ertified Merchant Services has reached a settlement with Cliff Torrence, a former seller of CMS processing services who admitted to violating the court order that protects CMS and agreed to pay restitution to the company.

In November 2002, CMS was granted protection by the U.S. District Court for the Eastern District of Texas, Sherman division, in a court order the company sought after learning competitors were engaging in activities harmful to the company.

The order prohibits persons in the merchant processing industry from seeking to acquire or use confidential or proprietary information of CMS; using the existence of the receivership as a reason for trying to solicit CMS merchants for business or solicit CMS employees or CMS sales agents for employment; making any false, misleading or disparaging statements against CMS in an attempt to harm CMS; and doing anything that interferes with the receivership.

CMS continues to operate under federal court supervision and protection.

Mary Dees, General Manager of CMS, said in a statement, "A significant part of my responsibility is to make sure that the company is protected from people trying to take unfair advantage of CMS. We are pleased that the federal court supports this protection, as shown in its action against Mr. Torrence."

CMS first learned of Torrence's behavior in the fall of 2002. According to Dees, Torrence was in violation of the court order because he was using the previous investigation of CMS by the FTC and the receivership as reasons for trying to lure customers away from CMS to another transaction processor.

CMS would not disclose the amount of the settlement. According to Dees, when CMS learns of behavior that is in violation of the court order, it first sends a "cease and desist" letter to the person responsible for the behavior, attaching a copy of the court order.

"Usually, when we send this to someone, they understand right away," Dees said. "Taking legal action is a last course."