United States District Court, W.D. North Carolina, Charlotte Division
STIPULATED FINAL ORDER FOR PERMANENT INJUNCTION AND
SETTLEMENT OF CLAIMS AS TO DEFENDANTS LOMBARDO, DANIELS &
MOSS, LLC AND CHARLES MONTGOMERY
J. CONRAD, JR. UNITED STATES DISTRICT JUDGE.
MATTER comes before the Court on the parties'
Consent Motion for Settlement Stipulation to Enter Final
Order for Permanent Injunction and Settlement of Claims as to
Defendants Lombardo, Daniels & Moss, LLC and Charles
Montgomery, (Doc. No. 48).
Federal Trade Commission (“FTC”), commenced this
civil action on August 21, 2017, by filing its Complaint
(Doc. No. 2) seeking a permanent injunction and other
equitable relief pursuant to Section 13(b) of the Federal
Trade Commission Act (“FTC Act”), 15 U.S.C.
§ 53(b), and Section 814 of the Fair Debt Collection
Practices Act (“FDCPA”), 15 U.S.C. §
1692l. On motion by the FTC, on August 24, 2017, the
Court entered an ex parte Temporary Restraining
Order with asset freeze, appointment of receiver, and other
equitable relief against Defendants (ECF No. 10). On
September 1, 2017, after a hearing on an order to show cause,
the Court entered a Preliminary Injunction against Defendant
Dion Barron (ECF No. 24). Now, the FTC and Defendants
Lombardo, Daniels & Moss, LLC and Charles R. Montgomery,
III, by and through their undersigned counsel, stipulate and
agree to the entry of this Final Order for Permanent
Injunction and Settlement of Claims (“Order”) to
resolve all matters in dispute in this action between them.
stipulation of the parties, the Court finds as follows:
1. This Court has jurisdiction over this matter.
2. The Complaint charges that the Stipulating Defendants
participated in deceptive, abusive, and unfair debt
collection practices in violation of Section 5 of the FTC
Act, 15 U.S.C. § 45, and the FDCPA, 15 U.S.C.
§§ 1692 - 1692p.
3. The Stipulating Defendants neither admit nor deny any of
the allegations in the Complaint, except as specifically
stated in this Order. Only for purposes of this action, the
Stipulating Defendants admit only the facts necessary to
4. The Stipulating Defendants waive any claim that they may
have under the Equal Access to Justice Act, 28 U.S.C. §
2412, concerning the prosecution of this action through the
date of this Order, and agrees to bear their own costs and
5. The Stipulating Defendants and the FTC waive all rights to
appeal or otherwise challenge or contest the validity of this
6. Entry of this Order is in the public interest.
purpose of this Order, the following definitions apply:
“Credit Repair Service” means
selling, providing, or performing any service (or
representing that such service can or will be sold, provided,
or performed) through the use of any instrumentality of
interstate commerce or the mails, in return for the payment
of money or other valuable consideration, for the express or
implied purpose of (1) improving any consumer's credit
record, credit history, or credit rating, (2) providing
advice or assistance to any consumer with regard to any
activity or service described in clause (1).
“Debt” means any obligation or
alleged obligation to pay money arising out of a transaction,
whether or not such obligation has been reduced to judgment.
“Debt Collection Activities”
means any activities of a debt collector to collect or
attempt to collect, directly or indirectly, a debt owed or
due, or asserted to be owed or due.
“Debt Collector” means any
person who uses any instrumentality of interstate commerce or
the mail in any business the principal purpose of which is
the collection of any debts, or who regularly collects or
attempts to collect, directly or indirectly, debts owed or
due or asserted to be owed or due another. The term also
includes any creditor who, in the process of collecting its
own debts, uses any name other than its own which would
indicate that a third person is collecting or attempting to
collect such debts. The term also includes any person to the
extent such person collects or attempts to collect any debt
that was in default at the time it was obtained by such
“Defendants” means Lombardo,
Daniels & Moss, LLC, Charles R. Montgomery, III, and Dion
Barron, individually, collectively, or in any combination.
“Financial-Related Product or
Service” means any product, service, plan, or
program represented, expressly or by implication, to provide
to any consumer, arrange for any consumer to receive, or
assist any consumer in receiving:
1. An extension of consumer credit;
2. Credit repair services; or
3. Any secured or unsecured debt relief product or service.
“Person” means a natural person,
organization, or other legal entity, including a corporation,
partnership, proprietorship, association, cooperative, or any
other group or combination acting as an entity.
“Secured or Unsecured Debt Relief Product or
Service” means, with respect to any mortgage,
loan, debt, or obligation between a person and one or more
secured or unsecured creditors or debt collectors, any
product, service, plan, or program represented, expressly or
by implication to:
1. Negotiate, settle, or in any way alter the terms of
payment or other terms of the mortgage, loan, debt, or
obligation, including but not limited to, a reduction in the
amount of interest, principal balance, monthly payments, or
fees owed by a person to a secured or unsecured creditor or
2. Stop, prevent, or postpone any mortgage or deed of
foreclosure sale for a person's dwelling, any other sale
of collateral, any repossession of a person's dwelling or
other collateral, or otherwise save a person's dwelling
or other collateral from foreclosure or repossession;
3. Obtain any forbearance or modification in the timing of
payments from any secured or unsecured creditor or debt
4. Negotiate, obtain, or arrange any extension of the period
of time within which the person by (a) cure his or her
default on the mortgage, loan, debt, or obligation, (b)
reinstate his or her mortgage, loan, debt, or obligation, (c)
redeem a dwelling or other collateral, or (d) exercise any
right to reinstate the mortgage, loan, debt, or obligation or
redeem a dwelling or other collateral;
5. Obtain any waiver of an acceleration clause or balloon
payment contained in any promissory note or contract secured
by any dwelling or other collateral; or
6. Negotiate, obtain, or arrange, (a) a short sale of a
dwelling or other collateral, (b) a deed-in-lieu of
foreclosure, or (c) any other disposition of a mortgage,
loan, debt, or obligation other than a sale to a third party
that is not the secured or unsecured loan holder.
foregoing shall include any manner of claimed assistance,
including, but not limited to, auditing or examining a
person's application for the mortgage, loan, debt, or
“Stipulating Defendants” means the
Individual Stipulating Defendant and the Corporate
Stipulating Defendant, individually, collectively, or in any
combination. “Corporate Stipulating
Defendant” means Lombardo, Daniels & Moss,
LLC, and its successors and assigns, including but not
limited Montgomery Financial Solutions, LLC.
Defendant” means Charles R. Montgomery, III,
and any other name by which he may be known.
ON DEBT COLLECTION ACTIVITIES
IT IS THEREFORE ORDERED that the Stipulating
Defendants, whether acting directly or through any other