LOS ANGELES (CN) – A federal judge granted the FTC’s request to cite an Internet-based check service for contempt of court. Neovi and its operators violated a 2009 order telling them to stop running their business that lets people create and e-mail checks without verification of users’ identities or their authority to draw funds on the accounts they use, the FTC said. It seeks daily fines and imprisonment if it doesn’t stop.
The 2009 order covered three of the contempt defendants, Thomas Villwock, James M. Danforth, and G7 Productivity Systems, the FTC said in a statement announcing its latest complaint. The men also run a Web site they call FreeQuickWire.com, which does the same thing, which the FTC also sued, along with iProlog Corp.
A federal judge ordered Villwock and Danforth to show up on Feb. 16, 2010, and explain why they should not be held in contempt. The previous order directed them to pay $535,358 in their illegal profits, the FTC said.