The FTC has secured a preliminary injunction in its Blueprint to Wealth fraud case.

The granted injunction applies to defendants Robert William Shafer (aka Bob Shafer), Charles Joseph Garis Jr., Business Revolution Group and Samuel J. Smith.

It should be noted that all Blueprint to Wealth defendants except Smith had consented to a stipulated preliminary injunction on January 30th.

In ordering an injunction against Smith on January 31st;

There is good cause to believe that Defendant Smith has engaged in and is likely to engage in acts or practices that violate Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), and Sections 310.3(a)(4) and 310.3(a)(2)(vi) of the Telemarketing Sales Rule (“TSR”), 16 C.F.R. Part 310, an FTC Trade Regulation, and that the FTC is therefore likely to prevail on the merits of Counts I through IV of its Complaint against him.

This determination was made based on “a declaration of an FTC investigator, transcripts of phone calls, voicemails, and marketing videos and other documentation filed by the FTC”.

There is good cause to believe that Mr. Smith’s legal defenses will fail as not supported by law or in fact.

There is good cause to believe that Defendant Smith received at least $1.9 million in connection with the unlawful acts or practices identified.

There is good cause to believe that immediate and irreparable harm will result from Defendant Smith’s ongoing violations of the FTC Act and the TSR unless Defendant Smith is restrained and enjoined by order of this Court.

Under the granted preliminary injunction, assets of the Blueprint to Wealth defendants have been frozen.

Any assets held overseas must be repatriated. Financial disclosures are also required to be submitted to the FTC.

The defendants are further prohibited from further FTC Act and Telemarketing and Consumer Fraud and Abuse Prevention Act (Telemarketing Act) violations, including :

  • misrepresenting to consumers that if they purchase an advertised business or money-making opportunity, they will “earn or are likely to earn a substantial income”;
  • misrepresenting or failing to disclose details pertaining to total costs involved and specifics of said business or money-making opportunity; and
  • making outbound telephone calls to distribute “false and misleading statement(s)” pertaining to misrepresented “investment opportunities”.

Included within the scope of the up prohibitions is assisting others with committing violations of the FTC Act and Telemarketing Act.

Since having a preliminary injunction granted against him, Samuel Smith has entered into settlement negotiations with the FTC.

While Smith’s settlement details have yet to be finalized, on February 20th a joint motion was filed requesting permission to sell Smith’s motorcycle.

The FTC and Mr. Smith have agreed as follows with regard to the sale of the Motorcycle:

Mr. Smith shall sell the Motorcycle for fair market value for the purpose of raising cash to be paid to the FTC in connection with the anticipated settlement of the FTC’s claims against him in this action.

The court granted the joint motion on February 21st.