COMPLAINT FOR PERMANENT INJUNCTIVE RELIEF, AND OTHER STATUTORY RELIEF. Plaintiff, STATE OF FLORIDA, OFFICE OF THE ATTORNEY GENERAL,

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1 IN THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT IN AND FOR LEON COUNTY, FLORIDA STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS, Plaintiff, vs. CASE NO. 05- THE GLOBAL HEALINGS SOCIETY AND JOSEPH MICHAEL GARDINIER, Defendants. / COMPLAINT FOR PERMANENT INJUNCTIVE RELIEF, AND OTHER STATUTORY RELIEF Plaintiff, STATE OF FLORIDA, OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS sues Defendants, The Global Healings Society and Joseph Michael Gardinier, and alleges: JURISDICTION AND VENUE 1. This is an action for damages, injunctive and other statutory relief, brought pursuant to the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Fla. Stat. (2004). 2. This Court has jurisdiction pursuant to the provisions of said statute. 3. Plaintiff, State of Florida, Office of the Attorney General, Department of Legal Affairs, (hereinafter State ) is an enforcing authority of Chapter 501, Part II, Fla. Stat. 1

2 (2004), and is authorized to seek penalties, damages, injunctive relief and other statutory relief pursuant thereto. 4. The State has conducted an investigation of the matters alleged herein and Attorney General Charles J. Crist, Jr., has determined that this enforcement action serves the public interest, as required by Section (2), Florida Statutes (2004). (See attached Exhibit A.) 5. Defendant, The Global Healings Society ( Global ), is selling financial responsibility bonds as a replacement for automobile insurance. These sales occur through the Internet. This is a fraud as there is no valid financial responsibility bond, and no money to pay claims. Members are charged $300 annually for coverage, and receive nothing of value. The financial responsibility card that is issued is not recognized by the Department of Highway Safety and Motor Vehicles, and does not comply with law. 6. Global, on its web site, claims to be a 508 non-profit sole corp. sole church ministry. follows: 7. Global, on its related website, states it is located as In care of Post Office Box Puyallup, Washington near [98373] Office: (360) Global is not registered to do business as a corporation in this state. Nor is it registered under a fictitious name to do business here. Neither is it a licensed insurer in this state. It has no registered agent in this state. 9. Joseph Michael Gardinier ( Gardinier ), also known as Dr. Rev. Joseph Michael Gardinier, claims to be the founder and caretaker of Global. He resides at 2

3 th Street, Graham, Washington He directs the activities and is responsible for the various bond programs sponsored by Global. 10. Global and Gardinier are subject to jurisdiction of the courts of this state pursuant to Florida Statute by engaging in business in this state, and by committing tortuous acts in this state. They are contracting to sell insurance on property or risks in this state. They have also breached contracts in this state by failing to perform acts required by the contract. 11. The statutory violations and Defendants activities alleged herein occur in or affect more than one circuit in the State of Florida, including Leon County and the Second Judicial Circuit. 12. All actions material to the complaint have occurred between April 1, 2001 and the present and are not precluded by the time limitations in Section (5). 3

4 STATEMENT OF FACTS AND DEFENDANTS COURSE OF CONDUCT 12. Global is a membership organization that purports to offer members various bonds. These bonds are designed to replace the need for insurance, but Global claims that these bonds are not insurance. Members pay for the bonds, but the bonds never provide coverage to the members. 13. The Department of Highway Safety and Motor Vehicles, knowing that this Auto Bond is a scam, refuses to honor the Auto Bond insurance cards. After Global discovered this, it held conference calls regarding the Florida situation. These calls, conducted by Gardinier, were placed between January 6, 2005, and January 11, Audio of these Florida conference calls is available by link on the Global website at In these calls, Gardinier claims that Global has 1,050 members covered for financial responsibility and that 425 of these are Florida members. The purpose of these calls was to encourage the faithful to ante up another $150 to fight the state of Florida in a RICO action. To that end, Gardinier proclaims that the Guardians have set aside $10 million to fight the state, and just want the members to ante up some to take care of all the individual RICO suits. Further, he claims that he has assembled 200 attorneys who, as a group, have not lost a case in 46 years. 15. Notwithstanding Gardinier s claims, two states have issued cease and desist orders against these deceptive practices. On February 1, 2005, Washington Insurance Commission Mike Kreidler, issued a cease and desist against Global Healings, 4

5 Gardinier and others, in Case No. D A copy of that order obtained from the Washington Insurance Commissioner s website is attached as Exhibit B. 16. On March 24, 2005, Montana issued a permanent cease and desist order against Global and Gardinier in case No A copy of that order is attached as Exhibit C. 17. Gardinier, in his Florida conference calls, states that Global had a victory in Montana. Given that they did not even show up and have an adverse order entered against them, this claim is patently false and coupled with his other claims, is simply an attempt to entice the faithful into squandering more money. 18. Gardinier and Global claim that the Auto Bond is not insurance. If Auto Bond is not insurance, it is governed by the provisions of the Florida Deceptive and Unfair Trade Practices Act, over which this Office is an enforcing authority. 19. In addition to the Auto Bond, Global also issues the Community Financial Bond, another fake product where members pay for but do not receive benefits. In like manner, Global also has other worthless products such as The Health Bond, The Home Equity Bond, The Student Bond, and the Benefit for Life Bond. All these scams are simply other methods to funnel money into the coffers of Gardinier. 20. All this illegal activity harms Floridians in at least two ways. First, the members who purchase these bonds pay good money for nothing. Second, when a Florida resident is injured by a person covered by the Auto Bond there is no money to pay the claim through the Auto Bond. 21. These Defendants knew or should have known that the conduct that each participated in was unfair or deceptive, and thus have knowingly used, or are knowingly 5

6 using a method, act or practice, declared unlawful under section , Fla. Stat. (2000). They have knowingly participated in the marketing of products that do not provide a benefit to the consumer purchaser. 22. Defendants have deceptively advertised and sold their products to Florida consumers to Florida consumers who are 60 years of age or older. COUNT I VIOLATIONS OF CHAPTER 501, PART II, Fla. Stat. DECEPTIVE AND UNFAIR TRADE PRACTICES BY GLOBAL 23. Plaintiff realleges paragraphs 1 through 22, as if fully set forth herein, and further alleges: 24. Chapter 501, Part II, Fla. Stat. is entitled, "Florida Deceptive and Unfair Trade Practices Act. Section (1) of the Act provides that, unfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful. 25. As set forth in paragraphs 1 through 22, Defendant Global has engaged in representations, omissions which are material, and which have the tendency or capacity, or which are likely, to mislead consumers acting reasonably under the circumstances. Global has also engaged in unfair competition and acts and practices which are unconscionable, unfair or deceptive. Further, Global has committed acts or practices in trade or commerce which offend established public policy and are unethical, oppressive, unscrupulous or substantially injurious to consumers. Thus, Global has engaged in unfair or deceptive acts or practices in the conduct of any trade or commerce in violation of section (1), Fla. Stat. 6

7 26. The aforesaid acts and practices of Global were and are to the injury and prejudice of the public. COUNT II VIOLATIONS OF CHAPTER 501, PART II, Fla. Stat. DECEPTIVE AND UNFAIR TRADE PRACTICES BY GARDINIER 27. Plaintiff realleges paragraphs 1 through 22, as if fully set forth herein, and further alleges: 28. Chapter 501, Part II, Fla. Stat. is entitled, "Florida Deceptive and Unfair Trade Practices Act. Section (1) of the Act provides that, unfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful As set forth in paragraphs 1 through 22, Defendant Gardinier has engaged in representations, omissions which are material, and which have the tendency or capacity, or which are likely, to mislead consumers acting reasonably under the circumstances. Gardinier has also engaged in unfair competition and acts and practices which are unconscionable, unfair or deceptive. Further, Gardinier has committed acts or practices in trade or commerce which offend established public policy and are unethical, oppressive, unscrupulous or substantially injurious to consumers. Thus, Gardinier has engaged in unfair or deceptive acts or practices in the conduct of any trade or commerce in violation of section (1), Fla. Stat. (2000). RELIEF REQUESTED WHEREFORE, Plaintiff, Office of the Attorney General, Department of Legal Affairs, State of Florida, asks for judgment: 7

8 A. Permanently enjoining Global and Gardinier and their officers, agents, servants, employees, attorneys and those persons in active concert or participation with them who receive actual notice of the injunction, from engaging in methods, acts or practices which are unfair methods of competition or deceptive or unfair acts and practices. More specifically, Plaintiff asks the court to enjoin Defendants as follows: 1. Prohibiting the sale of bonds or insurance-like products either by telephone, word of mouth, or through the Internet. 2. Issuing immediate refunds to all Florida consumers who purchased various bond programs. 3. Requiring Defendants to pay claims up to the amount stated in each bond s limits which claims have been filed prior to disposition of this case. 4. Requiring that Defendants properly register all fictitious names under which they conduct business in Florida, in accordance with Section , Florida Statute. 5. Requiring that Defendants properly register all corporations through which they conduct business in Florida, and require Defendants to have a registered agent in this state. 6. Awarding Plaintiff actual damages on behalf of consumers injured by the unfair competition or deceptive or unfair acts or practices of Defendants, in accordance with section (1)(c), Fla. Stat. 7. Assessing against Defendants civil penalties in the amount of ten thousand dollars ($10,000) for each of the known violations of Chapter 501, Part II, pursuant to section , Fla. Stat. (2004); and assessing Defendants 8

9 civil penalties in the amount of $15,000 for method, act or practice willfully used in violation of Chapter 501, Part II, Fla. Stat. which method, act or practice victimized, or attempted to victimize a person who is 60 years of age or older, pursuant to section , Fla. Stat. 8. Awarding reasonable attorney s fees and costs to Plaintiff, pursuant to sections , and , Fla. Stat. 9. Granting such other relief as this Honorable Court deems just and proper. Respectfully Submitted, CHARLES J. CRIST, JR. ATTORNEY GENERAL ERIC B. TILTON SENIOR ASSISTANT ATTORNEY GENERAL Florida Bar # Department of Legal Affairs PL-01 The Capitol Tallahassee, Florida (850)