Post on 09-Aug-2020
IN THE CIRCUIT COURT OF THE SEVENTEENTH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA
OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA,
PLAINTIFF,
vs.
DIVERSIFIED EDUCATIONAL RESOURCES, dlb/a Jefferson High School, L.L.C., and Enterprise High School, L.L.C., a Florida limited liability company, ALEXANDER WOLFRAM, a/k/a Alex Wolfram, an individual, and MARIA T. GARCIA, a/k/a Maria Garcia, a/k/a Maria Calleja, a/k/a Maria Trinidad Garcia Calleja, an individual,
DEFENDANTS.
CASE NO.: CACE 14-018025
CONSENT FINAL JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT ALEXANDER WOLFRAM a/k/a ALEX WOLFRAM
WHEREAS, this CONSENT FINAL JUDGMENT AND PERMANENT INJUNCTION
("Consent Judgment" or "Order") was entered upon agreement and stipulation between· the
Plaintiff, OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS,
STATE OF FLORIDA ("ATTORNEY GENERAL" or "DEPARTMENT"), and Defendant,
ALEXANDER WOLFRAM a/k/a ALEX WOLFRAM ("WOLFRAM" or "CONSENT
DEFENDANT");
WHEREAS, the ATTORNEY GENERAL initiated an investigation concerning the
business acts and practices of certain persons and entities, and subsequently filed a Complaint
("Complaint") against Diversified Educational Resources, LLC d/b/a Jefferson High School,
LLC and Enterprise High School, LLC ("DEFENDANT BUSINESSES"), MARIA T.
GARCIA, a/k/a Maria Garcia, a/k/a Maria Calleja, a/k/a Maria Trinidad Garcia Calleja and the
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CONSENT DEFENDANT (collectively referred to herein as "DEFENDANTS") alleging
violations of the Florida Deceptive and Unfair Trade Practices Act, Florida Statutes Chapter 501,
Part II ("FDUTPA");
WHEREAS, the United States Federal Trade Commission initiated an action in the
United States District Court for the Southern District of Florida (FTC v. Diversified Educational
Resources, et al., No. 0:14-cv-62116-JIC (the "FTC Action")), against the CONSENT
DEFENDANT and others charging violation of Section 5 of the FTC Act, U.S.C. § 45, based on
the same conduct underlying the Complaint in this action;
WHEREAS, all of the assets of the CONSENT DEFENDANT were frozen pursuant to
Court orders in the .r:'TC Action, with any such assets to be distributed pursuant to Court orders in
that Action; and
WHEREAS, the ATTORNEY GENERAL and the CONSENT DEFENDANT
(hereinafter collectively referred to as "THE PARTIES") have consented to the jurisdiction of
this Court, agree that venue is proper in this Court, and further agree and acknowledge that the
Court will retain jurisdiction over this matter.
THEREFORE, by express written consent of the CONSENT DEFENDANT, this
Court, based upon the foregoing and the consent of THE PARTIES, hereby ORDERS AND
ADJUDGES that:
FINDINGS
I. JURISDICTION AND VENUE
1. This action commenced wherein the ATTORNEY GENERAL sued the
DEFENDANTS pursuant to FDUTPA for activities related to the business of selling purported
academic products and/or services and/or supposed G.E.D./high school equivalency test
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preparation services or products. The Complaint arose from an investigation wherein the
ATTORNEY GENERAL, an agency of the state and the enforcing authority under FDUTPA,
determined that an enforcement action served the public foterest The ATTORNEY
GENERAL had full authority to bring this action.
2. The Complaint is an action for injunctive and declaratory relief, costs, damages,
attorney's fees, penalties and any other statutory relief available, pursuant to the Florida
Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Fla. Stat.
3. The Complaint charges that the DEFENDANTS participated in, had knowledge
of, and/or controlled or had the authority to control deceptive acts or practices in violation of
FDUTPA in the marketing and sale of fake high school diplomas, transcripts, verification
services and/or purported G.E.D./high school equivalency test preparation services or products to
consumers.
4. The CONSENT DEFENDANT is sui juris.
5. The CONSENT DEFENDANT neither admits nor denies any of the allegations
in the Complaint.
6. Only for purposes of this action, the CONSENT DEFENDANT admits the facts
necessary to establish jurisdiction.
7. This Court has subject-matter jurisdiction pursuant to FDUTPA.
8. Venue is proper in Broward County, Florida as the statutory violations alleged
herein occurred in, or affected, more than one judicial circuit in the State of Florida, including
Broward County, and the DEFENDANTS conducted business activities in Broward County,
Florida.
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9. All material actions alleged in the Complaint have occurred within four (4) years
of the filing of this lawsuit.
II. DEFENDANTS' RELEVANT COURSE OF CONDUCT
I 0. The DEFENDANT BUSINESSES are registered Florida Limited Liability
Corporations which own fictitious names also registered with the State of Florida.
11. The ATTORNEY GENERAL alleges the DEFENDANTS marketed,
advertised, sold, and provided purported high school diplomas, high school transcripts,
verification services and/or supposed G.E.D./high school equivalency test preparation services or
products.
12. The ATTORNEY GENERAL alleges the DEFENDANTS' acts and practices
constitute unfair, deceptive and unconscionable trade practices in violation of the Florida
Deceptive and Unfair Trade Practices Act Section 501.201 et seq.
13. Furthermore, the ATTORNEY GENERAL alleges the DEFENDANTS' acts
and practices violate § 817.06, Florida Statutes, § 501.97, Florida Statutes and therefore
constitute per se FDUTP A violations.
14. The ATTORNEY GENERAL alleges consumers in the State of Florida were
actually injured by DEFENDANTS' acts and practices.
ORDER
15. Final judgment is hereby entered on the causes of action asserted under the
Florida Deceptive and Unfair Trade Practices Act (Counts I through IV of the Complaint) in
favor of the ATTORNEY GENERAL and against the CONSENT DEFENDANT
ALEXANDER WOLFRAM, 6030 East Monterra Way, Scottsdale, Arizona 85266.
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I. SCOPE OF CONSENT JUDGMENT
16. The ATTORNEY GENERAL acknowledges by execution hereof that this
Consent Judgment constitutes a complete settlement of claims asserted against the CONSENT
DEFENDANT in the ATTORNEY GENERAVs Complaint filed in this case.
17. Nothing herein constitutes approval by the ATTORNEY GENERAL of the
CONSENT DEFENDANT's or any other person or corporation's past or future business
practices. The CONSENT DEFENDANT shall not make any representation contrary to this
paragraph.
18. The ATTORNEY GENERAL agrees that it shall not proceed with or institute
any civil actions or proceedings against the CONSENT DEFENDANT that are inconsistent
with the provisions of this Consent Judgment.
19. Nothing herein shall preclude the ATTORNEY GENERAL, however, from
either enforcing the provisions of this Consent Judgment, or pursuing additional actions against
CONSENT DEFENDANT which are outside the scope of the release set forth herein.
Specifically, acts conducted previously that were unknown to the ATTORNEY GENERAL at
the time of the entry of this Consent Judgment or acts conducted after the entry of this Consent
Judgment are not released, and enforcement may arise as the result of such acts.
20. Nothing in this Consent Judgment releases any claims the ATTORNEY
GENERAL or any other person may have against any other defendant or other person or entity
related to the allegations in the Attorney General's Complaint.
21. Nothing herein relieves any person or corporation of its duty to comply with all
applicable laws or constitutes authorization by the ATTORNEY GENERAL for any such
person or corporation to engage in acts and practices prohibited by such laws.
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22. Moreover, unless expressly stated to the contrary, nothing herein shall be
construed as a waiver or compromise of any private rights, causes of action, or remedies of any
private person, businesses, corporation, government or legal entity against the CONSENT
DEFENDANT with respect to the acts and practices covered by this Consent Judgment.
23. Likewise, nothing herein shall affect the testimonial obligations or right to take
legal or factual positions in defense of litigation or other legal proceedings of the CONSENT
DEFENDANT, to which the ATTORNEY GENERAL is not a party.
U. INJUNCTIVE TERMS
24. IT IS ORDERED that the CONSENT DEFENDANT is prohibited and enjoined
from the following acts or practices:
a. Violating the provisions of Chapter 501, Part II, Florida Statutes;
b. Violating the provisions of Section 817.06 Florida Statues;
c. Violating the provisions of Section 501. 97, Florida Statutes;
d. Advertising, marketing, promoting, offering for sale, selling or disseminating any
Academic Degree in Florida or to residents of Florida. "Academic Degree" as used herein
means any document issued or purported to be issued, that confers or purports to confer a
qualification, records or purports to record success in examinations or successful completion of a
course of study, or evidences or purports to evidence that the holder has completed any
curriculum and/or shown proficiency in any curriculum, whether denominated as a degree,
diploma, certificate, transcript or other name.
e. Advertising, marketing, promoting, offering for sale, selling or disseminating any
transcripts reflecting any kind of academic achievement and/or purported G.E.D./high school
equivalency test preparation services or products in Florida or to residents of Florida.
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f. Training, educating or advising any other person or entity, regarding the
solicitation, sale and/or dissemination of academic services and/or products in Florida or to
residents of Florida including, but not limited to academic degrees of any kind, transcripts
reflecting any kind of academic achievement, or purported G.E.D./high school equivalency test
preparation services or products;
g. Controlling/having the authority to control, participating in, or receiving any
benefit, either directly or through an intermediary, from the acts and practices of any business,
organization or entity, that, either within Florida or to residents of Florida:
i. Solicits, receives or otherwise accepts money or valuable consideration in
any manner or form from any person for the purpose of providing that person
or any other person with items represented as an academic degree of any
kind, items represented as transcripts reflecting any kind of academic
achievement, or purported G.E.D./high school equivalency test preparation
services or products;
ii. Advertises or otherwise represents that it can provide an academic degree of
any kind, transcripts reflecting any kind of academic achievement or
purported G.E.D./high school equivalency test preparation services or
products;
iii. Advertises or otherwise uses the acronym G.E.D. and/or GED;
iv. Holds itself out, by any means, as a "high school" or "school" and by any
title or designation incorporating the word "high school" or "school" or an
abbreviation thereof;
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v. Relates to the sale of purported academic and/or educational materials,
products, or services; and
vi. Submits any information to the Florida Department of Education's annual
private school survey.
25. The CONSENT DEFENDANT shall not effect any change in the fonn of doing
business or the organizational identity of any of the existing business entities or create any new
business entities as a method of avoiding the tenns and conditions set forth in this Judgment.
HI. MONETARY TERMS
26. Judgment is hereby entered in favor of the ATTORNEY GENERAL, whose
address 110. S.E. 6th Street, 101h Floor, Fort Lauderdale, Florida 33301, and against the
CONSENT DEFENDANT in the total sum of One Million Three Hundred Eighty-Eight
Thousand Five Hundred and Seventy-Nine Dollars ($1,388,579.00). This judgment's civil
penalties in the amount of One Million Three Hundred and Fifty Thousand Dollars
($1,350,000.00) and attorney's fees and costs in the amount of Thirty-Six Thousand Dollars
($36,000.00) are suspended, subject to the provisions below. As to this judgment, consumer
restitution in the amount of Two Thousand Five-Hundred and Seventy-Nine Dollars
($2,579.00) is to be paid by the CONSENT DEFENDANT according the provisions below.
Consumer Restitution
27. Judgment in the amount of Two Thousand Dollars Five Hundred and Seventy-
Nine Dollars ($2,579.00) ("Restitution Amount") is entered in favor of the ATTORNEY
GENERAL against the CONSENT DEFENDANT for consumer restitution, for which let
execution issue forthwith.
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Attorneys' Fees and Costs
28. Judgment in the amount of Thirty-Six Thousand Dollars ($36,000.00) is entered
in favor of the ATTORNEY GENERAL against the CONSENT DEFENDANT for attorneys'
fees and costs. This judgment as to attorneys' fees and costs will be suspended subject to the
suspension provisions below.
Civil Penalties
29. Judgment in the amount of One Million Three Hundred and Fifty Thousand
Dollars ($1,350,000.00) is entered in favor of the ATTORNEY GENERAL against the
CONSENT DEFENDANT as a civil penalty. This judgment as to civil penalties will be
suspended subject to the suspension provisions below.
Payment and Suspension Provisions
30. The Restitution Amount shall be paid on or before the date of this Consent
Judgment by wire transfer, certified funds or cashier's check, payable to the Department of
Legal Affairs Escrow Fund. Upon receipt, the funds shall be deposited into the Department of
Legal Affairs Escrow Fund, in accordance with Section 501.2101(1), Florida Statutes. In the
event actual restitution for future complainants exceeds the Restitution Amount, then the
Restitution Amount will be distributed pro-rata to the complainants determined by the
ATTORNEY GENERAL to be eligible for restitution. In no event shall any individual
consumer receive more than the amount they are actually owed. If any restitution monies remain
after the distribution of the Restitution Amount, the ATTORNEY GENERAL will deposit the
remaining monies into the Department of Legal Affairs Revolving Trust Fu'.1d and it shall be
used to defray the costs of restitution distribution and any attorneys' fees and costs incurred in
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enforcing this Consent Judgment, or as fees and costs associated with ongoing and future
enforcements initiatives pursuant to Chapter 501, Part II, Florida Statutes.
31. THE PARTIES' agreement to the suspension of part of the judgment as to civil
penalties and attorney's fees and costs is expressly premised upon the CONSENT
DEFENDANT's completion under oath of the Florida Rule of Civil Procedure Form 1.977 (Fact
Information Sheet) and the Office of the Attorney General's Financial Statement Form, including
all required attachments, on a date set certain by the Attorney General. The Fact Information
Sheet and all required attachments shall be sent to: Kristen Pesicek, Assistant Attorney General,
Office of the Attorney General, 110. S.E. 6th Street, l01h Floor, Fort Lauderdale, Florida 33301.
32. THE PARTIES' agreement to the suspension of part of the judgment as to civil
penalties and attorney's fees and costs is expressly premised upon the CONSENT
DEFENDANT's compliance with this Consent Judgment's Injunctive Terms.
33. THE PARTIES' agreement to the suspension of part of the judgment as to civil
penalties and attorney's fees and costs is expressly premised upon the truthfulness, accuracy, and
completeness of the CONSENT DEFENDANT's representations to the Department including,
but not limited to, the CONSENT DEFENDANT's sworn Fact Sheet, the Office of the
Attorney General's Financial Statement Form and all required attachments to these documents,
submitted to the ATTORNEY GENERAL.
34. The suspension of the judgment as to civil penalties and attorneys fees and costs
will be annulled or otherwise vacated as to the CONSENT DEFENDANT, upon motion by the
ATTORNEY GENERAL, if the Court finds that the CONSENT DEFENDANT failed to
comply with this Consent Judgment's Injunctive Terms and/or failed to disclose any material
asset, materially misstated the value of any asset, or made any other material misstatement or
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omission in the financial representations identified above.
35. If the suspension of the judgment as to civil penalties (which the Parties stipulate
only for purposes of this Section represents the amount of the civil penalty for the violations
alleged in the Complaint) and attorney's fees and costs is annulled or otherwise vacated, the
judgment amount in total becomes immediately due and payable in the amount specified in
Subsections 28 and 29 above, plus interest computed from the date of entry of this Order.
36. The CONSENT DEFENDANT agrees that the judgment as to civil penalties
represents a civil penalty owed to the State of Florida and is not compensation for actual
pecuniary loss, and, therefore, it is not subject to discharge under the Bankruptcy Code.
IV. RECORDS
37. From the date of the execution of this Consent Judgment by the CONSENT
DEFENDANT, all of the CONSENT DEFENDANT'S records which are not in the possession
of the FTC and/or FBI must be retained for a minimum of two (2) years. The CONSENT
DEFENDANT shall maintain and make available to the ATTORNEY GENERAL's
representative, upon any reasonable written request, all books, records and other documents,
except privileged documents, in the format in which they exist and which are not in the
possession of the FTC and/or FBI, which reflect the implementation of the terms of this Consent
Judgment and compliance with its terms. Any such records requested by the ATTORNEY
GENERAL shall be made available for inspection within ten (10) business days of the
CONSENT DEFENDANT's receipt of the request. The CONSENT DEFENDANT shall
honor any request from the ATTORNEY GENERAL to make such records available without
legal process.
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V. ACCEPTANCE AND NOTICE
38. The CONSENT DEFENDANT shall be responsible for making the substantive
terms and conditions of this Consent Judgment known to the officers, directors, partners,
management level employees, agents, representatives, as well as the affiliated parties engaged in
any of the CONSENT DEFENDANT's businesses, projects, and/or activities.
39. The CONSENT DEFENDANT, within seven (7) days of entry of this Order,
shall submit to the ATTORNEY GENERAL an acknowledgment of receipt of this Order sworn
under penalty of perjury.
VI. GENERAL AND ADMINISTRATIVE PROVISIONS
40. Jurisdiction is retained by the Court for the purpose of enabling any party to this
Consent Judgment to apply to the Court at any time for such further Orders and directions as
might be necessary or appropriate for the modification, construction and/or implementation of
the injunctive provisions of this Consent Judgment, or for the enforcement and punishment of
violations of any provisions hereof However, THE PARTIES may by stipulation agree to a
modification of the terms of this Consent Judgment, which agreement shall be presented to the
Court for consideration. Any stipulation by THE PARTIES regarding the modification of any
terms of this Consent Judgment must be by a written instrument signed by or on behalf of the
ATTORNEY GENERAL and the CONSENT DEFENDANT.
41. This document is signed in anticipation of this Judgment being submitted to the
Court for approval, without necessity of hearing, which is hereby WAIVED by all PARTIES.
42. THE PARTIES jointly participated in the negotiation of the tenns which are
articulated within this Consent Judgment, and no provision of this Consent Judgment shall be
construed for or against either party on the grounds that one party or another was more heavily
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involved in the preparation of the Consent Judgment or had control over the provisions included
herein.
43. The CONSENT DEFENDANT acknowledges that he has read and understands
the terms of the foregoing Consent Judgment
44. The CONSENT DEFENDANT states that no promises of any kind or nature
whatsoever, other than the written terms of this Consent Judgment, were made to induce the
CONSENT DEFENDANT into entering into this Consent Judgment.
45. The CONSENT DEFENDANT states that he has entered into this Consent
Judgment voluntarily and that this Consent Judgment constitutes the entire agreement between
him and the State of Florida in this matter.
46. Nothing in this Consent Judgment shall preclude the ATTORNEY GENERAL
from pursuing any other parties and/or unnamed defendants to this or any other lawsuit, nor does
it preclude the ATTORNEY GENERAL from collecting any monetary fees, restitution, costs or
any other such relief to which the ATTORNEY GENERAL is entitled.
47. Nothing in this Consent Judgment will be construed to limit the authority of the
ATTORNEY GENERAL to protect the interests of the State of Florida or the people of the
State of Florida. Accordingly, nothing herein relieves CONSENT DEFENDANT of his
continuing duty to comply with applicable laws of the State of Florida nor constitutes
authorization by the ATTORNEY GENERAL for CONSENT DEFENDANT to engage in
acts and practices prohibited by such laws. This Consent Judgment shall be governed by laws of
the State of Florida.
48. Notwithstanding any other provision of this Judgment, nothing herein shall be
construed to impair, compromise or affect any right of any government agency other than the
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Office of the Attorney General for the State of Florida.
VII. FUTURE VIOLATIONS
49. The CONSENT DEFENDANT acknowledges that a violation of this Consent
Judgment shall be prima facie evidence of a FDUTPA violation and will subject CONSENT
DEFENDANT to any and all equitable relief, civil penalties and sanctions authorized by law. In
the event that a court of competent jurisdiction makes a determination that a violation of this
Consent Judgment's injunctive provisions has occurred, then the CONSENT DEFENDANT
shall be liable for civil penalties, as well as any additional attorneys' fees and costs, and other
relief as may be allowed by law.
50. In the event of a material default or violation of any injunctive provision
contained in this Consent Judgment, the ATTORNEY GENERAL may enforce this Consent
Judgment by mechanism of contempt or any other mechanism permissible by law. Further, if
such conduct constituting a violation of the Consent Judgment also constitutes a violation of any
State or Federal law, rule and/or regulation, then the ATTORNEY GENERAL may exercise
any other remedies available by law in order to fully address said conduct. Nothing herein shall
be constrned as a limitation to the remedies that the ATTORNEY GENERAL may pursue upon
default by the CONSENT DEFENDANT.
VIII. EFFECTIVE DA TE
51. The effective date of this Consent Judgment is the date upon which the Consent
Judgment is fully executed by the Court and all required Parties.
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SIGNATURES FOLLOW ON SEPARATE PAGES
. ' f
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STATEOF ~l-C~~ COUNTY OF \U( i/\.{'lJ.i_c~(J"'--
Sworn to and subscribed before me this '2-2 day of~ 20 I 5.
~w~ ALEXAND_E_R~W-O-L~F~7R5\==--M~~~-
~ A)~L - --Print, type or stamp commissioned eame of Notary Public lv'AfY}<;_
Personally known __ or Produced Identification )( (check one) Type ofldentification Produced:jjRIZ.'DtJQ 0.VIN"Q 4eth'SC Subscribed to before me this .,23day of .fJfill J ,
2015.
Public No ry Signature, a 'zona 1
, or stamp commissioned Notary Public) JON MUTH
Notary Public • Arizona Maricopa County
My Comm. Expires Jan 20, 2019
COUNSEL TO DEFENDANT WOLFRAM
Walter J. Mathews, Esq., Fla. Bar No: 174319 Mathews Wall ace LLP 212 SE 8th Street, Suite 103 Fort Lauderdale, FL 3 3 3 16 Date: 2015.
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STATEOF ~l-C~~ COUNTY OF H IM'\~c~U-..
Sworn to and subscribed before me this '2--:;, day of ¥2015.
ALEXANDER WOLFRiM
~NfhLlb Print, type or stamp commissioned ea:rae of Notary Public N'AM<:,
Personally known __ or Produced Identification )( (check one) Type ofldentification Produced: ARIZ'.Dri? Oe.illt'Q 4 Cfh<£'.. Subscribed to before me this .23 day of /JR.I I , 2015.
Signature, zona (print, ty , or stamp commissioned Notary Public)
JON MUTH Notary Pubnc • Arizona
M1rlcopa county My Comm: Expires.Jan 20, 2019
Walter J. Mathews, Esq., Fla. Bar No: 174319 Mathews Wall ace LLP 212 SE 8th Street, Suite 103 Fort Lauderdale, FL 33316 Date: '- JI) , 2015.
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OFFICE OF THE ATTORNEY GENERAL FOR THE STATE OF FLORIDA:
By~J!JiR.~/(. -Kri steriPesi eek Florida Bar No. 109212 Assistant Attorney General Consumer Protection Division Office of the Attome~ General 110 SE 61
h Street, 1 at Floor Ft. Lauderdale, Florida 33301
Dated: .rn~~5/x , 2015
//./ / ~/ By: <e;~~~.~~~L---L--~· --Ri chary-Lawson Flori~{Bar No. 165085 Director, Consumer Protection Division Office of the Attorney General The Capitol Tallahassee, FL 32399-1050 (850) 245-0140
Dated: . Ill, r 2 rt '2015
ENTRY OF JUDGMENT
DONE and ORDERED in Ft. Lauderdale, Broward County, Florida this day of ~ '{l~\11;-'"U~~ --
~~~~~~~~-'2015.
cc: Walter J. Mathews, Esq. Fla. Bar No: 174319
Kristen Pesicek, Esq. Assistant Attorney General Florida Bar No. 109212
. • •·;\~I j'
Circuit Judge Thomas M. Lynch
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