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UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION __________________________________________ ) ) ) Plaintiff, ) ) v. ) ) DEBT RELIEF USA, INC., ) a corporation, ) ) KELLY REILLY, Individually and as an ) officer of the corporation, ) ) ALVIN BELL, Individually and as an ) officer of the corporation, ) ) JAMES WOJCIK, Individually and as an ) officer of the corporation, and ) ) VALERIE LEATH, Individually and as a ) manager of the corporation, ) ) Defendants. ) __________________________________________) FEDERAL TRADE COMMISSION,

Case No. 3:11-CV-2059

COMPLAINT FOR PERMANENT INJUNCTION AND OTHER EQUITABLE RELIEF Plaintiff, the Federal Trade Commission (FTC), for its Complaint alleges: 1. The FTC brings this action under Section 13(b) of the Federal Trade Commission Act

(FTC Act), 15 U.S.C. 53(b), to obtain preliminary and permanent injunctive relief, rescission or reformation of contracts, restitution, the refund of monies paid, disgorgement of ill-gotten monies, and other equitable relief for Defendants acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. 45(a).

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JURISDICTION AND VENUE 2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. 1331, 1337(a),

and 1345, and 15 U.S.C. 45(a) and 53(b). 3. 53(b). PLAINTIFF 4. The FTC is an independent agency of the United States Government created by Venue is proper in this district under 28 U.S.C. 1391(b) and (c) and 15 U.S.C.

statute. 15 U.S.C. 41-58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C. 45(a), which prohibits unfair or deceptive acts or practices in or affecting commerce. 5. The FTC is authorized to initiate federal district court proceedings, by its own

attorneys, to enjoin violations of the FTC Act and to secure such equitable relief as may be appropriate in each case, including rescission or reformation of contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies. 15 U.S.C. 53(b) and 56(a)(2)(A). DEFENDANTS 6. Defendant Debt Relief USA, Inc. (DRUSA) is a Florida for-profit corporation that

had its principal place of business at 16200 Addison Road, Suites 100 and 105, Addison, Texas 75001. DRUSA transacted business in this district and throughout the United States. At all times material to this Complaint, acting alone or in concert with others, DRUSA advertised, marketed, distributed, or sold debt relief services to consumers throughout the United States. On June 18, 2009, DRUSA filed a voluntary petition under the reorganization provisions of Chapter 11 of the Bankruptcy Code, 11 U.S.C. 101 et seq., in the United States Bankruptcy Court for the Northern District of Texas, Case No. 09-33836-SGJ. On June 25, 2009, the Bankruptcy Court converted the 2

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case to Chapter 7, and appointed a Chapter 7 Trustee. The instant action against DRUSA is not stayed by 11 U.S.C. 362(a)(1), (2), (3), or (6), because it is an action brought by the FTC to enforce the FTCs police and regulatory power as a governmental unit pursuant to 11 U.S.C. 362(b)(4) and, thus, falls within an exception to the automatic stay. 7. Defendant Kelly Reilly was the president and a 52 percent shareholder of DRUSA.

At times material to this Complaint, acting alone or in concert with others, he formulated, directed, controlled, had authority to control, or participated in the acts and practices of DRUSA, including the acts and practices set forth in this Complaint. Defendant Kelly Reilly, in connection with the matters alleged, transacted business in this district and throughout the United States. 8. Defendant Alvin Bell was the executive vice president and a 20 percent shareholder

of DRUSA. At times material to this Complaint, acting alone or in concert with others, he formulated, directed, controlled, had authority to control, or participated in the acts and practices of DRUSA, including the acts and practices set forth in this Complaint. Defendant Alvin Bell, in connection with the matters alleged, transacted business in this district and throughout the United States. 9. Defendant James Wojcik was the chief operating officer and a 20 percent

shareholder of DRUSA. At times material to this Complaint, acting alone or in concert with others, he formulated, directed, controlled, had authority to control, or participated in the acts and practices of DRUSA, including the acts and practices set forth in this Complaint. Defendant James Wojcik, in connection with the matters alleged, transacted business in this district and throughout the United States.

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10.

Defendant Valerie Leath was the Director of Marketing and Director of Information

Technology at DRUSA and a three percent shareholder of the company. At times material to this Complaint, acting alone or in concert with others, she formulated, directed, controlled, had authority to control, or participated in the acts and practices of DRUSA, including the acts and practices set forth in this Complaint. Defendant Valerie Leath, in connection with the matters alleged, transacted business in this district and throughout the United States. COMMERCE 11. At all times material to this Complaint, Defendants maintained a substantial course of

trade in or affecting commerce, as commerce is defined in Section 4 of the FTC Act, 15 U.S.C. 44. DEFENDANTS BUSINESS ACTIVITIES 12. Since at least 2005, and continuing until approximately June 2009, Defendants

DRUSA, Kelly Reilly, Alvin Bell, James Wojcik, and Valerie Leath offered a debt relief service to consumers having difficulty with their personal finances. Defendants targeted consumers with substantial amounts of unsecured debt, often claiming that participation in their debt relief service would result in the elimination of 40 to 60 percent of consumers debts and that participating consumers would be debt free in 24 to 48 months. Defendants Marketing and Advertising 13. Defendants marketed their debt relief service on the websites

www.4debtreliefusa.com, www.drusainfo.com, and www.debtreliefusa.us and through national television and radio advertisements.

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14.

Through their websites, Defendants represented that, for consumers to become debt

free, It typically takes about 24-36 months after weve negotiated the total amount of debt down to 40-60%. This includes all fees; and stated, Because we negotiate the debt down to a fraction of what you owe, your savings are far greater than any interest or late fees that could accrue. Defendants websites encouraged consumers to call a toll-free number to learn more about Defendants debt relief service. 15. In their national television and radio advertisements, Defendants made claims such as

you can settle your credit card debt for pennies on the dollar without filing for bankruptcy and you typically save about half of what you owe and can truly be debt free in less than 36 months. Defendants radio and television advertisements urged interested consumers to call a toll-free number for a free consultation and to enroll in their debt relief service. The Sales Call 16. Consumers who called one of Defendants toll-free numbers were connected to a

sales representative. These representatives often told consumers that they could save a significant amount of the debt owed to their creditors by making low monthly payments to Defendants that would cover settlement of the reduced debt and Defendants fees. In numerous instances, Defendants sales representatives stated that consumers debts would be settled in 36 months and provided settlement averages such as 40 to 50 percent. 17. Defendants sales representatives typically told consumers that, in order for the debt

relief service to work, consumers had to stop making payments to creditors and cease communications with creditors. These representatives told consumers to rely on Defendants to communicate and negotiate with consumers creditors. In some instances, sales representatives 5

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stated that, based on Defendants special relationships with creditors, Defendants could negotiate significant discounts for consumers. Client Settlement Agreement 18. Consumers who agreed to enroll in Defendants debt relief service were required to

authorize a bank account debit over the telephone for the initial monthly payment prior to receiving enrollment documents. Among the enrollment documents were a Client Settlement Agreement (Agreement), forms authorizing recurring monthly withdrawals from consumers bank accounts, and a form used to identify the amounts owed to various creditors. 19. The Agreement was a five or six page single-spaced document. The Agreement

contained provisions that often were not previously disclosed or were contrary to the representations on Defendants websites or in Defendants sales calls. For example, the Agreement stated in no manner has DRUSA represented that Client stop making payments to their Creditors. This contradicted the instruction in the sales call that consumers must agree to stop paying their creditors for Defendants debt relief service to work. The Agreement also indicated that creditors may choose not to participate in Defendants service. Defendants Fees 20. Defendants charged consumers fees, including administrative fees, monthly

maintenance fees, and negotiation fees. Defendants took these fees from the monthly recurring withdrawals consumers authorized. Pursuant to the Agreement, administrative fees were non-refundable unless consumers cancelled enrollment in Defendants debt relief service during a seven-day period following enrollment.

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21.

Defendants charged consumers an upfront administrative fee that was calculated as 8

to 10 percent of the amount of debt that consumers owed their unsecured creditors at the time of enrollment. 22. Defendants also charged a monthly maintenance fee of $29.95 or $39.95 for each

month consumers were enrolled in Defendants debt relief service. 23. Defendants also charged a negotiation fee for each account settled. The negotiation

fee was calculated as 13 to 15 percent of the purported savings the company obtained in the settlement. Many consumers never paid a negotiation fee because Defendants did not settle any of their debts. Defendants Reference Booklet 24. After consumers enrolled in Defendants debt relief service, they received a reference

booklet from Defendants. The booklet provided additional information about Defendants debt relief service. 25. The booklet stated it could take up to six months for DRUSA to achieve the first

settlement. Additionally, consumers were instructed not to tell creditors to call DRUSA, and that DRUSA would inform creditors of consumers involvement in its service only when consumers were financially ready to settle one or more accounts. In numerous instances, Defendants did not disclose this information to consumers prior to their enrollment. Failure to Deliver Promised Results 26. In numerous instances, Defendants did not contact or commence settlement

negotiations with consumers creditors immediately upon consumers enrollment in Defendants debt relief service. Typically, Defendants did not contact or initiate negotiations with any creditor 7

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until after (a) consumers had paid the administrative fee in full and (b) consumers had accumulated enough funds in a set aside account to settle the debt with that creditor. Often, the first time Defendants mentioned this fact was in the Reference Booklet, which consumers received after enrollment. 27. For numerous consumers, it took over six months after enrollment to pay Defendants

administrative fee in full and even begin accumulating funds for the first settlement offer. Throughout this time, Defendants typically did not contact consumers creditors and continued to advise consumers to cease making payments to and communicating with their creditors. 28. Contrary to Defendants representations, Defendants rarely negotiated settlements for

all accounts consumers entered into the debt relief service. Moreover, even when Defendants succeeded in negotiating a settlement on one or more of the consumers accounts, the consumers account balances had increased from the time of enrollment to the time of settlement due to creditors additional late fees, finance charges, and other charges. Therefore, the total aggregate amount consumers were required to pay was, in numerous instances, higher than 40 to 60 percent of the total amount they owed to their creditors at the time of enrollment. 29. Contrary to Defendants representations that consumers would pay off their total debt

in 24 to 48 months at a 40 to 60 percent savings and that consumers financial situations would improve, numerous consumers enrolled in Defendants service did not achieve the promised results. In fact, consumers frequently found that the amount of their debt actually increased due to creditors additional late fees, finance charges, and other charges. As a result, consumers financial situations worsened and numerous consumers did not have their total debt paid off in 24 to 48 months.

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30.

Few consumers enrolled in Defendants debt relief service ever completed the service

and received the promised results. In numerous instances, consumers cancelled or dropped out of Defendants debt relief service before any debt was negotiated because they could not afford to pay Defendants substantial fees and also accumulate money to pay off their debts. Other consumers cancelled or dropped out because of harassment and escalating collection attempts by their creditors. Consumers who cancelled or dropped out after the seven-day cancellation period typically forfeited all fees paid to Defendants. 31. Consumers who purchased Defendants debt relief services frequently sought a

refund from the Defendants. Defendants routinely denied consumers refund requests. VIOLATIONS OF SECTION 5 OF THE FTC ACT 32. Section 5(a) of the FTC Act, 15 U.S.C. 45(a), prohibits unfair or deceptive acts or

practices in or affecting commerce. 33. Misrepresentations or deceptive omissions of material fact constitute deceptive acts

or practices prohibited by Section 5(a) of the FTC Act. COUNT I 34. In numerous instances, in connection with the advertising, marketing, promotion,

offering for sale, or sale of their debt relief services, Defendants represented, directly or indirectly, expressly or by implication, that by participating in Defendants debt relief services, consumers would eliminate their unsecured debt by paying a substantially reduced amount, realizing savings of 40 to 60 percent of the total debt initially enrolled in the program. 35. The representation set forth in Paragraph 34 was false or was not substantiated at the

time the representation was made. Among other reasons, in making this representation, Defendants 9

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relied on calculations of past consumers results that: (a) included only consumers debts that Defendants actually settled, omitting those debts that Defendants were unable to or did not settle; (b) were based on the amounts consumers owed at the time of settlement, rather than at the time they initially enrolled; (c) excluded fees paid by consumers to Defendants; and (d) excluded consumers who dropped out of Defendants debt relief services before achieving any results. All of these factors tended to inflate the percentage saved by consumers enrolled in Defendants services. Therefore, the making of the representation as set forth in Paragraph 34 of this Complaint constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. 45(a). COUNT II 36. In numerous instances, in connection with the advertising, marketing, promotion,

offering for sale, or sale of their debt relief services, Defendants represented, directly or indirectly, expressly or by implication, that consumers who enrolled in Defendants debt relief services would be out of debt in 24 to 48 months. 37. The representation set forth in Paragraph 36 was false or was not substantiated at the

time the representation was made. Therefore, the making of the representation as set forth in Paragraph 36 of this Complaint constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. 45(a). CONSUMER INJURY 38. Consumers have suffered and will continue to suffer substantial injury as a result of

Defendants violations of the FTC Act. In addition, Defendants have been unjustly enriched as a result of their unlawful acts or practices. Absent injunctive relief by this Court, Defendants are likely to continue to injure consumers, reap unjust enrichment, and harm the public interest. 10

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THIS COURTS POWER TO GRANT RELIEF 39. Section 13(b) of the FTC Act, 15 U.S.C. 53(b), empowers this Court to grant

injunctive and such other relief as the Court may deem appropriate to halt and redress violations of any provision of law enforced by the FTC. The Court, in the exercise of its equitable jurisdiction, may award ancillary relief, including rescission or reformation of contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies, to prevent and remedy any violation of any provision of law enforced by the FTC. PRAYER FOR RELIEF WHEREFORE, Plaintiff FTC, pursuant to Section 13(b) of the FTC Act, 15 U.S.C. 53(b), and the Courts own equitable powers, requests that the Court: A. Award Plaintiff such preliminary injunctive and ancillary relief as may be necessary

to avert the likelihood of consumer injury during the pendency of this action and to preserve the possibility of effective final relief, including, but not limited to, preliminary injunctions; B. Defendants; C. Award such relief as the Court finds necessary to redress injury to consumers Enter a permanent injunction to prevent future violations of the FTC Act by

resulting from Defendants violations of the FTC Act, including, but not limited to, rescission or reformation of contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies; and

11

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D.

Award Plaintiff the costs of bringing this action, as well as such other and additional

relief as the Court may determine to be just and proper. Dated: August 17, 2011 Respectfully submitted, WILLARD K. TOM General Counsel DEANYA T. KUECKELHAN Regional Director /s/ Susan E. Arthur SUSAN E. ARTHUR Texas Bar No. 01365300 SHEREEN EL DOMEIRI Texas Bar No. 24036518 FEDERAL TRADE COMMISSION Southwest Regional Office 1999 Bryan Street, Suite 2150 Dallas, Texas 75201 Tel: 214-979-9370 (Arthur) Tel: 214-979-9395 (El Domeiri) Fax: 214-953-3079 Email: sarthur@ftc.gov Email: seldomeiri@ftc.gov ATTORNEYS FOR PLAINTIFF

12

OJS 44 (TXND Rev. 2/10)

Case 3:11-cv-02059-N Document 1-1

Filed CIVIL COVER 08/17/11 Page 1 of 3 PageID 13 SHEET

The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)

Federal Trade Commission

I. (a) PLAINTIFFS

DEFENDANTS

Debt Relief USA, Inc.; Reilly, Kelly; Bell, Alvin; Wojcik, James, and Leath, Valerie

(b) County of Residence of First Listed Plaintiff

(EXCEPT IN U.S. PLAINTIFF CASES)

County of Residence of First Listed Defendant

Dallas

(IN U.S. PLAINTIFF CASES ONLY) NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE LAND INVOLVED.

Federal Trade Commission, Susan E. Arthur, Shereen El Domeiri, 1999 Bryan Street, Suite 2150, Dallas, Texas 75201 (214) 979-9370, (214) 979-9395

(c) Attorneys (Firm Name, Address, and Telephone Number)

See attachment.

Attorneys (If Known)

II. BASIS OF JURISDICTION

1
U.S. Government Plaintiff U.S. Government Defendant

(Place an X in One Box Only)

III. CITIZENSHIP OF PRINCIPAL PARTIES(Place an X in One Box for Plaintiff

(For Diversity Cases Only) PTF Citizen of This State 1 DEF 1 and One Box for Defendant) PTF DEF Incorporated or Principal Place 4 4 of Business In This State Incorporated and Principal Place of Business In Another State Foreign Nation

3 Federal Question (U.S. Government Not a Party) 4 Diversity

(Indicate Citizenship of Parties in Item III)

Citizen of Another State Citizen or Subject of a Foreign Country

2 3

2 3

5 6

5 6

IV. NATURE OF SUIT

CONTRACT

(Place an X in One Box Only) TORTS PERSONAL INJURY 310 Airplane 315 Airplane Product Liability 320 Assault, Libel & Slander 330 Federal Employers Liability 340 Marine 345 Marine Product Liability 350 Motor Vehicle 355 Motor Vehicle Product Liability 360 Other Personal Injury CIVIL RIGHTS 441 Voting 442 Employment 443 Housing/ Accommodations 444 Welfare 445 Amer. w/Disabilities Employment 446 Amer. w/Disabilities Other 440 Other Civil Rights PERSONAL INJURY 362 Personal Injury Med. Malpractice 365 Personal Injury Product Liability 368 Asbestos Personal Injury Product Liability PERSONAL PROPERTY 370 Other Fraud 371 Truth in Lending 380 Other Personal Property Damage 385 Property Damage Product Liability PRISONER PETITIONS 510 Motions to Vacate Sentence Habeas Corpus: 530 General 535 Death Penalty 540 Mandamus & Other 550 Civil Rights 555 Prison Condition

FORFEITURE/PENALTY

BANKRUPTCY

OTHER STATUTES

110 Insurance 120 Marine 130 Miller Act 140 Negotiable Instrument 150 Recovery of Overpayment & Enforcement of Judgm ent 151 Medicare Act 152 Recovery of Defaulted Student Loans (Excl. Veterans) 153 Recovery of Overpayment of Veterans Benefits 160 Stockholders Suits 190 Other Contract 195 Contract Product Liability 196 Franchise REAL PROPERTY 210 Land Condemnation 220 Foreclosure 230 Rent Lease & Ejectment 240 Torts to Land 245 Tort Product Liability 290 All Other Real Property

610 Agriculture 620 Other Food & Drug 625 Drug Related Seizure of Property 21 USC 881 630 Liquor Laws 640 R.R. & Truck 650 Airline Regs. 660 Occupational Safety/Health 690 Other LABOR 710 Fair Labor Standards Act 720 Labor/Mgmt. Relations 730 Labor/Mgmt.Reporting & Disclosure Act 740 Railway Labor Act 790 Other Labor Litigation 791 Empl. Ret. Inc. Security Act
IMMIGRATION 462 Naturalization Application 463 Habeas Corpus Alien Detainee 465 Other Immigration Actions

422 Appeal 28 USC 158 423 Withdrawal 28 USC 157

PROPERTY RIGHTS 820 Copyrights 830 Patent 840 Trademark SOCIAL SECURITY 861 HIA (1395ff) 862 Black Lung (923) 863 DIWC/DIWW (405(g)) 864 SSID Title XVI 865 RSI (405(g)) FEDERAL TAX SUITS 870 Taxes (U.S. Plaintiff or Defendant) 871 IRSThird Party 26 USC 7609

400 State Reapportionment 410 Antitrust 430 Banks and Banking 450 Commerce 460 Deportation 470 Racketeer Influenced and Corrupt Organizations 480 Consumer Credit 490 Cable/Sat TV 810 Selective Service 850 Securities/Commodities/ Exchange 875 Customer Challenge 12 USC 3410 890 Other Statutory Actions 891 Agricultural Acts 892 Economic Stabilization Act 893 Environmental Matters 894 Energy Allocation Act 895 Freedom of Information Act 900Appeal of Fee Determination Under Equal Access to Justice 950 Constitutionality of State Statutes

V. ORIGIN

1 Original Proceeding

2 Removed from
State Court

(Place an X in One Box Only)

3 Remanded from
Appellate Court

Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity):

4 Reinstated or 5 Transferred from 6 Multidistrict another district Reopened Litigation (specify)

7 Judge from Magistrate

Judgment

Appeal to District

VI. CAUSE OF ACTION Brief description of cause:

15 U.S.C. 41-58

CHECK IF THIS IS A CLASS ACTION VII. REQUESTED IN UNDER F.R.C.P. 23 COMPLAINT: VIII. RELATED CASE(S) (See instructions) PENDING OR CLOSED:
JUDGE
DATE

Deceptive acts and practices in violation of FTC Act, 15 U.S.C. 45(a).

DEMAND $

CHECK YES only if demanded in complaint: Yes No JURY DEMAND:

DOCKET NUMBER

3:11-CV-2059

08/17/2011

/s/ Susan E. Arthur

SIGNATURE OF ATTORNEY OF RECORD

FOR OFFICE USE ONLY RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE

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JS 44 Reverse (TXND Rev. 2/10)

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INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44

Authority For Civil Cover Sheet
The JS 44 civil cover sheet and theinformation contained herein neither replaces nor supplements the filings and service of pl ading or other papers as required e by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United Statesin September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney filing a case should complete the form as follows: I. (a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a governm agency, use only ent the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, giving both name and title. (b) County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the time of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land condemnation cases, the county of residence of the defendant is the location of the tract of land involved.) (c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, noting in this section (see attachment). II. Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), Fed. R. Civ. P., which requires that jurisdictions be shown in pleadings. Place an X in one of the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below. United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are included here. United States defendant. (2) When the plaintiff is suing the United States, its officers, or agencies, place an X in this box. Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment to the Constitution, an act of Congress, or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes precedence, and box 1 or 2 should be marked. Diversity of citizenship. (4) This refers to suits under 28 U. .C. 1332, where parties are citizens of different states. When Box 4 is checked, the citizenship of the S different parties must be checked. (See Section III below; federal question actions take precedence over diversity cases.) III. Residence (citizenship) of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this section for each principal party. IV. Nature of Suit. Place an in the appropriate box. If the nature of suit cannot be determined, be sure the cause of action, in Section VI below, is X sufficient to enable the deputy clerk or the statistical clerks in the Administrative Office to determine the nature of suit. If the cause fits more than one nature of suit, select the most definitive. V. Origin. Place an X in one of the seven boxes. Original Proceedings. (1) Cases which originate in the United States district courts. Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441. When the petition for removal is granted, check this box. Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing date. Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date. Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or multidistrict litigation transfers. Multidistrict Litigation. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section 1407. When this box is checked, do not check (5) above. Appeal to District Judge from Magistrate Judgment. (7) Check this box for an appeal from a magistrate judges decision. VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional . statutes unless diversity Example U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service VII. Requested in Complaint. Class Action. Place an X in this box if you are filing a class action under Rule 23, Fed. R. Civ. P. Demand. In this space enter the dollar amount (in thousands of dollars) being demanded or indicate other demand, such as a preliminary injunction. Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded. VIII. Related Cases. This section of the JS 44 is used to reference cases that are related to this filing, if any. If a related case exists, whether pending or closed, insert the docket numbers and the corresponding judge names for such cases. A case is related to this filing if the case: (1) involves some or all of the same parties and is based on the same or similar claim; (2) involves the same property, transaction, or event; (3) involves substantially similar issues of law and fact; and/or (4) involves the same estate in a bankruptcy appeal. Date and Attorney Signature. Date and sign the civil cover sheet.

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Attachment to Civil Cover Sheet

Attorneys for Defendants James Wojcik and Valerie Leath: Charles R. McConachie McConachie Law 4054 McKinney Ave. Suite 310 Dallas, TX 75204 (214) 559-0215 (214) 559-2453 (fax) Attorney for Robert Newhouse, Chapter 7 Trustee for Defendant Debt Relief USA, Inc. Linda S. LaRue Texas Bar No. 24046269 Quilling, Selander, Cummiskey & Lownds, P.C. 2001 Bryan Street, Suite 1800 Dallas, Texas 75201 (214) 871-2100 (214) 871-2111 (fax)