10 ordered to never again work with mail
A judge has ordered 10 people behind a deceptive subscription renewal business out of White City that made millions to never work in direct-mail marketing in any capacity.
Judge Mark Clarke issued his final ruling Monday “in favor of the Federal Trade Commission on all claims” in U.S. District Court in Medford, ordering a permanent injunction for 10 individuals and more than 80 related businesses largely based in Southern Oregon that deceived people into buying marked-up subscriptions for publications around the country such as the Wall Street Journal and New York Times using mailers that looked like subscription renewal notices direct from the publishers.
Ringleaders Dennis Simpson of California, and Jeffrey and Lori Hoyal of Southern Oregon, who received the bulk of profits from about 80 interrelated businesses with generic names such as Adept Management, Maximillian, Reality Kats and Henry Cricket Group that worked together in a “common enterprise” in the scheme, were also ordered to repay more than $8.9 million.
Clarke’s ruling concluded a three-year FTC fraud lawsuit that involved a five-week bench trial and reams of legal procedures — some 731 filings including about 220 motions and counter-motions — between the FTC’s first complaint filed April 27, 2016, and the final order closing the case June 10.
The ruling differs from earlier settlements with state attorneys general, such as a $3 million settlement with the Oregon Attorney General’s office in 2015, in which Jeffrey Hoyal and Dennis Simpson were able to settle without admitting to any wrongdoing.
In Clarke’s 125-page findings of fact from the November trial, he noted that Simpson still worked in the subscription industry with a former business partner on claims that the ruling didn’t apply to him because he didn’t own a mailing business in Oregon.
In addition to a ban on direct mail marketing, Clarke’s order includes orders expressly prohibiting the Hoyals, Simpson and defendants Shannon Bacon, Colleen Kaylor, Laura Lovrien, Noel Parducci, Lydia Pugsley and William Stricker from selling subscriptions or assisting others. Under penalty of perjury, the fraud defendants will be required to provide current addresses and contact information, will have to provide their taxpayer identification information to the FTC, and must comply with investigators for a period lasting at least two decades, according to the order.
Reach reporter Nick Morgan at 541-776-4471 or email@example.com. Follow him on Twitter @MTCrimeBeat.