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COURTS White City subscription sellers settle with AG for $3 million Also ordered to pay up to $500,000 in restitution to Oregon consumers Comment By Ryan Pfeil Mail Tribune MailTribune.com By Ryan Pfeil Mail Tribune Posted Jun. 23, 2015 at 11:17 AM Updated Jun 23, 2015 at 11:57 AM By Ryan Pfeil Mail Tribune Posted Jun. 23, 2015 at 11:17 AM Updated Jun 23, 2015 at 11:57 AM » RELATED CONTENT • Alleged subscription scammers may be violating state restraining order... • Medford vineyard owner's companies made millions by skimming off subscription sales, AG ... • Oregon AG sues White City company over subscription scam » Social News WHITE CITY — An alleged magazine subscription fraud ring operating out of White City charged with selling overpriced subscriptions to people across the U.S. has agreed to pay $3 million to the state and up to $500,000 in restitution to Oregon victims. An assurance of voluntary compliance filed today in Marion County Circuit Court also details that the ring of 19 accused companies and 10 individuals also has been permanently banned from continuing any future business regarding magazines and newspapers.  "This includes the sale of newspaper or magazine subscriptions, conducting business as a subscription clearing house, and using, purchasing, renting or leasing any customer list from a third party," the document reads. Under the guidelines set out in the settlement, the case will not progress to court in Oregon, although several other states, including New York, Minnesota, Missouri and Texas, have filed additional suits.  Restitution is available to what the document calls "eligible consumers," or Oregon residents who were scammed between Jan. 1, 2010, and Aug. 1, 2015. The consumers must make a claim in writing for restitution within 120 days after receiving written notice of the restitution program set up for them.  "We want to hear from consumers," Oregon DOJ communications director  Kristina Edmunson said .  Anyone who thinks they were scammed can call or email the Oregon DOJ consumer complaint hotline at 1-877-877-9392, or by email at [email protected] .  In March, the Oregon Attorney General's Office announced the state was suing the 19 companies and individuals involved in the perceived ring. The racketeering and unlawful trade practices lawsuit stemmed from what state officials have called a "sophisticated mail scam" that ripped off thousands of customers in Oregon and in other states.  “This was a sophisticated operation that generated millions of dollars each year from consumers across the county who thought they were doing business with a reputable magazine or newspaper publisher, but were instead working with a company that made its money by scamming them,” Attorney General Rosenblum said in a news release. "It's a particular embarrassment to the legitimate Oregon business community when national companies based here don't play by the rules. The only option was to shut them down—and we have."  Officials allege the named companies and individuals inflated subscription prices, anywhere from 40 to 100 percent, bilking more than $20 million from consumers since January 2010. The suit says they did this by sending out misleading mail solicitations to consumers designed to trick them into paying inflated prices, as the mailers falsely suggested their current subscriptions were about to expire. The ripped-off funds were then laundered "through a criminal enterprise that involves dozens of people and entities," the original complaint alleged.  That original suit charged defendants Laura Lovrien, Colleen Kaylor, Shannon Bacon, Lydia Pugsley, Noel Parducci, Linda Babb, William Strickler, Rachel Worcester, Jeffrey Hoyal, Dennis Simpson, and the 19 companies with wire fraud, mail fraud, first-degree aggravated theft by deception and money laundering.  A release from the group's defense attorneys says they "expressly deny any and all the allegations set forth in the records and files of the lawsuit." "After almost three months of being prohibited from conducting business, and nearly two months of being banned from even talking to the media, we have reluctantly agreed to a settlement," Hoyal said in the release. "While we strongly disagree with the Attorney General's assertions, life became unbearable as we waited and waited for a resolution. Our employees, through no fault of their own, literally have not been allowed to work for us, apply for new jobs, or even pay for their children's daycare or college tuition. They need to be able to get on with their lives." The group also has agreed not to pursue additional legal action against the state, the release says.  "Despite the Attorney General's egregious behavior, we were adamant that some good come out of this disagreement," Hoyal said. "We have always strived to operate our businesses within the law, and wanted to make certain our customers felt they were dealt with squarely." Read the full settlement: Settlement between Oregon Department of Justice and White City magazine subscription companies by Mail Tribune   Reach reporter Ryan Pfeil at 541-776-4468 or [email protected] . Follow him at www.twitter.com/ryanpfeil . By Ryan Pfeil Mail Tribune MailTribune.com By Ryan Pfeil Mail Tribune Posted Jun. 23, 2015 at 11:17 AM Updated Jun 23, 2015 at 11:57 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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