Contempt Guilty

⏱ 3 min read

Charles Floyd Anderson, 81, and his attorney Robert Pete Smith, 80, both of Kansas City, have been found guilty of criminal contempt for willfully violating a court order to provide truthful financial disclosures in a civil action brought by the Federal Trade Commission (FTC) and the State of Missouri. The case alleges that consumers paid over $100 million in response to deceptive sweepstakes and prize mailers distributed by a family business enterprise built by Anderson. The contempt charge stems from Anderson and Smith’s failure to comply with a court order to provide accurate financial information, with Smith attempting to conceal his business relationship with Anderson.

The civil action, FTC v. Next-Gen, Inc. et al., No. 18-cv-00128-DGK, was brought against Anderson’s family business enterprise, which allegedly deceived consumers into paying over $100 million. As part of the case, Anderson was ordered to complete financial disclosures, but he and Smith willfully violated the court order, leading to the criminal contempt charge.

Following a six-day bench trial, U.S. District Judge Roseann Ketchmark found Anderson and Smith guilty of contempt, stating that they had engaged in “willful deceptive gamesmanship” and acted in bad faith in complying with the court’s orders. The guilty verdict is a significant development in the case, which highlights the importance of complying with court orders and the consequences of failing to do so.

The guilty verdict is a victory for the FTC and the State of Missouri, which have been working to hold Anderson and his business enterprise accountable for their alleged deceptive practices. The case serves as a reminder that individuals and businesses must comply with court orders and provide truthful and accurate information, or face the consequences of criminal contempt.