Federal Trade Commission v. Resort Solution Trust, Inc. et al

Filing 21

Stipulated Preliminary Injunction with Asset Freeze and Appointment of a Receiver. See Order for details. Signed by Judge Virginia M. Hernandez Covington on 6/11/2013. (KAK)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
__________________________________________
)
FEDERAL TRADE COMMISSION,
)
)
Plaintiff,
)
)
v.
)
) Case No. 8:13-cv-1329-T-33-TBM
RESORT SOLUTION TRUST, INC.
)
a Florida corporation,
)
)
LINCOLN RENWICK II, individually and as )
owner, officer, or manager of Resort
)
Solution Trust, and
)
)
ANTHONY TALAVERA, individually and as )
owner, officer, or manager of Resort
)
Solution Trust,
)
)
Defendants.
)
__________________________________________)
STIPULATED PRELIMINARY INJUNCTION WITH
ASSET FREEZE AND APPOINTMENT OF A RECEIVER
Plaintiff, Federal Trade Commission (“FTC”), filed its Complaint for Permanent
Injunction and Other Equitable Relief in this matter, pursuant to Sections 13(b) and 19 of the
Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b) and 57b, and the
Telemarketing and Consumer Fraud and Abuse Prevention Act (“Telemarketing Act”), 15
U.S.C. §§ 6101-6108, and moved for a preliminary injunction and other relief pursuant to
Rule 65 of the Federal Rules of Civil Procedure.
The Commission and all Defendants have consented to entry of this Stipulated

1

Preliminary Injunction with Asset Freeze and Appointment of a Receiver (“Stipulated PI
Order”).
NOW, THEREFORE, the Commission and Defendants, having requested the Court
to enter this Stipulated PI Order, and the Court having considered the Stipulated PI Order and
for other cause appearing, it is ORDERED, ADJUDGED, AND DECREED as follows:
1.

This Court has jurisdiction over the subject matter of this case and has

jurisdiction over the parties.
2.

Venue, process, and service of process are proper.

3.

There is good cause to believe that Resort Solution Trust, Inc., Lincoln

Renwick II, and Anthony Talavera (collectively “Defendants”) have engaged in, and are
likely to engage in the future in, acts and practices that violate Section 5(a) of the FTC Act,
15 U.S.C. § 45(a), and the FTC’s Trade Regulation Rule entitled “Telemarketing Sales Rule”
(“TSR”), 16 C.F.R. Part 310, and that the Plaintiff is therefore likely to prevail on the merits
of this action.
4.

There is good cause to believe that consumers will suffer continuing harm

unless Defendants are enjoined by an Order of this Court. The FTC’s memorandum in
support of its motion for preliminary relief and the accompanying declarations and exhibits
demonstrate that it is likely that Defendants have engaged in illegal activity in connection
with the sale of timeshare resale services.
5.

There is good cause to believe that immediate and irreparable damage

to the Court’s ability to grant effective final relief for consumers in the form of monetary
restitution will occur from the sale, transfer, or other disposition or concealment by
2

Defendants of their assets or corporate records unless Defendants are enjoined by order of
this Court. Thus, there is good cause for an asset freeze and the appointment of a receiver
over the corporate Defendant, Resort Solution Trust, Inc.
6.

Defendants neither admit not deny any of the allegations in the Complaint,

except as specifically stated in this Order. Only for the purposes of this action, Defendants
admit the facts necessary to establish jurisdiction.
7.

Weighing the equities and considering Plaintiff’s likelihood of ultimate

success, a Preliminary Injunction is in the public interest.
8.

No security is required of any agency of the United States for issuance of a

Preliminary Injunction order. Fed. R. Civ. P. 65(c).
DEFINITIONS
For purposes of this Stipulated PI Order, the following definitions shall apply:
1.

“Asset” or “assets” means any legal or equitable interest in, right to, or claim

to any real or personal property, including, but not limited to, “goods,” “instruments,”
“equipment,” “fixtures,” “general intangibles,” “inventory,” “checks,” or “notes,” (as these
terms are defined in the Uniform Commercial Code), lines of credit, chattels, leaseholds,
contracts, mail or other deliveries, shares of stock, lists of consumer names, accounts, credits,
premises, receivables, funds, and all cash, wherever located.
2.

“Assisting others” includes, but is not limited to, providing any of the

following services to any person or entity: (1) performing customer service functions,
including, but not limited to, receiving or responding to consumer complaints; (2)
formulating or providing, or arranging for the formulation or provision of, any sales script,
3

other marketing material, or marketing services of any kind; (3) providing names of, or
assisting in the generation of, potential customers; (4) providing credit card merchant
processing accounts, or otherwise providing access to a billing and collection system (such
as a credit card, checking, savings, share or similar account, utility bill, telephone bill,
mortgage loan account or debit card), or causing any charges to be made to such an account
or utilizing such a system; or (5) acting as an officer or director of a business entity.
3.

“Billing information” means any data that enables any person to

access a customer’s or donor’s account, such as a credit card, checking, savings, share or
similar account, utility bill, mortgage loan account, or debit card.
4.

“Individual Defendants” means Lincoln Renwick II and Anthony Talavera

and by whatever other names they may be known.
5.

“Corporate Defendant” or “Receivership Defendant” means Resort

Solution Trust, Inc., and its successors and assigns, as well as any subsidiaries, and any
fictitious business entities or business names created or used by this entity.
6.

“Defendants” means the Individual Defendants and the Corporate Defendant,

individually, collectively, or in any combination.
7.

“Document” or “documents” means any materials listed in Fed. R. Civ. P.

34(a), and includes writings, drawings, graphs, charts, photographs, audio and video
recordings, computer records, and other data or data compilations, stored in any medium,
from which information can be obtained either directly or, if necessary, after translation into
a reasonably usable form through detection devices. A draft or non-identical copy is a
separate “document” within the meaning of this term.
4

8.

“Financial institution” means any bank, savings and loan institution,

credit union, or any financial depository of any kind, including, but not limited to, any
brokerage house, trustee, broker-dealer, escrow agent, title company, commodity trading
company, or precious metal dealer.
9.

“Material” means likely to affect a person’s choice of, or conduct regarding,

goods or services.
10.

“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.
11.

“Plaintiff” mean the Federal Trade Commission (“Commission” or “FTC”).

12.

“Telemarketing” means any plan, program, or campaign (whether or not

covered by the TSR, 16 C.F.R. Part 310) that is conducted to induce the purchase of goods or
services or a charitable contribution by use of one or more telephones.
I. PROHIBITED BUSINESS ACTIVITIES
IT IS THEREFORE ORDERED that Defendants, and their officers, agents,
servants, employees, attorneys, and all other Persons who are in active concert or
participation with any of them, who receive actual notice of this Stipulated PI Order by
personal service or otherwise, whether acting directly or indirectly, in connection with the
telemarketing, advertising, marketing, promoting, offering for sale, or sale of any timeshare
resale or rental services, are hereby restrained and enjoined from:
A.

Misrepresenting, or assisting others in misrepresenting, directly or indirectly,

expressly or by implication, that Defendants have a buyer or renter for a consumer’s
5

timeshare property who will pay a specified price or that Defendants will quickly sell or rent
a consumer’s timeshare; and
B.

Violating, or assisting others in violating, any provision of the TSR,

including, but not limited to:
1.

Section 310.3(a)(4) of the TSR, 16 C.F.R. §310.3(a)(4), by making

any false or misleading statement to induce any person to pay for goods or services;
2.

Section 310.4(b)(1)(iii)(B) of the TSR, 16 C.F.R. §310.4(b)(1)(iii)(B),

by engaging in, or causing others to engage in, initiating an outbound telephone call
to a Person’s telephone number on the National Do Not Call Registry in connection
with Telemarketing; and
3.

Section 310.8 of the TSR, 16 C.F.R.§310.8, by initiating or causing

others to initiate, in connection with Telemarketing, an outbound call to a telephone
number in a given area code when Defendants have not, either directly or through
another Person, paid the required annual fee for access to the telephone numbers
within that area code that are included in the National Do Not Call Registry.
II. ASSET FREEZE
IT IS FURTHER ORDERED that Defendants, and their officers, agents, servants,
employees, attorneys, and all other Persons who are in active concert or participation with
them, who receive actual notice of this Stipulated PI Order by personal service or otherwise,
whether acting directly or indirectly, are hereby restrained and enjoined from:
A.

Transferring, liquidating, converting, encumbering, pledging, loaning,

selling, concealing, dissipating, disbursing, assigning, spending, withdrawing, granting a lien
6

or security interest or other interest in, or otherwise disposing of any funds, real or personal
property, automobiles, accounts, contracts, consumer lists, coins, precious metals, artwork,
shares of stock, uncashed checks, or other Assets, or any interest therein, wherever located,
including any Assets outside the territorial United States, that are:
1.

owned, controlled or held by, in whole or in part, for the benefit of, or

subject to access by, or belonging to, any Defendant;
2.

in the actual or constructive possession of any Defendant,

including, but not limited to any Assets held for or by any Defendant in any account
at any bank or savings and loan institution, or any credit card processing agent or
agent providing electronic fund transfer services or automated clearing house
processing, network transaction processor, bank debit processing agent, customer
service agent, commercial mail receiving agency, or mail holding or forwarding
company, or any credit union, retirement fund custodian, money market or mutual
fund, storage company, trustee, or with any broker-dealer, escrow agent, title
company, commodity trading company, precious metal dealer, or other financial
institution or depository of any kind, either within or outside the territorial United
States;
3.

held by an agent of any Defendant as a retainer for the agent’s

provision of services to any Defendant; or
4.

owned, controlled by, or in the actual or constructive possession

of, or otherwise held for the benefit of, any corporation, partnership or other entity
directly or indirectly owned, managed or controlled by any Defendant.
7

B.

Opening or causing to be opened any safe deposit boxes, commercial mail

boxes, or storage facilities titled in the name of, or for the use or benefit of, any Defendant,
or subject to access by any Defendant, or under the control of any Defendant;
C.

Incurring charges or cash advances on any credit card, debit card, or lines of

credit issued in the name, individually or jointly, of any Defendant;
D.

Obtaining a personal or secured loan obligating any Defendant;

E.

Cashing any checks or depositing any payments from customers or

clients of Defendants received in payment for Corporate Defendant’s services; or
F.

Incurring liens or other encumbrances on real property, personal property, or

other Asset titled in the name, individually or jointly, of any Defendant or of any
corporation, partnership, or other entity directly or indirectly owned, managed, or controlled
by any Defendant.
The Assets affected by this Section shall include both existing Assets and Assets
acquired after the effective date of this Stipulated PI Order.
Provided, however, that:
(a) the asset freeze does not apply to future earnings of the two Individual
Defendants that are unrelated to timeshare advertising and resales;
(b) the asset freeze may be lifted as to Bank of America accounts ending with
5082 (for Lincoln Renwick dba Mad Linx Tactics and Methods) in the
amount of $3,796.16, ending with 1404 (for Lincoln Renwick II Tactics) in
the amount of $1,573.58, and ending with 7511 (for Anthony Talavera) in the
amount of $0.00;
8

(c) Defendant Renwick may utilize his Bank of America credit card ending
with 1456, only to the extent that the balance never exceeds by more than
$2000 the balance as of May 23, 2013;
(d) Defendant Renwick may use his PayPal account only for personal
purposes and disc jockey services; and
(e) a countercheck, made out on May 23, 2013 and drawn on the account of
Resort Solution Trust, in the amount of $2500, may be cashed for attorneys’
fees by Andrew N. Cove.
III. DUTIES OF THIRD PARTY ASSET HOLDERS
IT IS FURTHER ORDERED that each financial institution, business entity, or
person maintaining or having custody or control of any account or other Asset of any
Defendant, or that at any time since January 1, 2008, has maintained or had custody of any
such Asset, or any corporation, partnership, or other entity directly or indirectly owned,
managed, or controlled by, or under common control with any Defendant, which is provided
with a copy of this Stipulated PI Order, or otherwise has actual or constructive knowledge of
this Stipulated PI Order, shall:
A.

Hold and retain within its control and prohibit the withdrawal, removal,

assignment, transfer, pledge, hypothecation, encumbrance, disbursement, dissipation,
conversion, sale, liquidation, or other disposal of any of the Assets, funds, Documents, or
other property held by or under its control, on behalf of any Defendant, or for the benefit or
use of any Defendant, in whole or in part, except:
1.

As directed by further order of the Court;
9

2.

As directed in writing by the Temporary Receiver (regarding an asset
belonging to, for the use or benefit of, under the control of, or subject
to access by the Receivership Defendant); or

3.
B.

By written stipulation of the Plaintiff and Defendants.

Deny Defendants access to any safe deposit boxes, commercial mail boxes or

storage facilities that are titled in the name, individually or jointly, of any Defendant, or
otherwise subject to access by any Defendant;
C.

Provide to counsel for the Plaintiff, within five (5) business days of notice of

this Stipulated PI Order, a sworn statement setting forth:
1.

The identification of each account or Asset titled in the name,

individually or jointly, of any Defendant, or to which any Defendant is a signatory, or
which is held on behalf of, or for the benefit or use of, any Defendant, or subject to
any Defendant’s control, including all trust accounts on behalf of any Defendant or
subject to any Defendant’s control;
2.

The balance of each such account, or a description and appraisal

of the value of each such Asset, as of the close of business on the day on which notice
of this Stipulated PI Order is received, and, if the account or Asset has been closed or
removed, or more than $1000 withdrawn or transferred from it within the last ninety
(90) days, the date of the closure or removal of funds, the total funds removed or
transferred, and the name and account number of the Person or entity to whom such
account, funds, or other Asset was remitted; and
3.

The identification and location of any safe deposit box, commercial
10

mail box, or storage facility that is either titled in the name, individually or jointly, of
any Defendant, or is otherwise subject to access or control by any Defendant. If the
safe deposit box, commercial mail box, or storage facility has been closed within the
last ninety (90) days, the date closed and the balance on said date;
D.

Within five (5) days of a request by Plaintiff, provide Plaintiff with copies of

any records or other Documents pertaining to each such account or Asset, including, but not
limited to, originals or copies of account applications, corporate resolutions, account
statements, signature cards, checks, drafts, deposit tickets, transfers to and from the accounts,
all other debit and credit instruments or slips, currency transaction reports, 1099 forms, and
safe deposit box logs;
E.

Plaintiff may properly serve this Stipulated PI Order on any financial or

brokerage institution, business entity or person that holds, controls or maintains custody of
any account or Asset of any Defendant or has held, controlled or maintained custody of any
account or Asset of any Defendant at any time since January 1, 2008, by facsimile
transmission, hand delivery, or overnight carrier.
The Assets affected by this Section shall include both existing Assets and Assets
acquired after the effective date of this Stipulated PI Order.
IV. FINANCIAL STATEMENTS AND INFORMATION
IT IS FURTHER ORDERED that, to the extent not previously completed and
provided, each Defendant shall serve upon counsel for Plaintiff, within ten (10) days of
service of this Stipulated PI Order:
A.

A completed financial statement, accurate as of the date of entry of this
11

Stipulated PI Order, for each Individual Defendant in the form of the “Financial Statement of
Individual Defendant,” and for the Corporate Defendant, in the form of the “Financial
Statement of Corporate Defendant.” The financial statements shall be accurate as of the date
of entry of this Stipulated PI Order and verified under oath. Defendants shall attach to these
completed financial statements copies of all local, state, provincial, and federal income and
property tax returns, along with other attachments and schedules as called for by the
instructions to the financial statements; and
B.

The name, address and telephone number of each accountant, financial

planner, investment advisor, stock broker or other individual, corporation, or partnership
whom they have used for financial, business or tax advice or services, since January 1, 2008.
V. PROHIBITION ON DISCLOSING CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendants, and their officers, agents,
servants, employees, attorneys, and all other Persons who are in active concert or
participation with them, who receive actual notice of this Stipulated PI Order by personal
service or otherwise, whether acting directly or indirectly, are hereby restrained and enjoined
from:
A.

Selling, renting, leasing, transferring, or otherwise disclosing the

name, address, birth date, telephone number, email address, Social Security number, credit
card number, bank account number, or other financial or identifying personal information of
any person from whom or about whom any Defendant obtained such information in
connection with the sale or offering for sale of timeshare resale or rental services;
B.

Benefitting from or using the name, address, birth date, telephone
12

number, email address, Social Security number, credit card number, bank account number, or
other financial or identifying personal information of any person from whom or about whom
any Defendant obtained such information in connection with activities alleged in the
Complaint.
Provided however, that Defendants may disclose such financial or identifying
personal information to a law enforcement agency or as required by any law, regulation, or
court order.
VI. MAINTAIN RECORDS AND REPORT NEW BUSINESS ACTIVITY
IT IS FURTHER ORDERED that Defendants, and their officers, agents,
servants, employees, attorneys, and all other Persons who are in active concert or
participation with them, who receive actual notice of this Stipulated PI Order by personal
service or otherwise, whether acting directly or indirectly, are hereby restrained and enjoined
from:
A.

Failing to create and maintain books, records, accounts, bank statements,

accountants’ reports, general ledgers, general journals, cash receipt ledgers, cash
disbursement ledgers and source documents, documents indicating title to real or personal
property, and any other data which, in reasonable detail, accurately, fairly, and completely
reflect the incomes, disbursements, transactions, dispositions, and uses of the Defendants’
Assets;
B.

Destroying, erasing, mutilating, concealing, altering, transferring, or

otherwise disposing of, in any manner, directly or indirectly, any Documents, including
electronically stored information, that relate in any way to the business practices or business
13

or personal finances of Defendants; to the business practices or finances of entities directly
or indirectly under the control of Defendants; or to the business practices or finances of
entities directly or indirectly under common control with any other Defendant; and
C.

Creating, operating, or exercising any control over any business

entity, whether newly formed or previously inactive, including any partnership, limited
partnership, joint venture, sole proprietorship, or corporation, without first providing
Plaintiffs with a written statement disclosing: (1) the name of the business entity; (2) the
address and telephone number of the business entity; (3) the names of the business entity’s
officers, directors, principals, managers, and employees; and (4) a detailed description of the
business entity’s intended activities.
VII. APPOINTMENT OF RECEIVER
IT IS FURTHER ORDERED that Burton Wiand is appointed as Receiver
(“Receiver”) for Defendant Resort Solution Trust, Inc., and any of its affiliates, subsidiaries,
divisions, or sales operations, wherever located (“Receivership Defendant”), with the full
power of an equity receiver. The Receiver is directed and authorized to accomplish the
following:
A.

Assume full control of the Receivership Defendant by removing, as

the Receiver deems necessary or advisable, any director, officer, independent contractor,
employee, or agent of the Receivership Defendant, including the Individual Defendants, from
control of, management of, or participation in, the affairs of the Receivership Defendant.
The Receiver shall, however, not interfere with or be privy to the defense of this action;
B.

Take custody, control, and possession of all Assets and Documents of,
14

or in the possession, custody or under the control of, the Receivership Defendant wherever
situated and including, but not limited to, the business premises of the Receivership
Defendant. The Receiver shall have full power to divert mail and to sue for, collect, receive,
take possession, hold and manage all Assets and Documents of the Receivership Defendant
and other persons or entities whose interests are now held by or under the direction,
possession, custody, or control of the Receivership Defendant. Provided, however, that the
Receiver shall not attempt to collect any amount from a consumer if the Receiver believes
the consumer was a victim of unfair or deceptive acts or practices in the sale or offering for
sale of timeshare resale or rental services, without prior Court approval;
C.

Use any means necessary to take possession of and to secure each and

every business premises of the Receivership Defendant. Such steps may include, but are not
limited to, any of the following, as the Receiver deems necessary or advisable: (1) serving
this Stipulated PI Order; (2) completing a written inventory of all receivership Assets; (3)
obtaining pertinent information from all employees and other agents of the Receivership
Defendant, including, but not limited to, the name, home address, Social Security number,
job description, passwords or access codes, method of compensation, and all accrued and
unpaid commissions and compensation of each such employee or agent; (4) photographing
and video taping any or all portions of the location; (5) securing the location by changing the
locks and disconnecting any computer modems, servers, network access, or other means of
access to the computer or other records maintained at that location; and (6) requiring any
persons present on the premises at the time this Stipulated PI Order is served to leave the
premises, to provide the Receiver with proof of identification, and to demonstrate to the
15

satisfaction of the Receiver that such persons are not removing from the premises Documents
or Assets of the Receivership Defendant;
D.

Conserve, hold, and manage all Assets of the Receivership Defendant

and perform all acts necessary or advisable to preserve the value of those Assets in order to
prevent any irreparable loss, damage, or injury to consumers or creditors of the Receivership
Defendant, including, but not limited to, obtaining an accounting of the assets and preventing
unauthorized transfer, withdrawal, or misapplication of Assets, and including the authority to
liquidate or close out any open securities or commodities futures positions of the
Receivership Defendant;
E.

Enter into contracts and purchase insurance as advisable or necessary;

F.

Prevent the inequitable distribution of assets and determine, adjust,

and protect the interests of consumers and creditors who have transacted business with the
Receivership Defendant;
G.

Manage and administer the business of the Receivership Defendant

until further order of this Court by performing all incidental acts that the Receiver deems to
be advisable or necessary;
H.

Make payments and disbursements from the receivership estate that

are necessary or advisable for carrying out the directions of, or exercising the authority
granted by, this Stipulated PI Order. The Receiver shall apply to the Court for prior approval
of any payment of any debt or obligation incurred by the Receivership Defendant prior to the
date of entry of this Stipulated PI Order, except payments that the Receiver deems necessary
or advisable to secure assets of the Receivership Defendant, such as rental payments;
16

I.

Determine and implement the manner in which the Receivership

Defendant will comply with, and prevent violations of, this Stipulated PI Order and all other
applicable laws;
J.

Institute, compromise, adjust, appear in, intervene in, or become party

to such actions or proceedings in state, federal, or foreign courts that the Receiver deems
necessary and advisable to preserve or recover the Assets of the Receivership Defendant or
that the Receiver deems necessary and advisable to carry out the Receiver’s mandate under
this Stipulated PI Order;
K.

Defend, compromise, adjust, or otherwise dispose of any or all actions

or proceedings instituted against the Receiver in his role as Receiver, or against the
Receivership Defendant, as the Receiver deems necessary and advisable to preserve the
Assets of the Receivership Defendant, or as the Receiver deems necessary and advisable to
carry out the Receiver's mandate under this Stipulated PI Order;
L.

Continue to conduct the business of the Receivership Defendant in

such manner, to such extent, and for such duration as the Receiver may in good faith deem to
be necessary or appropriate to operate the businesses profitably and lawfully, if at all;
provided that the continuation and conduct of the business shall be conditioned upon the
Receiver's good faith determination that the business can be lawfully operated at a profit
using the Assets of the receivership estate;
M.

Issue subpoenas to obtain Documents and records pertaining to the

receivership, and conduct discovery in this action on behalf of the receivership estate;
N.

Open one or more bank accounts as designated depositories for funds
17

of the Receivership Defendant. The Receiver shall deposit all funds of the Receivership
Defendant in such a designated account and shall make all payments and disbursements from
the receivership estate from such an account. The Receiver shall serve copies of monthly
account statements on all parties;
O.

Maintain accurate records of all receipts and expenditures made as

Receiver;
P.

Cooperate with reasonable requests for information or assistance from

any state or federal law enforcement agency, including Plaintiff; and
Q.

File reports with the Court on a timely basis.
VIII. COOPERATION WITH THE RECEIVER

IT IS FURTHER ORDERED that
A.

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

other Persons who are in active concert or participation with them, who receive actual notice
of this Stipulated PI Order by personal service or otherwise, whether acting directly or
indirectly, shall fully cooperate with and assist the Receiver. This cooperation and assistance
shall include, but not be limited to:
1.

Providing any information to the Receiver that the Receiver deems

necessary in order to exercise the authority and discharge the responsibilities of the
Receiver under this Stipulated PI Order;
2.

Providing any password required to access any computer, electronic

file, or telephonic data in any medium; and
3.

Advising all Persons who owe money to the Receivership Defendant
18

that all debts should be paid directly to the Receiver.
B.

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

other Persons who are in active concert or participation with them, who receive actual notice
of this Stipulated PI Order by personal service or otherwise, whether acting directly or
indirectly, are hereby restrained and enjoined from:
1.

Transacting any of the business of the Receivership Defendant;

2.

Destroying, secreting, defacing, mutilating, concealing, altering,

transferring, or otherwise disposing of any Document of the Receivership Defendant,
including but not limited to books, records, tapes, discs, accounting data, checks
(fronts and backs), correspondence, forms, advertisements, website designs and texts,
telemarketing scripts or outlines, brochures, manuals, banking records, customer lists,
customer files, customer payment histories, invoices, telephone records, ledgers,
payroll records, or other Documents of any kind, including electronically stored
information;
3.

Transferring, receiving, altering, selling, encumbering, pledging,

assigning, liquidating, or otherwise disposing of any Asset owned, controlled, or in
the possession or custody of, or in which an interest is held or claimed by, the
Receivership Defendant, or the Receiver;
4.

Excusing debts owed to the Receivership Defendant;

5.

Failing to notify the Receiver of any Asset, including accounts, of the

Receivership Defendant held in any name other than the name of the Receivership
Defendant, or by any person or entity other than the Receivership Defendant, or
19

failing to provide any assistance or information requested by the Receiver in
connection with obtaining possession, custody, or control of such Assets;
6.

Doing any act or refraining from any act whatsoever to interfere

with the Receiver managing, or taking custody, control, or possession of, the Assets
or Documents subject to this receivership; or to harass or interfere with the Receiver
in any way; or to interfere in any manner with the exclusive jurisdiction of this Court
over the Assets or Documents of the Receivership Defendant; or to refuse to
cooperate with the Receiver or the Receiver's duly authorized agents in the exercise
of their duties or authority under any order of this Court; or
7.

Filing, or causing to be filed, any petition on behalf of the

Receivership Defendant for relief under the United States Bankruptcy Code, 11
U.S.C. § 101 et. seq., without prior permission from this Court.
IX. COMPENSATION OF RECEIVER
IT IS FURTHER ORDERED that the Receiver is entitled to reasonable
compensation for the performance of all duties pursuant to this Stipulated PI Order, and for
the cost of actual out-of-pocket expenses incurred, solely from the Assets now held by, or in
the possession or control of, or which may be received by the Receivership Defendant. The
Receiver shall file with the Court, and serve on the parties, periodic requests for the payment
of such compensation, with the first such request due prior to sixty (60) days after the date of
this Stipulated PI Order. The Receiver shall not increase the Receiver’s fee billed to the
receivership estate without prior approval of the Court.
X. BOND
20

IT IS FURTHER ORDERED that the Receiver shall not be required to file a
performance bond with the Clerk of this Court.
XI. ACCESS TO BUSINESS PREMISES AND DOCUMENTS
IT IS FURTHER ORDERED that Plaintiff, the Receiver, and their respective
representatives, agents, contractors, and assistants are permitted, and the Defendants shall
allow, reasonable access to any and all business premises or storage facilities of the
Receivership Defendant. The Receiver shall allow Plaintiff into such business premises and
storage facilities and shall allow Plaintiff and its representatives, agents, contractors, and
assistants to inspect and copy Documents relevant to any matter contained in this Stipulated
PI Order.
Defendants and all agents or employees of Defendants shall provide counsel for
Plaintiff and the Receiver with any necessary means of access to Documents, including,
without limitation, the locations of Receivership Defendant’s business premises, keys and
combinations to business premises locks, computer access codes of all computers, including
mobile devices, used to conduct Receivership Defendant’s business, and storage area access
information.
The Receiver and counsel for Plaintiff shall have the right to remove any Documents
related to Defendants’ business practices from the premises in order that they may be
inspected and copied. The materials so removed shall be returned within three (3) business
days of completing said copying.
If any Asset or Document belonging to the Receivership Defendant is located at the
residence of any Defendant or is otherwise in the custody or control of any Defendant, then
21

such Defendant shall produce the Asset or Document to the Receiver within twenty-four (24)
hours of service of this Stipulated PI Order.
XII. DEFENDANTS’ ACCESS TO PREMISES AND RECORDS
IT IS FURTHER ORDERED that the Receiver shall allow the Defendants and their
representatives reasonable access to the premises of the Receivership Defendant. The
purpose of this access shall be to inspect and copy any and all Documents and other property
owned by or in the possession of the Receivership Defendant, provided that those Documents
and property are not removed from the premises. The Receiver shall have the discretion to
determine the time, manner, and reasonable conditions of such access.
XIII. DELIVERY OF RECEIVERSHIP PROPERTY
IT IS FURTHER ORDERED that, immediately upon service of this Order upon
them, or within such time as may be permitted by the Receiver, Defendants, or any other
Person or entity served with a copy of this Stipulated PI Order, shall transfer or deliver
possession, custody and control of the following to the Receiver, to the extent not already
provided:
A.

All Assets of the Receivership Defendant (including, but not limited to,

desktop and laptop computers and network servers), including Assets subject to repatriation
pursuant to Section XV, infra;
B.

All Documents of the Receivership Defendant, including, but not

limited to, all financial and accounting records, balance sheets, income statements, bank
records (including monthly statements, canceled checks, records of wire transfers, and check
registers), customer lists, title documents, contracts, accounting data, written or electronic
22

correspondence, advertisements, computer tapes, disks, or other computerized records,
books, written or printed records, handwritten notes, telephone logs, telephone scripts,
membership records and lists, refund records, receipts, ledgers, personal and business
canceled checks and check registers, appointment books, copies of federal, state, or local
business, personal income, or property tax returns, and other Documents or records of any
kind that relate to the Receivership Defendant’s business practices;
C.

All funds and other Assets belonging to members of the public now

held by the Receivership Defendant; and
D.

All keys, codes, and passwords, entry codes, combinations to locks, and

information or devices required to open or gain access to any Asset or Document, including,
but not limited to, access to their business premises, means of communication, accounts,
computer systems, or other property.
XIV. NON-COMPLIANCE WITH TRANSFERS OR DELIVERY
IT IS FURTHER ORDERED that, in the event any Person or entity fails to transfer
or deliver any Asset, Document, or other thing or otherwise fails to comply with any
provision of this Stipulated PI Order requiring the delivery of Assets, Documents or other
things, the Receiver may file ex parte an affidavit of non-compliance regarding the failure.
Upon filing of the affidavit, the Court may authorize, without additional process or demand,
writs of possession or sequestration or other equitable writs requested by the Receiver. The
writs shall authorize and direct the United States Marshal or any sheriff or deputy sheriff of
any county, or any other federal, state, or local law enforcement officer, to seize the Asset,
Document, or other thing and to deliver it to the Receiver.
23

XV. REPATRIATION OF FOREIGN ASSETS AND DOCUMENTS
IT IS FURTHER ORDERED that, within five (5) business days following service
of this Stipulated PI Order, Defendants shall, to the extent not already done so:
A.

Repatriate to the United States all funds, Documents or Assets in foreign

countries held either: (1) by any Defendant; (2) for the benefit of any Defendant; or (3) under
the direct or indirect control, jointly or individually, of any Defendant;
B.

The same business day as any repatriation, (1) notify counsel for the Plaintiff

and the Receiver of the name and location of the financial institution or other entity that is
the recipient of such funds, Documents or Assets; and (2) serve this Stipulated PI Order on
any such financial institution or other entity;
C.

Provide the Plaintiff and the Receiver with a full accounting of all funds,

Documents, and Assets outside of the territory of the United States held either: (1) by the
Defendants; (2) for the Defendants’ benefit; or (3) under the Defendants’ direct or indirect
control, individually or jointly; and
D.

Provide Plaintiff with access to all records of accounts or Assets of

Defendants held by financial institutions whether located outside the territorial United States
or otherwise by signing the Consent to Release of Financial Records.
XVI. INTERFERENCE WITH REPATRIATION
IT IS FURTHER ORDERED that Defendants are hereby enjoined from taking any
action, directly or indirectly, which may result in the encumbrance or dissipation of foreign
Assets, or in the hindrance of the repatriation required by the preceding Section of this
Stipulated PI Order, including, but not limited to:
24

A.

Sending any statement, letter, fax, e-mail or wire transmission, or telephoning

or engaging in any other act, directly or indirectly, that results in a determination by a foreign
trustee or other entity that a "duress" event has occurred under the terms of a foreign trust
agreement, until such time as all Assets have been fully repatriated pursuant to the preceding
Section of this Stipulated PI Order; and
B.

Notifying any trustee, protector or other agent of any foreign trust or other

related entities of either the existence of this Stipulated PI Order, or of the fact that
repatriation is required pursuant to a Court Order, until such time as all Assets have been
fully repatriated pursuant to the preceding Section of this Stipulated PI Order.
XVII. CREDIT REPORTS
IT IS FURTHER ORDERED that the Plaintiff may obtain credit reports concerning
the individual Defendants, Lincoln Renwick II and Anthony Talavera, pursuant to Section
604(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681b(a)(1), and that, upon written
request, any credit reporting agency from which such report is requested shall provide it to
the Plaintiff.
XVIII. DISTRIBUTION OF ORDER BY DEFENDANTS
IT IS FURTHER ORDERED that Defendants shall immediately provide a copy of
this Stipulated PI Order to each affiliate, agent, partner, division, sales entity, successor,
assignee, officer, director, employee, independent contractor, spouse, Internet web host or
master, agent, attorney, and/or representative of Defendants and shall, within ten (10) days
from the date of entry of this Stipulated PI Order, serve upon counsel for the Plaintiff a
sworn statement that the Defendants have complied with this provision of this Stipulated PI
25

Order, which statement shall include the names and addresses of each such person or entity
who has received a copy of the Stipulated PI Order.
XIX. STAY OF ACTIONS
IT IS FURTHER ORDERED that except by leave of this Court, during the
pendency of the receivership ordered herein, the Defendants and all other persons and
entities are hereby stayed from taking any action to establish or enforce any claim, right or
interest for, against, on behalf of, in, or in the name of, the Receivership Defendant, or any of
their subsidiaries, affiliates, partnerships, Assets, Documents, or the Receiver or the
Receiver’s duly authorized agents acting in their capacities as such, including, but not limited
to, the following actions:
A.

Commencing, prosecuting, continuing or enforcing any suit or

proceeding, except that such actions may be filed to toll any applicable statute of limitations;
B.

Accelerating the due date of any obligation or claimed obligation, filing,

perfecting, or enforcing any lien; taking or attempting to take possession, custody or control
of any Asset; attempting to foreclose, forfeit, alter, or terminate any interest in any Asset,
whether such acts are part of a judicial proceeding, are acts of self-help, or otherwise, or
setoff of any debt owing to the Receivership Defendant that arose before the date of this
Stipulated PI Order against any claim against the Receivership Defendant;
C.

Doing any act or thing whatsoever to interfere with the Receiver taking

custody, control, possession or management of the Assets or Documents subject to this
receivership, or to harass or interfere with the Receiver in any way, or to interfere in any
manner with the exclusive jurisdiction of this Court over the Assets and Documents of the
26

Receivership Defendant.
Provided, however, nothing in this Paragraph shall prohibit any law enforcement or
regulatory authority from commencing or prosecuting an action against the Receivership
Defendant to enforce such governmental unit’s police or regulatory power;
Provided further, that, except as otherwise provided in this Stipulated PI Order, all
persons and entities in need of documentation from the Receiver shall in all instances first
attempt to secure such information by submitting a formal written request to the Receiver,
and, if such request has not been responded to within thirty (30) days of receipt by the
Receiver, any such person or entity may thereafter seek an order of this Court with regard to
the relief requested.
XX. SERVICE OF THIS ORDER
IT IS FURTHER ORDERED that copies of this Stipulated PI Order may be
distributed by U.S. first class mail, overnight delivery, facsimile, electronic mail, or
personally by agents or employees of Plaintiff, by agents or employees of the Receiver, by
any law enforcement agency, or by private process server, upon any person, financial
institution, or other entity that may have possession or control of any property, property
right, Asset or Document of any Defendant, or that may be subject to any provision of this
Stipulated PI Order. Service upon any branch or office of any financial institution or entity
shall effect service upon the entire financial institution or entity.
XXI. CORRESPONDENCE WITH AND NOTICE TO PLAINTIFF
IT IS FURTHER ORDERED that, for purposes of this Stipulated PI Order, all
correspondence and pleadings to the Federal Trade Commission shall be addressed to:
27

Harold E. Kirtz, Esq.
Federal Trade Commission
225 Peachtree Street, Suite 1500
Atlanta, Georgia 30303
[phone] (telephone)
[phone] (facsimile)
Notice may be provided by email to [e-mail].
XXII. RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court shall retain jurisdiction over
this matter for all purposes.
IT IS SO ORDERED, this 11th day of June, 2013, at 9:45 a.m.

copies to: All counsel and parties of record

28