Chapman v. JFD Financial LLC et al

Filing 9

ORDER granting 8 Motion for Default Judgment. Signed by Judge George C. Smith on 5/20/15. (lvw)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF OHIO
EASTERN DIVISION

JOSEPH CHAPMAN
Plaintiff,
v.
JFD FINANCIAL LLC, et al.,
Defendants.

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CASE NO: 2:15-cv-83
Judge George C Smith
Magistrate Judge Norah McCann King

ORDER
Plaintiff’s Motion for Default Judgment having been duly considered and with good
grounds having been shown and demonstrated in relation thereto, the Court having been fully
advised in the matter finds as follows:
1. On April 17, 2015, the Clerk made an Entry of Default against the Defendants herein, namely
JFD FINANCIAL LLC, MICHAEL DEGEN, and JANIS DEGEN.
2. The Defendants have each failed to file a proper motion, answer, or other defense of this
matter in the time required under the Federal Rules of Civil Procedure and are, therefore, in
default as provided in FRCP 55.
3. The Court deems the failure of each Defendant to answer and defend this matter to be a
confession of truth with respect to the allegations in the Complaint.
4. Plaintiff is entitled to recover the relief prayed for in the Complaint, including injunctive
relief and damages, with interest, costs, and attorney fees.
5. As set forth in the Complaint, Plaintiff seeks actual and statutory damages, injunctive relief,
attorney fees, and costs for violations of the FDCPA, the CSPA, and state racketeering
claims.

6. The Court finds that Defendants are liable to the Plaintiff in the amount of $1,000 in statutory
damages, pursuant to the FDCPA, 15 U.S.C. §1692k(a)(2).
7. The Court finds that Defendants are liable to the Plaintiff in the amount of $200 in statutory
damages pursuant to the CSPA, O.R.C. §1345.09(B).
8. Pursuant to 15 U.S.C. §1692k(a)(1), O.R.C. §1345.09(B), and O.R.C. §2923.34(A),
Defendants are liable for noneconomic damages of $5,000 to the Plaintiff.
9. The Court further finds by clear and convincing evidence that in calling Mr. Chapman and
his relatives with threats to extort monies, Defendants’ conduct was willful and malicious,
and conducted with utter disregard for the rights of consumers in Ohio in general, and Mr.
Chapman in particular, resulting in the damages awarded herein. Accordingly, this Court
awards treble and punitive damages from the Defendants to Mr. Chapman in the amount of
$15,000.
10. Plaintiff is entitled to recover interest, costs, and attorney fees pursuant to 15 U.S.C.
§1692k(a)(3), O.R.C. §1345.09(F), and O.R.C. §2923.34(F)&(G).

As such, Plaintiff is

awarded $5,500 in Attorney fees and $400 in costs, for a total amount of $5,900.00, which
amount is found to be fair and reasonable.
11. Finally, the CSPA, O.R.C. §1345.09(D), provides that a consumer may seek injunctive relief.
Ohio’s state racketeering law, O.R.C. §2923.34(B)(2), further provides that a court “may
grant relief by entering any appropriate orders to ensure that the violation will not continue or
be repeated,” including, reasonable restriction upon the future activities of the Defendants.
To grant such relief, no showing of special or irreparable injury is necessary. O.R.C.
§2923.34(D). Accordingly, this Court hereby issues the following injunctive order:

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a. Defendants JFD FINANCIAL LLC, MICHAEL DEGEN, and JANIS
DEGEN, together with any business owned, operated, or controlled by them, or
employing them in any capacity, is hereby enjoined and barred from engaging in
any telemarketing or debt collection business in the State of Ohio or calling
consumers in the State of Ohio for any telemarketing or debt collection purpose,
until such time asi. The Defendants satisfy the monetary judgment rendered herein by
payment to Mr. Chapman; and
ii. The Defendants satisfy this Court that they will cease engaging in the
following activities or employing anyone or any entity which engages in
any of the following activities:
1. Calling any consumer to collect any debt without clearly
identifying their true identity and clearly identifying themselves as
a debt collector.
2. Calling any consumer demanding the payment of any sum
unsupported by a good faith belief in the accuracy of the amount
sought based on law or contract.
3. Failing to cease calls to any consumer after either an oral or written
demand that the calls cease.
4. Calling any consumer with any type of threat.
5. Calling any consumer and indicating that any type of legal action
may be taken against the consumer, unless they may lawfully
intend to and they imminently intend to take such action.

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6. Calling any third party on a consumer debt for any purpose other
than a single time and only to merely requesting contact
information for a consumer.
7. Violating the FDCPA or the CSPA in any other way.
b. The restriction of this order regarding telemarketing and debt collection activities
in the State of Ohio shall specifically apply to each of the Defendants, and
without limitation to the following companies owned and/or controlled by them:
Rite Choice Financial LLC, Global Mediations, My Holdings LLC, McCullen
Davidson & Association, and McCauley Davidson.
WHEREFORE, THIS COURT ORDERS, ADJUDGES, AND DECREES that the
Plaintiff recovers from Defendants, JFD FINANCIAL LLC, MICHAEL DEGEN, and JANIS
DEGEN, jointly and severally, the sum of $27,100, plus statutory interest from the date of this
judgment and ENJOINS the Defendant as set forth herein.
IT IS SO ORDERED.
DATE:

May 20, 2015

/s/ George C. Smith_________________
GEORGE C. SMITH, JUDGE
UNITED STATES DISTRICT COURT

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