Federal Trade Commission v. Revmountain LLC et al

Filing 56

PRELIMINARY INJUNCTION Order with Asset Freeze, Appointment of Receiver, and other Equitable Relief as to Defendants Blair McNea, Jennifer Johnson, and Entity Defendants. Signed by Judge Andrew P. Gordon on 9/1/17. (Copies have been distributed pursuant to the NEF - MR)

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UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
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v.
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REVMOUNTAIN, LLC, a Nevada limited
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liability company,
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ROADRUNNER B2C, LLC, also d/b/a
REVGO, a Nevada limited liability company, )
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WAVE ROCK, LLC, a Nevada limited
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liability company,
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JUNIPER SOLUTIONS, LLC, a Nevada
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limited liability company,
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JASPER WOODS, LLC, a Nevada limited
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liability company,
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WHEELER PEAK MARKETING, LLC, a
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Nevada limited liability company,
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ROIRUNNER, LLC, a Nevada limited
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liability company,
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CHERRY BLITZ, LLC, a Nevada limited
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liability company,
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FLAT IRON AVENUE, LLC, a Nevada
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limited liability company,
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ABSOLUTELY WORKING, LLC, a Nevada )
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limited liability company,
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THREE LAKES, LLC, a Nevada limited
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liability company,
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BRIDGE FORD, LLC, a Nevada limited
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liability company,
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HOW AND WHY, LLC, a Nevada limited
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liability company,
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SPRUCE RIVER, LLC, a Nevada limited
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liability company,
FEDERAL TRADE COMMISSION,
Plaintiff,

Case No: 17-cv-02000-APG-GWF

PRELIMINARY INJUNCTION WITH
ASSET FREEZE, APPOINTMENT OF
RECEIVER, AND OTHER EQUITABLE
RELIEF AS TO DEFENDANTS BLAIR
MCNEA, JENNIFER JOHNSON, AND
ENTITY DEFENDANTS

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TRIMXT, LLC, a Nevada limited liability
company,
ELATION WHITE, LLC, a Nevada limited
liability company,
IVORYPRO, LLC, a Nevada limited liability
company,
DOING WHAT’S POSSIBLE, LLC, a
Nevada limited liability company,
REVGUARD, LLC, a Colorado limited
liability company,
REVLIVE!, LLC, a Colorado limited liability
company,
BLUE ROCKET BRANDS, LLC, a
Colorado limited liability company,
CONVERTIS, LLC, a Colorado limited
liability company,
CONVERTIS MARKETING, LLC, a
Colorado limited liability company,
TURTLE MOUNTAINS, LLC, a Colorado
limited liability company,
BOULDER BLACK DIAMOND, LLC, a
Colorado limited liability company,
MINT HOUSE, LLC, a Colorado limited
liability company,
THUNDER AVENUE, LLC, a Colorado
limited liability company,
UNIVERSITY & FOLSOM, LLC, a
Colorado limited liability company,
BOULDER CREEK INTERNET
SOLUTIONS, INC., a Colorado corporation,
WALNUT STREET MARKETING, INC., a
Colorado corporation,
SNOW SALE, LLC, a Colorado limited
liability company,

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WILD FARMS, LLC, a Colorado limited
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liability company,
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SALAMONIE RIVER, LLC, an Indiana
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limited liability company,
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INDIGO SYSTEMS, LLC, an Indiana
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limited liability company,
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NIGHT WATCH GROUP, LLC, an Indiana )
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limited liability company,
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NEWPORT CROSSING, LLC, an Indiana
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limited liability company,
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GREENVILLE CREEK, LLC, an Indiana
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limited liability company,
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BROOKVILLE LANE, LLC, an Indiana
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limited liability company,
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ANASAZI MANAGEMENT PARTNERS, )
LLC, a Wyoming limited liability company, )
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HONEY LAKE, LLC, a Wyoming limited
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liability company,
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CONDOR CANYON, LLC, a Wyoming
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limited liability company,
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BRASS TRIANGLE, LLC, an Arizona
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limited liability company,
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SOLID ICE, LLC, an Arizona limited
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liability company,
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SANDSTONE BEACH, LLC, an Arizona
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limited liability company,
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DESERT GECKO, LLC, an Arizona limited )
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liability company,
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BLIZZARDWHITE, LLC, an Arizona
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limited liability company,
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ACTION PRO WHITE, LLC, an Arizona
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limited liability company,
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FIRST CLASS WHITENING, LLC, an
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Arizona limited liability company,
BRAND FORCE, LLC, a Colorado limited
liability company,

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SPARK WHITENING, LLC, an Arizona
limited liability company,
TITANWHITE, LLC, an Arizona limited
liability company,
DENTAL PRO AT HOME, LLC, an Arizona
limited liability company,
SMILE PRO DIRECT, LLC, an Arizona
limited liability company,
CIRCLE OF YOUTH SKINCARE, LLC, an
Arizona limited liability company,
DERMAGLAM, LLC, an Arizona limited
liability company,
SEDONA BEAUTY SECRETS, LLC, an
Arizona limited liability company,
BELLAATHOME, LLC, an Arizona limited
liability company,
SKINNYIQ, LLC, an Arizona limited
liability company,
BODY TROPICAL, LLC, an Arizona limited
liability company,
BLAIR MCNEA, individually and as an
officer of REVGUARD, LLC,
DANIELLE FOSS, individually and as an
officer of BLUE ROCKET BRANDS, LLC
and CONVERTIS, LLC,
and
an
JENNIFER JOHNSON, individually and as
an officer of REVMOUNTAIN, LLC,

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Defendants.

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Plaintiff, the Federal Trade Commission (“FTC”), filed its Complaint for Permanent
Injunction and Other Equitable Relief pursuant to Section 13(b) of the Federal Trade

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Commission Act (“FTC Act”), 15 U.S.C. § 53(b), and an Emergency Motion for Ex Parte

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Temporary Restraining Order pursuant to Federal Rule of Civil Procedure 65(b). On July 25,

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2017, the Court granted the FTC’s Emergency Motion for Ex Parte Temporary Restraining
Order, including an order to show cause why a preliminary injunction should not issue, and
entered a Temporary Restraining Order (“TRO”). Upon consideration of the material submitted
by the parties and argument of counsel, the Court enters this Preliminary Injunction.

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FINDINGS OF FACT
The Court, having considered the Complaint, the Emergency Motion for Ex Parte
Temporary Restraining Order and supplemental brief in support, declarations, exhibits, and
memoranda filed in support thereof, and briefs, declarations, exhibits, and memoranda filed in
opposition thereto, and being otherwise advised, finds that:
A.

This Court has jurisdiction over the subject matter of this case, and there is good

cause to believe that it will have jurisdiction over all parties hereto and that venue in this district
is proper.
B.

On July 24, 2017, the FTC filed its Complaint for Permanent Injunction and Other

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Equitable Relief, an Emergency Motion for Ex Parte Temporary Restraining Order, and related

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pleadings.

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C.

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On July 25, 2017, the Court entered the FTC’s Temporary Restraining Order with

Asset Freeze, Appointment of a Temporary Receiver, and Other Equitable Relief, and Order to
Show Cause Why a Preliminary Injunction Should Not Issue. ECF No. 16.
D.

The FTC has demonstrated a likelihood of success in showing that, in numerous

instances, Defendants misrepresented the price of trial offers, charged consumers for products
they did not order or want, and enrolled consumers into continuity plans without their consent.

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E.

There is good cause to believe that Defendants have engaged in and are likely to

engage in acts or practices that violate Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), and
Section 5 of the Restore Online Shoppers’ Confidence Act (“ROSCA”), 15 U.S.C. § 8404, and
that Plaintiff is therefore likely to prevail on the merits of this action. As demonstrated by
Defendants’ business records; consumer complaints and declarations; records of undercover

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purchases; a report by a usability expert; corporate, banking and payment processing records;

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and the additional documentation filed in this matter, the FTC has established a likelihood of

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success in showing that Defendants deceived consumers by misrepresenting the price of personal

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care products to obtain their credit card numbers, and then charging them $100 to $200 per
month for additional products they did not order or want.
F.

There is good cause to believe that immediate and irreparable harm will result

from Defendants’ ongoing violations of the FTC Act and ROSCA unless Defendants continue to
be restrained and enjoined by order of this Court.
G.

There is good cause to believe that immediate and irreparable damage to the

Court’s ability to grant effective final relief for consumers will occur from the sale, transfer,
destruction or other disposition or concealment by Defendants of their Assets or records, unless
Defendants continue to be restrained and enjoined by order of this Court.
H.

Good cause exists for appointing a permanent Receiver over the Receivership

Entities and freezing Defendants’ Assets.
I.

Weighing the equities and considering the FTC’s likelihood of ultimate success

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on the merits, a preliminary injunction order with Asset freeze, the appointment of a permanent

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Receiver, and other equitable relief is in the public interest.

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J.

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

preliminary injunction order. Fed. R. Civ. P. 65(c).

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DEFINITIONS
For the purpose of this Preliminary Injunction, the following definitions shall apply:
A.

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

property, wherever located and by whomever held.
B.

“Billing Information” means any data that enables any person to access a

customer's account, such as a credit card, checking, savings, share or similar account, utility bill,
mortgage loan account, or debit card.
C.

“Charge,” “Charged,” or “Charging” means any attempt to collect money or

other consideration from a consumer, including but not limited to causing Billing Information to
be submitted for payment, including against the consumer’s credit card, debit card, bank account,
telephone bill, or other account.
D.

“Clear(ly) and conspicuous(ly)” means that a required disclosure is difficult to

miss (i.e., easily noticeable) and easily understandable by ordinary consumers, including in all of
the following ways:
1.

In any communication that is solely visual or solely audible, the disclosure

must be made through the same means through which the communication is presented.
In any communication made through both visual and audible means, such as a television

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advertisement, the disclosure must be presented simultaneously in both the visual and

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audible portions of the communication even if the representation requiring the disclosure

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is made in only one means;

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2.

appears, and other characteristics, must stand out from any accompanying text or other
visual elements so that it is easily noticed, read, and understood;

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3.

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hear and understand it;
4.

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In any communication using an interactive electronic medium, such as the

Internet or software, the disclosure must be unavoidable;

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An audible disclosure, including by telephone or streaming video, must be

delivered in a volume, speed, and cadence sufficient for ordinary consumers to easily

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A visual disclosure, by its size, contrast, location, the length of time it

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The disclosure must use diction and syntax understandable to ordinary

consumers and must appear in each language in which the representation that requires the
disclosure appears;
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The disclosure must comply with these requirements in each medium

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through which it is received, including all electronic devices and face-to-face

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communications;

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7.

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with, anything else in the communication; and

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The disclosure must not be contradicted or mitigated by, or inconsistent

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When the representation or sales practice targets a specific audience, such

as children, the elderly, or the terminally ill, “ordinary consumers” includes reasonable
members of that group.
4.

“Close Proximity” means immediately adjacent to the triggering representation.

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In the case of advertisements disseminated verbally or through audible means, the disclosure

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shall be made as soon as practicable after the triggering representation.

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E.

“Entity Defendants” means RevMountain, LLC; RoadRunner B2C, LLC, d/b/a

RevGo; Wave Rock, LLC; Juniper Solutions, LLC; Jasper Woods, LLC; Wheeler Peak
Marketing, LLC; ROIRunner, LLC; Cherry Blitz, LLC; Flat Iron Avenue, LLC; Absolutely
Working, LLC; Three Lakes, LLC; Bridge Ford, LLC; How and Why, LLC; Spruce River, LLC;
TrimXT, LLC; Elation White, LLC; IvoryPro, LLC; Doing What’s Possible, LLC; RevGuard,

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LLC; RevLive!, LLC; Blue Rocket Brands, LLC; Convertis, LLC; Convertis Marketing, LLC;

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Turtle Mountains, LLC; Boulder Black Diamond, LLC; Mint House, LLC; Thunder Avenue,

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LLC; University & Folsom, LLC; Boulder Creek Internet Solutions, Inc.; Walnut Street

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Marketing, Inc.; Snow Sale, LLC; Brand Force, LLC; Wild Farms, LLC; Salamonie River, LLC;
Indigo Systems, LLC; Night Watch Group, LLC; Newport Crossing, LLC; Greenville Creek,
LLC; Brookville Lane, LLC; Anasazi Management Partners, LLC; Honey Lake, LLC; Condor
Canyon, LLC; Brass Triangle, LLC; Solid Ice, LLC; Sandstone Beach, LLC; Desert Gecko,

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LLC; Blizzardwhite, LLC; Action Pro White, LLC; First Class Whitening, LLC; Spark

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Whitening, LLC; Titanwhite, LLC; Dental Pro At Home, LLC; Smile Pro Direct, LLC; Circle of

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Youth Skincare, LLC; DermaGlam, LLC; Sedona Beauty Secrets, LLC; Bellaathome, LLC;

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SkinnyIQ, LLC; Body Tropical, LLC; and each of their subsidiaries, affiliates, successors, and
assigns.
F.

“Defendant(s)” means Entity Defendants, Blair McNea, and Jennifer Johnson,

individually, collectively, or in any combination.
G.

“Document” is synonymous in meaning and equal in scope to the usage of

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“document” and “electronically stored information” in Federal Rule of Civil Procedure 34(a),

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and includes writings, drawings, graphs, charts, photographs, sound and video recordings,

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images, Internet sites, web pages, websites, electronic correspondence, including e-mail and

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instant messages, contracts, accounting data, advertisements, FTP Logs, Server Access Logs,

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books, written or printed records, handwritten notes, telephone logs, telephone scripts, receipt

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books, ledgers, personal and business canceled checks and check registers, bank statements,
appointment books, computer records, customer or sales databases and any other electronically
stored information, including Documents located on remote servers or cloud computing systems,

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and other data or data compilations from which information can be obtained directly or, if

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necessary, after translation into a reasonably usable form. A draft or non-identical copy is a

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separate document within the meaning of the term.

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H.

“Electronic Data Host” means any person or entity in the business of storing,

hosting, or otherwise maintaining electronically stored information. This includes, but is not
limited to, any entity hosting a website or server, and any entity providing “cloud based”
electronic storage.
I.

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

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any good or service, a provision under which the consumer’s silence or failure to take affirmative

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action to reject a good or service or to cancel the agreement is interpreted by the seller or

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provider as acceptance or continuing acceptance of the offer.
J.

“Receiver” means the Receiver appointed in Section XIII of this Order and any

deputy receivers or agents that shall be named by the Receiver.
K.

“Receivership Entities” means Entity Defendants as well as any other entity that

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has conducted any business related to Defendants’ marketing of negative option offers, including

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receipt of Assets derived from any activity that is the subject of the Complaint in this matter, and

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that the Receiver determines is controlled or owned by any Defendant.

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ORDER

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I.

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PROHIBITION AGAINST MISREPRESENTATIONS

IT IS THEREFORE ORDERED that Defendants, Defendants’ officers, agents,
employees, and attorneys, and all other persons in active concert or participation with them, who
receive actual notice of this Order by personal service or otherwise, whether acting directly or
indirectly, in connection with the advertising, marketing, promoting, offering for sale, or sale of

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any goods or services, are restrained and enjoined from misrepresenting or assisting others in

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misrepresenting, expressly or by implication, any material fact, including:

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A.

That consumers will be charged only a nominal fee plus shipping and handling

costs for a one-time shipment; and

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B.

That clicking through a website’s pages will complete a single transaction for a

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single product.
II.

REQUIRED DISCLOSURES RELATING TO NEGATIVE OPTION FEATURES
IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees,

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, are restrained and enjoined from
obtaining Billing Information from a consumer for any online transaction involving the

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advertising, marketing, promoting, offering for sale, or sale of any good or service that includes a

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Negative Option Feature, without first disclosing Clearly and Conspicuously, and in Close

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Proximity to where a consumer provides Billing Information, all material terms, including:

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A.

The total cost (or range of costs) the consumer will be charged;

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That a consumer is automatically enrolled in a monthly negative option plan;

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C.
Charges; and
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That consumers who complete a transaction are purchasing two separate products

with separate monthly negative option plans.

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The extent to which the consumer must take affirmative action(s) to avoid any

III.

OBTAINING EXPRESS INFORMED CONSENT

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees,
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, are restrained and enjoined from
using Billing Information to obtain payment from a consumer for any online transaction in
connection with the advertising, marketing, promoting, offering for sale, or sale of any good or

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service with a Negative Option Feature, unless Defendants first obtain the express informed

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consent of the consumer before Charging the consumer’s credit card, debit cards, banks accounts

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or other financial accounts for products or services.

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IV.

PROHIBITION ON RELEASE OF CUSTOMER INFORMATION

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 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, are hereby restrained
and enjoined from:
A.

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

birth date, telephone number, email address, credit card number, bank account number, Social
Security number, or other financial or identifying information of any person that any Defendant
obtained in connection with any activity that pertains to the subject matter of this Order; and

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B.

Benefitting from or using the name, address, birth date, telephone number, email

address, credit card number, bank account number, Social Security number, or other financial or
identifying information of any person that any Defendant obtained in connection with any
activity that pertains to the subject matter of this Order.
Provided, however, that Defendants may disclose such identifying information to a law

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enforcement agency, to their attorneys as required for their defense, as required by any law,

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regulation, or court order, or in any filings, pleadings or discovery in this action in the manner

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required by the Federal Rules of Civil Procedure and by any protective order in the case.

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V.

ASSET FREEZE

IT IS FURTHER ORDERED that Defendants and their officers, agents, employees,
and attorneys, and all other persons in active concert or participation with any of them, who

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receive actual notice of this Order, whether acting directly or indirectly, are hereby restrained
and enjoined from:
A.

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

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concealing, dissipating, disbursing, assigning, relinquishing, spending, withdrawing, granting a

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lien or security interest or other interest in, or otherwise disposing of any Assets that are:

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owned or controlled, directly or indirectly, by any Defendant;

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held, in part or in whole, for the benefit of any Defendant;

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in the actual or constructive possession of any Defendant; or

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

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otherwise held for the benefit of, any corporation, partnership, Asset

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protection trust, or other entity that is directly or indirectly owned,

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managed or controlled by any Defendant.

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B.

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

or storage facilities titled in the name of any Defendant or subject to access by any Defendant,
except as necessary to comply with written requests from the Receiver acting pursuant to its
authority under this Order;
C.

Incurring charges or cash advances on any credit or bank card issued in the name,

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individually or jointly, of any Entity Defendant or any corporation, partnership, or other entity

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directly or indirectly owned, managed, or controlled by any Defendant or of which any

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Defendant is an officer, director, member, or manager. This includes any corporate bankcard or

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corporate credit card account for which any Defendant is, or was on the date that this Order was

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signed, an authorized signor; or
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Cashing any checks or depositing any money orders or cash received from

consumers, clients, or customers of any Defendant.
E.

The Assets affected by this Section shall include: (1) all Assets of Defendants as

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of July 25, 2017; and (2) Assets obtained by Defendants after July 25, 2017 if those Assets are

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derived from any activity that is the subject of the Complaint in this matter or that is prohibited

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by this Order. This Section does not prohibit any transfers to the Receiver or repatriation of
foreign Assets specifically required by this Order.
F.

The FTC and Defendant Johnson shall file a joint motion regarding release of

assets for Defendant Johnson’s living and designated creditor expenses, as agreed by the FTC
and Defendant Johnson and as ordered at the preliminary injunction hearing on August 29, 2017.
G.

Defendant McNea and the Entity Defendants may file a motion for release of

funds, including specific proposals for funds to be released and expenses to be paid. The FTC
reserves the right to oppose any such motion.

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VI.

DUTIES OF ASSET HOLDERS AND OTHER THIRD PARTIES

IT IS FURTHER ORDERED that any financial or brokerage institution, Electronic
Data Host, credit card processor, payment processor, merchant bank, acquiring bank,
independent sales organization, third party processor, payment gateway, insurance company,
business entity, or person who receives actual notice of this Order (by service or otherwise) and
that (a) holds, controls, or maintains custody, through an account or otherwise, of any Document

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on behalf of any Defendant or any Asset that is: owned or controlled, directly or indirectly, by

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any Defendant; held, in part or in whole, for the benefit of any Defendant; in the actual or

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constructive possession of any Defendant; or owned or controlled by, in the actual or
constructive possession of, or otherwise held for the benefit of, any corporation, partnership,
Asset protection trust, or other entity that is directly or indirectly owned, managed, or controlled

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by any Defendant; (b) holds, controls, or maintains custody of any Document or Asset associated
with credits, debits or charges made on behalf of any Defendant, including reserve funds held by

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payment processors, credit card processors, merchant banks, acquiring banks, independent sales

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organizations, third party processors, payment gateways, insurance companies, or other entities;

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or (c) has held, controlled, or maintained custody of any such Document, Asset, or account at

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any time since the date of entry of this Order shall:
A.

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

alteration, assignment, transfer, pledge, encumbrance, disbursement, dissipation, relinquishment,

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conversion, sale, or other disposal of any such Document or Asset, as well as all Documents or

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other property related to such Assets, except to the Receiver or by further order of this Court;

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B.

Deny any Person, except the Receiver, access to any safe deposit box, commercial

mail box, or storage facility that is titled in the name of any Defendant, either individually or
jointly, or otherwise subject to access by any Defendant;

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C.

Immediately provide Plaintiff’s counsel and the Receiver, to the extent not

already provided pursuant to the TRO, a sworn statement setting forth:

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1.
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The identification number of each such account or Asset;
The balance of each such account, or a description of the nature

and value of each such Asset as of the close of business on the day on which this

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Order is served, and, if the account or other Asset has been closed or removed, the

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date closed or removed, the total funds removed in order to close the account, and

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the name of the person or entity to whom such account or other Asset was

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remitted; and

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3.

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storage facility that is either titled in the name, individually or jointly, of any

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Defendant, or is otherwise subject to access by any Defendant; and

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The identification of any safe deposit box, commercial mail box, or

D.

Upon the request of Plaintiff’s counsel or the Receiver, promptly provide

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Plaintiff’s counsel and the Receiver with copies of all records or other Documents pertaining to

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such account or Asset, including originals or copies of account applications, account statements,

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signature cards, checks, drafts, deposit tickets, transfers to and from the accounts, including wire
transfers and wire transfer instructions, all other debit and credit instruments or slips, currency
transaction reports, 1099 forms, and all logs and records pertaining to safe deposit boxes,
commercial mail boxes, and storage facilities.
E.

This Section does not prohibit any transfers to the Receiver or repatriation of

foreign Assets specifically required by this order.
VII.

FINANCIAL DISCLOSURES

IT IS FURTHER ORDERED that any Defendant that has not yet provided financial
statements in accordance with Section VII of the TRO shall immediately prepare and deliver to

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Plaintiff’s counsel and the Receiver completed financial statements on the forms attached to this

2

Order as Attachment A (Financial Statement of Individual Defendant) for each Individual

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Defendant, and Attachment B (Financial Statement of Entity Defendant) for each Entity
Defendant.
VIII. FOREIGN ASSET REPATRIATION

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IT IS FURTHER ORDERED that to the extent not already completed pursuant to the
TRO, each Defendant shall immediately:
A.

Provide Plaintiff’s counsel and the Receiver with a full accounting, verified under

oath and accurate as of the date of this Order, of all Assets, Documents, and accounts outside of
the United States which are: (1) titled in the name, individually or jointly, of any Defendant; (2)
held by any person or entity for the benefit of any Defendant or for the benefit of any

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corporation, partnership, Asset protection trust, or other entity that is directly or indirectly
owned, managed, or controlled by any Defendant; or (3) under the direct or indirect control,
whether jointly or singly, of any Defendant;
B.

Take all steps necessary to provide Plaintiff’s counsel and Receiver access to all

Documents and records that may be held by third parties located outside of the territorial United
States of America, including signing the Consent to Release of Financial Records appended to
this Order as Attachment C;
C.

Transfer to the territory of the United States all Documents and Assets located in

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foreign countries which are: (1) titled in the name, individually or jointly, of any Defendant; (2)

24

held by any person or entity for the benefit of any Defendant or for the benefit of any

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corporation, partnership, asset protection trust, or other entity that is directly or indirectly owned,

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managed, or controlled by any Defendant; or (3) under the direct or indirect control, whether

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jointly or singly, of any Defendant; and

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5

D.

Plaintiff of the name and location of the financial institution or other entity that is the recipient of
such Documents or Assets; and (2) serve this Order on any such financial institution or other
entity.
IX.

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

NON-INTERFERENCE WITH REPATRIATION

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees,

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and attorneys, and all other Persons in active concert or participation with any of them, who

9

receive actual notice of this Order, whether acting directly or indirectly, are hereby preliminarily

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restrained and 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
this Order, including, but not limited to:

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A.

Sending any communication 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

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occurred under the terms of a foreign trust agreement until such time that all Defendants’ Assets

17

have been fully repatriated pursuant to this Order; or

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B.

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

entities of either the existence of this Order, or of the fact that repatriation is required pursuant to
a court order, until such time that all Defendants’ Assets have been fully repatriated pursuant to
this Order.
X.

CONSUMER CREDIT REPORTS

IT IS FURTHER ORDERED that Plaintiff may obtain credit reports concerning any

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Defendants pursuant to Section 604(a)(1) of the Fair Credit Reporting Act, 15 U.S.C.

26

§ 1681b(a)(1), and that, upon written request, any credit reporting agency from which such

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reports are requested shall provide them to Plaintiff.

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XI.

PRESERVATION OF RECORDS

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 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, are hereby preliminarily
restrained and enjoined from:
A.

Destroying, erasing, falsifying, writing over, mutilating, concealing, altering,

8

transferring, or otherwise disposing of, in any manner, directly or indirectly, Documents that

9

relate to: (1) the business, business practices, Assets, or business or personal finances of any

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Defendant; (2) the business practices or finances of entities directly or indirectly under the
control of any Defendant; or (3) the business practices or finances of entities directly or
indirectly under common control with any other Defendant; and

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B.

Failing to create and maintain Documents that, in reasonable detail, accurately,

fairly, and completely reflect Defendants’ incomes, disbursements, transactions, and use of
Defendants’ Assets.
XII.

REPORT OF NEW BUSINESS ACTIVITY

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 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, are hereby preliminarily
restrained and enjoined from creating, operating, or exercising any control over any business
entity, whether newly formed or previously inactive, including any partnership, limited

24

partnership, joint venture, sole proprietorship, or corporation, without first providing Plaintiff’s

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counsel and the Receiver with a written statement disclosing: (1) the name of the business

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entity; (2) the address and telephone number of the business entity; (3) the names of the business

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entity’s officers, directors, principals, managers, and employees; and (4) a detailed description of

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the business entity’s intended activities.

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XIII.

RECEIVER

IT IS FURTHER ORDERED that Joshua Teeple, the Temporary Receiver named in the
TRO, is appointed as permanent Receiver of the Receivership Entities with full powers of an
equity receiver. The Receiver shall be solely the agent of this Court in acting as Receiver under
this Order.
The Receiver shall be vested with, and is authorized, directed and empowered to exercise,
all of the power of the Receivership Entities, their officers, directors, shareholders, members,
general partners, or persons who exercise similar powers and perform similar duties; and that the
Receivership Entities, their officers, directors, shareholders, members, general partners, agents,

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employees, representatives, successors in interest, attorneys in fact, and all persons acting in
concert or participating with them, are hereby divested of, restrained and barred from exercising
any of the powers vested herein in the Receiver.

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XIV. DUTIES AND AUTHORITY OF RECEIVER
IT IS FURTHER ORDERED that the Receiver is directed and authorized to
accomplish the following:
A.

Assume full control of Receivership Entities by removing, as the Receiver deems

necessary or advisable, any director, officer, independent contractor, employee, attorney, or
agent of any Receivership Entity from control of, management of, or participation in, the affairs
of the Receivership Entity;
B.

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

or in the possession, custody, or under the control of, any Receivership Entity, wherever situated;

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C.

Conserve, hold, manage, and prevent the loss of all Assets of the Receivership

Entities, and perform all acts necessary or advisable to preserve the value of those Assets. The
Receiver shall assume control over the income and profits therefrom and all sums of money now
or hereafter due or owing to the Receivership Entities. The Receiver shall have full power to sue
for, collect, and receive, all Assets of the Receivership Entities and of other persons or entities

7

whose interests are now under the direction, possession, custody, or control of, the Receivership

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Entities. Provided, however, that the Receiver shall not attempt to collect any amount from a

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consumer if the Receiver believes the consumer’s debt to the Receivership Entities has resulted

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from the deceptive acts or practices or other violations of law alleged in the Complaint in this
matter, without prior Court approval;
D.

Obtain, conserve, hold, manage, and prevent the loss of all Documents of the

Receivership Entities, and perform all acts necessary or advisable to preserve such Documents.

15

The Receiver shall: divert mail; preserve all Documents of the Receivership Entities that are

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accessible via electronic means (such as online access to financial accounts and access to

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electronic documents held onsite or by Electronic Data Hosts), by changing usernames,

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passwords or other log-in credentials; take possession of all electronic Documents of the
Receivership Entities stored onsite or remotely; take whatever steps necessary to preserve all
such Documents; and obtain the assistance of the FTC’s Digital Forensic Unit for the purpose of
obtaining electronic documents stored onsite or remotely.
E.

Choose, engage, and employ attorneys, accountants, appraisers, and other

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independent contractors and technical specialists, as the Receiver deems advisable or necessary

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in the performance of duties and responsibilities under the authority granted by this Order;

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F.

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 Order,
and to incur, or authorize the making of, such agreements as may be necessary and advisable in
discharging his or her duties as Receiver. The Receiver shall apply to the Court for prior
approval of any payment of any debt or obligation incurred by the Receivership Entities prior to

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July 25, 2017, except payments that the Receiver deems necessary or advisable to secure Assets

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of the Receivership Entities, such as rental payments.

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G.

Take all steps necessary to secure and take exclusive custody of each location

from which the Receivership Entities operate their businesses. Such steps may include, but are
not limited to, any of the following, as the Receiver deems necessary or advisable: (1) securing
the location by changing the locks and alarm codes and disconnecting any internet access or
other means of access to the computers, servers, internal networks, or other records maintained at

15

that location; and (2) requiring any persons present at the location to leave the premises, to

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provide the Receiver with proof of identification, and/or to demonstrate to the satisfaction of the

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Receiver that such persons are not removing from the premises Documents or Assets of the

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Receivership Entities;
H.

Take all steps necessary to prevent the modification, destruction, or erasure of any

web page or website registered to and operated, in whole or in part, by any Defendants, and to
provide access to all such web page or websites to Plaintiff’s representatives, agents, and
assistants, as well as Defendants and their representatives;

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I.

Enter into and cancel contracts and purchase insurance as advisable or necessary;

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J.

Verify the nature and extent of, and obtain as the Receiver deems necessary or

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appropriate for the preservation of Assets, insurance coverage; provided however, there may be a

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gap of time before such insurance may be in place to properly protect the Assets and any

2

employees of the receivership estate; and the Receiver has no responsibility or liability until such

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time as the Receiver has notified the Court by filing a notice that insurance is in place. In
connection therewith, the Receiver is hereby authorized to engage insurance brokers and
consultants as necessary to properly insure the Assets;
K.

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the interests of consumers who have transacted business with the Receivership Entities;

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L.

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Make an accounting, as soon as practicable, of the Assets and financial condition

of the receivership and file the accounting with the Court and deliver copies thereof to all parties;

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Prevent the inequitable distribution of Assets and determine, adjust, and protect

M.

Institute, compromise, adjust, appear in, intervene in, defend, dispose of, or

otherwise become party to any legal action in state, federal or foreign courts or arbitration
proceedings as the Receiver deems necessary and advisable to preserve or recover the Assets of

15

the Receivership Entities, or to carry out the Receiver’s mandate under this Order, including but

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not limited to, actions challenging fraudulent or voidable transfers;

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N.

and conduct discovery in this action on behalf of the receivership estate, in addition to obtaining
other discovery as set forth in this Order;

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O.

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Issue subpoenas to obtain Documents and records pertaining to the Receivership,

Open one or more bank accounts at designated depositories for funds of the

Receivership Entities. The Receiver shall deposit all funds of the Receivership Entities in such

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designated accounts and shall make all payments and disbursements from the receivership estate

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from such accounts. The Receiver shall serve copies of monthly account statements on all

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parties;

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P.

Open all mail directed to or received by or at the premises, or post office or

private or commercial mail boxes of the Receivership Entities, and inspect all mail opened prior
to July 25, 2017, to determine whether items or information therein fall within the mandates of
this Order. In connection therewith, the Receiver is authorized to instruct the United States
Postmaster and anyone in possession or control of a private or commercial mailbox to hold

7

and/or reroute mail directed to any of the Receivership Entities. The Receivership Entities are

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directed not to open a new mailbox or take any steps or make any arrangements to receive mail

9

in contravention of this Order, whether through the United States mail, a private mail depository,

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or courier service;
Q.

Maintain accurate records of all receipts and expenditures incurred as Receiver;

R.

Allow the Plaintiff’s representatives, agents, and assistants, as well as

Defendants’ representatives and Defendants themselves, reasonable access to the premises of the

15

Receivership Entities, or any other premises where the Receivership Entities conduct business.

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The purpose of this access shall be to inspect and copy any and all books, records, Documents,

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accounts, and other property owned by, or in the possession of, the Receivership Entities or their

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agents. The Receiver shall have the discretion to determine the time, manner, and reasonable
conditions of such access. Plaintiff’s access to the Receivership Entities’ premises pursuant to
this Section shall not provide grounds for any Defendant to object to any subsequent request for
documents served by Plaintiff;
S.

Allow the Plaintiff’s representatives, agents, and assistants, as well as Defendants

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and their representatives reasonable access to all Documents in the possession, custody, or

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control of the Receivership Entities. Plaintiff’s access to the Receivership Entities’ Documents

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pursuant to this Section shall not provide grounds for any Defendant to object to any subsequent

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request for documents served by Plaintiff;

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T.

Cooperate with reasonable requests for information or assistance from any state or

federal civil or criminal law enforcement agency;
U.

Suspend business operations of the Receivership Entities if in the judgment of the

Receiver such operations cannot be continued legally and profitably;
V.

If the Receiver identifies a nonparty entity as a Receivership Entity, promptly

notify the entity as well as the parties, and inform the entity that it can challenge the Receiver’s
determination by filing a motion with the Court. Provided, however, that the Receiver may delay
providing such notice until the Receiver has established control of the nonparty entity and its
Assets and records, if the Receiver determines that notice to the entity or the parties before the
Receiver establishes control over the entity may result in the destruction of records, dissipation
of Assets, or any other obstruction of the Receiver’s control of the entity; and
W.

If in the Receiver’s judgment the business operations cannot be continued legally

and profitably, take all steps necessary to ensure that any of the Receivership Entities’ web pages
or websites relating to the activities alleged in the Complaint cannot be accessed by the public, or
are modified for consumer education and/or informational purposes, and take all steps necessary
to ensure that any telephone numbers associated with the Receivership Entities cannot be
accessed by the public, or are answered solely to provide consumer education or information
regarding the status of operations.

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XV.

RECEIVER’S REPORTS

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IT IS FURTHER ORDERED that the Receiver must:

26

A.

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File a verified report with the Court by October 28, 2017, and every six (6)

months following that report, to include the following information:

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1.

A summary of the Receiver’s operations;

2

2.

An inventory of the assets and their appraised value;

3.

A schedule of all the Receiver’s receipts and disbursements;

4.

A list of all known creditors with their addresses and the amounts of their

5.

The steps the Receiver intends to take in the future to protect receivership

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claims;

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Assets, recover receivership Assets from third parties, and adjust receivership liabilities;

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6.

the Receivership, or for changes to the Receivership, and the reasons for the
recommendations; and

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7.

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The Receiver’s recommendation for a continuation or discontinuation of

Any other matters which the Receiver believes should be brought to the

Court’s attention.
XVI. TRANSFER OF RECEIVERSHIP PROPERTY TO RECEIVER

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IT IS FURTHER ORDERED that Defendants and any other person with possession,

17

custody, or control of property of, or records relating to, the Receivership Entities shall, upon

18

notice of this Order by personal service or otherwise, fully cooperate with and assist the Receiver

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in taking and maintaining possession, custody, or control of the Assets and Documents of the
Receivership Entities and immediately transfer or deliver to the Receiver possession, custody,
and control of, the following:

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A.

All Assets held by or for the benefit of the Receivership Entities;

24

B.

All Documents of or pertaining to the Receivership Entities;

25

C.

All computers, electronic devices, mobile devices and machines used to conduct

26

the business of the Receivership Entities;

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D.

All Assets and Documents belonging to other persons or entities whose interests

are under the direction, possession, custody, or control of the Receivership Entities;
E.

All available insurance information for both existing and prior insurance policies.

This includes all applications, policies, riders, correspondence, endorsements, claims and other
information. The Receivership Entities are ordered to : (1) advise the insurance agent(s) of this

7

Order in writing; (2) designate all authority over the policies to be held by the Receiver pursuant

8

to this Order; and (3) take no action with regarding to terminating or modifying existing

9

insurance policies; and

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F.

All keys, codes, user names and passwords necessary to gain or to secure access

to any Assets or Documents of or pertaining to the Receivership Entities, including access to
their business premises, means of communication, accounts, computer systems (onsite and
remote), Electronic Data Hosts, or other property.
In the event that any person or entity fails to deliver or transfer any Asset or Document,

16

or otherwise fails to comply with any provision of this Section, the Receiver may file an

17

Affidavit of Non-Compliance regarding the failure and a motion seeking compliance or a

18

contempt citation.

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XVII. PROVISION OF INFORMATION TO RECEIVER
IT IS FURTHER ORDERED that, to the extent not already completed pursuant to the
TRO, Defendants shall immediately provide to the Receiver:
A.

A list of all Assets and accounts of the Receivership Entities that are held in any

24

name other than the name of a Receivership Entity, or by any person or entity other than a

25

Receivership Entity;

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B.

active concert and participation with the Receivership Entities, or who have been associated or
done business with the Receivership Entities; and
C.

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A description of any documents covered by attorney-client privilege or attorney

work product, including files where such documents are likely to be located, authors or recipients
of such documents, and search terms likely to identify such electronic documents.
XVIII.

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A list of all agents, employees, officers, attorneys, servants and those persons in

COOPERATION WITH THE RECEIVER

IT IS FURTHER ORDERED that Defendants; Receivership Entities; Defendants’ or
Receivership Entities’ officers, agents, employees, and attorneys, all other persons in active
concert or participation with any of them, and any other person with possession, custody, or
control of property of or records relating to the Receivership Entities who receive actual notice

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of this Order shall fully cooperate with and assist the Receiver.
A.

This cooperation and assistance shall include, but is not limited to, providing

16

information to the Receiver that the Receiver deems necessary to exercise the authority and

17

discharge the responsibilities of the Receiver under this Order; providing any keys, codes, user

18

names and passwords required to access any computers, electronic devices, mobile devices, and

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machines (onsite or remotely) and any cloud account (including specific method to access
account) or electronic file in any medium; advising all persons who owe money to any
Receivership Entity that all debts should be paid directly to the Receiver; and transferring funds

23

at the Receiver’s direction and producing records related to the Assets and sales of the

24

Receivership Entities.

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B.

If any Documents, computers, or electronic storage devices containing

information related to the business practices or finances of the Receivership Entities are at a
location other than those listed herein, including personal residence(s) of any Defendant, then,

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immediately upon receiving notice of this order, Defendants and Receivership Entities shall

2

produce to the Receiver all such Documents, computers, and electronic storage devices, along

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with any codes or passwords needed for access. In order to prevent the destruction of computer
data, upon service of this Order, any such computers or electronic storage devices shall be
powered down in the normal course of the operating system used on such devices and shall not
be powered up or used until produced for copying and inspection; and
C.

If any communications or records of any Receivership Entity are stored with an

9

Electronic Data Host, such Entity shall, immediately upon receiving notice of this order, provide

10

the Receiver with the username, passwords, and any other login credential needed to access the

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communications and records, and shall not attempt to access, or cause a third-party to attempt to
access, the communications or records.
XIX. NON-INTERFERENCE WITH THE RECEIVER

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IT IS FURTHER ORDERED that Defendants; Receivership Entities; Defendants’ or

16

Receivership Entities’ officers, agents, employees, attorneys, and all other persons in active

17

concert or participation with any of them, who receive actual notice of this Order; and any other

18

person served with a copy of this Order, are hereby preliminarily restrained and enjoined from

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directly or indirectly:
A.

Interfering with the Receiver’s efforts to manage, or take custody, control, or

possession of, the Assets or Documents subject to the receivership;

23

B.

Transacting any of the business of the Receivership Entities;

24

C.

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

25

liquidating, or otherwise disposing of any Assets owned, controlled, or in the possession or

26

custody of, or in which an interest is held or claimed by, the Receivership Entities; or

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1
2

D.

Refusing 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.

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XX.

STAY OF ACTIONS

IT IS FURTHER ORDERED that, except by leave of this Court, during the pendency
of the receivership ordered herein, Defendants, Defendants’ officers, agents, employees,
attorneys, and all other persons in active concert or participation with any of them, who receive

8

actual notice of this Order, and their corporations, subsidiaries, divisions, or affiliates, and all

9

investors, creditors, stockholders, lessors, customers and other persons seeking to establish or

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enforce any claim, right, or interest against or on behalf of Defendants, and all others acting for
or on behalf of such persons, are hereby enjoined from taking action that would interfere with the
exclusive jurisdiction of this Court over the Assets or Documents of the Receivership Entities,

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including, but not limited to:
A.

Filing or assisting in the filing of a petition for relief under the Bankruptcy Code,

16

11 U.S.C. § 101 et seq., or of any similar insolvency proceeding on behalf of the Receivership

17

Entities;

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B.

Commencing, prosecuting, or continuing a judicial, administrative, or other action

or proceeding against the Receivership Entities, including the issuance or employment of process
against the Receivership Entities, except that such actions may be commenced if necessary to toll
any applicable statute of limitations;
C.

Filing or enforcing any lien on any Asset of the Receivership Entities, taking or

24

attempting to take possession, custody, or control of any Asset of the Receivership Entities; or

25

attempting to foreclose, forfeit, alter, or terminate any interest in any Asset of the Receivership

26

Entities, whether such acts are part of a judicial proceeding, are acts of self-help, or otherwise;

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D.

Provided, however, that this Order does not stay: (1) the commencement or

continuation of a criminal action or proceeding; (2) the commencement or continuation of an
action or proceeding by a governmental unit to enforce such governmental unit’s police or
regulatory power; or (3) the enforcement of a judgment, other than a money judgment, obtained
in an action or proceeding by a governmental unit to enforce such governmental unit’s police or
regulatory power.
XXI. COMPENSATION OF RECEIVER
IT IS FURTHER ORDERED that the Receiver and all personnel hired by the Receiver
as herein authorized, including counsel to the Receiver and accountants, are entitled to
reasonable compensation for the performance of duties pursuant to this Order and for the cost of
actual out-of-pocket expenses incurred by them, from the Assets now held by, in the possession

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or control of, or which may be received by, the Receivership Entities. The Receiver shall file
with the Court and serve on the parties requests for the payment of such reasonable

16

compensation at the time of the filing of any report required by Section XV of this Order. The

17

Receiver shall not increase the hourly rates used as the bases for such fee applications without

18

prior approval of the Court.

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XXII. DISTRIBUTION OF ORDER BY DEFENDANTS
IT IS FURTHER ORDERED that, to the extent not already completed pursuant to the
TRO, Defendants shall immediately provide a copy of this Order to each affiliate, telemarketer,
marketer, sales entity, successor, assign, member, officer, director, employee, agent, independent

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contractor, client, attorney, spouse, subsidiary, division, and representative of any Defendant,

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and shall thereafter immediately provide Plaintiff and the Receiver with a sworn statement that

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this provision of the Order has been satisfied, which statement shall include the names, physical

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addresses, phone numbers, and email addresses of each such person or entity who received a

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copy of the Order. Furthermore, Defendants shall not take any action that would encourage

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officers, agents, members, directors, employees, salespersons, independent contractors,

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attorneys, subsidiaries, affiliates, successors, assigns or other persons or entities in active concert
or participation with them to disregard this Order or believe that they are not bound by its
provisions.
XXIII. SERVICE OF THIS ORDER
IT IS FURTHER ORDERED that copies of this Order may be served by any means,
including facsimile transmission, electronic mail or other electronic messaging, personal or
overnight delivery, U.S. Mail or FedEx, by agents and employees of Plaintiff, by any law
enforcement agency, or by private process server, upon any Defendant or any Person (including
any financial institution) that may have possession, custody, or control of any Asset or Document

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of any Defendant, or that may be subject to any provision of this Order pursuant to Rule 65(d)(2)
of the Federal Rules of Civil Procedure. For purposes of this Section, service upon any branch,
subsidiary, affiliate or office of any entity shall effect service upon the entire entity.
XXIV. CORRESPONDENCE AND SERVICE ON PLAINTIFF
IT IS FURTHER ORDERED that, for the purpose of this Order, all correspondence
and service of pleadings on Plaintiff shall be addressed to:
Sarah Waldrop
Michelle Schaefer
Mailstop CC-9528
600 Pennsylvania Ave., NW
Washington, DC 20580
202-326-3444
202-326-3197 (fax)
[e-mail]
[e-mail]

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XXV. RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for
all purposes.
IT IS SO ORDERED, this 1st day of September, 2017.

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____________________________________________

ANDREW P. GORDON
UNITED STATES DISTRICT JUDGE

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Proposed TRO Attachment A
Individual Financial Disclosure Form

FEDERAL TRADE COMMISSION
FINANCIAL STATEMENT OF INDIVIDUAL DEFENDANT
Definitions and Instructions:
1. Complete all items. Enter “None” or “N/A” (“Not Applicable”) in the first field only of any item that does not apply
to you. If you cannot fully answer a question, explain why.
2. “Dependents” include your spouse, live-in companion, dependent children, or any other person, whom you or your
spouse (or your children’s other parent) claimed or could have claimed as a dependent for tax purposes at any
time during the past five years.
3. “Assets” and “Liabilities” include ALL assets and liabilities, located within the United States or any foreign country
or territory, whether held individually or jointly and whether held by you, your spouse, or your dependents, or held
by others for the benefit of you, your spouse, or your dependents.
4. Attach continuation pages as needed. On the financial statement, state next to the Item number that the Item is
being continued. On the continuation page(s), identify the Item number(s) being continued.
5. Type or print legibly.
6. Initial each page in the space provided in the lower right corner.
7. Sign and date the completed financial statement on the last page.

Penalty for False Information:
Federal law provides that any person may be imprisoned for not more than five years, fined, or both, if such person:
(1) “in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the
United States, knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or devise a material fact;
makes any materially false, fictitious or fraudulent statement or representation; or makes or uses any false writing or
document knowing the same to contain any materially false, fictitious or fraudulent statement or entry” (18 U.S.C. § 1001);
(2) “in any . . . statement under penalty of perjury as permitted under section 1746 of title 28, United States Code,
willfully subscribes as true any material matter which he does not believe to be true” (18 U.S.C. § 1621); or
(3) “in any ( . . . statement under penalty of perjury as permitted under section 1746 of title 28, United States
Code) in any proceeding before or ancillary to any court or grand jury of the United States knowingly makes any false
material declaration or makes or uses any other information . . . knowing the same to contain any false material
declaration” (18 U.S.C. § 1623).
For a felony conviction under the provisions cited above, federal law provides that the fine may be not more than the
greater of (i) $250,000 for an individual or $500,000 for a corporation, or (ii) if the felony results in pecuniary gain to any
person or pecuniary loss to any person other than the defendant, the greater of twice the gross gain or twice the gross
loss. 18 U.S.C. § 3571.

Federal Trade Commission Financial Statement of Individual Defendant

BACKGROUND INFORMATION
Item 1. Information About You
Full Name

Social Security No.

Current Address of Primary Residence

Driver’s License No.

State Issued

Phone Numbers
Home: (
)
Fax: (
)
Rent

Own

From (Date):

Date of Birth:

/
/
(mm/dd/yyyy)
Place of Birth

E-Mail Address

/
/
(mm/dd/yyyy)

Internet Home Page

Previous Addresses for past five years (if required, use additional pages at end of form)
Address

From:

/
/
(mm/dd/yyyy)

Rent
Address

From:

From:

Rent

/
/
(mm/dd/yyyy)

Own

/

Rent
Address

Until:

/

Until:

/

/

Until:

/

/

Own

/

/

Own

Identify any other name(s) and/or social security number(s) you have used, and the time period(s) during which they
were used:

Item 2. Information About Your Spouse or Live-In Companion
Spouse/Companion's Name

Social Security No.

Address (if different from yours)

Phone Number

(

Date of Birth
/
/
(mm/dd/yyyy)
Place of Birth

)
Rent

/
/
(mm/dd/yyyy)
Identify any other name(s) and/or social security number(s) you have used, and the time period(s) during which they were used:

Employer’s Name and Address

Own

From (Date):

Job Title
Years in Present Job

Annual Gross Salary/Wages
$

Item 3. Information About Your Previous Spouse
Name and Address

Social Security No.
Date of Birth
/
/
(mm/dd/yyyy)

Item 4. Contact Information (name and address of closest living relative other than your spouse)
Name and Address

Phone Number

(

)

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Federal Trade Commission Financial Statement of Individual Defendant

Item 5. Information About Dependents (whether or not they reside with you)
Name and Address

Social Security No.

Date of Birth
/
/
(mm/dd/yyyy)

Relationship
Name and Address

Social Security No.

Date of Birth
/
/
(mm/dd/yyyy)

Relationship
Name and Address

Date of Birth
/
/
(mm/dd/yyyy)

Social Security No.
Relationship

Name and Address

Date of Birth
/
/
(mm/dd/yyyy)

Social Security No.
Relationship

Item 6. Employment Information/Employment Income
Provide the following information for this year-to-date and for each of the previous five full years, for each business entity of which you were a director,
officer, member, partner, employee (including self-employment), agent, owner, shareholder, contractor, participant or consultant at any time during that
period. “Income” includes, but is not limited to, any salary, commissions, distributions, draws, consulting fees, loans, loan payments, dividends,
royalties, and benefits for which you did not pay (e.g., health insurance premiums, automobile lease or loan payments) received by you or anyone else
on your behalf.
Company Name and Address

Dates Employed

Income Received: Y-T-D & 5 Prior Yrs.
Year

From (Month/Year)
/
Ownership Interest?

From (Month/Year)
/

Yes

To (Month/Year)
/

Income

20

$
$

To (Month/Year)
/

No

Positions Held

$
$

/

/

$

/

/

$

Company Name and Address

Dates Employed

Income Received: Y-T-D & 5 Prior Yrs.
Year

From (Month/Year)
/
Ownership Interest?

From (Month/Year)
/

Yes

To (Month/Year)
/

Income

20

$
$

To (Month/Year)
/

No

Positions Held

$
$

/

/

$

/

/

$

Company Name and Address

Dates Employed

Income Received: Y-T-D & 5 Prior Yrs.
Year

From (Month/Year)
/
Ownership Interest?
Positions Held

Yes

To (Month/Year)
/

From (Month/Year)
/

To (Month/Year)
/

No

Income

20

$
$
$
$

/

/

$

/

/

$

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Federal Trade Commission Financial Statement of Individual Defendant

Item 7. Pending Lawsuits Filed By or Against You or Your Spouse
List all pending lawsuits that have been filed by or against you or your spouse in any court or before an administrative agency in the United States or in
any foreign country or territory. Note: At Item 12, list lawsuits that resulted in final judgments or settlements in your favor. At Item 21, list lawsuits that
resulted in final judgments or settlements against you.
Status or
Nature of
Relief Requested
Caption of Proceeding
Court or Agency and Location
Case No.
Disposition
Proceeding

Item 8. Safe Deposit Boxes
List all safe deposit boxes, located within the United States or in any foreign country or territory, whether held individually or jointly and whether held by
you, your spouse, or any of your dependents, or held by others for the benefit of you, your spouse, or any of your dependents.
Name of Owner(s)

Name & Address of Depository Institution

Box No.

Contents

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Federal Trade Commission Financial Statement of Individual Defendant

FINANCIAL INFORMATION
REMINDER: When an item asks for information regarding your “assets” and “liabilities” include ALL assets and liabilities, located within
the United States or in any foreign country or territory, or institution, whether held individually or jointly, and whether held by you, your
spouse, or any of your dependents, or held by others for the benefit of you, your spouse, or any of your dependents. In addition, provide
all documents requested in Item 24 with your completed Financial Statement.

ASSETS
Item 9. Cash, Bank, and Money Market Accounts
List cash on hand (as opposed to cash in bank accounts or other financial accounts) and all bank accounts, money market accounts, or other financial
accounts, including but not limited to checking accounts, savings accounts, and certificates of deposit. The term “cash on hand” includes but is not
limited to cash in the form of currency, uncashed checks, and money orders.
a. Amount of Cash on Hand $
b. Name on Account

Form of Cash on Hand
Name & Address of Financial Institution

Account No.

Current Balance
$

$

$

$

$

Item 10. Publicly Traded Securities
List all publicly traded securities, including but not limited to, stocks, stock options, corporate bonds, mutual funds, U.S. government securities (including
but not limited to treasury bills and treasury notes), and state and municipal bonds. Also list any U.S. savings bonds.
Owner of Security

Issuer

Broker House, Address

Broker Account No.
Current Fair Market Value
$

Owner of Security

Issuer

Broker House, Address

Type of Security

No. of Units Owned

Loan(s) Against Security
$

Broker Account No.
Current Fair Market Value
$

Owner of Security

Issuer

Broker House, Address

Type of Security

No. of Units Owned

Loan(s) Against Security
$

Broker Account No.
Current Fair Market Value
$

Type of Security

No. of Units Owned

Loan(s) Against Security
$

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Federal Trade Commission Financial Statement of Individual Defendant

Item 11. Non-Public Business and Financial Interests
List all non-public business and financial interests, including but not limited to any interest in a non-public corporation, subchapter-S corporation, limited
liability corporation (“LLC”), general or limited partnership, joint venture, sole proprietorship, international business corporation or personal investment
corporation, and oil or mineral lease.
Entity’s Name & Address

Type of Business or Financial
Interest (e.g., LLC, partnership)

Owner
(e.g., self, spouse)

Ownership
%

If Officer, Director, Member
or Partner, Exact Title

Item 12. Amounts Owed to You, Your Spouse, or Your Dependents
Debtor’s Name & Address

Date Obligation
Incurred (Month/Year)
/
Current Amount Owed
$

Original Amount Owed
$

Nature of Obligation (if the result of a final court
judgment or settlement, provide court name
and docket number)

Payment Schedule
$

Debtor’s Telephone

Debtor’s Relationship to You

Debtor’s Name & Address

Date Obligation
Incurred (Month/Year)
/
Current Amount Owed
$

Debtor’s Telephone

Original Amount Owed
$

Nature of Obligation (if the result of a final court
judgment or settlement, provide court name
and docket number)

Payment Schedule
$

Debtor’s Relationship to You

Item 13. Life Insurance Policies
List all life insurance policies (including endowment policies) with any cash surrender value.
Insurance Company’s Name, Address, & Telephone No.
Beneficiary

Policy No.

Insured

Beneficiary

Policy No.

Insured

Insurance Company’s Name, Address, & Telephone No.

Loans Against Policy
$

Loans Against Policy
$

Face Value
$
Surrender Value
$
Face Value
$
Surrender Value
$

Item 14. Deferred Income Arrangements
List all deferred income arrangements, including but not limited to, deferred annuities, pensions plans, profit-sharing plans, 401(k) plans, IRAs, Keoghs,
other retirement accounts, and college savings plans (e.g., 529 Plans).
Trustee or Administrator’s Name, Address & Telephone No.

Name on Account
Date Established
/
/
(mm/dd/yyyy)

Trustee or Administrator’s Name, Address & Telephone No.

Account No.
Type of Plan

Surrender Value before
Taxes and Penalties
$
Account No.

Type of Plan

Surrender Value before
Taxes and Penalties
$

Name on Account
Date Established
/
/

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Federal Trade Commission Financial Statement of Individual Defendant

Item 15. Pending Insurance Payments or Inheritances
List any pending insurance payments or inheritances owed to you.
Type

Amount Expected

Date Expected (mm/dd/yyyy)

$

/

/

$

/

/

$

/

/

Item 16. Vehicles
List all cars, trucks, motorcycles, boats, airplanes, and other vehicles.
Vehicle Type
Make

Registration State & No.

Purchase Price
$
Account/Loan No.

Model

Address of Vehicle’s Location

Lender’s Name and Address

Registered Owner’s Name

Vehicle Type

Year

Make

Registration State & No.

Purchase Price
$
Account/Loan No.

Model

Address of Vehicle’s Location

Registered Owner’s Name

Original Loan Amount
$
Current Value
$

Current Balance
$
Monthly Payment
$

Original Loan Amount
$
Current Value
$

Current Balance
$
Monthly Payment
$

Lender’s Name and Address

Vehicle Type

Year

Registered Owner’s Name

Make

Registration State & No.

Purchase Price
$
Account/Loan No.

Model

Address of Vehicle’s Location

Lender’s Name and Address

Registered Owner’s Name

Vehicle Type

Year

Year

Make

Registration State & No.

Purchase Price
$
Account/Loan No.

Model

Address of Vehicle’s Location

Original Loan Amount
$
Current Value
$

Current Balance
$
Monthly Payment
$

Original Loan Amount
$
Current Value
$

Current Balance
$
Monthly Payment
$

Lender’s Name and Address

Item 17. Other Personal Property
List all other personal property not listed in Items 9-16 by category, whether held for personal use, investment or any other reason, including but not
limited to coins, stamps, artwork, gemstones, jewelry, bullion, other collectibles, copyrights, patents, and other intellectual property.
Property Category
(e.g., artwork, jewelry)

Name of Owner

Property Location

Acquisition Cost

Current Value

$

$

$

$

$

$

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Federal Trade Commission Financial Statement of Individual Defendant

Item 18. Real Property
List all real property interests (including any land contract)
Property’s Location

Type of Property

Acquisition Date (mm/dd/yyyy)
/
/
Lender’s Name and Address

Purchase Price
$

Name(s) on Title or Contract and Ownership Percentages

Current Value
$
Loan or Account No.

Other Mortgage Loan(s) (describe)

Property’s Location

Purchase Price
$

Current Balance On First Mortgage or
Contract
$
Monthly Payment
$
Rental Unit

Monthly Payment
$
Monthly Rent Received
Current Balance
$
$
Name(s) on Title or Contract and Ownership Percentages

Type of Property

Acquisition Date (mm/dd/yyyy)
/
/
Lender’s Name and Address

Basis of Valuation

Current Value
$
Loan or Account No.

Other Mortgage Loan(s) (describe)

Basis of Valuation
Current Balance On First Mortgage or
Contract
$
Monthly Payment
$
Rental Unit

Monthly Payment
$
Current Balance
$

Monthly Rent Received
$

LIABILITIES
Item 19. Credit Cards
List each credit card account held by you, your spouse, or your dependents, and any other credit cards that you, your spouse, or your dependents use,
whether issued by a United States or foreign financial institution.
Name of Credit Card (e.g., Visa,
MasterCard, Department Store)

Account No.

Name(s) on Account

Current Balance
$
$
$
$
$

Item 20. Taxes Payable
List all taxes, such as income taxes or real estate taxes, owed by you, your spouse, or your dependents.
Type of Tax

Amount Owed

Year Incurred

$
$
$

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Federal Trade Commission Financial Statement of Individual Defendant

Item 21. Other Amounts Owed by You, Your Spouse, or Your Dependents
List all other amounts, not listed elsewhere in this financial statement, owed by you, your spouse, or your dependents.
Lender/Creditor’s Name, Address, and Telephone No.

Nature of Debt (if the result of a court judgment or settlement, provide court name and docket
number)

Lender/Creditor’s Relationship to You

Date Liability Was Incurred
Original Amount Owed
Current Amount Owed
Payment Schedule
/
/
$
$
(mm/dd/yyyy)
Lender/Creditor’s Name, Address, and Telephone No. Nature of Debt (if the result of a court judgment or settlement, provide court name and docket
number)

Lender/Creditor’s Relationship to You

Date Liability Was Incurred
/
/
(mm/dd/yyyy)

Current Amount Owed
$

Original Amount Owed
$

Payment Schedule

OTHER FINANCIAL INFORMATION
Item 22. Trusts and Escrows
List all funds and other assets that are being held in trust or escrow by any person or entity for you, your spouse, or your dependents. Include any legal
retainers being held on your behalf by legal counsel. Also list all funds or other assets that are being held in trust or escrow by you, your spouse, or your
dependents, for any person or entity.
Trustee or Escrow Agent’s Name & Address

Date Established
(mm/dd/yyyy)
/
/

Grantor

Beneficiaries

Present Market Value of Assets*
$

/

/

$

/

/

$

*If the market value of any asset is unknown, describe the asset and state its cost, if you know it.

Item 23. Transfers of Assets
List each person or entity to whom you have transferred, in the aggregate, more than $5,000 in funds or other assets during the previous five years by
loan, gift, sale, or other transfer (exclude ordinary and necessary living and business expenses paid to unrelated third parties). For each such person or
entity, state the total amount transferred during that period.
Transferee’s Name, Address, & Relationship

Property Transferred

Aggregate Value*

Transfer Date
(mm/dd/yyyy)

$

/

/

$

/

/

$

/

Type of Transfer
(e.g., Loan, Gift)

/

*If the market value of any asset is unknown, describe the asset and state its cost, if you know it.

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Federal Trade Commission Financial Statement of Individual Defendant

Item 24. Document Requests
Provide copies of the following documents with your completed Financial Statement.

Federal tax returns filed during the last three years by or on behalf of you, your spouse, or your dependents.
All applications for bank loans or other extensions of credit (other than credit cards) that you, your spouse, or your
dependents have submitted within the last two years, including by obtaining copies from lenders if necessary.
Item 9

For each bank account listed in Item 9, all account statements for the past 3 years.

Item 11

For each business entity listed in Item 11, provide (including by causing to be generated from accounting records) the
most recent balance sheet, tax return, annual income statement, the most recent year-to-date income statement, and all
general ledger files from account records.

Item 17

All appraisals that have been prepared for any property listed in Item 17, including appraisals done for insurance
purposes. You may exclude any category of property where the total appraised value of all property in that category is
less than $2,000.

Item 18

All appraisals that have been prepared for real property listed in Item 18.

Item 21

Documentation for all debts listed in Item 21.

Item 22

All executed documents for any trust or escrow listed in Item 22. Also provide any appraisals, including insurance
appraisals that have been done for any assets held by any such trust or in any such escrow.

SUMMARY FINANCIAL SCHEDULES
Item 25. Combined Balance Sheet for You, Your Spouse, and Your Dependents
Assets

Liabilities

Cash on Hand (Item 9)
Funds Held in Financial Institutions (Item 9)
U.S. Government Securities (Item 10)
Publicly Traded Securities (Item 10)
Non-Public Business and Financial Interests (Item 11)
Amounts Owed to You (Item 12)
Life Insurance Policies (Item 13)
Deferred Income Arrangements (Item 14)
Vehicles (Item 16)
Other Personal Property (Item 17)
Real Property (Item 18)
Other Assets (Itemize)

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Total Assets

Loans Against Publicly Traded Securities (Item 10)
Vehicles - Liens (Item 16)
Real Property – Encumbrances (Item 18)
Credit Cards (Item 19)
Taxes Payable (Item 20)
Amounts Owed by You (Item 21)
Other Liabilities (Itemize)

Total Liabilities

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Item 26. Combined Current Monthly Income and Expenses for You, Your Spouse, and Your Dependents
Provide the current monthly income and expenses for you, your spouse, and your dependents. Do not include credit card payments separately; rather,
include credit card expenditures in the appropriate categories.
Income (State source of each item)
Salary - After Taxes
Source:
Fees, Commissions, and Royalties
Source:
Interest
Source:
Dividends and Capital Gains
Source:
Gross Rental Income
Source:
Profits from Sole Proprietorships
Source:
Distributions from Partnerships, S-Corporations,
and LLCs
Source:

$
$
$
$
$
$

Expenses
Mortgage or Rental Payments for Residence(s)
Property Taxes for Residence(s)
Rental Property Expenses, Including Mortgage Payments, Taxes,
and Insurance
Car or Other Vehicle Lease or Loan Payments
Food Expenses
Clothing Expenses

$
$
$
$
$
$

Utilities
$

$

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Federal Trade Commission Financial Statement of Individual Defendant

Item 26. Combined Current Monthly Income and Expenses for You, Your Spouse, and Your Dependents (cont.)
Distributions from Trusts and Estates
Source:
Distributions from Deferred Income Arrangements
Source:
Social Security Payments
Alimony/Child Support Received
Gambling Income

$
$
$
$
$

Medical Expenses, Including Insurance
Other Insurance Premiums
Other Transportation Expenses

$
$
$
$
$
$

$
$
$
$

$

Other Expenses (Itemize)

Other Income (Itemize)

Total Income

$

Total Expenses

$

ATTACHMENTS
Item 27. Documents Attached to this Financial Statement
List all documents that are being submitted with this financial statement. For any Item 24 documents that are not attached, explain why.
Item No. Document Relates To

Description of Document

I am submitting this financial statement with the understanding that it may affect action by the Federal Trade
Commission or a federal court. I have used my best efforts to obtain the information requested in this statement. The
responses I have provided to the items above are true and contain all the requested facts and information of which I have
notice or knowledge. I have provided all requested documents in my custody, possession, or control. I know of the
penalties for false statements under 18 U.S.C. § 1001, 18 U.S.C. § 1621, and 18 U.S.C. § 1623 (five years imprisonment
and/or fines). I certify under penalty of perjury under the laws of the United States that the foregoing is true and correct.

Executed on:
_______________
(Date)

___________________________________
Signature

10 of 10

Federal Trade Commission Financial Statement of Individual Defendant

Proposed TRO Attachment B
Entity Financial Disclosure Form

FEDERAL TRADE COMMISSION
FINANCIAL STATEMENT OF CORPORATE DEFENDANT

Instructions:
1.

Complete all items. Enter “None” or "N/A" (“Not Applicable”) where appropriate. If you cannot fully answer a
question, explain why.

2.

The font size within each field will adjust automatically as you type to accommodate longer responses.

3.

In completing this financial statement, “the corporation” refers not only to this corporation but also to each of its
predecessors that are not named defendants in this action.

4.

When an Item asks for information about assets or liabilities “held by the corporation,” include ALL such assets
and liabilities, located within the United States or elsewhere, held by the corporation or held by others for the
benefit of the corporation.

5.

Attach continuation pages as needed. On the financial statement, state next to the Item number that the Item is
being continued. On the continuation page(s), identify the Item number being continued.

6.

Type or print legibly.

7.

An officer of the corporation must sign and date the completed financial statement on the last page and initial
each page in the space provided in the lower right corner.

Penalty for False Information:
Federal law provides that any person may be imprisoned for not more than five years, fined, or both, if such person:
(1) “in any matter within the jurisdiction of any department or agency of the United States knowingly and
willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false,
fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the
same to contain any false, fictitious or fraudulent statement or entry” (18 U.S.C. § 1001);
(2) “in any . . . statement under penalty of perjury as permitted under section 1746 of title 28, United States Code,
willfully subscribes as true any material matter which he does not believe to be true” (18 U.S.C. § 1621); or
(3) “in any (. . . statement under penalty of perjury as permitted under section 1746 of title 28, United States
Code) in any proceeding before or ancillary to any court or grand jury of the United States knowingly makes any
false material declaration or makes or uses any other information . . . knowing the same to contain any false
material declaration.” (18 U.S.C. § 1623)
For a felony conviction under the provisions cited above, federal law provides that the fine may be not more than the
greater of (i) $250,000 for an individual or $500,000 for a corporation, or (ii) if the felony results in pecuniary gain to any
person or pecuniary loss to any person other than the defendant, the greater of twice the gross gain or twice the gross loss.
18 U.S.C. § 3571.

BACKGROUND INFORMATION

Item 1.

General Information

Corporation’s Full Name ___________________________________________________________________________
Primary Business Address ______________________________________________________ From (Date) _________
Telephone No. _____________________________ Fax No. _____________________________
E-Mail Address________________________ Internet Home Page________________________
All other current addresses & previous addresses for past five years, including post office boxes and mail drops:
Address____________________________________________________________ From/Until____________________
Address____________________________________________________________ From/Until____________________
Address____________________________________________________________ From/Until____________________
All predecessor companies for past five years:
Name & Address _________________________________________________________ From/Until ______________
Name & Address _________________________________________________________ From/Until ______________
Name & Address _________________________________________________________ From/Until ______________

Item 2.

Legal Information

Federal Taxpayer ID No. _________________________ State & Date of Incorporation _________________________
State Tax ID No. ____________________ State ________________ Profit or Not For Profit _____________________
Corporation’s Present Status: Active ________________ Inactive _______________ Dissolved __________________
If Dissolved: Date dissolved _________________________ By Whom ______________________________________
Reasons _________________________________________________________________________________________
Fiscal Year-End (Mo./Day) ________________ Corporation’s Business Activities _____________________________

Item 3.

Registered Agent

Name of Registered Agent __________________________________________________________________________
Address __________________________________________________________ Telephone No. __________________

Page 2

Initials __________

Item 4.

Principal Stockholders

List all persons and entities that own at least 5% of the corporation’s stock.
% Owned

Name & Address

_________________________________________________________________________________ ______________
_________________________________________________________________________________ ______________
_________________________________________________________________________________ ______________
_________________________________________________________________________________ ______________

Item 5.

Board Members

List all members of the corporation’s Board of Directors.
Name & Address

% Owned

Term (From/Until)

____________________________________________________________________ __________ _________________
____________________________________________________________________ __________ _________________
____________________________________________________________________ __________ _________________
____________________________________________________________________ __________ _________________
____________________________________________________________________ __________ _________________

Item 6.

Officers

List all of the corporation’s officers, including de facto officers (individuals with significant management responsibility
whose titles do not reflect the nature of their positions).
Name & Address

% Owned

_______________________________________________________________________________ ________________
_______________________________________________________________________________ ________________
_______________________________________________________________________________ ________________
_______________________________________________________________________________ ________________
_______________________________________________________________________________ ________________

Page 3

Initials __________

Item 7.

Businesses Related to the Corporation

List all corporations, partnerships, and other business entities in which this corporation has an ownership interest.
Name & Address

Business Activities

% Owned

___________________________________________________________________ ___________________ _________
___________________________________________________________________ ___________________ _________
___________________________________________________________________ ___________________ _________
State which of these businesses, if any, has ever transacted business with the corporation _______________________
________________________________________________________________________________________________

Item 8.

Businesses Related to Individuals

List all corporations, partnerships, and other business entities in which the corporation’s principal stockholders, board
members, or officers (i.e., the individuals listed in Items 4 - 6 above) have an ownership interest.
Business Name & Address

Individual’s Name

Business Activities

% Owned

__________________ __________________________________________________ __________________ ________
__________________ __________________________________________________ __________________ ________
__________________ __________________________________________________ __________________ ________
State which of these businesses, if any, have ever transacted business with the corporation _______________________
________________________________________________________________________________________________

Item 9.

Related Individuals

List all related individuals with whom the corporation has had any business transactions during the three previous fiscal
years and current fiscal year-to-date. A “related individual” is a spouse, sibling, parent, or child of the principal
stockholders, board members, and officers (i.e., the individuals listed in Items 4 - 6 above).
Name and Address

Relationship

Business Activities

_________________________________________________________ _________________ ______________________
_________________________________________________________ _________________ ______________________
_________________________________________________________ _________________ ______________________

Page 4

Initials __________

Item 10.

Outside Accountants

List all outside accountants retained by the corporation during the last three years.
Firm Name

Name

Address

CPA/PA?

____________________ ______________________ ________________________________________ ____________
____________________ ______________________ ________________________________________ ____________
____________________ ______________________ ________________________________________ ____________
____________________ ______________________ ________________________________________ ____________
____________________ ______________________ ________________________________________ ____________

Item 11.

Corporation’s Recordkeeping

List all individuals within the corporation with responsibility for keeping the corporation’s financial books and records for
the last three years.
Position(s) Held

Name, Address, & Telephone Number

____________________________________________________________________________ ___________________
____________________________________________________________________________ ___________________
____________________________________________________________________________ ___________________
____________________________________________________________________________ ___________________

Item 12.

Attorneys

List all attorneys retained by the corporation during the last three years.
Name

Firm Name

Address

____________________ ___________________________ ________________________________________________
____________________ ___________________________ ________________________________________________
____________________ ___________________________ ________________________________________________
____________________ ___________________________ ________________________________________________
____________________ ___________________________ ________________________________________________

Page 5

Initials __________

Item 13.

Pending Lawsuits Filed by the Corporation

List all pending lawsuits that have been filed by the corporation in court or before an administrative agency. (List
lawsuits that resulted in final judgments or settlements in favor of the corporation in Item 25).
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________

Page 6

Initials __________

Item 14.

Current Lawsuits Filed Against the Corporation

List all pending lawsuits that have been filed against the corporation in court or before an administrative agency. (List
lawsuits that resulted in final judgments, settlements, or orders in Items 26 - 27).
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address___________________________________________________________________________
Docket No._________________ Relief Requested____________________ Nature of Lawsuit____________________
____________________________________ Status______________________________________________________

Page 7

Initials __________

Item 15.

Bankruptcy Information

List all state insolvency and federal bankruptcy proceedings involving the corporation.
Commencement Date _________________ Termination Date _________________ Docket No. __________________
If State Court: Court & County _______________________ If Federal Court: District __________________________
Disposition ______________________________________________________________________________________

Item 16.

Safe Deposit Boxes

List all safe deposit boxes, located within the United States or elsewhere, held by the corporation, or held by others for the
benefit of the corporation. On a separate page, describe the contents of each box.
Owner’s Name

Name & Address of Depository Institution

Box No.

__________________ ___________________________________________________________________ __________
__________________ ___________________________________________________________________ __________
__________________ ___________________________________________________________________ __________
__________________ ___________________________________________________________________ __________
__________________ ___________________________________________________________________ __________

FINANCIAL INFORMATION
REMINDER: When an Item asks for information about assets or liabilities “held by the corporation,” include
ALL such assets and liabilities, located within the United States or elsewhere, held by the corporation or held by
others for the benefit of the corporation.
Item 17.

Tax Returns

List all federal and state corporate tax returns filed for the last three complete fiscal years. Attach copies of all returns.
Federal/
State/Both

Tax Year

Tax Due
Federal

Tax Paid
Federal

Tax Due
State

Tax Paid
State

Preparer’s Name

___________ __________ $_________ $_________ $__________ $__________ ______________________________
___________ __________ $_________ $_________ $__________ $__________ ______________________________
___________ __________ $_________ $_________ $__________ $__________ ______________________________

Page 8

Initials __________

Item 18.

Financial Statements

List all financial statements that were prepared for the corporation’s last three complete fiscal years and for the current
fiscal year-to-date. Attach copies of all statements, providing audited statements if available.
Year

Balance Sheet

Profit & Loss Statement

Cash Flow Statement Changes in Owner’s Equity Audited?

_________ _____________ ______________________ __________________ _______________________ ________
_________ _____________ ______________________ __________________ _______________________ ________
_________ _____________ ______________________ __________________ _______________________ ________
_________ _____________ ______________________ __________________ _______________________ ________
Item 19.

Financial Summary

For each of the last three complete fiscal years and for the current fiscal year-to-date for which the corporation has not
provided a profit and loss statement in accordance with Item 18 above, provide the following summary financial
information.
Current Year-to-Date

1 Year Ago

2 Years Ago

3 Years Ago

Gross Revenue

$_________________

$_______________

$_______________

$_______________

Expenses

$_________________

$_______________

$_______________

$_______________

Net Profit After Taxes

$_________________

$_______________

$_______________

$_______________

Payables

$_________________

Receivables

$_________________

Item 20.

Cash, Bank, and Money Market Accounts

List cash and all bank and money market accounts, including but not limited to, checking accounts, savings accounts, and
certificates of deposit, held by the corporation. The term “cash” includes currency and uncashed checks.
Cash on Hand $_________________________ Cash Held for the Corporation’s Benefit $_______________________
Current
Balance
_____________________________________ _______________________________ ______________ $___________
Name & Address of Financial Institution

Signator(s) on Account

Account No.

_____________________________________ _______________________________ ______________ $___________
_____________________________________ _______________________________ ______________ $___________
_____________________________________ _______________________________ ______________ $___________

Page 9

Initials __________

Item 21.

Government Obligations and Publicly Traded Securities

List all U.S. Government obligations, including but not limited to, savings bonds, treasury bills, or treasury notes, held by
the corporation. Also list all publicly traded securities, including but not limited to, stocks, stock options, registered and
bearer bonds, state and municipal bonds, and mutual funds, held by the corporation.
Issuer _________________________________ Type of Security/Obligation __________________________________
No. of Units Owned __________ Current Fair Market Value $__________________ Maturity Date _______________
Issuer _________________________________ Type of Security/Obligation __________________________________
No. of Units Owned __________ Current Fair Market Value $__________________ Maturity Date _______________

Item 22.

Real Estate

List all real estate, including leaseholds in excess of five years, held by the corporation.
Type of Property________________________________ Property’s Location__________________________________
Name(s) on Title and Ownership Percentages___________________________________________________________
Current Value $____________________ Loan or Account No. __________________________
Lender’s Name and Address_________________________________________________________________________
Current Balance On First Mortgage $_______________ Monthly Payment $______________
Other Loan(s) (describe)____________________________________________ Current Balance $_________________
Monthly Payment $__________________ Rental Unit?_________________ Monthly Rent Received $_____________

Type of Property________________________________ Property’s Location__________________________________
Name(s) on Title and Ownership Percentages___________________________________________________________
Current Value $____________________ Loan or Account No. __________________________
Lender’s Name and Address_________________________________________________________________________
Current Balance On First Mortgage $_______________ Monthly Payment $______________
Other Loan(s) (describe)____________________________________________ Current Balance $_________________
Monthly Payment $__________________ Rental Unit?_________________ Monthly Rent Received $_____________

Page 10

Initials __________

Item 23.

Other Assets

List all other property, by category, with an estimated value of $2,500 or more, held by the corporation, including but not
limited to, inventory, machinery, equipment, furniture, vehicles, customer lists, computer software, patents, and other
intellectual property.
Property Category

Property Location

Acquisition
Cost

Current
Value

____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________
____________________________ _____________________________________________ $__________ $_________

Item 24.

Trusts and Escrows

List all persons and other entities holding funds or other assets that are in escrow or in trust for the corporation.
Trustee or Escrow Agent’s
Name & Address

Description and Location of Assets

Present Market
Value of Assets

______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________
______________________________________ _______________________________________ $_________________

Page 11

Initials __________

Item 25.

Monetary Judgments and Settlements Owed To the Corporation

List all monetary judgments and settlements, recorded and unrecorded, owed to the corporation.
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________

Item 26.

Monetary Judgments and Settlements Owed By the Corporation

List all monetary judgments and settlements, recorded and unrecorded, owed by the corporation.
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit_______________________________________ Date______________ Amount $______________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________
Opposing Party’s Name & Address___________________________________________________________________
Court’s Name & Address____________________________________________________ Docket No._____________
Nature of Lawsuit______________________________ Date of Judgment________________ Amount $____________

Page 12

Initials __________

Item 27.

Government Orders and Settlements

List all existing orders and settlements between the corporation and any federal or state government entities.
Name of Agency ___________________________________________ Contact Person __________________________
Address _____________________________________________________________ Telephone No. _______________
Agreement Date ______________ Nature of Agreement __________________________________________________

Item 28.

Credit Cards

List all of the corporation’s credit cards and store charge accounts and the individuals authorized to use them.
Name of Credit Card or Store

Names of Authorized Users and Positions Held

__________________________________________ _____________________________________________________
__________________________________________ _____________________________________________________
__________________________________________ _____________________________________________________
__________________________________________ _____________________________________________________
__________________________________________ _____________________________________________________

Item 29.

Compensation of Employees

List all compensation and other benefits received from the corporation by the five most highly compensated employees,
independent contractors, and consultants (other than those individuals listed in Items 5 and 6 above), for the two previous
fiscal years and current fiscal year-to-date. “Compensation” includes, but is not limited to, salaries, commissions,
consulting fees, bonuses, dividends, distributions, royalties, pensions, and profit sharing plans. “Other benefits” include,
but are not limited to, loans, loan payments, rent, car payments, and insurance premiums, whether paid directly to the
individuals, or paid to others on their behalf.
Name/Position

Current Fiscal
Year-to-Date

1 Year Ago

2 Years Ago

Compensation or
Type of Benefits

_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________

Page 13

Initials __________

Item 30.

Compensation of Board Members and Officers

List all compensation and other benefits received from the corporation by each person listed in Items 5 and 6, for the
current fiscal year-to-date and the two previous fiscal years. “Compensation” includes, but is not limited to, salaries,
commissions, consulting fees, dividends, distributions, royalties, pensions, and profit sharing plans. “Other benefits”
include, but are not limited to, loans, loan payments, rent, car payments, and insurance premiums, whether paid directly to
the individuals, or paid to others on their behalf.
Name/Position

Current Fiscal
Year-to-Date

1 Year Ago

2 Years Ago

Compensation or
Type of Benefits

_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
_____________________________ $____________ $___________ $____________ ___________________________
Item 31.

Transfers of Assets Including Cash and Property

List all transfers of assets over $2,500 made by the corporation, other than in the ordinary course of business, during the
previous three years, by loan, gift, sale, or other transfer.
Transferee’s Name, Address, & Relationship

Property
Transferred

Aggregate
Value

Transfer
Date

Type of Transfer
(e.g., Loan, Gift)

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

Page 14

Initials __________

Item 32.

Documents Attached to the Financial Statement

List all documents that are being submitted with the financial statement.
Item No. Document
Relates To

Description of Document

___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________
___________________ ____________________________________________________________________________

I am submitting this financial statement with the understanding that it may affect action by the Federal Trade
Commission or a federal court. I have used my best efforts to obtain the information requested in this statement. The
responses I have provided to the items above are true and contain all the requested facts and information of which I have
notice or knowledge. I have provided all requested documents in my custody, possession, or control. I know of the
penalties for false statements under 18 U.S.C. § 1001, 18 U.S.C. § 1621, and 18 U.S.C. § 1623 (five years imprisonment
and/or fines). I certify under penalty of perjury under the laws of the United States that the foregoing is true and correct.
Executed on:
______________________________
(Date)

_____________________________________________________
Signature

_____________________________________________________
Corporate Position

Page 15

Initials __________

Proposed TRO Attachment C
Consent to Release Financial Records

FEDERAL TRADE COMMISSION
CONSENT TO RELEASE OF FINANCIAL RECORDS
I, ________________________________, residing at,
_________________________________, in the United States of America, do hereby direct any
bank, trust company, or financial institution, at which I have an account of any kind or at which a
corporation, or natural person has a bank account of any kind upon which I am authorized to
draw, and its officers, employees, and agents, to disclose all information and delivery copies of
all documents of every nature in their possession or control that relate to any such account to an
attorney or representative of the Federal Trade Commission (“FTC”), and to give evidence
relevant thereto, in the matter of the FTC v. RevMountain, et al., before the
United States District Court for the District of Nevada, and this shall be irrevocable
authority for so doing.
This direction is intended to apply to the laws of countries other than the United States of
America that restrict or prohibit the disclosure of financial information without the consent of the
holder of the account, and shall be construed as consent with respect thereto, and the same shall
apply to any of the accounts for which I may be a relevant principal.

Dated: ____________________________________, 2017
Name (print): ____________________________________, 2017
Signature: ____________________________________