SETTLEMENT AGREEMENT
Plaintiff Office of the Attorney General, Department of Legal Affairs, State
of Florida (the "Department" or "Plaintiff'), and Defendants Pan Amigo, Inc.
("Pan Amigo") and Mary Diorio ("Diorio''), enter into this Settlement Agreement
for the purpose of resolving all issues pertaining to the present cause.
RECITALS
WHEREAS, Plaintiff initiated an investigation into the business acts and
practices of certain persons and entities, including the Defendant, and subsequently
filed a complaint against the Defendants alleged Unfair and Deceptive Trade
Practices pursuant to Florida Statutes Chapter 501, Part II. A true and correct copy
of the Complaint is provided as Exhibit A hereto.
WHEREAS, Defendant Pan Amigo is a now-dissolved Florida corporation
that had a principal place of business at 19204 W. Lake Drive, Miami, Florida
33015.
WHEREAS, Defendant Mary Diorio is a Florida resident residing in Miami
Dade County, Florida. · .
WHEREAS, the parties to this action consider this a fair and equitable
resolution to the current action;
WHEREAS, the Defendants enter into this Settlement Agreement without
any admission either of guilt or that the Defendants have violated the law.
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THEREFORE, it is hereby agreed as follows:
I. INJUNCTIVE PROVlSlONS
1. The Defendants and their representatives, agents, employees,
successors, assigns or any other person who acts under, by, through, or on behalf
of any of the Defendants, directly or indirectly, or through any corporate or other
device,:
a. Shall not engage in acts or practices that violate the Florida
Deceptive and Unfair Trade Practices Act~ Chapter 501, Part II,
Florida Statutes;
b. Shall ensure that any payment and I or deposit paid by a
consumer to Defendants to reserve participation in a Pan
American reunion is used for the events and purposes stated by
the Defendants in any advertisement for the reunion and I or
any communication made by the Defendants directly to the
consumer; and
c. Shall provide refunds to consumers for any reunion or event
that is cancelled.
II. STIPULATED PAYMENTS
2. Defendants shall pay a total of$7,848.00 for consumer restitution.
3. To date, Defendants have paid $4,925.00 towards the consumer
restitution amount in paragraph III.2.
4. The remaining balance of $2923.00 shall be suspended premised on
the financial representations made by the Defendant Mary Diorio in her sworn
affidavit provided to the Department.
5. The remaining balance shall become due immediately if the
Department determines that Defendants made any material misstatement or
omission in the financial representations submitted to the Department identified
above.
ID. BUSINESS RECORDS
6. Any personal or financial information provided by or relating to
consumers in the custody or possession of Defendants shall be securely stored in
such a manner as to reasonably protect against inadvertent disclosure of consumer
information.
7. Plaintiff and Defendants agree to retain documents and other
information, in their respective possession, reasonably sufficient to establish
compliance with the provisions of this Settlement Agreement for two (2) years
from the Effective Date of this Settlement Agreement, and shall make such books
and records available to the Department within twenty (20) days of any reasonable
written request.
IV. FUTURE VIOLATIONS
8. It is hereby agreed by the parties that any failure to comply with the
terms and conditions of this Settlement Agreement is, by statute, prima facie
evidence of a violation of Chapter 501, Part II, Florida Statutes, and shall subject
the Defendants to civil penalties, as well as all applicable attorneys' fees and costs.
the event of a breach of the terms of this Settlement Agreement, the Defendants
may be subject to any and all enforcement mechanisms otherwise available to the
Office of the Attorney General and/or State of Florida had this Settlement
Agreement never been executed. Notwithstanding anything to the contrary,
Defendants will have the right to challenge the facts underlying any such alleged
breach of this Settlement Agreement and to present evidence in rebuttal of the
Department's prima facie case in a court of law.
9. If the Department believes that a breach of this Settlement Agreement
has occurred, the Department shall give written notice to the Defendants of the
specific alleged breach. The Defendants shall have twenty (20) days from the date
of the notice to cure the asserted breach and to provide a response to the
Department to that effect. Alternatively, the Defendants shall provide to the
Department a response that shall include (a) a statement explaining why the s
Defendants believe the conduct at issue is or is not in compliance with the
Settlement Agreement; (b) an explanation of the facts and circumstances at issue in
the alleged breach; and, if applicable, ( c) a statement that the alleged breach cannot
be reasonably cured within twenty (20) days from the receipt of the notice, but a
detailed statement as to how the Defendants have begun to take corrective action to
cure the alleged breach and a sworn affidavit attesting that the Defendants are
pursuing such corrective action with reasonable and due diligence and proposing a
detailed and reasonable timetable for curing the alleged breach. The Department
agrees to refrain from filing an enforcement action with respect to enforcement or
compliance with this Settlement until the expiration of that twenty (20) day period.
I 0. Venue for any matter relating to or arising out of this Settlement
Agreement shall be in Leon County, Florida.
V. CLOSURE OF INVESTIGATION
13. Upon execution of this Settlement Agreement and provided the
Defendants are otherwise in compliance with the terms of this Settlement
Agreement, Plaintiff will submit the Joint Stipulation and Proposed Order for
Dismissal upon Settlement, attached hereto as Exhibit B. The Court shall retain
jurisdiction solely for the purpose of enforcing this Settlement Agreement. A copy
of this Settlement Agreement will be submitted to the Court in connection with
said motion. The Defendants shall provide any assistance or cooperation as may
be reasonably requested in connection with said motion. The Court shall retain
jurisdiction over this matter and over the Defendants for the purposes of
enforcement of any provision of this Settlement Agreement and for sanctions or
other punishment for any violation of this Settlement Agreement. Upon execution
of this Settlement Agreement, the Department agrees to close its investigation into
the activities of the Defendants (including Defendants' affiliates, owner(s),
managers, officers, directors, employees and representatives), and Defendants
(including Defendants' affiliates, owner(s), managers, officers, directors,
employees and representatives) shall be released from liability related to the
allegations which were raised or which could have been raised by the Department
in its Complaint (Exhibit A) for activities which occurred prior to the Effective
Date of this Settlement Agreement.
14. The parties agree that this Settlement Agreement has been entered into
in reliance upon the truthfulness of the information provided by the parties to each
other.
VII. EFFECTIVE DATE OF SETTLEMENT AGREEMENT
15. Provided that the Court signs the Order approving this Settlement
Agreement and closing the case, it is further agreed by the parties that the Effective
Date of this Settlement Agreement shall be the date of its execution and delivery
by all the parties, including each of the parties reflected by the signature lines
below. Acceptance by the Office of the Attorney General shall be established by
the signature of the Director of the Conswner Protection Division. The receipt by
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the Office of the Attorney General of any monies pursuant to the Settlement
Agreement does not constitute acceptance by the Office of the Attorney General,
and any monies received shall be returned to the Defendants if this Settlement
Agreement is not accepted and executed by the Director of the Consumer
Protection Division.
Vlll. NOTICE TO PARTIES
16. It is further agreed that facsimile copies of signatures and notary seals
may be accepted as original for the pmposes of establishing the existence of this
Settlement Agreement. It is :further agreed that future notice to any of the parties to
this Settlement Agreement may be made by notice sent certified mail to at the
addresses set forth below unless either party notifies the other by certified mail of
another address to which notices should be provided.
IX. CONSTRUCTION OF SETTLEMENT AGREEMENT
17. It is further agreed that the parties jointly participated in the
negotiation of the terms of this Settlement Agreement. No provision of this
Settlement Agreement shall be construed for, or against, any party, on the grounds
that one party had more control over establishing the terms of this Settlement
Agreement, than another. This Settlement Agreement may be signed in
counterparts, which together shall constitute one agreement.
J 8. Nothing in this Settlement Agreement shall be construed as a waiver
of any private rights of any person or release of any private rights, causes of action,
or remedies of any person against Defendants or any other person or entity unless
expressly stated herein.
19. Notwithstanding any other provision of this Settlement Agreement,
nothing herein shall be construed to impair, compromise or affect any right of any
government agency other than the Office of the Attorney General for the State of
F lorida.
20. This Settlement Agreement does not constitute a finding of law or fact
by any court or agency that Defendants (including Defendants' affiliates, owner(s),
managers, officers, directors, employees and representatives) have engaged in any
act or practice declared unlawful by any laws, rules or regulations of the State of
Florida, and neither party shall make any statement to the contrary. Defendants
and the Department are each prepared to enter into this Settlement Agreement
solely for the purpose of resolution and cooperation.
21. The Department and the Defendants represent and warrant to each
other that the Recitals are true. The Recitals are hereby incorporated into this
Settlement Agreement.
22. This Settlement Agreement represents the complete agreement
between the Department and Defendants (including Defendants' affiliates,
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owner(s), managers, officers, directors, employees and representatives). Any
amendment to this Settlement Agreement must be in writing and must be signed by
all of the parties.
In witness whereof, Defendants have caused this Settlement Agreement to
be executed in the county and state listed below, as of the date affixed thereon.
PAN AMIGO, INC.
"'0~SS::;~ Mary Diorio President, Pan Amigo 8004 NW 154th Street Miami Lakes, Florida 33016
elchard Lawson Director, Consumer Protection Division
i~ J4u Armistead Assistant Attorney General PL-01 The Capitol Tallahassee, Florida 32399
~ Date
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EXHIBIT A
Filing# 25637821 E-Filed 04/02/2015 01 :48:25 PM
IN THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT IN AND FOR LEON COUNTY, FLORIDA
OFFICE OF THE ATTORNEY GENERAL, STATE OF FLORIDA, DEPARTMENT OF LEGAL AFFAIRS
Plaintiff,
v.
PAN AMIGO, INC.; and
PATRICIA F. JACKSON, individually, and as Officer/Director of PAN AMIGO, Inc.; and
MARY DIORIO, individually, and as Officer/Director of PAN AMIGO, Inc.
Defendants.
COMPLAINT
Case No.: 2015 CA 000746
Plaintiff, State of Florida, Office of the Attorney General, Department of Legal Affairs,
("Attorney General"), sues Defendants PAN AMIGO, INC., ("Pan Amigo"), PATRICIA F.
JACKSON, and MARY DIORIO, (collectively "the Defendants"). The Defendants organized a
reunion event for forn1er employees of the now defunct Pan American Worldwide Airlines. The
former Pan Am employees and their families who attended lost thousands of dollars in deposit
money when the reunion was cancelled at the last minute due to the Defendants' unfair and
deceptive acts.
JURISDICTION AND VENUE
1. This is an action pursuant to Florida's Deceptive and Unfair Trade Practices Act,
Chapter 501, Part II, Florida Statutes ("the Act"). The action seeks statutory relief, including
Complaint - DLA v Pan Amigo, et al.
injunctive relief, consumer restitution, civil penalties, and attorney's fees and costs, pursuant to
the Act, against Defendants.
2. This Court has jurisdiction over the subject matter pursuant to the provisions of
the Act. The granting of civil penalties, including injunctive relief, consumer restitution, and
altomeys fees and costs is within the jurisdiction of the Circuit Court.
3. The violations alleged herein affect or occurred in multiple judicial circuits in
Florida. Accordingly, venue is proper in Leon County in the Second Judicial Circuit pursuant to
the provisions of the Act and Sections 47.011, Florida Statutes (2014).
4. All actions material to this Complaint have occurred within four years of filing of
this action.
5. All conditions precedent to this action have been performed or have occurred.
PLAINTIFF
6. Plaintiff is an "enforcing authority'' of Chapter 501, Part TI, Florida Statutes
(2014) and is authorized to bring this action and to seek injunctive and other statutory and civil
relief pursuant to that chapter.
7. Plaintiff conducted an investigation of the matters alleged herein and has
determined that this enforcement action serves the public interest, as required by Section
501.207(2), Florida Statutes (2014).
DEFENDANTS
8. Defendant, PAN AMIGO, INC., is a Florida corporation with its principal place
of business at 19204 W. Lake Drive, Miami, Florida 33015. PAN AMIGO publishes a
newsletter and organizes events for former employees of Pan American World Airways.
2 Complaint - DLA v Pan Amigo, et al.
9. Defendant PATRlCIA F. JACKSON, is a Florida resident currently residing in
Windermere, Florida. PATRlCIA F. JACKSON is an officer/director and registered agent of
PAN AMIGO, and exercises control over PAN AMIGO's business affairs.
10. Defendant MARY DIORIO, is a Florida resident currently residing in Miami
Lakes, Florida. MARY DIORIO is the president of PAN AMIGO. MARY DIORIO is the
daughter of PATRICIA F. JACKSON.
11. At all times material to this action, Defendants were engaged m trade or
commerce as defined in Section 501 .203(8), Florida Statutes (2014).
FACTUAL ALLEGATIONS
13. PAN AMIGO was founded as a means of connecting former employees and
families of Pan Am Worldwide Airways, which went out of business in 1991.
14. PAN AMIGO creates, publishes and distributes a newsletter six times a year that
is directed to Pan American alum, who pay an annual mailing cost to receive the newsletter.
15. PAN AMIGO also organizes reunions and events for former employees.
16. Jn 2014 PAN AMIGO organized a reunion called "Pan Am's Worldwide Family
Reunion" that was to be held on Long Island, New York from July 31, 2014 through August 3,
2014.
17. MARY DIORIO was in charge of organizing the reunion for PAN AMIGO.
18. MARY DIORIO promoted the event directly to PAN AMIGO's network of
former Pan Am employees as well as on the internet via its website
www.panamfamilyreunions.com1, and through social media on Facebook and Twitter.
19. According to one advertisement for the reunion, "the weekend will be full of
Speakers, Presentations, Parties, Tours, Receptions and so much more."
1 Site currently reads "Under Construction and Coming Soon." (last visited I :42 PM on March 30, 2015).
3 Complaint - DLA v Pan Amigo, et al.
20. Prospective guests of the reunion were informed by PAN AMIGO and MARY
DIORIO that a block of rooms had been reserved for reunion attendees at the Long Island
Marriott Hotel in Uniondale, New York.
21. The reunion's featured events included a tour and gala dinner at the Cradle of
Aviation Air Power Museum on August 2°d and a banquet breakfast on August Yd.
22. The costs per guest for each event schedule for the reunion was as follows:
Registration $50 Gala Dinner $125 Banquet Breakfast $35 Museum Tour $40.
23. PAN AMIGO required that guests pay deposits for the events in advance of the
reuruon.
24. 244 guests registered and paid deposits to PAN AMIGO ranging from $125 to
$750.
25. Guests traveled from all over the country to attend the reunion, and paid for their
own transportation and lodging at the Marriott.
26. When the guests arrived at the reunion, they learned for the first time that all of
the events were cancelled.
27. MARY DIORIO claimed the events were cancelled because of the lower-than-
expected number of registrants.
28. MARY DIORIO promised to meet with aggrieved reumon guests and
representatives of the Marriott in an attempt to resolve the issues surrounding the cancellations.
However, MARY DIORIO failed to show up for the meeting.
29. Subsequently, MARY DIORIO promised, via email, to refund the guests'
deposits, but has not refunded a single dollar.
4 Complaint - DLA v Pan Amigo, et al.
30. Upon information and belief, PAN AMIGO and MARY DIORIO knew that the
events were going to be cancelled in advance of the reunion, but did not inform any of the guests,
and continued to receive and cash the deposit money for their own benefit.
31. According to complaints received by the Attorney General, MARY DIORIO
asked numerous former Pan Am employees for loans supposedly to be used lo help pay her
parents' mortgage.
32. MARY DIORIO also continued collecting and cashing checks from former Pan
Am employees for the annual mailing fee, but the newsletter ceased being produced or
distributed.
33. Shortly after the reunion weekend, the Attorney General began rece1vmg
complaints from the aggrieved reunion guests.
34. The Attorney General reached out to PAN AMIGO and MARY DIORIO in an
attempt to resolve the consumer complaints, and provide restitution to the aggrieved reunion
guests.
35. These efforts, however, were unsuccessful, and the Attorney General brought this
action.
COUNT I VIOLATIONS OF THE FLORIDA DECEPTIVE AND UNFAIR TRADE PRACTICES
ACT, CHAPTER 501, PART II, FLORIDA STATUTES
36. The Attorney General incorporates and re-alleges paragraphs 1 through 35 above
as if fully set forth hereinafter.
37. Section 501.204(1) provides that "unfair or deceptive acts or practices in the
conduct of any trade or commerce are hereby declared unlawful." The provisions of the Act
shall be "construed liberally to promote the protection" of the "consuming public and legitimate
5 Complaint - DLA v Pan Amigo, et al.
business enterprises from those who engage in ... deceptive[] or unfair acts or practices in the
conduct of any trade or commerce." Fla. Stat§ 501.202 (2014).
38. Defendants were, at all times material to the allegations herein, engaged in "trade
or commerce' as defined by the Act. Fla. Stat. § 501.203 (2014). Defendants advertised,
solicited, provided, offered, or distributed, or offered by sale goods and services directed to
former employees of Pan Am Worldwide Airlines.
39. Defendants planned and advertised for the Long Island reunion knowing that the
scheduled events - the tour, gala dinner, and breakfast - would not be held. Still, the Defendants
received and deposited event deposits sent by reunion guests.
40. The Defendants' acts were deceptive. Even though the Defendants knew the
events were not actually going to take, they took money from the guests, and then waited until
the day the reunion events were to begin - after the guests had traveled to Long Island - to
inform the guests that they were cancelled. The guests relied on Defendants' statements that
their deposits secured their participation in the reunion events. The guests booked hotel rooms
and incurred travel expenses under the mistaken impression that they would participate in events
with their former co-workers. The Defendants failed to notify the guests that the reunion events
would not take place at all. Defendants' material omissions and deceptive statements regarding
the reunion events cost the guests thousands of dollars.
41. The Defendants' acts were unfair. By paying the deposits, the reunion guests
were essentially contracting with Defendants for goods and services related to the reunion. The
guests paid the deposits in return for participation in the reunion events, and the Defendants
deposited the guests' money. When the Defendants unilaterally.and deceptively cancelled all of
6 Complaint - DLA v Pan Amigo, et al.
the events, they breached each and every agreement it had entered into with the guests in
attendance. The guests received nothing in return for their deposits and were never refunded.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff prays for relief as follows:
42. That the Court adjudge and decree that Defendants have engaged in the conduct
complained of herein.
43. That the Court adjudge and decree that the conduct complained of in paragraphs
13 through 35 constitute deceptive and unfair trade practices in violation of the Florida
Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes (2014).
44. That the Court enjoins the Defendants from soliciting, planning, organizing, or
hosting events for former employees Pan American Worldwide Airways.
45. That the Court order Defendants to pay restitution to affected consumers in the
amount of$10,160.98.
46. That the Court award damages, civil penalties, attorney's fees, prejudgment
interest and costs to the Plaintiff for the prosecution of this violation pursuant to Section
501.2105, Florida Statutes (2014).
47. Award any such equitable or other relief pursuant to Section 501.207(3), Florida
Statutes; and
48. Award such other and further relief as the Court deems just and proper.
Complaint - DLA v Pan Amigo, et al.
Dated: April 2, 2015
PAMELA JO BONDI Attorney General
sf William B. Armistead WILLIAM B. ARMISTEAD
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Complaint - DLA v Pan Amigo, et al.
Fla. Bar No. 88535 Assistant Attorney General Consumer Protection Division Department of Legal Affairs Florida Office of the Attorney General Phone: 850-414-3805 Fax: 850-488-1259
8
EXHIBITB
IN THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT IN AND FOR LEON COUNTY, FLORIDA
OFFICE OF THE ATTORNEY GENERAL, STATE OF FLORIDA, DEPARTMENT OF LEGAL AFFAIRS
Plaintiff,
v.
PAN AMIGO, INC.; and
MARY DIORIO, individually, and as Officer/Director of PAN AMIGO, Inc.
Defendants. I --------------- - --
Case No.: 2015-CA-746
JOINT MOTION FOR APPROVAL OF SETTLEMENT AGREEMENT
Plaintiff, Office of the Attorney General, Department of Legal Affairs, State
of Florida ("the Department" ), and Defendants, Pan Amigo, Inc. and Mary Diorio
jointly move this Court to approve the proposed Settlement Agreement (attached
hereto as Exhibit A), negotiated between the Department and Defendants.
WHEREAS, the Department commenced an investigation of Defendants '
business practices; and
WHEREAS, the Department and Defendants have reached an agreement to
resolve the underlying investigation; and
THEREFORE, the Department and Defendants request this Court approve
the Settlement Agreement.
Dated: January_, 2016
PAMELA JO BONDI Attorney General
WILLIAM B. ARMISTEAD Assistant Attorney General
IT IS SO ORDERED.
Date: ----------
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Defendants Pan Amigo, Inc. and Maiy Diorio
John Goshgarian Attorney for Defendants
Circuit Court Judge