Jay Noland has dodged contempt sanctions for violating his NetForce Seminars fraud injunction.
The FTC sued Noland and NetForce Seminars again in 2000.
NetForce Seminars was discovered to be a pyramid scheme and an injunction prohibiting Noland from partaking in any pyramid gross sales scheme” was issued.
The FTC sued Noland and Success By Well being for being a pyramid scheme in January 2020.
With that lawsuit got here a movement within the NetForce Seminars case, requesting contempt sanctions in opposition to Noland for violating his Netforce injunction.
The FTC’s contempt sanctions movement provides Success By Well being co-defendants Scott Harris and Thomas Sacca to the NetForce case.
That is on the premise that Noland (proper), alongside along with his “brokers, servants, workers, and people individuals in lively live performance or participation” with him had been topic to the injunction.
In his protection, Noland argued
he didn’t violate the Netforce Seminars injunction and might’t, in any occasion, be held in contempt for any violation in gentle of the injunction’s ambiguity and his good-faith reliance on the recommendation of counsel.
Unsure on the paradox half (the injunction language is clear-cut), however in any other case Noland’s throwing his lawyer(s) beneath the bus.
Harris and Sacca argued
the FTC’s movement is procedurally improper as a result of it successfully quantities to an try so as to add new events in a closed case.
The courtroom disagreed with this assertion.
What it did agree with although was Noland’s assertion that
any contempt continuing ought to “happen after the anticipated trial on the FTC’s request for a Everlasting Injunction.
That’s, if Noland is to be topic to contempt sanctions, it ought to solely be after the decision of the Success By Well being case.
To acquire contempt sanctions, the FTC should not solely succeed on its allegations within the Success By Well being motion however show these allegations by clear-and-convincing proof.
Noland, Harris, and Sacca have indicated in current filings that they proceed to dispute these allegations, imagine the Courtroom reached the improper conclusion in its order granting a preliminary injunction, and imagine they may finally prevail on the permanent-injunction stage.
This ups the ante of the end result of the Success By Well being case. If Noland loses the Success By Well being case, he’ll be going through each a penalty there and Netforce sanctions.
Not likely positive what potential sanctions are. As I perceive it violations of the FTC Act are civil issues (that means no jail time).
Within the courtroom’s February preliminary injunction order, the FTC was discovered to have a “chance of success” within the case.
Keep tuned as we proceed to trace developments in each circumstances.
Replace eleventh Might 2021 – Following a Might 4th request, the courtroom has granted the FTC till June twenty third to file ‘its Movement for Entry of Civil Contempt Judgment with Compensatory Civil Contempt Sanctions’.
I’ve scheduled our subsequent NetForce case docket test for June twenty fourth.
Replace twenty fourth June 2021 – The FTC has filed its Movement for Entry of Civil Contempt Judgment with Compensatory Civil Contempt Sanctions.