Federal Trade Commission v. Wealth Educators, Inc. et al

Filing 24

PRELIMINARY INJUNCTION WITH ASSET FREEZE AND OTHER RELIEF against Defendants Wealth Educators, Inc., also d/b/a Family 1st Preservations, Family 1st Home Loans, Legal Affiliates & Associates, Legal Educators, & Co., Family 1st Home Preservation, Legal Educators USA & Co., Stargate Mutual &Associates, Providence Financial Advocates, and Providence Financial Audits, and Veronica Sesma, also d/b/a Sesma Consulting. (SEE DOCUMENT FOR DETAILED SPECIFICS THEREIN) by Judge S. James Otero (lc)

1
2
3
4
5
6
7
8
9
10
11
12

JONATHAN E. NUECHTERLEIN
General Counsel
CHARLES A. HARWOOD
Regional Director
ELEANOR DURHAM, MD Bar
[e-mail]
MAXINE R. STANSELL, WA Bar # 9418
[e-mail]
Federal Trade Commission
915 2nd Ave., Suite 2896, Seattle, WA 98174
[phone] (Durham); [phone] (Stansell)
[phone] (fax)
BARBARA CHUN, CA Bar # 186907 (Local counsel)
[e-mail]
10877 Wilshire Blvd., Suite 700, Los Angeles, CA 90024
[phone] (Chun); [phone] (fax)
ATTORNEYS FOR PLAINTIFF FEDERAL TRADE COMMISSION

13
14

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

15
16
17
18
19
20
21
22
23
24
25
26
27
28

)
)
)
Plaintiff,
)
)
)
vs.
)
)
)
WEALTH EDUCATORS, INC., also )
d/b/a Family 1st Preservations; Family )
)
1st Home Loans; Legal Affiliates &
)
Associates; Legal Educators & Co.;
)
st
)
Family 1 Home Preservation; Legal
)
Educators USA & Co.; Stargate Mutual )
)
& Associates; Providence Financial
Advocates; and Providence Financial )
)
Audits; and VERONICA SESMA, also )
)
d/b/a Sesma Consulting,
)
)
)
Defendants.
)

FEDERAL TRADE COMMISSION,

[Proposed] Preliminary Injunction – Page 1

No. CV-15-2357 SJO (JEMx)

PRELIMINARY INJUNCTION WITH
ASSET FREEZE AND OTHER
RELIEF
Date: May 4, 2015
Time: 10:00 a.m.
Place: Courtroom 1, the Honorable
Judge S. James Otero

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

Plaintiff, Federal Trade Commission (“FTC” or “Commission”), filed its

2

Complaint for Permanent Injunction and Other Equitable Relief and Ex Parte

3

Application for Temporary Restraining Order with Asset Freeze and Other Relief

4

and Order to Show Cause Why Preliminary Injunction Should Not Issue (“Order”)

5

on March 31, 2015. The Court entered the requested Order on April 6, 2015.

6

Defendants were served with the Order and other related papers on April 8, 2015.

7

Returns of Service have been filed by Plaintiff via ECF (Dkt. 19 and 20).

8
9

Having considered the parties’ pleadings, papers, and argument, the Court
hereby GRANTS the Preliminary Injunction against Defendants Wealth

10

Educators, Inc., also d/b/a Family 1st Preservations, Family 1st Home Loans, Legal

11

Affiliates & Associates, Legal Educators, & Co., Family 1st Home Preservation,

12

Legal Educators USA & Co., Stargate Mutual &Associates, Providence Financial

13

Advocates, and Providence Financial Audits, and Veronica Sesma, also d/b/a

14

Sesma Consulting.
FINDINGS

15
16

1.

This Court has jurisdiction over the subject matter of this case.

17

2.

Venue is proper in this District.

18

3.

The Court finds that the extensive evidence provided by the FTC is

19

sufficient to demonstrate a likelihood of success on the merits with respect to its

20

Complaint allegations that Wealth Educators, Inc., and Veronica Sesma violated

21

Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), by making false claims to induce

22

consumers to purchase mortgage assistance relief services (“MARS”) and failing

23

to provide consumers with promised refunds when they were unable to secure the

24

promised MARS.

25

4.

The Court finds that the extensive evidence provided by the FTC is

26

sufficient to demonstrate a likelihood of success on the merits with respect to its

27

Complaint allegations that Wealth Educators, Inc., and Veronica Sesma violated

28

Regulation O, 12 C.F.R. §§ 1015.3 – 1015.5, by collecting illegal advance fees, by
[Proposed] Preliminary Injunction – Page 2

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

misrepresenting the time it will take to obtain a loan modification, and by failing to

2

make required disclosures.

3

5.

There is good cause to believe that immediate and irreparable harm

4

will result from Defendants’ ongoing violations of Section 5(a) of the FTC Act, 15

5

U.S.C. § 45(a), and Regulation O, 12 C.F.R. §§1015.3 – 1015.5, unless Defendants

6

are restrained and enjoined by Order of this Court.

7

6.

There is good cause to believe that immediate and irreparable harm to

8

the Court’s ability to grant effective final relief for consumers in the form of

9

monetary restitution and disgorgement of ill-gotten gains will occur from the

10

transfer, dissipation, or concealment by Defendants of their assets or business

11

records unless Defendants are restrained and enjoined by Order of this Court.

12

7.

Because the injunction will preclude only harmful, illegal behavior,

13

the public equities supporting injunctive relief outweigh any burden imposed by

14

such relief on Defendants and the requested relief is in the public interest.

15
16

8.

No security is required of any agency of the United States for the

issuance of a temporary restraining order. Fed. R. Civ. P. 65(c).

17

ORDER

18

DEFINITIONS

19

1.

“Asset” or “Assets” means any legal or equitable interest in, right to,

20

or claim to, any real, personal, or intellectual property of any Defendant, or held

21

for the benefit of any Defendant, wherever located, whether in the United States or

22

abroad, including, but not limited to, chattel, goods, instruments, equipment,

23

fixtures, general intangibles, effects, leaseholds, contracts, mail or other deliveries,

24

shares of stock, commodities, futures, inventory, checks, notes, accounts, credits,

25

receivables (as those terms are defined in the Uniform Commercial Code), cash,

26

and trusts, including, but not limited to, any trust held for the benefit of any

27

Defendant, any of the Individual Defendant’s minor children, or any of the

28
[Proposed] Preliminary Injunction – Page 3

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

Individual Defendant’s spouses, and shall include both existing assets and assets

2

acquired after the date of entry of this Order.

3

2.

4

“Assisting others” includes:
a.

5

performing customer service functions, including receiving or
responding to consumer complaints;

b.

6

formulating or providing, or arranging for the formulation or

7

provision of, any advertising or marketing material, including

8

any telephone script, direct mail solicitation, or the design, text,

9

or use of images of any Internet website, email, or other
electronic communication;

10

c.

11

formulating or providing, or arranging for the formulation or

12

provision of, any marketing support material or service,

13

including web or Internet Protocol addresses or domain name

14

registration for any Internet websites, affiliate marketing

15

services, or media placement services;
d.

16

customers;

17

e.

18

performing marketing, billing, or payment services of any kind;
or

19

f.

20

acting or serving as an owner, officer, director, manager, or
principal of any entity.

21
22

providing names of, or assisting in the generation of, potential

3.

“Commercial communication” means any written or oral statement,

23

illustration, or depiction, whether in English or any other language, that is designed

24

to effect a sale or create interest in purchasing any service, plan, or program,

25

whether it appears on or in a label, package, package insert, radio, television, cable

26

television, brochure, newspaper, magazine, pamphlet, leaflet, circular, mailer, book

27

insert, free standing insert, letter, catalogue, poster, chart, billboard, public transit

28

card, point of purchase display, film, slide, audio program transmitted over a
[Proposed] Preliminary Injunction – Page 4

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

telephone system, telemarketing script, onhold script, upsell script, training

2

materials provided to telemarketing firms, program-length commercial

3

(“infomercial”), the internet, cellular network, or any other medium. Promotional

4

materials and items and Web pages are included in the term “commercial

5

communication.”

6

4.

“Consumer-specific commercial communication” means a

7

commercial communication that occurs prior to the consumer agreeing to permit

8

the provider to seek offers of mortgage assistance relief on behalf of the consumer,

9

or otherwise agreeing to use the mortgage assistance relief service, and that is

10
11

directed at a specific consumer.
5.

“General commercial communication” means a commercial

12

communication that occurs prior to the consumer agreeing to permit the provider to

13

seek offers of mortgage assistance relief on behalf of the consumer, or otherwise

14

agreeing to use the mortgage assistance relief service, and that is not directed at a

15

specific consumer.

16

6.

“Defendants” means the Individual Defendant and the Corporate

17

Defendant, individually, collectively, or in any combination, and each of them by

18

whatever names each might be known.
a.

19

“Corporate Defendant” means Wealth Educators, Inc., and its

20

successors, assigns, affiliates, or subsidiaries, and each of them

21

by whatever names each might be known.
b.

22

names by which she might be known.

23
24

“Individual Defendant” means Veronica Sesma and any other

7.

“Document” and “electronically stored information” are

25

synonymous in meaning and equal in scope to the usage of the terms in Rule 34(a)

26

of the Federal Rules of Civil Procedure and include, but are not limited to:

27
28

a.

The original or a true copy of any written, typed, printed,
electronically stored, transcribed, taped, recorded, filmed,

[Proposed] Preliminary Injunction – Page 5

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

punched, or graphic matter or other data compilations of any

2

kind, including, but not limited to, letters, email or other

3

correspondence, messages, memoranda, interoffice

4

communications, notes, reports, summaries, manuals, magnetic

5

tapes or discs, tabulations, books, records, checks, invoices,

6

work papers, journals, ledgers, statements, returns, reports,

7

schedules, or files; and
b.

8

Any electronically stored information stored on any
Blackberrys, flash drives, personal digital assistants (“PDAs”),

9
10

desktop personal computer and workstations, laptops,

11

notebooks, and other portable computers, or other electronic

12

storage media, whether assigned to individuals or in pools of

13

computers available for shared use, or personally owned but

14

used for work-related purposes; backup disks and tapes, archive

15

disks and tapes, and other forms of offline storage, whether

16

stored onsite with the computer used to generate them, stored

17

offsite in another company facility, or stored, hosted, or

18

otherwise maintained offsite by a third party; and computers

19

and related offline storage used by Defendants or Defendants’

20

participating associates, which may include persons who are not

21

employees of the company or who do not work on company

22

premises.

23
24
25

8.

“Electronic data host” means any person or entity that stores, hosts,

or otherwise maintains electronically stored information.
9.

“Financial institution” means any bank, savings and loan institution,

26

credit union, or any financial depository of any kind, including, but not limited to,

27

any brokerage house, trustee, broker-dealer, escrow agent, title company,

28

commodity trading company, or precious metal dealer.
[Proposed] Preliminary Injunction – Page 6

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1
2
3

10.

“Material fact” means any fact that is likely to affect a person’s

choice of, or conduct regarding, goods, or services.
11.

“Mortgage assistance relief service” means any product, service,

4

plan, or program, offered or provided to the consumer in exchange for

5

consideration, that is represented, expressly or by implication, to assist or attempt

6

to assist the consumer with any of the following:

7

a.

stopping, preventing, or postponing any mortgage or deed of

8

trust foreclosure sale for the consumer’s dwelling, any

9

repossession of the consumer’s dwelling, or otherwise saving
the consumer’s dwelling from foreclosure or repossession;

10
11

b.

negotiating, obtaining, or arranging a modification of any term

12

of a dwelling loan, including a reduction in the amount of

13

interest, principal balance, monthly payments, or fees;

14

c.

obtaining any forbearance or modification in the timing of

15

payments from any dwelling loan holder or servicer on any

16

dwelling loan;

17

d.

negotiating, obtaining, or arranging any extension of the period

18

of time within which the consumer may (i) cure his or her

19

default on a dwelling loan, (ii) reinstate his or her dwelling

20

loan, (iii) redeem a dwelling, or (iv) exercise any right to

21

reinstate a dwelling loan or redeem a dwelling;

22

e.

obtaining any waiver of an acceleration clause or balloon

23

payment contained in any promissory note or contract secured

24

by any dwelling; or

25

f.

negotiating, obtaining, or arranging (i) a short sale of a

26

dwelling, (ii) a deed-in-lieu of foreclosure, or (iii) any other

27

disposition of a dwelling other than a sale to a third party who

28

is not the dwelling loan holder.
[Proposed] Preliminary Injunction – Page 7

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

The foregoing shall include any manner of claimed assistance, including, but not

2

limited to, auditing or examining a consumer’s mortgage or home loan application

3

and offering to provide or providing legal services.

4

12.

“Person” means a natural person, organization, or other legal entity,

5

including a corporation, partnership, proprietorship, association, cooperative, or

6

any other group or combination acting as an entity.

7

I.

8

PROHIBITION ON COLLECTION OF ADVANCE FEES

9

IT IS THEREFORE ORDERED that Defendants and their officers,

10

agents, servants, employees, and attorneys, and those persons or entities in active

11

concert or participation with any of them who receive actual notice of this Order

12

by personal service, facsimile transmission, email, or otherwise, whether acting

13

directly or through any corporation, subsidiary, division, or other device, in

14

connection with providing, offering to provide, or arranging for others to provide

15

any mortgage assistance relief service, are hereby preliminarily restrained and

16

enjoined from requesting or receiving payment of any fee or other consideration

17

before the consumer has executed a written agreement between the consumer and

18

the consumer’s dwelling loan holder or servicer incorporating the offer of

19

mortgage assistance relief that a Defendant obtained from the consumer’s dwelling

20

loan holder or servicer on the consumer’s behalf, in violation of Section 1015.5(a)

21

of Regulation O, 12 C.F.R. § 1015.5(a).
II.

22
23
24

REPRESENTATIONS PROHIBITED BY SECTION 5 OF THE FTC ACT
IT IS FURTHER ORDERED that Defendants and their officers, agents,

25

servants, employees, and attorneys, and those persons or entities in active concert

26

or participation with any of them who receive actual notice of this Order by

27

personal service, facsimile transmission, email, or otherwise, whether acting

28

directly or through any corporation, subsidiary, division, or other device, in
[Proposed] Preliminary Injunction – Page 8

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

connection with the advertising, marketing, promotion, offering for sale, or sale of

2

any mortgage assistance relief service, are hereby preliminarily restrained and

3

enjoined from engaging in, or assisting others in engaging in, the following

4

conduct:

5

A.

Misrepresenting, directly or indirectly, expressly or by implication,

6

that Defendants typically will obtain mortgage loan modifications for

7

consumers that will make consumers’ payments substantially more

8

affordable, substantially lower their interest rates, or help them avoid

9

foreclosure;

10

B.

Misrepresenting, directly or indirectly, expressly or by implication,

11

that Defendants will provide legal services, including forensic audits;

12

and

13

C.

Misrepresenting, directly or indirectly, expressly or by implication,

14

that Defendants will refund the consumer’s fee if Defendants fail to

15

obtain the promised mortgage loan modification.
III.

16
17

REPRESENTATIONS PROHIBITED AND DISCLOSURES REQUIRED

18

BY REGULATION O

19

IT IS FURTHER ORDERED that Defendants and their officers, agents,

20

servants, employees, and attorneys, and those persons or entities in active concert

21

or participation with any of them who receive actual notice of this Order by

22

personal service, facsimile transmission, email, or otherwise, whether acting

23

directly or through any corporation, subsidiary, division, or other device, in

24

connection with providing, offering to provide, or arranging for others to provide

25

any mortgage assistance relief service, are hereby preliminarily restrained and

26

enjoined from engaging in the following conduct:

27
28

A.

Representing, expressly or by implication, in connection with the
advertising, marketing, promotion, offering for sale, sale, or

[Proposed] Preliminary Injunction – Page 9

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

performance of any mortgage assistance relief service, that a

2

consumer cannot or should not contact or communicate with his or her

3

lender or servicer, in violation of Section 1015.3(a) of Regulation O,

4

12 C.F.R. § 1015.3(a);

5

B.

Misrepresenting, expressly or by implication, any material aspect of

6

any mortgage assistance relief service, including, but not limited to:

7

1.

The likelihood of negotiating, obtaining, or arranging any

8

represented service or result, including, but not limited to, the

9

likelihood of negotiating, obtaining, or arranging a modification

10

of any term of a dwelling loan, including a reduction in the

11

amount of interest, principal balance, monthly payments, or

12

fees, in violation of Section § 1015.3(b)(1) of Regulation O,

13

12 C.F.R. § 1015.3(b)(1);

14

2.

The amount of time it will take the mortgage assistance relief

15

service provider to accomplish any represented service or

16

result, in violation of Section 1015.3(b)(2) of Regulation O,

17

12 C.F.R. § 1015.3(b)(2);

18

3.

That a mortgage assistance relief service is affiliated with,

19

endorsed or approved by, or otherwise associated with the

20

government or the maker, holder, or servicer of the consumer’s

21

dwelling loan, in violation of Section 1015.3(b)(3) of

22

Regulation O, 12 C.F.R. § 1015.3(b)(3);

23

4.

The terms or conditions of any refund, cancellation, exchange,

24

or repurchase policy for a mortgage assistance relief service,

25

including, but not limited to, the likelihood of obtaining a full

26

or partial refund, or the circumstances in which a full or partial

27

refund will be granted, for a mortgage assistance relief service,

28
[Proposed] Preliminary Injunction – Page 10

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

in violation of Section 1015.3(b)(6) of Regulation O, 12 C.F.R.

2

§ 1015.3(b)(6); or

3

5.

That the consumer will receive legal representation, in violation

4

of Section 1015.3(b)(8) of Regulation O, 12 C.F.R.

5

§ 1015.3(b)(8);

6

C.

Failing to disclose the following information in all general

7

commercial communications and all consumer-specific commercial

8

communications:

9

1.

“[Name of Company] is not associated with the government,

10

and our service is not approved by the government or your

11

lender,” in violation of Section 1015.4(a)(1) and (b)(2) of

12

Regulation O, 12 C.F.R. § 1015.4(a)(1) and (b)(2); and
2.

13

In cases where the mortgage assistance relief service provider

14

has represented, expressly or by implication, that consumers

15

will receive any service or result set forth in paragraphs (2)

16

through (6) of the definition of “Mortgage Assistance Relief

17

Service,” Section 1015.2 of Regulation O, 12 C.F.R. § 1015.2,

18

“Even if you accept this offer and use our service, your lender

19

may not agree to change your loan,” in violation of Section

20

1015.4(a)(2) and (b)(3) of Regulation O, 12 C.F.R.

21

§ 1015.4(a)(2) and (b)(3).

22

D.

Failing to disclose the following information in all consumer-specific

23

commercial communications: “You may stop doing business with us

24

at any time. You may accept or reject the offer of mortgage assistance

25

we obtain from your lender [or servicer]. If you reject the offer, you

26

do not have to pay us. If you accept the offer, you will have to pay us

27

[insert amount or method for calculating the amount] for our

28

services,” in violation of Section 1015.4(b)(1) of Regulation O,
[Proposed] Preliminary Injunction – Page 11

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

12 C.F.R. § 1015.4(b)(1). For the purposes of this section, the amount

2

“you will have to pay” shall consist of the total amount the consumer

3

must pay to purchase, receive, and use all of the mortgage assistance

4

relief services that are the subject of the sales offer, including but not

5

limited to, all fees and charges.

6
7
8
9

IV.
PRESERVATION OF RECORDS AND TANGIBLE THINGS
IT IS FURTHER ORDERED that Defendants and their officers, agents,
servants, employees, and attorneys, and those persons or entities in active concert

10

or participation with any of them who receive actual notice of this Order by

11

personal service, facsimile transmission, email, or otherwise, whether acting

12

directly or through any corporation, subsidiary, division, or other device, are

13

hereby preliminarily enjoined from destroying, erasing, mutilating, concealing,

14

altering, transferring, or otherwise disposing of, in any manner, directly or

15

indirectly, any documents or records that relate to the business practices, or

16

business or personal finances, of Defendants, or other entity directly or indirectly

17

under the control of Defendants.
V.

18
19
20

DISABLEMENT OF WEBSITES
IT IS FURTHER ORDERED that immediately upon service of the Order

21

upon them and pending determination of the FTC’s request for a preliminary

22

injunction, (1) any person hosting any Internet website for, or on behalf of, any

23

Defendant, and (2) Defendants and their officers, agents, servants, employees, and

24

attorneys, and those persons or entities in active concert or participation with any

25

of them who receive actual notice of this Order by personal service, facsimile

26

transmission, email, or otherwise, whether acting directly or through any

27

corporation, subsidiary, division, or other device, shall:

28
[Proposed] Preliminary Injunction – Page 12

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

A.

Immediately do whatever is necessary to ensure that any Internet

2

website used by Defendants for the advertising, marketing, promotion,

3

offering for sale, or sale of any mortgage assistance relief service,

4

including, but not limited to family1sthps.com; legaleducatorsco.org;

5

legaleducatorsusa.org; thelegaleducators.com; smassociates.org;

6

pfadvocates.com; and pfaudits.com, and containing statements or

7

representations prohibited by Sections I, II, and III of this Order,

8

cannot be accessed by the public;

9

B.

Prevent the destruction or erasure of any Internet website used by

10

Defendants for the advertising, marketing, promotion, offering for

11

sale, or sale of any mortgage assistance relief service, by preserving

12

such website in the format in which it is maintained currently; and

13

C.

Immediately notify in writing counsel for the FTC of any other

14

Internet website operated or controlled by any Defendant not listed in

15

Subsection V.A above.
VI.

16
17

SUSPENSION OF INTERNET DOMAIN NAME REGISTRATIONS

18

IT IS FURTHER ORDERED that, pending determination of the FTC’s

19

request for a preliminary injunction, any domain name registrar shall suspend the

20

registration of any Internet website used by Defendants for the advertising,

21

marketing, promotion, offering for sale, or sale of any mortgage assistance relief

22

service, and containing statements or representations prohibited by Sections I, II,

23

and III of this Order, including, but not limited to, family1sthps.com;

24

legaleducatorsco.org; legaleducatorsusa.org; thelegaleducators.com;

25

smassociates.org; pfadvocates.com; and pfaudits.com, and provide immediate

26

notice to counsel for the FTC of any other Internet domain names registered or

27

controlled by any Defendants.

28
[Proposed] Preliminary Injunction – Page 13

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

VII.

2
3

ASSET FREEZE
IT IS FURTHER ORDERED that the Corporate Defendant, and its

4

officers, agents, servants, employees, and attorneys, and all persons or entities

5

directly or indirectly under the control of any of them, including any financial

6

institution, and all other persons or entities in active concert or participation with

7

any of them who receive actual notice of this Order by personal service, facsimile

8

transmission, email, or otherwise, are hereby preliminarily restrained and enjoined

9

from directly or indirectly:

10

A.

Selling, liquidating, assigning, transferring, converting, loaning,

11

hypothecating, disbursing, gifting, conveying, encumbering, pledging,

12

concealing, dissipating, spending, withdrawing, or otherwise

13

disposing of any funds, real or personal property, or other assets or

14

any interest therein, wherever located, including any assets outside the

15

territorial United States, that are:

16

1.

in the actual or constructive possession of the Corporate
Defendant; or

17

2.

18

owned or controlled by, or held, in whole or in part for the

19

benefit of, or subject to access by, or belonging to, the

20

Corporate Defendant; or in the actual or constructive possession

21

of, or owned or controlled by, or subject to access by, or belong

22

to, any corporation, partnership, trust, or other entity directly or

23

indirectly owned, managed, or under the control of the

24

Corporate Defendant;

25

B.

Opening, or causing to be opened, any safe deposit boxes titled in the

26

name of the Corporate Defendant, or subject to access by the

27

Corporate Defendant;

28
[Proposed] Preliminary Injunction – Page 14

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

C.

Incurring charges on any credit card, stored value card, debit card, or

2

charge card issued in the name, singly or jointly, of the Corporate

3

Defendant or any other entity directly or indirectly owned, managed,

4

or controlled by the Corporate Defendant;

5

D.

Defendant; or

6
7

E.

Cashing any checks from consumers, clients, or customers of the
Corporate Defendant; and

8
9

Obtaining a personal or secured loan for or on behalf of the Corporate

F.

The funds, property, and assets affected by this Section shall include:

10

(a) all assets of the Corporate Defendant as of the time this Order is

11

entered, including, without limitation, accounts held by Wealth

12

Educators, Inc., also d/b/a Family 1st Preservations; Family 1st Home

13

Loans; Legal Affiliates & Associates; Legal Educators & Co.; Family

14

1st Home Preservation; Legal Educators USA & Co.; Stargate Mutual

15

& Associates; Providence Financial Advocates; and Providence

16

Financial Audits; to the extent it may hold corporate accounts on

17

which Veronica Sesma is a signatory, and (b) those corporate assets

18

obtained or received after entry of this Order that are derived from the

19

actions alleged in Plaintiff’s Complaint. This Section does not

20

prohibit the Repatriation of Foreign Assets, as specifically required in

21

Section XI of this Order.

22
23
24
25
26
27
28
[Proposed] Preliminary Injunction – Page 15

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

VIII.

2

RETENTION OF ASSETS AND DOCUMENTS BY THIRD PARTIES

3

IT IS FURTHER ORDERED that, pending determination of the FTC’s

4

request for a preliminary injunction, any financial or brokerage institution,

5

business entity, electronic data host, or person served with a copy of this Order that

6

holds, controls, or maintains custody of any account, document, electronically

7

stored information, or asset of, on behalf of, in the name of, for the benefit of,

8

subject to withdrawal by, subject to access or use by, or under the signatory power

9

of any Defendant or other party subject to Section VII above, or has held,

10

controlled, or maintained any such account, document, electronically stored

11

information, or asset at any time since January 1, 2012, shall:

12

A.

Hold, preserve, and retain within such entity’s or person’s control, and

13

prohibit the withdrawal, removal, alteration, assignment, transfer,

14

pledge, hypothecation, encumbrance, disbursement, dissipation,

15

conversion, sale, liquidation, or other disposal of such account,

16

document, electronically stored information, or asset held by or under

17

such entity’s or person’s control, except as directed by further order of

18

the Court or as directed in writing by the Plaintiff regarding accounts,

19

documents, or assets held in the name of or benefit of any Defendant;

20

B.

Deny access to any safe deposit boxes that are either titled in the

21

name, individually or jointly, or subject to access by, any Defendant

22

or other party subject to Section VII above;

23

C.

Provide to counsel for the FTC, within one (1) business day, a sworn

24

statement setting forth:

25

1.

the identification of each account or asset titled in the name,

26

individually or jointly, or held on behalf of or for the benefit of,

27

subject to withdrawal by, subject to access or use by, or under

28
[Proposed] Preliminary Injunction – Page 16

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

the signatory power of any Defendant or other party subject to

2

Section VII above, whether in whole or in part;

3

2.

the balance of each such account, or a description of the nature

4

and value of such asset, as of the close of business on the day

5

on which this Order is served;
3.

6

the identification of any safe deposit box that is either titled in

7

the name of, individually or jointly, or is otherwise subject to

8

access or control by, any Defendant or other party subject to

9

Section VII above, whether in whole or in part; and
4.

10

if the account, safe deposit box, or other asset has been closed

11

or removed, the date closed or removed, the balance on said

12

date, and the name or the person or entity to whom such

13

account or other asset was remitted;

14

D.

Provide to counsel for the FTC within three (3) business days after

15

being served with a request, copies of all documents pertaining to

16

such account or asset, including, but not limited to, originals or copies

17

of account applications, account statements, signature cards, checks,

18

drafts, deposit tickets, transfers to and from the accounts, all other

19

debit and credit instruments or slips, currency transaction reports,

20

1099 forms, and safe deposit box logs; provided that such institution

21

or custodian may charge a reasonable fee; and

22

E.

Order’s implementation;

23
24

Cooperate with all reasonable requests of the Plaintiff relating to this

F.

The accounts subject to this provision include: (a) all assets of each

25

Defendant deposited as of the time this Order is entered, and (b) those

26

assets deposited after entry of this Order that are derived from the

27

actions alleged in Plaintiff’s Complaint. This Section does not

28
[Proposed] Preliminary Injunction – Page 17

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

prohibit the Repatriation of Foreign Assets, as specifically required in

2

Section XI of this Order; and

3

G.

The FTC is granted leave, pursuant to Fed. R. Civ. P. 45, to subpoena

4

documents immediately from any financial or brokerage institution,

5

business entity, electronic data host, or person served with a copy of

6

this Order that holds, controls, or maintains custody of any account,

7

document, electronically stored information, or asset of, on behalf of,

8

in the name of, for the benefit of, subject to withdrawal by, subject to

9

access or use by, or under the signatory power of any Defendant or

10

other party subject to Section VII above, or has held, controlled, or

11

maintained any such account, document, electronically stored

12

information, or asset at any time since January 1, 2012, and such

13

financial or brokerage institution, business entity, electronic data host,

14

or person shall respond to such subpoena within three (3) business

15

days after service.
IX.

16

FINANCIAL STATEMENTS AND ACCOUNTING

17
18

IT IS FURTHER ORDERED that each Defendant, within three (3)

19

business days of service of this Order, shall prepare and deliver to counsel for the

20

FTC:

21

A.

For the Individual Defendant, a completed financial statement

22

accurate as of the date of service of this Order upon such Defendant

23

on the form of Attachment A to this Order captioned “Financial

24

Statement of Individual Defendant”;

25

B.

For the Corporate Defendant, a completed financial statement

26

accurate as of the date of service of this Order upon such Defendant

27

(unless otherwise agreed upon with FTC counsel) in the form of

28
[Proposed] Preliminary Injunction – Page 18

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

Attachment B to this Order captioned “Financial Statement of

2

Corporate Defendant”; and

3

C.

For all Defendants, a list of all officers and directors of the Corporate

4

Defendant and all other individuals or entities with authority to direct

5

the operations of the Corporate Defendant or withdraw money from

6

the account of the Corporate Defendant.

7

X.
CONSUMER CREDIT REPORTS

8
9

IT IS FURTHER ORDERED that pursuant to Section 604(1) of the Fair

10

Credit Reporting Act, 15 U.S.C. § 1681b(1), any consumer reporting agency may

11

furnish to the FTC a consumer report concerning any Defendant.
XI.

12

REPATRIATION OF FOREIGN ASSETS

13
14
15
16

IT IS FURTHER ORDERED that, within five (5) business days following
the service of this Order, each Defendant shall:
a.

Provide counsel for the FTC with a full accounting of all assets,

17

accounts, funds, and documents outside of the territory of the

18

United States that are held either: (1) by Defendants; (2) for

19

their benefit; (3) in trust by or for them, individually or jointly;

20

or (4) under their direct or indirect control, individually or

21

jointly

22

b.

Provide counsel for the FTC with a full accounting of all assets,

23

accounts, funds, and documents outside of the territory of the

24

United States that are held either: (1) by Defendants; (2) for

25

their benefit; (3) in trust by or for them, individually or jointly;

26

or (4) under their direct or indirect control, individually or

27

jointly;

28
[Proposed] Preliminary Injunction – Page 19

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

c.

Transfer to the territory of the United States all assets, accounts,

2

funds, and documents in foreign countries held either: (1) by

3

Defendants; (2) for their benefit; (3) in trust by or for them,

4

individually or jointly; or (4) under their direct or indirect

5

control, individually or jointly; and
d.

6

Provide the FTC access to all records of accounts or assets of

7

the Corporate Defendant and Individual Defendant held by

8

financial institutions located outside the territorial United States

9

by signing the Consent to Release of Financial Records
attached to this Order as Attachment C.

10

e.

11

All repatriated assets, accounts, funds, and documents are
subject to Section VII of this Order.

12

XII.

13

NONINTERFERENCE WITH REPATRIATION

14
15

IT IS FURTHER ORDERED that Defendants are hereby preliminarily

16

restrained and enjoined from taking any action, directly or indirectly, that may

17

result in the encumbrance or dissipation of foreign assets, or in the hindrance of the

18

repatriation required by the preceding Section XI of this Order, including, but not

19

limited to:

20

A.

Sending any statement, letter, fax, email, or wire transmission, or

21

telephoning or engaging in any other act, directly or indirectly, that

22

results in a determination by a foreign trustee or other entity that a

23

“duress” event has occurred under the terms of a foreign trust

24

agreement until such time that all assets have been fully repatriated

25

pursuant to Section XI of this Order; or

26

B.

Notifying any trustee, protector, or other agent of any foreign trust or

27

other related entities of either the existence of this Order, or of the fact

28

that repatriation is required pursuant to a court order, until such time
[Proposed] Preliminary Injunction – Page 20

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

that all assets have been fully repatriated pursuant to Section XI of

2

this Order.

3

XIII.

4

PROHIBITION ON RELEASE OF CONSUMER INFORMATION

5

IT IS FURTHER ORDERED that, except as required by a law

6

enforcement agency, law, regulation, or court order, Defendants, and their officers,

7

agents, servants, employees, and attorneys, and all other persons in active concert

8

or participation with any of them who receive actual notice of this Order by

9

personal service, facsimile transmission, email, or otherwise, are preliminarily

10

restrained and enjoined from disclosing, using, or benefitting from consumer

11

information, including the name, address, telephone number, email address, social

12

security number, other identifying information, or any data that enables access to a

13

consumer’s account (including a credit card, bank account, or other financial

14

account), of any person which any Defendant obtained prior to entry of this Order

15

in connection with any mortgage assistance relief service.

16

XIV.

17

STAY OF ACTIONS

18

IT IS FURTHER ORDERED that:

19

A.

Except by leave of this Court, during pendency of the asset freeze

20

ordered herein, Defendants and all other persons and entities be and

21

hereby are stayed from taking any action to establish or enforce any

22

claim, right, or interest for, against, on behalf of, in, or in the name of,

23

the Corporate Defendant, or any of its subsidiaries, affiliates,

24

partnerships, or assets including, but not limited to, the following

25

actions:

26

1.

Commencing, prosecuting, continuing, entering, or enforcing

27

any suit or proceeding, except that such actions may be filed to

28

toll any applicable statute of limitations;
[Proposed] Preliminary Injunction – Page 21

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

2.

Accelerating the due date of any obligation or claimed

2

obligation; filing or enforcing any lien; taking or attempting to

3

take possession, custody, or control of any asset; attempting to

4

foreclose, forfeit, alter, or terminate any interest in any asset,

5

whether such acts are part of a judicial proceeding, are acts of

6

self-help, or otherwise; or
3.

7

Executing, issuing, serving, or causing the execution, issuance

8

or service of, any legal process, including, but not limited to,

9

attachments, garnishments, subpoenas, writs of replevin, writs

10

of execution, or any other form of process whether specified in

11

this Order or not.

12
13

B.

This Section does not stay:
1.

proceeding;

14
15

The commencement or continuation of a criminal action or

2.

The commencement or continuation of an action or proceeding

16

by the State Bar of California to enforce its police or regulatory

17

power;

18

3.

The commencement or continuation of an action or proceeding

19

by a governmental unit to enforce such governmental unit’s

20

police or regulatory power;

21

4.

The enforcement of a judgment, other than a money judgment,

22

obtained in an action or proceeding by a governmental unit to

23

enforce such governmental unit’s police or regulatory power; or

24

5.

The issuance to a Defendant of a notice of tax deficiency.
XV.

25

MONITORING

26
27

IT IS FURTHER ORDERED that agents or representatives of the FTC

28

may contact Defendants directly or anonymously for the purpose of monitoring
[Proposed] Preliminary Injunction – Page 22

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

compliance with this Order, and may tape-record any oral communications that

2

occur in the course of such contacts.

3

XVI.

4

DEFENDANTS’ DUTY TO DISTRIBUTE ORDER

5

IT IS FURTHER ORDERED that Defendants shall immediately provide a

6

copy of this Order to each affiliate, subsidiary, division, sales entity, successor,

7

assign, officer, director, employee, independent contractor, client company,

8

electronic data host, agent, attorney, spouse, and representative of Defendants and

9

shall, within three (3) calendar days from the date of entry of this Order, provide

10

counsel for the FTC with a sworn statement that: (a) confirms that Defendants

11

have provided copies of the Order as required by this Section, and (b) lists the

12

names and addresses of each entity or person to whom Defendants provided a copy

13

of the Order. Furthermore, Defendants shall not take any action that would

14

encourage officers, agents, directors, employees, salespersons, independent

15

contractors, attorneys, subsidiaries, affiliates, successors, assigns, or other persons

16

or entities in active concert or participation with Defendants to disregard this Order

17

or believe that they are not bound by its provisions.

18

XVII.

19

CORRESPONDENCE WITH PLAINTIFF

20

IT IS FURTHER ORDERED that, for the purposes of this Order, because

21

mail addressed to the FTC is subject to delay due to heightened security screening,

22

all correspondence and service of pleadings on Plaintiff shall be sent either via

23

electronic submission or via Federal Express to:

24

Eleanor Durham
Federal Trade Commission
915 Second Ave., Suite 2896
Seattle, WA 98174
[e-mail]
with a copy to:

25
26
27
28

Barbara Chun
[Proposed] Preliminary Injunction – Page 23

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

1

Federal Trade Commission
10877 Wilshire Blvd., Suite 700
Los Angeles, CA 90024
[e-mail]
XVIII.

2
3
4

SERVICE OF THIS ORDER

5

IT IS FURTHER ORDERED that copies of this Order may be served by

6
7

facsimile transmission, email, personal or overnight delivery, or U.S. Mail, by

8

agents and employees of the FTC or any state or federal law enforcement agency

9

or by private process server, upon any financial institution or other entity or person

10

that may have possession, custody, or control of any documents or assets of any

11

Defendant, or that may otherwise be subject to any provision of this Order.

12

Service upon any branch or office of any financial institution shall effect service

13

upon the entire financial institution.

14

XIX.

15

RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court shall retain jurisdiction of

16
17

this matter for all purposes of construction, modification, and enforcement of this

18

Order.

19

IT IS SO ORDERED, this 29th day of April, 2015, at 9:00 a.m. (Pacific

20
21

time).

22
23

________________________________

24

UNITED STATES DISTRICT JUDGE

25
26
27
28
[Proposed] Preliminary Injunction – Page 24

Federal Trade Commission
915 2nd Ave., Ste. 2896
Seattle, Washington 98174
[phone]

FEDERAL TRADE COMMISSION
FINANCIAL STATEMENT OF INDIVIDUAL DEFENDANT
Instructions:
1.

Complete all items. Enter “None” or “N/A” (“Not Applicable”) where appropriate. If you cannot fully answer a
question, explain why.

2.

“Dependents” include your live-in companion, dependent children, or any other person, whom you or your spouse
(or your children’s other parent) claimed or could have claimed as a dependent for tax purposes at any time during
the past five years.

3.

“Assets” and “Liabilities” include ALL assets and liabilities, located within the United States or elsewhere,
whether held individually or jointly.

4.

Attach continuation pages as needed. On the financial statement, state next to the Item number that the Item is
being continued. On the continuation page(s), identify the Item number(s) being continued.

5.

Type or print legibly.

6.

Initial each page in the space provided in the lower right corner.

7.

Sign and date the completed financial statement on the last page.

Penalty for False Information:
Federal law provides that any person may be imprisoned for not more than five years, fined, or both, if such person:
(1) “in any matter within the jurisdiction of any department or agency of the United States knowingly and
willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false,
fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the
same to contain any false, fictitious or fraudulent statement or entry” (18 U.S.C. § 1001);
(2) “in any . . . statement under penalty of perjury as permitted under section 1746 of title 28, United States Code,
willfully subscribes as true any material matter which he does not believe to be true” (18 U.S.C. § 1621); or
(3) “in any (. . . statement under penalty of perjury as permitted under section 1746 of title 28, United States
Code) in any proceeding before or ancillary to any court or grand jury of the United States knowingly makes any
false material declaration or makes or uses any other information . . . knowing the same to contain any false
material declaration” (18 U.S.C. § 1623).
For a felony conviction under the provisions cited above, federal law provides that the fine may be not more than the
greater of (i) $250,000 for an individual or $500,000 for a corporation, or (ii) if the felony results in pecuniary gain to any
person or pecuniary loss to any person other than the defendant, the greater of twice the gross gain or twice the gross loss.
18 U.S.C. § 3571.

Attachment A

BACKGROUND INFORMATION
Item 1.

Information About You

Your Full Name ______________________________________________ Social Security No. ___________________
Place of Birth _________________________ Date of Birth _______________ Drivers License No. _______________
Current Address ______________________________________________________ From (Date) _________________
Rent or Own? _________ Telephone No. _________________________ Facsimile No. _________________________
E-Mail Address _____________________________________ Internet Home Page ____________________________
Previous Addresses for past five years:
Address___________________________________________ Rent or Own?________ From/Until_________________
Address___________________________________________ Rent or Own?________ From/Until_________________
Identify any other name(s) and/or social security number(s) you have used, and the time period(s) during which they
were used________________________________________________________________________________________
Information About Your Spouse or Live-In Companion

Item 2.

Spouse/Companion's Name _____________________________________ Social Security No. ___________________
Place of Birth _________________________________________ Date of Birth _______________________________
Identify any other name(s) and/or social security number(s) your spouse/companion has used, and the time period(s)
during which they were used ________________________________________________________________________
Address (if different from yours) _____________________________________________________________________
From (Date) _________________________ Rent or Own?___________ Telephone No._________________________
Employer’s Name and Address ______________________________________________________________________
Job Title _______________________ Years in Present Job _________ Annual Gross Salary/Wages $______________
Information About Your Previous Spouse

Item 3.

Previous Spouse’s Name & Address __________________________________________________________________
___________________________________ Social Security No. _________________ Date of Birth _______________
Contact Information

Item 4.
Page 2

Attachment A

Initials __________

Name & Address of Nearest Living Relative or Friend ___________________________________________________
____________________________________________________________ Telephone No. ______________________
Item 5.

Information About Dependents Who Live With You

<Name ______________________________________________ Date of Birth ________________________________

Relationship _________________________________________ Social Security No. ____________________________
<Name ______________________________________________ Date of Birth ________________________________

Relationship _________________________________________ Social Security No. ____________________________
<Name ______________________________________________ Date of Birth ________________________________

Relationship _________________________________________ Social Security No. ____________________________
Item 6.

Information About Dependents Who Do Not Live With You

<Name & Address ________________________________________________________________________________

Date of Birth __________________ Relationship ____________________ Social Security No.___________________
<Name Address __________________________________________________________________________________

Date of Birth __________________ Relationship ____________________ Social Security No.__________________
<Name & Address ________________________________________________________________________________

Date of Birth __________________ Relationship ____________________ Social Security No.__________________
Employment Information

Item 7.

Provide the following information for this year-to-date and for each of the previous five full years, for each company of
which you were a director, officer, employee, agent, contractor, participant or consultant at any time during that period.
“Income” includes, but is not limited to, any salary, commissions, draws, consulting fees, loans, loan payments, dividends,
royalties or other benefits for which you did not pay (e.g., health insurance premiums, automobile lease or loan payments)
received by you or anyone else on your behalf.
<Company Name & Address ________________________________________________________________________

Dates Employed: From (Month/Year) ________________________ To (Month/Year) _________________________
Positions Held with Beginning and Ending Dates ________________________________________________________
________________________________________________________________________________________________
Item 7. continued

Page 3

Attachment A

Initials __________

Income Received: This year-to-date: $______________________

_______: $______________________

20_____: $______________________

_______: $______________________

_______: $______________________

_______: $______________________

<Company Name & Address ________________________________________________________________________

Dates Employed: From (Month/Year) ________________________ To (Month/Year) _________________________
Positions Held with Beginning and Ending Dates ________________________________________________________
________________________________________________________________________________________________
Income Received: This year-to-date: $______________________

_______: $______________________

20_____: $______________________

_______: $______________________

_______: $______________________

_______: $______________________

<Company Name & Address ________________________________________________________________________

Dates Employed: From (Month/Year) ________________________ To (Month/Year) _________________________
Positions Held with Beginning and Ending Dates ________________________________________________________
________________________________________________________________________________________________
Income Received: This year-to-date: $______________________

_______: $______________________

20_____: $______________________

_______: $______________________

_______: $______________________

_______: $______________________

Pending Lawsuits Filed by You or Your Spouse

Item 8.

List all pending lawsuits that have been filed by you or your spouse in court or before an administrative agency. (List
lawsuits that resulted in final judgments or settlements in Items 16 and 25).
Opposing Party’s Name & Address ___________________________________________________________________
Court’s Name & Address ___________________________________________________________________________
Docket No. _________________ Relief Requested ____________________ Nature of Lawsuit ___________________
____________________________________ Status ______________________________________________________
Pending Lawsuits Filed Against You or Your Spouse

Item 9.

List all pending lawsuits that have been filed against you or your spouse in court or before an administrative agency. (List
Page 4

Attachment A

Initials __________

lawsuits that resulted in final judgments or settlements in Items 16 and 25).
Opposing Party’s Name & Address ___________________________________________________________________
Court’s Name & Address ___________________________________________________________________________
Docket No. _________________ Relief Requested ____________________ Nature of Lawsuit ___________________
____________________________________ Status ______________________________________________________
Safe Deposit Boxes

Item 10.

List all safe deposit boxes, located within the United States or elsewhere, held by you, your spouse, or any of your
dependents, or held by others for the benefit of you, your spouse, or any of your dependents. On a separate page,
describe the contents of each box.
Owner’s Name

Name & Address of Depository Institution

Box No.

__________________ ___________________________________________________________________ _________
__________________ ___________________________________________________________________ _________
__________________ ___________________________________________________________________ _________
Item 11.

Business Interests

List all businesses for which you, your spouse, or your dependents are an officer or director.
<Business’ Name & Address ________________________________________________________________________

Business Format (e.g., corporation) __________________________ Description of Business _____________________
______________________________ Position(s) Held, and By Whom _______________________________________
<Business’ Name & Address ________________________________________________________________________

Business Format (e.g., corporation) __________________________ Description of Business _____________________
______________________________ Position(s) Held, and By Whom _______________________________________
<Business’ Name & Address ________________________________________________________________________

Business Format (e.g., corporation) __________________________ Description of Business _____________________
______________________________ Position(s) Held, and By Whom _______________________________________

Page 5

Attachment A

Initials __________

FINANCIAL INFORMATION: ASSETS AND LIABILITIES
REMINDER: “Assets” and “Liabilities” include ALL assets and liabilities, located within the United States or
elsewhere, whether held individually or jointly.
Cash, Bank, and Money Market Accounts

Item 12.

List cash and all bank and money market accounts, including but not limited to, checking accounts, savings accounts, and
certificates of deposit, held by you, your spouse, or your dependents, or held by others for the benefit of you, your spouse,
or your dependents. The term “cash” includes currency and uncashed checks.
Cash on Hand $____________________________ Cash Held For Your Benefit $____________________________
Name on Account

Name & Address of Financial Institution

Account No.

Current
Balance

_________________ __________________________________________________ _______________ $__________
_________________ __________________________________________________ _______________ $__________
_________________ __________________________________________________ _______________ $__________
_________________ __________________________________________________ _______________ $__________
_________________ __________________________________________________ _______________ $__________
_________________ __________________________________________________ _______________ $__________
Item 13.

U.S. Government Securities

List all U.S. Government securities, including but not limited to, savings bonds, treasury bills, and treasury notes, held by
you, your spouse, or your dependents, or held by others for the benefit of you, your spouse, or your dependents.
Name on Account

Type of Obligation

Security Amount

Maturity Date

____________________ _____________________________________________ $________________ _____________
____________________ _____________________________________________ $________________ _____________
____________________ _____________________________________________ $________________ _____________
Item 14.

Publicly Traded Securities and Loans Secured by Them

Page 6

Attachment A

Initials __________

List all publicly traded securities, including but not limited to, stocks, stock options, registered and bearer bonds, state and
municipal bonds, and mutual funds, held by you, your spouse, or your dependents, or held by others for the benefit of
you, your spouse, or your dependents.
<Issuer _______________________________ Type of Security ___________________ No. of Units Owned ________

Name on Security _________________ Current Fair Market Value $_________ Loan(s) Against Security $_________
Broker House, Address _______________________________________________ Broker Account No. ____________
<Issuer _______________________________ Type of Security ___________________ No. of Units Owned ________

Name on Security _________________ Current Fair Market Value $_________ Loan(s) Against Security $_________
Broker House, Address _______________________________________________ Broker Account No. ____________
Item 15.

Other Business Interests

List all other business interests, including but not limited to, non-public corporations, subchapter-S corporations, limited
liability corporations (“LLCs”), general or limited partnership interests, joint ventures, sole proprietorships, and oil and
mineral leases, held by you, your spouse, or your dependents, or held by others for the benefit of you, your spouse, or
your dependents.
<Business Format _____________________________ Business’ Name & Address ______________________________

_________________________________________________________________________ Ownership % ___________
Owner (e.g., self, spouse) ________________________________ Current Fair Market Value $____________________
<Business Format _____________________________ Business’ Name & Address ______________________________

_________________________________________________________________________ Ownership % ___________
Owner (e.g., self, spouse) ________________________________ Current Fair Market Value $____________________
Item 16.

Monetary Judgments or Settlements Owed to You, Your Spouse, or Your Dependents

List all monetary judgments or settlements owed to you, your spouse, or your dependents.
<Opposing Party’s Name & Address __________________________________________________________________

Court’s Name & Address __________________________________________________ Docket No. _______________
Nature of Lawsuit ______________________________ Date of Judgment _______________ Amount $____________
<Opposing Party’s Name & Address __________________________________________________________________

Court’s Name & Address __________________________________________________ Docket No. _______________
Nature of Lawsuit ______________________________ Date of Judgment _______________ Amount $____________
Item 17.
Other Amounts Owed to You, Your Spouse, or Your Dependents
Page 7

Attachment A

Initials __________

List all other amounts owed to you, your spouse, or your dependents.
Debtor’s Name, Address, & Telephone No. ____________________________________________________________
Original Amount Owed $_____________ Current Amount Owed $____________ Monthly Payment $_____________
Item 18.

Life Insurance Policies

List all life insurance policies held by you, your spouse, or your dependents.
<Insurance Company’s Name, Address, & Telephone No. _________________________________________________

________________________________________________________________________________________________
Insured ________________________ Beneficiary _______________________ Face Value $_____________________
Policy No. _________________ Loans Against Policy $________________ Surrender Value $___________________
<Insurance Company’s Name, Address, & Telephone No. _________________________________________________

________________________________________________________________________________________________
Insured ________________________ Beneficiary _______________________ Face Value $_____________________
Policy No. _________________ Loans Against Policy $________________ Surrender Value $___________________
Item 19.

Deferred Income Arrangements

List all deferred income arrangements, including but not limited to, deferred annuities, pensions plans, profit-sharing
plans, 401(k) plans, IRAs, Keoghs, and other retirement accounts, held by you, your spouse, or your dependents, or held
by others for the benefit of you, your spouse, or your dependents.
<Name on Account _________________________ Type of Plan ___________________ Date Established __________

Trustee or Administrator’s Name, Address & Telephone No. _______________________________________________
________________________________________________________________________________________________
Account No. ______________________ Surrender Value $___________________
<Name on Account _________________________ Type of Plan ___________________ Date Established __________

Trustee or Administrator’s Name, Address & Telephone No. _______________________________________________
________________________________________________________________________________________________
Account No. ______________________ Surrender Value $___________________
Item 20.

Personal Property

List all personal property, by category, whether held for personal use or for investment, including but not limited to,
Page 8

Attachment A

Initials __________

furniture and household goods of value, computer equipment, electronics, coins, stamps, artwork, gemstones, jewelry,
bullion, other collectibles, copyrights, patents, and other intellectual property, held by you, your spouse, or your
dependents, or held by others for the benefit of you, your spouse, or your dependents.
Property Category
(e.g., artwork, jewelry)

Name of Owner

Property Location

Acquisition
Cost

Current
Value

____________________________ __________________ ___________________________ $_________ $__________
____________________________ __________________ ___________________________ $_________ $__________
____________________________ __________________ ___________________________ $_________ $__________
____________________________ __________________ ___________________________ $_________ $__________
____________________________ __________________ ___________________________ $_________ $__________
____________________________ __________________ ___________________________ $_________ $__________
Item 21.

Cars, Trucks, Motorcycles, Boats, Airplanes, and Other Vehicles

List all cars, trucks, motorcycles, boats, airplanes, and other vehicles owned or operated by you, your spouse, or your
dependents, or held by others for the benefit of you, your spouse, or your dependents.
<Vehicle Type __________________ Make ____________________ Model ______________________ Year _______

Registered Owner’s Name __________________________ Registration State & No. ___________________________
Address of Vehicle’s Location _______________________________________________________________________
Purchase Price $_______________Current Value $_______________ Account/Loan No. ________________________
Lender’s Name and Address _________________________________________________________________________
Original Loan Amount $______________ Current Loan Balance $______________ Monthly Payment $____________
<Vehicle Type __________________ Make ____________________ Model ______________________ Year _______

Registered Owner’s Name __________________________ Registration State & No. ___________________________
Address of Vehicle’s Location _______________________________________________________________________
Purchase Price $_______________Current Value $_______________ Account/Loan No. ________________________
Lender’s Name and Address _________________________________________________________________________
Original Loan Amount $______________ Current Loan Balance $______________ Monthly Payment $____________
Item 21. Continued
<Vehicle Type __________________ Make ____________________ Model ______________________ Year _______
Page 9

Attachment A

Initials __________

Registered Owner’s Name __________________________ Registration State & No. ___________________________
Address of Vehicle’s Location _______________________________________________________________________
Purchase Price $_______________Current Value $_______________ Account/Loan No. ________________________
Lender’s Name and Address _________________________________________________________________________
Original Loan Amount $______________ Current Loan Balance $______________ Monthly Payment $____________
Item 22.

Real Property

List all real estate held by you, your spouse, or your dependents, or held by others for the benefit of you, your spouse, or
your dependents.
<Type of Property________________________________ Property’s Location_________________________________

Name(s) on Title and Ownership Percentages___________________________________________________________
Acquisition Date________________ Purchase Price $____________________ Current Value $___________________
Basis of Valuation_______________________________________ Loan or Account No._________________________
Lender’s Name and Address_________________________________________________________________________
Current Balance On First Mortgage $__________________ Monthly Payment $_________________
Other Loan(s) (describe)____________________________________________ Current Balance $_________________
Monthly Payment $__________________ Rental Unit?_________________ Monthly Rent Received $_____________
<Type of Property________________________________ Property’s Location_________________________________

Name(s) on Title and Ownership Percentages___________________________________________________________
Acquisition Date________________ Purchase Price $____________________ Current Value $___________________
Basis of Valuation_______________________________________ Loan or Account No._________________________
Lender’s Name and Address__________________________________________________________________________
Current Balance On First Mortgage $__________________ Monthly Payment $_________________
Other Loan(s) (describe)____________________________________________ Current Balance $_________________
Monthly Payment $__________________ Rental Unit?_________________ Monthly Rent Received $_____________
Item 23.

Credit Cards

List each credit card held by you, your spouse, or your dependents. Also list any other credit cards that you, your spouse,
or your dependents use.

Page 10

Attachment A

Initials __________

Name of Credit Card (e.g., Visa,
MasterCard, Department Store)

Account No.

Name(s) on
Account

Current
Balance

Minimum
Monthly Payment

____________________________ __________________ _________________ $____________ $________________
____________________________ __________________ _________________ $____________ $________________
____________________________ __________________ _________________ $____________ $________________
____________________________ __________________ _________________ $____________ $________________
____________________________ __________________ _________________ $____________ $________________
____________________________ __________________ _________________ $____________ $________________
Item 24.

Taxes Payable

List all taxes, such as income taxes or real estate taxes, owed by you, your spouse, or your dependants.
Type of Tax

Amount Owed

Year Incurred

_______________________________ $__________________________ ___________________
_______________________________ $__________________________ ___________________
_______________________________ $__________________________ ___________________
_______________________________ $__________________________ ___________________
Item 25.

Judgments or Settlements Owed

List all judgments or settlements owed by you, your spouse, or your dependents.
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit_______________________________________ Date______________ Amount $______________

Page 11

Attachment A

Initials __________

Item 26.

Other Loans and Liabilities

List all other loans or liabilities in your, your spouse's, or your dependents’ names.
<Name & Address of Lender/Creditor _________________________________________________________________

Nature of Liability_____________________________________ Name(s) on Liability__________________________
Date of Liability___________________ Amount Borrowed $________________ Current Balance $_______________
Payment Amount $_____________________ Frequency of Payment_____________________
<Name & Address of Lender/Creditor _________________________________________________________________

Nature of Liability_____________________________________ Name(s) on Liability__________________________
Date of Liability___________________ Amount Borrowed $________________ Current Balance $_______________
Payment Amount $_____________________ Frequency of Payment_____________________

OTHER FINANCIAL INFORMATION
Item 27.

Tax Returns

List all federal tax returns that were filed during the last three years by or on behalf of you, your spouse, or your
dependents. Provide a copy of each signed tax return that was filed during the last three years.
Name(s) on Return

Tax Year

Refund Expected

___________ ___________________________________________________________________ $_______________
___________ ___________________________________________________________________ $_______________
___________ ___________________________________________________________________ $_______________
Item 28.

Applications for Credit

List all applications for bank loans or other extensions of credit that you, your spouse, or your dependents have submitted
within the last two years. Provide a copy of each application, including all attachments.
Name(s) on Application

Name & Address of Lender

_________________________________ ______________________________________________________________
_________________________________ ______________________________________________________________
_________________________________ ______________________________________________________________
Item 29.

Trusts and Escrows

Page 12

Attachment A

Initials __________

List all funds or other assets that are being held in trust or escrow by any person or entity for you, your spouse, or your
dependents. Also list all funds or other assets that are being held in trust or escrow by you, your spouse, or your
dependents, for any person or entity. Provide copies of all executed trust documents.
Trustee or Escrow Agent’s
Name & Address

Date
Established

Grantor

Beneficiaries

Present Market
Value of Assets

________________________________ ______________ _________________ ______________ $______________
________________________________ ______________ _________________ ______________ $______________
________________________________ ______________ _________________ ______________ $______________
________________________________ ______________ _________________ ______________ $______________
________________________________ ______________ _________________ ______________ $______________
Item 30.

Transfers of Assets

List each person to whom you have transferred, in the aggregate, more than $2,500 in funds or other assets during the
previous three years by loan, gift, sale, or other transfer. For each such person, state the total amount transferred during
that period.
Transferee’s Name, Address, & Relationship

Property
Transferred

Aggregate
Value

Transfer
Date

Type of Transfer
(e.g., Loan, Gift)

______________________________________ ________________ $____________ __________ _________________
______________________________________ ________________ $____________ __________ _________________
______________________________________ ________________ $____________ __________ _________________
______________________________________ ________________ $____________ __________ _________________
______________________________________ ________________ $____________ __________ _________________
______________________________________ ________________ $____________ __________ _________________
______________________________________ ________________ $____________ __________ _________________

Page 13

Attachment A

Initials __________

SUMMARY FINANCIAL SCHEDULES
Item 31.

Combined Balance Sheet for You, Your Spouse, and Your Dependents
LIABILITIES

ASSETS
Cash on Hand
(Item 12)

$___________

Credit Cards
(Item 23)

$____________

Cash in Financial Institutions
(Item 12)

$___________

Motor Vehicles - Liens
(Item 21)

$____________

U.S. Government Securities
(Item 13)

$___________

Real Property - Encumbrances
(Item 22)

$____________

Publicly Traded Securities
(Item 14)

$___________

Loans Against Publicly Traded Securities
(Item 14)

$____________

Other Business Interests
(Item 15)

$___________

Taxes Payable
(Item 24)

$____________

Judgments or Settlements Owed
to You (Item 16)

$___________

Judgments or Settlements Owed
(Item 25)

$____________

Other Amounts Owed to You
(Item 17)

$___________

Other Loans and Liabilities
(Item 26)

$____________

Surrender Value of Life Insurance
(Item 18)

$___________

Deferred Income Arrangements
(Item 19)

$___________

_________________________________

$____________

Personal Property
(Item 20)

$___________

_________________________________

$____________

Motor Vehicles
(Item 21)

$___________

_________________________________

$____________

Real Property
(Item 22)

$___________

_________________________________

$____________

_________________________________

$____________

Other Assets (Itemize)

Other Liabilities (Itemize)

___________________________

$___________

_________________________________

$____________

___________________________

$___________

_________________________________

$____________

___________________________

$___________

_________________________________

$____________

___________________________

$___________

_________________________________

$____________

Total Assets

$

Total Liabilities

$

Page 14

Attachment A

Initials __________

Item 32.

Combined Average Monthly Income and Expenses for You, Your Spouse, and Your Dependents for
the Last 6 Months

Provide the average monthly income and expenses for you, your spouse, and your dependents for the last 6 months. Do
not include credit card payments separately; rather, include credit card expenditures in the appropriate categories.
EXPENSES

INCOME
Salary - After Taxes

$___________

Mortgage Payments for Residence(s)

$____________

Fees, Commissions, and Royalties $___________

Property Taxes for Residence(s)

$____________

Interest

$___________

Rental Property Expenses, Including
Mortgage Payments, Taxes, and Insurance

$____________

Dividends and Capital Gains

$___________

Car or Other Vehicle Lease or Loan
Payments

$____________

Gross Rental Income

$___________

Food Expenses

$____________

Profits from Sole Proprietorships

$___________

Clothing Expenses

$____________

Distributions from Partnerships,
S-Corporations, and LLCs

$___________

Utilities

$____________

Distributions from Trusts and
Estates

$___________

Medical Expenses, Including Insurance

$____________

Distributions from Deferred
Income Arrangements

$___________

Other Insurance Premiums

$____________

Social Security Payments

$___________

Other Transportation Expenses

$____________

Alimony/Child Support Received

$___________

Other Household Expenses

$____________

Gambling Income

$___________

Other Income (Itemize)

Other Expenses (Itemize)
_________________________________

$____________

___________________________

$___________

_________________________________

$____________

___________________________

$___________

_________________________________

$____________

___________________________

$___________

_________________________________

$____________

Total Income

$

Total Expenses

$

Page 15

Attachment A

Initials __________

ATTACHMENTS
Item 33.

Documents Attached to this Financial Statement

List all documents that are being submitted with this financial statement.
Item No. Document
Relates To

Description of Document

___________________ ______________________________________________________________________________
___________________ ______________________________________________________________________________
___________________ ______________________________________________________________________________
___________________ ______________________________________________________________________________
___________________ ______________________________________________________________________________
___________________ ______________________________________________________________________________
___________________ ______________________________________________________________________________
___________________ ______________________________________________________________________________
___________________ ______________________________________________________________________________
___________________ ______________________________________________________________________________

I am submitting this financial statement with the understanding that it may affect action by the Federal Trade
Commission or a federal court. I have used my best efforts to obtain the information requested in this statement. The
responses I have provided to the items above are true and contain all the requested facts and information of which I have
notice or knowledge. I have provided all requested documents in my custody, possession, or control. I know of the
penalties for false statements under 18 U.S.C. § 1001, 18 U.S.C. § 1621, and 18 U.S.C. § 1623 (five years imprisonment
and/or fines). I certify under penalty of perjury under the laws of the United States that the foregoing is true and correct.
Executed on:
______________________________
(Date)

Page 16

Attachment A

_____________________________________________________
Signature

Initials __________

FEDERAL TRADE COMMISSION
FINANCIAL STATEMENT OF CORPORATE DEFENDANT

Instructions:
1.

Complete all items. Enter “None” or "N/A" (“Not Applicable”) where appropriate. If you cannot fully answer a
question, explain why.

2.

The font size within each field will adjust automatically as you type to accommodate longer responses.

3.

In completing this financial statement, “the corporation” refers not only to this corporation but also to each of its
predecessors that are not named defendants in this action.

4.

When an Item asks for information about assets or liabilities “held by the corporation,” include ALL such assets
and liabilities, located within the United States or elsewhere, held by the corporation or held by others for the
benefit of the corporation.

5.

Attach continuation pages as needed. On the financial statement, state next to the Item number that the Item is
being continued. On the continuation page(s), identify the Item number being continued.

6.

Type or print legibly.

7.

An officer of the corporation must sign and date the completed financial statement on the last page and initial
each page in the space provided in the lower right corner.

Penalty for False Information:
Federal law provides that any person may be imprisoned for not more than five years, fined, or both, if such person:
(1) “in any matter within the jurisdiction of any department or agency of the United States knowingly and
willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false,
fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the
same to contain any false, fictitious or fraudulent statement or entry” (18 U.S.C. § 1001);
(2) “in any . . . statement under penalty of perjury as permitted under section 1746 of title 28, United States Code,
willfully subscribes as true any material matter which he does not believe to be true” (18 U.S.C. § 1621); or
(3) “in any (. . . statement under penalty of perjury as permitted under section 1746 of title 28, United States
Code) in any proceeding before or ancillary to any court or grand jury of the United States knowingly makes any
false material declaration or makes or uses any other information . . . knowing the same to contain any false
material declaration.” (18 U.S.C. § 1623)
For a felony conviction under the provisions cited above, federal law provides that the fine may be not more than the
greater of (i) $250,000 for an individual or $500,000 for a corporation, or (ii) if the felony results in pecuniary gain to any
person or pecuniary loss to any person other than the defendant, the greater of twice the gross gain or twice the gross loss.
18 U.S.C. § 3571.

TRO Attachment B

BACKGROUND INFORMATION

Item 1.

General Information

Corporation’s Full Name ___________________________________________________________________________
Primary Business Address ______________________________________________________ From (Date) _________
Telephone No. _____________________________ Fax No. _____________________________
E-Mail Address________________________ Internet Home Page________________________
All other current addresses & previous addresses for past five years, including post office boxes and mail drops:
Address____________________________________________________________ From/Until____________________
Address____________________________________________________________ From/Until____________________
Address____________________________________________________________ From/Until____________________
All predecessor companies for past five years:
Name & Address _________________________________________________________ From/Until ______________
Name & Address _________________________________________________________ From/Until ______________
Name & Address _________________________________________________________ From/Until ______________

Item 2.

Legal Information

Federal Taxpayer ID No. _________________________ State & Date of Incorporation _________________________
State Tax ID No. ____________________ State ________________ Profit or Not For Profit _____________________
Corporation’s Present Status: Active ________________ Inactive _______________ Dissolved __________________
If Dissolved: Date dissolved _________________________ By Whom ______________________________________
Reasons _________________________________________________________________________________________
Fiscal Year-End (Mo./Day) ________________ Corporation’s Business Activities _____________________________

Item 3.

Registered Agent

Name of Registered Agent __________________________________________________________________________
Address __________________________________________________________ Telephone No. __________________

Page 2

TRO Attachment B

Initials __________

Item 4.

Principal Stockholders

List all persons and entities that own at least 5% of the corporation’s stock.
% Owned

Name & Address

_________________________________________________________________________________ ______________
_________________________________________________________________________________ ______________
_________________________________________________________________________________ ______________
_________________________________________________________________________________ ______________

Item 5.

Board Members

List all members of the corporation’s Board of Directors.
Name & Address

% Owned

Term (From/Until)

____________________________________________________________________ __________ _________________
____________________________________________________________________ __________ _________________
____________________________________________________________________ __________ _________________
____________________________________________________________________ __________ _________________
____________________________________________________________________ __________ _________________

Item 6.

Officers

List all of the corporation’s officers, including de facto officers (individuals with significant management responsibility
whose titles do not reflect the nature of their positions).
Name & Address

% Owned

_______________________________________________________________________________ ________________
_______________________________________________________________________________ ________________
_______________________________________________________________________________ ________________
_______________________________________________________________________________ ________________
_______________________________________________________________________________ ________________

Page 3

TRO Attachment B

Initials __________

Item 7.

Businesses Related to the Corporation

List all corporations, partnerships, and other business entities in which this corporation has an ownership interest.
Name & Address

Business Activities

% Owned

___________________________________________________________________ ___________________ _________
___________________________________________________________________ ___________________ _________
___________________________________________________________________ ___________________ _________
State which of these businesses, if any, has ever transacted business with the corporation _______________________
________________________________________________________________________________________________

Item 8.

Businesses Related to Individuals

List all corporations, partnerships, and other business entities in which the corporation’s principal stockholders, board
members, or officers (i.e., the individuals listed in Items 4 - 6 above) have an ownership interest.
Business Name & Address

Individual’s Name

Business Activities

% Owned

__________________ __________________________________________________ __________________ ________
__________________ __________________________________________________ __________________ ________
__________________ __________________________________________________ __________________ ________
State which of these businesses, if any, have ever transacted business with the corporation _______________________
________________________________________________________________________________________________

Item 9.

Related Individuals

List all related individuals with whom the corporation has had any business transactions during the three previous fiscal
years and current fiscal year-to-date. A “related individual” is a spouse, sibling, parent, or child of the principal
stockholders, board members, and officers (i.e., the individuals listed in Items 4 - 6 above).
Relationship

Name and Address

Business Activities

_________________________________________________________ _________________ ______________________
_________________________________________________________ _________________ ______________________
_________________________________________________________ _________________ ______________________

Page 4

TRO Attachment B

Initials __________

Item 10.

Outside Accountants

List all outside accountants retained by the corporation during the last three years.
Firm Name

Name

Address

CPA/PA?

____________________ ______________________ ________________________________________ ____________
____________________ ______________________ ________________________________________ ____________
____________________ ______________________ ________________________________________ ____________
____________________ ______________________ ________________________________________ ____________
____________________ ______________________ ________________________________________ ____________

Item 11.

Corporation’s Recordkeeping

List all individuals within the corporation with responsibility for keeping the corporation’s financial books and records for
the last three years.
Position(s) Held

Name, Address, & Telephone Number

____________________________________________________________________________ ___________________
____________________________________________________________________________ ___________________
____________________________________________________________________________ ___________________
____________________________________________________________________________ ___________________

Item 12.

Attorneys

List all attorneys retained by the corporation during the last three years.
Name

Firm Name

Address

____________________ ___________________________ ________________________________________________
____________________ ___________________________ ________________________________________________
____________________ ___________________________ ________________________________________________
____________________ ___________________________ ________________________________________________
____________________ ___________________________ ________________________________________________

Page 5

TRO Attachment B

Initials __________

Item 13.

Pending Lawsuits Filed by the Corporation

List all pending lawsuits that have been filed by the corporation in court or before an administrative agency. (List
lawsuits that resulted in final judgments or settlements in favor of the corporation in Item 25).
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________

Page 6

TRO Attachment B

Initials __________

Item 14.

Current Lawsuits Filed Against the Corporation

List all pending lawsuits that have been filed against the corporation in court or before an administrative agency. (List
lawsuits that resulted in final judgments, settlements, or orders in Items 26 - 27).
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________

Page 7

TRO Attachment B

Initials __________

Item 15.

Bankruptcy Information

List all state insolvency and federal bankruptcy proceedings involving the corporation.
Commencement Date _________________ Termination Date _________________ Docket No. __________________
If State Court: Court & County _______________________ If Federal Court: District __________________________
Disposition ______________________________________________________________________________________

Item 16.

Safe Deposit Boxes

List all safe deposit boxes, located within the United States or elsewhere, held by the corporation, or held by others for the
benefit of the corporation. On a separate page, describe the contents of each box.
Owner’s Name

Name & Address of Depository Institution

Box No.

__________________ ___________________________________________________________________ __________
__________________ ___________________________________________________________________ __________
__________________ ___________________________________________________________________ __________
__________________ ___________________________________________________________________ __________
__________________ ___________________________________________________________________ __________

FINANCIAL INFORMATION
REMINDER: When an Item asks for information about assets or liabilities “held by the corporation,” include
ALL such assets and liabilities, located within the United States or elsewhere, held by the corporation or held by
others for the benefit of the corporation.
Item 17.

Tax Returns

List all federal and state corporate tax returns filed for the last three complete fiscal years. Attach copies of all returns.
Federal/
State/Both

Tax Year

Tax Due
Federal

Tax Paid
Federal

Tax Due
State

Tax Paid
State

Preparer’s Name

___________ __________ $_________ $_________ $__________ $__________ ______________________________
___________ __________ $_________ $_________ $__________ $__________ ______________________________
___________ __________ $_________ $_________ $__________ $__________ ______________________________

Page 8

TRO Attachment B

Initials __________

Item 18.

Financial Statements

List all financial statements that were prepared for the corporation’s last three complete fiscal years and for the current
fiscal year-to-date. Attach copies of all statements, providing audited statements if available.
Year

Balance Sheet

Profit & Loss Statement

Cash Flow Statement Changes in Owner’s Equity Audited?

_________ _____________ ______________________ __________________ _______________________ ________
_________ _____________ ______________________ __________________ _______________________ ________
_________ _____________ ______________________ __________________ _______________________ ________
_________ _____________ ______________________ __________________ _______________________ ________
Item 19.

Financial Summary

For each of the last three complete fiscal years and for the current fiscal year-to-date for which the corporation has not
provided a profit and loss statement in accordance with Item 18 above, provide the following summary financial
information.
Current Year-to-Date

1 Year Ago

2 Years Ago

3 Years Ago

Gross Revenue

$_________________

$_______________

$_______________

$_______________

Expenses

$_________________

$_______________

$_______________

$_______________

Net Profit After Taxes

$_________________

$_______________

$_______________

$_______________

Payables

$_________________

Receivables

$_________________

Item 20.

Cash, Bank, and Money Market Accounts

List cash and all bank and money market accounts, including but not limited to, checking accounts, savings accounts, and
certificates of deposit, held by the corporation. The term “cash” includes currency and uncashed checks.
Cash on Hand $_________________________ Cash Held for the Corporation’s Benefit $_______________________
Current
Balance
_____________________________________ _______________________________ ______________ $___________
Name & Address of Financial Institution

Signator(s) on Account

Account No.

_____________________________________ _______________________________ ______________ $___________
_____________________________________ _______________________________ ______________ $___________
_____________________________________ _______________________________ ______________ $___________

Page 9

TRO Attachment B

Initials __________

Item 21.

Government Obligations and Publicly Traded Securities

List all U.S. Government obligations, including but not limited to, savings bonds, treasury bills, or treasury notes, held by
the corporation. Also list all publicly traded securities, including but not limited to, stocks, stock options, registered and
bearer bonds, state and municipal bonds, and mutual funds, held by the corporation.
Issuer _________________________________ Type of Security/Obligation __________________________________
No. of Units Owned __________ Current Fair Market Value $__________________ Maturity Date _______________
Issuer _________________________________ Type of Security/Obligation __________________________________
No. of Units Owned __________ Current Fair Market Value $__________________ Maturity Date _______________

Item 22.

Real Estate

List all real estate, including leaseholds in excess of five years, held by the corporation.
Type of Property________________________________ Property’s Location__________________________________
Name(s) on Title and Ownership Percentages___________________________________________________________
Current Value $____________________ Loan or Account No. __________________________
Lender’s Name and Address_________________________________________________________________________
Current Balance On First Mortgage $_______________ Monthly Payment $______________
Other Loan(s) (describe)____________________________________________ Current Balance $_________________
Monthly Payment $__________________ Rental Unit?_________________ Monthly Rent Received $_____________

Type of Property________________________________ Property’s Location__________________________________
Name(s) on Title and Ownership Percentages___________________________________________________________
Current Value $____________________ Loan or Account No. __________________________
Lender’s Name and Address_________________________________________________________________________
Current Balance On First Mortgage $_______________ Monthly Payment $______________
Other Loan(s) (describe)____________________________________________ Current Balance $_________________
Monthly Payment $__________________ Rental Unit?_________________ Monthly Rent Received $_____________

Page 10

TRO Attachment B

Initials __________

Item 23.

Other Assets

List all other property, by category, with an estimated value of $2,500 or more, held by the corporation, including but not
limited to, inventory, machinery, equipment, furniture, vehicles, customer lists, computer software, patents, and other
intellectual property.
Property Category

Property Location

Acquisition
Cost

Current
Value

____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________

Item 24.

Trusts and Escrows

List all persons and other entities holding funds or other assets that are in escrow or in trust for the corporation.
Trustee or Escrow Agent’s
Name & Address

Description and Location of Assets

Present Market
Value of Assets

______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________

Page 11

TRO Attachment B

Initials __________

Item 25.

Monetary Judgments and Settlements Owed To the Corporation

List all monetary judgments and settlements, recorded and unrecorded, owed to the corporation.
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________

Item 26.

Monetary Judgments and Settlements Owed By the Corporation

List all monetary judgments and settlements, recorded and unrecorded, owed by the corporation.
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit_______________________________________ Date______________ Amount $______________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________

Page 12

TRO Attachment B

Initials __________

Item 27.

Government Orders and Settlements

List all existing orders and settlements between the corporation and any federal or state government entities.
Name of Agency ___________________________________________ Contact Person __________________________
Address _____________________________________________________________ Telephone No. _______________
Agreement Date ______________ Nature of Agreement __________________________________________________

Item 28.

Credit Cards

List all of the corporation’s credit cards and store charge accounts and the individuals authorized to use them.
Names of Authorized Users and Positions Held

Name of Credit Card or Store

__________________________________________ _____________________________________________________
__________________________________________ _____________________________________________________
__________________________________________ _____________________________________________________
__________________________________________ _____________________________________________________
__________________________________________ _____________________________________________________

Item 29.

Compensation of Employees

List all compensation and other benefits received from the corporation by the five most highly compensated employees,
independent contractors, and consultants (other than those individuals listed in Items 5 and 6 above), for the two previous
fiscal years and current fiscal year-to-date. “Compensation” includes, but is not limited to, salaries, commissions,
consulting fees, bonuses, dividends, distributions, royalties, pensions, and profit sharing plans. “Other benefits” include,
but are not limited to, loans, loan payments, rent, car payments, and insurance premiums, whether paid directly to the
individuals, or paid to others on their behalf.
Name/Position

Current Fiscal
Year-to-Date

1 Year Ago

2 Years Ago

Compensation or
Type of Benefits

_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________

Page 13

TRO Attachment B

Initials __________

Item 30.

Compensation of Board Members and Officers

List all compensation and other benefits received from the corporation by each person listed in Items 5 and 6, for the
current fiscal year-to-date and the two previous fiscal years. “Compensation” includes, but is not limited to, salaries,
commissions, consulting fees, dividends, distributions, royalties, pensions, and profit sharing plans. “Other benefits”
include, but are not limited to, loans, loan payments, rent, car payments, and insurance premiums, whether paid directly to
the individuals, or paid to others on their behalf.
Name/Position

Current Fiscal
Year-to-Date

1 Year Ago

2 Years Ago

Compensation or
Type of Benefits

_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
Item 31.

Transfers of Assets Including Cash and Property

List all transfers of assets over $2,500 made by the corporation, other than in the ordinary course of business, during the
previous three years, by loan, gift, sale, or other transfer.
Transferee’s Name, Address, & Relationship

Property
Transferred

Aggregate
Value

Transfer
Date

Type of Transfer
(e.g., Loan, Gift)

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

Page 14

TRO Attachment B

Initials __________

Item 32.

Documents Attached to the Financial Statement

List all documents that are being submitted with the financial statement.
Item No. Document
Relates To

Description of Document

___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________

I am submitting this financial statement with the understanding that it may affect action by the Federal Trade
Commission or a federal court. I have used my best efforts to obtain the information requested in this statement. The
responses I have provided to the items above are true and contain all the requested facts and information of which I have
notice or knowledge. I have provided all requested documents in my custody, possession, or control. I know of the
penalties for false statements under 18 U.S.C. § 1001, 18 U.S.C. § 1621, and 18 U.S.C. § 1623 (five years imprisonment
and/or fines). I certify under penalty of perjury under the laws of the United States that the foregoing is true and correct.
Executed on:
______________________________
(Date)

_____________________________________________________
Signature

_____________________________________________________
Corporate Position

Page 15

TRO Attachment B

Initials __________

CONSENT TO RELEASE OF FINANCIAL RECORDS

I, ______________________________________, do hereby direct any bank
or trust company at which I have a bank account of any kind or at which a
corporation has a bank account of any kind upon which I am authorized to draw,
and its officers, employees and agents, to disclose all information and deliver
copies of all documents of every nature in your possession or control which relate
to the said bank accounts to any attorney of the Federal Trade Commission, and to
give evidence thereto, in the matter of FTC v. Wealth Educators, Inc., et al., now
pending in the United States District Court for the Central District of California,
and this shall be irrevocable authority for so doing. This direction is intended to
apply to the laws of countries other than the United States which restrict or prohibit
the disclosure of bank information without the consent of the holder of the account,
and shall be construed as consent with respect thereto, and the same shall apply to
any of the bank accounts for which I may be the relevant principal. This consent
form is being executed pursuant to court order.
Dated: ______________, 2015

TRO Attachment C

Signed:_____________________________