Cases | Md. Cent. Collection Unit v. Kossol, 771 A.2d 501 (Md. Ct. Spec. App. 2001) | 2018
The Consumer Protection Division (CPD) used its quasi-judicial capacity to order the defendant to pay $6,000,000 in restitution to Maryland consumers, $265,000 in civil penalties, and $9,816 in costs as a result of his participation in deceptive and misleading business practices in the sale of food plans and freezers. The consumers had contracted with the defendant’s employer for food plans, which ran out of food, and freezers, which were never delivered or were misrepresented. The State of Maryland Central Collection Unit (CCU), which is charged with the collection of accounts or debts owed to the State, any of its units, or victims of crime, filed suit seeking a money judgment based on this order. The CCU and the defendant both filed motions for summary judgment. The trial court granted the CCU’s motion with respect to the civil penalties but denied it for restitution because, although the CPD’s decision was entitled to preclusive effect regarding the defendant’s liability, he could not be required to pay restitution because the money generated by the deceptive practices was not paid directly to him. On appeal, the defendant argued, among other things, that because there was no evidence that he benefited directly from the consumers, he could not be ordered to pay restitution. The court held that, based on the defendant’s violations of the Consumer Protection Act, and the receipt of benefits from the corporations, the defendant could be held liable for restitution. The judgment was reversed with respect to the award of $6,000,000 restitution and the case was remanded to the circuit court for entry of a judgment consistent with this opinion.