: Is the United States, or one o 

its agencies or employees, a party to this 

action? 

~ Yes D No 

D Orange 

D Riverside or San Bernardino 

D Orange 

D Riverside or San Bernardino 

D Other 

1. Is either ofthe following true? lfso, check the one that applies: 

0 2 or more answers in Column C 

0 only 1 answer in Column C and no answers in Column D 

Your case will initially be assigned to the 

SOUTHERN DIVISION. 

Enter "Southern" in response to Question D, below. 

If none applies, answer question C2 to the right. ..... 

D Riverside or San Bernardino 

D Other 

0 2 or more answers in Column D 

0 only 1 answer in Column D and no answers in Column C 

Your case will initially be assigned to the 

EASTERN DIVISION. 

Enter "Eastern" in response to Question D, below. 

If none applies, go to the box below. ~ 

Your case will initially be assigned to the 

WESTERN DIVISION. 

Enter "Western" in response to Question D below. 

Western 

CV-71 (09/13) CIVIL COVER SHEET 

Western 

Southern 

Eastern 

Western 

Page2of3 
Case 2:13-cv-08843-J~PLA Document 1 Filed 12/03/13~)Page 19 of 19 Page ID #:19 

UNITED STATES DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA 

CIVIL COVER SHEET 

IX(a}. IDENTICAL CASES: Has this action been previously filed in this court and dismissed, remanded or closed? (8] NO D YES 

If yes, list case number(s): 

IX( b). RELATED CASES: Have any cases been previously filed in this court that are related to the present case? (8] NO DYES 

If yes, list case number(s): 

Civil cases are deemed related if a previously filed case and the present case: 

(Check all boxes that apply) O A. Arise from the sarne or closely related transactions, happenings, or events; or 

D B. Call for determination of the same or substantially related or similar questions of law and fact; or 

D C. For other reasons would entail substantial duplication,of labor if heard by different judges; or 

D D. Involve the same patent, trademark or copyright. and one of the factors identified above in a, b or c also is present. 

X. SIGNATURE OF ATIORNEY 

(OR SELF-REPRESENTED LITIGANT}: (A!..=~~----'-...c...L--"!...._-=--------- DATE: 

Notice to Counsel/Parties: The CV-71 (JS-44) Civil Cover Sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or 

other papers as required by law. This form, approved by the Judicial Conference of the United States in September 1974, is required pursuant to Local Rule 3-1 is not filed 

but is used by the Clerk of the Court for the purpose of statistics, venue and initiating the civil docket sheet. (For more detailed instructions, see separate instructions sheet). 

Key to Statistical codes relating to Social Security Cases: 

Nature of Suit Code Abbreviation 

861 HIA 

862 BL 

863 DIWC 

863 DIWW 

864 SSID 

865 RSI 

CV-71 (09/13) 

Substantive Statement of Cause of Action 

All claims for health insurance benefits (Medicare) under Title 18, Part A, of the Social Security Act, as amended. Also, 

include claims by hospitals, skilled nursing facilities, etc., for certification as providers of services under the program. 

(42 U.S.C. 1 935FF(b)) 

All claims for "Black Lung" benefits under Title 4, Part B, of the Federal Coal Mine Health and Safety Act of 1969. (30 U.S.C. 

923) 

All claims filed by insured workers for disability insurance benefits under Title 2 of the Social Security Act, as amended; plus 

all claims filed for child's insurance benefits based on disability. (42 U.S. C. 405 (g)) 

All claims filed for widows or widowers insurance benefits based on disability under Title 2 of the Social Security Act, as 

amended. (42 U.S.C. 405 (g)) 

All claims for supplemental security income payments based upon disability filed under Title 16 of the Social Security Act, as 

amended. 

All claims for retirement (old age) and survivors benefits under Title 2 of the Social Security Act, as amended. 

(42 u.s.c. 405 (g)) 

CIVIL COVER SHEET Page3of3