ORDERS:
AMENDED ORDER OF DEFAULT AS TO SSN, INC., SKS, INC. and TIMOTHY R. SEBOLD
The Original Order of Default in this matter was issued on December 15, 2006. Thereafter the Petitioner filed a Motion to Alter or Amend Final Order on December 19, 2006, with service on the Parties. No response was received. Based on good cause shown, this motion is granted and this order is substituted for that previously issued, in its entirety.
This matter is before me based on a Petition for Injunctive Relief filed by the Petitioner. On September 14, 2006, the Petitioner filed a Motion for Default or Judgment on the Pleadings alleging that SSN, Inc., SKS, Inc. and Timothy R. Sebold had failed to answer or appear in this matter. No response to this motion was received. On December 13, 2006, the Petitioner renewed this motion, with an accompanying affidavit and attachments which verify that the Respondents SSN, Inc., SKS, Inc. and Timothy R. Sebold had actual knowledge of the action pending at the SC Department of Consumer Affairs, yet failed to act. In addition, the address used by the Department to correspond with the corporate respondents is that listed with the SC Secretary of State’s office for service on the corporations.
“The administrative law judge may dismiss a contested case...adverse to the defaulting party. A default occurs when a party fails to plead or otherwise prosecute or defend,...or fails to comply with an interlocutory order of the administrative law judge.” ALC Rule 23.
The Petitioner sought certain relief in its initial Petition requesting that the Respondents SSN, Inc, SKS, Inc. and Timothy R. Sebold cease and desist from offering physical fitness services, cease and desist from collecting money on installment contracts by clients, be assessed a fine, and forfeit bonds issued by various insurance companies on behalf of these Respondents to Petitioner for the benefit of the affected consumers.
Based on the representations of Petitioner,
“Therefore, IT IS HEREBY ORDERED that:
(1) Respondents SSN, Inc., SKS, Inc., and Timothy R. Sebold, its agents or assigns, SHALL CEASE AND DESIST from offering physical fitness services in South Carolina as defined in §44-79-20 of the Physical Fitness Services Act;
(2) Respondents SSN, Inc., SKS, Inc., and Timothy R. Sebold, its agents or assigns, SHALL BE ENJOINED from offering physical fitness services in South Carolina as defined in §44-79-20 of the Physical Fitness Services Act;
(3) Respondents Sebold’s and SSN, Inc.’s special deposit bond # 5436197 issued by Great American Insurance Company in the amount of $25,000.00, and made payable to the Administrator for those affected members of the public who have causes of action against Respondents for violation of S.C. Code Ann. §§44-79-10 et seq. BE ASSESSED by the Department;
(4) Petitioner is to hold such monies from special deposit bond # 5436197 issued by Great American Insurance Company for the statutory period until Petitioner can determine all consumers who may have been affected during the term of bond # 5436197 and issue refunds accordingly; (5) Respondents Sebold’s and SKS, Inc.’s special deposit bond # 5436198 issued by Great American Insurance Company in the amount of $25,000.00, and made payable to the Administrator for those affected members of the public who have causes of action against Respondents for violation of S.C. Code Ann. §§44-79-10 et seq. BE ASSESSED by the Department;
(6) Petitioner is to hold such monies from special deposit bond # 5436198 issued by Great American Insurance Company for the statutory period until Petitioner can determine all consumers who may have been affected during the term of bond # 5436198 and issue refunds accordingly;
(7) Respondents SSN, Inc., SKS, Inc., and Timothy R. Sebold, SHALL BE ASSESSED an administrative fine of $3,000.00, jointly and severally, for violations of the South Carolina Physical Fitness Act.
(8) Respondents SSN, Inc., SKS, Inc., and Timothy R. Sebold, their agents or assigns are to CEASE engaging in false, fraudulent, or deceptive conduct by selling or continuing to sell pre-paid and monthly installment memberships; and
(9) Respondents SSN, Inc., SKS, Inc., and Timothy R Sebold, their agents or assigns are to CEASE collecting on monthly installment contracts after notice that contract holders at the closed location wished to cancel such contracts;
AND IT IS SO ORDERED.
______________________________
CAROLYN C. MATTHEWS
Administrative Law Judge
January 3, 2007
Columbia, South Carolina |
