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Timestamp: 2019-04-19 20:38:05+00:00

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FEDERAL TRADE COMMISSION v. DUPONT MODEL MANAGEMENT, INC.
PATRICIA S. HOWARD, LAWRENCE HODAPP, MAMIE KRESSES, FEDERAL TRADE COMMISSION, DIV. OF MARKETING PRACTICES, WASHINGTON, D.C., FOR PLAINTIFF.
A. DAVID DASHOFF, VOORHEES, NEW JERSEY, FOR DEFENDANT.
DAVID L. DUPONT, PRO SE, New York, New York.
S. W. HOLT, PHILADELPHIA, PENNSYLVANIA, FOR GARNISHEE.
A. DAVID DASHOFF, VOORHEES, NEW JERSEY, FOR MOVANT.
JUDGES: Norma L. Shapiro, United States District Judge.
1. This is an action by the FTC instituted under Sections 5 and 13(b) of the "FTC Act", 15 U.S.C. §§ 45 and 53(b). The Commission seeks both permanent injunctive relief and consumer redress for alleged deceptive acts and practices by defendants in violation of Section 5(a) of the FTC Act in connection with the sale of modeling promotional photographs and modeling employment opportunities. The Commission has authority to seek the relief requested pursuant to Section 13(b) of the FTC Act.
2. This Court has jurisdiction over the subject matter of the action and all of the parties hereto, and the complaint states a claim upon which relief may be granted against defendant Dupont Model Management, Inc. under Sections 5 and 13(b) of the FTC Act.
3. The activities of defendant Dupont Model Management, Inc. are in or affecting commerce, as defined in 15 U.S.C. § 44.
4. A complaint for injunctive and other relief against defendant Dupont Model Management, Inc. was filed by plaintiff on December 5, 1990, and this Court entered a temporary restraining order against said defendant on December 5, 1990.
5. Defendant Dupont Model Management, Inc. was [*3] served with a summons, complaints temporary restraining order, proposed preliminary injunction, and exhibits on December 7, 1990, in accordance with Fed. R. Civ. P. 4.
6. On December 10, 1990 this Court entered a Stipulated Order for Preliminary Injunction. The Stipulated Preliminary Injunction extended the conduct prohibitions contained in the Temporary Restraining Order during the pendency of this action. Specifically, defendants were enjoined from making any false or misleading statements in connection with the marketing or sale of any photograph shooting sessions, photographs, portfolios, agency book photographs, and modeling employment or booking services.
"1. Defendant Dupont Model Management, Inc. is a single economic entity comprised of Dupont Model Management, Inc.; Dupont Models, Inc.; Commercial People (except for the activities of th e Ohio corporation Commercial People, Inc., in Cincinatti, Ohio); and Cactus, Inc. The actions of each of these entities are attributable to Dupont model Management, Inc. [*4] References to "Dupont Model Management, Inc." or "Dupont Model Management" are deemed to include each of the above entities. [The Federal Trade Commission contends that the activities of Commercial People, Inc., in Cincinatti, Ohio, are part of this single economic entity; defendants dispute this contention.]"
"14. The net revenues of Dupont Model Management, Inc., during 1989 and 1990 were at least $ 2.1 million. All but approximately $ 16,070 of these revenues were derived from the sale of photographic services to prospective models."
8. Defendant Dupont Model Management, Inc. informed the court on October 31, 1991 that it will not defend this action at trial. Plaintiff is thus entitled to a default judgment against defendant Dupont Model Management, Inc. pursuant to Rule 55 of the Federal Rules of Civil Procedure.
9. For purposes of this Final Judgment and Order, and for the enforcement of the judgment entered herein, defendant Dupont Model Management, Inc. is construed as a single economic entity comprised of Dupont Model Management, Inc.; Dupont Models, Inc.; Cactus, Inc.; and, Commercial People (except for the activities of the Ohio corporation Commerical People, Inc.).
10. [*5] There is no genuine issue as to any material fact concerning defendant Dupont Model Management, Inc. and this Court concludes that plaintiff is entitled to judgment as a matter of law as to defendant's liability for such relief.
IT IS ORDERED that defendant Dupont Model Management, Inc. whether acting directly or through any business entity, corporation, subsidiary, division, or other device, is permanently enjoined from engaging or participating in any manner in the offering, marketing or sale of any modeling or acting-related goods or services, including but not limited to photograph shooting sessions, photographs, portfolios, headsheets, placement in agency books, and training, employment or booking services. For the purposes of this provision, acting shall include, but cot be limited to, the appearance in commercials, music videos, and films.
6. the clients, business reputation or business connections of such business.
IT IS FURTHER ORDERED that, in connection with the offering, marketing or sale of any employment, modeling or talent-related goods or services, including but not limited to photograph shooting sessions, photographs, portfolios, headsheets, placement in agency books, and training, employment or booking services, defendant Dupont Model Management, Inc., its successors, assigns, officers, agents, servants, attorneys and employees, and those persons in active concert or participation with the defendant who receive actual notice of this Final Judgment and Order for Permanent Injunction by personal service or otherwise, whether acting directly or through any business [*8] entity, corporation, subsidiary, division, or other device, are enjoined from failing, at the time of initial contact with prospective purchasers of such goods or services, to disclose clearly and conspicuously any business or financial relationship between defendant and the supplier of the goods or services, including, but not limited to, the amount paid by defendant to photographers who are recommended by defendant to consumers who wish to model, any overlapping ownership or control between defendant's business entity and the recommended photographer's business entity, and any financial interest held by defendant in the recommended photographer's business.
B. Create, maintain and make available to representatives of the Commission, upon reasonable notice, records relating to such business, including but not limited to copies of all advertisements and promotional materials for such business, contracts and sales scripts used in such business, and clients lists for such business.
D. Maintain, and upon reasonable notice make available to representatives [*10] of the Commission, the original and dated acknowledgements of receipt s of copies of this Final Judgment and Order required by Paragraph C above.
B. any proposed change in the corporate defendant, Dupont Model Management, Inc., including, but not limited to, dissolution, assignment, sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries, renaming or the assumption of a business name other than those listed in the caption of this lawsuit, or any other change in the corporation that may affect compliance obligations arising out of this Order.
B. subject to the reasonable convenience of the defendant, and at a location reasonably convenient to the defendant, its attorney, and the Federal Trade Commission, to interview the officers and employees of any such business organization, who may have counsel present, relating to any matters covered by this Final Judgment and Order.
IT IS FURTHER ORDERED that defendant Dupont Model Management is liable to the Federal Trade Commission and judgment shall be entered on behalf [*12] of the Federal Trade Commission in the amount of $ 2,083,930. Defendant shall pay such monies into an interest-bearing account administered by the Commission within thirty days of the entry of his Order. The money paid by defendant may be used by the Commission to provide consumer redress, or, if redress of he full sum or any portion thereof is not practicable, shall be deposited into the United States Treasury. The Commission shall notify defendant of its disbursement plan, but defendant shall have no right to contest the manner of distribution chosen by the Commission.
IT IS FURTHER ORDERED that the expiration of any obligation imposed by this Final Judgment and Order for Permanent Injunction shall not affect any other provisions of the Order.
IT IS FURTHER ORDERED that jurisdiction is retained by this Court for the purpose of enabling the parties to apply at any time for further orders and directions as may be necessary or appropriate for the interpretation or modification of this Final Judgment and Order for Permanent Injunction, for the enforcement or compliance thereof, or for the punishment of violations thereof.
PURSUANT TO Fed. R. Civ. [*13] P. 55, the Court hereby determines that there is no just reason for delay and directs that the judgment h erein be entered forthwith against defendant Dupont Model Management, Inc.
SO ORDERED, this 13th day of November, 1991.
1. This is an action by the FTC instituted under Sections 5 and 13(b) of the FTC Act, 15 U.S.C. §§ 45 and 53 (b). The Commission seeks both permanent injunctive relief and consumer red ress in the amount of the total consumer injury for deceptive acts and practices by defendants in violation of Section 5(a) of the FTC Act in connection with the sale of modeling promotional photographs and modeling employment opportunities.
2. The activities of Mr. du Pont are in or affecting commerce.
3. This court entered a temporary restraining order against defendants.
4. On December 10, 1990, this court entered a stipulated order for preliminary injunction: it extended conduct prohibitions of the temporary restraining order during the pendency of this action. Specifically, defendants were enjoined from making any false or misleading statements in connection with the marketing or sale of any photograph shooting sessions, photographs, portfolios, agency book photographs, and modeling employment or booking services.
5. On December [*3] 2, 1991, after a hearing held on November 19, 1991, this court held Mr. du Pont in civil contempt of the stipulated order for preliminary injunction for his operation of three businesses subsequent to the preliminary injunction. The court did not assess money damages; accordingly, they will be considered at this time. The findings from the court's prior opinion following the contempt hearing are incorporated herein.
Defendant Dupont Model Management, Inc. is a single economic entity comprised of Dupont Model Management, Inc.; Dupont Models, Inc.; Commercial People (except for the activities of the Ohio corporation, Commercial People, Inc. in Cincinnati, Ohio); and Cactus, Inc. The actions of each of these entities are attributable to Dupont Model Management, Inc. References to "Dupont Model Management, Inc." or "Dupont Model Management" are deemed to include each of the above entities. . .
(Stipulation, para. 1; Response to Request fo r Admission No. 63).
7. Mr. du Pont has been an officer and shareholder in each of the businesses which comprise Dupont Model Management, Inc. since the inception of each. He is [*4] the President of Dupont Model Management, Inc. and the sole officer and shareholder of Dupont Models, Inc.
8. Mr. du Pont opened the first Dupont office in Philadelphia, Pa. on or about September, 1988. Between July 1989 and October 1990, seven additional Dupont offices were opened in San Francisco, Ca., Washington, D.C., Dallas, Tx., Detroit, Mi., New York, NY, Cincinnati, Oh., and Pittsburgh, Pa., respectively. All offices, except those in New York and Pittsburgh, were closed before the FTC filed its complaint on December 5, 1990.
9. Defendants' offices were operated in a uniform manner according to procedures established by Mr. du Pont and issued from Dupont's Philadelphia office.
10. Mr. du Pont had extensive control over each of Dupont's several offices. He created their advertisements, promotional materials, and sales contracts and other business forms; he also maintained daily contact with the offices concerning office policy and procedure.
11. The advertisements used by Dupont Model Management, Inc. represented that the business: (1) offered employment opportunities to consumers with no experience as models; (2) had numerous clients who hired models; and (3) assisted consumers [*5] in obtaining employment.
12. The postcard mailings, pamphlets, and other promotional materials distributed by defendants represented that Dupont: (1) offered employment opportunities to consumers with no experience as models; (2) had numerous clients who hire models; and (3) assisted consumers in obtaining employment by circulating the consumers' photographs to clients. One such mailing stated: "Due to the popularity of Dupont Model Management, the jobs and bookings are coming in daily."
13. Mr. du Pont instructed Dupont sales personnel that their principal responsibility was to sell photographs.
14. Mr. du Pont wrote or approved the sales personnel sales scripts informing prospective models that: Dupont was a successful modeling agency as well as a promotion agency; the agency was looking for models to send on jobs such as commercials and store catalogues for Dupont clients; models must be "accepted" by the agency; the agency promoted its models through their photographs; and the agency made its money from commissions on fees paid by its clients to Dupont models.
15. Dupont sales personnel represented to prospective models that the business: offered employment opportunities to consumers [*6] with no experience as models; had numerous clients who hired models; assisted consumers in obtaining employment by circulating the consumers' photographs to their clients; charged no upfront fee and, made its money from commissions on fees paid by its clients to Dupont models.
16. By implying that the agency profited from commissions on bookings, defendants also implied that Dupont had an incentive to promote its models. In fact, almost all money received by Dupont was from the sale of photographs.
17. Dupont sales personnel made misrepresentations to individual consumers regarding the likelihood that they personally would be able obtain modeling work through the agency.
18. Sales agents, and Mr. du Pont himself, informed consumers that a review board would decide the models to accept. In fact, there was no review board or selection process; Mr. du Pont instructed employees to accept everyone, unless two consumers came together; then, employees were instructed to accept the one most able to pay. Employees were also instructed to telephone consumers who had failed to call back and to inform them of their "acceptance."
19. Almost all applicants we re accepted by the agency and told that [*7] they must have professional quality photographs in order for the agency to promote them. Many consumers did not have photographs: Dupont employees strongly recommended particular photographers. Employees were instructed not to tell consumers that Dupont made money from the sale of photographs. Employees sometimes told consumers that the photography fee was paid entirely to the photographer and that the agency made no money from the fee.
20. The "Agreement" form which Dupont's models were required to sign upon being accepted into the agency states that while Dupont could not guarantee employment, it would do "everything possible" to represent its models, and that the money paid for photographs covered the cost of the photography only.
21. Defendants charged consumers $ 375 - $ 395 (plus tax, if applicable) for the initial photography session. Defendants paid the photographers $ 80 - $ 100 for each session.
22. The Dupont Models Magazine was provided to prospective models waiting to be interviewed by Dupont. Mr. du Pont and his employees fabricated several of the magazine testimonials representing that Dupont was promoting its models and securing work on their behalf.
23. Mr. du Pont [*8] knew that consumers purchased photographs so that Dupont would represent them.
24. Defendants did not assist consumers in obtaining employment by circulating the consumers' photographs to clients. Defendants did not make any significant effort to promote models or obtain bookings on their behalf.
25. Defendants did not obtain any modeling work or interviews for any of the consumer complainants identified by the FTC. Defendants offered few, if any, employment opportunities to any consumers.
26. Defendants did not have numerous clients who hired its models. In fact, the business had few, if any, clients.
27. Mr. du Pont instructed his employees not to try to book talent during the agency's first six months to a year of operation and to wait for clients to call the agency. Dupont's representation of thousands of models consisted of maintaining those persons' photographs on file.
28. Mr. du Pont directed employees not to pursue modeling work for clients, despite knowledge of competition from other agencies.
29. Defendants had no established office procedure for maintaining models' records or for managing the models.
30. Dupont's Philadelphia office had approximately 2000 models' names [*9] on file and employed one person for booking purposes at a 15% commission from booking fees collected. Between March and July, 1989, booking commissions totaled approximately $ 100.
31. Defendants represented to consumers that by using the photographer recommended by Dupont, they would obtain photographs suitable for obtaining employment as models. When Dupont did not obtain such employment for them, the photographs were of no use to many consumers as they did not help them obtain other employment as models.
32. Defendants derived almost all their income from the sale of photographs to customers seeking employment as models.
33. Mr. du Pont had control over the finances of Dupont Model Management, Inc. and used the assets of the business for personal expenditures at his own discretion; he did not account to the business for personal expenditures made with business funds.
34. Dupont earned at least $ 2.1 million in net revenues in 1989 and 1990. Approximately $ 2,083,930 of this revenue was income from photographs purchased by consumers in 1989 and 1990.
35. After entry of the Stipulated Order for Preliminary Injunction, Mr. du Pont operated three new businesses -- Metro Model Management, [*10] Moda Model Management, a nd the Casting Directory. Mr. du Pont violated the Stipulated Order for Preliminary Injunction in operating those businesses.
36. Metro Model Management received at least $ 120,000 from consumers for photographs during the period it was in operation.
37. Moda Model Management received at least $ 139,281 from consumers for photographs during the period of time that the business was in operation.
38. At least one consumer paid the Casting Directory $ 295 for space in a Casting Directory publication that was never produced.
39. The total amount of money that defendants obtained from consumers through the misrepresentations of Dupont, Metro Model Management, Moda Model Management, and the Casting Directory was no less than $ 2,343,506.
40. Mr. du Pont misrepresented that Dupont was a legitimate modeling agency securing modeling engagements for talent it represented, and it made money by commissions from fees paid to its models when the agency obtained work for them.
41. In the modeling industry, a "client" is commonly defined as a person or entity who has paid a model's fee and a commission for work done.
42. Commercial modeling involves the use of models who look [*11] like "real" or "ordinary" people. Commercial work involves print or film advertisements for non-fashion products or services. While commercial work calls for photogenic models who need not be exceptionally attractive or have a high fashion "look," there are not likely opportunities for all persons as was misrepresented by Dupont.
43. Before agreeing to represent a model, a legitimate agency will usually want to see how that model or talent photographs. If a prospective model or talent does not already have photographs, the agency will recommend that the person have test shots taken by a photographer of his or her choice. While the agency may recommend several photographers for the prospective model to choose from, it is not common practice in the industry for an agency to charge the model for the photographs or receive a payment or commission from the photographer selected.
44. The legitimate agency's function is to promote its models diligently, build up a loyal clientele, and obtain work on behalf of its models from these clients. To develop clients and secure modeling assignments, an agency must have an effective booking method. Even well established agencies do not obtain substantial [*12] work for its models by waiting to be contacted by clients or potential clients.
45. The only fee an agency commonly charges its models is a fee to cover the cost of being in a model's book, a compilation of photographs of the agency's models. The fee charged is the amount necessary to cover the cost of publishing the book.
46. Mr. du Pont directly participated in and authorized false representations that: Dupont was a successful modeling agency offering employment opportunities to consumers with or without modeling experience; Dupont had numerous clients who hired its models; Dupont's principal source of income was commissions on fees paid by its clients to Dupont's models; by using photographers recommended by Dupont, consumers would obtain photographs suitable for use in obtaining modeling employment; and, Dupont assisted consumers selected to be models in obtaining modeling employment by circulating consumers' photographs to its clients.
47. While Mr. du Pont created the appearance of operating a bona fide modeling agency, Dupont was not a modeling agency and rarely, if ever, obtained modeling employment on behalf of its models. Dupont had few if any clients; its principal source [*13] of income was profit from fees paid for photographs, not commissions on fees paid by clients to Dupont models; in many instances, Dupont did not provide consumers with photographs suit ab le for use in obtaining modeling employment; and Dupont rarely, if ever, secured work on behalf of its models by circulating models' photographs or otherwise.
48. Mr. du Pont controlled the method of business at Dupont.
49. Mr. du Pont directly participated in and authorized conduct he knew to be fraudulent and dishonest.
50. The representations made by Mr. du Pont and Dupont were the type upon which a reasonably prudent person would rely.
51. Mr. du Pont's operation of the three businesses in contempt of the stipulated order for preliminary injunction perpetrated Dupont's fraudulent scheme on more unsuspecting consumers. Based on the evidence and the defendant's history of non-compliance with the law and with this court's Orders, the court finds it reasonably likely that if unrestrained, Mr. du Pont will continue to engage in a pattern of unlawful and fraudulent business practices.
1. This court has jurisdiction over the subject matter of the action and the parties.
2. The complaint [*14] states a claim upon which relief may be granted against Mr. du Pont under Sections 5 and 13(b) of the FTC Act. 15 U.S.C. §§ 45, 53(b).
3. The Commission is authorized to seek the relief requested by Section 13(b) of the FTC Act. See F.T.C. v. Kitco of Nevada, 612 F.Supp. 1282, 1291, 1295 (D.Minn. 1985).
An Order for permanent Injunction and a Final Judgment follow.
AND NOW, this 22d day of January, in accordance with the accompanying Memorandum and Order for Permanent Injunction, it is ORDERED that judgment shall be entered in favor of Federal Trade Commission and against defendant David L. du Pont in the amount of $ 2,343,506 and against defendant Dupont Model Management, Inc. in the amount of $ 2,08 3,930; liability is joint and several. Monies collected on this judgment shall be deposited by the Federal Trade Commission in an interest bearing account for distribution pursuant to a disbursement plan submitted by the Commission and approved by the Court.
Defendant David L. du Pont, whether acting directly or through any business entity, corporation, subsidiary, division, or other device, is permanently enjoined from engaging or participating in any manner prohibited in paragraphs II-VI in the OFFERING, MARKETING OR SALE OF ANY MODELING OR ACTING-RELATED GOODS OR SERVICES, including but not limited to photograph shooting sessions, photographs, portfolios, headsheets, placement in agency books, and training, employment or booking services. For the purposes of this provision, acting shall include, but not be limited to, the appearance in commercials, music videos, and films.
IT IS FURTHER ORDERED that, in connection with the offering, marketing [*17] or sale of any employment, modeling or talent-related goods or services, including but not limited to photograph shooting sessions, photographs, portfolios, headsheets, placement in agency books, and training, employment or booking services, defendant David L. du Pont, his agents, servants, attorneys and employees, and those persons in active concert or participation with him who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any business entity, corporation, subsidiary, division, or other device, are enjoined from failing, at the time of initial contact with prospective purchasers of such goods or services, to disclose clearly and conspicuously any business or financial relationship between defendant and the supplier of the goods or services, incl uding, but not limited to, the amount paid by defendant to photographers who are recommended by defendant to consumers who wish to model, any overlapping ownership or control between defendant's business entity and the recommended photographer's business entity, and any financial interest held by defendant in the recommended photographer's business.
B. Create, maintain and make available to representatives of the Commission, upon reasonable notice, records relating to such business, including but not limited to copies of all [*19] advertisements and promotional materials for such business, contracts and sales scripts used in such business, and clients lists for such business.
D. Maintain, and upon reasonable notice make available to representatives of the Commission, the original and dated acknowledgements of receipts of copies of this Final Judgment and order required by Paragraph C above.
B. subject to the reasonable convenience of the defendant, and at a location reasonably convenient to the defendant, his attorney, and the Federal Trade Commission, to inte rview the officers and employees of any such business organization, who may have counsel present, relating to any matters covered by this Final Judgment and Order.
A. Any assets, whether held under the name of David L. du Pont, Dupont Model Management, Inc., Metro Model Management, Moda Model Management, or the Casting Directory, or under the name of any branch, subsidiary, affiliate, division or other related business entity, shall remain frozen pending satisfaction of the judgment herein.
B. For the purpose of this lawsuit, the two Mercedes [*22] automobiles, one owned by defendant David L. du Pont, and one owned by Dupont Model Management, Inc., are deemed assets of Dupont Model Management, Inc.
IT IS FURTHER ORDERED that any bank, savings and loan institution, credit union, financial institution, brokerage house, trustee, or any other person having custody or control of any records, accounts, or other assets, owned directly or indirectly, of record or bene fi cially, by defendant David L. du Pont doing business as Dupont Model Management, Inc., Metro Model Management, Moda Model Management, or the Casting Directory, shall, within thirty days of service of this Order, sell or liquidate such account or asset and remit the proceeds of such sale or liquidation to an interest-bearing account administered by the Commission.
IT IS FURTHER ORDERED that the expiration of any obligation imposed by the Final Judgment and Order for Permanent Injunction herein shall not affect any other provisions of the Order.
IT IS FURTHER ORDERED that jurisdiction is retained by this Court for the purpose of enabling the parties to apply at any time for further orders and directions as may be necessary or appropriate [*23] for the interpretation or modification of this Final Judgment and Order for Permanent Injunction, for the enforcement or compliance thereof, or for the punishment of violations thereof.
1 On December 10, 1990, this court entered a Stipulated Order for Preliminary Injunction. Specifically, defendants were enjoined from making any false or misleading statements in connection with the marketing or sale of any photograph shooting sessions, photographs, portfolios, agency book photographs, and modeling employment or booking services.
5. Dupont assists consumers selected to be Dupont models in obtaining employment by circulating the consumers' photographs to its clients.
3. Since entry of the preliminary injunction, Mr. DuPont has founded and has been directly responsible for the operation of at least three businesses in the modeling [*4] industry: Metro Model Management ("Metro"), Moda Model Management ("Moda"), and the Casting Directory.
4. Metro began doing business in Philadelphia, Pennsylvania in February, 1991; Moda opened in Mt. Laurel, New Jersey in March or April of 1991; the Casting Directory opened in Philadelphia in August, 1991.
5. All three businesses have ceased operations. Testimony was in dispute about when each closed, but it appears that both Moda and Metro closed in late summer, 1991. The Casting Directory succeeded Metro, and operated until October, 1991.
6. Mr. DuPont had extensive control of all three businesses. He created their advertisements, sales contracts, and other business forms; he contributed virtually all start-up capital; and he was authorized to hire and fire personnel.
7. Metro and Moda operated in a manner similar to that of corporate defendant Dupont Model Management. Advertisements seeking modeling talent for Metro and Moda were placed in local newspapers. Prospective consumers were interviewed in small groups; applicants were instructed to call the following day to learn whether they had been accepted by the agency. Virtually all applicants were accepted by the agency, and were [*5] told that they must have professional photographs in order for the agency to promote them. The cost of the photographs if purchased through Metro or Moda was typically $ 395.
8. The Casting Directory was a Philadelphia business that represented it would publish a directory of headshots for distribution to businesses using modeling talent. Consumers were sold "advertising space" for inclusion of their photographs in the book. There was a flat fee for this space, and the fee included sending the consumer to a photogr apher if the consumer did not already have acceptable photographs. Interested business persons would supposedly call an "800" number to contact the talent desired.
9. After the initial meeting at the Casting Directory, consumers were told to call the next day to find out if they had been accepted into the directory. The same procedure was used at Dupont Model Management, Moda, and Metro.
10. Mr. DuPont admitted that he believed that Section I of the Stipulated Order for Preliminary Injunction applied to the operation of Metro, Moda, and the Casting Directory.
11. Since entry of the Preliminary Injunction, Mr. DuPont, in connection with the operation of Metro, Moda, and the [*6] Casting Directory, has written and placed newspaper advertisements representing that these businesses: (1) offer employment opportunities to consumers with no modeling experience; (2) have numerous clients who hire models; and (3) assist consumers in obtaining employment.
12. Since entry of the Preliminary Injunction, Mr. DuPont, in connection with the operation of Metro, Moda, and the Casting Directory, has instructed the sales personnel of these businesses to make representations to consumers implying that these businesses: (1) offer employment opportunities to consumers with no modeling experience; (2) have numerous clients who hire models; and (3) assist consumers in obtaining employment.
13. Mr. DuPont did not provide all employees of Moda, Metro, and the Casting Directory with a copy of the Preliminary Injunction.
14. Metro, Moda, and the Casting Directory did not offer employment opportunities to consumers. At the time they represented, under the direction of Mr. DuPont, that employment opportunities were available, the businesses had no such opportunities available.
15. Metro, Moda, and the Casting Directory did not have numerous clients who hired models.
16. Metro, Moda, [*7] and the Casting Directory did not assist consumers in obtaining employment. The businesses did not make any significant efforts to promote or to obtain bookings for consumers.
17. Consumers who came to Metro and Moda were told that the agencies made their money through commissions when they, the consumer talent, made money through bookings. These statements implied that the agencies were selective in accepting talent, but virtually every consumer who applied was accepted.
18. By implying that the agencies profited from commissions on bookings, the statements also implied that Metro and Moda had incentive to promote the consumer talent. In fact, the only money received by Moda and Metro was from the sale of photographs.
19. After a consumer's photographs were received by Metro, duplicate copies of the photographs required by the agency were not promoted to prospective clients, but were simply placed in a file cabinet: this had also been the practice at Dupont Model Management.
20. Mr. DuPont contends that it takes several months to get a model management agency in operation, but Mr. DuPont and his staff did not disclose this fact to prospective consumers at Metro or Moda.
21. As a result [*8] of the misrepresentations made at Metro and Moda, many consumers purchased photographs from the agencies at a cost of $ 395.
22. The sales presentation at the Casting Directory was intended to and did lead at least one consumer to believe that it had numerous clients and work available. The witness paid the required $ 295 fee and had photographs taken of her infant daughter; she did not receive those photographs from the Casting Directory and they were never published in a directory. The photographs were delivered to the witness at the contempt hearing.
23. The Commission has established, through clear and convincing evidence, that the representations made by Metro, Moda, and the Casting Directory were false and misleading and in contempt of the Stipulated Order for Preliminary Injunction, and that David L. DuPont's operation of Metro, Moda, and the Casting Directory was in contempt of the Stipulated Order for Preliminary Injunction entered into with his knowledge and consent.
24. An appropriate Order follows.
IT IS ORDERED that defendant David L. du Pont, his agents, servants, employees and attorneys, and those persons in active concert or participation with [*9] him who received actual notice of this Order by personal service or otherwise, whether acting directly or through any business entity, corporation, subsidiary, division, or other device, is temporarily enjoined from engaging or participating in any manner in the offering, marketing or sale of any modeling or acting-related goods or services, including but not limited to photograph shooting sessions, photographs, portfolios, headsheets, placement in agency books, and training, employment or booking services. For the purposes of this provision, acting shall include, but not be limited to, the appearance in commercials, music videos, and films.
A. Any such assets, whether held under the name of David L. du Pont, Dupont Model Management, Inc., Metro Model Management, Moda Model Management, or the Casting Directory, or under the name of any branch, subsidiary, affiliate, division or other related business entity, shall remain frozen pending the disposition of this matter.
B. For the purpose of this lawsuit, the two Mercedes automobiles, one owned by defendant David L. du Pont, and one owned by Dupont Model Management, Inc., are deemed assets of Dupont Model Management, Inc.
B. Prohibited from destroying, erasing, mutilating, concealing, altering, transferring, or otherwise disposing of, in any manner, directly or indirectly, any contracts, accounting data, correspondence, advertisements, computer tapes, discs, or other computerized records, books, written or printed records, handwritten notes, telephone logs, telephone scripts, receipt books, ledgers, personal and business canceled checks and check registers, bank statements, appointment books, copies of federal, state or local business or personal income or property tax returns, and other documents or records of any kind whic h relate to the business practices or the business or personal finances of David L. du Pont, including the business practices or finances of Dupont Model Management, Inc., Metro Model Management, Moda Model Management, and/or the Casting Directory.
IT IS FURTHER ORDERED that any bank, savings and loan institution, credit union, financial institution, brokerage house, trustee, or any other person having custody or control [*12] of any records, accounts, or other assets, owned directly or indirectly, of record or beneficially, by defendant David L. du Pont or by Dupont Model Management, Inc., Metro Model Management, Moda Model Management, or the Casting Directory, are hereby retrained and enjoined from selling, transferring, pledging, assigning, liquidating, encumbering, delivering, loaning or otherwise disposing of the contents of such account or asset, whether by payments or withdrawals from such account, except as allowed by further Order of this court.
IT IS FURTHER ORDERED that any bank, savings and loan institution, broker-dealer, escrow agent, title company, financial institution, or person maintaining or having custody or control of any account or other asset of defendant David L. du Pont, Dupont Model Management, Inc., Metro Model Management, Moda Model Management, or the Casting Directory, or that any time since December 10, 1990, maintained or had custody or control of any such account or asset, shall file with the court and serve on counsel for the Commission and the account holder a certified statement setting forth the number of, and balance in, each such account or a description of [*13] the nature and value of such asset, as of the close of business on the day on which this order is serve, and, if the account or other asset has been closed or removed, the date closed or removed.
IT IS FURTHER ORDERED t hat defendant David L. du Pont shall provide the Commission by December 10, 1991, with completed financial statements on the forms attached to this Order, for himself individually, and for Metro Model Management, Moda Model Management, and the Casting Directory.
IT IS FURTHER ORDERED that defendant David L. du Pont shall immediately provide a copy of this Order to each of his agents, servants, employees, and attorneys, and those persons in active concert or participation with him in any employment, modeling or talent-related business.
IT IS FURTHER ORDERED that copies of this Order may be served by employees or agents of the Commission upon any financial institution or person that may be in possession of any assets, property, or property rights of defendant David L. du Pont, Dupont Model Management, Inc., Metro Model Management, Moda Model Management, or the Casting Directory, or that may be subject to this Order.
IT IS FURTHER [*14] ORDERED that pursuant to Section 604 of the Fair Credit Reporting Act, 15 U.S.C. § 1681b, any consumer reporting agency shall furnish a consumer report concerning defendant David L. du Pont, Metro Model Management, Moda Model Management, or the Casting Directory, upon the request of plaintiff.
Instructions: Complete all items; attach additional sheets as needed. Sign and date completed form on last page.
3. List your primary place(s) of residence since December 10, 1990, the dates of your, your spouse's, or children's acquisition of that (those) residence(s), the interest which you, your spouse, and/or children had in that (those) residence(s) and the means by which, the date on which and the cost at which you, your spouse, and/or children obtained and/or disposed [*15] of that (those) residence(s).
5. List all payments made to you, your spouse, or children by Dupont Model Management, Inc., commercial people, Inc., Metro Model Management, Moda Model Management, and/or the Casting Directory, or any affiliated or subsidiary companies since December 10, 1990. The payments should include, but not be limited to, salary, commissions, bonuses, loans, advances, and any other form of compensation from the company to you, your spouse, or children.
6. List each bank, savings & loan, brokerage firm, or other financial institution or depository in which you, your spouse, and/or children have had or now currently have a personal account since December 10, 1990.
12. List any judgments or settlements (including tax liens or judgments), recorded or unrecorded, of any civil, criminal or regulatory actions entered against you since December 10, 1990.
15. Do you have a copy of any financial statements, profit or loss statements, balance sheets, or federal corporate income tax returns prepared for years 1990 or 1991 for Dupont Model Management, Inc., commercial People, Inc., Metro Model Management, Moda Model Management, and/or the Casting Directory, or any affiliated or subsidiary companies? Yes ( ) No ( ). If answer is yes, attach a copy and list the attachments below. If answer is no, describe below the location of any of such documents known to you for which you do not have a copy.
With knowledge of the penalties for false statements provided by 18 U.S.C. § 1001 ($ 10,000 fine and/or five years imprisonment) and with knowledge that this financial statement is submitted by me to affect action by [*18] the Federal Trade Commission and/or a Federal Court, I certify that the above statement is true and that it is a complete and factually correct statement of, among other things, all my liabilities, income and assets, real and personal, whether held in my name or by another, as well as those of my spouse and children.
Instruction: Complete all items; attach additional sheets as needed. Sign and date completed form on last page.
9. Names and Addresses of Principal stockholders. Indicate the ownership of 100% of the stock of [*19] the Corporation. Number of shares owned by each person or entity.
10. (A) Names, Titles and Addresses of Current Officers. Also list the Number of Shares (if any) held by each officer and the length of time each person has served in the current position.
(B) Names and Addresses of Current Members of Board of Directors.
11. List states and municipalities to which taxes have been paid and/or are being paid. Describe nature and amount of such taxes, state most recent year of payment thereof and whether tax payments are current.
12. Has this business filed United States business Income Tax Returns since December 10, 1990. Yes ( ) No ( ). If yes, identify and attach copies of the responsive corporate tax return(s).
(a) Business's Independent Certified Public Accoun tants from December 10, 1990 to present.
(b) Attorneys retained by business from December 10, 1990 to present.
14. Does this [*20] business have a Profit and Loss Statement, Statement of Assets and Liabilities and/or Balance Sheet for 1990 or 1991? Yes ( ) No ( ). If yes, identify below and submit one copy of each. If audited documents are available identify below and submit one copy of each.
Give names and addresses of any banks, savings and loan associations, mutual funds and any other like or similar financial institutions, within the United States or elsewhere where such accounts are/ were located. Indicate name, address and number of accounts and current balance(s). If any such accounts have been closed, state the date of closure.
16. List by name and account number all other accounts held in the name(s) of any person(s) or corporation(s), other than this business, through which the business received payments, commissions, interest or any other income or fees, at any time since December 10, 1990.
17. List all commercial paper, [*21] negotiable or non-negotiable, in which the business has any interest whatsoever, presently in transit or in the possession of any banking institution. Describe such paper and the Corporation's interest therein, and state its present location. List all accounts and loans receivable in excess of $ 100 and specify if due from an officer, stockholder, or director.
(C) Describe the nature of the compensation paid to the persons listed in (A) and (B) above and set forth stock options, pensions, profit sharing, royalties, or other deferred compensation rights of said persons.
22. List all other supplementary fields of activity in which this business is engaged, either directly, through subsidiaries, or affiliates, stating the name(s) and state(s) of incorporation of such subsidiaries or affiliates and providing the articles of incorporation for these entities.
24. (A) List all Real Estate and Personalty, of an estimated value in excess of $ 100.00, currently owned or under contract to be purchased by this business and where located: (Include inventory, machinery, equipment, furniture, vehicles, and any other personal property).
(D) List and describe all other encumbrances (including but not limited to security interest, whether perfected or not) against any such personalty owned by the business as is listed in 21(A) above.
25. List all Life Insurance, now in force on any or all officers, directors, and/or "key" employees, setting forth face amounts, names of life insurance companies, and policy numbers where this business has an "insurable [*24] interest," and/or is paying the premium or part of same. Where applicable, indicate under which policy(s) this business is a beneficiary, type policy(s), yearly premium, and location of policy(s).
26. (A) List all persons authorized to sign business checks.
(B) List the names and addresses of all companies that have issued the business credit cards and the account numbers.
(C) List all persons provided and/or authorized to use such credit card(s).
27. List all transfers of any or all assets (Real) and/or (Personal) and each (over $ 300.00) made by this business, OTHER THAN IN THE ORDINARY COURSE OF BUSINESS, during the current calendar year and state to whom transfer was made. Describe compensation paid by recipient and to whom.
28. Is this business a party in any law suit now pending?
( ) Yes. (give details below) ( ) No.
29. Please list names and addresses of any person or other business entity, holding funds in escrow or in trust for this business, or any of its subsidiaries, or affiliates.
With knowledge of the penalties for false statements provided by 18 U.S.C. § 1001 ($ 10,000 fine and/or five years imprisonment) and with knowledge that [*25] this financial statement is submitted by me as a responsible officer of this Corporation to affect action by the Federal Trade Commission and/or a Federal Court, I hereby certify that I completely understand the above statement, and that the same is a true and complete statement of all corporate income and assets, real and personal, whether held in the Corporate name or otherwise.
9. Names and Addresses of Principal stockholders. Indicate the ownership of 100% of the stock of the Corporation. Number of shares owned by each person or entity.
10. (A) Names, Titles and Addressee of Current Officers. Also list the Number of Shares (if any) held by each officer and the length of time each person has served in the current position.
11. List states and municipalities to which taxes have bean paid and/or are being paid. Describe nature and amount of such taxes, state most recent year of payment thereof and whether tax payments are current.
(a) Business's Independent certified Public Accountants [*27] from December 10, 1990 to present.
14. Does this business have a Profit and Loss Statement, Statement of Assets and Liabilities and/or Balance Sheet for 1990 or 1991? Yes ( ) No ( ). If yes, identify below and submit one copy of each. If audited documents are available identify below and submit one copy of each.
16. List by name and account number all other accounts held in the name(s) of any person(s) or corporation(s), other than this business, through which the business received payments, [*28] commissions, interest or any other income or fees, at any time since December 10, 1990.
17. List all commercial paper, negotiable or non-negotiable, in which the business has any interest whatsoever, presently in transit or in the possession of any banking institution. Describe such paper and the corporation's interest therein, and state its present location. List all accounts and loans receivable in excess of $ 100 and specify if due from an officer, stockholder, or director.
25. List all Life Insurance, now in force on any or all officers, directors, and/or "key" employees, setting forth face amounts, names of life [*31] insurance companies, and policy numbers where this business has an "insurable interest," and/or is paying the premium or part of same. Where applicable, indicate under which policy(s) this business is a beneficiary, type policy(s), yearly premium, and location of policy(s).
27. List all transfers of any or all assets (Real) and/or (Personal) and each (over $ 300.00) made by this business, OTHER THAN IN THE ORDINAR Y COURSE OF BUSINESS, during the current calendar year and state to whom transfer was made. Describe compensation paid by recipient and to whom.
With knowledge of the penalties for false statements provided by 18 U.S.C. [*32] § 1001 ($ 10,000 fine and/or five years imprisonment) and with knowledge that this financial statement is submitted by me as a responsible officer of this Corporation to affect action by the Federal Trade Commission and/or a Federal Court, I hereby certify that I completely understand the above statement, and that the same is a true and complete statement of all corporate income and assets, real and personal, whether held in the Corporate name or otherwise.
(a) Business's Independent certified Public Accountants from December 10, 1990 to present.
16. List by name and account number all other accounts held in the name(s) of any person(s) [*35] or corporation(s), other than this business, through which the business received payments, commissions, interest or any other income or fees, at any time since December 10, 1990.
25. List all Life Insurance, now in force on [*38] any or all officers, directors, and/or "key" employees, setting forth face amounts, names of life insurance companies, and policy numbers where this business has an "insurable interest," and/or is paying the premium or part of same. Where applicable, indicate under which policy(s) this business is a beneficiary, type policy(s), yearly premium, and location of policy(s).
With knowledge of the penalties for false statements provided by 18 U.S.C. § 1001 ($ 10,000 fine and/or five years imprisonment) and with knowledge that this financial statement is submitted by me as a responsible officer of this Corporation to affect action by the Federal Trade Commission and/or a Federal Court, I hereby certify that I completely understand the above statement, and that the same is a true and complete statement of all corporate income a nd assets, real and personal, whether held in the Corporate name or otherwise.

References: v. 
 § 44
 v. 
 § 1681
 § 1001
 § 1001
 § 1001
 § 1001