Electronically Filed - St Louis County - February 05, 2015...
Transcript of Electronically Filed - St Louis County - February 05, 2015...
IN THE TWENTY-FIRST CIRCUIT COURTST. LOUIS COUNTY
STATE OF MISSOURI
STATE OF MISSOURI, ex rel. CHRISK~STER
v.
MARTIN A. WEBB, aka BUTCHWEBB, PAYDAY FINANCIAL, L.L.C.cUb/a LAKOTA CASH dlb/a BIG SKYCASH, 24-7 CASH DIRECT, L.L.C.,GREAT SKY FINANCE, L.L.C.,FINANCIAL SOLUTIONS, L.L.C.,d/b/a LAKOTA CASH, HIGHCOUNTRY VENTURES, L.L.C.,MANAGEMENT SYSTEMS, L.L.C.,d/b/a GSKY, RED RIVER VENTURES,L.L.C., RED STONE FINANCIAL,L.L.C., WESTERN CAPITAL, L.L.C.,and WESTERN SKY FINANCIAL,L.L.C.
CASE NO. I 1 SL-CC01680-1DIVISION 13
CONSENT JUDGMENT ANDPERMANENT INJUNCTIONREGARDING LOANS ORIGINATEDBY NAMED DEFENDANTS
CONSENT JUDGMENT AND PERMANENT INJUNCTION REGARDINGLOANS ORIGINATED BY NAMED DEFENDANTS
COMES NOW, The ATTORNEY GENERAL OF THE STATE OF MISSOiJRI,
(hereinafter "the ATTORNEY GENERAL") and MARTIN A. WEBB, a/k/a BUTCH
WEBB, PAYDAY FINANCIAL, L.L.C. d/b/a LAKOTA CASH d/b/a BIG SKY CASH,
24-7 CASH DIRECT, L.L.C., GREAT SKY FINANCE, L.L.C., FINANCIAL
SOLUTIONS, L.L.C., d/b/a LAKOTA CASH, HIGH COiJNTRY VENTiJRES, L.L.C.,
MANAGEMENT SYSTEMS, L.L.C., d/b/a GSKY, RED RIVER VENTURES, L.L.C.,
RED STONE FINANCIAL, L.L.C., WESTERN CAPITAL, L.L.C., and WESTERN
SKY FINANCIAL, L.L.C., (collectively referred to hereafter as "NAMED
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DEFENDANTS"), to submit this Consent Judgment and Permanent Injunction (the
"Consent Judgment"). The Parties agree and stipulate as follows:
1. Named Defendants are Limited Liability Companies organized under the
laws of South Dakota and located on the Cheyenne River Indian Reservation, and
MARTIN A. WEBB, a member or the sole member of those Limited Liability
Companies.
2. One or more Named Defendants solicited, made or serviced loans to
Missouri residents.
3. Named Defendants are not licensed to conduct the business of lending in
the State of Missouri, though Named Defendants contend that no such license is
required.
4. The Parties desire to compromise and settle the instant controversy upon
the following terms and conditions:
JURISDICTION AND VENUE
5. The Attorney General contends that this Court is the proper Court of venue
and jurisdiction under Article V, § 14 Mo. Const. and under the Merchandising
Practices Act, Chapter 407 RSMo' and has jurisdiction over the parties and the subject
matter of this action. This Consent Judgment is not, however, a waiver of any
~ All references are to Missouri Revised Statutes 2012, unless otherwise
noted. Where a citation gives a supplement year—e.g. "(Supp.2013)"—the
citation is to the version of the statute that appears in the corresponding
supplementary version of the Missouri Revised Statutes, and, where
relevant, to identical versions published in previous supplements.
Fa
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jurisdictional defense Named Defendants have asserted or may assert in the future,
including that the lending activity conducted by Named Defendants occurred on the
Cheyenne River Indian Reservation and is subject solely to the exclusive laws and
jurisdiction of the Cheyenne River Sioux Tribe. Named Defendants consent to the
jurisdiction of this Court solely for the purposes of entering into and enforcing this
Consent Judgment, and for no other purposes.
STIPULATION AND ORDERS
6. This Consent Judgment shall apply to all Named Defendants, their
officers, agents, employees, sales persons, contractors, representatives, assigns,
successors in interest and any other individuals acting on their behalf or at their
direction. All of the foregoing sha11 be encompassed herein by the use of the term
"Defendants."
7. For the purposes of this Consent Judgment, the "Effective Date" shall
mean the date on which this Consent Judgment is so-ordered by the Court.
8. IT YS HEREBY ORDERED, ADJUDGED AND DECREED that
Martin A. Webb, a/k/a Butch Webb, Payday Financial, L.L.C. d1b/a Lakota Cash d/b/a
Big Sky Cash, 24-7 Cash Direct, L.L.C., Great Sky Finance, L.L.C., Financial Solutions,
L.L.C., d/b/a Lakota Cash, High Country Ventures, L.L.C., Management Systems,
L.L.C., d/b/a GSKY, Red River Ventures, L.L.C., Red Stone Financial, L.L.C., Western
Capital, L.L.C., and Western Sky Financial, L.L.C. shall permanently cease and desist
from making, servicing, or collecting any loans to made to Missouri residents in the
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State of Missouri, over the Internet or otherwise.
9. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by
this Court that Judgment is entered for the State of Missouri against Martin
A. Webb, a/k/a Butch Webb; Payday Financial, L.L.C., d/b/a Lakota Cash d/b/a Big Sky
Cash, 24-7 Cash Direct, L.L.C.; Great Sky Finance, L.L.C.; Financial Solutions, L.L.C.,
d/b/a Lakota Cash; High Country Ventures, L.L.C.; Management Systems, L.L.C., d/b/a
GSKY; Red River Ventures, L.L.C.; Red Stone Financial, L.L.C.; Western Capital,
L.L.C.; and Western Sky Financial, L.L.C., and that they are jointly and
severally liable £or and shall collectively pay or cause payment to be made in
the amount of Two Hundred Seventy Thousand Dollars ($270,000.00) to the State of
Missouri, payable to the Merchandising Practices Restitution Fund, as restitution for
Missouri consumers who obtained loans from the Named Defendants and complained to
the Attorney General's Office prior to the effective date of this Judgment or were
charged fees in excess of what is allowed by Missouri Statutes and Regulations. The
Named Defendants will continue to cooperate with the Attorney General's Office to
supply any information requested to aid in the administration of restitution.
10. IT IS FITRTHER ORDERED, ADJUDGED AND DECREED by
this Court that Judgment is entered for the State of Missouri against Martin
A. Webb, a/k/a Butch Webb; Payday Financial, L.L.C., d/b/a Lakota Cash d/b/a Big Sky
Cash, 24-7 Cash Direct, L.L.C.; Great Sky Finance, L.L.C.; Financial Solutions, L.L.C.,
d/b/a Lakota Cash; High Country Ventures, L.L.C.; Management Systems, L.L.C., d/b/a
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GSKY; Red River Ventures, L.L.C.; Red Stone Financial, L.L.C.; Western Capital,
L.L.C.; and Western Slcy Financial, L.L.C., and that they are jointly and
severally liable for and shall collectively pay or cause payment to be made in
the amount of Thirty Thousand Dollars ($30,000.00) to the State of
Missouri, payable to the Merchandising Practices Revolving Fund, pursuant
to §§ 407.130 and 407.140.3 RSMo., to compensate the Attorney General's
Off"ice's costs of investigation and prosecution of this action and to provide
funds for consumer education and advocacy programs.
11. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by this
Court that the Named Defendants shall make the payments contained in Paragraphs 9 and
10 by cashier's check, money order, or similar instrument, and sent to the following
address:
Office of the Missouri Attorney GeneralFinancial Services DivisionAttn: Collections SpecialistP.O. Box 899Jefferson City, MO 65102
12. Named Defendants shall pay the entire amount of $300,000 within thirty
(30) days of the Effective Date.
13. No grace period for the Payment is permitted. If the Payment is not
actually received by the Attorney General on or before its due date, it shall be construed
as an event of default by the Named Defendants.
14. The Attorney General hereby releases Defendants from all civil and
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equitable claims arising from or in any way related to the loans, lending and collections
at issue in this litigation, except to the extent necessary to enforce the terms of this
Consent Judgment.
15. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by this
Court that the remaining balances on all loans made to borrowers with Missouri_
addresses at the time of funding still currently owned by Martin A. Webb, a/k/a Butch
Webb; Payday Financial, L.L.C., d/b/a Lakota Cash d/b/a Big Sky Cash, 24-7 Cash
Direct, L.L.C.; Great Sky Finance, L.L.C.; Financial Solutions, L.L.C., d/b/a Lakota
Cash; High Country Ventures, L.L.C.; Management Systems, L.L.C., d/b/a GSKY; Red
River Ventures, L.L.C.; Red Stone Financial, L.L.C.; Western Capital, L.L.C.; and
Western Sky Financial, L.L.C. are, as of the date of the execution of this judgment,
declared to be void and reduced to a zero balance.
16. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by this
Court that the remaining balances on all loans identified in Exhibit A attached hereto
(the "Covered Loans") are, as of the Effective Date, void, canceled and reduced to a
zero balance. Defendants shall (i) cease all efforts to collect on the Covered Loans; (ii)
will, within ninety days of the date of execution of this judgment, notify the credit
reporting agencies that all info~tnation reported by Defendants relating to these accounts
should be removed; (iii) will not make any future reports to credit reporting agencies;
(iv) within ninety days of the date of execution of this judgment, cause to be mailed
and/or emailed, notice to each of the consumers listed in Exhibit A that nothing further
is owed on the Covered Loan; and (v) shall not assign or sell any Covered Loan to any
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unaffiliated third party.
17. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by this
Court that, for all loans identified in Exhibit B, Defendants will notify the credit
reporting agencies that all information reported by Defendants relating to these accounts
should be removed.
18. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by this
Court that Martin A. Webb, a/k/a Butch Webb; Payday Financial, L.L.C., d/b/a Lakota
Cash d/b/a Big Sky Cash, 24-7 Cash Direct, L.L.C.; Great Sky Finance, L.L.C.;
Financial Solutions, L.L.C., d/b/a Lakota Cash; High Country Ventures, L.L.C.;
Management Systems, L.L.C., dlb/a GSKY; Red River Ventures, L.L.C.; Red Stone
Financial, L.L.C.; Western Capital, L.L.C.; and Western Sky Financial, L.L.C. shall not
make any effort to collect on any loan to a Missouri resident, including but not limited
to garnishments without Missouri court order and tribal court involvement, including
lawsuits, arbitrations, or garnishments.
19. Nothing in this Consent Judgment shall be construed as an admission by
the Named Defendants of any violation of law, liability, wrongdoing or legal or factual
issue, and this Consent Order may not be used as evidence of liability or for any other
purpose in any action against Named Defendants. Further, this Consent Judgment is not
a waiver of any jurisdictional defense that Named Defendants have asserted or may
assert, including that all lending activity conducted by Named Defendants occurred on
the Cheyenne River Indian Reservation and is subject solely to the exclusive laws and
jurisdiction of the Cheyenne River Sioux Tribe.
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20. Named Defendants and the Attorney General agree that by entering into
this Consent Judgment, the Attorney General does not concede any defense or
mitigation Named Defendants may assert.
21. Named Defendants agree that in the event of a breach of any material term
of this Consent Judgment, the Attorney General may, at his option, move the Court to
rescind the Consent Judgment and permit the Attorney General to seek any remedies
available to it at law or equity. In any subsequent proceeding, Named Defendants may
assert any jurisdictional or other defenses they would have raised or that they otherwise
may have, but Named Defendants may not make any claim for laches or statute of
limitations concerning the complaint based on the lapse of any period of time between
the Effective Date and the date on which the Court grants the Attorney General's motion
for rescission.
22. Further, Named Defendants agree that in the event of any alleged material
breach of any term of this Consent Judgment, the Attorney General may prosecute
Named Defendants for alleged violations of a valid order of the Court. Named
Defendants consent to Missouri jurisdiction for the purposes of entering into and
enforcing this Consent Judgment only and for no other purposes.
23. Named Defendants agree and understand that by entering into this Consent
Judgment, Named Defendants are waiving their right to a hearing at which Named
Defendants may present evidence in their defense, their right to a written decision on the
merits of the complaint, their rights to reconsideration and/or rehearing, appeal and/or
judicial review, and all other rights which may be accorded by the laws of the State of
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Missouri or of the United States. In the event the Consent Judgment is rescinded,
however, and the Attorney General proceeds to seek remedies against Named
Defendants, then Named Defendants shall be entitled fully to the aforementioned rights
and any others guaranteed under the law.
24. If any provision or provisions of this Consent Judgment is or are declared
invalid by a court of competent jurisdiction, the rest of this Consent Judgment shall
remain in full force and effect and shall not be affected by such declaration.
25. No changes shall be made to this Consent Judgment unless made in
writing and signed by all parties hereto.
26. This Consent Judgment embodies the entire agreement and understanding
of the parties hereto with respect to the subject matter contained herein.
27. Defendants shall not represent to any person, natural or otherwise, that the
Attorney General sanctions, endorses or approves of any methods, acts, uses, practices
or solicitations undertaken by or on behalf of Defendants.
28. The parties agree that Plaintiff will file this Consent Judgment with the
Court and will seek approval from the Court for this Consent Judgment. Named
Defendants agree that the Attorney General may obtain approval from the Court for this
Consent Judgment without providing notice to the Named Defendants and without
Named Defendants being present in court when approval is obtained.
29. The parties agree that execution of this Consent Judgment constitutes
actual notice of the terms and provisions of the Consent Judgment, and thus Named
Defendants waive any further notice of submission of this Consent Order to and filing
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fih~reaf ~vv th the court and agree to accept service cif a conforin~a copy by first class`
xnaii; and elect~anic mail to counSei Named I~efendanls...
3~: I*Tamecl Dc>feneian s fully ~uridersta~~d fhat tbey :lame the right t~ b
.:represented by legal counsel in tills rna~.er at their o~ exrpense.
31. Each sigtaatory represezxts that they have the authority to ~inrl:the prixxcipal
they represent.
32. This Consent Judgment is governed by ~he.laws o~tlie State ofM ssouri:
~~. Narned Defeziiarits have sgred and dated t;liis C~ns~ent Juclgmeiit only
after reading. and understanding all terins herein.
Dated tY~is ~ ~ y ary,~ day of January, 2015. llated this, ~~ da o:t'3anu ~Q 1
CHRIS KQSTLR WESTERN SKY FINANCIAL, L.I .C.,
Attcrneey General, State.of".Missouri
JENNER &BLOCK, LISP
Attorneys far Named DefeadautsV'.tP".O
~. .~ r
6f ~"". ~Y 4,r ~~~~~~~... 'a..•ri~ _,~•;s . y ~ -.. .. ~. cap
Katya Jestin919Th ref AvenueNevv f ork, T TY 10022x3908
Marl; n A:,VJebb, lVleinber
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Dated this .~~~' - .,day c~~f Jan~r~ry ; 205,
i'AY~,AY ~'IP41Al~dC~A~,; Y.~:L.C. dlbla
LAK(?TA ~~S.SH ~~~~~~~~BI+G SAY CASK,
M n A. Webb, ~Vlerriber
Dated. this ' ~~ da of Janua :, 20:15.~ Y ~3'
24-7 CASH DI:REC'~', L.L.C. :,
t~~r...l'vlart' .A. We b, Mein~er
Dated this day of 3anuary, 20l 5.
GREAT SKY FINANCE, L.L.C;.,
L .----'.
~~~--'
MaarE ~~~~Web Member
Date this.. ~" da cif Janua i~ ~ Y TY> 20 5.
FINr~NCTAL SOLUTI~I~S, L.L.C,,
dlb/a LAK4TA +CAS$;
~--''"`Mari` A. Webb Member
Rated this. } ~~~~ ""day of Jat~ua.ry, 2015.
HIG.EI CQTJNT~Y' VENTI7.RES; X.,L.C,
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f i
Iaated. th s~ da t~f Manua , Z~15.Y ~'3'
MAI~AG:EIVIENT SY~T.F.MS, L.LC,d/b/a GSKY,
/~,~~~ -.
Marti . A. Webb, Member
Dated this ~ day of January, ~tl I.5.
.RED RIVER VENTURES, L.L.C.,
1..: ~, ~~--~Mart ri:.A. jlVebb, lVtember
17ated this clay of January, , 201 ~,
l2ED STONE FINANCIAL, .t, L.G.,~~;
Mart' A: Webb, tuber
Dated this ay of January, 201:5.
WESTERN CAl'IT~;L, L.L.C.,
Mart A. Webb, Member
1~
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SO ORDERED:
3ucigtnent.enterecl this clay of , 2O1S:
Circuit J~idge
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5th February
Exhibit A:
Harvel Calhoun, Loan # ****1124
Charles Isaac, Loan # ***0068
Rebecca Lozano Loan # ****3799
Cathie Marshall, Loan # ****6398
Michael Munster, Loan # ***9991
Jacqueline Pennington, Loan # ***8525
Michael Phelan, Loan # ****1859
Shammara Srnith, Loan # **2789
Kebecca Wilson, Loan # ****6893
Cynthia Clark, Loan # ***3641
Ann Chapman, Loan # ****9799
Chad Hildebrand, Loan # ****5394
Heather Ames, Loan # ***8911
Pamela Brown, Loan # ***3Q02
Robert Bush, Loan #***6580
Christina Camacho-Gossage Loan #****2767
Crystal Frey, Loan # ****6002
Dorothy Hall -Sleet, Loan # ***9349
Darrell Happen- Loan # ****4982)
Sara Johnson, Loan #***1925
Therese E. Senger, Loan # ****1381
Stephanie Lynn Thornton, Loan # ***231 1
Jeffrey Whaley, Loan # ***9017
Terree Wolfert Loan # ***9973
Mary Knollhoff, Loan # ***4569
Exhibit B:
Marva Deberry, St. Louis, MO, Loan ID ***7549
Jennis Pyatt, Imperial, M0, Loan 1D
Jacqueline Thobbs, St. Louis, MO, Loan ID ***5614
Michael Wilson, St. Charles, MO, Loan ID ****0412
Pamela White Loan # ***3427
Christy Mitchell-Grider, Loan # ***1402
Douglas McDonald (Great Sky)
Margo Smith
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