Federal Trade Commission v. Bunzai Media Group, Inc. et al

Filing 105

ORDER ON STIPULATION TO ENTER PRELIMINARY INJUNCTION WITH ASSET FREEZE, APPOINTMENT OF PERMANENT RECEIVER AND OTHER EQUITABLE RELIEF AS TO ALON NOTTEA AND ROI REUVENI by Judge George H. Wu: Upon Stipulation 101 , IT IS HEREBY ORDERED that Stipulatin g Defendants Alon Nottea and Roi Reuveni and Stipulating Defendants' officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting d irectly or indirectly, in connection with the sale of any good or service, are preliminarily restrained and enjoined re prohibited business activities, Prohibitions against unfair and deceptive negative option marketing practices on the internet, pro hibitions against debiting consumers' bank accounts without authorization, etc. IT IS FURTHER ORDERED that Charlene Koonce is appointed as Permanent Receiver for the Receivership Defendants Bunzai Media Group, Inc., d/b/a AuraVie and Miracle Fac e Kit; Pinnacle Logistics, Inc.; DSA Holdings, Inc.; Lifestyle Media Brands, Inc.; Agoa Holdings, Inc.; Zen Mobile Media, Inc.; Safehaven Ventures, Inc.; Heritage Alliance Group, Inc., also doing business as AuraVie Distribution; AMD Financial Networ k, Inc.; SBM Management, Inc.; Media Urge, Inc.; Adageo, LLC; Calenergy, Inc.; KAI Media, Inc.; Insight Medial, Inc.; and their successors and assigns. IT IS FURTHER ORDERED that the Permanent Receiver has filed with the Clerk of this Court a bond in the sum of $20,000, with sureties approved by this Court. See document for further details. (gk)

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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION

13 FEDERAL TRADE COMMISSION, Case No. CV 15-4527-GW(PLAx)
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Plaintiff,
v.

BUNZAI MEDIA GROUP, INC., et
17 al.
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Defendants.
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ORDER ON STIPULATION TO
ENTER PRELIMINARY
INJUNCTION WITH ASSET
FREEZE, APPOINTMENT OF
PERMANENT RECEIVER AND
OTHER EQUITABLE RELIEF AS
TO ALON NOTTEA AND ROI
REUVENI

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Plaintiff, Federal Trade Commission (FTC), filed its Complaint for a
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23 Permanent Injunction and Other Equitable Relief, seeking a temporary,
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preliminary, and permanent injunction to stop Defendants from violating Section
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5(a) of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 45(a), Section
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27 5 of the Restore Online Shoppers’ Confidence Act (ROSCA), 15 U.S.C. § 8404,

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and Section 917(c) of the Electronic Fund Transfer Act (EFTA), 15 U.S.C.

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§ 1693o(c), while advertising, marketing, promoting, or offering for sale skincare

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an ex parte temporary restraining order with an asset freeze, appointment of a

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temporary receiver, and an order to show cause why a preliminary injunction

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Temporary Restraining Order with Asset Freeze, Appointment of Temporary

products. On June 17, 2015, following an on-the-record hearing, the Court issued

should not issue. Defendants were served with the summons, Complaint, Ex Parte

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8 Receiver, and other Equitable Relief, and Order to Show Cause Why a
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9 Preliminary Injunction Should Not Issue, Plaintiff Federal Trade Commission’s
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13 Memorandum in Support of Ex Parte Application for a Temporary Restraining
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11 Order and Other Equitable Relief and Order to Show Cause Why a Preliminary
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12 Injunction Should Not Issue, and other related papers.
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After considering the FTC’s pleading and declarations, exhibits, and
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14 memoranda in support, this Court finds that:
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FINDINGS
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1.
This Court has jurisdiction over the subject matter of this case and
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17 jurisdiction over the parties, and venue in this district is proper.
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2.
The complaint states a claim upon which relief may be granted under
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19 Sections 5, 13, and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 53(b), and 57b, and
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20 under 15 U.S.C. §§ 8404 and 1693o(c).
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3.

Section 13(b) of the FTC Act allows this Court to grant the FTC a

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preliminary injunction upon a showing that, weighing the equities and considering

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interest. 15 U.S.C. § 53(b). Section 19 of the FTC Act allows this Court to grant

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such relief as the Court finds necessary to redress injury to consumers resulting

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the FTC’s likelihood of ultimate success, a preliminary injunction is in the public

from the violation of any rule enforced by the FTC. 15 U.S.C. § 57.
4.

In deciding whether to grant preliminary relief, the Court must,

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8 therefore: (a) consider the likelihood that the FTC will ultimately succeed on the
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9 merits; and (b) balance the equities. FTC v. Affordable Media, LLC, 179 F.3d
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13 1228, 1233 (9th Cir. 1999). The FTC “need not show irreparable harm to obtain a
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11 preliminary injunction.” Id. at 1233 (quoting FTC v. Warner Commc’ns, Inc., 742
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12 F.2d 1156, 1159 (9th Cir. 1984)).
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5.
There is good cause to believe that Defendants have engaged in, and
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14 are likely to engage in, acts or practices that violate Section 5(a) of the FTC Act,
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15 ROSCA, and EFTA and Regulation E, and that the Plaintiff is likely to succeed on
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21 the merits of this action.
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6.
There is good cause to believe that immediate and irreparable harm
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18 will result from Defendants’ ongoing violations of Section 5(a) of the FTC Act,
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25 ROSCA, and EFTA, unless Defendants are restrained and enjoined by Order of
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20 this Court.
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7.

There is good cause to believe that immediate and irreparable

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damage to the Court’s ability to grant effective final relief to consumers –

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paid, and the disgorgement of ill-gotten monies – will occur from the sale,

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transfer, or other disposition or concealment by Defendants of assets or records,

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interest of justice requires that this Order be granted.

including rescission or reformation of contracts, restitution, the refund of monies

and that therefore in accordance with Federal Rule of Civil Procedure 65(b), the

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8.
There is good cause to believe that this Preliminary Injunction is in
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9 the public interest, and no private interest of Defendants outweighs the public
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13 interest.
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9.
Weighing the equities and considering the FTC’s likelihood of
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12 ultimate success, this Preliminary Injunction with asset freeze, appointment of a
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17 Permanent Receiver, and other equitable relief is in the public interest.
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10. The United States, its officers, and its agencies are not required to
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15 give security for issuance of a restraining order. Fed. R. Civ. P. 65(c).
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11. The Stipulating Defendants, without admitting or denying the
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17 allegations set forth in the Commission’s Complaint or motions and without any
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18 admission or finding of liability, agree to entry of this Preliminary Injunction. The
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25 findings of fact made herein may not be used against Stipulating Defendants in
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20 this proceeding or any future proceeding. 
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DEFINITIONS

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For the purposes of this Order, the following definitions apply:

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or claim to any item of economic value, in whole or part, whether tangible or

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intangible, including but not limited to: accounts, accounts receivables, cash,

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fixtures, funds, equipment, income, intellectual property, inventory, instruments,

1.

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

certificates of deposit, chattels, checks, commodities, contracts, credits, currency,

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8 investments, leaseholds, lines of credit, mail, notes, personal property, real
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9 property, revenues, securities, shares of stock, or trusts, whether located within or
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13 outside the United States.
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2.
“Clear(ly) and Conspicuous(ly)” means that a required disclosure is
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12 difficult to miss (i.e., easily noticeable) and easily understandable by ordinary
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17 consumers, including in all of the following ways:
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a.
In any communication that is solely visual or solely audible,
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the disclosure must be made through the same means through which the
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communication is presented. In any communication made through both

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the communication even if the representation requiring the disclosure is

visual and audible means, such as a television advertisement, the disclosure
must be presented simultaneously in both the visual and audible portions of

made in only one means.

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b.

A visual disclosure, by its size, contrast, location, the length of

time it appears, and other characteristics, must stand out from any
accompanying text or other visual elements so that it is easily noticed, read,

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and understood.

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c.

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An audible disclosure, including by telephone or streaming

video, must be delivered in a volume, speed, and cadence sufficient for
ordinary consumers to easily hear and understand it.
d.

In any communication using an interactive electronic medium,

such as the Internet or software, the disclosure must be unavoidable.
e.

On a product label, the disclosure must be presented on the

principal display panel.
f.

The disclosure must use diction and syntax understandable to

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ordinary consumers and must appear in each language in which the

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medium through which it is received, including all electronic devices and

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inconsistent with, anything else in the communication.

representation that requires the disclosure appears.
g.

The disclosure must comply with these requirements in each

face-to-face communications.
h.

The disclosure must not be contradicted or mitigated by, or

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i.

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When the representation or sales practice targets a specific

audience, such as children, the elderly, or the terminally ill, “ordinary
consumers” includes reasonable members.

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3.

“Continuity Plan” means any plan, arrangement, or system in

which a consumer is periodically charged for products or services without prior

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8 notification by the seller before each charge.
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4.
“Defendants” means all of the Individual Defendants and Corporate
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13 Defendants, individually, collectively, or in any combination.
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a.

“Individual Defendants” means Alon Nottea, Motti Nottea,

Doron Nottea, Igor Latsanovski, Oz Mizrahi, Roi Reuveni, and Khristopher

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Bond a/k/a Ray Ibbot, individually, collectively, or in any combination.

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Pinnacle Logistics, Inc.; DSA Holdings, Inc.; Lifestyle Media Brands, Inc.;

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b.

“Corporate Defendants” or “Receivership Defendants”

means Bunzai Media Group, Inc., d/b/a AuraVie and Miracle Face Kit;

Agoa Holdings, Inc.; Zen Mobile Media, Inc.; Safehaven Ventures, Inc.;
Heritage Alliance Group, Inc., also doing business as AuraVie Distribution;
AMD Financial Network, Inc.; SBM Management, Inc.; Media Urge, Inc.;
Adageo, LLC; Calenergy, Inc.; KAI Media, Inc.; Insight Medial, Inc.; and

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their successors and assigns, as well as any subsidiaries, fictitious business

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entities, or business names created or used by these entities or by the

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skincare or other products online.

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5.

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Individual Defendants that are related to, or receive funds from, the sale of

“Document” means the complete original and any non-identical

copy (whether different from the original because of notations or otherwise) of
any electronically stored information or filmed, graphic, imaged, printed,

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8 punched, texted, transcribed, typed, written, matter of every type and description,
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9 including but not limited to writings, drawings, graphs, charts, photographs, sound
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13 records, images, and other data or data compilations that are stored in any medium
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11 from which information can be obtained either directly or indirectly or, if
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12 necessary, translated into a reasonably usable form.
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6.
“Electronic Fund Transfer” means any transfer of funds, other than
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14 a transaction originated by check, draft, or similar paper instrument, which is
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15 initiated through an electronic terminal, telephonic instrument, or computer or
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21 magnetic tape so as to order, instruct, or authorize a financial institution to debit or
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17 credit an account. Such term includes point-of-sale transfers, automated teller
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18 machine transactions, direct deposits or withdrawals of funds, and transfers
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25 initiated by telephone. Such term does not include:
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a.

Any check guarantee or authorization service that does not

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directly result in a debit or credit to a consumer’s account;

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clearinghouse, made by a financial institution on behalf of a consumer by

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means of a service that transfers funds held at either Federal Reserve banks

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funds on behalf of a consumer;

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b.

Any transfer of funds, other than those processed by automated

or other depository institutions and that is not designed primarily to transfer

c.

Any transaction the primary purpose of which is the purchase

or sale of securities or commodities through a broker-dealer registered with
or regulated by the Securities and Exchange Commission;
d.

Any automatic transfer from a savings account to a demand

deposit account pursuant to an agreement between a consumer and a
financial institution for the purpose of covering an overdraft or maintaining
an agreed upon minimum balance in the consumer’s demand deposit
account; or
e.

Any transfer of funds which is initiated by a telephone

conversation between a consumer and an officer or employee of a financial
institution which is not pursuant to a prearranged plan and under which
periodic or recurring transfers are not contemplated.

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“Financial Institution” means an insured bank; a commercial bank

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or trust company; a private banker; an agency or branch of a foreign bank; a credit

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Exchange Commission; a broker or dealer in securities or commodities; an

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investment banker or investment company; a currency exchange; an issuer,

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instruments; an operator of a credit card system; an insurance company; a dealer

union; a thrift institution; a broker or dealer registered with the Securities and

redeemer, or cashier of travelers’ checks, checks, money orders, or similar

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8 in precious metals, stones, or jewels; a pawnbroker; a loan or finance company; a
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9 licensed sender of money or any other person who engages as a business in the
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13 transmission of funds, including any person who engages as a business in an
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11 informal money transfer system or any network of people who engage as a
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12 business in facilitating the transfer of money domestically or internationally
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17 outside of the conventional financial institutions system; a telegraph company; a
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14 business engaged in vehicle sales, including automobile, airplane, and boat sales;
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15 persons involved in real estate closings and settlements; the United States Postal
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21 Service; a casino, gambling casino, or gaming establishment.
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8.
“Material” means likely to affect a person’s choice of, or conduct
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18 regarding, goods or services.
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9.

“Negative Option” means, in an offer or agreement to sell or provide

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any good or service, a provision under which the consumer’s silence or failure to

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take an affirmative action to reject a good or service or to cancel the agreement is

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interpreted by the seller or provider as acceptance or continuing acceptance of the
offer or agreement.
10.

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

entity, including an association, cooperative, corporation, limited liability
company, partnership, sole proprietorship, or any other group or combination

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8 acting as an entity.
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“Plaintiff” or “FTC” means the Federal Trade Commission.
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“Preauthorized Electronic Fund Transfer” means an electronic

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11 fund transfer authorized in advance to recur at substantially regular intervals.
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13. “Permanent Receiver” means the receiver appointed in Section XIII
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17 of this Order and any deputy receivers that shall be named by the Permanent
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14 Receiver.
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“Stipulating Defendants” refers to Alon Nottea and Roi
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21 Reuveni.
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ORDER
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PROHIBITED BUSINESS ACTIVITIES
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IT IS HEREBY ORDERED that Stipulating Defendants and Stipulating
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20 Defendants’ officers, agents, employees, and attorneys, and all other persons in
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active concert or participation with any of them, who receive actual notice of this

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Order, whether acting directly or indirectly, in connection with the sale of any

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good or service, are preliminarily restrained and enjoined from:
A.

others in failing to disclose clearly and conspicuously, all material terms and
conditions of their offer, including:
1.

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That Defendants will use consumers’ credit card or financial

account information to charge consumers the full costs of a product upon
the expiration of a limited trial period;
2.

The dates that any trial period begins and ends;

3.

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Failing to disclose or disclose clearly and conspicuously, or assisting

That Defendants will enroll consumers into a negative option

continuity plan with additional charges;
4.

The cost of any continuity plan and the frequency and duration

of recurring charges;
5.

The means consumers must use to cancel the negative option

program and to avoid additional charges; and
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B.

Requirements of their refund policies.

Misrepresenting, or assisting others in misrepresenting, directly or

25 indirectly, expressly or by implication, any material fact, including that:
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1.
Consumers can obtain an advertised product for “free,”
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“risk-free,” or for only a nominal shipping and handling fee; and

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2.

Defendants are accredited by and have a rating of “A-” with

the Better Business Bureau; and
C.

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Charging, causing to be charged, or assisting others in charging any

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consumer’s credit card, or debiting, causing to be debited, or assisting others in

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informed consent for each charge or debit.

debiting any consumer’s financial account, without the consumer’s express

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8 II.
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PROHIBITIONS AGAINST UNFAIR AND DECEPTIVE
NEGATIVE OPTION MARKETING PRACTICES ON THE
INTERNET
IT IS FURTHER ORDERED that Stipulating Defendants and Stipulating

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11 Defendants’ officers, agents, employees, and attorneys, and all other persons in
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12 active concert or participation with any of them, who receive actual notice of this
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17 Order, whether acting directly or indirectly, in connection with the sale of any
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14 good or service are preliminarily restrained and enjoined from charging, causing
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15 to be charged, assisting others in charging , or attempting to charge any consumer
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21 in an Internet-based sale of a good or service sold through a negative option
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17 without:
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A.
Clearly and conspicuously disclosing all material terms of the
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25 negative option features before obtaining the consumer’s billing information;
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B.
Obtaining a consumer’s express informed consent to the negative
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option features before making any charge; and
C.

Providing a simple mechanism for a consumer to stop recurring

charges from being placed on the consumer’s credit card, debit card, or other
financial account.

III.

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PROHIBITIONS AGAINST DEBITING CONSUMERS’ BANK
ACCOUNTS WITHOUT AUTHORIZATION
IT IS FURTHER ORDERED that Stipulating Defendants and Stipulating

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8 Defendants’ officers, agents, employees, and attorneys, and all other persons in
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12 active concert or participation with any of them, who receive actual notice of this
13 Order, whether acting directly or indirectly, in connection with the sale of any
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11 good or service, are preliminarily restrained and enjoined from:
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A.
Failing to timely obtain written authorization signed or similarly
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17 authenticated by the consumer for any Preauthorized Electronic Fund Transfer
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14 from a consumer’s account before initiating any Preauthorized Electronic Fund
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15 Transfer; and
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B.
Failing to provide to the consumer a copy of a valid written
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17 authorization signed or similarly authenticated by the consumer for any
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18 Preauthorized Electronic Fund Transfer from a consumer’s account.
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19 IV.
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ASSET FREEZE

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IT IS FURTHER ORDERED that Stipulating Defendants and Stipulating

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Defendants’ officers, agents, employees, and attorneys, and all other persons in

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Order, whether acting directly or indirectly, are preliminarily restrained and

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enjoined from directly or indirectly:

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encumbering, liquidating, loaning, pledging, selling, spending, transferring, or

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

A.

Assigning, concealing, converting, disbursing, dissipating,

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8 withdrawing any asset that is:
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1.
owned, controlled by, or held for the benefit of, any Defendant,
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directly or indirectly;
2.

in the actual or constructive possession of any Defendant;

3.

held as a retainer or deposit for the provision of goods or

services to any Defendant; or
4.

owned, controlled by, held for the benefit of, or in the actual or

constructive possession, of any entity directly or indirectly owned,

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managed, or controlled by any Defendant;
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B.
Opening or causing to be opened any safe deposit box, commercial
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18 mail box, or storage facility belonging to, for the use or benefit of, under the
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25 control of, or subject to access by, any Defendant;
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C.

Incurring charges or cash advances on any credit card, debit card, or

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checking card issued in the name, singly or jointly, of any Defendant;

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asset of any Defendant; and

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D.

E.

Obtaining or providing a personal or secured loan that encumbers an

Cashing any checks or depositing any money orders or cash received

from consumers, clients, or customers of any Defendant.
The assets affected by this Section shall include all assets of Individual

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8 Defendants and Receivership Defendants as of the time this order is entered.
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9 Provided, however, that assets obtained by Stipulating Defendants after the time
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13 this Order is entered that are not derived, directly or indirectly, from activities as
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11 described in the Commission’s Complaint or activities of any Receivership
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12 Defendant, shall not be frozen.
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17 V.
DUTIES OF ASSET HOLDERS
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IT IS FURTHER ORDERED that any financial institution or person that
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15 has, or that at any time since January 1, 2010, has had, custody or control over an
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21 asset belonging to, for the use or benefit of, under the control of or subject to
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17 access by any Stipulating Defendant and that is provided with a copy of this
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18 Order, or otherwise has actual or constructive knowledge of this Order shall:
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A.
Hold and retain any of Stipulating Defendants’ assets that are within
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20 its control and prohibit Stipulating Defendants from assigning, concealing,
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converting, disbursing, dissipating, encumbering, liquidating, loaning, pledging,

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selling, spending, transferring, or withdrawing any asset except:

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1.

as directed by further order of the Court;

2.

as directed in writing by the Permanent Receiver (regarding an

asset belonging to, for the use or benefit of, under the control of, or subject
to access by a Receivership Defendant); or
3.

by written stipulation of the Plaintiff;

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B.
Deny Defendants access to any safe deposit box, commercial mail
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9 box, or storage facility belonging to, for the use or benefit of, under the control of,
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13 or subject to access by, any Stipulating Defendant;
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C.
Within five (5) business days after receiving a copy of this Order,
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12 provide counsel for Plaintiff and the Permanent Receiver a certified statement
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17 setting forth:
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1.
the identification number of each account or asset belonging
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to, for the use or benefit of, under the control of, or subject to access by,
15
20
21
16
22
17
23
18
24

any Stipulating Defendant; and

25
19
26
20
27

Order is received, and, if the account or other asset has been closed or

2.

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

value of such asset as of the close of business on the day on which this

removed, or more than $1,000 withdrawn or transferred from it, the date of

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 17  

1

the closure or removal of funds, the total funds removed or transferred, and

2
2
3
3
4

the name of the person to whom such account or other asset was remitted;
and
D.

5
4

Within five (5) days of a request by Plaintiff or the Permanent

6
5
7
6
8

Receiver, provide Plaintiff and the Permanent Receiver with copies of documents

9
7

statements, signature cards, checks, drafts, deposit tickets, transfers to and from

relating to each asset, including, but not limited to, account applications,

10
8 the accounts, all other debit and credit instruments or slips, currency transaction
11
9 reports, 1099 forms, and safe deposit box logs.
12
13 VI.
10

SERVICE ON FINANCIAL INSTITUTIONS OR PERSONS
HOLDING ASSETS

14
11
IT IS FURTHER ORDERED that copies of this Order may be served by
15
12 any means, including U.S. first class mail, overnight delivery, facsimile, electronic
16
17 mail, or personally by agents or employees of the Plaintiff or the Permanent
13
18
14 Receiver, by any law enforcement agency, or by process server, upon any person
19
15 or financial institution that may have possession, custody, or control over any
20
21
16 asset or document belonging to, for the use or benefit of, under the control of, or
22
17 subject to access by, any Stipulating Defendant, or that may otherwise be subject
23
18 to any provision of this Order. Service upon any branch or office of any financial
24
25
19 institution shall effect service upon the entire financial institution.
26
20
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 18  

1
2
2
3
3
4

VII.

FINANCIAL STATEMENTS
IT IS FURTHER ORDERED that Stipulating Defendants shall each:
A.

Within five (5) days after service of this Order, prepare and provide

5
4

to Plaintiff and the Permanent Receiver complete and accurate financial

6
5
7
6
8

statements, on the forms attached as Attachments A and B of this Order,

9
7

other entities that each Stipulating Defendant owns or controls, jointly or

disclosing all personal assets and all assets of corporations, partnerships, trusts or

10
8 individually;
11
B.
Within five (5) business days after service of this Order, prepare and
9
12
13 provide to Plaintiff and the Permanent Receiver complete and accurate copies of
10
14
11 federal and state income tax forms, including all schedules and attachments for the
15
12 three most recent filing years; and
16
17
C . Immediately upon service of this Order, provide access to documents
13
18
14 held by persons and financial institutions located outside the United States by
19
15 signing the Consent to Release of Financial Records, attached to this Order as
20
21 Attachment C.
16
22
REPATRIATION OF ASSETS AND DOCUMENTS
17 VIII.
23
IT IS FURTHER ORDERED that immediately upon service of this
18
24
25 Order, each Stipulating Defendant shall:
19
26
20
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 19  

A.

1

Take such steps as are necessary to transfer to the United States all

2
2
3
3
4

assets and documents that are located outside the United States and belong to, are

5
4

Stipulating Defendant; and

6
5
7
6
8
9
7

for the use or benefit of, are under the control of, or are subject to access by, any

B.

Hold and retain all repatriated assets and prevent and disposition,

transfer, or dissipation of such assets except as required by this Order.
IX.

NONINTERFERENCE WITH REPATRIATION

10
IT IS FURTHER ORDERED that Stipulating Defendants and Stipulating
8
11
9 Defendants’ officers, agents, employees, and attorneys, and all other persons in
12
13 active concert or participation with any of them who receive actual notice of this
10
14
11 Order, whether acting directly or indirectly, are preliminarily restrained and
15
12 enjoined from taking any action that may result in the encumbrance or dissipation
16
17 of foreign assets, or in the hindrance of the repatriation required by Section VIII
13
18
14 of this Order, including:
19
A.
Sending any statement, letter, fax, email or wire transmission,
15
20
21 telephoning, or engaging in any other act, directly or indirectly, that results in a
16
22
17 determination by a foreign trustee or other entity that a “duress” event has
23
18 occurred under the terms of a foreign trust agreement until such time as all assets
24
25 have been fully repatriated according to Section VIII of this Order; or
19
26
20
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 20  

B.

1

Notifying any trustee, protector, or other agent of any of the

2
2
3
3
4

Stipulating Defendants of the existence of this Order, or of the fact that

5
4

fully repatriated according to Section VIII of this Order.

6
5
7
6
8
9
7

repatriation is required under a Court Order, until such time as all assets have been

X.

CONSUMER CREDIT REPORTS
IT IS FURTHER ORDERED that the FTC may obtain credit reports

concerning any Stipulating Defendant pursuant to Section 604(a)(1) of the Fair

10
8 Credit Reporting Act, 15 U.S.C. § 1681b(a)(1), and that, upon written request, any
11
9 consumer reporting agency from which such reports are requested shall provide
12
13 them to the FTC.
10
14
11 XI.
15
12
16

PRESERVATION OF RECORDS AND REPORT NEW
BUSINESS ACTIVITY
IT IS FURTHER ORDERED that Stipulating Defendants and Stipulating

17 Defendants’ officers, agents, employees, and attorneys, and all other persons in
13
18
14 active concert or participation with any of them, who receive actual notice of this
19
15 Order, whether acting directly or indirectly, are hereby preliminarily restrained
20
21
16 and enjoined from:
22
17
A.
Altering, concealing, destroying, erasing, mutilating, transferring, or
23
18 otherwise disposing of, in any manner, directly or indirectly, any documents,
24
25
19 including electronically stored materials, that relate in any way to the business
26
20 practices or business or personal finances of Defendants; or to the business
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 21  

1

practices or finances of entities directly or indirectly under the control of

2
2
3
3
4

Defendants; and

5
4

entity, whether newly formed or previously inactive, including any partnership,

6
5
7
6
8

limited partnership, joint venture, sole proprietorship, or corporation, without first

9
7

business entity; (2) the address and telephone number of the business entity; (3)

B.

Creating, operating, or exercising any control over any business

providing Plaintiff with a written statement disclosing: (1) the name of the

10
8 the names of the business entity’s officers, directors, principals, managers, and
11
9 employees; and (4) a detailed description of the business entity’s intended
12
13 activities.
10
14
PROHIBITION ON RELEASE OF CUSTOMER INFORMATION
11 XII.
15
OR CUSTOMER LISTS
12
IT IS FURTHER ORDERED that Stipulating Defendants and Stipulating
16
17 Defendants’ officers, agents, employees, and attorneys, and all other persons in
13
18
14 active concert or participation with any of them, who receive actual notice of this
19
15 Order, whether acting directly or indirectly, are hereby preliminarily restrained
20
21
16 and enjoined from:
22
17
A.
selling, renting, leasing, transferring, or otherwise disclosing the
23
18 name, address, telephone number, credit card number, bank account number, e24
25
19 mail address, or other identifying information of any person who paid money to
26
20
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 22  

1

the Defendants for products or services, or who were contacted or are on a list to

2
2
3
3
4

be contacted by the Defendants; and

5
4

number, email address, Social Security numbers, credit card number, bank

6
5
7
6
8

account number, or other financial or identifying personal information of any

9
7

connection with the activities alleged in the Complaint.

B.

Benefitting from or using the name, address, birth date, telephone

person from whom or about whom any Defendant obtained such information in

10
Provided however that the Stipulating Defendants may disclose such
8
11
9 identifying information to a law enforcement agency or as required by any law,
12
13 regulation, or court order.
10
14
APPOINTMENT OF PERMANENT RECEIVER
11 XIII.
15
IT IS FURTHER ORDERED that Charlene Koonce is appointed as
12
16
17 Permanent Receiver for the Receivership Defendants, with the full power of an
13
18
14 equity receiver. The Permanent Receiver shall be the agent of this Court when
19
15 serving as Permanent Receiver, and shall comply with the Federal Rules of Civil
20
21 Procedure and the Local Rules of this Court.
16
22
PERMANENT RECEIVER’S DUTIES
17 XIV.
23
IT IS FURTHER ORDERED that the Permanent Receiver is authorized
18
24
25 and directed to accomplish the following:
19
26
A.
Assume full control of the Receivership Defendants by removing, as
20
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 23  

1

the Permanent Receiver deems necessary or advisable, any director, officer,

2
2
3
3
4

independent contractor, employee, or agent of any of the Receivership

5
4

participation in, the affairs of the Receivership Defendants;

6
5
7
6
8
9
7

Defendants, including any Defendant, from control of, management of, or

B.

Continue and conduct the business of the Receivership Defendants in

such manner, to such extent, and for such duration as the Permanent Receiver may
in good faith deem to be necessary or appropriate to operate the business

10
8 profitably and lawfully, if at all; provided, however, that the continuation and
11
9 conduct of the business shall be conditioned upon the Permanent Receiver’s good
12
13 faith determination that the business can be lawfully operated at a profit using the
10
14
11 assets of the receivership estate;
15
C.
Take exclusive custody, control, and possession of all assets and
12
16
17 documents of, or in the possession, custody, or control of, the Receivership
13
18
14 Defendants, wherever situated. The Permanent Receiver shall have full power to
19
15 divert mail and to sue for, collect, receive, take in possession, hold, and manage
20
21 all assets and documents of the Receivership Defendants and other persons whose
16
22
17 interests are now under the direction, possession, custody, or control of, the
23
18 Receivership Defendants. The Permanent Receiver shall assume control over the
24
25 income and profits and all sums of money now or hereafter due or owing to the
19
26
20 Receivership Defendants. Provided, however, that the Permanent Receiver shall
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 24  

1

not attempt to collect any amount from a consumer if the Permanent Receiver

2
2
3
3
4

believes the consumer was a victim of the unfair or deceptive acts or practices or

5
4
6
5
7
6
8
9
7
10
8
11
9
12
13
10
14
11
15
12
16

other violations of law alleged in the Complaint;
D.

Take all steps necessary to secure the business premises of the

Receivership Defendants. Such steps may include, but are not limited to, any of
the following, as the Permanent Receiver deems necessary or advisable:
1.

serving this Order;

2.

completing a written inventory of all Receivership assets;

3.

obtaining pertinent information from all employees and other

agents of the Receivership Defendants, including the name, home address,
Social Security number, job description, user names or passwords needed to
access Receivership Defendants’ documents, methods of compensation, and

17
13
18
14
19
15
20

all accrued and unpaid commissions and compensation of each such

21
16
22
17
23
18
24

location;

25
19
26
20
27

records maintained at that location;

employee or agent;
4.

5.

photographing and videotaping any or all portions of the

securing the location by changing the locks and disconnecting

any computer modems or other means of access to the computer or other

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 25  

6.

1

opening and inventorying any safe deposit box, commercial

2
2
3
3
4

mail box, or storage facility in the name of any Receivership Defendant,

5
4

Defendant; and

6
5
7
6
8

7.

9
7
10
8
11
9
12
13
10
14
11
15
12
16
17
13
18
14
19
15
20

either individually or jointly, or subject to access by any Receivership

requiring any persons present on the premises at the time this

Order is served to leave the premises, to provide the Permanent Receiver
with proof of identification, or to demonstrate to the satisfaction of the
Permanent Receiver that such persons are not removing from the premises
assets or documents of the Receivership Defendants. Law enforcement
personnel, including police or sheriffs, may assist the Permanent Receiver
in implementing these provisions in order to keep the peace and maintain
security. If requested by the Permanent Receiver, the United States Marshal
will provide appropriate and necessary assistance to the Permanent
Receiver to implement this Order;
E.

Conserve, hold, and manage all assets of the Receivership

21 Defendants, and perform all acts necessary or advisable to preserve the value of
16
22
17 those assets in order to prevent any irreparable loss, damage, or injury to
23
18 consumers or creditors of the Receivership Defendants, including obtaining an
24
25 accounting of the assets and preventing the unauthorized transfer, withdrawal, or
19
26
20 misapplication of assets;
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 26  

1

F.

Enter into and cancel contracts, and purchase insurance as the

2
2
3
3
4

Permanent Receiver deems advisable or necessary;

5
4

and protect the interests of consumers and creditors who have transacted business

6
5
7
6
8

with the Receivership Defendants;

9
7

by performing all incidental acts that the Permanent Receiver deems to be

G.

H.

Prevent the inequitable distribution of assets and determine, adjust,

Manage and administer the business of the Receivership Defendants

10
8 advisable or necessary, which includes retaining, hiring, or dismissing any
11
9 employees, independent contractors, or agents;
12
13
10

I.

Authorize the release of any copy or image of any website used or

14
11 controlled by the Receivership Defendants to the FTC;
15
J.
Choose, engage, and employ attorneys, accountants, appraisers, and
12
16
17 other independent contractors and technical specialists, as the Permanent Receiver
13
18
14 deems advisable or necessary in the performance of duties and responsibilities
19
15 under the authority granted by this Order;
20
21
K.
Make payments and disbursements from the receivership estate that
16
22
17 are necessary or advisable for carrying out the directions of, or exercising the
23
18 authority granted by, this Order. The Permanent Receiver shall apply to the Court
24
25 for prior approval of any payment of any debt or obligation incurred by the
19
26
20 Receivership Defendants prior to the date of entry of this Order, except payments
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 27  

1

that the Permanent Receiver deems necessary or advisable to secure assets of the

2
2
3
3
4

Receivership Defendants, such as rental payments;

5
4

party to such actions or proceedings in state, federal or foreign courts or

6
5
7
6
8

arbitration proceedings as the Permanent Receiver deems necessary and advisable

9
7

Permanent Receiver deems necessary and advisable to carry out the Permanent

L.

Institute, compromise, adjust, appear in, intervene in, or become

to preserve or recover the assets of the Receivership Defendants, or that the

10
8 Receiver’s mandate under this Order, including actions challenging fraudulent or
11
9 voidable transfers;
12
13
10

M.

Defend, compromise, adjust, or otherwise dispose of any or all

14
11 actions or proceedings instituted in the past or in the future against the Permanent
15
12 Receiver in the role of Permanent Receiver, or against the Receivership
16
17 Defendants, as the Permanent Receiver deems necessary and advisable to preserve
13
18
14 the assets of the Receivership Defendants, or as the Permanent Receiver deems
19
15 necessary and advisable to carry out the Permanent Receiver’s mandate under this
20
21 Order;
16
22
N.
Take depositions and issue subpoenas to obtain documents and
17
23
18 records pertaining to the receivership estate and compliance with this Order.
24
25 Subpoenas may be served by agents or attorneys of the Permanent Receiver and
19
26
20 by agents of any process server retained by the Permanent Receiver;
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 28  

1

O.

Maintain accurate records of all receipts and expenditures incurred as

2
2
3
3
4

Permanent Receiver;

5
4

of the Receivership Defendants. The Permanent Receiver shall deposit all funds of

6
5
7
6
8

the Receivership Defendants in such a designated account and shall make all

9
7

P.

Open one or more bank accounts as designated depositories for funds

payments and disbursements from the receivership estate from such account. The
Permanent Receiver shall serve copies of monthly account statements on all

10
8 parties; and
11
Q.
Cooperate with reasonable requests for information or assistance
9
12
13 from any state or federal law enforcement agency.
10
14
11 XV. ACCESS TO BUSINESS OFFICES AND DOCUMENTS
15
IT IS FURTHER ORDERED that:
12
16
17
A.
Stipulating Defendants and their officers, agents, servants,
13
18
14 employees, and attorneys, and all other persons in active concert or participation
19
15 with any of them, who receive actual notice of this Order, whether acting directly
20
21 or indirectly shall allow the Permanent Receiver, and their respective
16
22
17 representatives, agents, attorneys, investigators, paralegals, contractors, or
23
18 assistants access to:
24
25
19
26
20
27

1.

the business premises and storage facilities owned, controlled,

or used by any Receivership Defendant, including, but not limited, to the

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 29  

1

offices and facilities at or in the vicinity of: (a) 6914 Canby Avenue, Suite

2
2
3
3
4

107, Reseda, California 91335; (b) 6925 Canby Avenue, Suite 105, Reseda,

5
4

California 91335, and any offsite commercial mail boxes used by any

6
5
7
6
8

Receivership Defendant;

9
7

business, sales operations or customer service operations; and

10
8
11
9
12
13
10

California 91335; and (c) 6950 Canby Avenue, Suite 103, Reseda,

2.

3.

any premises where the Receivership Defendants conduct

any premises where assets or documents related to the

Receivership Defendants’ businesses are stored or maintained;
B.

The Permanent Receiver, and their representatives, agents, and

14
11 assistants, are authorized to employ the assistance of law enforcement as they
15
12 deem necessary to effect service and to implement peacefully this Order. The
16
17 Temporary Receiver may exclude Receivership Defendants and their employees
13
18
14 from the business premises during the immediate access;
19
C.
The purpose of the immediate access shall be to inspect and copy the
15
20
21 business and financial documents of the Receivership Defendants, including
16
22
17 forensic imaging of electronically stored information. Such business documents
23
18 include, but are not limited to, correspondence, contracts, sales records, and
24
25 financial data;
19
26
20
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 30  

1

D.

The Permanent Receiver shall have the right to remove any

2
2
3
3
4

documents related to Defendants’ business practices from the premises in order

5
4

shall be returned within five (5) business days of completing said inventory and

6
5
7
6
8

copying;

9
7

finances or business practices are located in the residence of any Defendant or are

that they may be inspected, inventoried, and copied. The materials so removed

E.

If any assets or documents relating to the Receivership Defendants’

10
8 otherwise in the custody or control of any Defendant, then such Defendant shall
11
9 produce them to the Permanent Receiver within forty-eight (48) hours of service
12
13 of this Order;
10
14
F.
In order to prevent the destruction of electronically stored
11
15
12 information, upon service of this Order upon Defendants, any computers used in
16
17 Receivership Defendants’ business shall be powered down (turned off) in the
13
18
14 normal course for the operating systems used on such computers and shall not be
19
15 powered up or used again until produced for copying and inspection, along with
20
21 any codes needed for access; and
16
22
G.
The Permanent Receiver shall have the discretion to determine
17
23
18 the time, manner, and reasonable conditions of access to the Receivership
24
25 Defendants’ premises.
19
26
20
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 31  

1
2
2
3
3
4

XVI.

PERMANENT RECEIVER’S BOND
IT IS FURTHER ORDERED that the Permanent Receiver has filed with

the Clerk of this Court a bond in the sum of $20,000, with sureties approved by

5
4

this Court, and shall well and truly perform the duties of the office and abide by

6
5
7
6
8

and perform all acts the Court directs.

9
7

XVII.

DELIVERY OF RECEIVERSHIP PROPERTY
IT IS FURTHER ORDERED that Stipulating Defendants and Stipulating

10
8 Defendants’ officers, agents, employees, and attorneys, and all other persons in
11
9 active concert or participation with any of them, who receive actual notice of this
12
13 Order, and any other person with possession, custody or control of assets or
10
14
11 documents relating to the Receivership Defendants shall upon notice of this Order,
15
12 by personal service or otherwise, immediately notify the Permanent Receiver of,
16
17 and, upon receiving a request from the Permanent Receiver, immediately transfer
13
18
14 or deliver to the Permanent Receiver possession, custody, and control of, the
19
15 following:
20
21
A.
All assets of the Receivership Defendants;
16
22
B.
All documents of the Receivership Defendants, including books and
17
23
18 records of accounts, all financial and accounting records, balance sheets, income
24
25 statements, bank records (including monthly statements, canceled checks, records
19
26
20 of wire transfers, and check registers), client lists, title documents and other
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 32  

1
2
2
3
3
4
5
4

papers;
C.

All computers and data in whatever form used to conduct the

business of the Receivership Defendants; and
D.

All usernames, keys, codes, and passwords necessary to gain or to

6
5
7
6
8

secure access to any assets or documents of the Receivership Defendants,

9
7

computer systems, or other property.

including access to their business premises, means of communication, accounts,

10
In the event that any person or entity fails to deliver or transfer any asset or
8
11
9 document or otherwise fails to comply with any provision of this Section, the
12
13 Permanent Receiver may file ex parte an Affidavit of Non-Compliance regarding
10
14
11 the failure. Upon filing of the affidavit, the Court may authorize, without
15
12 additional process or demand, Writs of Possession or Sequestration or other
16
17 equitable writs requested by the Permanent Receiver. The writs shall authorize
13
18
14 and direct the United States Marshal or any sheriff or deputy sheriff of any
19
15 county, or any other federal or state law enforcement officer, to seize the asset,
20
21 document, or other item covered by this Section and to deliver it to the Permanent
16
22
17 Receiver.
23
18 XVIII. PROVISION OF INFORMATION TO PERMANENT RECEIVER
24
25
IT IS FURTHER ORDERED that Stipulating Defendants shall provide to
19
26
20 the Permanent Receiver, immediately upon request, without need of any subpoena
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 33  

1
2
2
3
3
4
5
4
6
5
7
6
8
9
7

or further order, the following:
A.

A list of all locations where documents of the Receivership

Defendants are located, and the means to access such documents within five hours
of the Permanent Receiver’s request; and

B.

Within forty-eight (48) hours of service of this Order, the

Stipulating Defendants shall produce to the Permanent Receiver a list of all

10
8 agents, employees, officers, and those persons in active concert and participation
11
9 with them, who have been associated or done business with the Receivership
12
13 Defendant(s).
10
14
COOPERATION WITH THE PERMANENT RECEIVER
11 XIX.
15
IT IS FURTHER ORDERED that Stipulating Defendants and Stipulating
12
16
17 Defendants’ officers, agents, employees, and attorneys, and all other persons in
13
18
14 active concert or participation with any of them, who receive actual notice of this
19
15 Order, and any other person served with a copy of this Order shall fully cooperate
20
21 with and assist the Permanent Receiver in taking and maintaining possession,
16
22
17 custody, or control of the assets and documents of the Receivership Defendants.
23
18 This cooperation and assistance shall include:
24
25
A.
Providing information to the Permanent Receiver that the Permanent
19
26
20 Receiver deems necessary in order to exercise the authority and discharge the
27

(PROPOSED) STIPULATED PRELIMINARY INJUNCTION ORDER 

Page | 34  

1
2
2
3
3
4
5
4

responsibilities of the Permanent Receiver under this Order;
B.

Advising all persons who owe money to the Receivership Defendants

that all debts should be paid directly to the Permanent Receiver; and
C.

Transferring funds at the Permanent Receiver’s direction and

6
5
7
6
8

producing documents related to the assets and sales of the Receivership

9
7

under this provision include financial institutions and persons that have transacted

Defendants. The entities obligated to cooperate with the Permanent Receiver

10
8 business with the Receivership Defendants.
11
NONINTERFERENCE WITH THE PERMANENT RECEIVER
9 XX.
12
13
10

IT IS FURTHER ORDERED that Stipulating Defendants and Stipulating

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11 Defendants’ officers, agents, employees, attorneys, and all other persons in active
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12 concert or participation with any of them, who receive actual notice of this Order,
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17 and their corporations, subsidiaries, divisions, or affiliates, are hereby restrained
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14 and enjoined from directly or indirectly:
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A.
Interfering with the Permanent Receiver managing, or taking
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21 custody, control, or possession of, the assets or documents subject to this
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17 Receivership;
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B.
Transacting any of the business of the Receivership Defendants;
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C.
Transferring, receiving, altering, selling, encumbering, pledging,
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in the possession or custody of, or in which an interest is held or claimed by, the

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Receivership Defendants, or the Permanent Receiver; and

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Receiver’s duly authorized agents in the exercise of their duties or authority under

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any order of this Court.

D.

Refusing to cooperate with the Permanent Receiver or the Permanent

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XXI.

PERMANENT RECEIVER’S REPORT
IT IS FURTHER ORDERED that the Permanent Receiver shall report to

this Court: (1) the steps taken by the Permanent Receiver to implement the terms

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of this Order; (2) the value of all liquidated and unliquidated assets of

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Receivership Defendants; (3) the sum of all liabilities of Receivership Defendants;

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(4) the steps the Permanent Receiver intends to take in the future to: (a) prevent
any diminution in the value of assets of Receivership Defendants; (b) pursue

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8 receivership assets from third parties; and (c) adjust the liabilities of Receivership
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9 Defendants, if appropriate; (5) the Permanent Receiver’s finding regarding the
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13 ability of the Receivership Defendants to operate legally and profitably; and (6)
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11 any other matters that the Permanent Receiver believes should be brought to the
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12 Court’s attention. Provided, however, if any of the required information would
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17 hinder the Permanent Receiver’s ability to pursue receivership assets, the portions
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14 of the Permanent Receiver’s report containing the information may be filed under
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15 seal and not served on the parties.
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21 XXII. STAY OF ACTIONS AGAINST DEFENDANTS
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IT IS FURTHER ORDERED that, except by leave of this Court, during
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18 the pendency of the Receivership ordered herein, Stipulating Defendants and
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25 Stipulating Defendants’ officers, agents, employees, attorneys, and all other
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notice of this Order, and any person seeking to establish or enforce any right, title,

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interest, or claim against or on behalf of any Defendant, and all others acting for

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interfere with the exclusive jurisdiction of this Court over the assets or documents

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of the Defendants, including:

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Bankruptcy Code, 11 U.S.C. § 101 et seq., or of any similar insolvency

or on behalf of such persons, are hereby enjoined from taking action that would

A.

Filing or assisting in the filing of a petition for relief under the

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8 proceeding;
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B.
Commencing, prosecuting, continuing, entering, or enforcing any suit
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13 or proceeding against the Defendants, except that such actions may be
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11 commenced if necessary to toll any applicable statute of limitations;
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C.
Accelerating the due date of any obligation or claimed obligation;
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17 filing or enforcing any lien; taking or attempting to take possession, custody, or
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14 control of any asset; attempting to foreclose, forfeit, alter, or terminate any interest
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15 in any asset, whether such acts are part of a judicial proceeding, are acts of self20
21 help, or otherwise;
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D.
Filing or enforcing any lien on any asset of the Defendants, taking or
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18 attempting to take possession, custody, or control of any asset of the Defendants;
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25 or attempting to foreclose, forfeit, alter, or terminate any interest in any asset of
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20 the Defendants, whether such acts are part of a judicial proceeding, are acts of
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self-help, or otherwise; or
E.

Initiating any other process or proceeding that would interfere with

the Permanent Receiver managing or taking custody, control, or possession of, the
assets or documents subject to this receivership.
Provided that, this Order does not stay: (1) the commencement or
continuation of a criminal action or proceeding; (2) the commencement or
continuation of an action or proceeding by a governmental unit to enforce such

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8 governmental unit’s police or regulatory power; or (3) the enforcement of a
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9 judgment, other than a money judgment, obtained in an action or proceeding by a
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13 governmental unit to enforce such governmental unit’s police or regulatory power.
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11 XXIII. COMPENSATION OF PERMANENT RECEIVER
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IT IS FURTHER ORDERED that the Permanent Receiver and all
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17 personnel hired by the Permanent Receiver, including counsel to the Permanent
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14 Receiver and accountants, are entitled to reasonable compensation for the
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15 performance of duties pursuant to this Order and for the cost of actual out-of20
21 pocket expenses incurred by them solely, from the assets now held by, in the
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17 possession or control of, or which may be received by, the Receivership
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18 Defendants. The Permanent Receiver shall file with the Court and serve on the
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25 parties periodic requests for the payment of such reasonable compensation, with
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this Order. The Permanent Receiver shall not increase the hourly rates used as the

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bases for such fee applications without prior approval of the Court.

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XXIV.

EXPEDITED DISCOVERY

IT IS FURTHER ORDERED that, the Permanent Receiver is authorized

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to conduct expedited discovery concerning Receivership Defendants’ assets, the

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location of the Receivership Defendants’ documents and business records in

products and services offered by Receivership Defendants, and the nature and

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8 accordance with the following provisions:
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A.
The Permanent Receiver may take the depositions of parties and non9
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13 parties. Forty-eight (48) hours’ notice shall be sufficient notice for such
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B.
The Permanent Receiver may serve upon parties requests for
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17 production of documents or inspection that require production or inspection within
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14 five (5) calendar days of service, and may serve subpoenas upon non-parties that
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15 direct production or inspection within five (5) calendar days of service;
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C.
The Permanent Receiver may serve deposition notices and other
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17 discovery requests upon the parties to this action by facsimile or overnight
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D.

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Any discovery taken pursuant to this Order is in addition to, and is

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not subject to, the presumptive limits on discovery set forth in the Federal Rules

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XXV.

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of Civil Procedure and Local Rules of this Court.
DISTRIBUTION OF ORDER BY DEFENDANTS
IT IS FURTHER ORDERED that Stipulating Defendants shall
immediately provide a copy of this Order to each affiliate, sales entity, successor,
assign, member, officer, director, employee, agent, independent contractor, client,

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8 servant, attorney, spouse, subsidiary, division, and representative of any
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9 Defendant, and shall, within ten (10) days from the date of entry of this Order,
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13 individually provide the FTC with a sworn statement that each Defendant has
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11 complied with this provision of the Order, which statement shall include the
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12 names and addresses of each such person or entity who received a copy of this
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17 Order.
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14 XXVI. RETENTION OF JURISDICTION
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IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this
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21 matter for all purposes.
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SO ORDERED,

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Dated: July 23, 2015

___________________________________
The Honorable George H. Wu
United States District Judge

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