electronically filed - st louis county - february 05, 2015...

IN THE TWENTY-FIRST CIRCUIT COURTST. LOUIS COUNTY

STATE OF MISSOURI

STATE OF MISSOURI, ex rel. CHRISK~STER

v.

MARTIN A. WEBB, aka BUTCHWEBB, PAYDAY FINANCIAL, L.L.C.cUb/a LAKOTA CASH dlb/a BIG SKYCASH, 24-7 CASH DIRECT, L.L.C.,GREAT SKY FINANCE, L.L.C.,FINANCIAL SOLUTIONS, L.L.C.,d/b/a LAKOTA CASH, HIGHCOUNTRY VENTURES, L.L.C.,MANAGEMENT SYSTEMS, L.L.C.,d/b/a GSKY, RED RIVER VENTURES,L.L.C., RED STONE FINANCIAL,L.L.C., WESTERN CAPITAL, L.L.C.,and WESTERN SKY FINANCIAL,L.L.C.

CASE NO. I 1 SL-CC01680-1DIVISION 13

CONSENT JUDGMENT ANDPERMANENT INJUNCTIONREGARDING LOANS ORIGINATEDBY NAMED DEFENDANTS

CONSENT JUDGMENT AND PERMANENT INJUNCTION REGARDINGLOANS ORIGINATED BY NAMED DEFENDANTS

COMES NOW, The ATTORNEY GENERAL OF THE STATE OF MISSOiJRI,

(hereinafter "the ATTORNEY GENERAL") and MARTIN A. WEBB, a/k/a BUTCH

WEBB, PAYDAY FINANCIAL, L.L.C. d/b/a LAKOTA CASH d/b/a BIG SKY CASH,

24-7 CASH DIRECT, L.L.C., GREAT SKY FINANCE, L.L.C., FINANCIAL

SOLUTIONS, L.L.C., d/b/a LAKOTA CASH, HIGH COiJNTRY VENTiJRES, L.L.C.,

MANAGEMENT SYSTEMS, L.L.C., d/b/a GSKY, RED RIVER VENTURES, L.L.C.,

RED STONE FINANCIAL, L.L.C., WESTERN CAPITAL, L.L.C., and WESTERN

SKY FINANCIAL, L.L.C., (collectively referred to hereafter as "NAMED

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DEFENDANTS"), to submit this Consent Judgment and Permanent Injunction (the

"Consent Judgment"). The Parties agree and stipulate as follows:

1. Named Defendants are Limited Liability Companies organized under the

laws of South Dakota and located on the Cheyenne River Indian Reservation, and

MARTIN A. WEBB, a member or the sole member of those Limited Liability

Companies.

2. One or more Named Defendants solicited, made or serviced loans to

Missouri residents.

3. Named Defendants are not licensed to conduct the business of lending in

the State of Missouri, though Named Defendants contend that no such license is

required.

4. The Parties desire to compromise and settle the instant controversy upon

the following terms and conditions:

JURISDICTION AND VENUE

5. The Attorney General contends that this Court is the proper Court of venue

and jurisdiction under Article V, § 14 Mo. Const. and under the Merchandising

Practices Act, Chapter 407 RSMo' and has jurisdiction over the parties and the subject

matter of this action. This Consent Judgment is not, however, a waiver of any

~ All references are to Missouri Revised Statutes 2012, unless otherwise

noted. Where a citation gives a supplement year—e.g. "(Supp.2013)"—the

citation is to the version of the statute that appears in the corresponding

supplementary version of the Missouri Revised Statutes, and, where

relevant, to identical versions published in previous supplements.

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jurisdictional defense Named Defendants have asserted or may assert in the future,

including that the lending activity conducted by Named Defendants occurred on the

Cheyenne River Indian Reservation and is subject solely to the exclusive laws and

jurisdiction of the Cheyenne River Sioux Tribe. Named Defendants consent to the

jurisdiction of this Court solely for the purposes of entering into and enforcing this

Consent Judgment, and for no other purposes.

STIPULATION AND ORDERS

6. This Consent Judgment shall apply to all Named Defendants, their

officers, agents, employees, sales persons, contractors, representatives, assigns,

successors in interest and any other individuals acting on their behalf or at their

direction. All of the foregoing sha11 be encompassed herein by the use of the term

"Defendants."

7. For the purposes of this Consent Judgment, the "Effective Date" shall

mean the date on which this Consent Judgment is so-ordered by the Court.

8. IT YS HEREBY ORDERED, ADJUDGED AND DECREED that

Martin A. Webb, a/k/a Butch Webb, Payday Financial, L.L.C. d1b/a Lakota Cash d/b/a

Big Sky Cash, 24-7 Cash Direct, L.L.C., Great Sky Finance, L.L.C., Financial Solutions,

L.L.C., d/b/a Lakota Cash, High Country Ventures, L.L.C., Management Systems,

L.L.C., d/b/a GSKY, Red River Ventures, L.L.C., Red Stone Financial, L.L.C., Western

Capital, L.L.C., and Western Sky Financial, L.L.C. shall permanently cease and desist

from making, servicing, or collecting any loans to made to Missouri residents in the

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State of Missouri, over the Internet or otherwise.

9. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by

this Court that Judgment is entered for the State of Missouri against Martin

A. Webb, a/k/a Butch Webb; Payday Financial, L.L.C., d/b/a Lakota Cash d/b/a Big Sky

Cash, 24-7 Cash Direct, L.L.C.; Great Sky Finance, L.L.C.; Financial Solutions, L.L.C.,

d/b/a Lakota Cash; High Country Ventures, L.L.C.; Management Systems, L.L.C., d/b/a

GSKY; Red River Ventures, L.L.C.; Red Stone Financial, L.L.C.; Western Capital,

L.L.C.; and Western Sky Financial, L.L.C., and that they are jointly and

severally liable £or and shall collectively pay or cause payment to be made in

the amount of Two Hundred Seventy Thousand Dollars ($270,000.00) to the State of

Missouri, payable to the Merchandising Practices Restitution Fund, as restitution for

Missouri consumers who obtained loans from the Named Defendants and complained to

the Attorney General's Office prior to the effective date of this Judgment or were

charged fees in excess of what is allowed by Missouri Statutes and Regulations. The

Named Defendants will continue to cooperate with the Attorney General's Office to

supply any information requested to aid in the administration of restitution.

10. IT IS FITRTHER ORDERED, ADJUDGED AND DECREED by

this Court that Judgment is entered for the State of Missouri against Martin

A. Webb, a/k/a Butch Webb; Payday Financial, L.L.C., d/b/a Lakota Cash d/b/a Big Sky

Cash, 24-7 Cash Direct, L.L.C.; Great Sky Finance, L.L.C.; Financial Solutions, L.L.C.,

d/b/a Lakota Cash; High Country Ventures, L.L.C.; Management Systems, L.L.C., d/b/a

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GSKY; Red River Ventures, L.L.C.; Red Stone Financial, L.L.C.; Western Capital,

L.L.C.; and Western Slcy Financial, L.L.C., and that they are jointly and

severally liable for and shall collectively pay or cause payment to be made in

the amount of Thirty Thousand Dollars ($30,000.00) to the State of

Missouri, payable to the Merchandising Practices Revolving Fund, pursuant

to §§ 407.130 and 407.140.3 RSMo., to compensate the Attorney General's

Off"ice's costs of investigation and prosecution of this action and to provide

funds for consumer education and advocacy programs.

11. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by this

Court that the Named Defendants shall make the payments contained in Paragraphs 9 and

10 by cashier's check, money order, or similar instrument, and sent to the following

address:

Office of the Missouri Attorney GeneralFinancial Services DivisionAttn: Collections SpecialistP.O. Box 899Jefferson City, MO 65102

12. Named Defendants shall pay the entire amount of $300,000 within thirty

(30) days of the Effective Date.

13. No grace period for the Payment is permitted. If the Payment is not

actually received by the Attorney General on or before its due date, it shall be construed

as an event of default by the Named Defendants.

14. The Attorney General hereby releases Defendants from all civil and

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equitable claims arising from or in any way related to the loans, lending and collections

at issue in this litigation, except to the extent necessary to enforce the terms of this

Consent Judgment.


Court that the remaining balances on all loans made to borrowers with Missouri_

addresses at the time of funding still currently owned by Martin A. Webb, a/k/a Butch

Webb; Payday Financial, L.L.C., d/b/a Lakota Cash d/b/a Big Sky Cash, 24-7 Cash

Direct, L.L.C.; Great Sky Finance, L.L.C.; Financial Solutions, L.L.C., d/b/a Lakota

Cash; High Country Ventures, L.L.C.; Management Systems, L.L.C., d/b/a GSKY; Red

River Ventures, L.L.C.; Red Stone Financial, L.L.C.; Western Capital, L.L.C.; and

Western Sky Financial, L.L.C. are, as of the date of the execution of this judgment,

declared to be void and reduced to a zero balance.


Court that the remaining balances on all loans identified in Exhibit A attached hereto

(the "Covered Loans") are, as of the Effective Date, void, canceled and reduced to a

zero balance. Defendants shall (i) cease all efforts to collect on the Covered Loans; (ii)

will, within ninety days of the date of execution of this judgment, notify the credit

reporting agencies that all info~tnation reported by Defendants relating to these accounts

should be removed; (iii) will not make any future reports to credit reporting agencies;

(iv) within ninety days of the date of execution of this judgment, cause to be mailed

and/or emailed, notice to each of the consumers listed in Exhibit A that nothing further

is owed on the Covered Loan; and (v) shall not assign or sell any Covered Loan to any

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unaffiliated third party.


Court that, for all loans identified in Exhibit B, Defendants will notify the credit

reporting agencies that all information reported by Defendants relating to these accounts

should be removed.


Court that Martin A. Webb, a/k/a Butch Webb; Payday Financial, L.L.C., d/b/a Lakota

Cash d/b/a Big Sky Cash, 24-7 Cash Direct, L.L.C.; Great Sky Finance, L.L.C.;

Financial Solutions, L.L.C., d/b/a Lakota Cash; High Country Ventures, L.L.C.;

Management Systems, L.L.C., dlb/a GSKY; Red River Ventures, L.L.C.; Red Stone

Financial, L.L.C.; Western Capital, L.L.C.; and Western Sky Financial, L.L.C. shall not

make any effort to collect on any loan to a Missouri resident, including but not limited

to garnishments without Missouri court order and tribal court involvement, including

lawsuits, arbitrations, or garnishments.

19. Nothing in this Consent Judgment shall be construed as an admission by

the Named Defendants of any violation of law, liability, wrongdoing or legal or factual

issue, and this Consent Order may not be used as evidence of liability or for any other

purpose in any action against Named Defendants. Further, this Consent Judgment is not

a waiver of any jurisdictional defense that Named Defendants have asserted or may

assert, including that all lending activity conducted by Named Defendants occurred on

the Cheyenne River Indian Reservation and is subject solely to the exclusive laws and

jurisdiction of the Cheyenne River Sioux Tribe.

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20. Named Defendants and the Attorney General agree that by entering into

this Consent Judgment, the Attorney General does not concede any defense or

mitigation Named Defendants may assert.

21. Named Defendants agree that in the event of a breach of any material term

of this Consent Judgment, the Attorney General may, at his option, move the Court to

rescind the Consent Judgment and permit the Attorney General to seek any remedies

available to it at law or equity. In any subsequent proceeding, Named Defendants may

assert any jurisdictional or other defenses they would have raised or that they otherwise

may have, but Named Defendants may not make any claim for laches or statute of

limitations concerning the complaint based on the lapse of any period of time between

the Effective Date and the date on which the Court grants the Attorney General's motion

for rescission.

22. Further, Named Defendants agree that in the event of any alleged material

breach of any term of this Consent Judgment, the Attorney General may prosecute

Named Defendants for alleged violations of a valid order of the Court. Named

Defendants consent to Missouri jurisdiction for the purposes of entering into and

enforcing this Consent Judgment only and for no other purposes.

23. Named Defendants agree and understand that by entering into this Consent

Judgment, Named Defendants are waiving their right to a hearing at which Named

Defendants may present evidence in their defense, their right to a written decision on the

merits of the complaint, their rights to reconsideration and/or rehearing, appeal and/or

judicial review, and all other rights which may be accorded by the laws of the State of

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Missouri or of the United States. In the event the Consent Judgment is rescinded,

however, and the Attorney General proceeds to seek remedies against Named

Defendants, then Named Defendants shall be entitled fully to the aforementioned rights

and any others guaranteed under the law.

24. If any provision or provisions of this Consent Judgment is or are declared

invalid by a court of competent jurisdiction, the rest of this Consent Judgment shall

remain in full force and effect and shall not be affected by such declaration.

25. No changes shall be made to this Consent Judgment unless made in

writing and signed by all parties hereto.

26. This Consent Judgment embodies the entire agreement and understanding

of the parties hereto with respect to the subject matter contained herein.

27. Defendants shall not represent to any person, natural or otherwise, that the

Attorney General sanctions, endorses or approves of any methods, acts, uses, practices

or solicitations undertaken by or on behalf of Defendants.

28. The parties agree that Plaintiff will file this Consent Judgment with the

Court and will seek approval from the Court for this Consent Judgment. Named

Defendants agree that the Attorney General may obtain approval from the Court for this

Consent Judgment without providing notice to the Named Defendants and without

Named Defendants being present in court when approval is obtained.

29. The parties agree that execution of this Consent Judgment constitutes

actual notice of the terms and provisions of the Consent Judgment, and thus Named

Defendants waive any further notice of submission of this Consent Order to and filing

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fih~reaf ~vv th the court and agree to accept service cif a conforin~a copy by first class`

xnaii; and elect~anic mail to counSei Named I~efendanls...

3~: I*Tamecl Dc>feneian s fully ~uridersta~~d fhat tbey :lame the right t~ b

.:represented by legal counsel in tills rna~.er at their o~ exrpense.

31. Each sigtaatory represezxts that they have the authority to ~inrl:the prixxcipal

they represent.

32. This Consent Judgment is governed by ~he.laws o~tlie State ofM ssouri:

~~. Narned Defeziiarits have sgred and dated t;liis C~ns~ent Juclgmeiit only

after reading. and understanding all terins herein.

Dated tY~is ~ ~ y ary,~ day of January, 2015. llated this, ~~ da o:t'3anu ~Q 1

CHRIS KQSTLR WESTERN SKY FINANCIAL, L.I .C.,

Attcrneey General, State.of".Missouri

JENNER &BLOCK, LISP

Attorneys far Named DefeadautsV'.tP".O

~. .~ r

6f ~"". ~Y 4,r ~~~~~~~... 'a..•ri~ _,~•;s . y ~ -.. .. ~. cap

Katya Jestin919Th ref AvenueNevv f ork, T TY 10022x3908

Marl; n A:,VJebb, lVleinber

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Dated this .~~~' - .,day c~~f Jan~r~ry ; 205,

i'AY~,AY ~'IP41Al~dC~A~,; Y.~:L.C. dlbla

LAK(?TA ~~S.SH ~~~~~~~~BI+G SAY CASK,

M n A. Webb, ~Vlerriber

Dated. this ' ~~ da of Janua :, 20:15.~ Y ~3'

24-7 CASH DI:REC'~', L.L.C. :,

t~~r...l'vlart' .A. We b, Mein~er

Dated this day of 3anuary, 20l 5.

GREAT SKY FINANCE, L.L.C;.,

L .----'.

~~~--'

MaarE ~~~~Web Member

Date this.. ~" da cif Janua i~ ~ Y TY> 20 5.

FINr~NCTAL SOLUTI~I~S, L.L.C,,

dlb/a LAK4TA +CAS$;

~--''"`Mari` A. Webb Member

Rated this. } ~~~~ ""day of Jat~ua.ry, 2015.

HIG.EI CQTJNT~Y' VENTI7.RES; X.,L.C,

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f i

Iaated. th s~ da t~f Manua , Z~15.Y ~'3'

MAI~AG:EIVIENT SY~T.F.MS, L.LC,d/b/a GSKY,

/~,~~~ -.

Marti . A. Webb, Member

Dated this ~ day of January, ~tl I.5.

.RED RIVER VENTURES, L.L.C.,

1..: ~, ~~--~Mart ri:.A. jlVebb, lVtember

17ated this clay of January, , 201 ~,

l2ED STONE FINANCIAL, .t, L.G.,~~;

Mart' A: Webb, tuber

Dated this ay of January, 201:5.

WESTERN CAl'IT~;L, L.L.C.,

Mart A. Webb, Member

1~

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SO ORDERED:

3ucigtnent.enterecl this clay of , 2O1S:

Circuit J~idge

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5th February

Exhibit A:

Harvel Calhoun, Loan # ****1124

Charles Isaac, Loan # ***0068

Rebecca Lozano Loan # ****3799

Cathie Marshall, Loan # ****6398

Michael Munster, Loan # ***9991

Jacqueline Pennington, Loan # ***8525

Michael Phelan, Loan # ****1859

Shammara Srnith, Loan # **2789

Kebecca Wilson, Loan # ****6893

Cynthia Clark, Loan # ***3641

Ann Chapman, Loan # ****9799

Chad Hildebrand, Loan # ****5394

Heather Ames, Loan # ***8911

Pamela Brown, Loan # ***3Q02

Robert Bush, Loan #***6580

Christina Camacho-Gossage Loan #****2767

Crystal Frey, Loan # ****6002

Dorothy Hall -Sleet, Loan # ***9349

Darrell Happen- Loan # ****4982)

Sara Johnson, Loan #***1925

Therese E. Senger, Loan # ****1381

Stephanie Lynn Thornton, Loan # ***231 1

Jeffrey Whaley, Loan # ***9017

Terree Wolfert Loan # ***9973

Mary Knollhoff, Loan # ***4569

Exhibit B:

Marva Deberry, St. Louis, MO, Loan ID ***7549

Jennis Pyatt, Imperial, M0, Loan 1D

Jacqueline Thobbs, St. Louis, MO, Loan ID ***5614

Michael Wilson, St. Charles, MO, Loan ID ****0412

Pamela White Loan # ***3427

Christy Mitchell-Grider, Loan # ***1402

Douglas McDonald (Great Sky)

Margo Smith

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electronically filed - st louis county - february 05, 2015...

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