Complaint Counsel's Post Trial Brief - Federal Trade Commission

Act. See FTC v. Amy Travel Serv., Inc., 875 F.2d 564,574 (7th Cir. 1989); Orkin Exterminating
Co. v. FTC, 849 F .2d 1354, 1368 (11 th Cir. 1988) ("intent has no bearng on the question whether
a section 5 violation has occured"); Sabal, 32 F. Supp. 2d at 1007.
V. COMPLAINT COUNSEL is ENTITLED TO THE PROPOSED ORDER AGAINST
RESPONDENTS
A. James Feijo is Individually Liable and Thus An Order is Appropriate Against
Him
An individual may be held liable under the FTC Act for the violations of
his corporation
when the individual either paricipated directly in or had the authority to control the deceptive acts
or practices. FTC v. Amy Travel Serv., Inc., 875 F.2d 564,573 (7th Cir. 1989). Authority to
control can be established by an individual's "active involvement in business affairs and the
makg of corporate policy, including assuming the duties of a corporate offcer." Id. "An
individual's status as a corporate offcer gives rise to a presumption of ability to control a small,
closely-held corporation. 'A heavy burden of exculpation rests on the chief executive and
shareholder of a closely-held corporation whose stock-in-trade is overeachig and deception.'"
Windward Marketing, 1997 U.S. Dist. LEXIS 17114, at *38 (quoting Standard Educ., Inc. v. FTC,
475 F.2d 401, 403 (D.C. Cir. 1973)).
Respondent James Feijo both paricipated directly in and had the authority to control the
deceptive representations at issue in this case. CCPF ~~ 4, 180. Respondents adit that
Respondent Feijo is responsible for the activities of
Respondent DCO as its Overseer. CCPF ~ 4,
95. The activities for which he is responsible include the development, creation, and production of
the DCO Products; the creation, management, and maintenance ofDCO's toll-free telephone
number by which consumers may order the DCO Products; the setting of prices for the DCO
Products; and the creation, drafting, and approval of the directions for usage and the recommended
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