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

Filing 441

STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONETARY JUDGMENT AS TO STIPULATING DEFENDANT PAUL MEDIAN by Judge George H. Wu: IT IS ORDERED that Stipulating Defendant is permanently restrained and enjoined. IT IS FURTHER ORDERED that: Judgment in the amount of SEVENTY THREE MILLION THREE HUNDRED AND TWENTY SIX THOUSAND AND FIFTY FOUR Dollars ($73,326,054) is entered in favor of the Commission against Stipulating Defendant as equitable monetary relief. (mg)

TERM PARTY

1 DAVID C. SHONKA
Acting General Counsel
2
DAMA J. BROWN
3 Regional Director
REID TEPFER
4 [e-mail]
Texas Bar No. 24079444
5 LUIS GALLEGOS
[e-mail]
6 Oklahoma Bar No. 19098
Federal Trade Commission
1999 Bryan Street, Suite 2150
7 Dallas, Texas 75206
[phone] (Tepfer)
8 [phone] (Gallegos)
[phone] (fax)
9
RAYMOND MCKOWN
[e-mail]
10 California Bar No. 150975
10877 Wilshire Boulevard, Suite 700
11 Los Angeles, California 90024
[phone] (voice)
12 [phone] (fax)
13 Attorneys for Plaintiff Federal Trade Commission
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION

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

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Plaintiff,
v.

18 BUNZAI MEDIA GROUP, INC.,
et al.
Defendants.
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STIPULATED ORDER FOR
PERMANENT INJUNCTION
AND MONETARY JUDGMENT
AS TO STIPULATING
DEFENDANT PAUL MEDINA

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STIPULATED ORDER FOR PERMANENT INJUNCTION
AND MONETARY JUDGMENT

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Plaintiff, the Federal Trade Commission (Commission or FTC), filed its
Complaint for Permanent Injunction and Other Equitable Relief (Complaint)
(Dkt #3), for a permanent injunction and other equitable relief in this matter,
pursuant to Sections 13(b) and 19 of the Federal Trade Commission Act (FTC
Act), 15 U.S.C. §§ 53(b) and 57b, Section 5 of the Restore Online Shoppers’
Confidence Act (ROSCA), 15 U.S.C. § 8404, and Section 917(c) of the Electronic
Funds Transfer Act (EFTA), 15 U.S.C. § 1693o(c). The Commission and

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8 Stipulating Defendant Paul Medina stipulate to the entry of this Stipulated Order
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9 for Permanent Injunction and Monetary Judgment (Order) to resolve all matters in
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13 dispute in this action between them.
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THEREFORE, IT IS ORDERED as follows:
FINDINGS

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This Court has jurisdiction over this matter.
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The Complaint charges that Stipulating Defendant and Defendants
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15 participated in deceptive and unfair acts or practices in violation of Section 5 of
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21 the FTC Act, 15 U.S.C. § 45, Section 4 of ROSCA, 15 U.S.C. § 8403, and Section
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17 907(a) of EFTA, 15 U.S.C. § 1693e(a), in connection with the online sale of
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18 skincare products through a negative option continuity plan.
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25 3.
Stipulating Defendant neither admits nor denies any of the allegations in
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20 the Complaint related to Stipulating Defendant, except as specifically stated in this
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STIPULATED ORDER FOR PERMANENT INJUNCTION
AND MONETARY JUDGMENT
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Order. Only for purposes of this action, Stipulating Defendant admits the facts

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necessary to establish jurisdiction.

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Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action

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through the date of this Order, and agrees to bear his own costs and attorney fees.

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contest the validity of this Order.

4.

5.

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13 A.
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Stipulating Defendant waives any claim that he may have under the Equal

Stipulating Defendant waives all rights to appeal or otherwise challenge or

DEFINITIONS
For the purpose of this Order, the following definitions apply:
“Acquirer” means a business organization, financial institution, or an agent

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11 of a business organization or financial institution that has authority from an
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12 organization that operates or licenses a credit card system (e.g. Visa, MasterCard,
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17 American Express, and Discover) to authorize merchants to accept, transmit, or
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14 process payment by credit card through the credit card system for money, goods or
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15 services, or anything else of value.
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21 B.
“Charge” or “Charging” means causing billing information to be
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17 submitted for payment, including against a consumer’s credit card, debit card,
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18 bank account, phone bill, or other account, or otherwise attempting to collect
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C.

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miss (i.e., easily noticeable) and easily understandable by ordinary consumers,

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“Clear and conspicuous” means that a required disclosure is difficult to

including in all of the following ways:
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In any communication that is solely visual or solely audible, the

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disclosure must be made through the same means through which the

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audible means, such as a television advertisement, the disclosure must be

communication is presented. In any communication made through both visual and

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8 presented simultaneously in both the visual and audible portions of the
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9 communication even if the representation requiring the disclosure is made in only
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13 one means.
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2.
A visual disclosure, by its size, contrast, location, the length of time it
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12 appears, and other characteristics, must stand out from any accompanying text or
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17 other visual elements so that it is easily noticed, read, and understood.
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3.
An audible disclosure, including by telephone or streaming video,
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15 must be delivered in a volume, speed, and cadence sufficient for ordinary
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21 consumers to easily hear and understand it.
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In any communication using an interactive electronic medium, such
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On a product label, the disclosure must be presented on the principal
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6.

The disclosure must use diction and syntax understandable to

ordinary consumers and must appear in each language in which the representation
that requires the disclosure appears.
7.

The disclosure must comply with these requirements in each medium

through which it is received, including all electronic devices and face-to-face
communications.
8.

The disclosure must not be contradicted or mitigated by, or

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8 inconsistent with, anything else in the communication.
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When the representation or sales practice targets a specific audience,
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13 such as children, the elderly, or the terminally ill, “ordinary consumers” includes
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11 reasonable members of that group.
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“Credit Card Laundering” means:
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1.
Presenting or depositing into, or causing or allowing another to
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14 present or deposit into, the credit card system for payment, a Credit Card Sales
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15 Draft generated by a transaction that is not the result of a credit card transaction
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21 between the cardholder and the Stipulating Defendant;
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Employing, soliciting, or otherwise causing or allowing a Merchant,
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18 or an employee, representative, or agent of a Merchant, to present to or deposit
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25 into the credit card system for payment, a Credit Card Sales Draft generated by a
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transaction that is not the result of a credit card transaction between the cardholder

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and the Merchant; or

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business relationship or an affiliation with a Merchant, when such access is not

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authorized by the Merchant Account agreement or the applicable credit card

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E.

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Obtaining access to the credit card system through the use of a

system.
“Credit Card Sales Draft” means any record or evidence of a credit card

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“Continuity Plan” means any plan, arrangement, or system in
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13 which a consumer is periodically charged for products or services without prior
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11 notification by the seller before each charge.
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“Defendants” means all of the Individual Defendants and the Corporate
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17 Defendants, individually, collectively, or in any combination.
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“Corporate Defendants” means Bunzai Media Group, Inc., d/b/a
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15 AuraVie and Miracle Face Kit; Pinnacle Logistics, Inc.; DSA Holdings, Inc.;
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21 Lifestyle Media Brands, Inc.; Agoa Holdings, Inc.; Zen Mobile Media, Inc.;
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17 Safehaven Ventures, Inc.; Heritage Alliance Group, Inc., also doing business as
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18 AuraVie Distribution; AMD Financial Network, Inc.; SBM Management, Inc.;
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25 Media Urge, Inc.; Adageo, LLC; Calenergy, Inc.; KAI Media, Inc.; Insight Media,
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20 Inc.; Focus Media Solutions, Inc.; Secured Commerce, LLC; Secured Merchants,
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LLC; USM Products, Inc.; Merchant Leverage Group, Inc.; DMA Media Holding,

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Inc.; Shalita Holdings, Inc.; All Star Beauty Products, Inc. and their successors
and assigns
2.

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“Individual Defendants” mean Alon Nottea, Motti Nottea, Doron

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Nottea, Igor Latsanovski, Oz Mizrahi, Roi Reuveni, Kristopher Bond a/k/a Ray

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combination.

Ibbot, Alan Argaman, and Paul Medina individually, collectively, or in any

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3.

“Stipulating Defendant” means Paul Medina.

“Electronic Fund Transfer” means any transfer of funds, other than a

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12 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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14 machine transactions, direct deposits or withdrawals of funds, and transfers
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15 initiated by telephone. Such term does not include:
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Any check guarantee or authorization service that does not directly

result in a debit or credit to a consumer’s account;
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Any transfer of funds, other than those processed by automated

clearinghouse, made by a financial institution on behalf of a consumer by means
of a service that transfers funds held at either Federal Reserve banks or other
STIPULATED ORDER FOR PERMANENT INJUNCTION
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depository institutions and that is not designed primarily to transfer funds on

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behalf of a consumer;

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of securities or commodities through a broker-dealer registered with or regulated

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by the Securities and Exchange Commission;

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account pursuant to an agreement between a consumer and a financial institution

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3.

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Any transaction the primary purpose of which is the purchase or sale

Any automatic transfer from a savings account to a demand deposit

for the purpose of covering an overdraft or maintaining an agreed upon minimum
balance in the consumer’s demand deposit account; or
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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

17 transfers are not contemplated.
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“Material” means likely to affect a person’s choice of, or conduct
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“Merchant” means a person who is authorized under a written contract with
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17 an Acquirer to honor or accept credit cards, or to transmit or process for payment
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18 credit card payments, for the purchase of goods or services.
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“Merchant Account” means an account with an Acquirer that authorizes
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payment credit card payments, for the purchase of goods or services or a

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charitable contribution.

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

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

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

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

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8 M. “Preauthorized Electronic Fund Transfer” as defined by the Electronic
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9 Fund Transfer Act, 15 U.S.C. § 1693a(10), means an electronic fund transfer
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13 authorized in advance to recur at substantially regular intervals.
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“Receiver” means Charlene Koonce, the person appointed by the Court in
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12 this matter pursuant to the Temporary Restraining Order and the Preliminary
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17 Injunction. 
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ORDER
I.

BAN ON NEGATIVE OPTION SALES

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IT IS ORDERED that Stipulating Defendant is permanently restrained and
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17 enjoined from advertising, marketing, promoting, or offering for sale any good or
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18 service with a Negative Option Feature, whether directly or through an
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25 intermediary, including by consulting, planning, participating, facilitating or
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STIPULATED ORDER FOR PERMANENT INJUNCTION
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II.

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PROHIBITED BUSINESS ACTIVITY

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating

Defendant’s 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 directly or indirectly, in connection with promoting or
offering for sale any good or service, are permanently restrained and enjoined
from:

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Before a customer consents to pay for such good or service, failing to
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12 disclose, or assisting others in failing to disclose, in a clear and conspicuous
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1.

The amount, timing, and manner of all fees, charges, or other
amounts that a consumer will be charged or billed, including but not
limited to the date of the charge and whether it will be a credit card
charge or checking account debit;

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The dates that any limited time sales offer begins and ends;

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The identity of the seller, including the seller’s name, physical
address, and customer service telephone number;

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The total costs to purchase, receive, or use, and the quantity of, any
goods or services that are the subject of the sales offer;

STIPULATED ORDER FOR PERMANENT INJUNCTION
AND MONETARY JUDGMENT
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5.

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Any material restriction, limitation, or condition to purchase, receive,
or use goods or services that are the subject of a sales offer;

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Before a customer consents to pay for such good or service, failing to

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disclose, or assisting others in failing to disclose, in a clear and conspicuous

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manner all material terms and conditions of any refund or cancellation policies,

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including:
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submitted;
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The email address, web address, or street address to which such
requests must be directed;

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4.

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The customer service telephone number that a customer must call to
cancel or return goods or services;

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The specific steps and means by which such requests must be

Any mechanism that customers must use to return any goods or
services, including any requirement for specific tracking methods or
delivery confirmation for a package;
If there is any policy of not making refunds or cancellations,
including any requirement that a product will not be accepted for
return or refund unless it is unopened and in re-sellable condition, a
statement regarding this policy;

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The date by which a customer is required to request a refund;
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C.

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implication, any fact material, including:

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Misrepresenting, or assisting others in misrepresenting, expressly or by

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That a good or service is free, a bonus, a gift, a trial, without cost;

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That a good or service is available for a minimal processing, service,
or administrative fee or without further obligation;

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or money-back guarantee;

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That a purchase is “risk free” or offered with a satisfaction guarantee

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That the seller is accredited or rated favorably by the Better Business
Bureau;

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A seller’s affiliation with, or endorsement or sponsorship by, any
person or entity;

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The amount that a consumer’s credit or debit card will be charged
and the timing of the charge(s);

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That a transaction has been authorized by a consumer;

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The dates that any limited time sales offer begins and ends;

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The requirements or terms of the seller’s refund or cancellation
policies;

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The identity of the seller, including the seller’s name, physical
address, and customer service telephone number;

STIPULATED ORDER FOR PERMANENT INJUNCTION
AND MONETARY JUDGMENT
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11.

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goods or services that are the subject of the sales offer;
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Any material restriction, limitation, or condition to purchase, receive,
or use goods or services that are the subject of a sales offer;

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The total costs to purchase, receive, or use, and the quantity of, any

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Any material aspect of the performance, efficacy, nature, or central
characteristics of a good or service;

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Providing false information to any bank or other billing entity, directly or

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8 indirectly, to contest a consumer’s request for a refund, cancellation, chargeback,
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9 or reversal of payment;
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Failing to obtain a consumer’s express informed consent by causing billing

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11 information to be submitted for payment, or collecting or attempting to collect
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12 payment for goods or services without the consumer’s express verifiable
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17 authorization, which shall include: (a) the customer’s signature, including an
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14 electronic or digital form of signature that is recognized as a valid signature under
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15 federal law; or (b) express oral authorization that is audio-recorded and made
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17 evidences clearly both the customer’s authorization of payment and the
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18 customer’s receipt of the following information: (i) The number of debits,
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25 charges, or payments (if more than one); (ii) the date(s) the debit(s), charge(s), or
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charge(s), or payment(s); (iv) the customer’s name; (v) the customer’s billing

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information identified with sufficient specificity such that the customer

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the seller’s name, physical address, and telephone number; (vii) the date of the

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customer’s oral authorization.;

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from consumers for Preauthorized Electronic Fund Transfers from the consumer’s

understands what account will be used to collect payment; (vi) identification of

F.

Failing to obtaining written authorization signed or similarly authenticated

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Failing to provide a copy of a written authorization signed or similarly
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13 authenticated by a consumer for Preauthorized Electronic Fund Transfers from the
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III. PROHIBITIONS RELATED TO MERCHANT ACCOUNTS
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IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating
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14 Defendant’s officers, agents, employees, and attorneys, and all other persons in
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15 active concert or participation with any of them, who receive actual notice of this
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21 Order, whether acting directly or indirectly, in connection with promoting or
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17 offering for sale any good or service, are permanently restrained and enjoined
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18 from Credit Card Laundering.
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IV.

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MONETARY JUDGMENT AND PARTIAL SUSPENSION

IT IS FURTHER ORDERED that:
A.

Judgment in the amount of SEVENTY THREE MILLION THREE

HUNDRED AND TWENTY SIX THOUSAND AND FIFTY FOUR Dollars
($73,326,054) is entered in favor of the Commission against Stipulating
Defendant as equitable monetary relief.
B.

Stipulating Defendant is ordered to pay to the Commission TWENTY FIVE

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8 THOUSAND DOLLARS ($25,000). Such payment must be made within 60 days
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12 of entry of this Order by electronic fund transfer in accordance with instructions
13 previously provided by a representative of the Commission. Upon such payment,
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11 the remainder of the judgment is suspended, subject to the Subsections below.
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The Commission’s agreement to the suspension of part of the judgment is
12 C.
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17 expressly premised upon the truthfulness, accuracy, and completeness of
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14 Stipulating Defendant’s sworn financial statements and related documents
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15 (collectively, “financial representations”) submitted to the Commission, namely:
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1.

the Financial Statement of Individual Defendant Paul Medina
signed on November 11, 2015, including the attachments; and

2.

the Financial Statement of Ad Lifestyle Network, Inc., signed
on December 1, 2015, including the attachments.

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AND MONETARY JUDGMENT
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D.

The suspension of the judgment will be lifted as to Stipulating Defendant

if, upon motion by the Commission, the Court finds that Stipulating Defendant
failed to disclose any material asset, materially misstated the value of any asset, or
made any other material misstatement or omission in the financial representations
identified above.
E.

If the suspension of the judgment is lifted, the judgment becomes

immediately due as to Stipulating Defendant in the amount specified in

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8 Subsection A above which the parties stipulate only for purposes of this Section
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9 represents the consumer injury alleged in the Complaint, less any payment
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13 previously made pursuant to this Section, plus interest computed from the date of
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11 entry of this Order.
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V. ADDITIONAL MONETARY PROVISIONS
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IT IS FURTHER ORDERED that:
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14 A.
Stipulating Defendant relinquishes dominion and all legal and equitable
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15 right, title, and interest in all assets transferred pursuant to this Order and may not
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21 seek the return of any assets.
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17 B.
The facts alleged in the Complaint will be taken as true, without further
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18 proof, in any subsequent civil litigation by or on behalf of the Commission,
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25 including in a proceeding to enforce its rights to any payment or monetary
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judgment pursuant to this Order, such as a nondischargeability complaint in any
bankruptcy case.
C.

The facts alleged in the Complaint establish all elements necessary to

sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the
Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral
estoppel effect for such purposes.
D.

Stipulating Defendant acknowledges that his Taxpayer Identification

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8 Number (Social Security Number or Employer Identification Number), which
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9 Stipulating Defendant previously submitted to the Commission, may be used for
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13 collecting and reporting on any delinquent amount arising out of this Order, in
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11 accordance with 31 U.S.C. §7701.
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All money paid to the Commission pursuant to this Order may be deposited
12 E.
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17 into a fund administered by the Commission or its designee to be used for
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14 equitable relief, including consumer redress and any attendant expenses for the
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15 administration of any redress fund. If a representative of the Commission decides
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21 that direct redress to consumers is wholly or partially impracticable or money
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17 remains after redress is completed, the Commission may apply any remaining
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18 money for such other equitable relief (including consumer information remedies)
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25 as it determines to be reasonably related to Defendants’ practices alleged in the
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20 Complaint. Any money not used for such equitable relief is to be deposited to the
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U.S. Treasury as disgorgement. Stipulating Defendant has no right to challenge

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any actions the Commission or its representatives may take pursuant to this
Subsection.

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VI.

CUSTOMER INFORMATION

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

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participation with any of them, who receive actual notice of this Order, whether

IT IS FURTHER ORDERED that Stipulating Defendant, his officers,

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8 acting directly or indirectly, are permanently restrained and enjoined from directly
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12 or indirectly:
13 A.
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Failing to provide sufficient customer information to enable the

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11 Commission to efficiently administer consumer redress. Stipulating Defendant
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12 represents that he has provided this redress information to the Commission. If a
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17 representative of the Commission requests in writing any information related to
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14 redress, Stipulating Defendant must provide it, in the form prescribed by the
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15 Commission, within 14 days.
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21 B.
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Disclosing, using, or benefitting from customer information, including the
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17 name, address, telephone number, email address, Social Security number, other
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18 identifying information, or any data that enables access to a customer’s account
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25 (including a credit card, bank account, or other financial account), that any
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Defendant obtained prior to entry of this Order in connection with the sale of any
product through a negative option continuity plan; and
C.

Failing to destroy such customer information in all forms in his possession,

custody, or control within 30 days after receipt of written direction to do so from a
representative of the Commission.
Provided, however, that customer information need not be disposed of, and
may be disclosed, to the extent requested by a government agency or required by

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8 law, regulation, or court order.
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VI.
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COOPERATION

IT IS FURTHER ORDERED that Stipulating Defendant must fully

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11 cooperate with representatives of the Commission and the Receiver in this case
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12 and in any investigation related to or associated with the transactions or the
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17 occurrences that are the subject of the Complaint. Stipulating Defendant must
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14 provide truthful and complete information, evidence, and testimony. Stipulating
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15 Defendant must appear for interviews, discovery, hearings, trials, and any other
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21 proceedings that a Commission or Receiver representative may reasonably request
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17 upon 5 days written notice, or other reasonable notice, at such places and times as
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18 a Commission or Receiver representative may designate, without the service of a
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25 subpoena.
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VII.

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ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Stipulating Defendant obtain
acknowledgments of receipt of this Order:
A.

Stipulating Defendant, within 7 days of entry of this Order, must submit to

the Commission an acknowledgment of receipt of this Order sworn under penalty
of perjury.
B.

For 15 years after entry of this Order, Stipulating Defendant for any

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8 business that he, individually or collectively with any other Defendant, is the
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12 majority owner or controls directly or indirectly, must deliver a copy of this Order
13 to: (1) all principals, officers, directors, and LLC managers and members; (2) all
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11 employees, agents, and representatives who participate in conduct related to the
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12 subject matter of the Order; and (3) any business entity resulting from any change
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17 in structure as set forth in the Section titled Compliance Reporting. Delivery must
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14 occur within 7 days of entry of this Order for current personnel. For all others,
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15 delivery must occur before they assume their responsibilities.
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21 C.
From each individual or entity to which Stipulating Defendant delivered a
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17 copy of this Order, Stipulating Defendant must obtain, within 30 days, a signed
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18 and dated acknowledgment of receipt of this Order.
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IX.

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COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Stipulating Defendant make timely
submissions to the Commission:
A.

One year after entry of this Order, Stipulating Defendant must submit a

compliance report, sworn under penalty of perjury:
1.

Stipulating Defendant must: (a) identify the primary physical, postal,

and email address and telephone number, as designated points of contact, which

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12 Defendant; (b) identify all of Stipulating Defendant’s businesses by all of their
13 names, telephone numbers, and physical, postal, email, and Internet addresses;
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11 (c) describe the activities of each business, including the goods and services
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12 offered, the means of advertising, marketing, and sales, and the involvement of
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17 any other Defendant which Stipulating Defendant must describe if he knows or
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14 should know due to his own involvement; (d) describe in detail whether and how
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15 Stipulating Defendant is in compliance with each Section of this Order; and
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21 (e) provide a copy of each Order Acknowledgment obtained pursuant to this
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17 Order, unless previously submitted to the Commission.
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2.
Additionally, Stipulating Defendant must: (a) identify all telephone
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20 residences; (b) identify all business activities, including any business for which
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Stipulating Defendant performs services whether as an employee or otherwise and

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any entity in which Stipulating Defendant has any ownership interest; and

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including title, role, responsibilities, participation, authority, control, and any

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ownership.

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compliance notice, sworn under penalty of perjury, within 14 days of any change

(c) describe in detail Stipulating Defendant’s involvement in each such business,

B.

For 15 years after entry of this Order, Stipulating Defendant must submit a

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8 in the following:
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1.
Stipulating Defendant must report any change in: (a) any designated
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13 point of contact; or (b) the structure of any entity that Stipulating Defendant has
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11 any ownership interest in or controls directly or indirectly that may affect
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12 compliance obligations arising under this Order, including: creation, merger, sale,
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17 or dissolution of the entity or any subsidiary, parent, or affiliate that engages in
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14 any acts or practices subject to this Order.
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2.
Additionally, Stipulating Defendant must report any change in:
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21 (a) name, including aliases or fictitious name, or residence address; or (b) title or
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17 role in any business activity, including any business for which Stipulating
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18 Defendant performs services whether as an employee or otherwise and any entity
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25 in which Stipulating Defendant has any ownership interest, and identify the name,
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C.

Stipulating Defendant must submit to the Commission notice of the filing of

any bankruptcy petition, insolvency proceeding, or similar proceeding by or
against Stipulating Defendant within 14 days of its filing.
D.

Any submission to the Commission required by this Order to be sworn

under penalty of perjury must be true and accurate and comply with 28 U.S.C. §
1746, such as by concluding: “I declare under penalty of perjury under the laws
of the United States of America that the foregoing is true and correct. Executed

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8 on: _____” and supplying the date, signatory’s full name, title (if applicable), and
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9 signature.
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13 E.
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Unless otherwise directed by a Commission representative in writing, all

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11 submissions to the Commission pursuant to this Order must be emailed to
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12 [e-mail] or sent by overnight courier (not the U.S. Postal Service) to:
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17 Associate Director for Enforcement, Bureau of Consumer Protection, Federal
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14 Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The
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15 subject line must begin: FTC v. BunZai Media Group, Inc., et al. FTC File No.
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21 X150047.
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X. RECORDKEEPING
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IT IS FURTHER ORDERED that Stipulating Defendant must create certain
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25 records for 15 years after entry of the Order, and retain each such record for 5
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20 years. Specifically, Stipulating Defendant for any business that Stipulating
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Defendant, individually or collectively with any other Defendants, is a majority

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owner or controls directly or indirectly, must create and retain the following

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A.

Accounting records showing the revenues from all goods or services sold;

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B.

Personnel records showing, for each person providing services, whether as

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job title or position; dates of service; and (if applicable) the reason for

records:

an employee or otherwise, that person’s: name; addresses; telephone numbers;

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8 termination;
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Records of all consumer complaints and refund requests, whether received
9 C.
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13 directly or indirectly, such as through a third party, and any response;
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All records necessary to demonstrate full compliance with each provision of
11 D.
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12 this Order, including all submissions to the Commission; and
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17 E.
A copy of each unique advertisement or other marketing material, including
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14 Internet and social media advertising or webpages.
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XI. COMPLIANCE MONITORING
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IT IS FURTHER ORDERED that, for the purpose of monitoring
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17 Stipulating Defendant’s compliance with this Order, including the financial
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18 representations upon which part of the judgment was suspended and any failure to
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25 transfer any assets as required by this Order:
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A.

Within 14 days of receipt of a written request from a representative of the

Commission, Stipulating Defendant must: submit additional compliance reports
or other requested information, which must be sworn under penalty of perjury;
appear for depositions; and produce documents for inspection and copying. The
Commission is also authorized to obtain discovery, without further leave of court,
using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30
(including telephonic depositions), 31, 33, 34, 36, 45, and 69.

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For matters concerning this Order, the Commission is authorized to
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9 communicate directly with Stipulating Defendant. Stipulating Defendant must
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13 permit representatives of the Commission to interview any employee or other
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11 person affiliated with Stipulating Defendant who has agreed to such an interview.
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12 The person interviewed may have counsel present.
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17 C.
The Commission may use all other lawful means, including posing, through
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14 its representatives as consumers, suppliers, or other individuals or entities, to
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15 Stipulating Defendant or any individual or entity affiliated with Stipulating
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21 Defendant, without the necessity of identification or prior notice. Nothing in this
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17 Order limits the Commission’s lawful use of compulsory process, pursuant to
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18 Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.
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25 D.
Upon written request from a representative of the Commission, any
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20 consumer reporting agency must furnish consumer reports concerning Stipulating
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Defendant, pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C.
§1681b(a)(1).
XII.

RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction, modification, and enforcement of this Order.

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th
10 SO ORDERED this 17 day of May, 2016.
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_______________________________
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GEORGE H. WU, U.S. DISTRICT JUDGE
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SO STIPULATED AND AGREED:

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FOR PLAINTIFF
FEDERAL TRADE COMMISSION

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_______________________________________
REID A. TEPFER, Texas Bar #24079444
LUIS H. GALLEGOS, Oklahoma Bar #19098
[phone] (Tepfer)
[phone] (Gallegos)
[phone] (facsimile)
[e-mail]
[e-mail]

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FOR STIPULATING DEFENDANT:

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____________________________________
SAGAR PARIKH
BEVERLY HILLS LAW CORP., PC
433 N. CAMDEN DRIVE, 6TH FLOOR
BEVERLY HILLS, CA 90210
[phone]
[phone] FAX
[e-mail]
COUNSEL FOR PAUL MEDINA

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STIPULATING DEFENDANT:

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____________________________________
PAUL MEDINA, INDIVIDUALLY AND
AS AN OFFICER OR MANAGER OF
MEDIA URGE, INC., PINNACLE
LOGISTICS, INC., AND FOCUS MEDIA
SOLUTIONS, INC.

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Date:______________

Date:______________

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