||Washington cease and desist order
...Since the shutdown of Fortuna's
operations , there has been a continuous battle
Curiously, the cease and desist order has not been mentioned in any news reports
In the weeks
since the FTC raids on Fortuna, several things have happened:
The temporary restraining order, which was only good for ten days, was
extended to a preliminary injunction. Fortuna's business attorney, Bob
Sailer, didn't contest the charges, but only pleaded for delay to obtain
more skilled legal help. The FTC moved for criminal contempt charges
against Delgado, Welch and Grant. The judge granted the motion for
criminal contempt charges and issued federal arrest warrants for the
three. At the same time, he stated that he wanted to see Delgado and the
others in court and if they could present evidence showing that the
Fortuna Alliance was operated in a legal and correct manner, he would have
no difficulty lifting the injunction and allowing the company to resume
Delgado and the others have raised a defense fund and obtained the
assistance of Ron Gould, a respected and prestigious attorney. Since the
preliminary injunction was esentially uncontested by Fortuna, the evidence
and arguments not take place until the hearing on the permanent
injunction occurs later this summer. Attorney Gould has filed motions
charging the FTC with misconduct, denying all of the charges, and stating
that a countersuit for damages will be waged by Fortuna.
Fortuna also launched a legal attack against the receiver and seeks to
have him removed or instructed to recommence the operation of the company.
One of the motions heard in early July resulted in Grassmueck being instructed to return the funds in uncashed money orders
to the consumers. This is exactly what Grassmueck predicted in an
interview immediately after the raid on the Fortuna offices, yet it
occured in response to a motion by Fortuna's attorneys.
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Albion Monitor July 22, 1996 (http://www.monitor.net/monitor)
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