Federal Court Rules for FTC, Orders BlueHippo, CEO To Pay Consumers $13.4 Million

A federal court levied a $13.4 million judgment against computer-financing company BlueHippo and CEO Joseph Rensin to compensate nearly 56,000 consumers who paid for computers but didn't receive them, the FTC said in a Monday news release. U.S. District Judge Paul Crotty in New York ordered Rensin to pay $8 million into a redress fund and the remaining amount at a later time. In 2008, BlueHippo settled an FTC lawsuit that alleged the company didn't deliver personal computers that customers with poor credit ratings had ordered and paid for and also failed to disclose key parts of its refund policy to consumers, the commission said. But the FTC went back to court in 2009, alleging the company "flouted" the terms of that settlement (see 0911130160). After a hearing, the court granted the FTC's contempt motion against the company and Rensin, but entered a judgment of only $609,000, which the commission said it appealed. In his April 19 opinion and order, Crotty rejected Rensin's argument that he was deprived of due process. The Better Business Bureau of Greater Maryland said that BlueHippo filed for Chapter 7 bankruptcy in 2009. Rensin's LinkedIn profile said he is CEO of private equity firm AGX Funds, but its phone number is disconnected. A message sent through AGX's website for comment wasn't answered.