After getting a permanent injunction from the FTC (Federal Trade Commission) against him and his company at the time - National Electronic Healthcare Corp. and Electronic Healthcare Products, Inc. Mr. White changed his name to Mike Bianco and he is at it again ripping off unsuspecting medical reps. In order to sign up with them you have to buy 2 pieces of equipment for thousands of dollars, only to find out that the units are not FDA approved and that Renua knocked them off from a previous vendor, who is suing them.
Do not fall for this multi-level marketing scheme. Renua is about to go out of business, reps will have no recourse.
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
FEDERAL TRADE COMMISSION, Plaintiff,
v.
STEVE SHELTON, LYNNE SHELTON, GARY WHITE, LESLIE WHITE, NATIONAL ELECTRONIC HEALTHCARE CORPORATION, and
ELECTRONIC HEALTHCARE PRODUCTS, INC., Defendants.
CVN97712ECR
(RAM)
STIPULATED FINAL JUDGMENT AND ORDER FOR PERMANENT INJUNCTION
Plaintiff Federal Trade Commission ("FTC" or "Commission") commenced this action by filing its complaint against defendants
Steve Shelton, Lynne Shelton, Gary White, Leslie White, National Electronic Healthcare Corporation, and Electronic Healthcare
Products, Inc. ("defendants"), pursuant to Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b),
alleging violations of Section 5 of the FTC Act, 15 U.S.C. § 45, and the Commission’s Trade Regulation Rule entitled "Disclosure
Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures," 16 C.F.R. Part 436 ("Franchise
Rule"). Plaintiff and defendants, by and through their respective counsel whose names appear hereafter, have agreed to entry
of this Stipulated Final Judgment and Order for Permanent Injunction ("Order") upon the following terms and conditions,
without adjudication of any issue of fact or law and without defendants admitting liability for any of the offenses alleged in the
Commission’s complaint. On the joint motion of plaintiff and defendants, it is hereby ORDERED, ADJUDGED and DECREED as
follows:
FINDINGS
This Court has jurisdiction of the subject matter and over the parties.
The complaint states a claim upon which relief may be granted against the defendants under Sections 5(a), 13(b), and 19 of the
FTC Act, 15 U.S.C. §§ 45(a), 53(b), and 57b.
Defendants, freely and without coercion, waive all rights to appeal or otherwise challenge or contest the validity of this Order,
subject to Paragraph XIV below, any further procedural steps, and any rights that may arise under the Equal Access to Justice
Act, 28 U.S.C. § 2412, amended by Pub.L. 104121,
100 Stat. 847, 86364
(1996).
Entry of this Order is in the public interest.
DEFINITIONS
For purposes of this Order the following definitions shall apply:
A. "Franchise" means franchise as defined in Section 436.2(a) of the Federal Trade Commission’s Franchise Rule, 16 C.F.R. Part
436.
B. "Business venture" means any written or oral business arrangement, however denominated, whether or not covered by the
Franchise Rule, which consists of payment of any financial consideration for:
(1) the right or means to offer, sell, or distribute goods or services (whether or not identified by a trademark, service mark,
trade name, advertising, or other commercial symbol); and
(2) more than nominal assistance to any person or entity in connection with or incident to the establishment, maintenance, or
operation of a new business or the entry by an existing business into a new line or type of business.
C. "Person" means a natural person, organization or other legal entity, including a corporation, partnership, proprietorship,
association, cooperative, or any other group or combination acting as an entity.
ORDER
I.
IT IS THEREFORE ORDERED that defendants, their successors, assigns, officers, agents, servants, employees and those persons
in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, in
connection with the offering for sale or sale of any franchise or business venture, are hereby permanently enjoined from:
A. Making, or assisting in the making of, expressly or by implication, orally or in writing, any statement or representation of
material fact that is false or misleading, including but not limited to, any false representation about:
(1) income, profits, or sales volume likely to be achieved by prospective purchasers;
(2) income, profits, or sales volume that has been achieved by other previous purchasers;
(3) nature and extent of the market demand for any product or service to be sold by any prospective purchasers;
(4) market value of any product or service to be sold by any prospective purchasers;
(5) authenticity of any reference purporting to be a franchise or business venture purchaser;
(6) typicality of the experiences of any reference purporting to be a franchise or business venture purchaser;
(7) nature, quality, and market value of any product or service sold or provided by defendants; or
(8) ability or likelihood of any person to find clients, accounts, or locations for any prospective purchasers.
B. Violating, or assisting others to violate, any provisions of the Franchise Rule, 16 C.F.R. Part 436, including but not limited to:
(1) failing to provide potential franchisees with a complete and accurate disclosure document within the times stated in the
Franchise Rule, 16 C.F.R. § 436.1(a);
(2) failing to provide potential franchisees with an earnings claim document when any earnings claim is made, as required by
the Franchise Rule, 16 C.F.R. § 436.1(b)(
e); and
(3) failing to disclose, in immediate conjunction with any mass advertised earnings claim, the material basis for the claim (or the
lack of such basis) and a warning that the earnings claim is only an estimate, as required by the Franchise Rule, 16 C.F.R. §
436.1(e)(3)(
4).
II.
IT IS FURTHER ORDERED that defendants National Electronic Healthcare Products, Electronic Healthcare Products, Inc., Steve
Shelton, Lynne Shelton, Gary White, and Leslie White, and each of them, are hereby permanently enjoined from engaging,
whether directly or indirectly, in concert with others or through any entity, in the offering for sale or sale of any franchise or
business venture unless they first obtain a performance bond in the principal sum of Two Hundred Thousand Dollars
($200,000). The terms and conditions of the bond requirement are:
A. Each bond is conditioned upon compliance by defendant with this Order and with Section 5 of the FTC Act, 15 U.S.C. § 45.
B. Each bond shall remain in full force and effect as long as the defendant continues to engage in any activity requiring him to
obtain the bond and for at least three (3) years thereafter.
C. Each bond shall cite this Order as the subject matter of the bond. Each bond shall be an insurance agreement providing
surety for financial loss that is issued by a surety company
(1) admitted to do business in each state in which defendants do business and (2) that holds a Federal Certificate of Authority
As Acceptable Surety On Federal Bond and Reinsuring.
D. Defendants shall not disclose the existence of the performance bond to any consumer, or other purchaser or prospective
purchaser of any franchise or business venture that is advertised, promoted, offered for sale, sold, or distributed, without also
disclosing clearly and prominently, at the same time, “AS REQUIRED BY ORDER OF THE U.S. DISTRICT COURT IN SETTLEMENT OF
CHARGES THAT DEFENDANT ENGAGED IN FALSE AND MISLEADING REPRESENTATIONS IN THE MARKETING OF BUSINESS
VENTURES".
E. Each bond shall be in favor of both the Federal Trade Commission for the benefit of any party injured as a result of any unfair
or deceptive acts or practices, false advertising, or violation of this Order and any party so injured.
F. Defendants shall provide a copy of the bond to the Associate Director for the Division of Marketing Practices at the address
specified in Section IX.E. of this Order, at least ten (10) days before the commencement of the activity for which the bond is
required.
G. The bond requirements of this Order shall be in addition to, and not in lieu of, any bond required by federal, state, or local
law, or the order of another court.
III.
IT IS FURTHER ORDERED that defendants, their successors, assigns, officers, agents, servants, employees and those persons in
active concert or participation with them who receive actual notice of this Order by personal service or otherwise, in
connection with the offering for sale or sale of any product or service, are hereby permanently enjoined from making, directly
or through any other person, expressly or by implication, orally or in writing, any misrepresentation of material fact relating to
the performance or attributes of any such product or service.
IV.
IT IS FURTHER ORDERED that judgment, subject to Paragraph V, is hereby entered in favor of the Commission and against
defendants (A) National Electronic Healthcare Corporation, in the amount of $100,000; (B) Electronic Healthcare Products, Inc.,
in the amount of $100,000; (C) Gary White, in the amount of $100,000; (D) Leslie White, in the amount of $100,000; (E) Steve
Shelton, in the amount of $80,000; and (F) Lynne Shelton, in the amount of $80,000; for the purpose of paying equitable
monetary relief, including but not limited to, consumer redress and/or disgorgement and for paying attendant expenses of
administering any redress fund. If the Commission determines, in its sole discretion, that redress to purchasers is wholly or
partially impracticable, any funds not so used shall be deposited into the United States Treasury. The Commission in its sole
discretion may use a designated agent to administer consumer redress. No portion of this judgment for equitable monetary
relief shall be deemed a fine, penalty or punitive assessment, or forfeiture.
V.
IT FURTHER ORDERED that given the pendency of proceedings for all defendants in the United States Bankruptcy Court for the
Renua Medical Reviews
Renua Medical (Unisource)
Has recently changed the company name to Unisource and is working with an address that belongs to the UPS store
in Carson City, NV.
Once a scammer, Always a scammer.
Mike Bianco's real name is Gary White.
After getting a permanent injunction from the FTC (Federal Trade Commission) against him and his company at the time - National Electronic Healthcare Corp. and Electronic Healthcare Products, Inc. Mr. White changed his name to Mike Bianco and he is at it again ripping off unsuspecting medical reps. In order to sign up with them you have to buy 2 pieces of equipment for thousands of dollars, only to find out that the units are not FDA approved and that Renua knocked them off from a previous vendor, who is suing them.
Do not fall for this multi-level marketing scheme. Renua is about to go out of business, reps will have no recourse.
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
FEDERAL TRADE COMMISSION, Plaintiff,
v.
STEVE SHELTON, LYNNE SHELTON, GARY WHITE, LESLIE WHITE, NATIONAL ELECTRONIC HEALTHCARE CORPORATION, and
ELECTRONIC HEALTHCARE PRODUCTS, INC., Defendants.
CVN97712ECR
(RAM)
STIPULATED FINAL JUDGMENT AND ORDER FOR PERMANENT INJUNCTION
Plaintiff Federal Trade Commission ("FTC" or "Commission") commenced this action by filing its complaint against defendants
Steve Shelton, Lynne Shelton, Gary White, Leslie White, National Electronic Healthcare Corporation, and Electronic Healthcare
Products, Inc. ("defendants"), pursuant to Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b),
alleging violations of Section 5 of the FTC Act, 15 U.S.C. § 45, and the Commission’s Trade Regulation Rule entitled "Disclosure
Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures," 16 C.F.R. Part 436 ("Franchise
Rule"). Plaintiff and defendants, by and through their respective counsel whose names appear hereafter, have agreed to entry
of this Stipulated Final Judgment and Order for Permanent Injunction ("Order") upon the following terms and conditions,
without adjudication of any issue of fact or law and without defendants admitting liability for any of the offenses alleged in the
Commission’s complaint. On the joint motion of plaintiff and defendants, it is hereby ORDERED, ADJUDGED and DECREED as
follows:
FINDINGS
This Court has jurisdiction of the subject matter and over the parties.
The complaint states a claim upon which relief may be granted against the defendants under Sections 5(a), 13(b), and 19 of the
FTC Act, 15 U.S.C. §§ 45(a), 53(b), and 57b.
Defendants, freely and without coercion, waive all rights to appeal or otherwise challenge or contest the validity of this Order,
subject to Paragraph XIV below, any further procedural steps, and any rights that may arise under the Equal Access to Justice
Act, 28 U.S.C. § 2412, amended by Pub.L. 104121,
100 Stat. 847, 86364
(1996).
Entry of this Order is in the public interest.
DEFINITIONS
For purposes of this Order the following definitions shall apply:
A. "Franchise" means franchise as defined in Section 436.2(a) of the Federal Trade Commission’s Franchise Rule, 16 C.F.R. Part
436.
B. "Business venture" means any written or oral business arrangement, however denominated, whether or not covered by the
Franchise Rule, which consists of payment of any financial consideration for:
(1) the right or means to offer, sell, or distribute goods or services (whether or not identified by a trademark, service mark,
trade name, advertising, or other commercial symbol); and
(2) more than nominal assistance to any person or entity in connection with or incident to the establishment, maintenance, or
operation of a new business or the entry by an existing business into a new line or type of business.
C. "Person" means a natural person, organization or other legal entity, including a corporation, partnership, proprietorship,
association, cooperative, or any other group or combination acting as an entity.
ORDER
I.
IT IS THEREFORE ORDERED that defendants, their successors, assigns, officers, agents, servants, employees and those persons
in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, in
connection with the offering for sale or sale of any franchise or business venture, are hereby permanently enjoined from:
A. Making, or assisting in the making of, expressly or by implication, orally or in writing, any statement or representation of
material fact that is false or misleading, including but not limited to, any false representation about:
(1) income, profits, or sales volume likely to be achieved by prospective purchasers;
(2) income, profits, or sales volume that has been achieved by other previous purchasers;
(3) nature and extent of the market demand for any product or service to be sold by any prospective purchasers;
(4) market value of any product or service to be sold by any prospective purchasers;
(5) authenticity of any reference purporting to be a franchise or business venture purchaser;
(6) typicality of the experiences of any reference purporting to be a franchise or business venture purchaser;
(7) nature, quality, and market value of any product or service sold or provided by defendants; or
(8) ability or likelihood of any person to find clients, accounts, or locations for any prospective purchasers.
B. Violating, or assisting others to violate, any provisions of the Franchise Rule, 16 C.F.R. Part 436, including but not limited to:
(1) failing to provide potential franchisees with a complete and accurate disclosure document within the times stated in the
Franchise Rule, 16 C.F.R. § 436.1(a);
(2) failing to provide potential franchisees with an earnings claim document when any earnings claim is made, as required by
the Franchise Rule, 16 C.F.R. § 436.1(b)(
e); and
(3) failing to disclose, in immediate conjunction with any mass advertised earnings claim, the material basis for the claim (or the
lack of such basis) and a warning that the earnings claim is only an estimate, as required by the Franchise Rule, 16 C.F.R. §
436.1(e)(3)(
4).
II.
IT IS FURTHER ORDERED that defendants National Electronic Healthcare Products, Electronic Healthcare Products, Inc., Steve
Shelton, Lynne Shelton, Gary White, and Leslie White, and each of them, are hereby permanently enjoined from engaging,
whether directly or indirectly, in concert with others or through any entity, in the offering for sale or sale of any franchise or
business venture unless they first obtain a performance bond in the principal sum of Two Hundred Thousand Dollars
($200,000). The terms and conditions of the bond requirement are:
A. Each bond is conditioned upon compliance by defendant with this Order and with Section 5 of the FTC Act, 15 U.S.C. § 45.
B. Each bond shall remain in full force and effect as long as the defendant continues to engage in any activity requiring him to
obtain the bond and for at least three (3) years thereafter.
C. Each bond shall cite this Order as the subject matter of the bond. Each bond shall be an insurance agreement providing
surety for financial loss that is issued by a surety company
(1) admitted to do business in each state in which defendants do business and (2) that holds a Federal Certificate of Authority
As Acceptable Surety On Federal Bond and Reinsuring.
D. Defendants shall not disclose the existence of the performance bond to any consumer, or other purchaser or prospective
purchaser of any franchise or business venture that is advertised, promoted, offered for sale, sold, or distributed, without also
disclosing clearly and prominently, at the same time, “AS REQUIRED BY ORDER OF THE U.S. DISTRICT COURT IN SETTLEMENT OF
CHARGES THAT DEFENDANT ENGAGED IN FALSE AND MISLEADING REPRESENTATIONS IN THE MARKETING OF BUSINESS
VENTURES".
E. Each bond shall be in favor of both the Federal Trade Commission for the benefit of any party injured as a result of any unfair
or deceptive acts or practices, false advertising, or violation of this Order and any party so injured.
F. Defendants shall provide a copy of the bond to the Associate Director for the Division of Marketing Practices at the address
specified in Section IX.E. of this Order, at least ten (10) days before the commencement of the activity for which the bond is
required.
G. The bond requirements of this Order shall be in addition to, and not in lieu of, any bond required by federal, state, or local
law, or the order of another court.
III.
IT IS FURTHER ORDERED that defendants, their successors, assigns, officers, agents, servants, employees and those persons in
active concert or participation with them who receive actual notice of this Order by personal service or otherwise, in
connection with the offering for sale or sale of any product or service, are hereby permanently enjoined from making, directly
or through any other person, expressly or by implication, orally or in writing, any misrepresentation of material fact relating to
the performance or attributes of any such product or service.
IV.
IT IS FURTHER ORDERED that judgment, subject to Paragraph V, is hereby entered in favor of the Commission and against
defendants (A) National Electronic Healthcare Corporation, in the amount of $100,000; (B) Electronic Healthcare Products, Inc.,
in the amount of $100,000; (C) Gary White, in the amount of $100,000; (D) Leslie White, in the amount of $100,000; (E) Steve
Shelton, in the amount of $80,000; and (F) Lynne Shelton, in the amount of $80,000; for the purpose of paying equitable
monetary relief, including but not limited to, consumer redress and/or disgorgement and for paying attendant expenses of
administering any redress fund. If the Commission determines, in its sole discretion, that redress to purchasers is wholly or
partially impracticable, any funds not so used shall be deposited into the United States Treasury. The Commission in its sole
discretion may use a designated agent to administer consumer redress. No portion of this judgment for equitable monetary
relief shall be deemed a fine, penalty or punitive assessment, or forfeiture.
V.
IT FURTHER ORDERED that given the pendency of proceedings for all defendants in the United States Bankruptcy Court for the
District of Nevada (case numbers BKN9830678,