Case: 3:23-cv-00737 Document #: 5-1 Filed: 10/24/23 Page 1 of 10 

UNITED STATES DISTRICT COURT 

FOR THE WESTERN DISTRICT OF WISCONSIN 

FEDERAL TRADE COMMISSION and the STATE 

OF WISCONSIN, Case No. 

Plaintiffs, 

vs. 

RHINELANDER AUTO CENTER, INC., a STIPULATED ORDER FOR 

Wisconsin corporation, also d/b/a Rhinelander GM PERMANENT INJUNCTION, 

Auto Center, Rhinelander Cadillac, and OK Used MONETARY JUDGMENT, AND 

Cars of Rhinelander; OTHER RELIEF AS TO 

DEFENDANTS RHINELANDER 

RHINELANDER MOTOR COMPANY, a AUTO CENTER, INC. AND 

Wisconsin corporation, also d/b/a Rhinelander RHINELANDER MOTOR 

Toyota; COMPANY 

RHINELANDER AUTO GROUP LLC, a 

Wisconsin limited liability company, also d/b/a 

Rhinelander GM Auto Center, Rhinelander Cadillac, 

and OK Used Cars of Rhinelander; 

RHINELANDER IMPORT GROUP LLC, a 

Wisconsin limited liability company, also d/b/a 

Rhinelander Toyota; and 

DANIEL TOWNE, individually and as an officer, 

member, or manager of RHINELANDER AUTO 

CENTER INC., RHINELANDER MOTOR 

COMPANY, RHINELANDER AUTO GROUP 

LLC, and RHINELANDER IMPORT GROUP LLC, 

Defendants. 

Plaintiffs, the Federal Trade Commission (“Commission” or “FTC”) and the State of 

Wisconsin, filed their Complaint for permanent injunction, monetary relief, and other relief in 

this matter (“Complaint”), pursuant to Sections 13(b) and 19 of the Federal Trade Commission 

Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 57b, the Equal Credit Opportunity Act (“ECOA”), 

15 U.S.C. §§ 1691–1691f, and Wis. Stat. §§ 100.18(11)(d), 100.26(4), 426.109, and 426.301. 

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Defendants Rhinelander Auto Center, Inc. and Rhinelander Motor Company (“Settling 

Defendants”) have waived service of the summons and the Complaint. Plaintiffs and Settling 

Defendants stipulate to the entry of this Stipulated Order for Permanent Injunction, Monetary 

Judgment, and Other Relief as to Rhinelander Auto Center, Inc. and Rhinelander Motor 

Company (“Order”) to resolve all matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive and unfair acts 

or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, the ECOA, 15 U.S.C. 

§ 1691(a)(1), and its implementing Regulation B, 12 C.F.R. § 202.4(a), and Wis. Stat. 

§§ 100.18(1) and 426.108, and the administrative rule promulgated under Wis. Stat. § 426.108, 

Wis. Admin. Code § DFI-WCA 1.85, in the promoting, advertising, marketing, sale, leasing, or 

financing of new and used motor vehicles. 

3. Settling Defendants neither admit nor deny any of the allegations in the 

Complaint, except as specifically stated in this Order. Only for purposes of this action, Settling 

Defendants admit the facts necessary to establish jurisdiction. 

4. In March 2019, Settling Defendants irrevocably transferred their ownership of 

and licenses to operate three Rhinelander Auto Dealerships known as Rhinelander GM Auto 

Center, located at 1935 North Stevens Street, Rhinelander, Wisconsin 54501-8556; Rhinelander 

Toyota, located at 1955 North Stevens Street, Rhinelander, Wisconsin 54501-8556; and OK 

Used Cars of Rhinelander, located at 1508 North Stevens Street, Rhinelander, Wisconsin 54501-

2227. Since transferring ownership and operation of the three Rhinelander Auto Dealerships in 

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Case: 3:23-cv-00737 Document #: 5-1 Filed: 10/24/23 Page 3 of 10 

March 2019, Settling Defendants have not promoted, advertised, marketed, offered for sale or 

lease, sold, leased, or financed any motor vehicles. 

5. The parties agree that this Order resolves all allegations by Plaintiffs against the 

Settling Defendants in the Complaint, including Settling Defendants’ liability for their employee, 

the Individual Defendant Daniel Towne, for the time period through March 24, 2019, but does 

not resolve Plaintiffs’ claims against Daniel Towne in his individual capacity at any time, 

including his participation while employed by Settling Defendants, and his acting in any other 

capacity, including on behalf of any other entity, such as for the time period on or after March 

25, 2019. 

6. Settling Defendants waive any claim that they may have under the Equal Access 

to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the date of 

this Order, and agree to bear their own costs and attorney fees. 

7. Settling Defendants and Plaintiffs waive all rights to appeal or otherwise 

challenge or contest the validity of this Order. 

DEFINITIONS 

For the purpose of this Order, the following definitions apply: 

A. “Defendants” means the Individual Defendant and the Corporate Defendants, 

individually, collectively, or in any combination. 

1. “Corporate Defendants” means Rhinelander Auto Center, Inc., also 

d/b/a Rhinelander GM Auto Center, Rhinelander Cadillac, and OK Used Cars of 

Rhinelander; Rhinelander Motor Company, also d/b/a Rhinelander Toyota; Rhinelander 

Auto Group LLC also d/b/a Rhinelander GM Auto Center, Rhinelander Cadillac, and OK 

Used Cars of Rhinelander; and Rhinelander Import Group LLC, also d/b/a Rhinelander 

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Case: 3:23-cv-00737 Document #: 5-1 Filed: 10/24/23 Page 4 of 10 

Toyota; and their successors and assigns. 

2. “Individual Defendant” means Daniel Towne. 

3. “Settling Defendants” means Rhinelander Auto Center, Inc., also d/b/a 

Rhinelander GM Auto Center, Rhinelander Cadillac, and OK Used Cars of Rhinelander; 

Rhinelander Motor Company, also d/b/a Rhinelander Toyota; and their successors and 

assigns. 

ORDER 

I. PERMANENT CESSATION OF BUSINESS ACTIVITIES AND DISSOLUTION 

OF BUSINESS ENTITIES 

IT IS ORDERED that Settling Defendants are permanently restrained and enjoined 

from promoting, advertising, marketing, offering for sale or lease, sale, lease, or financing of 

motor vehicles to any customer, or conducting any other business other than the liquidation and 

wind up of their prior business. Settling Defendants shall satisfy their obligation to pay out 

existing warranties to their current customers by setting up an independent third-party escrow 

with sufficient funds to pay out existing warranty claims. 

Within fourteen (14) days of entry of this Order by the Court, Settling Defendants shall 

provide proof to the Plaintiffs of the permanent dissolution of the corporate entities Rhinelander 

Auto Center, Inc., a Wisconsin corporation, Rhinelander Motor Company, a Wisconsin 

corporation, and all subsidiaries, successors, and assigns of these entities, if any, pursuant to 

applicable Wisconsin laws. Such proof shall be sent via electronic mail to DEBrief@ftc.gov 

and to beilinlw@doj.state.wi.us and shall, at a minimum, consist of a statement sworn under 

penalty of perjury, in compliance with 28 U.S.C. § 1746, that both corporate entities have been 

permanently dissolved, and shall also include documentary proof that Settling Defendants have 

delivered articles of dissolution to the State of Wisconsin. The subject line of the email shall 

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Case: 3:23-cv-00737 Document #: 5-1 Filed: 10/24/23 Page 5 of 10 

begin with “FTC v. Rhinelander Auto Center, Inc.” 

Prior to submitting the articles of dissolution to the State of Wisconsin, Settling 

Defendants shall satisfy the monetary judgment contained in Section II of this Order. 

II. MONETARY JUDGMENT 

IT IS FURTHER ORDERED that Settling Defendants shall pay One Hundred Thousand 

Dollars ($100,000) as follows: 

A. Judgment in the amount of One Hundred Thousand Dollars ($100,000) is 

entered in favor of the Plaintiffs against Settling Defendants, jointly and severally, as monetary 

relief. 

B. Settling Defendants are ordered to pay to Plaintiffs One Hundred Thousand 

Dollars ($100,000) as monetary relief, which, as Settling Defendants stipulate, their undersigned 

counsel holds in escrow for no purpose other than payment to the Commission. Such payment 

must be made within seven (7) days of entry of this Order by electronic fund transfer in 

accordance with instructions previously provided by a representative of the Commission. 

III. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Settling Defendants relinquish dominion and all legal and equitable right, title, 

and interest in all assets transferred pursuant to this Order and may not seek the return of any 

assets. 

B. The facts alleged in the Complaint will be taken as true, without further proof, in 

any subsequent civil litigation by or on behalf of the Commission or Plaintiffs, including in a 

proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order, 

such as a nondischargeability complaint in any bankruptcy case. 

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C. The facts alleged in the Complaint establish all elements necessary to sustain an 

action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. 

§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes. 

D. Settling Defendants acknowledge that the Taxpayer Identification Numbers 

(Social Security Numbers or Employer Identification Numbers) that Settling Defendants must 

submit to Plaintiffs may be used for collecting and reporting on any delinquent amount arising 

out of this Order, in accordance with 31 U.S.C. § 7701. 

E. All money received by Plaintiffs pursuant to this Order may be deposited into a 

fund administered by the Commission or its designee to be used for consumer relief, such as 

redress and any attendant expenses for the administration of any redress fund. If a representative 

of the Commission decides that direct redress to consumers is wholly or partially impracticable, 

or if money remains after such redress is completed, the Commission may apply any remaining 

money for such related relief (including consumer information remedies) as it determines to be 

reasonably related to Settling Defendants’ practices alleged in the complaint. Any money not 

used for relief is to be deposited to the U.S. Treasury. Settling Defendants have no right to 

challenge any actions the Commission or its representatives may take pursuant to this Subsection. 

IV. CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Settling Defendants and Settling Defendants’ officers, 

agents, employees, and all other persons in active concert or participation with any of them, 

who receive actual notice of this Order, are permanently restrained and enjoined from directly 

or indirectly failing to provide sufficient customer information relating to Rhinelander Auto 

Center, Inc.; Rhinelander Motor Co.; and OK Used Cars of Rhinelander to enable Plaintiffs to 

administer consumer redress efficiently. If a representative of Plaintiffs requests in writing any 

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information related to redress, Settling Defendants must provide it, in the form prescribed by 

Plaintiffs, within fourteen (14) days. The obligations in this Section of the Order shall survive 

beyond Settling Defendants’ dissolution. 

V. COOPERATION 

IT IS FURTHER ORDERED that Settling Defendants must fully cooperate with 

representatives of Plaintiffs and the Commission in this case and in any investigation related to 

or associated with the transactions or the occurrences that are the subject of the Complaint. 

Settling Defendants must provide truthful and complete information, evidence, and testimony. 

Settling Defendants must cause Settling Defendants’ officers, employees, representatives, or 

agents to appear for interviews, discovery, hearings, trials, and any other proceedings that a 

Plaintiff or Commission representative may reasonably request upon five (5) days written notice, 

or other reasonable notice, at such places and times as a Plaintiff or Commission representative 

may designate, without the service of a subpoena. The obligations in this Section of the Order 

shall survive beyond Settling Defendants’ dissolution. 

VI. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that, within seven (7) days of entry of this Order, Settling 

Defendants each shall submit to the Commission an acknowledgment of receipt of this Order. 

Such acknowledgements shall be sworn under penalty of perjury, in compliance with 28 U.S.C. 

§ 1746, and shall be sent via electronic mail to DEBrief@ftc.gov and to beilinlw@doj.state.wi.us 

with the subject line beginning with “FTC v. Rhinelander Auto Center, Inc.” 

VII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

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

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SO ORDERED this day of , 2023. 

UNITED STATES DISTRICT JUDGE 

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Case: 3:23-cv-00737 Document #: 5-1 Filed: 10/24/23 Page 9 of 10 

SO STIPULATED AND AGREED: 

FOR PLAINTIFFS: 

FEDERAL TRADE COMMISSION 

Nathan Nash 

Date: ______________ 10/23/2023

Rachel Sifuentes 

Rachel Granetz 

Federal Trade Commission 

Washington, DC 20580 

nnash@ftc.gov 

rsifuentes@ftc.gov 

rgranetz@ftc.gov 

312-960-5624 (Nash) 

312-960-5617 (Sifuentes) 

312-960-5620 (Granetz) 

312-960-5600 (fax) 

STATE OF WISCONSIN 

Date: ______________ 

Lewis Beilin 

Colin Stroud 

Wisconsin Department of Justice 

Post Office Box 7857 

Madison, WI 53707 

beilinlw@doj.state.wi.us 

stroudcr@doj.state.wi.us 

(608) 266-3076 (Beilin) 

(608) 261-9224 (Stroud) 

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Case: 3:23-cv-00737 Document#: 5-1 Filed: 10/24/23 Page 10 of 10 

Date: D2.~ DILLON AMBROSB;--PARTNER 

Amundsen Davis LLC 

111 East Kilbourn Street, Suite 1400 

Milwaukee, Wisconsin 53202 

dambrose@amundsendavislaw.com 

(414) 225-1410 

(414) 278-3610 (fax) 

COUNSEL FOR RHINELANDER AUTO CENTER, INC. AND RHINELANDER MOTOR 

COMPANY 

DEFENDANTS: 

Date: 9/;,s-/,:;.IJ:l :3 ~ I 

By: Michael L. Aus, Officer 

RHINELANDER AUTO CENTER, INC. 

RHINELANDER MOTOR COMPANY 

Date: _9/2sho.2.3 

By: Michael L. Aus, Officer 

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