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1 IN THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT IN AND FOR LEON COUNTY, FLORIDA OmCE OF THE ATI'ORNEY GENERA.L, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, v. Plaintiff, MDT PARTS & EQUIPMENT, LLC, a Florida corporation, ANDRES CANNEL~ individually~ and as managing ~of MDT PARTS&: EQUIPMENT. and Case No CA-1003 ATSUKO CANNELLA, individually, and as rrumaging member of :MDT PARTS & EQUIPMENT, ' TIPULATED FINAL CON8EN]' JUDGMENT The parties hereby agree and stipulate that this Court has jwisdiction over the parties and the subject matter of this action pursuant to the provisions of Florida Deceptive and Unfair Trade Practices Act ("'FDUPT A). and that venue is proper in this Court in that the actions at issue took place in more than one county in the State of Florida. Defendants having agreed and stipulated to the entry of this Fmal Consent Judgment ("Judgment"), the findings of fact set forth below, and that this Court has jurisdiction to enter a permanent injunction and fids.l judgment in this matter, and the Court having reviewed the file BDd necessary~ the Court makes the following findings: 1

2 L GENERAL 1. Plaintiff Office of tb8 Attorney General, Department of Legal Affairs, State of Florida (the "Departmentj is an agency of the State-of Florida and tbe enforcing authority under the Florida Deceptive and Unfair Trade Practices A~ Florida Statutes Section et seq. 2. Defendant MDT Parts & Equipment, ILC ("MD'Ij. with a principal place of business rc~rcd as 6619, S. Dixie Highway. Miami) Florida, is a Florida corporation. 3. Defendant Andres Cannella is a Florida resident and is over the age of 18. Defendant Andres Cannella is a managing member of MDT Parts &. Equipment, ILC. 4. Defendant Atsuko Cannella is a Florida resident and is over the age of 18. Defendant Atsuko Cannella is a managing member of MDT Parts &. Equipment, llc. 5. The Department initiated an investigation into allegations that Defendants enpgcd in acts or practices that were misleading, unfair. deceptive or uncodscionable in the marketing, advertising. and performance of owning and operating an online food service supply company. 6. Daring the relevant time period from February 25, 2008 through January , Defendants Andtes and Atsuko Cannella owned and operated the online food service supply oompany MDT Parts & Equipment, U.C, which sold food service and restaurant supply equipment tbrougb. its website WWW!~MDJParts.com ("Website''). 7. Defendants misleading. unfair, deceptive and/or unconscionable acts and/or practices included, but were oot limited to, the following: a. Defendants routinely failed to deliver paid~for merchandise; b. Defendants routinely failed to provide refunds when appropriate; 2

3 c. Defendants routinely failed to reasodbbly respo~ if at all, to customer inquiries tegaididg status of order, requests for mfunds. and customer complaints; 8. The acts and practices described above are in violation of the Florida Deceptive and Unfair Trade Practices Aci Section et seq. 9. The practices of the Defendants oonstitute unfair, deceptive and unconscionable trade practices that are likely to deceive a coosumer acting reasonably in the same circumstances. 10. Consumers in tbe State of Florida were actually injured by the unfair, deceptive and unconscionable practices of the Defendants. D.. JUDGMENT WHEREFORE, based upon the fcnegoing factual fmdi,., it is hereby ORDERFD AND ADJUDGE~); 1. Fmal judgment is hereby entered on the cause of action asserted under the Florida Deceptive and Unfair Trade Practices Act in favor of the Office.of the Attorney General. Department of Legal Affairs, State of Florida (the "Deparrment"). The Capitol, PLOl, Tallahassee, Florida and against Defendants MDT Parts & Equipment, U.C. Andres Cannella, and Atsuto Cannella. 2. The purpose of H>UTP A is to "protect the consuming public and legitimate business enterprises from those who engage in unfair metbods of competition. or una:msclonable, deceptive, or unfair acts or practices in the conduct of any trade or commerce." Section (2). To that enct "reasonable restrictioo.s upon the future activities of any defendant to impede her or him [sic) from engaging in or establishing the same type of endeavort" are permitted by tbe Act, and courts may "order any defendant to divest herself or himself of any interest in a.ny enterprise." Section (3). Prolu'biting business activities is 3

4 constitutional when the limitation is rationally related to the State's objective of preventing deceptive practices. Frt11ern11l Order of Police v. Dept. of Stall!, 392 So. 2d 1296, 1302 (Fla. 1980) (upholding regulations in the Law Enforcement Funds Act even- tboogh they were not "the best possible means to eradicate the evils perceived" because they were not "wholly unrelated" to the legislature's purpose). As such, a permanent injunction is appropriate. 3. The Court hereby permanently enjoins Defendams from the following: a. Any acts or practices that violate the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part D, Florida Statutes; b. Creating, administering, nmning. purchasing, or in any way marketing and selling food service and/or restaurant supply equipment online to generate income; c. Disseminating. or causing to be disseminated, any untrue or misleading advertisement in the context of advertising of products or services in commerce~ pursuant to Florida Statute Sections (2006) and (1997). d. Additionally, MDT Parts &. Equipment, U.C shall cease operations and permaneutly take down its website. 4. Defendants shall not destroy, mutllate, conceal, alter, or dispose of Defendant"s books, records, contracts, financial records, consumer files add financial information, regardless of tbe manner in which it is stored, for a period of two (2) years from the date of this Judgment. At any point during the two (2) year retention period set forth herein, Defendants shall make any and au books and records available to the Department within three (3) business days of any reasonable requesl 4

5 . 5. Defendants shall not affect any change in the form of doing business or the organizational identity of any of the existing business entities or create any new business entities as 11. method of avoiding the terms and conditions set forth in this Judgmenl 6. This Judgment is continuing in nature and shall be binding on any and all suc:cessois or assigns of Defendants. 7. This Judgment is oot a waiver of any private rights of any person or release of any private rights, causes of action, or remedies of any person against Defendants or any other person or entity. Notwithstanding any other provision of this Judgment, nothing herein sball be codstrued to impair, compromise or affect any right of any government agency other than the Office of the Attomey Genetal for the State of Florida relating to the operative facts at issue in this action. 8. Nothing herein shall affect Defendant's (a) testimonial obligations, or (b) right td take legal or factual positions in defense of litigation or other legal proceedings to which the Dq»artmeot is not a party. 9. Ally failure to comply with the terms and conditions of this Iodgmem is by statute prima facie evidence of a violation of Chapter 501. Part n. Florida Statutes, and will subject Defendants to any and all civil penalties and sanctions authorized by law. including attorneys' fees and costs. In the event that a court of competent ju.risdict.ion makes a determination that a violation of ey provision of this Judgment bas occuned. then Defemlants shall be jointly and severally liable f-or an additional $10,000 in civil penalties per violation, as well as any additional attorneys' fees and costs. and other relief as may be allowed by law. 5

6 '. 10. This Court retains jurisdiction of this case to enfoo;e the terms of this Judgment and enter any further Orders as may be necessary to ensure compliance with this Judgment, including by contempt proceedings, civil and/or criminal. 11. The Parties jointly participated in the negotiation of tbe terms articulated in this Judgment This document is signed in anticipation of this Judgment being submitted to the Court for approval, without necessity of bearing. which is hereby WAIVED by all parties. The signatures below indicate the parties consent and agreement to this Jud.gmeut. Aeneclto: STATE OF FI.DRIDA ) COUNTY OF MiamiMDade ) BEFORE ME, an officer duly authorized to take acknowledgments in the State of Fiori~ Andres Cannella personally appeared, individually. He acknowledged befo2 me that he ~, 1 ~2014. the foregoing instnunent for the purposes therein stated on the day of Subscribed1Dbefote- this :2.. day of ~ ~ 6

7 ~mma.d:.. (print, ~or stamp commissioned Notary Public) Personally known_ or Produced Identification (dleck one) Type of Identification Produced: John Otto Sutton,. Bar No Jamerson & SuttoD ll.p 2655 S. LeJeune Rd Coral Gables, FL (305) COIUISel for Defendants ::~GENERAL Assistant Attorney General The Capjtol- PL-01 Tallahassee, FL (850) Dated: I '" tot I,., By;~ Richard Lawson Director, Consumer Protection Division Depanment of Legal Affairs Office Of The Attorney General The Capitol- PLOl Tallahassee. FL (850) Dated: Lf /2 t!j 11 J 7

8 ' STATE OF CAUFORNIA COUNTY OF t-n ~ lc, BEFORE ME, an officer duly authorized to take acknowledgments in the ~te of California, ATSUKO ZAMA formerly known as ATSUICO CANNaLA, personally appeared, individually, and as manater of MDT PARTS EQUIPMENT, LLC. She acknowledged before me that she executed the foregoing instrument for the purposes therein stated on the Y day of A.111 c :I 2014 Subscn"bed to before me this _Lday of_,_)~p::;.r:...:.:.;...f (Print, type, or stamp commissioned Notary Public Personally known.or Produced Identification C' (check one) Type of Identification Produced C. A ~ '- ~ F S'" k \ o \ '1 S:

9 I 117[= SO ORDERED. Approved and Entered in Cham.bem in Leon County, Florida this f. ~y of '2014 8