Third enforcement action against 3 Michigan brothers who continually target small businesses around the country
SEATTLE — If you own a Washington small business, there’s a good chance you have been targeted by a series of fraudulent schemes orchestrated by three brothers in Michigan. The details of their schemes vary, but they all involve deceptive solicitations giving the false impression that they are mandatory bills from a government agency.
In 2008, the Attorney General’s Office investigated consumer protection violations by Labor Law Poster Service, formerly known as Mandatory Poster Agency, a company run by brothers Joseph Fata, Thomas Fata and Steven Fata, and later by Joseph’s son, Justin Fata. Mandatory Poster Agency entered into a legally enforceable agreement that it would provide full refunds to Washington businesses and stop the unlawful conduct to avoid a penalty.
Mandatory Poster Agency did not stop, and in 2014, the Attorney General’s Office filed a consumer protection lawsuit and won. In March 2016, a King County Superior Court judge ruled that Mandatory Poster Agency violated the Consumer Protection Act 79,354 times and ordered civil penalties and restitution of $1.15 million. The judgment included $793,540 in civil penalties and up to $362,625 in restitution for businesses harmed by the deceptive scheme. The court also ordered the Fata brothers to stop their illegal conduct. In all, Mandatory Poster Agency and the Fata brothers paid more than $1.2 million as a result of that judgment.
Even after paying, the Fata brothers did not stop their illegal activity.
Today Attorney General Bob Ferguson filed a new consumer protection lawsuit against Labor Law Poster Service, and the Fatas, for sending hundreds of thousands of deceptive solicitations targeting small businesses.
The lawsuit, filed in King County Superior Court, accuses Labor Law Poster Service of violating the state Consumer Protection Act more than 300,000 times over the course of at least seven years. It alleges that the company and its owners violated both the prior permanent injunction and the 2008 resolution with the Attorney General’s Office that prohibited the company from sending deceptive letters.
Ferguson’s lawsuit is part of the Small Business Protection Initiative, which has won tens of millions of dollars for Washington businesses that have been targeted by scams.
The types of businesses across Washington affected by Labor Law Poster Service’s scheme include a small law firm, a fitness franchise, a daycare center, a veterinarian, a church, and a company that transports people who use wheelchairs to non-emergency medical appointments.
“These repeat offenders keep recycling deceptive tactics they know are unlawful,” Ferguson said. “We will make them return every penny, plus interest, to small business owners they harmed. We’ll also seek a significant penalty to make sure they stop their illegal conduct.”
Ferguson’s latest lawsuit asserts that Labor Law Poster Service mailed at least 325,750 deceptive letters to small businesses between 2016 and 2022, including 60,000 to 70,000 new solicitations each year. The lawsuit alleges the company made at least 1,650 sales to Washington businesses since 2016, totaling at least $141,228 in sales.
Ferguson’s lawsuit seeks:
Full restitution for Washingtonians harmed by this deceptive conduct, plus interest. This includes the $141,228 in sales, as well as any other payments the Attorney General’s Office uncovers from Washington businesses as a result of the deceptive solicitations.
Civil penalties for every deceptive letter sent to Washington businesses to hold these repeat violators accountable and deter future violations. The law allows the Attorney General’s Office to seek a significant penalty of up to $7,500 for every one of the 325,750 deceptive letters.
Civil penalties of up to $125,000 for each of Labor Law Poster Service’s violations of the injunctive terms of its 2008 agreement with the Attorney General’s Office and the King County Superior Court’s 2016 permanent injunction.
Labor Law Poster Service sent letters around the United States. Attorney General Ferguson will be communicating with other state attorneys general about this case.
Background on workplace requirements and posters scheme
Businesses with employees are legally required to display certain workplace posters about a variety of workers’ rights and entitlements, such as workplace safety requirements or the right to access disability leave.
Employers can download digital copies of these posters for free from many regulators and state agencies, such as the Washington Department of Labor and Industries, Washington Employment Security Department and the U.S. Department of Labor. Workplace posters are not required for businesses with no employees.
Labor Law Poster Service intentionally misrepresents these requirements for profit. They send deceptive letters that look like bills or invoices from a government agency. They mail the letters in envelopes with threatening language about legal consequences for not immediately purchasing the advertised product — a “Complete State & Federal Posting Requirement Set” — at a cost of $79.50 or more. These solicitations target small business owners, often newly registered small businesses, who may lack time and resources to thoroughly vet the legitimacy of the letters.
Together, these deceptive tactics leave business owners with the impression that buying and displaying Labor Law Poster Service’s product is required by law and they ultimately pay the fee to avoid any risk of legal ramifications. One business owner targeted by the scheme, who processes bills and invoices for a fitness franchise, told the Attorney General’s staff: “We were only trying to comply with the law.”
The latest lawsuit also asserts Labor Law Poster Service continues soliciting renewal payments from businesses they previously duped into buying the posters. Ferguson’s lawsuit asserts that each version of deceptive solicitation — whether for new or repeat purchases — counts as a violation under the Consumer Protection Act.
Assistant Attorneys General Zorba Leslie and Kelsey Burazin, Investigator Scott Henderson, Paralegal Mary Barber and Legal Assistant Ashley Totten are handling the case for Washington.
Details on investigation and prior violations
The Attorney General’s Office opened an investigation after receiving several new complaints from businesses who had purchased posters from Labor Law Poster Service, formerly known as Mandatory Poster Agency. In addition to violating the CPA, the conduct alleged in the complaints violates a previous resolution with and prior permanent injunction against Mandatory Poster Agency.
The company previously sent envelopes marked “Important: Annual Minutes Requirement Statement” to roughly 80,000 Washington businesses between 2012 and 2013. Ferguson asserted that more than 2,900 small businesses paid $125 each to prepare documents that looked like they came from the government. The judge found Mandatory Poster Agency’s mailings violated the Consumer Protection Act 79,354 times. The company paid penalties amounting to $10 per violation, plus consumer restitution. It also paid the Attorney General’s Office $377,164 for attorneys’ fees.
Under its new name, Labor Law Poster Service violated both the 2016 court order and the earlier resolution by engaging in the same deceptive practices.
Other states have filed lawsuits against Labor Law Poster Service for engaging in similar deceptive conduct across the country. A lawsuit brought by the Tennessee attorney general is pending, and in 2017 Arizona won a $626,000 judgment against the company when it operated as Mandatory Poster Agency. In 2016, Labor Law Poster Service agreed to pay nearly $400,000 in penalties after violating a cease and desist order with the Delaware attorney general. In 2013, the Fata brothers, then operating as Mandatory Poster Agency, entered into a consent judgment with the State of Wisconsin after sending more than 72,000 deceptive mailers that required them to pay $340,000 in restitution and civil forfeitures.
Combined, these recycled deceptive tactics can amount to millions of dollars in profit for these repeat offenders.
Prior enforcement on scams targeting businesses
Ferguson filed lawsuits in March 2022 against Florida-based CA Certificate Service and Labor Poster Compliance and their owners for sending hundreds of thousands of deceptive letters to Washington business owners. The solicitations appeared to originate from the government and demanded payments for posters or certificates that the company deceptively advertised as mandatory.
In November 2022, a judge ruled that the two companies committed 232,091 separate violations of the Consumer Protection Act. The court ordered the companies to pay more than $24.8 million in penalties and restitution. The judge also permanently blocked the defendants from mailing the deceptive letters into Washington.
In February 2016, a Thurston County judge ordered LA Investors LLC, a California-based company that duped new Washington property owners into buying overpriced deeds, to pay more than $3.6 million for its deceptive practices. The court found the company violated the state Consumer Protection Act at least 256,998 times by sending deceptive, official-looking notices implying that consumers needed to buy a dramatically overpriced $89 copy of their deed. Deeds typically cost only a few dollars from a local county office, and many property owners can obtain a copy of their deed for free online.
If you suspect you have been the target of similar scams, please contact the Attorney General’s Office. You can file a complaint online at atg.wa.gov/file-complaint or call the office toll-free at 1-800-551-4636.
IN OTHER STATE NEWS:
AG Ferguson wins commitment of Spokane County sexually violent predator.
SPOKANE — Following a trial prosecuted by Attorney General Bob Ferguson’s Sexually Violent Predator Unit (SVP), a Spokane County Superior Court judge has ruled that a Spokane County sex offender is a sexually violent predator will be civilly committed./WAAG
Waste disposal company penalized $25,000 for improperly managing dangerous waste.
WASHOUGAL –
Burlington Environmental, a subsidiary of Clean Earth and Harsco, is receiving a $25,000 penalty from the Washington Department of Ecology for violating state dangerous waste regulations. Burlington Environmental improperly stored dangerous waste on site for several months and failed to adequately train its employees on managing that waste./DOE
Ecology Food Center reduces waste and connects people to healthy food.
Imagine a crisp apple, untouched, tossed into a bin. Picture a container of milk, sour and forgotten, being poured down a cafeteria sink. This daily reality is a sad scene that has turned into social and environmental crises a new Washington Department of Ecology program wants to reduce./DOE
WA DFI Issues Policy Statement and Consumer Alert to Increase Consumer Awareness of Scams Involving Virtual Currency Kiosks/ DFI
Department of Health offers naloxone to high schools to combat youth opioid overdoses.
OLYMPIA – Opioid-related drug overdose deaths in Washington have risen dramatically, particularly among young people. Rates of opioid-related fatalities among adolescents aged 14-18 have surged almost threefold from 3.6 per 100,000 individuals in 2016 to 10.6 per 100,000 individuals in 2022. This increase is largely attributed to the increase of synthetic opioids, such as fentanyl, in the illegal drug supply./DOH
2) NEWS FROM OUR CONGRESSIONAL DELEGATION
KILMER ANNOUNCES $16.6 MILLION FOR ELECTRIC VEHICLE CHARGING INFRASTRUCTURE ON THE OLYMPIC PENINSULA
PORT ANGELES, WA – Today, U.S. Representative Derek Kilmer (WA-06) announced nearly $16.7 million in new federal funding for two projects on the Olympic Peninsula through the U.S. Department of Transportation Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. These grants are made possible by the Bipartisan Infrastructure Law, the largest long-term investment in America’s infrastructure and competitiveness in nearly a century./ FROM a press release issue
Cantwell Demands Answers on FAA Oversight of Boeing & Spirit AeroSystems Safety Audits
“In reviewing FAA orders on how FAA conducts the oversight processes, it appears that there may be ways for manufacturers to avoid audit accountability,” Cantwell writes in letter to FAA Administrator/ press release issued
Western WA Communities Get $41.19M for New Electric Vehicle Charging Infrastructure
Grant will also fund a new electric truck charging hub for the Port of Seattle & Port of Tacoma, reducing emissions from an estimated 300 diesel trucks/press release
Senator Murray Delivers New Summer Grocery Benefits for 507,000 Children in WA State, Nearly $61 Million in EBT Benefits
44 States, U.S. Territories, Tribes Will Launch the USDA Permanent Summer EBT Program in 2024/ press release issued
https://www.murray.senate.gov/senator-murray-delivers-new-summer-grocery-benefits-for-507000-children-in-wa-state-nearly-61-million-in-ebt-benefits/
Senator Murray Applauds Biden Administration’s Final Worker Classification Rule
Senator Murray led colleagues in comment letter last year applauding Administration’s proposed independent contractor rule/press release issued
3) WORLD < NATIONAL < BUSINESS
WORLD:
Briefing Security Council, Special Representative in Colombia Stresses Importance of Implementing Peace Agreement, Continuing Dialogue with Armed Actors
The Final Agreement between the Government of Colombia and the former Fuerzas Armadas Revolutionaries de Colombia-Ejército del Pueblo (FARC-EP) remains as relevant today as the day it was signed, the Special Representative for the country told the Security Council today./UN PRESS RELEASE
Reconfigured Regional Coordination Mechanism Key to Quell Widespread Insecurity, Avert More Coups in West Africa, Sahel, Special Representative Tells Security Council
Amid growing fears of widespread insecurity in West Africa and the Sahel, a senior United Nations official told the Security Council today of the need to reconfigure the region’s security coordination mechanism, including the possible deployment of an African Union standby team./ UN PRESS RELEASE
Adopting Resolution 2722 (2024) by Recorded Vote, Security Council Demands Houthis Immediately Stop Attacks on Merchant, Commercial Vessels in Red Sea
United States, United Kingdom Reject Three Amendments By Russian Federation, including One Linking Attacks to Gaza Conflict/ UN PRESS RELEASE
Remarks at a UN Security Council Briefing on Colombia/USUN
NATION:
The United States Takes Action in Response to DPRK-Russia Ballistic Missile Transfers and Testing/ US STATE DEPT.
Justice Department Releases New Guide on the Use of Specialized Units in Law Enforcement Agencies/DOJ
Inspector General Initiates Review of DOD Procedures Following Austin Hospitalization.
The Defense Department's inspector general yesterday sent a memorandum announcing a review examining the roles, processes, procedures, responsibilities and actions related to the secretary of defense's recent hospitalization./DOD
Biden-Harris Administration to Shorten Path to Debt Cancellation for Some SAVE Borrowers.
New data show 6.9 million borrowers are enrolled in the Administration’s most affordable repayment plan
Today, the Biden-Harris Administration announced that next month it will start providing forgiveness after as few as 10 years of payments for borrowers on the Saving on a Valuable Education (SAVE) Plan who originally took out $12,000 or less for college. Borrowers enrolled in SAVE who are eligible for early forgiveness will have their debts cancelled immediately starting next month, with no action on their part/ Dept. Of Education
HUD Publishes Proposed Rule to Promote Economic Development in Underserved Communities
The Notice of Proposed Rulemaking for HUD’s Community Development Block Grant (CDBG) and Indian Community Development Block Grant Programs (ICDBG) would bolster economic and community development in underserved communities across the country./HUD
BUSINESS:
FACT SHEET: IRS Ramps Up New Initiatives Using Inflation Reduction Act Funding to Ensure Complex Partnerships, Large Corporations Pay Taxes Owed, Continues to Close Millionaire Tax Debt Cases/US TREASURY DEPT.
New Year’s Resolutions for Bank Regulatory Policymakers
Governor Michelle W. Bowman
At the South Carolina Bankers Association 2024 Community Bankers Conference, Columbia, South Carolina/ THE FED
IRS Free File now available; free service through IRS.gov available for millions of taxpayers/IRS
USDA Partners with Pennsylvania to Award More Than $26 Million to Strengthen Food Supply Chain Infrastructure
Secretary Vilsack visits 108th annual Pennsylvania Farm Show to highlight federal-state partnerships in growing market opportunities for producers./USDA
US DEPARTMENT OF LABOR ANNOUNCES FINAL RULE ON CLASSIFYING WORKERS AS EMPLOYEES OR INDEPENDENT CONTRACTORS UNDER THE FAIR LABOR STANDARDS ACT/ Dept. of Labor
IN FOCUS & LOCAL MEETINGS FOR 1/15/24
Secretary Hobbs notifies Legislature of initiative no. 2113 certification.
OLYMPIA — Secretary of State Steve Hobbs delivered official notification to the Legislature Thursday that signature verification has been completed and certified for one Initiative to the Legislature:
Initiative to the Legislature no. 2113 concerning vehicular pursuits by police officers;
The signatures on the remaining five pending initiative petitions are being verified by the Office of the Secretary of State Elections Division team using a state-mandated process of examining a 3% random sample of submitted signatures.
If sufficient signatures are verified, the Legislature may approve an initiative or send it to voters. If an initiative is rejected by the Legislature, or the Legislature takes no action by the end of the Legislative session on March 7, the Secretary of State will certify the initiative for the next General Election. The Legislature may also pass an alternative proposal to accompany an initiative on the ballot.
Washington’s Office of the Secretary of State oversees a number of areas within state government, including managing state elections, registering corporations and charities, and governing the use of the state flag and state seal. The office also manages the State Archives and the State Library, documents extraordinary stories in Washington’s history through Legacy Washington, oversees the Combined Fund Drive for charitable giving by state employees, and administers the state’s Address Confidentiality Program to help protect survivors of crime.
Brant hunts continue in Clallam, Pacific, Whatcom counties; limited three-day hunt in Skagit County.
OLYMPIA–The Washington Department of Fish and Wildlife (WDFW) today announced continuing hunts for brant geese in Clallam, Pacific, and Whatcom counties, and a three-day hunting season for brant geese in Skagit County.
Continued stable winter brant counts have allowed for scheduled hunting opportunities in Clallam and Whatcom counties on Jan. 20, 24, and 27 and in Pacific County on Jan. 13, 14, 16, 18, 20, 21, 23, 25, 27, and 28.
A brant count above 3,000 in Skagit County means a limited three-day brant hunting opportunity will occur on Jan. 20, 24, and 27, and allows for brant hunting to be open in Skagit County during the Youth, Veteran, and Active Military waterfowl hunting opportunity on Saturday, Feb. 3.
“Recent aerial counts in Skagit County indicate numbers above the 3,000-bird minimum, allowing a limited opportunity for brant hunting in Skagit County this season,” said Kyle Spragens, WDFW waterfowl section manager. “These population surveys, conducted over Padilla, Samish, and Fidalgo bays, tallied 3,048 brant—a welcomed increase after two consecutive years of counts below the threshold.”
The surveys allow WDFW biologists to monitor the winter population in relation to the harvest pressure that can occur in Skagit County. The number of hunting days is directly related to how many brant are counted during these surveys.
“While we strive to provide harvest opportunity when appropriate, population counts below the 3,000-bird threshold require us to restrict opportunities for hunting this unique coastal waterfowl species to meet our conservation objectives,” Spragens explained.
Brant are a migratory species of goose with a sleek black head, white “necklace” marking, and distinct brown and black body feathers with striking white flank feathers. They winter in coastal bays, estuaries, and lagoons, where they eat eelgrass, sea lettuce, and other aquatic vegetation.
WDFW reminds hunters to familiarize themselves with local regulations and boundaries. Specifically, hunters in Clallam County are advised to consult the closed zones of Dungeness National Wildlife Refuge, and hunters in Whatcom County are advised to review boundaries relevant to Bellingham and Lummi Bays.
Brant hunters must possess a valid migratory bird authorization and brant harvest report card. More information on brant hunting is available in the Migratory Game Bird Seasons - Western Washington section on page 27 of the 2023-2024 Game Bird and Small Game Hunting Regulations.
WDFW works to preserve, protect, and perpetuate fish, wildlife, and ecosystems while providing sustainable fish and wildlife recreational and commercial opportunities.
Request this information in an alternative format or language at wdfw.wa.gov/accessibility/requests-accommodation, 833-855-1012, TTY (711), or CivilRightsTeam@dfw.wa.gov.
CLALLAM COUNTY MEETINGS:
Clallam County Commission meeting for 1/16/24
https://www.clallamcountywa.gov/AgendaCenter/ViewFile/Agenda/_01162024-1041
City of Port Angeles Council meeting for 1/16/24
https://www.cityofpa.us/DocumentCenter/View/14038/CC-01162024-Agenda-Packet
Clallan County Board of health meeting for 1/16/24
https://www.clallamcountywa.gov/AgendaCenter/ViewFile/Agenda/_01162024-1040
JEFFERSON COUNTY
Jefferson County meeting for 1/16/24
https://media.avcaptureall.cloud/meeting/46af1bf5-510b-4f27-b809-17eef2fe873d
PORT TOWNSEND CITY COUNCIL BUSINESS MEETING AGENDA FOR 1/16/24
https://cityofpt.granicus.com/GeneratedAgendaViewer.php?view_id=4&event_id=3550
Port of Port Townsend meeting for 1/17/24
https://portofpt.com/wp-content/uploads/2024-01-17-CommMtg-Agenda.pdf
Weekly devotional
BIBLE VERSE: 2 Corinthians 5:19-20 (New International Version)
that God was reconciling the world to himself in Christ, not counting people’s sins against them. And he has committed to us the message of reconciliation. We are therefore Christ’s ambassadors, as though God were making his appeal through us. We implore you on Christ’s behalf: Be reconciled to God.
Weekly Bible Lesson: The Goodness of God - Part 2
“Oh that men would praise the LORD for his goodness, and for his wonderful works to the children of men!” That expression is a worthy wish for the world, that all might recognize the goodness of God and respond to it in loving obedience. In our study together last time, we looked at the goodness of God as it is depicted to us by the Psalmist in Psalm 107. As we concluded, we were examining the verse we just noticed, where the Psalmist expressed the desire that all would praise the Lord for His goodness and for His wonderful works.---TFTW
https://truthfortheworld.org/goodness-of-god-part-2
Free bible studies (WBS)
https://www.worldbibleschool.org/
Learn English using the bible as text (WEI)
http://www.worldenglishinstitute.org/
(Join us in worship every Sunday starting at 10:30AM Church of Christ)
1233 E Front St, Port Angeles, WA 98362
The Chosen: About the life of Christ
https://watch.angelstudios.com/thechosen
THIS WEEK'S VIDEOS:
CNN Finally Admits the OBVIOUS About Trump Charges: It's a Witch Hunt
War, Davos, and drug dealers. On today's Friday Exclusive, Glenn recaps all the significant news stories he didn't have time to cover throughout the week, like President Biden approving an airstrike on the Iran-backed Houthis in Yemen without congressional approval (and the anti-American protests that — unsurprisingly — followed in Times Square). Next is Sen. John Fetterman (D-Penn.) becoming a conservative? Glenn gives his thoughts after Fetterman was recorded speaking some sense about South Africa's recent controversial opinion on Israel and Gaza. Then, CNN finally admits there may be a political angle in the prosecution against Donald Trump, and artist Jelly Roll gives a powerful congressional testimony on the consequences of the fentanyl crisis. Glenn later discusses the shocking coordinated effort by some of the world's biggest charities, like Doctors Without Borders and the Red Cross, to bring illegal immigrants to America. Finally, Glenn ends on a monologue from GBN's Neil Oliver discussing his pride in being labeled a "conspiracy theorist."
https://www.youtube.com/watch?v=tNoVfC0WqfU
Sunday Worship - 1/7/2023 Four Lakes C. of C.
https://www.youtube.com/watch?v=q9e5wns8jb4
NIGHT OWL COMICS
https://pjrnightowlcomics.blogspot.com/
