Orlando, FL (PRWEB) December 18, 2004
In a final legal victory for American Cash Flow Corporation and its parent company, DynetechÂ® Corporation, on November 8, 2004, J. Randall LaFevor, the Administrative Judge appointed by the Tennessee Secretary of State, ordered the Tennessee Securities Division to reimburse Dynetech $133,438.60 for expenses, including attorneysÂ fees, incurred in defending a Cease and Desist Order filed against them by the Securities Division on June 20, 2003. The Order became final on November 23, 2004 when the Division failed to file for appeal or reconsideration.
The first legal victory in this case came on December 17, 2003, when the DivisionÂs Petition was dismissed by the Judge. The dismissal followed the JudgeÂs determination that the Division had failed to show it was entitled to the relief sought. In doing so, the Judge ruled that the training programs offered by ACFC are not securities. The dismissal came after a two-day evidentiary hearing in which the Division presented its case. The Judge dismissed the DivisionÂs Petition without even asking ACFCÂs attorneys to present a defense.
The Division subsequently appealed the December 17, 2003 dismissal order to the Commissioner of the Tennessee Department of Commerce and Insurance.
The second legal victory in this case came on May 18, 2004, when a Final Order was entered by the Commissioner upholding the order of dismissal previously entered by the Judge and remanding the case to the Judge for consideration of DynetechÂs and American Cash Flow CorporationÂs Motion for Reimbursement of Expenses Including Reasonable AttorneysÂ Fees.
In its November 8, 2004 Order, requiring the State to reimburse Dynetech for its attorneysÂ fees and expenses, the Judge concluded that the filing of the Cease & Desist by the State was ÂunwarrantedÂ and Âa flagrantly inappropriate use of the governmentÂs power.Â
The Judge summarily ruled that the DivisionÂs action was not Âwell-grounded in fact;Â that the DivisionÂs citation Âwas not warranted by existing law, rule or regulation;Â and, that the State must Âabsorb the considerable expenses resulting from this flagrantly inappropriate use of the governmentÂs power.Â
In his scathing assessment of the State of TennesseeÂs case, Judge LaFevor wrote that the Cease & Desist Order Âwas based on false characterizations of the available facts and mistaken assumptions about the nature of the cash flow industry in general, and about the specific business enterprise engaged in by the Respondents in particular.Â ÂThose mistakes,Â he wrote, Âcould easily have been corrected during a properly-conducted investigation and analysisÂ .Â
The judgeÂs stinging rebuke to Tennessee Securities Division staff said, Âit is easy to see how the Commissioner was misledÂ by Securities Division staff, Â(and legal counsel, who apparently did little or no factual investigation and legal analysis of his own) into issuing the unwarranted Cease & Desist Order in this case.Â
The statement made by Laurence J. Pino, founder and CEO of DynetechÂ®, following the initial dismissal of the DivisionÂs case, holds true today: Â. . . we were very confident that ACFC would be vindicated on the merits. But we do regret the manner in which this case was handled. If the Department of Commerce and Insurance had picked up the phone and inquired about what ACFC does, we could have explained how we meet both the letter and spirit of Tennessee law. We could have avoided the imprudent issuance of a cease-and-desist order that put us out of business and cost us thousands of dollars. We could have avoided the expenditure of thousands of dollars in legal fees. We could have avoided the spectacle of their officials walking into our place of business trailed by TV news crews. And the Department could have avoided the embarrassment of being told by the Judge that it had no case.Â
About the American Cash Flow Corporation and Dynetech Corporation
American Cash Flow Corporation is the largest and most successful cash flow organization in the world, providing extensive education, training and support to successful cash-flow professionals throughout the country. It hosts the annual Cash Flow Convention, where thousands of professionals from throughout the country gather each year, and publishes the monthly American Cash Flow JournalÂ®, with a readership of over 25,000, which keeps readers abreast of the industryÂs latest news and trends.
Dynetech Corporation (http://www.dynetech.com) is an Orlando-based enterprise development and management company and American Cash Flow CorporationÂs parent company. Dynetech delivers rapid product and technology development, as well as sales, marketing, training, logistics and operational services for its own proprietary brands and, on an out-source basis, to third-party companies seeking direct-to-market solutions.
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