~ l'1 

ase 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 Page 1of18 Page ID #:1 

1 JONATHAN E. NUECHTERLEIN 

General Counsel 

2 

3 

4 

5 

6 

7 

8 

0 

t59 

0 

Oo 

._J 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

CONNOR SHIVELY (WA Bar No. 44043) 

cshively@ftc.gov 

RICHARD McKEWEN (WA Bar No. 45041) 

rmckewen@ftc.gov 

Federal Trade Commission 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

Phone: 206-220-6350/Fax: 206-220-6366 

LOCAL COUNSEL 

RA~~~D E~ MCKOWN (CA Bar No. 150975) 

rm · · ftc.lov 

Fe 1 e <tommission 

10 .. HQhir Blvd., Suite 700 

LoS'.JAn~ A 90024 

Ph<i[e: . -4343/Fax: 310-824-4380 

t..) ~.,; 

Q -oc 

Couaset;~r P mtiff 

FE~~ T .. DE COMMISSION :• 

UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

-v.-

BAM FINANCIAL, LLC, a California 

Limited Liability Company, also 

doing business as West and 

Associates, Chelsea & Associates, 

and Chelsea Financial; 

EVERTON FINANCIAL, LLC, a 

California Limited Liability 

Company, also doing business as 

West and Associates; 

COMPLAINT FOR PERMANENT 

INJUNCTION AND OTHER 

EQUITABLE RELIEF 

25 FTC v. BAM Financial, LLC 

Complaint 

1 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

Case 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15~ Page 2 of 18 Page 10·#:2 

LEGAL FINANCIAL CONSULTING, 

LLC, a California Limited Liability 

Company, also doing business as 

West and Associates Services; 

LUIS 0. CARRERA, also known as 

Luis 0. Carrera-Cavero; 

and 

ROBERTO LLAURY, 

Defendants. 

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

1. The FTC brings this action under Sections 13(b) of the Federal Trade 

13 Commission Act ("FTC Act"), 15 U.S.C. § 53(b), and Section 814 of the Fair Debt 

14 Collection Practices Act ("FDCPA"), 15 U.S.C. § 1692/, to obtain temporary, 

15 preliminary, and permanent injunctive relief, rescission or reformation of contracts, 

16 restitution, the refund of monies paid, disgorgement of ill-gotten monies, and other 

17 equitable relief for Defendants' acts or practices in violation of Section 5(a) of the 

18 FTC Act, 15 U.S.C. § 45(a), and the FDCPA, 15 U.S.C. §§ 1692 et seq., in connection 

19 with Defendants' deceptive and abusive debt collection activities. 

20 JURISDICTION AND VENUE 

21 2. This Court has subject matter jurisdiction over this action pursuant to 

22 28 U.S.C. §§ 1331, 1337(a), and 1345, and 15 U.S.C. §§ 45(a), 53(b), and 1692/. 

23 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

2 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
Case 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15" Page 3 of 18 Page 10·#:3 

1 3. Venue is proper in this District under 28 U.S.C. §§ 1391 (b)(l), (b)(2), 

2 (c)(l), (c)(2), and (d), and 15 U.S.C. § 53(b). 

3 PLAINTIFF 

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

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

6 Act, 15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or practices in or 

7 affecting commerce. The FTC also enforces the FDCPA, 15 U.S.C. §§ 1692 et seq., 

8 which prohibits abusive, deceptive, and unfair debt collection practices. 

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

1 O own attorneys, to enjoin violations of the FTC Act and the FDCP A, and to secure such 

11 equitable relief as may be appropriate in each case, including rescission or reformation 

12 of contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten 

13 monies. 15 U.S.C. §§ 53(b), 56(a)(2)(A), and 1692/(a). Section 814 of the FDCPA 

14 further authorizes the FTC to use all of its functions and powers under the FTC Act to 

15 enforce compliance with the FDCP A, including the power to enforce the provisions of 

16 the FDCP A in the same manner as if the violations were violations of an FTC trade 

17 regulation rule. 15 U.S.C. § 1692!. 

18 DEFENDANTS 

19 6. Defendant BAM Financial, LLC ("BAMF"), also doing business as 

20 West and Associates, Chelsea & Associates, and Chelsea Financial, is a California 

21 limited liability company created in February 2011, with a business address of 2101 

22 Business Center Dr., Suite 215, Irvine, CA 92612. Defendant BAMF transacts or has 

23 transacted business in this District and throughout the United States. 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

3 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
ase 8:15-cv-01672-JVS~DFM Document 1 Filed 10/19/15 page 4 of 18 Page ID #:4 

1 7. Defendant Everton Financial, LLC ("Everton"), also doing business as 

2 West and Associates, is a California limited liability company created in January 

3 2015, with a registered business address of 2101 Business Center Dr., Suite 215, 

4 Irvine, CA 92612. Defendant Everton transacts or has transacted business in this 

5 District and throughout the United States. 

6 8. Defendant Legal Financial Consulting, LLC ("Legal Financial"), also 

7 doing business as West and Associates Services, is a California limited liability 

8 company created in June 2013, with registered business addresses of 2081 Business 

9 Center Dr., Suite 215, Irvine, CA 92612 and 2101 Business Center Drive, Suite 215, 

10 Irvine, CA 92612. Defendant Legal Financial transacts or has transacted business in 

11 this District and throughout the United States. 

12 9. Defendant Luis 0. Carrera ("Carrera"), also known as Luis 0. 

13 Carrera-Cavero, is the president and CEO of Defendant BAMF, and the CEO and 

14 managing member of Defendant Everton. At all times material to this Complaint, 

15 acting alone or in concert with others, he has formulated, directed, controlled, had the 

16 authority to control, or participated in the acts and practices of Defendants BAMF, 

17 Everton, and Legal Financial, including the acts and practices set forth in this 

18 Complaint. Defendant Carrera resides in this District and, in connection with the 

19 matters alleged herein, transacts or has transacted business in this District and 

20 throughout the United States. 

21 10. Defendant Roberto Llaury ("Llaury") is the president and CEO of 

22 Defendant Legal Financial, and a managing member of Defendant Everton. At all 

23 times material to this Complaint, acting alone or in concert with others, he has 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

4 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
ase 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 page 5 of 18 Page ID #:5 

1 formulated, directed, controlled, had the authority to control, or participated in the acts 

2 and practices of Defendants BAMF, Everton, and Legal Financial, including the acts 

3 and practices set forth in this Complaint. Defendant Carrera resides in this District 

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

5 in this District and throughout the United States. 

6 COMMON ENTERPRISE 

7 11. Defendants BAMF, Everton, and Legal Financial (collectively, 

8 "Corporate Defendants") have operated together as a common enterprise in 

9 conducting the business practices described in this Complaint. The Corporate 

IO Defendants are interrelated companies that have common ownership, officers, 

11 managers, and business functions. They do business under similar fictitious names, 

12 and they currently share the same business address. Rental payments for an additional 

13 business location have been paid out of both the BAMF and Legal Financial business 

14 accounts. BAMF and Legal Financial have employed several of the same staff, share 

15 the same certified public accountant, and purchase debt portfolios from the same 

16 company. Individual defendants Carrera and Llaury are the primary recipients of 

17 funds flowing to and between BAMF and Legal Financial. Because these Corporate 

18 Defendants have operated as a common enterprise, each of them is jointly and 

19 severally liable for the acts and practices alleged below. Individual Defendants Llaury 

20 and Carrera have formulated, directed, controlled, or had authority to control, or 

21 participated in the acts and practices of the Corporate Defendants that comprise the 

22 common enterprise. The common enterprise transacts or has transacted business in 

23 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

5 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
Case 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 Page 6 of 18 Page ID #:6 

1 this District and a substantial part of the events or omissions giving rise to the claims 

2 occurring herein have occurred in this District. 

3 COMMERCE 

4 12. At all times material to this Complaint, Defendants have maintained a 

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

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

7 DEFENDANTS' BUSINESS ACTIVITIES 

8 13. Defendants are third-party debt collectors that purchase portfolios of old 

9 past-due consumer debt, primarily credit card debt that has been charged off by the 

1 O credit card issuer. Defendants attempt to collect on that debt by contacting consumers 

11 over the telephone, by mail, and over the Internet. 

12 14. Since at least 2011, Defendants have regularly engaged in abusive and 

13 deceptive acts or practices in an effort to extract money from consumers around the 

14 country. 

15 15. Defendants' initial contact with consumers is usually by telephone. 

16 Defendants' debt collectors call consumers and tell them that they owe Defendants 

17 substantial sums of money for an outstanding debt. Typically these are credit card 

18 debts that may be as much as ten years old. 

19 16. In numerous instances, Defendants have called consumers repeatedly or 

20 continuously with the intent to annoy, harass, or abuse. For example, Defendants 

21 have: (i) continued to call consumers and their family members even after being told 

22 to stop; (ii) called multiple times per day or frequently over an extended period of 

23 time; and (iii) called the consumers' places of employment, even though the collectors 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

6 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
ase 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 Page 7 of 18 Page ID #:7 ,--, --, 

1 know or should know that it is inconvenient for them to receive calls there. In one 

2 case, after the consumer disclosed that she worked for a government agency and asked 

3 not to be contacted at work through a public number, Defendants immediately called 

4 her employer's main office number and asked for the consumer's supervisor's name 

5 and number and left a message. 

6 17. In many cases, Defendants have used obscene or profane language or 

7 language the natural consequence of which is to abuse the hearer, in an attempt to 

8 coerce consumers into paying them. For example, Defendants told one consumer's 

9 mother that "no wonder your daughter is in such a predicament with a mother like 

10 you." In another instance, Defendants told the consumer that he was "obviously ... 

11 not a genius" because he answered the Defendants' calls at work. Defendants told 

12 another consumer that they would "come after her a**," and another that she was 

13 lying and should "shut up." 

14 18. Defendants also frequently have claimed that they are law enforcement, 

15 lawyers, members of a law firm, or working with a law firm, when in fact, they are 

16 not. 

17 19. Defendants have routinely sent consumers a form letter titled 

18 "LITIGATION NOTICE" with a reference line of"CHELSEA AND ASSOCIATES 

19 vs. [CONSUMER]" or "BAM FINANCIAL vs. [CONSUMER]" or "WEST AND 

20 ASSOCIATES vs. [CONSUMER]." The letter also contains multiple other false 

21 threats and misrepresentations. For example, the letter states that the consumer must 

22 contact the Defendants within 10 days or "litigation will be commenced immediately." 

23 The letter also states that the consumer will be required to pay 10% interest on the 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

7 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
, ase 8:15-cv-01672-JV~-:DFM Document 1 Filed 10/19/15 Page 8 of 18 Page ID #:8 

1 unpaid balance of the judgment, as well as "attorneys fees, court costs, and processing 

2 fees." And in these letters, Defendants warn that other adverse action will be taken 

3 against consumers, including wage garnishment, levy on the consumer's bank 

4 accounts or safe deposit box, liens on real or personal property and suspension of real 

5 estate, contractor, or driver's license. 

6 20. In their telephone calls to consumers, Defendants also have used false 

7 threats and other means of intimidation to try to coerce consumers into paying them. 

8 For example, Defendants have falsely threatened consumers with lawsuits, or falsely 

9 asserted that a lawsuit has already been filed against the consumer. 

1 O 21. In fact, after Defendants have threatened legal action, Defendants usually 

11 have not filed any such action to collect the debt. In addition, because they have not 

12 filed an action, obtained a judgment, and received an award of costs, Defendants 

13 cannot hold the consumer liable for any expenses or legal fees that they incur. 

14 22. In numerous instances, Defendants have falsely threatened consumers 

15 with arrest or incarceration if the consumer refuses to pay. In one instance, 

16 Defendants told a consumer's 84 year-old mother that they had a warrant out for her 

17 daughter's arrest, and later told the consumer they were bounty hunters who would 

18 arrange for the sheriff to serve her. Defendants have also falsely threatened to report 

19 consumers to government authorities and falsely threatened the loss of child custody if 

20 the consumer refuses to pay. 

21 23. Defendants have called consumers and employers, and falsely claimed to 

22 be process servers seeking an address at which the consumer may be served with legal 

23 process in connection with an action against the consumer. 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

8 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
ase 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 /Page 9 of 18 Page ID #:9 

1 24. On many occasions, Defendants also have telephoned consumers' family 

2 members and told them that the consumer is delinquent on a debt and that the 

3 consumer will suffer adverse consequences if the consumer fails to make a payment. 

4 25. In addition, in their initial and in their subsequent communications with 

5 consumers, Defendants have frequently failed to identify themselves as debt 

6 collectors. 

7 26. In their initial communications with consumers, Defendants also have 

8 frequently failed to disclose that information obtained from the consumer will be used 

9 for debt collection purposes. 

1 O 27. And in numerous instances, Defendants have failed to provide consumers 

11 within five days after the initial communication with a statutorily-required written 

12 notice - where the information was not contained in the initial communication and the 

13 consumer had not paid the debt - setting forth: (1) the amount of the debt; (2) the 

14 name of the creditor to whom the debt is owed; (3) a statement that unless the 

15 consumer disputes the debt, the debt will be assumed valid; and ( 4) a statement that if 

16 the consumer disputes all or part of the debt in writing within 30 days, the debt 

17 collector will obtain verification of the debt or a copy of a judgment against the 

18 consumer and a copy of such verification or judgment will be mailed to the consumer 

19 by the debt collector. In numerous instances, Defendants have refused to provide 

20 consumers with this notice despite consumers' repeated requests, and as a result, 

21 consumers have not been informed about their statutory right to dispute the validity of 

22 a debt. 

23 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

9 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
se 8:15-cv-01672-JVS-QFM Document 1 Filed 10/19/15 Page 10 of 18 Page ID #:10 . 

1 28. Defendants also have continued their collection efforts even after 

2 consumers have called into question the legitimacy of the debts, without investigating 

3 and verifying that the consumers in fact owe the debt, or owe the amount claimed. 

4 For example, in one instance, Defendants sent the consumer, a service member, a 

5 "Litigation Notice" and falsely threatened to take action against him under the 

6 Uniform Code of Military Justice even though the consumer told Defendants he was 

7 the victim of identity theft and that the debt had been paid in full. In another instance, 

8 Defendants threatened to take everything the consumer owned, despite the fact that 

9 the consumer told Defendants that she had never received any information or notice 

1 O regarding the debt and that she had called the original creditor who had no record of 

11 an account in her name. When she requested that Defendants provide verification of 

12 the debt, Defendants refused. 

13 29. In these and other instances, Defendants have failed to review 

14 information substantiating the debt or its amount, or have failed to consider the 

15 consumers' challenges regarding the debt, prior to continuing collection. 

16 VIOLATIONS OF SECTION 5 OF THE FTC ACT 

17 30. Section S(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits "unfair or 

18 deceptive acts or practices in or affecting commerce." 

19 31. Misrepresentations or deceptive omissions of material fact constitute 

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

21 COUNT I 

22 32. In numerous instances, in connection with the collection of consumer 

23 debts, Defendants have represented to consumers or third parties, directly or 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

10 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
ase 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 Page 11of18 Page 10'#:11 . 

1 indirectly, expressly or by implication, that the consumer owes a debt that the 

2 Defendants have the legal authority to collect. 

3 33. In truth and in fact, in numerous instances in which the Defendants have 

4 made the representations set forth in Paragraph 32 of this Complaint, these 

5 representations have been false, or Defendants have not had a reasonable basis for the 

6 representations at the time they were made, including, but not limited to, where 

7 consumers have already challenged or attempted to challenge the validity or accuracy 

8 of the purported debt and Defendants have failed to review information substantiating 

9 the amount of debt, or have failed to consider the consumers' challenges, prior to 

1 O continuing collection. 

11 34. Therefore, Defendants' representations set forth in Paragraph 32 of this 

12 Complaint constitute deceptive acts or practices in violation of Section 5( a) of the 

13 FTC Act, 15 U.S.C. § 45(a). 

14 COUNT II 

15 35. In numerous instances, in connection with the collection of consumer 

16 debts, Defendants have represented to consumers or third parties, directly or 

17 indirectly, expressly or by implication, that: 

18 a. 

19 

20 

21 b. 

22 

23 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

Defendants' collection agents are process servers seeking to serve 

the consumer with pleadings or legal papers pertaining to a lawsuit 

filed against the consumer; 

Defendants' collection agents are lawyers, members of a law firm, 

working with a law firm, or members of law enforcement; 

11 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
ase 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 page 12 of 18 Page ID·#:12 . 

1 c. 

2 

3 

4 

5 d. 

6 

Nonpayment of the consumer's debt will result in the consumer's 

arrest or a specific adverse action by the government, or in the 

seizure, garnishment, or attachment of the consumer's property or 

wages; or 

Defendants have filed, or intend to file imminently, a lawsuit 

against the consumer. 

7 36. In truth and fact, in numerous instances in which Defendants have made 

8 the representations set forth in Paragraph 35 of this Complaint, 

9 a. 

10 

11 

12 

13 b. 

14 

15 c. 

16 

17 

18 

19 d. 

20 

Defendants' collection agents are not process servers, are not 

working with process servers, and are not seeking to serve the 

consumer with pleadings or legal papers pertaining to a lawsuit 

filed against the consumer; 

Defendants' collection agents are not lawyers, members of a law 

firm, working with a law firm, or members of law enforcement; 

Nonpayment of a purported debt will not result in the consumer's 

arrest or a specific adverse action by the government, or in the 

seizure, garnishment, or attachment of the consumer's property or 

wages; and 

Defendants have not filed, and do not intend to file imminently, a 

lawsuit against the consumer. 

21 37. Therefore, Defendants' representations, as set forth in Paragraph 35 of 

22 this Complaint, are false or misleading and constitute deceptive acts or practices in 

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

24 

25 FTC v. BAM Financial, LLC 

Complaint 

12 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite2896 

Seattle, WA 98174 

206-220-6350 
se 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 Page 13 of 18 Page ID #:13 , 

1 VIOLATIONS OF THE FAIR DEBT COLLECTIONS PRACTICES ACT 

2 38. In 1977, Congress passed the FDCPA, 15 U.S.C. §§ 1692 et seq., which 

3 became effective on March 20, 1978, and has been in force since that date. Section 

4 814 of the FDCPA, 15 U.S.C. § 1692/, provides that a violation of the FDCPA shall 

5 be deemed an unfair or deceptive act or practice in violation of the FTC Act. 

6 39. Throughout this Complaint, the term "consumer," as defined in Section 

7 803(3) of the FDCPA, 15 U.S.C. § 1692a(3), means "any natural person obligated or 

8 allegedly obligated to pay any debt." 

9 40. Throughout this Complaint, the term "debt" as defined in Section 803(5) 

IO of the FDCPA, 15 U.S.C. § 1692a(5), means "any obligation or alleged obligation of a 

11 consumer to pay money arising out of a transaction in which the money, property, 

12 insurance or services which are the subject of the transaction are primarily for 

13 personal, family, or household purposes, whether or not such obligation has been 

14 reduced to judgment." 

15 41. Defendants are "debt collectors," as the term is defined in Section 803( 6) 

16 of the FDCPA, 15 U.S.C. § 1692a(6)- "any person who uses any instrumentality of 

17 interstate commerce or the mails in any business the principal purpose of which is the 

18 collection of any debt, or who regularly collects or attempts to collect, directly or 

19 indirectly, debts owed or due or asserted to be owed or due another." 

20 COUNT III 

21 Misrepresentations in Violation of the FDCP A 

22 42. In numerous instances, in connection with the collection of debts or 

23 purported debts, Defendants, directly or indirectly, expressly or by implication, have 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

13 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
ase 8:15-cv-01672-JVS~DFM Document 1 Filed 10/19/15 ~page 14 of 18 Page ID #:14 . 

1 used false, deceptive, or misleading representations or means, in violation of Section 

2 807 of the FDCP A, 15 U.S.C. § l 692e, including, but not limited to: 

3 a. 

4 

5 

6 b. 

7 

8 

9 c. 

10 

11 

12 

13 

14 

15 d. 

16 

17 

18 

19 e. 

20 

21 

22 

23 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

Falsely representing the character, amount, or legal status of a 

debt, in violation of Section 807(2)(A) of the FDCPA, 15 U.S.C. 

§ l 692e(2)(A); 

Falsely representing or implying that an individual is an attorney or 

that a communication is from an attorney, in violation of Section 

807(3) of the FDCPA, 15 U.S.C. § 1692e(3); 

Falsely representing or implying that nonpayment of a debt will 

result in arrest or imprisonment of a person or seizure, 

garnishment, or attachment of a person's property or wages, when 

such action is not lawful or when Defendants have no intention of 

taking such action, in violation of Section 807 ( 4) of the FDCP A, 

15 U.S.C. § 1692e(4); 

Threatening to take action that Defendants do not intend to take, 

such as reporting consumers to law enforcement agencies for 

failing to pay Defendants or initiating a lawsuit, in violation of 

Section 807(5) of the FDCPA, 15 U.S.C. § 1692e(5); 

Using false representations or deceptive means to collect or 

attempt to collect a debt or to obtain information concerning a 

consumer, in violation of Section 807(10) of the FDCPA, 15 

U.S.C. § l 692e(l 0), including, but not limited to, 

14 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

se 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 page 15 of 18 Page ID #:15 . 

f. 

i. false representations that a debt collector is a process server; 

or 

n. false representations that a debt collector is a bounty hunter. 

Failing to disclose in the initial communication with a consumer 

that Defendants are debt collectors attempting to collect a debt and 

that any information obtained will be used for that purpose, and 

failing to disclose in subsequent communications that the 

communication is from a debt collector, in violation of Section 

807(11) of the FDCPA, 15 U.S.C. § 1692e(l l). 

COUNT IV 

Prohibited Communications with Third Parties 

12 43. In numerous instances, in connection with the collection of debts, 

13 Defendants have communicated with third parties for purposes other than acquiring 

14 location information about a consumer, without having obtained directly the prior 

15 consent of the consumer or the express permission of a court of competent 

16 jurisdiction, and when not reasonably necessary to effectuate a post-judgment judicial 

17 

18 

19 

20 

21 

22 

23 

24 

remedy, in violation of Section 805(b) of the FDCPA, 15 U.S.C. § 1692c(b). 

COUNTV 

Failure to Notify Consumers of Their Right 

to Dispute and Obtain Verification 

44. In numerous instances, in connection with the collection of debts, 

Defendants have failed to provide consumers, either in the initial communication with 

the consumer or on a written notice sent within five days after the initial 

communication, with statutorily-required information about the debt and their right to 

25 FTC v. BAM Financial, LLC 

Complaint 

15 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
ase 8:15-cv-01672-JVS-QFM Document 1 Filed 10/19/15 page 16 of 18 Page ID·#:16 . 

1 dispute and obtain verification of their debts, in violation of Section 809( a) of the 

2 FDCPA, 15 U.S.C. § 1692g(a). 

3 COUNT VI 

4 Harassing, Oppressing, or Abusive Conduct 

5 45. In numerous instances, in connection with the collection of debts, 

6 Defendants have engaged in conduct the natural consequence of which is to harass, 

7 oppress, or abuse a person, in violation of Section 806 of the FDCPA, 15 U.S.C. 

8 § l 692d, including, but not limited to: 

9 a. 

10 

11 

12 b. 

13 

14 

15 

16 c. 

17 

18 

19 

Using obscene or profane language or language the natural 

consequence of which is to abuse the hearer or reader, in violation 

of Section 806(2) oftheFDCPA, 15 U.S.C. § 1692d(2); 

Causing a telephone to ring or engaging any person in telephone 

conversation repeatedly or continuously with intent to annoy, 

abuse, or harass any person at the called number, in violation of 

Section 806(5) of the FDCPA, 15 U.S.C. §1692d(5); and 

Placing telephone calls without meaningful disclosure of the 

caller's identity, in violation of Section 806( 6) of the FDCP A, 15 

u.s.c. § 1692d(6). 

CONSUMER INJURY 

20 46. Consumers have suffered and will continue to suffer substantial injury as 

21 a result of Defendants' violations of the FTC Act and the FDCPA. In addition, 

22 Defendants have been unjustly enriched as a result of their unlawful acts or practices. 

23 

24 

25 FTC v. BAM Financial, LLC 

Complaint 

16 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
ase 8:15-cv-01672-JVS-DFM Document 1 Filed 10/19/15 Page 17 of 18 Page ID·#:l 7 

1 Absent injunctive relief by this Court, Defendants are likely to continue to injure 

\. 

2 consumers, reap unjust enrichment, and harm the public interest. 

3 THIS COURT'S POWER TO GRANT RELIEF 

4 47. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), and Section 814(a) of 

5 the FDCPA, 15 U.S.C. § 1692/(a) empowers this Court to grant injunctive and such 

6 other relief as the Court may deem appropriate to halt and redress violations of any 

7 provision of law enforced by the FTC. The Court, in the exercise of its equitable 

8 jurisdiction, may award ancillary relief, including rescission or reformation of 

9 contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten 

1 O monies, to prevent and remedy any violation of any provision of law enforced by the 

11 FTC. 

12 PRAYER FOR RELIEF 

13 WHEREFORE, Plaintiff FTC, pursuant to Section 13(b) of the FTC Act, 15 U.S.C. § 

14 53(b), and Section 814(a) of the FDCPA, 15 U.S.C. §1692/(a), and the Court's own 

15 equitable powers, requests that the Court: 

16 

17 

18 

19 

20 

21 

22 

23 

24 

A. 

B. 

A ward Plaintiff such preliminary injunctive and ancillary relief as may be 

necessary to avert the likelihood of consumer injury during the pendency 

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

including but not limited to temporary and preliminary injunctions, an 

order freezing assets, immediate access to Defendants' business 

premises, and appointment of a receiver; 

Enter a permanent injunction to prevent future violations of the FTC Act 

and the FDCP A by Defendants; 

25 FTC v. BAM Financial, LLC 

Complaint 

17 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350 
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

ase 8:15-cv-01672-JVS;DfM Document 1 Filed 10/19/15 P(ige 18 of 18 Page ID #:18 . 

C. 

D. 

Award such relief as the Court finds necessary to redress injury to 

consumers resulting from Defendants' violations of the FTC Act and the 

FDCP A, including but not limited to, rescission or reformation of 

contracts, restitution, the refund of monies paid, and the disgorgement of 

ill-gotten monies; and 

Award Plaintiff the costs of bringing this action, as well as such other and 

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

Respectfully submitted, 

JONATHAN E. NUECHTERLEIN 

General Counsel 

Dated: October 19, 2015 

FTC v. BAM Financial, LLC 

Complaint 

CONNOR SHIVELY 

RICHARD McKEWEN 

RAYMONDE. MCKOWN 

Attorneys for Plaintiff 

Federal Trade Commission 

18 

FEDERAL TRADE COMMISSION 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

206-220-6350