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FEDERAL TRADE

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I4 002

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DANL G. BOGDEN

United States ,Attomey

By: KOGER. VI. WENTHE

Bar Number: 8'201, 

Assistant United States Attorney

333 South La5 Vegas Boulevar

Lloyd George Fedal Buidig, Suite 5000

Las Vegas. Nevad 89101 

(702) 388-6336

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UNED STATES DISTlUCT COURT

FOR. TH DISTRCT OF NEVADA

Defendats.

) .  . ,., ., , ,_. . .. .. ,,  . ., 

CV - 04-0963-RLH-P AL

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UNED S'rA TES OF AMlUCA

Plaitiff.

IMERI pALCE, INC., d. a. IMERI

ALCB CASINO; 

IMERI PALCE OF MISSISSIPPI, INC.

JN FOR PERMANENT U JUNCT:WN AND OTH,a EQ JJE RELIEF AND MONETARY CIVIL PEN'AI"TIES

Plaintiff,' the United States of Amero , acting upon notificaton and a.uthorization to

the Attrney Geeral by the Federal Trade Commssion ("Cotssion )i for its complaint

allc.gcs that:

Plaintiffbrigs tbis action under Sections Sea), S(m)(l)(A), 13(b)) an16(a) of the

Federal Trade Commission Act ("'FTC Act" ), IS C. 45(a). 4S(m)(1)(A),

S3(b), and S6(a). QDd Section 621 (Ii) of the Fai Credt Reportg Act CFCRA"
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15 U. C. 16815(0.), to obtai monet civil penlties and injuntive an other,

rBtieffor defl!ndan ' violations of the FCRA , 1S U. C. U '1681-1681u. ,

JUSDICTION D VENUE

This Cour hasjurSdc:tion over 1:5 matter ancr 28 U. ff 1331 , 1337(a),

1345, and 135S. anunde IS U. C. i -4S(m)(l)(A). 53(b)" 56(a), and 1691c(c).

Venue in the United States Distct Cour for the Distrct of Nevada is proper unde

15 U. C. 9 53(b) and under 28 C. 1391(b-c) and 1395(a).

DEFENPANTS

. Defendants lmeria1 Palace, Inc., d. a. uImperal Palace Casino" (hereinaer

hnperlal Palace

), .

imd Imperal Palace of Mississippi" Inc, (hereinafer " IPM"

are Nevada corporations with their respective pricipal places of buswes5 in Las

Vegas, Nava.da an Bi1oxi, Mississippi, In connection with the matters alleged

heei Imerial Palace has transacted busess in this Distrct.

DEFENDANTS)' EMPLOYMNT J'RACTICES

Defendants inter all a.pplicants for, employment. After the applicant completes

the interew proJc:ss, Defendants havl! the applicant sign a Consumer Credit

Release authorizing the Defendants to obtai, c cons\U!:r rep rt," as de:ted in

Section 603(d) of the FCRA 15 U. C. i 168la(d), OD the applicant.

Pror to the filing of this Complaint, Defendants had contrads with one or more

CDnsumer repDrtng agenci , as the te j'consUImr :rcport agency is ,defmed in

Section 603(f) of the FCRA, 15 U. C. 168h(f)) to fush consumer reports to

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Defendants. The ters of these contrts sp"ci:ted that Defendants wer

resonsible for complyig with the FCAA and fushig applicants with ,the notice

rcqui d under Section .604(b)(3) oft:e FCRA 1S U.S- 1681b(b)(3)-

Defend ts review the consumer report for t1f$h applicant. Defendants use a

, 

Background Ponn to record inIIiion about each applicant. The Imperal

Palace' s Background Form has been used to rate the applicant' s "credit J:eport" as

either Poor, Fa. or Good and ,to recommend the applicant as FBvorabl

Unfavorable. Imperal Palace also has recorded comments about the infonnation in

the consumer report on the Backgrund F onn. :e nwncroWi instances, Defendants

decided not to e an applicant based in whole or in par on information ontained

in the applicant's consumer reportPrior to thcfilig of ths Complaint, Defendants have: used consuer reports for

employment purose" 8.s defined in Section 603(1) of the FCRA 15 U. C. 

1681a(h).

When Defedants c1 not hi an applicant based i%1 whole or in par on infonne.tion

in an applicant' s consumer reprt they have taken " adverse action" agaist the

, a.pplicant, as that tenn is defined 1n Section 603(k) of the: FCRA. 15 U.s.

1681a().

CQ1lJ-.: VIOJ.4TIONS OF SECTION 604lb\(3) 0:F THE FCRA

10. Plaintiff incorporates by rc:ference and allegcli Paragraph& 1 though 9 as though

fully set fort herein.

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11. Section 604() of the FeR 15 U. C. I 1681b(b), govers the use of consiuer

reps for 'emplo ent pmposes. Before tag any advere tioD ag t an

applit:ant based on information in a conswner report. Defendants must give the

applicant a copy oflth coUIer report and a copy of the appHcmt' s rights under

the FCRA.

12. Although Defenants take advere action against a.pplicants based ill whole or in

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par on inorration in consumer reports) they failed to provide those applicantJ ,

with a notice, conta

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the inorm on required to be diclosed und.er Secti

604(b)(3) of the FC 15 U. C. 1681 (b)(3).

Byand though thejacts and practices described in Paragrhs 10 thDUgh 12"

Defendants have violated Section 604(b)(3) oflle FCRA. 15 

1681b(b)(3).

14. The acts and practices described in Paragraphs 10 t;DUgh 12 (jonsttute a pattern or

practice ofkrowin violation set' fort in Section 621(a)(Z)(A) of the FC

15 U. C. . 11S81s(a)(2)(A).

Pursuant to S on 621(a)(1) of the FCRA 1S C. f 1681s(a)(l). the alleged

vio ations of th PCRA constitute unfair or deceptive acts or practices in vi

of Section 5(a) of the FTC Act 15 U. C. 45(a).

COUN II: VIOLATIQNS Q' SECTION 61S(. OF THE FCRA

PlaintiffincorporatC:i byreferenc:e and alleges Paragraphs, l though lS though

fully set fort herein-
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17. Scc;tion 61S(a) of the FC , 15 U, C. , 1681m(a), requi any on who taes

adverse action with respect to any conSQXe! tht is based in whole or in par on any

informatioI1 contained in a consumer report to provida to the c;onsumer: (l), notice

of the adverse acti9n tak; (2) th name, addtess an telephone number of the

consumer reportng agency frm whioh the consumer report was obtained; (3) a

statement tht the consumer reportg ag cy did not make the decision to take tbe

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

adverse action was tak; (4) notice of the consumer s right to obtain a. free copy of

the consumer report within 60 days frm notice of the advene action frm the

nunc:r reportg agency from which the report was obtained; and (5) notice of

the can&umtr li right to dispute with a cODswner reporting agency the aCCUIiK)' or '

18.

completeness of any infonnauon in a conswner.report fushed by the agency.

Although Defendants take adverse tion agait applicants based it Whole or in

par on informon in cDnsumer report they failed. to provide those applicants

with a notice contaiJ1 the information reqQ.ire to be disclosed. under Section

615(11) of the FCRA 15 D. C. 9 " 681m(a).

19. By and thugh the acts a1Q practices descdbed in Paragrphs' 16 though 18.

Defenants, have violated Seotion 615(a) oflle FCRA IS C. 1681m(a.).

20. " Puruant to Section 621(a)(1) Dfthe FCRA 15 D. C. 1681s(a)(1)) the alleged

violations of the :FCRA constitqte unai or deceptive acts O! practices in violati

of Section Sea) of the FfC Mt. IS U. 4S(a).

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21. The acts an practices described in Paragraphs 16 thugh 18 constitute a patter- or

practice' of knowing violations as set forth in Section 621(a)(Z)(A) of the, FeR

15 U. C. ti 16gls a)(2)(A).

CIVIL P !i4L TIES

22. Each instce in ch Defend ts have failed to comply with either Section

604(b)(3) or 615(a),ofthe FCRA, IS C. f9 1681b(b)(3) and 1681m(a),

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consti tes a sep.!te iolation of the FCRA for th pmpOSE! of assessing monetar

civil penaltie

Section 621(a) of e FCRA 15 C. 621(a), authorizes the Cour to aWlUd

monetaI civil pentfties,ofnot more th $2,500 per violation.

IN.JCTION

24- Unde Section l3(b) of the FTC Act, IS U. C. f 53(b), tbs Cour is 'authoried to

issue a penanent injl.ction against Defendants violaons of the FCRA ws 

Co'Wi may"deei just' 'and pioper , I J'YER. FOR JmLIEF

WHREFORE, plaitiff requests tht ths Caur, pursuat to 15 U. C. 4S(a)(1),

45(m)(1)(A), S3(b), 168 hi) and 1691 an p\Usuant to the Cour s own equity powers:

(1) Enter judgment agaist 'Defendants and in favor of Plaitiff for each violation

charged in ths complait;

(2) Enjoin Dc:fcndants frm violatig any provision of the FeR;

(3) Award. Plaintiffmonct civil penalties from Defendants for each violation of

the FCRA alleged in ths complait; an

(4) Award Plaitiff such addtional relief as th Cour deems just an proper.

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))ated:

Of Counel:

JOEL WISTON

Associate Dirtor for

Finanial Practices

BRALEY H. BLOWER

, RONALD G. ISAAC

ERICH. IMElU 

Attomeys

Division of Financial Practic:es

Federal Trad Commssion

Washigton. DC 20580

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FOR THE UND STATES QP

AMERICA:

PBTE D. KEISLER.

Assi tant Attrney General

Civil Division

S. DeparCDt of 1ustice

DANL G. BOGDEN

United State Attorney

Distrct of Nevada

333 SO"th Las Vegas Boulevard

Lloyd Georg Federal Building

Suite 5000

La Vegas Nevada 89101

(702) 388-633

EUGEN M. THIROLF

Dir t;r-'-" 

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Offoe of Consumer Litigation

ZI .

ELIBTH STEIN

Attorney

Offce of Consumer Litigation

Civil Division

S. Deparent of Justice

Washigt D:C, 20530

(202) 307-0486

Attrneys for Plaiti

United States of Amerca

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