Consumer Financial Protection Bureau v. Park View Law, Inc. et al

Filing 20

STIPULATED FINAL JUDGMENT AND ORDER by Judge Beverly Reid O'Connell that Defendants, and their officers, agents, servants, employees, and attorneys who have actual notice of this Consent Order, whether acting directly or indirectly, are restrain ed for 5 years.(SEE ATTACHMENT FOR FURTHER DETAILS). Under section 1055(a) of the CFPA, 12 USC 5565(a), by reason of the alleged violations described in the Complaint, a judgment of equitable monetary relief in the form of disgorgement is entered in favor of the Bureau and against Defendants, jointly and severally, in the amount of $500,000. (MD JS-6, Case Terminated). (jp)

JS-6

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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

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Case No. 2:17-cv-4721-BRO-JEM

Consumer Financial Protection Bureau,
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Plaintiff,
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STIPULATED FINAL JUDGMENT
AND ORDER

v.
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Park View Law (f.k.a. Prime Law
Experts, Inc.) and Arthur Barens,
Defendants.

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Plaintiff, the Consumer Financial Protection Bureau (“Bureau”) commenced
this civil action against Defendants Park View Law (f.k.a. Prime Law Experts,
Inc.) and Arthur Barens (collectively, “Defendants”) on June 27, 2017, to obtain
injunctive relief and disgorgement.

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The Complaint alleges violations of §§ 1031(a) and 1036(a)(1) of the

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Consumer Financial Protection Act of 2010 (“CFPA”), 12 U.S.C. §§ 5531(a),

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5536(a)(1), and the Telemarketing Sales Rule (“TSR”), 16 C.F.R. Part 310, which

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implements the Telemarketing and Consumer Fraud and Abuse Prevention Act

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(“Telemarketing Act”), 15 U.S.C. §§ 6101-6108.

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Plaintiff and Defendants request that the Court enter this Stipulated Final
Judgment and Order (“Order”).

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FINDINGS
1)

This Court has jurisdiction over the parties and the subject matter of

this action.
2)

Plaintiff and Defendants agree to entry of this Order to settle and

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resolve all matters in this dispute arising from the conduct alleged in the Complaint

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to the date this Order is entered.

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3)

Defendants neither admit nor deny any allegations in the Complaint,

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except as specifically stated in this Order. For the purposes of this Order,

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Defendants admit the facts necessary to establish the Court’s jurisdiction over them

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and the subject matter of this action.

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4)

Defendants waive service under Rule 4(d) of the Federal Rules of

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Civil Procedure and waive all rights to seek judicial review or otherwise challenge

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or contest the validity of this Order. Defendants also waive any claim they may

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have under the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the

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prosecution of this action to the date of this Order. Each party will bear its own

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costs and expenses, including without limitation attorneys’ fees.

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5)

Entry of this Order is in the public interest.

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DEFINITIONS
6)

The following definitions apply to this Order:

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a)

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a contract with Corporate Defendant for Credit Repair Services

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between March 13, 2013 and June 29, 2015.

“Affected Consumers” includes any consumer who entered into

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b)

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represented to remove derogatory information from, or improve, a

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person’s credit history, credit record, or credit rating.

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c)

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Corporate Defendant, individually and collectively.

“Credit Repair Services” means any good or service that is

“Defendants” means the Individual Defendant and the

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i)

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Prime Law Experts, Inc.), and its successors and assigns.

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ii)

“Corporate Defendant” means Park View Law (f.k.a.

“Individual Defendant” means Arthur Barens.

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d)

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on the docket by this Court.

“Effective Date” means the date on which this Order is entered

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e)

“Enforcement Director” means the Assistant Director of the

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Office of Enforcement for the Consumer Financial Protection Bureau,

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or his/her delegate.

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f)

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behalf of one or more consumers or an enforcement action by another

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governmental agency brought against a Defendant based on

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substantially the same facts as described in this Order or the

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Complaint.

“Related Consumer Action” means a private action by or on

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ORDER
IT IS ORDERED that:
I.
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Conduct Prohibition
Defendants and their officers, agents, servants, employees, and

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attorneys who have actual notice of this Order, whether acting directly or

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indirectly, may not violate §§ 1031 and 1036 of the CFPA, 12 U.S.C. §§ 5531 and

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5536, and the TSR, 16 C.F.R. pt. 310, in the provision of Credit Repair Services.

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8)

Defendants, and their officers, agents, servants, employees, and

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attorneys who have actual notice of this Consent Order, whether acting directly or

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indirectly, are restrained for 5 years from:

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a)

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selling, assisting in the sale of, or administering Credit Repair

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Services; or

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b)

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holding any ownership interest in, providing services to, or working in

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any capacity for any person engaged in or assisting in advertising,

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marketing, promoting, offering for sale, or selling Credit Repair

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Services.

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II.

Receiving any remuneration or other consideration from,

Customer Information

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Advertising, marketing, promoting, providing, offering for sale,

Defendants, and their officers, agents, servants, employees, and

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attorneys who receive actual notice of this Consent Order, whether acting directly

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or indirectly, may not disclose, use, or benefit from customer information,

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

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

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

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account), that Defendant obtained before the Effective Date in connection with the

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offering or sale of credit repair services. However, customer information may be

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disclosed if requested by a government agency or required by law, regulation, or

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court order.

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III.

Judgment for Equitable Monetary Relief

10)

Under § 1055(a) of the CFPA, 12 U.S.C. § 5565(a), by reason of the

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alleged violations described in the Complaint, a judgment of equitable monetary

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relief in the form of disgorgement is entered in favor of the Bureau and against

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Defendants, jointly and severally, in the amount of $500,000.

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11)

Within 14 days of the Effective Date, Defendants are ordered to pay

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$250,000 of the disgorgement amount to the Bureau in the form of a wire transfer

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to the Bureau or to the Bureau’s agent in compliance with the Bureau’s wiring

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instructions. Within 60 days of the Effective Date, Defendants are ordered to pay

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the remaining $250,000 of the disgorgement amount to the Bureau in the form of a

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wire transfer to the Bureau or to the Bureau’s agent in compliance with the

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Bureau’s wiring instructions. The payments shall be deposited in the United States

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Treasury as disgorgement.

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12)

With regard to any equitable monetary relief that Defendants pay

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pursuant to this Section, if Defendants receive, directly or indirectly, any

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reimbursement or indemnification from any source, including but not limited to

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payment made pursuant to any insurance policy, or if Defendants secure a tax

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deduction or tax credit with regard to any federal, state, or local tax, Defendants

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shall: (a) immediately notify the Enforcement Director in writing, and (b) within

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10 days of receiving such funds or monetary benefit, Defendants shall transfer to

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the Bureau or the Bureau’s agent in compliance with the Bureau’s wiring

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instructions, the full amount of such funds or monetary benefit.

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IV.

Additional Monetary Provisions
13)

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In the event of any default on Defendants’ obligation to make

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payment under this Order, interest, computed under 28 U.S.C. § 1961, as amended,

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will accrue on any outstanding amounts not paid from the date of default to the

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date of payment, and will immediately become due and payable.
14)

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Defendants must relinquish all dominion, control, and title to the

funds paid or to be paid under this Order to the fullest extent permitted by law and
no part of the funds may be returned to Defendants.
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Under 31 U.S.C. § 7701, Defendants must furnish to the Bureau their

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taxpayer identifying numbers, which may be used for purposes of collecting and

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reporting on any delinquent amount arising out of this Order.
16)

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Within 30 days of the entry of a final judgment, consent order, or

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settlement in a Related Consumer Action, Defendants must notify the Enforcement

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Director of the final judgment, consent order, or settlement in writing. That

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notification must indicate the amount of redress, if any, that Defendants paid or are

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required to pay to consumers and describe the consumers or classes of consumers

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to whom that redress has been or will be paid.

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V.

Reporting Requirements
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Defendants must notify the Bureau of any development that may

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affect compliance obligations arising under this Order, including but not limited to,

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any change in structure of Corporate Defendant, including a dissolution,

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assignment, sale, merger, or other action that would result in the emergence of a

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successor company; the creation or dissolution of a subsidiary, parent, or affiliate

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that engages in any acts or practices subject to this Order; the filing of any

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bankruptcy or insolvency proceeding by or against Defendants; or a change in

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Defendants’ name or address. Defendants must provide this notice, if practicable,

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at least 30 days before the development, but in any case no later than 14 days after

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the development.

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18)

Within 7 days of the Effective Date, Defendants must:

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a)

Designate at least one telephone number and email, physical,

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and postal address as points of contact, which the Bureau may use to

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communicate with Defendants;

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b)

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owner, or that a Defendant directly or indirectly controls, by all of

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their names, telephone numbers, and physical, postal, email, and

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Internet addresses;

Identify all businesses for which any Defendant is the

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c)

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products and services offered, and the means of advertising,

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marketing, and sales;

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d)

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email, Internet, physical, and postal addresses, including all

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residences; and

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e)

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business that provides Credit Repair Services or which Individual

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Defendant wholly or partially owns, including Defendant’s title, role,

Identify Individual Defendant’s telephone numbers and all

Describe in detail Individual Defendant’s involvement in any

responsibilities, participation, authority, control, and ownership.

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Describe the activities of each such business, including the

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For 5 years from the Effective Date, the Defendants must report any

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change in the information required to be submitted under ¶ 17 at least 30 days

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before the change or as soon as practicable after the learning about the change,

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whichever is sooner.

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20)

Within 90 days of the Effective Date, and again one year after the

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Effective Date, Defendants must submit to the Enforcement Director an accurate

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written compliance progress report, which, at a minimum:

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a)

Describes in detail the manner and form in which Defendants

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have complied with this Order; and

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b)

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§ VI, unless previously submitted to the Bureau.

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VI.

Attaches a copy of each Order Acknowledgment obtained under

Order Distribution and Acknowledgment
21)

For 5 years from the Effective Date, Defendants must deliver a copy

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of this Order to any business entity resulting from any change in structure referred

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to in ¶ 17, and any future board members and executive officers before they

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assume their responsibilities.

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22)

Defendants must secure a signed and dated statement acknowledging

receipt of a copy of this Order, ensuring that any electronic signatures comply with

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the requirements of the E-Sign Act, 15 U.S.C. § 7001 et seq., within 30 days of

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delivery, from all persons receiving a copy of this Order under this Section.

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VII.

Recordkeeping

23)

Defendants must create or, if already created, must retain for at least 5

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years from the Effective Date all documents and records necessary to demonstrate

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full compliance with each provision of this Order, including all submissions to the

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Bureau.

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24)

Defendants must retain the documents related to the compliance

report described in ¶ 23 for at least 5 years.
25)

Defendants must make the documents identified in ¶ 23 available to

the Bureau upon the Bureau’s request.

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VIII.

Notices

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Unless otherwise directed in writing by the Bureau, Defendants must

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provide all submissions, requests, communications, or other documents relating to

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this Order in writing, with the subject line, “In re Prime Credit Consultants, Matter

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No. 2013-0946-02” and send them either:
a)

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By overnight courier (not the U.S. Postal Service), as follows:
Assistant Director for Enforcement
Consumer Financial Protection Bureau
ATTN: Office of Enforcement
1625 Eye St., N.W.
Washington, DC 20006

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b)

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by email to [e-mail]:
Assistant Director for Enforcement
Consumer Financial Protection Bureau
ATTN: Office of Enforcement
1700 G Street, N.W.
Washington, DC 20552

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By first-class mail to the below address and contemporaneously

IX.

Compliance Monitoring
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Within 30 days of receipt of a written request from the Bureau,

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Defendants must submit compliance reports or other requested information, which

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must be made under penalty of perjury; provide sworn testimony; or produce

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documents.

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Defendants must permit Bureau representatives to interview any

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employee or other person affiliated with Defendants who have agreed to such an

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interview regarding the subject matter or compliance of this Order. The person

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interviewed may have counsel present.
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investigative demands under 12 C.F.R. § 1080.6 or other compulsory process.
X.

Retention of Jurisdiction
30)

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Nothing in this Order will limit the Bureau’s lawful use of civil

The Court will retain jurisdiction of this matter for purposes of

construction, modification, and enforcement of this Order.
31)

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Notwithstanding the provisions of ¶ 30, any time limits for

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performance fixed by this Order may be extended by mutual written agreement of

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the parties and without further Court approval. Additionally, details related to

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administration of §§ V through X of this Order may be modified by written

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agreement of the parties and without further Court approval. Any other

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modifications to this Order may be made only upon approval of the Court, upon

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motion by any party.

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XI.

Release
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The Bureau releases and discharges Defendants from all potential

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liability for law violations that the Bureau has or might have asserted based on the

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practices alleged in the Complaint, to the extent such practices occurred before the

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Effective Date and the Bureau knows about them as of the Effective Date. The

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Bureau may use the practices alleged in the Complaint in future enforcement

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actions against Defendants or their affiliates to establish a pattern or practice of

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violations or the continuation of a pattern or practice of violations or to calculate

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the amount of any penalty. This release does not preclude or affect any right of the

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Bureau to determine and ensure compliance with this Order, or to seek penalties

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for any violations of this Order.

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IT IS SO ORDERED.
DATED: July 10, 2017

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By:

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Honorable Beverly R. O’Connell
United States District Court Judge

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Consented and agreed to:
FOR THE CONSUMER FINANCIAL PROTECTION BUREAU:
ANTHONY ALEXIS
Enforcement Director
DEBORAH MORRIS
Deputy Enforcement Director
CRAIG COWIE
Assistant Litigation Deputy
/s/ Sarah Preis
SARAH PREIS
(Email: [e-mail])
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COLIN REARDON
(Email: [e-mail])
BENJAMIN CLARK
(Email: [e-mail])
1700 G Street NW
Washington, DC 20552
Phone: [phone], -9668, -7871
Fax: [phone]

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Attorneys for Plaintiff
Consumer Financial Protection Bureau
FOR DEFENDANTS:

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PAUL HASTINGS LLP
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/s/ Gerald S. Sachs
GERALD S. SACHS
D.C. Bar Number 493507
LAUREN KELLY GREENBACKER
D.C. Bar Number 1029794
875 15th Street NW
Washington DC 20005
Phone: [phone]
[e-mail]
Attorneys for Defendants
Park View Law (f.k.a. Prime Law Experts, Inc.) and Arthur Barens

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