COMPLT52.DOJ
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NEW YORK
UNITED STATES OF AMERICA, Plaintiff,
v.
GLOBAL TOY DISTRIBUTORS, INC., a New York Corporation;
RICHARD D. PATETTA, individually and as an officer of the corporation;
and
GEORGE J. McDERMOTT, individually, Defendants.
Civil Action No. CV-97-
COMPLAINT FOR CIVIL PENALTIES, CONSUMER REDRESS,
PERMANENT INJUNCTION AND OTHER EQUITABLE RELIEF
Plaintiff, the United States of America, acting upon notification and
authorization to the Attorney General by the Federal Trade Commission
("FTC" or "the Commission"), pursuant to Section 16(a)(1) of the
Federal Trade Commission Act ("FTC Act"). 15 U.S.C. § 56(a)(1), for
its complaint alleges:
1. Plaintiff brings this action under Sections 5(a)(1), 5(m)(1)(A),
13(b), 16(a) and 19 of the FTC Act, 15 U.S.C. § § 45(a)(1),
45(m)(1)(A), 53(b), 56(a) and 57b, to secure civil penalties, consumer
redress, a permanent injunction and other equitable relief for
defendants' violations of the FTC's Trade Regulation Rule entitled
"Disclosure Requirements and Prohibitions Concerning Franchising and
Business Opportunity Ventures" ("the Franchise Rule" or "the Rule"),
16 C.F.R. Part 436.
JURISDICTION AND VENUE
2. This Court has jurisdiction over this matter pursuant to 28 U.S.C.
§§ 1331, 1337(a), 1345 and 1355, and 15 U.S.C. § § 45(m)(1)(A), 53(b),
56(a) and 57b. This action arises under 15 U.S.C. § 45(a)(1).
3. Venue in the Eastern District of New York is proper under 28 U.S.C.
§ § 1391(b) and (c) and 1395(a), and 15 U.S.C. § 53(b).
DEFENDANTS
4. Defendant Global Toy Distributors, Inc. ("Global"), a New York
corporation with its principal place of business at 843-B Father
Capadanno Boulevard, Staten Island, New York 10305, promotes and sells
SNIPPETS:
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NEW YORK
UNITED STATES OF AMERICA, Plaintiff,
GEORGE J. McDERMOTT, individually, Defendants.
Civil Action No. CV-97-COMPLAINT FOR CIVIL PENALTIES, CONSUMER REDRESS,
PERMANENT INJUNCTION AND OTHER EQUITABLE RELIEF
Plaintiff, the United States of America, acting upon notification and authorization to the
15 U.S.C. § 56, for its complaint alleges:
Plaintiff brings this action under Sections 5, 5, 13, 16and 19 of the FTC Act, 15 U.S.C. § §
Defendant Global Toy Distributors, Inc., a New York corporation with its principal place of
In connection with the matters alleged herein, he has transacted business in the Eastern
At all times material to this complaint, acting alone or in concert with others, he has
At all times relevant to this complaint, the defendants have maintained a substantial course
In order to induce consumers to make a minimum investment of approximately five thousand
The defendants also have made representations about the earnings potential of the business
The Franchise Rule requires a franchisor to provide prospective franchisees with a complete
The Franchise Rule additionally requires: that the franchisor have a reasonable basis for any
asis for the earnings claim and include a warning that the earnings claim is only an estimate.
Section 19 of the FTC Act, 15 U.S.C. § 57b, authorizes this Court to grant such relief as the
This Court, in the exercise of its equitable jurisdiction, may award ancillary relief to
Assistant Attorney General Civil Division
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