[co-author: Stephanie Kozol]*
North Carolina Attorney General Josh Stein led a bipartisan coalition of eight state AGs, including Arkansas, Indiana, Michigan, Missouri, North Dakota, Ohio, and Texas, in requesting the District Court in the Southern District of Texas to amplify measures against John Caldwell Spiller, a repeat offender of federal and state telemarketing and telephone privacy laws.
In March 2023, the coalition secured a verdict effectively dismantling the large-scale illegal telemarketing operation involving Spiller and multiple co-defendants. Consequently, Spiller was prohibited from initiating automated outbound calls or engaging in telemarketing. Despite this restraining order, Spiller continued his fraudulent activities by falsifying business records and establishing three new businesses to make deceptive and abusive automated calls and aiding others in doing the same.
For violating these prohibitions, Stein and the coalition asked the court to impose wider-ranging restrictions on Spiller’s operations. The proposed injunction would extend to all telephone-related services, including transmission of telephone calls over the U.S. network, provision of VoIP services, text messaging services, and the origination or facilitation of ringless voicemail messages or any other electronic messages.
The coalition is also asking the court to order Spiller to dissolve his existing telephone service companies and to pay over $122 million – a sum that would have otherwise been suspended had Spiller complied with the initial permanent injunction. Given his failure to obey the court’s orders, Spiller is now liable for the full amount.
Why It Matters
The case indicates that state AGs are continuing to ramp up their efforts to combat telemarketing infractions, including cross-party collaboration and consolidated action. It’s crucial to note that breaches of telemarketing laws often carry substantial penalties – a fact made starkly evident by Spiller’s case. This underscores the gravity of these violations and the significant consequences for those not adhering to the laws.
Additional articles on State Attorneys General offices in the telemarketing space:
*Senior Government Relations Manager
