An attorney representing the Psychic Readers Network, which is fronted by late-night DRTV celebrity Miss Cleo, said yesterday that the Federal Trade Commission has agreed not to pursue a shutdown of the business while the two sides battle in court.
The FTC, as part of its fraud lawsuit filed Feb. 14 in U.S. District Court in South Florida, had asked a judge to issue a temporary injunction freezing the assets of the Psychic Readers Network and its sister company, Access Resource Services, and to place them in receivership.
In a statement, New York attorney Sean Moynihan, who represents the two firms, said the FTC agreed instead to have a neutral monitor inspect the operations of Access Resource Services.
“The FTC made the decision to commence a lawsuit and hold a press conference without asking Access about their actual business practices,” the statement said. “Not surprisingly, however, after a meeting with Access' counsel and after a thorough explanation of Access' business practices, the FTC and Access have, today, entered into a settlement agreement by virtue of which Access simply agrees to uphold the high standard of business practices already in place by Access.”
Access Resource Services expects to be fully vindicated by the monitor, according to the statement. The company said it would continue to contest any court actions filed against it, including the FTC's.
The FTC did not immediately return a call for comment.