Federal Trade Commission v. Kutzner et al

Filing 267

ORDER RE DEFENDANT MARSHALLS FAILURE TO COMPLY WITH THE COURTS ORDER 260 by Judge Beverly Reid O'Connell. Defendant Marshall is ORDERED TO SHOW CAUSE as to why he has failed to comply with this Court's Order by not timely returning the & #036;24,500 to the Receiver and not timely providing a completed financial statement. Defendant Marshall's response to this Order is due no later than Friday, June 23, 2017 by 4:00 p.m. As the Court ordered, Defendant Marshall is incurring a $500 daily penalty for every day that passes before he returns the required funds. Thus, as of todays date, Defendant Marshall has incurred a $1,000 penalty and the total amount due to the Receiver is $25,500. (rfi)

LINK:
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No.

SA CV 16-00999-BRO (AFMx)

Title

FEDERAL TRADE COMMISSION V. DAMIAN KUTZNER ET AL.

Date

June 21, 2017

Present: The Honorable

BEVERLY REID O’CONNELL, United States District Judge

Renee A. Fisher

Not Present

N/A

Deputy Clerk

Court Reporter

Tape No.

Attorneys Present for Petitioners:

Attorneys Present for Respondents:

Not Present

Not Present

Proceedings:

(IN CHAMBERS)

ORDER RE DEFENDANT MARSHALL’S FAILURE TO COMPLY WITH THE
COURT’S ORDER [260]
On June 12, 2017, the Court issued an Order granting, in part, Plaintiff the Federal
Trade Commission’s (“Plaintiff”) Application for an Order to Show Cause as to Why
Defendant Charles Marshall Should Not be Held in Contempt. (See Dkt. No. 260
(hereinafter, “Order”).) The Court ordered Defendant Marshall to, within seven calendar
days of the Order (therefore, by the end of the day on June 19, 2017) return $24,500 to
the Receiver and to provide Plaintiff with an updated financial statement, an affidavit
indicating that Defendant Marshall had provided a copy of the stipulated preliminary
injunction to his business associates, and provide Plaintiff with a written statement
regarding this law firm’s activities. (See id.) If Defendant Marshall did not timely return
the $24,500 to the Receiver, the Court ordered that a $500 daily penalty would accrue
until the amount was paid. (See Order at 19.) The Court also ordered Plaintiff to file a
status report within fourteen days of the Order informing the Court whether Defendant
Marshall had returned the funds. (Id.)
On June 20, 2017, Plaintiff filed a status report indicating that as of 9:45 a.m.
Eastern Standard Time on June 20, 2017, Defendant Marshall had not returned the funds
to the Receiver and had not contacted the Receiver to arrange the return of the funds.
(See Dkt. No. 265 at 2.) In addition, Plaintiff indicated that Defendant Marshall had
provided only a “partially completed” financial statement, which failed to include any of
the required supporting documents and included question marks instead of listing
Defendant Marshall’s assets, liabilities, and income (other than $4,500 in income from

CV-90 (06/04)

CIVIL MINUTES – GENERAL

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LINK:
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No.

SA CV 16-00999-BRO (AFMx)

Title

FEDERAL TRADE COMMISSION V. DAMIAN KUTZNER ET AL.

Date

June 21, 2017

Advantis Law Group). (Id.; see also Declaration of Benjamin J. Theisman (Dkt. No.
265-1), Ex. 1.)

Accordingly, Defendant Marshall is ORDERED TO SHOW CAUSE as to why
he has failed to comply with this Court’s Order by not timely returning the $24,500 to the
Receiver and not timely providing a completed financial statement. Defendant
Marshall’s response to this Order is due no later than Friday, June 23, 2017 by 4:00
p.m. As the Court ordered, Defendant Marshall is incurring a $500 daily penalty for
every day that passes before he returns the required funds. Thus, as of today’s date,
Defendant Marshall has incurred a $1,000 penalty and the total amount due to the
Receiver is $25,500.
:

IT IS SO ORDERED.
Initials of Preparer

CV-90 (06/04)

CIVIL MINUTES – GENERAL

rf

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