Antitrust Law Daily Wrap Up, CONSUMER PROTECTION—D. Md.: Asset freeze lifted in FTC action against unauthorized immigration services operation, (Apr 23, 2014)

By Linda O’Brien, J.D., LL.M.

In an FTC action against a purported immigration services operation for deceptive trade practices, the federal district court in Baltimore ruled that the ex parte temporary restraining order with an asset freeze was no longer in effect. However, to provide adequate security for payment of the monetary judgment imposed to compensate consumers, the defendants were required to seek leave of court before selling or encumbering their residence (Federal Trade Commission v. Alban, April 22, 2014, Garbis, M.).

Manual and Lola Alban operated a business offering immigration-related services to Spanish-speaking customers. In June 2011, the FTC filed a complaint for deceptive trade practices against the Albans, asserting they violated the FTC Act by misrepresenting to consumers that they were legally authorized to provide such services. The court granted the FTC’s application for an ex parte temporary restraining order with an asset freeze.

Following a bench trial in March 2014, the court found the Albans and their company, Loma International Business Group, liable for misrepresenting to immigrants that they were authorized providers of immigration services. The court also entered a monetary judgment to compensate consumers and a permanent injunction enjoining the defendants from misrepresenting any goods or services they promoted, including the authority or qualifications to provide immigration or tax preparation services. The permanent injunction did not incorporate the asset freeze. The FTC requested that the asset freeze remain in effect.

The court ordered that the temporary restraining order with the asset freeze was no longer in effect. The Albans contended that the asset freeze caused hardship, since they needed funds for ordinary living expenses. The court noted that the Albans were not likely to dissipate their assets or evade compliance with further payment orders. To ensure adequate security for payment of the monetary judgment, the Albans were required to seek leave of court before selling or encumbering their residence, which had a market value of over $400,000, the court concluded.

The case is No. MJG-11-1483.

Attorneys: Eliseo N. Padilla for the FTC. Andrew Jay Graham (Kramon and Graham PA) for Loma International Business Group, Inc., Servicios LatinoAmericanos De Maryland, Inc., Manuel E. Alban, and Lola Alban.

Companies: Lomas International Business Group, Inc.; Servicios LatinoAmericanos De Maryland, Inc.

Cases: ConsumerProtection MarylandNews