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1 I STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: Case No. L WHEELS NEXT, INC., D/B/A AUTOMOTORING, INC., AUTOMOTORING WEST, INC., AUTOMOTORING HOLDINGS, INC., RIMZOOM.COM, INC., WHEEL OUTLET OF AMERICA, INC., VICTOR DE YURRE, as Owner/Director, and ODAL YS MON a/k/a ODAL YS DELGADO, as President/Director. Respondents ~/ ASSURANCE OF VOLUNTARY COMPLIANCE l. PURSUANT to the provisions of Chapter 501, Part II of the Florida Statutes, Florida's Deceptive and Unfair Trade Practices Act, the Office Of The Attorney General, Department Of Legal Affairs (hereinafter referred to as the "Department"), caused an investigation (the "Investigation") to be made into certain acts and practices of Wheels Next, Inc., also doing business as Automotoring, Inc., Automotoring West, Inc., Automotoring Holdings, Inc., Rimzoom.com, Inc., Wheel Outlet of America, Inc., Victor De Yurre and Odalys Mon a/k/a Odalys Delgado (collectively hereinafter, "Respondents" or "Wheels Next"). 2. Respondent Wheels Next, Inc. is an inactive Florida corporation with its principal place of business previously registered as 1501 NW 82"d A venue, Dora!, Florida Wheels Next, Inc. al so did business under the following names: Automotoring, Inc., Automotoring West, Inc., Automotoring Holdings, Inc., Rimzoom.com, lnc., and Wheel Outlet of America, Inc. Automotoring, West Inc. is an inactive Florida corporation with its principal place of business previously registered as 150 I NW 82"d Avenue, Miami, Florida Respondents Initials: ~~

2 Automotoring Holdings, Inc. and Automotoring, Inc. are inactive Florida corporations with their principal place of business previously registered as 6780 Coral Way, Miami, FL Respondent Wheel Outlet of America, Inc. is an inactive Florida corporation with its principal place of business previously registered as A S. Dixie Highway, Miami, FL Respondent Rimzoom.com, Inc. is an inactive Florida corporation with its principal place of business previously registered as I 000 Brickell Avenue, Suite #640, Miami, FL, Respondent Victor De Yurre is an individual residing at 230 SW 62"d Avenue, Miami, FL and was the owner and Director of Wheels Next, Inc., Automotoring West, Inc., and Automotoring Holdings, Inc. and the owner and President of Rimzoom.com, Automotoring, Inc., and the former President/Director of Wheel Outlet of America, Inc. and had authority to control the day to day activity at Wheels Next, Inc. 4. Respondent Odalys Man a/k/a Odalys Delgado is an individual residing at 230 SW 62"d Avenue, Miami, FL and was the President/Director of Wheel Outlet of America, Inc. and had authority and control of the day to day activity at Wheels Next, Inc. 5. Respondents are prepared to enter into this Assurance of Voluntary Compliance (hereafter referred to as the "A VC") without an admission that Respondents violated Florida's Deceptive and Unfair Trade Practices Act or any other law and solely for the purpose of resolution of this matter with the Department. 6. Pursuant to Section (6), Florida Statutes (2013), the Department agrees to accept this A VC in termination of its Investigation as to Respondents solely as to the acts and practices that were the subject of the investigation. 7. The obligations imposed by this A VC are continuing in nature and shall apply to and be binding upon Respondents, any existing businesses, and any newly formed business, 2 Initials:

3 ' whether Respondents are acting individually or acting through their principals, officers, directors, shareholders, representatives, employees, agents, independent contractors, successors and assigns, or acting through any limited liability company, corporation or other business entity whose acts, practices or policies are directed, formulated, or controlled by Respondents. STIPULATED FACTS 8. The Department and Respondents hereby agree and stipulate to the following: a. During the period beginning at least January 1, 2009 through August 2012, Respondents engaged in the business of providing wheels, rims, and tires to consumers in Florida and elsewhere through internet sales, telephone sales, and in store sales. b. Respondents misrepresented through their website that Respondents had over 50,000 wheels, rims, and tires in stock from over 50 different brands. Respondents inventory consisted primarily of returned items and defective prod~1 c ts. c. Respondents misrepresented through their website that Wheels Next, Inc. was a Better Business Bureau (BBB) member and that Wheels Next, Inc. was awarded for the 5 1 h year in a row the BBB's highest ranking for an automotive wheel and tire retailer and that Wheels Next, Inc. had a satisfactory record and had been responsive to any matters brought to its attention by the BBB. In fact, the BBB did not issue any awards to Wheels Next, Inc. Further, Wheels Next, Inc. lost its accreditation with the BBB, yet it continued to represent to consumers in the State of Florida and elsewhere that Wheels Next, Inc. was a BBB member. In October of20 11 the BBB sent Wheels Next letters requesting Wheels Next, Inc. remove all trademark BBB 3 Initials: ~ Cdn

4 logo's and any reference of the BBB from Respondents' website; Respondents failed to remove the BBB misrepresentations. d. Respondents misrepresented through their website that Wheels Next had over 90 employees throughout its nationwide facilities and that the entire team was given detailed instruction on all the latest in applications for new custom wheels and rims, tires and vehicles. In fact, Respondents did not employ 90 employees and the employees trained themselves. e. Respondents misrepresented through their website that Wheels Next would provide refunds within 7 to 10 business days. In fact, Respondents routinely failed to provide consumer refunds within 7 to 10 business days and failed to provide any refunds to hundreds of consumers. f. Respondents made misrepresentations to credit card processors including but not limited to misrepresentations by Odalys Mon alk/a Odalys Delgado to Credomatic of Florida, Inc. ("Credomatic") that Credomatic was Respondents only credit card processor when in fact, Respondents were also processing through American Credit Card Processing Corporation ("ACCPC"); misrepresentations that Respondents had taken a break from processing with Credomatic to update their website inventory when in fact, Respondents continued to process through ACCPC and never updated website inventory; and misrepresentations to Credomatic that Respondents had hired three new Customer Service employees and trained them on new measures to avoid issues escalating into chargp.backs when in fact Respondents provided no such training to employees. 4 Initials:~~

5 . ' g. Respondents Victor DeYurre and Odalys Mon a/k/a Odalys Delgado were direct participants in the misrepresentations made by Respondents and had authority to control the day to day business activities of Wheels Next. h. Respondents represent and warrant that they have voluntarily ceased engaging in the wheel, tire, rim and e-commerce industry with consumers in the State of Florida and elsewhere and will not engage in any wheel, tire, rim ore-commerce business anywhere in the future. 1. Respondents allege and have submitted financial affidavits showing they do not have the financial ability to pay full consumer restitution. j. Respondent Victor De Yurre alleges that the one hundred thousand dollar ($100,000.00) cash payment he gave to Respondent Odalys Delgado in August 2012 came from repayment of a loan provided by Monty Trainer and did not in any way originate from any proceeds or money made by Respondents. Respondent Victor De Yurre alleges that the one hundred thousand dollars he provided to Odalys Delgado was initially to be used as an investment into the property where Victor De Yurre and Odalys Delgado reside in located at 230 SW 62nd Avenue, Miami, FL which is owned by Odalys Mon a/k/a Odalys Delgado; however, Respondents used the money for living expenses and no portion of the $100, remains in their possession. 9. The Department investigated allegations that Respondents committed unfair or deceptive acts toward consumers in the State of Florida and elsewhere in connection with their rim and tire sales by misrepresenting to consumers that Respondents were accredited by the Better Business Bureau ("BBB") and the recipients of nonexistent BBB awards, misrepresenting that the Respondents had 5 Initials:~

6 a full inventory of all available products when in fact, the Respondents' only inventory consisted of returned and defective products; misrepresenting the number of individuals Respondents employed; misrepresenting the status of orders and failing to inform customers about the status of their orders for months at a time; accepting payment for orders but, never shipping the orders, failing to inform customers at the point of purchase whether the ordered products were out of stock or discontinued; misrepresenting to customers that a refund had been approved and was being processed; and failing to provide consumers with the products advertised and paid for. I 0. This A VC is based upon the stipulated facts set forth herein. The Department shall not be estopped from taking further action in this matter should the facts described herein be shown to be incorrect in any material way or should Respondents not comply with this A VC in full. The parties agree that this A VC has been entered into based on the truthfulness of the information provided by Respondents. TERMS 11. Respondents, including their representatives, agents, employees, successors, assigns, independent contractors and/or any other person who acts under, by, through, or on behalf of Respondents, directly or indirectly, or through any corporate or other device shall: a. Comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 50 I, Part II, Florida Statutes; b. Refrain from conducting, participating or engaging directly or indirectly in any wheel, tire, rim, automotive, or e-commerce business in Florida and throughout the United States, including but not limited to, owning, working for, consulting for, directing, managing or receiving any profits or any benefits from any wheel, tire, rim, automotive or e-commerce business or industry; 6 Initials:~

7 c. Cease making any misrepresentations including any misrepresentations made online, through websites, through print advertisement or marketing material or over the telephone regarding in stock inventory, unless Respondents actually have the full amount of all inventory represented to consumers including all ofthe amount and brands represented to consumers in Respondents' possession and available at the time the representation is made to consumers; d. Cease charging consumers for goods ordered prior to shipment of the goods ordered; e. Cease making any misrepresentations that any business is a BBB member, is BBB accredited or approved, or has received a BBB award or has a satisfactory record; f. Cease making any misrepresentations regarding number of employees, training of employees or location of any business; g. Cease making any misrepresentations to credit card processors including misrepresentations regarding the number of credit card processors being used by Respondents, the amount and quality of inventory maintained by Respondents, the number or training of employees of Respondents or the return rate, chargeback rate or refunds issued by Respondents; h. Ensure that any representations made to consumers including but not limited to representations made online, through websites, through print advertisements or marketing materials or over the telephone are true and accurate at all times the representations are made; i. Ensure that consumers receive the product that was advertised and paid for and provide a timely mechanism for consumers to return products and receive a refund; j. Provide refunds within fourteen (14) calendar days from the date the consumer requests a refund and Clearly and Conspicuously (i.e. any statement, representation, claim, disclosure or material term being conveyed is presented in a way that a consumer will notice and understand) identify the procedure and customer support contact information for consumers to request and receive a full refund and ensure that any and all employees, telemarketers or independent contractors utilized by Respondents comply with this provision; k. Maintain a customer support number, mail address and address for consumers to file a complaint and ensure all consumer complaints are responded to within seven (7) days and ensure that any and all employees, telemarketers or independent contractors utilized by Respondents comply with this provision for any business operating after the Effective Date of this A VC; and I. Maintain reasonable and customary supporting documentation to substantiate any customer testimonial utilized or any representations made by Respondents in Respondents advertising or marketing materials. 7 Initials:.IDiq-~

8 BUSINESS RECORDS 12. Respondents, for five (5) years from and after the Effective Date of this A VC, shall: (a) preserve and retain all relevant business and financial records within Respondents possession relating to the acts and practices at issue in this A VC and other information reasonably sufficient to establish compliance with the provisions of this AVC and (b) provide reasonable access to such documents and information to the Department upon request. Further, Respondents shall provide individual and corporate Financial Affidavits to the Department annually including a copy of any individual and corporate income tax returns filed with the IRS for a period of five years from the Effective Date of this AVC or until the sixty thousand dollars in restitution contained in Paragraph 16 of this AVC has been paid in full. CUSTOMER RECORDS 13. Any personal or financial information of consumers and customers, in the custody, comrol or possession of Respondents shall be securely stored in such a manner as to reasonably protect against inadvertent disclosure of consumer information. Respondents, including any representatives, agents, employees, successors, and assigns within Respondents' direction and control, shall not, directly or indirectly, market, sell, share or otherwise disclose the name, contact information, or financial information of any consumer or customer in the care, custody or control of Respondents except as specifically allowed under State and Federal law. WRITTEN NOTICE 14. Respondents shall make the terms and conditions of this AVC known to any managers, members, officers, directors, employees, agents, independent contractors, telemarketers, and/or any other persons that are substantially affected by this A VC and are 8 Initials: \Jl ~

9 involved in the businesses, projects and activities of Respondents or anyone else acting for or on behalf of Respondents by providing written notice of the terms of this A VC. The obligations imposed by this A VC are continuing in nature and shall apply to Respondents' successors and assigns as any and all new officers, employees, agents, representatives and/or any other persons who become engaged in the business or activities of Respondents or any new business entities created by Respondents or any other business or activities Respondent Victor De Yurre or Respondent Odalys Mon alk/a Odalys Delgado are currently operating or subsequently engage in or receive any income from. 15. Respondents 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 a method of avoiding the obligations and terms and conditions set forth in this A VC. CONSUMER RESTITUTION 16. The consumers listed in the consumer restitution spreadsheet compiled by the Parties and attached as Exhibit A have filed complaints relating directly or indirectly to Respondents with the Department, the Better Business Bureau, or another entity (the "prior complaints" or "prior complainants"). These complaints total three hundred twenty eight thousand two hundred seventy two dollars and seventy eight cents ($328, ). In addition, credit card processor ACCPC is owed at least five hundred sixty thousand one hundred thirteen dollars and fifty nine cents ($560, ). Further, credit card processor Credomatic is owed at least two hundred eight thousand eight hundred eighty five dollars and fifty one cents ($208,885.51). The Respondents stipulate that the total amount of consumer restitution due is at least one million ninety seven thousand, two hundred seventy one dollars and eighty eight cents ($1,097,271.88). Respondents allege and it has been verified via financial affidavits and 9 Initials: l'l+ ~

10 ,. investigation that respondents do not have the ability to make full restitution. Based upon the Stipulated Facts, Respondents' Financial Affidavits attached as Composite Exhibit B and Respondents' allegations that they do not have the financial ability to pay to make full restitution the Department is willing to accept sixty thousand dollars from the Respondents jointly and severally to be paid over the next five years at the rate of one thousand dollars per month payable to the Department on the fifteenth (15th) of each month,with a five (5) day grace period. The one thousand dollar monthly payment shall be made by certified or cashier's check, payable to the Department of Legal Affairs Escrow Fund, and shall be sent to the attention of Assistant Attorney General Ryann Flack, Office of the Attorney General, Consumer Protection Division, 444 Brickell Avenue, 6th Floor, Miami, FL Upon receipt, the checks shall be deposited into the Department of Legal Affairs Escrow Fund, in accordance with Section (I), Florida Statutes. The manner in which the funds are to be distributed shall be within the sole discretion and/or reasonable judgment of the Department. The funds may be used to defray the cost of restitution distribution, attorneys' fees and costs incurred in enforcing this A VC, or as fees and costs associated with ongoing and future enforcements initiative pursuant to Chapter 50 I, Part II, Florida Statutes. The Department shall not be stopped from taking further action in this matter should the Financial Affidavits, Stipulated Facts, or representations made by Respondents regarding their inability to pay full restitution be shown to be inaccurate in any material way. 17. Respondents Victor De Yurre and Odalys Delgado alkla Odalys Mon agree to submit individual and corporate Sworn Financial Affidavits to the Department annually for the next five years. The individual and corporate Sworn Financial Affidavits shall be sent to the Department by December 31st of each year through and including December 31, 2019 and shall 10 Initials: VI>~

11 .. include copits of any individual and corporate income tax return filed and all other supporting documentation required to substantiate the Sworn Financial Affidavit. The yearly Sworn Financial Affidavits shall be sent to the attention of Assistant Attorney General Ryann Flack, Office of the Attorney General, Consumer Protection Division, 444 Brickell A venue, 6 1 h Floor, Miami, FL It is hereby agreed by the parties that any failure to comply with the terms and conditions of this A VC, including but not limited to, failure to make full payment of the sixty thousand dollars or failure to provide yearly Sworn individual and corporate Financial Affidavits for five years from the Effective Date of this A VC is by statute prima facie evidence of a violation of Chapter 501, Part II, Florida Statutes, and will subject the violating party to a consent judgment against such party in the amount of three million six hundred thousand dollars ($3,600,000.00) in civil penalties (360 consumer complaints multiplied by $10, per transaction), as well as attorney's fees and costs and any other legal or equitable relief a court of competent jurisdiction may determine is appropriate. Subject to Respondents' full, complete, and timely compliance with all the terms of this A VC, and based on the financial condition of the Respondents, the Department will waive pursuant to this settlement and in consideration of Respondents' full performance hereunder the remaining restitution and civil penalties that would otherwise be due for the acts and practices at issue under FDUPT A. FEES AND COSTS 19. Subject to Respondents' full, complete, and timely compliance with all the terms of this A VC, in consideration of the financial condition of Respondents and Respondents inability to pay fees and costs verified via sworn financial affidavits and investigation, the Department is waiving pursuant to this settlement and in consideration of Respondents' full II Initials: ~ g,

12 .. ' c., performance hereunder the fees and costs that would otherwise be due for the acts and practices at issue under FDUPT A. The total fees and costs that would otherwise be due, but for Respondents' full and complete compliance with this A VC, is stipulated to be at least $159, CIVIL PENAL TIES 20. Subject to Respondents full complete and timely compliance with the terms of this A VC including full payment of sixty thousand dollars to the Department and provision of individual and corporate sworn financial statements with applicable supporting documentation including but not limited to individual and corporate tax returns for the next five years, the Department will waive pursuant to this settlement and in consideration of the Respondents performance hereunder the civil penalties that would otherwise be due for the acts and practices at issue under Sections or , Florida Statutes, which is stipulated by the parties to be at least three million six hundred thousand dollars ($3,600,000.00) 21.. The original A VC bearing the notarized signatures of Respondents and the payment(s) due hereunder will be delivered to the attention of Assistant Attorney General Ryann Flack, Office of Attorney General, Consumer Protection Division, 444 Brickell A venue, 6 1 h Floor, Miami, FL FUTURE VIOLATIONS 22. It is hereby agreed by the parties that any failure to comply with the terms and conditions of this A VC by Respondents is by statute prima facie evidence of a violation of Chapter 50 I, Part II, Florida Statutes, and will subject Respondents and any other legally responsible person to any and all civil penalties and sanctions authorized by law, including attorneys' fees and costs. In the event that a court of competent jurisdiction makes a 12 Initials: ~ 9n

13 '... determination that a violation of any condition of this A VC has occurred, then Respondents shall be liable for a consent judgment of three million six hundred thousand dollars in civil penalties, as well as attorneys' fees and costs and any other legal or equitable relief the court may determine appropriate. EFFECTIVE DATE 23. This A VC shall be subject to acceptance by the Department. Acceptance by the Department shall be established by the signature of the Director, Consumer Protection Division, Department of Legal Affairs, Office of the Attorney General. This A VC shall become effective on the "Effective Date," which shall be the date on which the Director accepts and executes this AVC. The Department will notify Respondents of the occurrence of the Effective Date and shall provide Respondents with a fully executed copy of this A VC within thirty (30) calendar days of the Effective Date. The receipt by the Department of any monies pursuant to the A VC does not constitute acceptance by the Department, and any monies received shall be returned to Respondents if this A VC is not accepted and executed by the Department. MISCELLANEOUS 24. It is further agreed that in.pdf format and facsimile copies of signatures and notary seals may be accepted as original for the purposes of establishing the existence of this A VC, and this A VC may be executed in counterparts, the compilation of which shall constitute the full and final agreement of the Parties. 25. Notice to any of the parties to this A VC as may be required shall made by overnight delivery or certified mail at the addresses set forth below unless any party notifies the other parties in writing of another address to which notices should be provided. To Respondents: 13 Initials:~

14 Michael Band, Esquire 1200 Alfred I. DuPont Building 169 East Flagler Street Miami, Florida To the Department: Ryann Flack, Assistant Attorney General Consumer Protection Division Office of the Attorney General 444 Brickell A venue, 6th Floor Miami, Florida Nothing in this A VC is to be construed as a waiver of any private rights of any person or release of any private rights, causes of action, or remedies of any person against Respondents or any other person or entity. 27. It is a condition of each of the Department's obligations under this A VC that Respondents have fully and timely performed all of Respondents' obligations previously due under this A VC. 28. This A VC is the final, complete, and exclusive statement of the parties' agreement on the matters contained in this A VC, and it supersedes and replaces all previous negotiations and agreements, including the prior Assurance of Voluntary Compliance referred to above. Other than any representation expressly stated in this A VC, the parties have not made any representations or warranties to each other, and neither party's decision to enter into this AVC is based upon any statements by the other party outside of those in this A VC. No change or modification of this A VC shall be valid unless in writing and signed by both Parties. 29. It is further agreed that the parties jointly participated in the negotiation of the terms of this A VC. No provision of this A VC shall be construed for or against any party on the grounds that one party had more control over establishing the terms of this A VC than another. 14 Initials: VV~

15 ' By my signature, I hereby affirm that I have authority to execute this A VC on behalf of the party indicated and, to the extent I am acting in a representative capacity, I am acting within the scope of my authority as a corporate or governmental representative, and that by my signature I am binding the party/parties indicated to the terms and conditions of this AVC. SIGNATURES APPEAR ON THE FOLLOWING PAGE(S) 15 Initials:~

16 By: By: Victor De STATE OF FLORIDA ) ) ss: COUNTY OF DADE ) BEFORE ME, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared Victor De Yurre, who produced as identification. He acknowledged before me that he executed the foregoing instrument for the purposes therein stated on the & day of.s::..-il:fi~k_, :--#til':~~~-:. ARACELI BETANCOURT ~;.: ~-~} MY COMMISSION #EE !,~,.- EXPIRES March 'li''' _(41l7) 3!l8-<l153 FloriclaNotaryS<lrvK:e.com (print, type, or stamp commissioned Notary Public) Personally known_j or Produced Identification (check one) Type of Identification Produced: 16 Initials:

17 By: Odalys Mon a!kl~ Odalys Delgado, as President/Director,, I I Of Wheel Outlet of erica, Inc. By: \ STATE OF FLORIDA ) ) ss: COUNTY OF DADE ) BEFORE ME, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared Odalys Mon a/k/a Odalys Delgado, who produced as identification. She acknowledged before me that she executed the foregoing instrument for the purposes therein stated on the _bq_ day of Sc :li'f'l' Subscribed to before me thi s~ day of ~sf ftct' \l~, r:: -~:7:: ~..:7.~~-~~:->-.. _A_RA_C-EL_I_B_E_T_AN_C_O_U_R_T_, A,~ ' -~ ~~~; MYCOMMISSION#EE NOTARY PUBLIC '~*fit EXPIRES March (407) 39~153 FloridaNotaoySGlvoce.eom (print, type, or stamp commissioned Notary Public) Personally known '{:._ or Produced Identification (check one) -r Type ofldentification Produced: 17 Initials:~

18 . ''. c Michael. ~an~. ~.~ Alfred I. DuPont Building 169 East Flagler Street Miami, Florida Telephone: (305) Facsimile: (305) Dated: ~j W kj I cj 18 Initials: ~ g,

19 OFFICE OF THE ATTORNEY GENERAL By: Richard P. Lawson Director, Consumer Protection Division Department oflegal Affairs OFFICE OF THE ATTORNEY GENERAL I 07 W Gaines Street Tallahassee, FL (850) Dated: By: Ryann Flack Florida Bar No.: Assistant Attorney General 444 Brickell A venue, 6th Floor Miami, FL (305) ext. 562 (305) facsimile Dated: Initials: ~ ~

20 By: Dated: By: Dated: "h Director, Consumer Protection Division Department of Legal Affairs OFFICE OF THE ATTORNEY GENERAL 1 07 W Gaines Street Tallahassee, FL (850) '~0/JL( -----? ~Ck"----- /--1 =----- Florida Bar No.: Assistant Attorney General 444 Brickell A venue, 6 1 h Floor Miami, FL (305) ext. 562 (305) facsimile j 0 / :1-- } I lj L 19 Initials: ---