Federal Trade Commission v. Alliance Document Preparation et al

Filing 191

PERMANENT INJUNCTION AND FINAL ORDER AS TO DEFENDANTS SHAWN GABBAIE and SBB HOLDINGS, LLC filed by Judge S. James: A. Monetary equitable relief in the amount of $158,790.00 is entered in favor of the Commission against Stipulating Defendants, j ointly and severally. B. Stipulating Defendants shall pay $109,183.00 to the FTC within seven (7) days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of the Commission. C. Stipulating Defendants waive and release any rights and claims to the $49,607.00 in the funds of SBB Holdings, LLC. (SEE DOCUMENT FOR OTHER SPECIFICS, COMPLIANCE AND DEADLINES ). (lc)

1
2
3

September 5, 2018

4

VC
P

5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
)
)
FEDERAL TRADE COMMISSION,
)
)
)
Plaintiff,
)
)
)
vs.
)
)
)
ALLIANCE DOCUMENT
)
PREPARATION, LLC, et al.,
)
)
)
Defendants, and
)
)
DIRECT CONSULTING SERVICE, )
LLC; and CAPITAL DOC PREP, INC., )
)
)
Relief Defendants. )
)
)
)
)

Civ. No. CV 17-7048 SJO (KSx)
PERMANENT INJUNCTION AND
FINAL ORDER AS TO
DEFENDANTS SHAWN GABBAIE
and SBB HOLDINGS, LLC

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its
Complaint for Permanent Injunction and Other Equitable Relief pursuant to
Section 13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C.
§ 53(b), and the Telemarketing and Consumer Fraud and Abuse Prevention Act
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

1

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

1

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

2

Shawn Gabbaie and SBB Holdings, LLC, (“Stipulating Defendants”) stipulate to

3

entry of the Permanent Injunction and Final Order (“Order”) to resolve all matters

4

in dispute in this action between them.

5

THEREFORE, IT IS ORDERED as follows:
FINDINGS

6
7

1.

This Court has jurisdiction over this matter.

8

2.

The Complaint charges that Stipulating Defendants participated in

9

deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C.

10

§ 45(a) and the Telemarketing Sales Rule, 16 C.F.R. § 310, in connection with the

11

advertising, marketing, promotion, offering for sale, or sale of debt relief services.

12

3.

Stipulating Defendants neither admit nor deny any of the allegations

13

in the Complaint, except as specifically stated in this Order. Only for purposes of

14

this action, Stipulating Defendants admit the facts necessary to establish

15

jurisdiction.

16

4.

Stipulating Defendants waive any claim that they may have under the

17

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

18

action through the date of this Order, and agree to bear their own costs and

19

attorney fees.

20

5.

21

Stipulating Defendants and the Commission waive all rights to appeal

or otherwise challenge or contest the validity of this Order.
DEFINITIONS

22
23

A.

“Assisting others” includes: (1) performing customer service

24

functions, including receiving or responding to consumer complaints; (2)

25

formulating or providing, or arranging for the formulation or provision of, any

26

advertising or marketing material, including any telephone sales script, direct mail

27

solicitation, or the design, text, or use of images of any Internet website, email, or

28

other electronic communication; (3) formulating or providing, or arranging for the
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

2

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

1

formulation or provision of, any marketing support material or service, including

2

web or Internet Protocol addresses or domain name registration for any Internet

3

websites, affiliate marketing services, or media placement services; (4) providing

4

names of, or assisting in the generation of, potential customers; (5) performing

5

marketing, billing, or payment services of any kind; or (6) acting or serving as an

6

owner, officer, director, manager, or principal of any entity.

7
8

B.

“Financial product or service” means any product, service, plan, or

program represented, expressly or by implication, to:
1.

9

provide any consumer, arrange for any consumer to receive, or

10

assist any consumer in receiving, a loan or other extension of credit;

11

2.

12

assist any consumer in receiving, credit, debit, or stored value cards;

13

3.

14

consumer’s credit record, credit history, or credit rating; or

15

4.

16

record, credit history, or credit rating.

17

C.

provide any consumer, arrange for any consumer to receive, or
improve, repair, or arrange to improve or repair, any
provide advice or assistance to improve any consumer’s credit

“Secured or unsecured debt relief product or service” means:

18

1.

With respect to any mortgage, loan, debt, or obligation between

19

a person and one or more secured or unsecured creditors or debt

20

collectors, any product, service, plan, or program represented,

21

expressly or by implication, to:

22

a.

stop, prevent, or postpone any mortgage or deed of

23

foreclosure sale for a person’s dwelling, any other sale of

24

collateral, any repossession of a person’s dwelling or other

25

collateral, or otherwise save a person’s dwelling or other

26

collateral from foreclosure or repossession;

27

b.

28

renegotiate, settle, or in any way alter any terms of the

negotiate, obtain, or arrange a modification, or

Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

3

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

1

mortgage, loan, debt, or obligation, including a reduction in the

2

amount of interest, principal balance, monthly payments, or

3

fees owed by a person to a secured or unsecured creditor or debt

4

collector;

5

c.

6

payments from any secured or unsecured holder or servicer of

7

any mortgage, loan, debt, or obligation;

8

d.

9

of time within which a person may (i) cure his or her default on

obtain any forbearance or modification in the timing of

negotiate, obtain, or arrange any extension of the period

10

the mortgage, loan, debt, or obligation, (ii) reinstate his or her

11

mortgage, loan, debt, or obligation, (iii) redeem a dwelling or

12

other collateral, or (iv) exercise any right to reinstate the

13

mortgage, loan, debt, or obligation or redeem a dwelling or

14

other collateral;

15

e.

16

payment contained in any promissory note or contract secured

17

by any dwelling or other collateral; or

18

f.

19

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

20

other disposition of a mortgage, loan, debt, or obligation other

21

than a sale to a third party that is not the secured or unsecured

22

loan holder.

23

obtain any waiver of an acceleration clause or balloon

negotiate, obtain, or arrange (i) a short sale of a dwelling

The foregoing shall include any manner of claimed assistance, including

24

auditing or examining a person’s application for the mortgage, loan, debt, or

25

obligation.

26

2.

With respect to any loan, debt, or obligation between a person

27

and one or more unsecured creditors or debt collectors, any product,

28

service, plan, or program represented, expressly or by implication, to:
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

4

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

1

a.

2

or

3

b.

4

or more new loans, debts, or obligations.

5

D.

repay one or more unsecured loans, debts, or obligations;
combine unsecured loans, debts, or obligations into one

“Stipulating Defendants” means Shawn Gabbaie and any other

6

names by which he might be known, and SBB Holdings, LLC, and its successors

7

and assigns, individually, collectively, or in any combination.

8
9
10

I.

BAN ON SECURED AND UNSECURED DEBT RELIEF
PRODUCTS AND SERVICES

IT IS ORDERED that Stipulating Defendants are permanently restrained

11

and enjoined from advertising, marketing, promoting, offering for sale, or selling,

12

or assisting others in the advertising, marketing, promoting, offering for sale, or

13

selling, of any secured or unsecured debt relief product or service. Provided, that

14

Section I shall not prohibit Stipulating Defendant Shawn Gabbaie, when licensed

15

to practice law in the appropriate jurisdiction, from directly rendering routine legal

16

services (1) to clients with whom he has an attorney-client relationship in

17

connection with new or existing bankruptcy proceedings or estate planning, or (2)

18

in connection with the closing and execution of real estate transactions. This

19

proviso shall not be construed to limit the licensing or regulatory powers of any

20

federal, state, or local government agency or state bar. Further provided, that if

21

Stipulating Defendant Shawn Gabbaie holds a real estate license in good standing

22

from the appropriate real estate licensing agency, or is employed by a broker that

23

holds a license in good standing from the appropriate real estate agency, Section I

24

shall not prohibit him from doing or negotiating to do one or more of the following

25

acts for another, unless such act is marketed as a way to save a person’s home from

26

foreclosure or repossession: selling or offering to sell, buying or offering to buy,

27

soliciting prospective sellers or purchasers of, soliciting or obtaining listings of, or

28

negotiating the purchase, sale, or exchange of real property in a purchase money
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

5

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

1

transaction. This proviso shall not be construed to limit the licensing or regulatory

2

powers of any federal, state, or local government agency or other entity regulating

3

real estate agents.

4

II.

PROHIBITION AGAINST MISREPRESENTATIONS RELATING

5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

TO FINANCIAL PRODUCTS AND SERVICES
IT IS FURTHER ORDERED that Stipulating Defendants, and their
officers, agents, employees, and attorneys, and all other persons or entities in
active concert or participation with them, who receive actual notice of this Order,
whether acting directly or indirectly, in connection with the advertising, marketing,
promoting, offering for sale, or selling of any financial product or service, are
permanently restrained and enjoined from misrepresenting, or assisting others in
misrepresenting, expressly or by implication:
A.

The terms or rates that are available for any loan or other extension of

credit, including:
1.

closing costs or other fees;

2.

the payment schedule, monthly payment amount(s), any balloon

payment, or other payment terms;
3.

the interest rate(s), annual percentage rate(s), or finance

charge(s), or whether they are fixed or adjustable;
4.

the loan amount, credit amount, draw amount, or outstanding

balance; the loan term, draw period, or maturity; or any other term of
credit;
5.

the amount of cash to be disbursed to the borrower out of the

proceeds, or the amount of cash to be disbursed on behalf of the
borrower to any third parties;

27
28
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

6

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

1

6.

2

interest and principal, or whether the credit has or can result in

3

negative amortization; or

4

7.

5

subsequent refinancing may trigger a prepayment penalty and/or other

6

fees.
B.

7

whether any specified minimum payment amount covers both

that the credit does not have a prepayment penalty or whether

The ability to improve or otherwise affect a consumer’s credit record,

8

credit history, credit rating, or ability to obtain credit, including that a consumer’s

9

credit record, credit history, credit rating, or ability to obtain credit can be

10

improved by permanently removing current, accurate negative information from

11

the consumer’s credit record or history.

12

C.

That a consumer will receive legal representation.

13

D.

Any other fact material to consumers concerning any financial

14

product or service, such as: the total costs; any material restrictions, limitations, or

15

conditions; or any material aspect of its performance, efficacy, nature, or central

16

characteristics.

17

III.

PROHIBITION AGAINST MISREPRESENTATIONS RELATING
TO ANY PRODUCTS OR SERVICES

18
19

IT IS FURTHER ORDERED that Stipulating Defendants, and their

20

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

21

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

22

directly or indirectly, in connection with the advertising, marketing, promoting,

23

offering for sale, or selling of any product, service, plan, or program, are

24

permanently restrained and enjoined from misrepresenting, or assisting others in

25

misrepresenting, expressly or by implication:

26
27

A.

Any material aspect of the nature or terms of any refund, cancellation,

exchange, or repurchase policy, including the likelihood of a consumer obtaining a

28
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

7

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

1

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

2

granted to the consumer;

3

B.

That any person is affiliated with, endorsed, approved by, accredited

4

by, or otherwise connected to any other person; government entity; public, non-

5

profit, or other non-commercial program; or any other program;

6
7
8
9
10
11
12

C.

The nature, expertise, position, or job title of any person who provides

any product, service, plan, or program;
D.

The cost or likelihood of qualifying for or receiving any product,

service, plan, or program;
E.

That any person providing a testimonial has purchased, received, or

used the product, service, plan, or program;
F.

That the experience represented in a testimonial of the product,

13

service, plan, or program represents the person’s actual experience resulting from

14

the use of the product, service, plan, or program under the circumstances depicted

15

in the advertisement; or

16

G.

Any other fact material to consumers concerning any good or service,

17

such as: the total costs; any material restrictions, limitations, or conditions; or any

18

material aspect of its performance, efficacy, nature, or central characteristics.
IV. MONETARY EQUITABLE RELIEF

19
20

IT IS FURTHER ORDERED that:

21

A.

22
23

Monetary equitable relief in the amount of $158,790.00 is entered in

favor of the Commission against Stipulating Defendants, jointly and severally.
B.

Stipulating Defendants shall pay $109,183.00 to the FTC within seven

24

(7) days of entry of this Order by electronic fund transfer in accordance with

25

instructions previously provided by a representative of the Commission.

26
27
28

C.

Stipulating Defendants waive and release any rights and claims to the

$49,607.00 in the funds of SBB Holdings, LLC. Payment of the funds to the FTC,
shall be made by the holder of the funds by electronic fund transfer in accordance
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

8

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

1

with instructions provided to the holder of the funds by a representative of the

2

Commission.
V. OTHER MONETARY PROVISIONS

3
4

IT IS FURTHER ORDERED that:

5

A.

Stipulating Defendants relinquish dominion and all legal and equitable

6

right, title, and interest in all assets transferred pursuant to this Order and may not

7

seek the return of any assets.

8
9

B.

The facts alleged in the Complaint will be taken as true, without

further proof, in any subsequent civil litigation by or on behalf of the Commission,

10

including in a proceeding to enforce its rights to any payment or money equitable

11

relief pursuant to this Order, such as a non-dischargeablity complaint in any

12

bankruptcy case.

13

C.

The facts alleged in the Complaint establish all elements necessary to

14

sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the

15

Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral

16

estoppel effect for such purposes.

17

D.

Stipulating Defendants acknowledge that the Social Security and

18

Taxpayer Identification Numbers, which Stipulating Defendants previously

19

submitted to the Commission, may be used for collecting and reporting on any

20

delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.

21

E.

All money paid to the Commission pursuant to this Order may be

22

deposited into a fund administered by the Commission or its designee to be used

23

for equitable relief, including consumer redress and any attendant expenses for the

24

administration of any redress fund. If a representative of the Commission decides

25

that direct redress to consumers is wholly or partially impracticable or money

26

remains after redress is completed, the Commission may apply any remaining

27

money for such other equitable relief (including consumer information remedies)

28

as it determines to be reasonably related to Stipulating Defendants’ practices
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

9

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

1

alleged in the Complaint. Any money not used for such equitable relief is to be

2

deposited to the U.S. Treasury as disgorgement. Stipulating Defendants have no

3

right to challenge any actions the Commission or its representative may take

4

pursuant to this Subsection.
F.

5

The freeze on personal assets of Stipulating Defendant Shawn

6

Gabbaie shall remain in effect until the payments and other transfers identified in

7

Section IV.B are completed. The freeze on the assets of SBB Holdings, LLC, shall

8

remain in effect until such time as the Receiver receives payment of all Court-

9

approved fees and expenses of the Receiver and the Receiver is discharged. A

10

financial institution shall be entitled to rely upon a letter from a representative of

11

the Commission stating that the freeze on a Stipulating Defendants’ assets has been

12

lifted.
VI. CUSTOMER INFORMATION

13
14

IT IS FURTHER ORDERED that Stipulating Defendants, their officers,

15

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

16

participation with them, who receive actual notice of this Order, are permanently

17

restrained and enjoined from directly or indirectly:

18

A.

Failing to provide sufficient customer information to enable the

19

Commission to efficiently administer consumer redress. Stipulating Defendants

20

represent that they have provided this redress information to the Commission. If a

21

representative of the Commission requests in writing information related to

22

redress, Stipulating Defendants must provide it, in the form prescribed by the

23

Commission, within fourteen (14) days.

24

B.

Disclosing, using, or benefitting from customer information, including

25

the name, address, telephone number, email address, other identifying information,

26

or any data that enables access to a customer’s account, (including a credit card,

27

bank account, or other financial account), that Stipulating Defendants obtained

28

prior to entry of this Order in connection with the sale of debt relief; and
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

10

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

1
2
3

C.

Failing to destroy such customer information in all forms in their

possession, custody, or control within thirty (30) days after entry of this Order.
Provided, however, that customer information need not be disposed of, and

4

may be disclosed, to the extent requested by a government agency or required by

5

law, regulation, or court order.

6
7

VII. COOPERATION WITH FTC
IT IS FURTHER ORDERED that Stipulating Defendants must fully

8

cooperate with representatives of the Commission in this case and in any

9

investigation related to or associated with the transactions or the occurrences that

10

are the subject of the Complaint. Stipulating Defendants must provide truthful and

11

complete information, evidence, and testimony. Stipulating Defendants must

12

appear and must cause officers, employees, representatives, or agents to appear for

13

interviews, discovery, hearings, trials, and any other proceedings that a

14

Commission representative may designate, without the service of a subpoena.

15
16

VIII. COOPERATION WITH RECEIVER
IT IS FURTHER ORDERED that Stipulating Defendants shall not

17

interfere with the Receiver’s performance of his duties and shall cooperate fully

18

with the Receiver to complete his duties, including, but not limited to, cooperation

19

as to the Receiver’s pursuit of any claims against other persons or entities and the

20

Receiver’s pursuit of any funds or assets of a Receivership Defendant. Stipulating

21

Defendants shall execute any documents requested by the Receiver necessary to

22

transfer assets or ownership interests to the Receiver. If it becomes necessary to

23

execute additional documents to transfer or liquidate assets of a Receivership

24

Defendant or any other assets that are surrendered under this order or to wind up

25

the Receivership Defendants, Stipulating Defendants must execute all documents

26

requested by the Receiver within five (5) days of receipt from the Receiver.

27
28
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

11

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

IX. RECEIVERSHIP WRAP UP AND TERMINATION

1

IT IS FURTHER ORDERED that the Receiver shall endeavor to complete

2
3

all duties of the Receiver relative to Stipulating Defendants and file a Final Report

4

and Final Fee Application within 180 days after entry of this Order, but any party

5

or the Receiver may request an extension or shortening of the Receiver’s term for

6

good cause. Upon the ruling of the Court on all pending motions by the Receiver

7

for the approval of fees and expenses of the Receiver and his professionals, the

8

Receiver may withdraw all approved amounts for receivership expenses from the

9

receivership account and transfer the balance to the account of the Commission.
X. ORDER ACKNOWLEDGMENTS

10

IT IS FURTHER ORDERED that Stipulating Defendants obtain

11
12

acknowledgments of receipt of this Order:
A.

13

Each Stipulating Defendant, within seven (7) days of entry of this

14

Order, must submit to the Commission an acknowledgment of receipt of this Order

15

sworn under penalty of perjury.
B.

16

For five (5) years after entry of this Order, Stipulating Defendant

17

Shawn Gabbaie, for any business that he is the majority owner or controls directly

18

or indirectly, and that is engaged in conduct that is related to the subject matter of

19

this Order, and SBB Holdings, LLC, and its successors and assigns, must deliver a

20

copy of this Order to: (1) all principals, officers, directors, and LLC managers and

21

members; (2) all employees, agents, and representatives with managerial

22

responsibilities; and (3) any business entity resulting from any change in structure

23

as set forth in the Section titled Compliance Reporting. Delivery must occur

24

within seven (7) days of entry of this Order for current personnel. For all others,

25

delivery must occur before they assume their responsibilities.

26

C.

27

copy of this Order, that Stipulating Defendant must obtain, within thirty (30) days,

28

a signed and dated acknowledgment of receipt of this Order.

From each individual or entity to which a Stipulating Defendant delivered a

Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

12

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

XI. COMPLIANCE REPORTING

1
2
3
4
5
6

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

One year after entry of this Order, each Stipulating Defendant must

submit a compliance report, sworn under penalty of perjury.
1.

Each Stipulating Defendant must: (a) identify the primary

7

physical, postal, and email address and telephone number, as designated

8

points of contact, which representatives of the Commission may use to

9

communicate with Stipulating Defendant; (b) identify all of that Stipulating

10

Defendant’s businesses by all of their names, telephone numbers, and

11

physical, postal, email, and Internet addresses; (c) describe the activities of

12

each business including the goods and services offered, the means of

13

advertising, marketing, and sales, and the involvement of any other

14

Defendant (which Stipulating Defendant Shawn Gabbaie must describe if he

15

knows or should know due to his own involvement); (d) describe in detail

16

whether and how that Stipulating Defendant is in compliance with each

17

Section of this Order; and (e) provide a copy of each Order

18

Acknowledgment obtained pursuant to this Order, unless previously

19

submitted to the Commission.

20

2.

Additionally, Stipulating Defendant Shawn Gabbaie must: (a)

21

identify all telephone numbers and all physical, postal, email and Internet

22

addresses, including all residences; (b) identify all business activities,

23

including any business for which he performs services whether as an

24

employee or otherwise and any entity in which such Stipulating Defendant

25

has any ownership interest; and (c) describe in detail such Stipulating

26

Defendant’s involvement in each such business, including title, role,

27

responsibilities, participation, authority, control, and any ownership.

28
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

13

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

1

B.

For ten (10) years after entry of this Order, each Stipulating Defendant

2

must submit a compliance notice, sworn under penalty of perjury, within fourteen

3

(14) days of any change in the following:
1.

4

Each Stipulating Defendant must report any change in: (a) any

5

designated point of contact; or (b) the structure of Stipulating Defendant

6

SBB Holdings, LLC, and its successors and assigns, or any entity that

7

Stipulating Defendant Shawn Gabbaie has any ownership interest in or

8

controls directly or indirectly and that is engaged in conduct related to the

9

subject matter of this Order, including: creation, merger, sale, or dissolution

10

of the entity or any subsidiary, parent, or affiliate that engages in any acts or

11

practices subject to this Order.

12

2.

Additionally, Stipulating Defendant Shawn Gabbaie must

13

report any change in: (a) name, including aliases or fictitious name, or

14

residence address; or (b) title or role in any business that is engaged in

15

conduct that is the subject matter of this Order, including any business for

16

which he performs services whether as an employee or otherwise and any

17

entity in which he has any ownership interest, and identify the name,

18

physical address, and any Internet address of the business or entity.

19

C.

Each Stipulating Defendant must submit to the Commission notice of

20

the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding

21

by or against such Stipulating Defendant within fourteen (14) days of its filing.

22

D.

Any submission to the Commission required by this Order to be

23

sworn under penalty of perjury must be true and accurate and comply with 28

24

U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under

25

the laws of the United States of America that the foregoing is true and correct.

26

Executed on: _____” and supplying the date, signatory’s full name, title (if

27

applicable), and signature.

28
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

14

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

1

E.

Unless otherwise directed by a Commission representative in writing,

2

all submissions to the Commission pursuant to this Order must be emailed to

3

[e-mail] or sent by overnight courier (not the U.S. Postal Service) to:

4

Associate Director for Enforcement, Bureau of Consumer Protection, Federal

5

Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The

6

subject line must begin: FTC v. Alliance Document Preparation, LLC, et al.,

7

X170054.

8

XII. RECORDKEEPING

9

IT IS FURTHER ORDERED that, Stipulating Defendants must create

10

certain records for ten (10) years after entry of the Order, and retain each such

11

record for five (5) years. Specifically, Stipulating Defendants SBB Holdings,

12

LLC, and its successors and assigns, and Stipulating Defendant Shawn Gabbaie,

13

for any business that he is a majority owner or controls directly or indirectly, and

14

that is engaged in conduct related to the subject matter of this Order, must create

15

and retain the following records: (a) accounting records showing the revenues from

16

all goods or services sold; (b) personnel records showing, for each person

17

providing services, whether as an employee or otherwise, that person’s: name;

18

addresses; telephone numbers; job title or position; dates of service; and (if

19

applicable) the reason for termination; (c) records of all consumer complaints and

20

refund requests, whether received directly or indirectly, such as through a third

21

party, and any response; (d) all records necessary to demonstrate full compliance

22

with each provision of this Order, including all submissions to the Commission;

23

and (e) a copy of each unique advertisement or other marketing material. Provided

24

that, Subsections (c) and (e) of this provision shall not apply to any business selling

25

or offering to sell, buying or offering to buy, soliciting prospective sellers or

26

purchasers of, soliciting or obtaining listings of, or negotiating the purchase, sale,

27

or exchange of real property in a purchase money transaction.

28
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

15

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

XIII. COMPLIANCE MONITORING

1

IT IS FURTHER ORDERED that, for the purpose of monitoring

2
3
4
5

Stipulating Defendants’ compliance with this Order, including the financial
representations upon which all or part of the monetary equitable relief was
suspended and any failure to transfer any assets as required by this Order:
A.

6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

Within fourteen (14) days of receipt of a written request from a

representative of the Commission, Stipulating Defendants 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.
B.

For matters concerning this Order, the Commission is authorized to

communicate directly with Stipulating Defendants. Stipulating Defendants must
permit representatives of the Commission to interview any employee or other
person affiliated with Stipulating Defendants who has agreed to such an interview.
The person interviewed may have counsel present.
C.

The Commission may use all other lawful means, including posing,

through its representatives as consumers, suppliers, or other individuals or entities,
to Stipulating Defendants or any individual or entity affiliated with Stipulating
Defendants, without the necessity of identification or prior notice. Nothing in this
Order limits the Commission’s lawful use of compulsory process, pursuant to
Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.
XIV. ENTRY OF FINAL ORDER
IT IS FURTHER ORDERED that there is no just reason for delay of entry
of this final order, and that, pursuant to Federal Rule of Civil Procedure 54(b), the

27
28
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

16

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

1

Clerk immediately shall enter this Order as a final order as to Stipulating

2

Defendants.

3
4
5

XV. RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court shall retain jurisdiction of
this matter for all purposes.

6
7

SO ORDERED, this __5th___ day of September, 2018, at 9:24 a.m.

8
9

________________________________
THE HONORABLE S. JAMES OTERO
UNITED STATES DISTRICT JUDGE

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Permanent Injunction as to
Shawn Gabbaie and SBB Holdings, LLC

17

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