Federal Trade Commission et al v. LeanSpa, LLC et al

Filing 274

Stipulated ORDER So Ordered 272 Joint Motion for Stipulated Order for Permanent Injunction And Monetary Judgment as to Defendants Leanspa, LLC, Nutraslim, LLC, Nutraslim U.K., LTD, Boris Mizhen, and Relief Defendant Angelina Strano. Signed by Judge Janet C. Hall on 1/7/2014. (Malone, P.)

UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
FEDERAL TRADE COMMISSION
et al.,
Plaintiff,
v.
LEANSPA, LLC, et al.,
Defendants.

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CIVIL ACTION NO
3:11-CV-01715 (JCH)

JANUARY 7, 2014

STIPULATED ORDER FOR PERMANENT INJUNCTION
AND MONETARY JUDGMENT AS TO DEFENDANTS LEANSPA, LLC, NUTRASLIM,
LLC, NUTRASLIM U.K., LTD. (also d/b/a LEANSPA U.K., LTD.) AND BORIS
MIZHEN AND RELIEF DEFENDANT ANGELINA STRANO
Plaintiffs, the Federal Trade Commission (“Commission” or “FTC”) and the State
of Connecticut (“State”), through its Attorney General, filed their Third Amended
Complaint for Permanent Injunction and Other Equitable Relief (the “Third Amended
Complaint”) in this matter on August 28, 2013, pursuant to Section 13(b) of the Federal
Trade Commission Act (“FTC Act”), 15 U.S.C. §53(b), Section 917(c) of the Electronic
Fund Transfer Act (“EFTA”), 15 U.S.C. § 1693o(c), and Section 42-110m of the
Connecticut Unfair Trade Practices Act (“CUTPA”), Conn. Gen. Stat. §42-110b, et seq.
Through counsel, having filed a joint motion, the Plaintiffs and Defendants LeanSpa,
LLC (“LeanSpa”), NutraSlim, LLC (“NutraSlim”), NutraSlim U.K., Ltd. (also d/b/a
LeanSpa U.K., Ltd.) (“NutraSlim U.K.”), and Boris Mizhen (“Mizhen”) (LeanSpa,
NutraSlim, NutraSlim U.K., and Mizhen collectively referred to as the “LeanSpa
Defendants”) and Relief Defendant Angelina Strano (“Strano”) stipulate to the entry of
this Permanent Injunction and Monetary Judgment as to the LeanSpa Defendants and
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as to Relief Defendant Strano (“Order”) to resolve all matters in dispute in this action
between them.
THEREFORE, IT IS ORDERED as follows:
FINDINGS
1.

This Court has jurisdiction over this matter.

2.

The Third Amended Complaint charges that the LeanSpa Defendants

participated in deceptive acts or practices in violation of Sections 5 and 12 of the FTC
Act, 15 U.S.C. §§ 45(a) and 52, Section 907(a) of the EFTA, Section 205.10(b) of
Regulation E, 12 C.F.R. §205.10(b), and CUTPA, Conn. Gen. Stat. §42-110(b), by
deceptively enrolling consumers into continuity plans for purported weight-loss and
colon cleanse products using, inter alia, fake news sites to promote the LeanSpa
Defendants’ products.
3.

The Third Amended Complaint also charges that Relief Defendant Strano

received, directly or indirectly, funds or otherwise benefitted from funds that are
proceeds of the LeanSpa Defendants’ deceptive acts and practices and that she has no
legitimate claim to those funds.
4.

The LeanSpa Defendants and Relief Defendant Strano neither admit nor

deny any of the allegations in the Third Amended Complaint, except as specifically
stated in this Order. Only for purposes of this action, the LeanSpa Defendants and
Relief Defendant Strano admit the facts necessary to establish jurisdiction.

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5.

The LeanSpa Defendants and Relief Defendant Strano waive any claim

that they may have under the Equal Access to Justice Act, 28 U.S.C. §2412, concerning
the prosecution of this action through the date of this Order, and agree to bear their own
costs and attorney fees.
6.

The LeanSpa Defendants and Relief Defendant Strano waive all rights to

appeal or otherwise challenge or contest the validity of this Order.
7.

The LeanSpa Defendants, Relief Defendant Strano, and their officers,

agents, servants, employees, and attorneys, and all other persons in active concert or
participation with any of them, unconditionally and irrevocably release the Temporary
Receiver and his agents, attorneys, accountants, professionals, and other
representatives from all manner of actions, causes of action, suits, debts, dues, sums of
money, accounts, reckonings, bonds, bills, specialties, covenants, contracts,
controversies, agreements, promises, variances, trespasses, damages, judgments,
extents, executions, claims and demands whatsoever, in law or in equity, which the
LeanSpa Defendants, Relief Defendant Strano, and their officers, agents, servants,
employees, and attorneys, and all other persons in active concert or participation with
them, ever had, now have, or which their respective successors and assigns hereafter
can, shall, or may have for, upon or by reason of any matter, cause, or thing whatsoever
of whatever kind, whether known or unknown, liquidated or unliquidated, each as
though fully set forth herein at length, which said parties ever had, now have, or which
may result from the existing, past, or future state of things arising out of, connected with,

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or in any way related to any condition or circumstance with respect to the above
captioned case, the LeanSpa Defendants, Relief Defendant Strano, and their officers,
agents, servants, employees, and attorneys, and all other persons in active concert or
participation with any of them.
8.

The LeanSpa Defendants, Relief Defendant Strano, and their officers,

agents, servants, employees, and attorneys, and all other persons in active concert or
participation with any of them, unconditionally acknowledge, affirm, warrant, and
covenant that the rights, title, and interest of all assets, including any funds, held by the
Temporary Receiver on behalf of the Receivership Defendants are the sole and
exclusive property of and owned by LeanSpa, LLC (under the control of the Temporary
Receiver) free and clear of any ownership interests, security interests, liens, or other
encumbrances, and Mizhen, Relief Defendant Strano, and their affiliated entities shall
indemnify, hold harmless, and keep indemnified the Corporate Defendants and the
Temporary Receiver from any claims to or ownership interests, security interests, liens,
or other encumbrances asserted to those assets, including reasonable attorney fees.
9.

On or before January 15, 2014, Relief Defendant Strano made an election

to satisfy the monetary judgment set forth in Section XI(A) below either by (a) payment
of the sum set forth in Section XI(A) in the manner set forth in Section XI(B), or (b)
transferring the Condo Property in the manner set forth in Section XI(C) below, and
Strano thereupon delivered notice of such election in writing to the Plaintiffs and the
Temporary Receiver.

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DEFINITIONS
For the purpose of this Order, the following definitions apply:
1.

“Acai Berry Product” or “Acai Berry Products” mean any Dietary

Supplement, Food, or Drug, sold alone or in combination with companion products, that
is advertised, marketed, promoted, offered for sale, distributed, or sold with express or
implied representations that the product contains acai berries or the extract thereof.
2.

“Adequate and well-controlled human clinical study” means a human

clinical study that is randomized, double-blind, placebo-controlled, and conducted by
persons qualified by training and experience to conduct such study.
3.

“Affiliate” means any Person, including third-party marketers, who

participates in an Affiliate Program.
4.

“Affiliate Network” means any Person who provides the LeanSpa

Defendants or any entity Defendant Mizhen controls with Affiliates for an Affiliate
Program or whom Defendant Mizhen or any entity he contols contracts with as an
Affiliate to promote any good or service.
5.

“Affiliate Program(s)” means any arrangement under which the

LeanSpa Defendants or any entity Defendant Mizhen controls, pays, offers to pay, or
provides or offers to provide any form of consideration to any third party, either directly
or through an Affiliate Network, to (a) provide Defendant Mizhen or any entity he
controls with, or refer to him or any entity he controls, potential or actual customers; or
(b) otherwise market, advertise, or offer for sale any product or service on behalf of

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Defendant Mizhen or any entity he controls.
6.

“Clearly and Prominently” shall mean: (a) in textual communications

(e.g., printed publications or words displayed on the screen of a computer), the required
disclosures are of a type, size, and location sufficiently noticeable for an ordinary
consumer to read and comprehend them, in print that contrasts with the background on
which they appear; (b) in communications disseminated orally or through audible means
(e.g., radio or streaming audio), the required disclosures are delivered in a volume and
cadence sufficient for an ordinary consumer to hear and comprehend them; (c) in
communications disseminated through video means (e.g., television or streaming
video), the required disclosures are in writing in a form consistent with subparagraph (a)
of this definition and shall appear on the screen for a duration sufficient for an ordinary
consumer to read and comprehend them; (d) in communications made through
interactive media, such as the Internet, online services, and software, the required
disclosures are unavoidable and presented in a form consistent with subparagraph (a)
of this definition, in addition to any audio or video presentation of them; and (e) in all
instances, the required disclosures are presented in an understandable language and
syntax, in the same language as the predominant language that is used in the
communication, and with nothing contrary to, inconsistent with, or in mitigation of the
disclosures used in any communication of them.
7.

“Corporate Defendants” means LeanSpa, LLC, NutraSlim, LLC, and

NutraSlim U.K., Ltd. (also d/b/a LeanSpa U.K., Ltd.) and their successors and assigns.

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8.

“LeanSpa Products” means, collectively, LeanSpa, LeanSpa with HCA,

NutraSlim, SlimFuel, LeanSpa Cleanse, LeanSpa QuickDetox, QuickDetox, and any
other product that the Corporate Defendants advertised, marketed, promoted, offered
for sale, or sold.
9.

“Covered Product” means any dietary supplement, food or drug,

including, but not limited to, the LeanSpa Products.
10.

“Individual Defendant” means Boris Mizhen.

11.

“Defendants” means the Individual Defendant and all of the Corporate

Defendants, individually, collectively, or in any combination.
12.

“Device” means an instrument, apparatus, implement, machine,

contrivance, implant, in vitro reagent, or other similar or related article, including any
component, part, or accessory, which is – (a) recognized in the official National
Formulary, or the United States Pharmacopeia, or any supplement to them; (b) intended
for use in the diagnosis of disease or other conditions, or in the cure, mitigation,
treatment, or prevention of disease, in man or other animals; or (c) intended to affect the
structure or any function of the body of man and other animals; and which does not
achieve any of its principal intended purposes through chemical action within or on the
body of man or other animals and which is not dependent upon being metabolized for
the achievement of any of its principal intended purposes.
13.

“Dietary Supplement” means: (a) any product labeled as a dietary

supplement or otherwise represented as a dietary supplement; or (b) any pill, tablet,

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capsule, powder, softgel, gelcap, liquid, or other similar form containing one or more
ingredients that are a vitamin, mineral, herb, or other botanical, amino acid, probiotic, or
other dietary substance for use by humans to supplement the diet by increasing the
total dietary intake, or a concentrate, metabolite, constituent, extract, or combination of
any ingredient described above that is intended to be ingested, and is not represented
to be used as a conventional Food or as a sole item of a meal or the diet.
14.

“Drug” means: (a) articles recognized in the official United States

Pharmacopoeia, official Homoeopathic Pharmacopoeia of the United States, or official
National Formulary, or any supplement to any of them; (b) articles intended for use in
the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other
animals; (c) articles (other than Food) intended to affect the structure or any function of
the body of man or other animals; and
(d) articles intended for use as a component of any article specified in clause (a), (b), or
(c); but does not include Devices or their components, parts, or accessories.
15.

“Endorsement” means any advertising message (including verbal

statements, demonstrations, or depictions of the name, signature, likeness, or other
identifying personal characteristics of an individual or the name or seal of an
organization) that consumers are likely to believe reflects the opinions, beliefs, findings,
or experience of a party other than the sponsoring advertiser.
16.

“Essentially Equivalent Product” means a product that contains the

identical ingredients, except for inactive ingredients (e.g., binders, colors, fillers,

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excipients), in the same form and dosage, and with the same route of administration
(e.g., orally, sublingually), as the covered product; provided that the Covered Product
may contain additional ingredients if reliable scientific evidence generally accepted by
experts in the field demonstrates that the amount and combination of additional
ingredients is unlikely to impede or inhibit the effectiveness of the ingredients in the
Essentially Equivalent Product.
17.

“Food” means: (a) articles used for food or drink for man or other

animals; (b) chewing gum; and (c) articles used for components of any such article.
18.

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

provide any product, program, or service, a provision under which the consumer’s
silence or failure to make an affirmative action to reject products or services, or to
cancel the agreement, is interpreted by the seller or provider as acceptance of the offer.
19.

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

including a corporation, partnership, sole proprietorship, limited liability company,
association, cooperative, or any other group or combination acting as an entity.
20.

“Personal Property” means the Individual Defendant’s 100% interest in

the following property:
a.

Rolex Submariner Gold Watch;

b.

Panerai Ferrari Stainless Steel Watch;

c.

Panerai Sport Watch;

d.

Panerai Radiomir 1940 Watch purchased at Tiffany & Co. on or

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about December 21, 2011;
e.

The three paintings purchased at Dynasty Fine Arts on or about
October 30, 2011 for $35,000; and

f.

The bronze chess set and bronze statue art piece purchased at
Magnificent Obsessions on or about October 30, 2011 for $20,000.

21.

“Plaintiffs” mean the Federal Trade Commission (“Commission” or

“FTC”) and the State of Connecticut (“State”).
22.

“Preauthorized Electronic Fund Transfer,” as defined by the Electronic

Fund Transfer Act, 15 U.S.C. § 1693a(9), means an electronic fund transfer authorized
in advance to recur at substantially regular intervals.
23.

“Receivership Defendants” means LeanSpa, LLC, NutraSlim, LLC, and

NutraSlim U.K., Ltd., and their subsidiaries, affiliates, divisions, successors, and
assigns, and includes fictitious names under which they do business.
24.

“Relief Defendant” means Angelina Strano.

25.

“Temporary Receiver” means the Temporary Receiver appointed in

Section X of the Stipulated Preliminary Injunction Order [Dkt. No. 36], entered by the
Court on November 22, 2011. The term “Temporary Receiver” also includes any deputy
receivers or agents as named by the Temporary Receiver.

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I.
BAN ON NEGATIVE OPTIONS
IT IS ORDERED that Defendants are permanently restrained and enjoined from
engaging in, or assisting others engaged in, the advertising, marketing, promoting,
offering for sale, or sale of any product, program, or service with a Negative Option
Feature.
II.
PROHIBITED BUSINESS ACTIVITIES
IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
servants, 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 the advertising, marketing, promotion, offering
for sale, or sale of any product, service, or program, are hereby permanently restrained
and enjoined from:
A.

Misrepresenting, or assisting others in misrepresenting, expressly or by

implication, any material fact, including, but not limited to:
1.

That there is no cost for a trial of Defendants’ products or that the

trial is free or risk-free or that Defendants will not charge consumers anything other than
a nominal fee;

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2.

That Defendants will provide full refunds to all consumers who

request them;
3.

That any website or other publication is an objective news report;

4.

That objective news reporters have performed independent tests

demonstrating the effectiveness of any product or service, including, but not limited to,
Acai Berry Products or any other Dietary Supplement, Food, Drug, or Device;
5.

That consumers have endorsed Defendants’ products;

6.

That comments posted on websites express the views of

independent consumers; and
7.

Any other fact material to consumers concerning any product,

service, or program, such as: (a) the total costs to purchase, receive, or use the
product, service, or program; (b) any material restrictions, limitations, or conditions to
purchase, receive, or use the product, service, or program;

(c) any material aspect of

the performance, efficacy, nature, or central characteristics of the product, service, or
program; and (d) any material aspect of the nature or terms of a refund, cancellation,
exchange, or repurchase policy for the product, service, or program.
B.

Failing to disclose, or disclose adequately, material terms, contingencies,

limitations, or conditions of any offer of a product, service, or program, including, but not
limited to, that:

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1.

Consumers who sign up to receive a trial supply of one of

Defendants’ products are charged for the trial supply of the product if they do not
return it to the Defendants within a certain time period;
2.

Consumers who sign up for a trial supply of one of Defendants’

products must obtain a return merchandise authorization number from Defendants
before returning the products to Defendants; and
3.

Consumers who sign up for a trial supply of one of Defendants’

products will incur additional costs in returning the product, including, but not limited to,
paying for cancellation fees or return shipping.
C.

Failing to disclose, clearly and prominently:
1.

Any material connection, when one exists, between any user or

endorser of any product, service, or program and Defendant or any other person
manufacturing, advertising, labeling, promoting, offering for sale, selling or distributing
such product, service, or program; and
2.

If applicable, that the content of any website or other publication

has not been authored by an objective journalist but is in fact an advertisement placed
for compensation.
D.

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

consumer’s credit card, or debiting, causing to be debited, or assisting others in debiting
any consumer’s bank account without the consumer’s express informed consent for
such charge or debit;

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E.

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

consumer’s credit card, or debiting, causing to be debited, or assisting others in debiting
any consumer’s bank account for any post trial offer fee or charge, prior to the
expiration date of the trial offer; and
F.

Commencing any trial period before the date a consumer actually

receives, or the Defendants reasonably expect, a consumer to receive a trial product.
III.
FALSE WEIGHT-LOSS REPRESENTATIONS PROHIBITED
IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
servants, 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 the manufacturing, labeling, advertising,
promotion, offering for sale, sale, or distribution of any Covered Product, or any dietary
supplement, food, drug, or device, are permanently restrained and enjoined from
making, or assisting others in making, expressly or by implication, including through the
use of a product name or endorsement, any representation that such product causes
rapid and substantial weight loss, including losing as much as twenty-five pounds in four
weeks, without reducing caloric intake or increasing physical activity.

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IV.
PROHIBITED REPRESENTATIONS: WEIGHT-LOSS CLAIMS
IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
servants, 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 the manufacturing, labeling, advertising,
promotion, offering for sale, sale, or distribution of any Covered Product, are hereby
permanently restrained and enjoined from making, or assisting others in making,
expressly or by implication, including through the use of a product name, endorsement,
depiction, or illustration, any representation that:
A.

Such product causes weight loss; or

B.

Clinical studies prove that Defendants’ products will cause rapid and

substantial weight loss; unless the representation is non-misleading and, at the time of
making such representation, Defendants possess and rely upon competent and reliable
scientific evidence that substantiates that the representation is true. For purposes of
this Section, competent and reliable scientific evidence shall consist of at least two
adequate and well-controlled human clinical studies of the Covered Product, or of an
Essentially Equivalent Product, conducted by different researchers, independently of
each other, that conform to acceptable designs and protocols and whose results, when
considered in light of the entire body of relevant and reliable scientific evidence, are
sufficient to substantiate that the representation is true. Defendants shall have the

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burden of proving that a product satisfies the definition of Essentially Equivalent
Product.
V.
PROHIBITED REPRESENTATIONS: OTHER HEALTH-RELATED CLAIMS
IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
servants, 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 the manufacturing, labeling, advertising,
promotion, offering for sale, sale, or distribution of any Covered Product, are hereby
permanently restrained and enjoined from making, or assisting others in making,
expressly or by implication, including through the use of a product name, endorsement,
depiction, or illustration, any representation, other than the representations covered
under Section III of this Order, about the health benefits, performance, or efficacy of any
Covered Product, unless the representation is non-misleading, and, at the time of
making such representation, Defendants possess and rely upon competent and reliable
scientific evidence that is sufficient in quality and quantity based on standards generally
accepted in the relevant scientific fields, when considered in light of the entire body of
relevant and reliable scientific evidence, to substantiate that the representation is true.
For purposes of this Section, competent and reliable scientific evidence means tests,
analyses, research, or studies that have been conducted and evaluated in an objective

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manner by qualified persons and are generally accepted in the profession to yield
accurate and reliable results.
VI.
PROHIBITED REPRESENTATIONS REGARDING TESTS OR STUDIES
IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
servants, 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 the manufacturing, labeling, advertising,
promotion, offering for sale, sale, or distribution of any Covered Product, are hereby
permanently restrained and enjoined from misrepresenting, in any manner, expressly or
by implication, including through the use of any product name or endorsement, the
existence, contents, validity, results, conclusions, or interpretations of any test or study,
in connection with any representations covered by Sections IV and V of this Order.
VII.
FDA APPROVED CLAIMS
IT IS FURTHER ORDERED that nothing in this Order shall prohibit Defendants
from making any representation for any product that is specifically permitted in labeling
for such product by regulations promulgated by the Food and Drug Administration
pursuant to the Nutrition Labeling and Education Act of 1990.
VIII.
PROHIBITIONS BASED ON THE ELECTRONIC FUNDS TRANSFER ACT

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IT IS FURTHER ORDERED that Defendants and Defendants’ officers, agents,
servants, employees, and attorneys, and all other persons in active concert or
participation with any of them, who received actual notice of this Order, whether acting
directly or indirectly, in connection with the sale of any good or service are hereby
permanently restrained and enjoined from:
A.

Failing to obtain written authorization for Preauthorized Electronic Fund

Transfers from a consumer’s account before initiating any Preauthorized Electronic
Fund Transfer, as required by Section 907(a) of EFTA, 15 U.S.C. § 1693e(a), and
Section 205.10(b) of Regulation E, 12 C.F.R. § 205.10(b), as more fully set out in
Section 205.10 of the Federal Reserve Board’s Official Staff Commentary to Regulation
E, 12 C.F.R. § 205, Supp. I; and
B.

Failing to provide a copy of a valid written authorization to the consumer

for Preauthorized Electronic Fund Transfers from a consumer’s account, as required by
Section 907(a) of EFTA, 15 U.S.C. § 1693e(a), and Section 205.10(b) of Regulation E,
12 C.F.R. § 205.10(b), as more fully set out in Section 205.10 of the Federal Reserve
Board’s Official Staff Commentary to Regulation E, 12 C.F.R. § 205, Supp. I.
IX.
AFFILIATE NETWORK PROVISIONS
IT IS FURTHER ORDERED that Defendants and Defendants’ officers, agents,
servants, employees, and attorneys, and all other persons in active concert or
participation with any of them, who receive notice of this Order, whether acting directly

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or indirectly, in connection with the advertising, marketing, offering for sale, sale, or
provision of any goods or services through an Affiliate Program, are permanently
restrained and enjoined from failing to:
A.

Require each Affiliate and/or Affiliate Network used in any Affiliate

Program to provide to Defendants and Defendants’ officers, agents, servants,
employees, and attorneys and all other persons in active concert or participation with
any of them, the following identifying information:
1.

In the case of a natural person, the Affiliate’s or Affiliate Network’s

first and last name, physical address, country, telephone number, email address, and
complete bank account information as to where payments are to be made to that
Person;
2.

In the case of a business entity that is a direct Affiliate with any

Defendant, the Affiliate’s name and any and all names under which it does business,
state of incorporation, registered agent, and the first and last name, physical address,
country, telephone number, and email address for at least one natural person who
owns, manages, or controls the Affiliate, and the complete bank account information as
to where payments are to be made to the Affiliate;
3.

In the case of a business entity that is an Affiliate Network, the

Affiliate Network’s name and any and all names under which it does business, state of
incorporation, registered agent, and the first and last name, physical address, country,
telephone number, and email address for at least one natural person who owns,

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manages, or controls the Affiliate Network, and the complete bank account information
as to where payments are to be made to the Affiliate Network; and
4.

If Defendants only have access to certain Affiliates through an

Affiliate Network, then Defendants shall require each Affiliate Network to obtain and
maintain from those Affiliates the identifying information set forth in Subsection A.1 and
A.2 of this Section prior to the Affiliate’s or Affiliate Network’s participation in the
Defendants’ Affiliate Program.
B.

As a condition of doing business with any Affiliate or Affiliate Network or

such Affiliate or Affiliate Network’s acceptance into Defendants’ Affiliate Program: (a)
provide each such Affiliate or Affiliate Network a copy of this Order; (b) obtain from each
such Affiliate or Affiliate Network a signed and dated statement acknowledging receipt
of this Order and expressly agreeing to comply with this Order; and (c) clearly and
conspicuously disclose in writing that engaging in acts or practices prohibited by this
Order will result in immediate termination of any Affiliate or Affiliate Network and
forfeiture of all monies owed to such Affiliate or Affiliate Network; provided, however,
that if Defendants only have access to certain Affiliates through an Affiliate Network,
then Defendants shall require that the Affiliate Network provide the information required
by this Subsection to each of those Affiliates and retain proof of the same prior to any
such Affiliate being used in Defendants’ Affiliate Program; and if Defendants should
acquire any entity that has an existing program of selling through affiliates, the entity
must complete all steps in this Subsection prior to Defendants’ acquisition of the entity.

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C.

Require that each Affiliate or Affiliate Network, prior to the release of any

marketing materials, including, but not limited to, websites, emails, and pop-ups used by
any Affiliate or Affiliate Network to advertise, promote, market, offer for sale, or sell any
goods or services through Defendants’ Affiliate Program, provide Defendants with the
following information: (a) copies of all material created by the Affiliate or Affiliate
Network displayed or contained within the marketing materials, including text, graphic,
video, audio, and photographs; (b) the location of any online marketing materials, as
denoted by a unique URL; (c) the URL of any hyperlink contained in the marketing
materials; and (d) the range of dates that the marketing materials will run; provided,
however, that if Defendants only have access to certain Affiliates through an Affiliate
Network, then Defendants shall require that the Affiliate Network obtain and maintain
the same information set forth above from each of those Affiliates who are part of
Defendants’ Affiliate Program prior to the release of any such marketing materials, and
provide proof to Defendants of having obtained the same.
D.

Prior to the release of any marketing materials submitted to Defendants or

Defendants’ Affiliate Network pursuant to Section IX.C above, review the marketing
material for compliance with this Order. If, after reviewing such marketing materials,
Defendants determine that the materials comply with this Order, then Defendants shall
provide to the Affiliate or Affiliate Network who submitted the material a written
acknowledgment of approval of such material. If, however, Defendants determine that
such material does not comply with this Order, Defendants shall inform the Affiliate or

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Affiliate Network in writing that approval is denied and shall not pay any amounts to the
Affiliate or the Affiliate Network for such marketing, including any payments for leads,
“click-throughs,” or sales resulting therefrom; provided, however, that if Defendants only
have access to certain Affiliates through an Affiliate Network, then they shall require that
the Affiliate Network comply with the procedures set forth in this Subsection as to those
Affiliates.
E.

Promptly and completely investigate any complaints that Defendants

receive through any source to determine whether any Affiliate or Affiliate Network is
engaging in acts or practices prohibited by this Order, either directly or through any
Affiliate that is part of Defendants’ Affiliate Program.
F.

Upon determining that any Affiliate or Affiliate Network has engaged in, or

is engaging in, acts or practices prohibited by this Order, either directly or through any
Affiliate that is part of Defendants’ Affiliate Program:
1.

Immediately halt the processing of any payments or charges

generated by the Affiliate or Affiliate Network;
2.

Fully refund, or cause to be refunded, within five (5) business days,

each consumer charged by Defendants whose sale originated from the Affiliate or
Affiliate Network on or after the date the Affiliate or Affiliate Network engaged in acts or
practices prohibited by this Order; and
3.

Immediately terminate the Affiliate or Affiliate Network; provided,

however, Defendants shall not be in violation of this subsection if Defendants fail to

22

terminate an Affiliate Network in a case where Defendants only have access to an
Affiliate who has engaged in acts or practices prohibited by this Order through an
Affiliate Network and the Affiliate Network immediately terminates the Affiliate violating
this Order.
X.
MONETARY JUDGMENT AS TO LEANSPA DEFENDANTS
IT IS FURTHER ORDERED that:
A.

Judgment in the amount of thirty-two million seven hundred twenty-five

thousand four hundred fifty three dollars ($32,725,453) is entered in favor of Plaintiffs
against the Individual Defendant and Corporate Defendants, jointly and severally, as
equitable monetary relief; provided however, that subject to Sections X.E – X.I below,
this judgment shall be suspended upon the completion of the requirements stated in
Sections X.B – X.D.
B.

In partial satisfaction of the monetary judgment set forth above, the

following transfers of assets shall occur:
1.

Wells Fargo Advisors, LLC (“WFA”) shall liquidate all assets held
on account for Fellsmere Farm, LLC, at WFA, including, but not
limited to, WFA accounts ending in *1212, *1387, *8873, *9639,
and *2535, and then transfer to the Commission the net proceeds
of the liquidated accounts for Fellsmere Farm, LLC, at WFA,

23

including, but not limited to, WFA accounts ending in *1212, *1387,
*8873, *9639, and *2535;
2.

Wells Fargo Bank, N.A. (“Wells Fargo”) shall transfer to the
Commission all assets held in Defendant Mizhen and Relief
Defendant Strano’s joint account ending in *4115;

3.

RBS Citizens, N.A. (“Citizens Bank”) shall transfer to the
Commission all assets held in Defendant Mizhen and Relief
Defendant Strano’s joint account ending in *0637;

4.

Defendant Mizhen shall transfer to the Commission fifteen
thousand dollars ($15,000); and

5.

Defendant Mizhen and/or Relief Defendant Strano shall execute, or
cause to be executed, within three (3) days of written request all
documents necessary to effectuate the liquidation, where
appropriate, and the transfer of the assets identified in Subsection
B (1-4) above to the Commission.

C.

In partial satisfaction of the monetary judgment set forth above, the

following steps with respect to the property located at 3124 Boston Post Road, Guilford,
CT (the “Real Property”) shall occur:
1.

Within twenty-one (21) days from the date of entry of this Order,
3124 Boston Post Road, LLC, via its registered agent, Defendant
Mizhen, and/or Relief Defendant Strano, shall cause to be

24

transferred by warranty deed, free and clear of all liens and
interests, to Defendant LeanSpa under the control of the
Temporary Receiver, in a form satisfactory to the Temporary
Receiver in his sole discretion, all rights, title, and interests in and
to the Real Property, including, but not limited to, all rights, title and
interest to (a) all permits, approvals or variances relating to or
running with the property and (b) all existing leases and payments
relating to the Real Property. In connection with, but prior to, the
transfer of the Real Property, all real estate taxes, sewer, and/or
water use charges and municipal liens accruing thereon, shall have
been paid by or on behalf of 3124 Boston Post Road, LLC, which
shall promptly provide the Temporary Receiver with written paid
receipts to the satisfaction of the Temporary Receiver; provided,
however, that the Temporary Receiver shall reimburse 3124 Boston
Post Road, LLC pro rata for the payment of any portion of said real
estate taxes and/or charges that have accrued after the date of
transfer of the Real Property to the Temporary Receiver and that
have been previously paid by 3124 Boston Post Road, LLC. At the
time of the transfer, 3124 Boston Post Road, LLC, the owner of the
Real Property, shall represent, warrant, covenant, and agree to the
Temporary Receiver in writing as follows:

25

(a)

No labor, services, or materials have been performed or
provided with respect to the Real Property during the ninety
(90) days immediately prior to the date of the transfer to
LeanSpa, LLC, and that any and all work previously
performed on the Real Property has been paid in full;

(b)

The construction of any and all buildings currently on the
Real Property, if any, have been duly approved by all
authorities having jurisdiction thereto, have been completed
in accordance therewith, and have resulted in the issuance
of a Certificate of Occupancy thereon;

(c)

There are no conditions or restrictions affecting the Real

Property;
(d)

Effective immediately, prior to the transfer of the Real
Property to LeanSpa, LLC, (i) there are no owners or interest
holders in or to the Real Property other than 3124 Boston
Post Road, LLC; (ii) there are no contracts or other
agreements in existence affecting the Real Property that will
be binding upon LeanSpa, LLC and the Temporary
Receiver; and (iii) there are no tenants, occupants, or others
with any leasehold or other interest in or rights to possession
of the Real Property;

26

(e)

There are no outstanding and unpaid bills, charges, or other
unsatisfied impositions affecting the Real Property and,
without prejudice to the foregoing, 3124 Boston Post Road,
LLC, Boris Mizhen, and Relief Defendant Strano hereby
covenant and agree to pay any charges affecting the Real
Property and to indemnify and keep indemnified the
Temporary Receiver and LeanSpa, LLC against any liability
therefore, including reasonable attorney fees;

(f)

To the best of 3124 Boston Post Road, LLC, Boris Mizhen,
and Relief Defendant Strano’s knowledge, information and
belief, the Real Property is in compliance with all applicable
environmental laws, zoning requirements and all other
applicable laws, ordinances, rules and regulations, as well
as all orders of all applicable governmental authorities
(collectively, the “laws”), and the terms and conditions of any
and all permits and approvals pertaining to the Real Property
and all construction thereon has been according to, and in
conformity with, all applicable laws;

(g)

3124 Boston Post Road, LLC is a Connecticut limited liability
company, duly organized, validly existing and in good
standing in its State of formation, and has full power and

27

authority to enter into and perform its obligations under this
Order, a warranty deed, bill of sale and all other documents,
instruments, and agreements related or contemplated by this
Order (collectively, the “Real Property Transfer Documents”);
(h)

The entry into and performance by 3124 Boston Post Road,
LLC of this Order, the deed, and all other Real Property
Transfer Documents does not and will not conflict with or
violate any provision of either 3124 Boston Post Road, LLC’s
organizational documents or any law or agreement by which
either 3124 Boston Post Road, LLC or the Real Property is
bound;

(i)

3124 Boston Post Road, LLC, Boris Mizhen, Relief
Defendant Strano, and their respective agents and affiliated
entities have not caused or allowed the generation,
treatment, storage, or disposal of “Hazardous Materials” on
the Real Property except in accordance with applicable law
and has not caused or allowed and has no knowledge of any
release, discharge, spillage, emanation, uncontrolled loss or
seepage of any Hazardous Material at, on, under, about or
within the Real Property. “Hazardous Material” means: any
petroleum product, “hazardous waste” (as defined by

28

Section 22a-115 of the Connecticut General Statutes),
“hazardous substance” (as defined in the Comprehensive
Environmental Response Compensation and Liability Act, as
amended (42 U.S.C. § 9601(14)), hazardous material (as
defined in the Hazardous Materials Transportation Act, as
amended (49 U.S.C. § 1801 et seq.)), hazardous wastes (as
defined in the Resource Conservation and Recovery Act, as
amended (42 U.S.C. § 6901, et seq.)), hazardous chemical
substances and mixtures (as described in the Toxic
Substances Control Act, as amended (15 U.S.C. § 2601, et
seq.)), radioactive material, or any other substance which
may pose a present or potential hazard to human health or
the environment when improperly disposed of, treated,
stored, or managed. The Real Property does not constitute
an “establishment” pursuant to the Connecticut Transfer Act,
as amended, and as of the date hereof, no money has been
expended nor has any contract been entered into by the
Connecticut Department of Environmental Protection or the
Federal Environmental Protection Agency for which a lien
against the Real Property could arise;

29

(j)

3124 Boston Post Road, LLC has secured all necessary
permits, licenses and approvals necessary to the operations
of the Real Property, and is in compliance with all such
permits, licenses, and approvals; and

(k)

There are no proceedings, suits, actions, liens, inquiries, or
investigations at law, in equity, or before or by any
administrative body or arbitrator pending or, to the
knowledge of the LeanSpa Defendants or Relief Defendant
Strano, threatened, in which an unfavorable finding, decision
or ruling could or might adversely affect the Real Property or
the enforceability of any warranty deed or which, in the
opinion of the Temporary Receiver, the LeanSpa
Defendants, or Relief Defendant Strano, might result in any
adverse change in the value of the Real Property.

2.

At all times prior to the transfer of the Real Property set forth
herein, 3124Boston Post Road, LLC, via its registered agent,
Defendant Mizhen, and/or Relief Defendant Strano, shall maintain
in full force and effect, appropriate and sufficient insurance
coverage on the Real Property, and such other insurance coverage
reasonably requested by the Temporary Receiver, including, but

30

not limited to, general liability insurance coverage, which must
provide a minimum of $1 Million per incident.
Upon request of the Temporary Receiver, 3124 Boston Post Road,
LLC, via its registered agent, Defendant Mizhen, and/or Relief
Defendant Strano, shall immediately provide full copies of the
insurance policies or such other proof of insurance coverage in
effect.
3.

3124 Boston Post Road, LLC, via its registered agent, Defendant
Mizhen, and/or Relief Defendant Strano, shall execute, or cause to
be executed, all documents necessary to effectuate the transfer of
good and marketable title to an indefeasible estate in fee simple in
and to the Real Property free and clear of all liens and interests to
Defendant LeanSpa under the control of the Temporary Receiver
and shall pay any State of Connecticut, local, and municipal
conveyance taxes, if any, and provide conveyance forms as
requested by the Temporary Receiver in his sole discretion at such
time as directed by the Temporary Receiver. 3124 Boston Post
Road, LLC shall promptly cooperate with, provide, and execute all
Real Property Transfer Documents and other documentation
requested by the Temporary Receiver or contemplated by this
Order;

31

4.

Within twenty-one (21) days from the date of entry of this Order or
within 21 days from any request, 3124 Boston Post Road, LLC, via
its registered agent, Defendant Mizhen, and/or Relief Defendant
Strano, shall produce all documents requested by the Temporary
Receiver relating to the Real Property;

5.

The Temporary Receiver shall, within ten (10) months from the date
of entry of this Order, make all good faith efforts to sell the Real
Property. The Temporary Receiver shall ensure that the Real
Property is appraised and listed for sale at or above the appraised
fair market value, and the proposed sale price shall be subject to
the approval of Plaintiffs’ counsel, which approval shall not be
unreasonably withheld. If the proposed sale price is less than 67
percent of the appraised value, the proposed sale price shall be
subject to Court approval. The Temporary Receiver shall provide
3124 Boston Post Road, LLC, via its registered agent, Defendant
Mizhen, and/or Relief Defendant Strano, a complete copy of the
sales contract for the Real Property within ninety-six (96) hours of
execution; and

6.

In the event that the Real Property has not been sold within ten (10)
months from the date of entry of this Order, the Temporary
Receiver shall undertake the necessary steps to auction such

32

property, including, but not limited to, retaining an auction company
and directing it to sell all interest in the Real Property at a public
auction to occur within twelve (12) months from the date of entry of
this Order, unless any such dates are extended by further order of
the Court or agreement with the Plaintiffs. Notwithstanding the
foregoing, the Temporary Receiver may commence the necessary
steps to auction the Real Property at a date earlier than ten (10)
months from the date of entry of this Order if he deems it
appropriate in his sole discretion.
7.

Within twenty-one (21) days of the sale or liquidation of the Real
Property, the Temporary Receiver shall transfer the proceeds, after
payment of any reasonable and customary fees incurred in
connection with such sale or liquidation that have been approved in
advance by counsel for Plaintiffs, to the Commission or its
designated agent by wire transfer in accordance with wiring
instructions to be provided by counsel for the FTC.

D.

In partial satisfaction of the monetary judgment set forth above, the

Individual Defendant shall cause ownership and possession of the Personal Property to
be transferred free and clear of all liens and interests to Defendant LeanSpa under the
control of the Temporary Receiver within twenty-one (21) days from the date of entry of
this Order. Within five (5) days of a request from the Temporary Receiver, the

33

Individual Defendant shall cause to be transferred free and clear of all liens and
interests to Defendant LeanSpa under the control of the Temporary Receiver, or such
other transferee as the Temporary Receiver shall designate, in a form satisfactory to the
Temporary Receiver, title to the Personal Property. The Individual Defendant shall
execute, or cause to be executed, all documents necessary as directed by the
Temporary Receiver, in his sole discretion, to effectuate the transfer of ownership, title,
and possession of the Personal Property free and clear of all liens and interests to
Defendant LeanSpa under the control of the Temporary Receiver. Within twenty-one
(21) days from the date of entry of this Order or any request by the Temporary
Receiver, the Individual Defendant shall produce all documents requested by the
Temporary Receiver relating to the Personal Property. The Temporary Receiver shall,
within eight (8) months from the date of entry of this Order, sell or liquidate the Personal
Property, and transfer the proceeds, after payment of any reasonable and customary
fees incurred in connection with such sale or liquidation that have been approved in
advance by counsel for Plaintiffs, to the Commission or its designated agent by wire
transfer in accordance with wiring instructions to be provided by counsel for the FTC
within twenty-one (21) days of such sale or liquidation. The Temporary Receiver may
extend any dates set forth in this paragraph with the consent of the Plaintiffs or further
order of the Court.
E.

The asset transfers described in Subsections B, C, and D above must be

made within twenty-one (21) days of entry of this Order in accordance with instructions

34

provided by a representative of the Commission and the Temporary Receiver. Upon
such asset transfers identified in Subsections B, C, and D above, the remainder of the
judgment against the Individual Defendant and the Corporate Defendants is suspended,
subject to the Subsections below.
F.

Plaintiffs’ agreement to suspend part of the judgment is expressly

premised, in part, on the material representation that 3124 Boston Post Road, LLC is
the sole owner of the Real Property, that title to the Real Property is marketable, and
that the Real Property is not encumbered by any lien, mortgage, deed of trust,
assignment, pledge, security interest, or other interest, other than accrued real estate
taxes that were not yet due for payment at the time of transfer of the Real Property to
the Temporary Receiver. To the extent that the Real Property is not solely owned by
3124 Boston Post Road, LLC, that title to the Real Property is not marketable, or that
the Real Property is encumbered by any lien, mortgage, deed of trust, assignment,
pledge, security interest, or other interest, other than accrued real estate taxes that
were not yet due for payment at the time of transfer of the Real Property to the
Temporary Receiver, the suspension of the judgment will be lifted and the full judgment
will become immediately due as to the LeanSpa Defendants.
G.

Plaintiffs’ agreement to suspend part of the judgment is further premised

upon the truthfulness, accuracy, and completeness of Defendants’ sworn financial
statements and related documents (collectively, “Financial Attestations”) submitted to
Plaintiffs, namely: (1) Defendant LeanSpa, LLC’s corporate financial statement signed

35

by Defendant Mizhen as manager on or about January 17, 2012, including the
attachments; (2) Defendant NutraSlim, LLC’s corporate financial statement, signed by
Defendant Mizhen as manager on or about January 17, 2012; (3) Defendant NutraSlim
U.K., Ltd.’s (also d/b/a LeanSpa U.K., Ltd.) corporate financial statement, signed by
Defendant Mizhen as manager on or about January 17, 2012; (4) Defendant Mizhen’s
individual financial statement signed on or about January 17, 2012, including the
attachments; (5) Defendant Mizhen’s revised individual financial statement, signed
September 6, 2013, including the attachments; (6) Defendant Mizhen’s and Relief
Defendant Strano’s 2008 U.S. Income Tax Return; (7) Defendant Mizhen’s and Relief
Defendant Strano’s 2009 U.S. Income Tax Return; (8) Defendant Mizhen’s and Relief
Defendant Strano’s 2010 U.S. Income Tax Return; (9) Defendant Mizhen’s 2011 U.S.
Income Tax Return; (10) Defendant Mizhen’s Amended 2011 U.S. Income Tax Return;
(11) Defendant Mizhen’s 2012 U.S. Income Tax Return; (12) Defendant Mizhen’s
February 29, 2012 asset deposition and all exhibits thereto; and (13) Relief Defendant
Strano’s individual financial statement, signed on September 16, 2013, including the
attachments, and as amended on November 21, 2013.
H.

The suspension of the remainder of the judgment will be lifted as to any

Defendant if, upon motion by the Commission or the State, the Court finds that
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.

36

I.

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

immediately due as to that Defendant in the amount specified in Subsection A above
(which the parties stipulate only for purposes of this Section represents the consumer
injury alleged in the Third Amended Complaint), less any payment previously made
pursuant to this Section, plus interest computed from the date of entry of this Order.
XI.
MONETARY JUDGMENT AS TO RELIEF DEFENDANT STRANO
IT IS FURTHER ORDERED that:
A.

Judgment in the amount of two hundred ninety-seven thousand dollars

($297,000) is entered in favor of Plaintiffs against the Relief Defendant.
B.

Unless the Relief Defendant timely exercised her election in the manner

set forth in paragraph 9 of the Findings herein to satisfy the monetary judgment set forth
in Section XI(A) above via the transfer set forth in Section XI(C) below, the Relief
Defendant is ordered to pay Plaintiffs two hundred ninety-seven thousand dollars
($297,000) within twenty-one (21) days of the date of entry of this Order in satisfaction
of the monetary judgment set forth in Section XI(A). Payment shall be made to the
Commission by wire transfer in accordance with directions provided by the Commission,
or by certified check or other guaranteed funds payable to and delivered to the
Commission.
C.

If the Relief Defendant has timely exercised her election to transfer the

Condo Property in the manner set forth in paragraph 9 of the Findings herein to satisfy

37

the monetary judgment set forth in Section XI(A) above, the following steps with respect
to the property located at 420 East Main Street, Building 2, Suite 8, Branford, CT 06405
(the “Condo Property”) shall occur:
1.

Within twenty-one (21) days from the date of entry of this Order, JNM
Capital, LLC, via its member manager, Relief Defendant Strano, shall
cause to be transferred by warranty deed, free and clear of all liens and
interests, to Defendant LeanSpa, LLC under the control of the Temporary
Receiver, in a form satisfactory to the Temporary Receiver in his sole
discretion, all rights, title, and interests in and to the Condo Property,
including, but not limited to, all rights, title, and interest to (a) all permits,
approvals, or variances relating to or running with the property, and (b) all
existing leases and payments relating to the Condo Property. In
connection with, but prior to, the transfer of the Condo Property, all real
estate taxes, sewer, and/or water use charges and municipal liens
accruing thereon, shall have been paid by or on behalf of JNM Capital,
LLC, which shall promptly provide the Temporary Receiver with written
paid receipts to the satisfaction of the Temporary Receiver; provided,
however, that the Temporary Receiver shall reimburse JNM Capital, LLC
pro rata for the payment of any portion of said real estate taxes and/or
charges that have accrued after the date of transfer of the Condo
Property to the Temporary Receiver and that have been previously paid

38

by JNM Capital, LLC. At the time of the transfer, JNM Capital, LLC, the
owner of the Condo Property, shall represent, warrant, covenant, and
agree to the Temporary Receiver in writing as follows:
(a)

No labor, services, or materials have been performed or provided
with respect to the Condo Property during the ninety (90) days
immediately prior to the date of the transfer to LeanSpa, LLC and
that any and all work previously performed on the Condo Property
has been paid for in full;

(b)

The construction of any and all buildings currently on the Condo
Property, if any, have been duly approved by all authorities having
jurisdiction thereto, have been completed in accordance therewith,
and have resulted in the issuance of a Certificate of Occupancy
thereon;

(c)

There are no conditions or restrictions affecting the Condo
Property;

(d)

Effective immediately prior to the transfer of the Condo Property to
LeanSpa, LLC, (i) there are no owners or interest holders in or to
the Condo Property other than JNM Capital, LLC; (ii) there are no
contracts or other agreements in existence affecting the Condo
Property that will be binding upon LeanSpa, LLC and the
Temporary Receiver; and (iii) there are no tenants, occupants, or

39

others with any leasehold or other interest in or rights to possession
of the Condo Property;
(e)

There are no outstanding and unpaid bills, charges, or other
unsatisfied impositions affecting the Condo Property and, without
prejudice to the foregoing, JNM Capital, LLC and Relief Defendant
Strano hereby covenant and agree to pay any charges affecting the
Condo Property and to indemnify and keep indemnified the
Temporary Receiver and LeanSpa, LLC against any liability
therefore, including reasonable attorney fees;

(f)

To the best of JNM Capital, LLC and Relief Defendant Strano’s
knowledge, information, and belief, the Condo Property is in
compliance with all applicable environmental laws, zoning
requirements, and all other applicable laws, ordinances, rules, and
regulations, as well as all orders of all applicable governmental
authorities (collectively, the “laws”), and the terms and conditions of
any and all permits and approvals pertaining to the Condo Property
and all construction thereon has been according to and in
conformity with all applicable laws;

(g)

JNM Capital, LLC is a Connecticut limited liability company, duly
organized, validly existing and in good standing in its State of
formation, and has full power and authority to enter into and

40

perform its obligations under this Order, a warranty deed, bill of
sale, and all other documents, instruments, and agreements related
hereto and thereto (collectively, the “Condo Property Transfer
Documents”);
(h)

The entry into and performance by JNM Capital, LLC of this Order,
the deed, and all other Condo Property Transfer Documents does
not and will not conflict with or violate any provision of either JNM
Capital’s organizational documents or any law or agreement by
which either JNM Capital, LLC or the Condo Property is bound;

(i)

JNM Capital, LLC, Relief Defendant Strano, and their respective
agents and affiliated entities have not caused or allowed the
generation, treatment, storage, or disposal of “Hazardous
Materials” on the Condo Property except in accordance with
applicable law and has not caused or allowed or has no knowledge
of any release, discharge, spillage, emanation, uncontrolled loss or
seepage of any Hazardous Material at, on, under, about or within
the Condo Property. “Hazardous Material” means: any petroleum
product, “hazardous waste” (as defined by Section 22a-115 of the
Connecticut General Statutes), “hazardous substance” (as defined
in the Comprehensive Environmental Response Compensation and
Liability Act, as amended (42 U.S.C. §9601(14)), hazardous

41

material (as defined in the Hazardous Materials Transportation Act,
as amended (49 U.S.C. § 1801, et seq.)), hazardous wastes (as
defined in the Resource Conservation and Recovery Act, as
amended (42 U.S.C. § 6901, et seq.)), hazardous chemical
substances and mixtures (as described in the Toxic Substances
Control Act, as amended (15 U.S.C. § 2601, et seq.)), radioactive
material, or any other substance which may pose a present or
potential hazard to human health or the environment when
improperly disposed of, treated, stored, or managed. The Condo
Property does not constitute an “establishment” pursuant to the
Connecticut Transfer Act, as amended, and as of the date hereof,
no money has been expended nor has any contract been entered
into by the Connecticut Department of Environmental Protection or
the Federal Environmental Protection Agency for which a lien
against the Condo Property could arise;
(j)

JNM Capital, LLC has secured all necessary permits, licenses, and
approvals necessary to the operations of the Condo Property, and
is in compliance with all such permits, licenses, and approvals; and

(k)

The are no proceedings, suits, actions, liens, inquiries, or
investigations at law, in equity, or before or by any administrative
body or arbitrator pending, or, to the knowledge of the LeanSpa

42

Defendants or Relief Defendant Strano, threatened, in which an
unfavorable finding, decision, or ruling could or might adversely
affect the Condo Property or the enforceability of any warranty
deed or which, in the opinion of the Temporary Receiver, the
LeanSpa Defendants, or Relief Defendant Strano, might result in
any adverse change in the value of the Condo Property.
2.

JNM Capital, LLC shall deliver to the Temporary Receiver prior to the
transfer of the Condo Property and in conformity with Section 47-270 of
the Connecticut General Statutes as may exist as the date of entry of this
Order (the “Common Interest Ownership Act”), the Declaration of
Condominium (other than any surveys and plans), and the Bylaws of the
condominium association for the units at 420 East Main Street, Branford,
CT (the “Association”). JNM Capital, LLC acknowledges that the
Temporary Receiver is also entitled to a resale certificate from the
Association containing the following, (“Resale Certificate”): (a) a statement
disclosing the effect on a proposed disposition of any right of first refusal
or other restraint on the free alienability of the Condo Property; (b) a
statement setting forth the amount of the monthly common expense
assessment for the Condo Property and any unpaid common expense or
special assessment currently due and payable from JNM Capital, LLC; (c)
a statement of any other fees payable by JNM Capital, LLC; (d) a

43

statement of the Association’s amount of any reserves for capital
expenditures; (e) the current operating budget of the Association; (f) a
statement of any unsatisfied judgments against the Association and the
existence of any pending suits in which the Association is a defendant; (g)
a statement of the insurance coverage provided for the benefit of the unit
owners; (h) a statement of any restrictions in the Declaration of
Condominium affecting the amount that may be received by a unit owner
on sale, condemnation, casualty loss to the unit or the common interest
community or termination of the common interest community; (i) a
statement describing any pending sale or encumbrance of common
elements; and (j) a statement disclosing the effect on the Condo Property
to be conveyed of any restrictions on the owner’s right to use or occupy
the unit or to lease the unit to another person. The above-referenced
Declaration of Condominium, Association Bylaws, and Resale Certificate
are hereinafter, collectively, the “Condominium Documents.” JNM Capital,
LLC agrees to submit a written request to the Association for a Resale
Certificate on or before January 15, 2014 and to obtain and tender to the
Temporary Receiver the Resale Certificate prior to the transfer of the
Condo Property, unless the Temporary Receiver consents in writing to an
extension of such time;

44

3.

JNM Capital, LLC shall deliver to the Temporary Receiver prior to or at the
time of transfer, a certificate or other evidence of the insurance coverage
on the Condo Property as directed by the Temporary Receiver. At all
times prior to the transfer of the Condo Property set forth herein, JNM
Capital, LLC, via its member manager, Relief Defendant Strano, shall
carry, maintain in full force and effect fire and casualty insurance on the
Condo Property and such other insurance coverage reasonably requested
by the Temporary Receiver. It is understood that fire and casualty
insurance on the common elements is governed by the Declaration of
Condominium as referred to herein. Upon request of the Temporary
Receiver, JNM Capital, LLC, via its member manager, Relief Defendant
Strano, shall immediately provide full copies of the insurance policies or
such other proof of insurance coverage in effect;

4.

JNM Capital, LLC shall promptly make a written request to the Association
to furnish to the Temporary Receiver a written statement setting forth the
amount, if any, of unpaid common expense assessments against the
Condo Property and shall promptly furnish such statement to the
Temporary Receiver promptly upon receipt and shall obtain another such
statement that it shall provide to the Temporary Receiver at the time of the
transfer of the Condo Property. Budgeted and non-budgeted common
expense assessments, or any installments thereof, which are due and

45

payable as of the transfer shall be paid by JNM Capital, LLC with
reasonable proof thereof furnished to the Temporary Receiver;
5.

If the sale of the Condo Property is subject to a right of first refusal which
may be exercised by the Association, JNM Capital, LLC agrees to request
and obtain promptly, in writing, a waiver of such right from the Association
and to deliver the waiver, in recordable form, to the Temporary Receiver
prior to January 15, 2014, unless the Temporary Receiver consents in
writing to an extension of such time;

6.

JNM Capital, LLC, via its member manager, Relief Defendant Strano, shall
execute, or cause to be executed, all documents necessary to effectuate
the transfer of good and marketable title to an indefeasible estate in fee
simple in and to the Condo Property, free and clear of all liens and
interests to Defendant LeanSpa, LLC under the control of the Temporary
Receiver and shall pay any State of Connecticut, local, and municipal
conveyance taxes, if any, and provide conveyance tax forms as requested
by the Temporary Receiver in his sole discretion at such time as directed
by the Temporary Receiver. JNM Capital, LLC shall promptly cooperate
with, provide, and execute all Condo Property Transfer Documents and
other documents requested by the Temporary Receiver or contemplated
by this Order;

46

7.

Within twenty-one (21) days from the date of entry of this Order or within
21 days from any request, JNM Capital, LLC, via its member manager,
Relief Defendant Strano, shall produce all documents requested by the
Temporary Receiver relating to the Condo Property, shall provide a written
request from all members of JNM Capital, LLC consenting to the
transactions contemplated by this Order, and shall cooperate as directed
by the Temporary Receiver, including providing any security deposits,
keys, and security codes to the Condo Property;

8.

The Temporary Receiver shall, within ten (10) months from the date of
entry of this Order, make all good faith efforts to sell the Condo Property.
The Temporary Receiver shall ensure that the Condo Property is
appraised and listed for sale at or above the appraised fair market value,
and the proposed sale price shall be subject to the approval of Plaintiffs’
counsel, which approval shall not be unreasonably withheld. If the
proposed sale price is less than 67 percent of the appraised value, the
proposed sale price shall be subject to Court approval. The Temporary
Receiver shall provide JNM Capital, LLC, via its member manager, Relief
Defendant Strano, a complete copy of the sales contract for the Condo
Property within ninety-six (96) hours of execution; and

9.

In the event that the Condo Property has not been sold within ten (10)
months from the date of entry of this Order, the Temporary Receiver shall

47

undertake the necessary steps to auction such property, including, but not
limited to, retaining an auction company and directing it to sell all interest
in the Condo Property at a public auction to occur within twelve (12)
months from the date of entry of this Order, unless any such dates are
extended by further order of the Court or agreement with the Plaintiffs.
Notwithstanding the foregoing, the Temporary Receiver may commence
the necessary steps to auction the Condo Property at a date earlier than
ten (10) months from the date of entry of this Order if he deems it
appropriate in his sole discretion.
10.

Within twenty-one (21) days of the sale or liquidation of the Condo
Property, the Temporary Receiver shall transfer the proceeds, after
payment of any reasonable and customary fees incurred in connection
with such sale or liquidation that have been approved in advance by
counsel for Plaintiffs, to the Commission or its designated agent by wire
transfer in accordance with wiring instructions to be provided by counsel
for the FTC.

11.

Notwithstanding anything herein to the contrary, in the event that (a) the
Relief Defendant has timely exercised her election to transfer the Condo
Property in the manner set forth in paragraph 9 of the Findings herein to
satisfy the monetary judgment set forth in Section XI(A) herein and (b)
despite the Relief Defendant’s and JNM Capital, LLC’s diligent, good faith

48

and best efforts to obtain all the Condominium Documents, right of first
refusal, and/or other documents contemplated by Section XI (C)(2), (4),
and (5) required by the Temporary Receiver by the date set forth in this
Order or as directed by the Temporary Receiver, if the Relief Defendant is
not able to transfer the title or all the necessary documents to the
Temporary Receiver within twenty-one (21) days from the date of entry of
this Order, then Relief Defendant is ordered to pay Plaintiffs two hundred
ninety-seven thousand dollars ($297,000) within twenty-one (21) days of
notice sent by the Temporary Receiver to the Relief Defendant and
Plaintiffs. Payment shall be made to the Commission by wire transfer in
accordance with directions provided by the Commission, or by certified
check or other guaranteed funds payable to and delivered to the
Commission.
12.

In the event of any dispute, it will be up to the Temporary Receiver to
determine whether the Relief Defendant and JNM Capital, LLC have acted
diligently, in good faith and used best efforts to comply with Section XI(C)
herein and such determination shall be final.

13.

In the event the Relief Defendant satisfies the monetary judgment set forth
in Section XI(A) pursuant to Section XI(C)(11) by making a payment of
$297,000 to the Commission, the Temporary Receiver is excused from

49

taking any action with regard to the Condo Property, notwithstanding
anything herein to the contrary.
XII.
ADDITIONAL MONETARY PROVISIONS
IT IS FURTHER ORDERED that:
A.

The LeanSpa Defendants and the Relief Defendant relinquish dominion

and all legal and equitable right, title, and interest in all assets transferred pursuant to
this Order and may not seek the return of any assets. The LeanSpa Defendants and
the Relief Defendant further disclaim any right or claim to any assets transferred to and
maintained in the Temporary Receiver’s accounts for the Receivership Defendants.
B.

The facts alleged in the Third Amended Complaint will be taken as true,

without further proof, in any subsequent civil litigation by or on behalf of the Commission
or State, including in a proceeding to enforce its rights to any payment or monetary
judgment pursuant to this Order, such as a nondischargeability complaint in any
bankruptcy case.
C.

The facts alleged in the Third Amended 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.

The LeanSpa Defendants and the Relief Defendant acknowledge that

their Taxpayer Identification Numbers (Social Security Number or Employer

50

Identification Numbers), which have been previously submitted to Plaintiffs, may be
used for collecting and reporting on any delinquent amount arising out of this Order, in
accordance with 31 U.S.C. § 7701.
E.

All money paid to Plaintiffs pursuant to this Order shall be deposited into a

fund administered by the Commission or its designee to be used for equitable relief,
including consumer redress and any attendant expenses for the administration of any
redress fund.
F.

In the event that direct redress to consumers is wholly or partially

impracticable or funds remain after redress is completed, the Plaintiffs may apply funds
for any other equitable relief (including consumer information remedies) that they
determine to be reasonably related to the Defendants’ practices alleged in the Third
Amended Complaint. Plaintiffs shall retain authority and sole discretion over the
division among Plaintiffs of any funds not used for equitable relief. Any funds paid to
the Commission not used for equitable relief shall be deposited into the U.S. Treasury
as disgorgement. Any funds paid to the State not used for equitable relief may be used
by the State to the full extent authorized by the State’s laws, including, but not limited to,
as payment for the State’s costs of investigating and litigating the instant case.
Defendants and the Relief Defendant have no right to challenge any actions Plaintiffs or
their representatives may take pursuant to this Subsection.
G.

The Asset Freeze contained in the Stipulated Preliminary Injunction Order

as to the LeanSpa Defendants, entered by the Court on November 22, 2011 [Dkt. No.

51

36], is modified to permit the payment in Section X(A – D) above. Upon completion of
that payment, the asset freeze is dissolved.
XIII.
CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendants and Defendants’ officers, agents,
servants, 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 the sale of any good or service, are hereby
permanently restrained and enjoined from directly or indirectly:
A.

Failing to provide sufficient customer information to enable the

Commission or the State to efficiently administer consumer redress. If a representative
of the Commission or the State requests in writing any information related to redress,
Defendants must provide it, in the form prescribed by the Commission or the State,
within 14 days;
B.

Disclosing, using, or benefitting from customer information, including the

name, address, telephone number, email address, social security number, other
identifying information, or any data that enables access to a customer’s account
(including a credit card, bank account, or other financial account), that any Defendant
obtained prior to entry of this Order in connection with the sale of purported weight-loss
and colon cleanse products; and

52

C.

Failing to destroy such customer information in all forms in their

possession, custody, or control either within 30 days after entry of a stipulated final
order against the last remaining defendant in this matter or 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 law,
regulation, or court order.
XIV.
COOPERATION
IT IS FURTHER ORDERED that the LeanSpa Defendants must fully cooperate
with representatives of Plaintiffs in this case and in any investigation related to or
associated with the transactions or occurrences that are the subject of the Third
Amended Complaint. The LeanSpa Defendants must provide truthful and complete
information, evidence, and testimony. The Individual Defendants must appear and the
Corporate Defendants must cause Defendants’ officers, employees, representatives, or
agents to appear for interviews, discovery, hearings, trials, and any other proceedings
that Plaintiffs may reasonably request upon 5 days written notice, or other reasonable
notice, at such places and times as Plaintiffs’ representatives may designate, without
the service of a subpoena.

53

XV.
RECEIVERSHIP
IT IS FURTHER ORDERED that:
A.

The Receivership imposed by this Court shall continue in the manner set

forth in the preliminary injunction order entered in this matter as to the LeanSpa
Defendants. [Dkt. No. 36].
B.

The following real and/or personal property shall be deemed part of

Defendant LeanSpa under the control of the Temporary Receiver as of the date of entry
of this Final Order:
1.
2.
C.

The Real Property; and
The Personal Property.

If the payment required by Section XI(B) above is not made within

fourteen (14) days of the date of entry of this Order, the Condo Property also shall be
deemed an asset of Defendant LeanSpa under the control of the Temporary Receiver
twenty-one (21) days after the date of entry of this Order.
D.

The Temporary Receiver shall take all necessary steps to wind down the

affairs of the Receivership Defendants. Within fourteen (14) days of entry of this Order,
the Temporary Receiver shall transfer seven-hundred fifty thousand dollars
($750,000.00) of the LeanSpa Companies’ assets currently maintained in the
Temporary Receiver’s account to the Commission. Defendant Mizhen shall execute, or
cause to be executed, within three (3) days of written request, all documents necessary

54

to effectuate the transfer of these assets to the Commission.
E.

The Temporary Receiver shall forthwith take all steps necessary to

liquidate the assets of the Receivership Defendants and those assets that are
surrendered pursuant to Section X(C), Section X(D), and Section XI(C), if applicable, of
this Order and, after such liquidation, shall remit the net proceeds to the Commission or
its designated representative as payment toward the monetary judgment entered
against the LeanSpa Defendants and the Relief Defendant within twenty-one (21) days
of each such sale or liquidation.
F.

The Temporary Receiver and his representatives shall continue to be

entitled to compensation for the performance of their duties pursuant to this Order, from
the assets of the Receivership Defendants, at the billing rate previously agreed to by the
Temporary Receiver.
G.

The Temporary Receiver shall file his Final Report within four hundred

(400) days after entry of this Order, unless this time is extended by the Court for good
cause. Upon approval of the Temporary Receiver’s final report and request for
payment, the Receivership shall be terminated and all funds remaining after payment of
the Temporary Receiver’s final approved payment shall be remitted immediately to the
Commission or its designated representative in partial satisfaction of the judgment
pursuant to Section X of this Order. Upon termination of the Receivership, control of the
Receivership Defendants shall revert to the Individual Defendant, or to his successors
and assigns.

55

H.

Any and all uncollected judgments obtained for the benefit of the

Receivership Defendants shall be assigned to the Plaintiffs for further collection efforts.
XVI.
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendants and the Relief Defendant obtain
acknowledgments of receipt of this Order:
A.

Within 7 days of entry of this Order, each Defendant and the Relief

Defendant must submit to Plaintiffs an acknowledgment of receipt of this Order sworn
under penalty of perjury.
B.

For 20 years after entry of this Order, the Individual Defendant for any

business that he, individually or collectively with any other Defendants, is the majority
owner or controls directly or indirectly, and each Corporate Defendant, must deliver a
copy of this Order to: (1) all principals, officers, directors, and LLC managers and
members; (2) all employees, agents, and representatives who participate in conduct
related to the subject matter of the Order; and (3) any business entity resulting from any
change in structure as set forth in the Section titled Compliance Reporting. Delivery
must occur within 7 days of entry of this Order for current personnel. For all others,
delivery must occur before they assume their responsibilities. In any other business,
such as one in which the Individual Defendant is an employee without any ownership or
control, the Individual Defendant must deliver a copy of this Order to all principals and
managers of the business before participating in conduct related to the subject matter of

56

this Order.
C.

From each individual or entity to which Defendant delivered a copy of this

Order, Defendant must obtain, within 30 days, a signed and dated acknowledgment of
receipt of this Order.
XVII.
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendants make timely submissions to the
Plaintiffs:
A.

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

compliance report, sworn under penalty of perjury:
1.

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

email address and telephone number, as designated points of contact, which
representatives of Plaintiffs may use to communicate with Defendant; (b) identify all of
the Defendant’s businesses by all of their names, telephone numbers, and physical,
postal, email, and Internet addresses; (c) describe the activities of each business,
including the goods and services offered, the means of advertising, marketing, and
sales, and the involvement of any other Defendant in this matter (which the Individual
Defendant must describe if he knows or should know due to his own involvement); (d)
describe in detail whether and how that Defendant is in compliance with each Section of
this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to
this Order, unless previously submitted to Plaintiffs.

57

2.

Additionally, the Individual Defendant must: (a) identify all

telephone numbers and all physical, postal, email, and Internet addresses, including all
residences; (b) identify all business activities, including any business for which such
Defendant performs services whether as an employee or otherwise and any entity in
which the Individual Defendant has any ownership interest; and (c) describe in detail the
Individual Defendant’s involvement in each such business, including title, role,
responsibilities, participation, authority, control, and ownership.
B.

For 20 years after entry of this Order, each Defendant must submit a

compliance notice, sworn under penalty of perjury, within 14 days of any change in the
following:
1.

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

point of contact or (b) the structure of any Corporate Defendant or any entity that
Defendant has any ownership interest in or controls directly or indirectly that may affect
compliance obligations arising under this Order, including: creation, merger, sale, or
dissolution of this entity or any subsidiary, parent, or affiliate that engages in any acts or
practices subject to this Order.
2.

Additionally, the Individual Defendant must report any change in:

(a) name, including aliases or fictitious name, or residence address; or (b) title or role in
any business activity, including any business for which such Defendant performs
services whether as an employee or otherwise and any entity in which such Defendant
has any ownership interest, and identify the name, physical address, and an Internet

58

address of the business entity.
C.

Each Defendant must submit to Plaintiffs notice of the filing of any

bankruptcy petition, insolvency proceeding, or similar proceeding by or against such
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 on: _________” and
supplying the date, signatory’s full name, title (if applicable), and signature.
E.

Any submission to the State required by this Order to be sworn under

penalty of perjury must be true and accurate and notarized.
F.

Unless otherwise directed by a Commission representative in writing, all

submissions to the Commission pursuant to this Order must be emailed to
[e-mail] or sent by overnight courier (not the U.S. Postal Service) to: Associate
Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission,
600 Pennsylvania Avenue NW, Washington, D.C. 20580. The subject line must begin:
FTC, et al. v. LeanSpa, LLC, et al. (X120003).
G.

Unless otherwise directed by an Office of Attorney General representative

in writing, all submissions to the State pursuant to this Order must be emailed to
[e-mail] or sent by overnight courier (not the U.S. Postal Service) to:
Attorney General, State of Connecticut, 55 Elm St., Hartford, CT 06106. The subject

59

line must begin: FTC, et al. v. LeanSpa, LLC, et al. (X120003).
XVIII.
RECORDKEEPING
IT IS FURTHER ORDERED that Defendants must create certain records for 20
years after entry of the Order, and retain each such record for 5 years. Specifically, the
Corporate Defendants and the Individual Defendant for any business that such
Defendant, individually or collectively with any other Defendants, is a majority owner or
controls directly or indirectly, must create and retain the following records:
A.

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

B.

personnel records showing, for each person providing services, whether

as an employee or otherwise, that person’s: name; addresses; telephone numbers; job
title or position; dates of service; and (if applicable) the reason for termination;
C.

consumer complaints concerning the subject matter of the Order;

D.

all records necessary to demonstrate full compliance with each provision

of this Order, including all submissions to Plaintiffs; and
E.

a copy of each unique advertisement or other marketing material.
XIX.
COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring the Defendants’
and the Relief Defendant’s compliance with this Order, including the financial
representations upon which part of the judgment was suspended, and any failure to

60

transfer any assets as required by this Order:
A.

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

either the Commission or the State, each Defendant and the Relief 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. Plaintiffs are 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.

Upon written request from a representative of either the Commission or

the State, any credit reporting agency must furnish consumer reports concerning the
Individual Defendant or the Relief Defendant, pursuant to Section 604(1) of the Fair
Credit Reporting Act, 15 U.S.C. §1681b(a)(1).
C.

For matters concerning this Order, Plaintiffs are authorized to

communicate directly with each Defendant and the Relief Defendant. Moreover,
Defendants must permit representatives of the Plaintiffs to interview any employee or
other person affiliated with any Defendant who has agreed to such an interview. The
person interviewed may have counsel present.
D.

Plaintiffs may use all other lawful means, including posing, through their

representatives as consumers, suppliers, or other individuals or entities, to Defendants
or any individual or entity affiliated with Defendants, without the necessity of
identification or prior notice. Nothing in this Order limits the Commission’s lawful use of

61

compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49,
57b-1.
XX.
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.
SO ORDERED.
Dated this 7th day of January, 2014 at New Haven, Connecticut.

/s/ Janet C. Hall
Janet C. Hall
United States District Judge

62

. ·...

SO STIPULATED AND AGREED:

FOR PLAINTIFF FEDERAL T , " E COMMISSION:

Date:

1~/:J.~If]

One Bowling Green, Suite 318
New York, NY 10004
Tel: [phone]
Fax: [phone]
[e-mail]
FOR PLAINTIFF STATE OF CONNECTICUT:

Date: .J./.ZJI/,3

Phillip Rosruio (CT 00999)
Office of Attorney General
110 Shennan Street
Hnrtford, CT 06105
Tel: [phone]
Fax: [phone]
[e-mail]

-63-

FOR DE FEN ANTS LEANSPA, LLC, NLITRASLIM, LLC, AND NUTRASLIM U.K.,

T!Jt.v~ D/81A L E . < .l(., LTD., AND BORIS MIZEN'

L

ft/

I

Date:

Boris Mizhen,

Jndividunlly and us an officer of
LennSpa, LLC, NutrnS!im, LLC, and
NutraSlim U.K., Ltd., also d/b/a
LennSpn U.K., Ltd.

J[rll.-- ;;;, ;2/-fh_/
William !. Rothbard
Law Offices of William I. RoU1bord
!217YnleStrcct,Suitc 104

Santa Monica, CA 90404- I 576
Tel: (31 0) '153-8713

Fax: (310)
biJJ(cilrothbnrd lt1w .com
Attamcy for Slipulaling Dcfcndunts,
.LennSpa, LLC, NutruS!im, LLC,
NutrnSiim U.K., Ltd., also d/b/u
LeunSpa U.K., Ltd, und
Boris lvlizhcn

-64-

/ / - /)

6" -/]

FOR RELIEF DEFENDANT ANGELINA STRANO

Dnte:

Arent Fox
1675 Brondwuy· o1 51 Floor
New York, NY 10019
Tel; [phone]
Fax: [phone]

[e-mail]
Attorney for Stipulating Relief Defendant

-65-

_!!}__'l-_1_./_t_.J___