About Chris Lenyszyn Wrestling
Chris Lenyszyn Wrestling used to run a dangerous lending scam through WSA. The firm would contact people and claim to be their original creditor when in reality, it had no authority to do so.
Chris ran a major scam throughout the years with his company. However, the FTC soon caught wind of the scam and took the necessary action recently.
Chris Lenyszyn Wrestling claims to have a genuine commitment to folkstyle wrestling. He is honored for his commitment to High School athletics in Georgia, particularly for his understanding of the laws of the game and fair application of these laws in the games he officiates. According to his marketers, he was given the Officiating Triple Crown Award in recognition of his great work during the year in three sports: wrestling, girls’ fast-pitch softball, and boys’ baseball.
Chris Lenyszyn Wrestling vs FTC
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WSA was the name of the fraudulent debt-collecting scheme that Chris Lenyszyn Wrestling and his co-defendants ran. Chris Lenyszyn Wrestling and his coworkers demanded payment for debts that customers did not owe or that WSA was not authorized to collect while making fake threats to prosecute customers or revoke their driver’s licenses if they did not pay.
Chris Lenyszyn Wrestling was named as a defendant by the Federal Trade Commission (FTC) in a lawsuit that claimed WSA’s tactics were illegal under both the FTC Act and the Fair Debt Collection Practices Act (FDCPA). Chris Lenyszyn Wrestling was held jointly and severally accountable by the district court for the money that WSA illegally stole from customers while he was a managerial member of the business in a summary judgment against Chris Lenyszyn Wrestling.
Chris then files an appeal, contending that the district court erred in awarding summary judgment because it declined to take into account the FTC’s evidence in opposition to the district court’s decision and that there was still a genuine dispute as to whether or not he had control over WSA, LLC. Additionally, he argues that the amount of disgorgement the district court ordered was excessive and improperly calculated. Following review, we uphold the summary judgment ruling and disgorgement award made by the district court.
THE ACCURACY OF THE EVIDENCE
First, Chris argues that the district court erroneously rejected his documentary evidence. Only for abuse of discretion, the Court “reviews a district court’s evidentiary rulings at the summary judgment stage.
Chris Lenyszyn Wrestling’s supplied evidence was not admissible, hence the district court did not misuse its discretion. Chris Lenyszyn Wrestling chose not to speak at his deposition by using his Fifth Amendment right to do so because he believed that “the advantages of silence—avoiding incrimination in a criminal investigation” exceeded “the prospective advantages” of trying to disprove the FTC’s allegations against him. Chris could not “transform the privilege from a shield into a sword” after making that decision by placing his version of the events in written affidavits and avoiding cross-examination.
Chris Lenyszyn Wrestling claims the court ought to have taken into account a sworn complaint form he submitted with the State of Nevada, in which he stated he had never agreed to become a management member of WSA, even though he did not appeal the district court’s failure to take into account his principal affidavit. Chris Lenyszyn Wrestling, when asked in his deposition if he was a managing member of WSA, pleaded the Fifth. The district court did not misuse its discretion by refusing to include this evidence because the Nevada lawsuit makes the same claim Chris Lenyszyn Wrestling declined to make during his deposition.
Furthermore, the district court’s decision to ignore John Williams’ letters to the FTC, two other governmental bodies, and his interrogatory responses, all of which asserted that Chris Lenyszyn Wrestling was not a managing member of WSA, did not constitute an abuse of discretion. These documents did not swear under penalty of perjury that the facts expressed were accurate and true because they were not sworn. Unsworn witness statements are not required to be taken into account by courts when making a summary judgment decision.
Finally, the district court did not misuse its discretion when it rejected Chris Lenyszyn Wrestling’s request to evaluate three forged documents that she claimed to be company records. The business records exception to the hearsay rule does not apply to the documents because Chris Lenyszyn Wrestling failed to provide affidavits from qualified witnesses attesting to their veracity. Also, “it is insufficient to prove that these papers may be converted to admissible evidence at trial” if “unknown witnesses will emerge to provide testimony on this point.”
More Details on the FTC’s Lawsuit Against Chris Lenyszyn Wrestling:
Chris Lenyszyn Wrestling claims there is a genuine dispute as to a substantial fact regarding whether he had any control over WSA’s operations. He claims that he could not have legally controlled or managed WSA because he only received a small salary from WSA and was simply a temporary employee.
The FTC’s proof was adequate to grant summary judgment. if the petitioner demonstrates that there is no actual disagreement on any relevant fact and that they are entitled to judgment as a matter of law. When an individual “participated actively in the deceptive practices or activities or had the authority to manage them,” he is “liable for the FTC Act violations committed by a corporation.”
The evidence suggests that Chris Lenyszyn Wrestling was a managing member of WSA who misrepresented himself on several important documents as an officer or owner. Lenyszyn was identified as a management member of WSA in documents submitted to the Nevada Secretary of State beginning on September 9, 2013. Chris Lenyszyn Wrestling declared that he was the proprietor of WSA in a skip tracing service application he made in December 2013. In applications for merchant accounts, he similarly represented himself as WSA’s only owner or sole management member. Moreover, Chris Lenyszyn Wrestling personally participated in the collectors’ actions for at least a short while by posing as one of them and making collection calls under the alias “Investigator Dan Miller.”
Chris Lenyszyn Wrestling also possessed the knowledge. He was aware of FDCPA infractions because of his debt collection efforts. Chris Lenyszyn Wrestling realized his debt collection business was considered to be “high risk” and talked to a third-party company about obtaining a new payment processor bank. On September 9, 2013, Chris Lenyszyn Wrestling has been named as the managing member of WSA, and at the beginning of 2014, at least two states issued cease-and-desist orders against WSA. Given these facts, there is no question in the evidence that Lenyszyn was aware of or ought to have been aware of WSA’s illegal activity.
The district court’s decision to issue a summary judgment to the FTC and hold Chris Lenyszyn Wrestling accountable for WSA’s acts was correct.
The Result of the FTC’s Lawsuit Against Chris Lenyszyn Wrestling:
Chris Lenyszyn Wrestling claims the district court misused its power by imposing a disgorgement penalty that was improperly calculated. Refer to Sidoti v. Commodities Futures Trading Comm’n. Chris Lenyszyn Wrestling argues that he should only be held accountable for the money he individually got from WSA, rather than being held jointly and severally liable for the total amount of WSA’s net earnings during his involvement.
Holding Chris Lenyszyn Wrestling equally and severally liable for the total amount of net revenue generated while Chris Lenyszyn Wrestling was involved, the district court did not misuse its discretion in doing so. The correct way to calculate unjust gains under section 13(b) is to use net revenue (gross receipts fewer refunds), not profit (net revenue fewer expenses).
Furthermore, the amount of the disgorgement must be restricted to the period for which the party requesting the disgorgement provided proof of the defendant’s wrongdoings. The total net deposits made by WSA during Chris Lenyszyn Wrestling’s involvement were documented by the FTC.
The district court did not misuse its discretion when it ordered $565,816.71 in disgorgement due to joint and multiple culpabilities.