Frank Romero, the operator of Trend Deploy, will be required to turn over the remaining funds in his bank and retirement accounts as part of a settlement with the Federal Trade Commission, which the FTC asked a court to approve yesterday. Romero failed to comply with a 2023 judgment stemming from an FTC lawsuit charging that he did not deliver personal protective equipment (PPE) as promised to consumers.
In its June 2021 complaint, the FTC alleged that Romero advertised the availability and quick delivery of PPE, including N95 facemasks, even though he had no basis to make those promises. According to the FTC, Romero did not deliver PPE on time (if at all), did not notify consumers of delayed shipments, did not offer cancellations and refunds required by the Mail Order Rule, and failed to honor refund requests. In addition, the PPE products he did send to consumers often were of lower quality that what they ordered.
Based on this conduct, the FTC charged Romero with violating the Commission’s Mail Order Rule, the FTC Act, and the COVID-19 Consumer Protection Act. In May 2023, the court agreed and issued a final judgment and order for permanent injunction, ordering Romero pay a judgment allowing the Commission to refund consumers for his Mail Order Rule violations.
Romero failed to comply in paying the order’s full monetary judgment. Since 2023, the FTC has taken additional actions to ensure Romero paid the judgment, including obtaining writs of garnishment and a post-judgment asset freeze, as well as filing a complaint to unwind transfers of property.
The proposed court order announced today resolves the FTC’s litigation in this matter and will ensure that Romero turns over remaining assets in accounts he owes the Commission based on his deceptive conduct in this case. To do so, the proposed order requires Romero to make a cash payment to the agency and turn over assets in five accounts. The money collected will be used to provide refunds to defrauded consumers.
The proposed order also requires Romero to relinquish all rights to the named assets and to cooperate in turning them over to the FTC. This settlement will benefit consumers by enabling the Commission to return money they lost in this scheme as expeditiously as possible. Finally, Romero remains bound by the injunction previously entered against him.
The Commission vote approving the proposed stipulated final order was 3-0. The FTC filed the proposed order in the U.S. District Court for the Middle District of Florida, Ocala Division.
NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.
The staff attorneys on this matter are Christopher Erickson and Brian Welke of the FTC’s Bureau of Consumer Protection.