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> Finally, the order imposes a judgment of $12.8 million, which will be suspended upon payment of $50,000 to the Commission and the payment of certain unpaid in
by jawns 8y ago
> Finally, the order imposes a judgment of $12.8 million, which will be suspended upon payment of $50,000 to the Commission and the payment of certain unpaid income tax obligations. If the defendants are later found to have misrepresented their financial condition to the FTC, the full amount of the judgment will immediately become due.
That's an interesting way of structuring the penalty.
I wonder how enforceable it would be.
- ceejayoz 8y agoWhy wouldn't it be enforceable? It's a court order. It's also quite standard: https://www.ftc.gov/news-events/blogs/business-blog/2016/03/suspension-prevention-story-behind-suspended-judgments https://www.ftc.gov/news-events/blogs/business-blog/2016/03/...
- jawns 8y agoMy apologies. I should have said "recoverable" rather than "enforceable." I would assume that if a company is in trouble with the FTC, it's probably not in the best financial shape after paying even the costs associated with the suspended judgment. So if the FTC finds that the company made an omission and the full judgment comes due, will it actually recover that money? Or is the point to just fine them out of existence, without concern for actually recovering the money?
- deleted 8y ago[deleted]
- ceejayoz 8y agoIf the FTC discovers they've hidden assets, they can go back to court, reinstate the full penalty, and go after those assets. I suspect there'd be additional criminal charges like perjury available to them, as well.
- owenmarshall 8y ago> Or is the point to just fine them out of existence, without concern for actually recovering the money? That’s my read. The FTC seems to be hanging the sword of Damocles in a very public way. If this company doesn’t comply, a press release describing how the US government is absolutely wrecking them is probably worth not recovering all the judgement.