The Binge Cases: Denise Didn't Come Home - Puppy Kingpin | 7. Consequences

Episode Date: July 21, 2022

Jolyn Noethe faces a class action lawsuit that accuses her of a federal crime and might cost her up to 5 million. The puppy pipeline isn’t going to change overnight, but Alex meets with a breeder who has nothing to hide and hears about a movement among breeders to go above and beyond USDA requirements. A Neon Hum Media and Sony Music Entertainment production. Unlock all episodes of Smoke Screen, ad-free right now by subscribing to The Binge. Plus, get binge access to brand new stories dropping on the first of every month — that’s all episodes, all at once, all ad-free. Just click ‘Subscribe’ on the top of the Smoke Screen show page on Apple Podcasts or visit GetTheBinge.com to get access wherever you get your podcasts. Find more great podcasts from Sony Music Entertainment at sonymusic.com/podcasts. Learn more about your ad choices. Visit podcastchoices.com/adchoices

As a kid growing up in Chicago, there was one horror movie I was too scared to watch. It was called Candyman. It was about this supernatural killer who would attack his victims if they said his name five times into a bathroom mirror. But did you know that the movie Candyman was partly inspired by an actual murder? I was struck by both how spooky it was, but also how outrageous it was. Listen to Candyman, the true story behind the bathroom mirror murder, wherever you get your podcasts. There are a couple of reasons I wanted to tell you this story.

The first was that I couldn't believe there is something called puppy laundry. I'm a history nerd, and the idea that there was a new kind of prohibition against puppies seemed so odd. And I couldn't believe how far JoLynn was willing to go just to sell you a puppy. There's so much secrecy in the puppy business, and so few consequences. Those levels of deception, the lack of legal definitions and consistent standards. The investigations into JoLynn and Jack's puppies showed us all of that. Now, a fourth lawsuit has been filed. This one in December 2021.

We have talked about so many cases against JoLynn. This fourth lawsuit was filed by people who didn't realize they were JoLynn's customers until they learned about the accusations of puppy laundering. They had bought a dog thinking it was rescued and later realized that they had supported puppy mills that aren't allowed to sell puppies in California. They felt defrauded and took action. It's been exciting and a little bit complicated.

That's Danny Waltz with the Animal Legal Defense Fund. His organization filed a class action lawsuit against JoLynn, hoping to get some money for the people she allegedly defrauded. Californians decided they don't want to support the puppy mill industry by buying dogs that were support the puppy mill industry by buying dogs that were bred in puppy mills. The lawsuit aims to prove she sold puppies through fake rescues in California and committed charity fraud. When you make people think they're supporting a nonprofit, but they're actually just helping line your pocket. The first plaintiff in this case

is Rebecca Carey. She purchased a cockapoo puppy, who she named Sunny, in early January 2019. Her paperwork said that Sunny came from Bark Adoptions Rescue, and so she believed Sunny was a rescue puppy. The other named plaintiff, Cody Latzer, bought an Australian cattle dog named Sadie. Cody thought that Sadie came from a rescue as well. The paperwork and cage card said PetConnect Rescue. I'm talking to Danny instead of either plaintiff because the class action lawsuit is ongoing.

Danny estimated the number of defrauded customers could be in the thousands. Jack's bad practices have led to scrutiny by the government, but it always sort of appeared to be a slap on the wrist, right? Danny hoped their case would be different, something with more impact than the deal made with the IOAG. The Jacks made a boatload of money off of fake rescues into California. In their deal with the AG,

Jolin and Kimberly didn't even have to admit guilt. This time, Danny wants a deterrent. A punishment so bad, it will make no one want to follow in Jolin's footsteps. Otherwise, what's to stop people in the dog industry from setting up a bunch of fake rescues? After all, that was Jack's strategy. By now, there are a lot of people who want to see JoLynn face some consequences. But will she? And if she doesn't, are copycats already following in her footsteps and making fake rescues. From Neon Hub Media and Sony Music Entertainment, I'm Alex Schumann. This is the season finale of Smokescreen Puppy Kingpin, an investigation into the mastermind

trafficking puppies nationwide in the scheme to hide the truth. It's still early days in this latest lawsuit. Danny accuses Jax of using fake rescues in Iowa, Missouri, and California. So they can sell puppy mill dogs in states that prohibit it. They deny all the accusations, of course. They all filed motions to dismiss and motions to strike parts of the complaint and even a motion to transfer venue. Danny is talking with me from his home in D.C. He's got a big smile, curly brown hair, and is wearing a hoodie. Danny told me that he wants to get more information about the fake

rescues from Jax. We understand that Jax keeps all the records of which dogs came from which puppy mills. He does already have evidence though. Danny isn't starting from scratch. A lot of his evidence is recycled from the first two lawsuits against JoLynn. She's so tight-lipped that you have to sue her to even find out the basics of how her business works. Remember Mindy Callison and her binders? That's really what we're always the most interested in is the depositions and the stuff that we get through discovery. You know, Alex, I've learned so much about how the puppy mill industry works through lawsuit documents.

Each lawsuit built upon the next. For me, it's always about gathering intelligence. That's kind of the core of our organization as it is. The evidence from Mindy's case became public record. We just want to keep using the knowledge we're gaining for good. This latest lawsuit can't put Jill in behind bars. Whatever outcome we have in this lawsuit, I can't send anyone to jail. It's a civil case, not a criminal one. But the class action lawsuit accuses JoLynn of serious federal crimes,

like mail fraud, wire fraud, as well as money laundering. And if Danny collects enough compelling evidence, a prosecutor could pursue a criminal case against JoLynn. That means, down the line, JoLynn could potentially face prison. This spring, the fourth lawsuit was moving ahead. But then, something surprising happened. In May, I spotted new filings that paused the class action case against JoLynn. I reached out to Danny to find out what happened. In May, I spotted new filings that paused the class action case against JoLynn. I reached out to Danny to find out what happened. We're pausing the lawsuit to see if we can work

out a settlement in class actions. These two sides, with seemingly irreconcilable differences, had agreed to meet and talk. To possibly find common ground. This seems strange, because think about what would have to happen for both sides to be satisfied. Dani wants Jolynn to admit guilt. To say she created fake rescues to be able to keep selling purebred puppies.

But if she did that, she'd be saying, on the record, she committed mail fraud and money laundering. That doesn't seem likely. JoLynn has always denied doing anything illegal. Of course, we don't know what JoLynn wants, but she probably doesn't want to end up in prison. And it's safe to say silence is part of her strategy. Why would she suddenly consider compromising? Danny insisted the fact that they had started talking about a settlement didn't necessarily mean anything other than to talk and see if they can find an agreement.

If there is a settlement, it would be something that, you know, adequately resolved the concerns of both the class and the class representatives. His team still plans to make sure she doesn't just get another slap on the wrist. Mindy Callison didn't realize the case could be headed towards a settlement until I reached out. I feel like, especially when it comes to the puppy mill industry, the animals almost always lose. And it shows that if you are grossing millions and millions of dollars a year, that it's really easy to litigate your way out of trouble. Mindy wants to see criminal consequences. I just hope that someday the people who are committing charity fraud and committing puppy

laundering have to be held accountable for their actions. This means the only case that isn't trying to be settled yet is the case of PetConnect Rescue. Remember Lisette Chanik? She's based in Maryland, but started getting calls from some people who'd bought sick puppies from a different PetConnect Rescue in Missouri. I mean, these poor dogs, I feel for the dogs, but the fact that people are trying to make a profit off of these animals and pretending to be rescues just made me very, very, very angry. Her attorney, Brian Pease, filed a lawsuit against PetConnect Rescue in Missouri. They accused Jax of selling puppies through the fake PetConnect. So Jax would purchase them from the breeder. Then in these simultaneous transactions in their database,

the puppies would be transferred to Choice Puppies, and then from there to PetConnect Rescue. JoLynn, of course, has always pointed out that her company was never found guilty and calls accusations like these unfounded. The defendants in this case have filed to get the whole lawsuit thrown out of court. They're just taking the same typical position of claiming that, you know, nothing to see here. We were just providing rescue puppies to California consumers. Bryant submitted evidence that PetConnect Rescue did $12 million in sales when it was in operation. That's how much revenue the defendants generated

through illicit use of the PetConnect Rescue name. He's not sure if they'll settle, but for now, the case is heading to trial. And even though the other cases settled or are heading in that direction, Brian thinks they've been effective. He told me that this small wave of lawsuits is teaching others in the industry

what could happen if they try the same thing. I think the puppy millers realize this is a bad business model, bad decision to just set up fake rescues and try to go forward because, you know, they're getting hammered by both, you know, from everywhere from the Iowa attorney general shutting down their first main sham rescue they set up

to now dealing with all these lawsuits that we filed in California. He thinks Jax and the other accused businesses won't be opening any new rescues. I don't think you'll see them try to do that again, but who knows? It is very lucrative, so. Ryan told me that he doesn't have much faith in law enforcement, but still hopes that at some point a prosecutor will decide to get involved. The fraud that these people engaged in, it was criminal fraud, and it would be nice to see some accountability there rather than just hitting them in the pocketbook.

So even if Brian is right and Jack's Puppies gets out of the rescue business, there are others out there accused of having a similar idea and opening fake rescues. There are also still puppy mills and a USDA that's considered unreliable. So what's left for consumers? How can we avoid giving money to anyone connected to animal cruelty? I tried to find that out too. I've talked a lot about how secretive dog breeders can be. But not all of them are. There are also plenty who insist you visit.

Like Robin Crum. We stopped by her farm in Iowa. My producer, Natalie, and I visited a couple reputable breeders. Hi, Natalie. Robin runs Royal Air German Shepherds. Her website has this quote attributed to Mark Twain. If you tell the truth, you don't have to remember anything. She was happy to show us around her farm, taking us straight into a shed that's back wall was lined with kennels.

She let this big adult German shepherd out of his cage. Stryker? Hi. That rustling and my dog voice kicking in was because Stryker immediately got on his hind legs and hugged me. He was standing tall enough that he could pretty much look me right in the eyes. Robin called him her main guy because he fathers most of the puppies. Her animals were excited to see people, not scared. A lot of people have 40, 50, 100 dogs. I work full-time with seven dogs, and I can't train them enough with that many dogs. USDA documents show some breeders with 100 or 150.

Others have more than 300 adult breeding dogs. You can be a good breeder without being a hoarder. Robin would never sell to somewhere like Jack's Puppies, though. I'd never sell to a broker that's going to sell to somebody else. But I feel since 99.9% of your dogs are going to regular families, that's what you should breed them for. They want a family pet and protector that you don't have to put away when the neighbors come over. And that's what I'm trying to do. Robin makes money, but her business doesn't put money ahead of the animals. She insists on Googling and meeting the people who want to adopt her puppies. So this isn't a question of whether good breeders exist. It's about how not

everyone who wants a puppy realistically will or even can visit a dog breeder. That's why people will buy a puppy online or go to a pet store. We know what the USDA allows, and that a license doesn't necessarily mean the dogs are treated well. This is graphic, but I read one USDA report where a dog breeder in Iowa threw a bag of dead puppies at an inspector. After that stunt, a local newspaper wrote his license was suspended for 21 days, but he's back in business. And in March of this year, that breeder had 666 dogs. Commercial breeders know their reputation is on the ropes, which is why some want a way to show they go beyond what the USDA requires. That's why they turned to Candice Crony.

I'm an animal behavior scientist who's trained in the field of animal welfare science. So my background work is studying the behavioral responses of animals, why they do what they do. She's a professor at Purdue University who is working with commercial breeders. Candice and I are talking over Zoom. She's in her home in Indiana. Candice first got interested in this subject when a group of Amish dog breeders asked her to come look at their

facilities. By the way, an animal rights group called CAPS got several Amish dog breeders on camera saying they sell to Jack's puppies. Several of them had gotten a message that people were not happy with what they were doing, but they didn't understand why. Candace went with a group to see what she thought would likely be puppy mills. And I couldn't imagine why anyone would want me to see that. The facilities she saw actually ended up being surprisingly clean, and dogs seemed well-fed. I was, however, surprised and sad to see there were many dogs in forms of housing that really looked more like livestock housing. Most of them at that time did not have outdoor access.

The space did meet USDA requirements, but the spaces were still very small. For dogs for whom that was their entire living space, that was problematic. To her, the dogs seemed scared. When the Amish asked what she thought, she tried to give both the positives and the negatives. And this is the equivalent of going to someone's home who's kindly invited you to dinner, and you don't really like the dinner, right? At first, she didn't think they seemed ready to listen to her suggestions. But over time, that changed. And the Amish breeders decided to update

their housing and create environments that will breed dogs who are more prepared to be members of someone's family. Candace got an idea. If the Amish breeders wanted to go above and beyond what the USDA requires, maybe others would too. So Canda started something called Canine Care Certified. Think of it like a good housekeeping seal of approval, but for puppies. It's a voluntary program dog breeders sign up to join to set themselves apart from bad actors. When you're certified by Canine Care, you're telling consumers that you are really trying to do better than the average. She's reminded me several times that any breeder in the program is choosing to be a member. They would be voluntary so that any breeder who wanted to not just meet the existing USDA standards,

but really exceed them in a way that helped to better meet the dog's needs, but better meet public expectations as well, could really do these standards and demonstrate clearly and transparently for anyone who's interested that they were actually doing what they said they were doing. Canine Care's website recommends consumers ask for proof a puppy's breeder is currently certified in the program. Candice's team measures breeders by five different standards. The physical health of their animals, their behavioral health, how good their environment is when they are breeding, and how good their retirement is after. Their last standard is something called caretaker expectations. The

caretakers are the breeders. They have to take part in continuing education programs and agree to a certain amount of transparency. Just this March, Candice approved 100 breeders to be part of the program. All the new members were audited by a third-party certification company. And they'll be audited again every 16 months, as long as they're in the program. This, though, is just one of the attempts out there to rebuild trust. Candace told me that she's disappointed by how political the dog industry has managed to become. But in a multi-billion dollar industry, all of which profits off of the dog, the fact that we are not doing more specifically on dog welfare, and I think it does a disservice to all parties that are involved, and especially the dogs. I think based on everything we've learned from this investigation, we can say the current system of regulating breeders lets animal cruelty happen.

So we've talked about this canine care program, but what about the USDA? You know, the one using tax dollars. There are efforts to try and fix that too. More than 500 dogs were taken from a breeder in southern Iowa. Daniel Gingrich agreed to surrender the animals after being accused of violating the Animal Welfare Act 120 times. A dog breeder from an Amish community had more than 500 dogs confiscated from him in

2021. He'd had documented violations, but was allowed to stay open until last year. In a report, inspectors had written about golden retriever number 142. It had documented violations, but was allowed to stay open until last year. In a report, inspectors had written about golden retriever number 142. Her name was Goldie. She was so thin you could see her rib cage. An inspector noted her condition, knew she was starving for months, but never removed the dog. Conditions at this puppy mill sparked so much outrage, a bill has been proposed in Congress to give inspectors more power. It was introduced by Congresswoman Cindy Axne, a representative from Iowa. Here she is talking in a local news story

about what she named Goldie's Act. We need the USDA to step up and enforce proper inspections, proper penalties. This bill would require inspectors remove animals they see suffering immediately, require inspectors to issue penalties, and then share violations with local law enforcement within 24 hours. Some of these breeders make money hand over fist, tens of thousands of dollars every month. And we've got to make sure that any penalty reflects the kind of money that they're making. This would be much stricter than what's currently in place. Right now, a dog breeder doesn't even have to answer the door if an inspector shows up to look at the property.

There's bipartisan support for these ideas, and a bill like this could rebuild trust in the USDA and the whole pet industry, something they definitely need, because there are still plenty of business owners accused of not being straight with consumers. They want us to operate as a rescue. That's what the law that they passed requires us to do.

That is what we are doing. Okay? We are not trying to be two-faced. That's next. The city of Chicago was the first place where fake rescues got noticed. Since then, the ban on sales of commercially bred puppies have moved way beyond the city limits. There's a statewide prohibition now. Illinois pet stores will

no longer be able to sell commercially bred puppies. Governor J.B. Pritzker signed the bill today. Meaning now, as of February 2022, even in the suburbs, pet stores couldn't sell puppies anymore. But some stores haven't given up on doing business. I apologize if I'm the only item on the agenda tonight, and I took you away from your families for this. This is Lane Bourne. He is speaking at a planning commission meeting in the town of Arlington Heights, Illinois, just northwest of Chicago. Chairman, you can start the meeting.

The meeting is happening over Zoom. Lane has his camera off. just northwest of Chicago. Chairman, you can start the meeting. The meeting is happening over Zoom. Lane has his camera off. He's asking that the zoning of his current pet store, Pocket Puppies, be changed so that he can open Little Paw Rescue in the same location. Basically, Lane wants to turn his for-profit pet store into a for-profit rescue. Little Paw would be an animal shelter focusing on the adoption of small dogs that are larger than 15 pounds. What became clear watching the meeting, though,

was that the commission didn't seem to buy into what Lane was saying. You will be a not-for-profit, but you actually will have a business model and you will make some return above your costs and so forth. So I can't see that this is actually going to change your operation at all. You're going to continue doing what you did as a pet shop, but with different terminology. In other words, your rescue isn't a rescue if it doesn't rescue dogs from anything. That's when Lane kind of lost it. You want to shut me down? Do it. Okay. I'll go to Wisconsin. But I don't like being accused of being a deceitful person. It's not me. Okay. I got into this because I love animals.

A commissioner asked how much Lane will charge. So if I come to your facility and I want to attack one of the dogs as you described them, what is the whole range? What's the minimum and the maximum fee that I might find in your rescue? It's tough to say, Commissioner. I would... What is the maximum I might encounter? Is it $100,000? Is it $10,000? Is it $1,000? I'd like to get some sense of the order of magnitude. It could be, you know, it could be $1,000 for an adoption fee. $1,000. Lane seemed to be using an awfully familiar playbook. Back when he had a store in Chicago,

the city fined him for bringing in puppies from puppy mills after the ban. But now here, he represents exactly the trend we were told might happen. People trying to protect their livelihoods by creating nonprofits. One commissioner said he didn't see a big difference between Lane's proposed nonprofit and his pet store. He said it was a distinction without a difference. If it walks like a duck, talks like a duck, it is a duck. And it appears to me that this rescue, quote unquote rescue, is really a retail operation, no matter how you repurpose it or rebrand it.

It just doesn't feel right. And yet, fake rescues will spread if no one stands in their way. The Iowa AG closed Jolin's fake rescues. But it's not like other fake rescues won't crop up. They already have. There's one more out of Ohio who the breeder himself is a two-time horrible 100 puppy mill owner and they started a rescue on the same property and they're basically selling rescue puppies on their own website. Mindy Callison went on the local news in Ohio to try to warn dog

buyers. Here's what the owner told NBC4 in Columbus, Ohio. Owner and Dogs to the Rescue President Nathan Basler, who said, quote, To date, Dogs to the Rescue has taken in strays, owner surrenders, and homeless puppies. When asked for records, he said they don't keep them because they're not required to. He said it was surprising how easy it was to become a 501c3, and rescues, including the Humane Society, need more regulation. There's also at least one other accused fake rescue in Missouri that used to sell puppies in Chicago. But here's the thing. The Planning Commission voted not to recommend Lane be given the change he needed to open Little Paw Rescue. The New York attorney general has filed a case

accusing pet stores of puppy laundering, citing the Iowa AG's case and claiming at least some of the puppies came from Jack's. All of these civil lawsuits that we're bringing are meaningful because they do bring a lot of awareness to what's happening. But I really, truly hope that more attorney generals and the IRS gets involved in these laundering cases because what's happening is charity fraud.

There's still a lot to figure out when it comes to animal welfare and the possibility of criminal charges. But in the end, some people are figuring out that this is a scam. And maybe with time, fewer and fewer people will fall for it. The lighthearted marketing used to work. But now I think we're past that, aren't we? The company names, pocket puppies, bark adoptions, the names of the breeds themselves. Maltipoo.

We uncovered a bizarre world where words like that have to be said with a straight face by prosecutors because there's nothing silly or funny about what they're accusing these businesses of doing. By trying to go around the law, Jolynn and Kimberly exposed how far they go to keep the details around their business secret. We now see what they're doing. They can't hide anymore. We'll be right back. Lead producer is Natalie Wren. Our editor is Catherine St. Louis. Chloe Chobol is our associate producer. Managing producer is Samantha Allison. Executive producer at Neon Hum is Jonathan Hirsch. Fact-checking by Sarah Ivry.

Asha Ivanovich composed the theme song and music heard throughout this series. Additional tracks by Epidemic Sound and Blue Dot Sessions. Sound design and mixing by Hans Dale Shee. Special thanks to Odelia Rubin, Kate Mishkin, Crystal Genesis, Muna Danish, and Joanna Clay.