Federal Trade Commission v. Consumer Defense LLC et al

Filing 111

ORDER Granting 110 Stipulated Order for Permanent Injunction and Monetary Judgment as to Defendant Benjamin Horton. Signed by Judge James C. Mahan on 6/5/2018. (Copies have been distributed pursuant to the NEF - MR)

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ALDEN F. ABBOTT
General Counsel
ADAM M. WESOLOWSKI
GREGORY A. ASHE
Federal Trade Commission
600 Pennsylvania Avenue NW
Washington, DC 20580
Telephone: [phone] (Wesolowski)
Telephone: [phone] (Ashe)
Facsimile: 202-326-3768
Email: [e-mail], [e-mail]

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DAYLE ELIESON
United States Attorney
BLAINE T. WELSH
Assistant United States Attorney
Nevada Bar No. 4790
501 Las Vegas Blvd. South, Suite 1100
Las Vegas, Nevada 89101
Phone: [phone]
Facsimile: [phone]

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UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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FEDERAL TRADE COMMISSION,
Case No. 2:18-cv-00030-JCM-PAL

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Plaintiff,

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v.

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STIPULATED ORDER FOR
PERMANENT INJUNCTION AND
MONETARY JUDGMENT AS TO
DEFENDANT BENJAMIN
HORTON

CONSUMER DEFENSE, LLC, et al.,
Defendants.

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Plaintiff, Federal Trade Commission (“FTC”), commenced this civil action on January 8,
2018, by filing its Complaint (ECF No. 1) seeking a permanent injunction and other equitable
relief pursuant to Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), and the 2009 Omnibus

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Appropriations Act, Public Law 111-8, Section 626, 123 Stat. 524, 678 (Mar. 11, 2009), as

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Case 2:18-cv-00030-JCM-PAL Document 110 Filed 05/31/18 Page 2 of 21

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clarified by t he Credit Card Accountability Respons ibility and Disclosure Act of 2009, Public

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Law 11 I -24, Section 511 , 123 Stat. 1734, 1763-64 (May 22, 2009), and amended by the Dodd-

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Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, Sectio n I 097, 124

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Stat. 1376, 2102 -03 (July 21, 2010), 12 U.S.C. § 5538. On motion by the FTC, o n January 10,

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2018, the Court entered an ex parte Temporary Restraining Order with asset freeze, appointment

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of receiver, and other equitable relief against Defendants (ECF N o . 12). On February 2 0, 20 18.

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the Court entered a Preliminary Injunction against De fendants. (ECF No. 55). Now, the FTC
and the Receiver, by and through their undersigned counse l, and D efendant Benjamin Horton

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prose stipulate and agree to the entry of this Stipulated Final Order for Permanent Injunction and

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Monetary Judg me nt ("Order") to resolve all matters in dispute in this actio n between them.

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FINDINGS

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By stipulation of the parties, the Court finds as fol lows:

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I.

This Court has jurisdiction over this matter.

2.

The Complaint charges that Defendant Horton partic ipated in deceptive acts or practices

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in vio lation of Section 5 of the FTC Act, 15 U.S.C. § 45, and the Mortgage Assistance

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Relief Services Rule ("MARS Rule"), 12 C.r.R. Part 1015, in connection with the

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marketing and sale of mortgage assistance relief services.

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3.

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Defendant Horton neithe r admits nor denies any of the allegatio ns in the Complaint,
except as specifically stated in this Order. Only for purposes of th is action, Defe.ndant

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Ho rton admits the facts necessary to establish jurisdiction.

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4.

Defendant Horto n waives any claim that he may have under the Equal Access to J ustice

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Act, 28 U .S.C. § 241 2, concerning the prosecution of this action th ro ugh the date of th is

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Order, and agrees to bear his own costs and attorney fees.

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Case 2:18-cv-00030-JCM-PAL Document 110 Filed 05/31/18 Page 3 of 21

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contest the validity of thi s Order.

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Defondant Horton and the FTC waive a ll rights to appeal or otherwise challenge or

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Entry of this Order is in the public interest.

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DEFINITIONS
For the purpose of this Order, the follov.·'ing definitions apply:
A. "Assisting others" includes:

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I. performing customer service functions, including receiving or responding to cons umer
complaints;
2. formulating or providing, or arranging for the formulation or provisio n o f, any

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

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so licitation, or the design, text, or use of images of any Internet website, email, or other

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electronic communication;

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3. formulating or providing, or arranging for the formulation or provision of, any marketing
support material or service, including web or Internet Protocol addresses or domain name

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registration for any Internet websites, affiliate marketing serv ices, or media placement

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services;

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4. providing names of~ or assisting in the generation of, potential customers;
5. performing marketing, billing, or payment services of any kind ; o r
6. acting or serving as an owner, officer, director, manager, or principal of any entity.

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B. "Clear(ly) and conspicuous(ly)" means that a required disclosure is d iffi cult to miss (i.e.,
easily noticeable) and easily understandable by ordinary consumers, including in all of the
following ways:

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l . In any commun ication that is solely visual or sole ly audible, the disclosure must be made

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through the same means through which the communication is presented. In any

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commun ication made through both vi sual and audible means, such as a te lev is ion

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advertisement, the disclosure must be presented sim ultaneously in both the visual and

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aud ible portions of the communication even if the representation requiring the disclosure

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is made in on ly one means.

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2. A visual d isclosure, by its s ize, contrast, location, the length of time it appears, and other
characteristics, must stand out from any accompanying text or other visua l e lements so
that it is easily noticed, read, and understood.

3. An a udible disc losure, including by te lephone or stream ing video, must be delivered in a
volume, speed, and cadence sufficient for ord inary consumers to easily hear and
understand it.

4. In any communication using an interactive e lectron ic medium, such as the Internet or

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software, the disclo sure must be unavo idable.
5. The disclosure m ust use diction and syntax understandable to ordinary consumers and

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must appear in each language in w hich the representation that requires the disclosure

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appears.

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6. The disclosure must comply with these requirements in each medium through which it is
received, inc lud ing all electronic devices and face-to-face communications.

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7. The di sclosure must not be contradicted or mitigated by, or incons istent with, anything

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e lse in the comm unication .
C. "Defendants" means a ll of the Individual Defendants and the Corporate De fendants,
indiv idually, collectively, or in any combination. "Corporate Defendants" means

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Consumer Defense, LLC (a Nevada LLC); Consumer Link, Inc.; Preferred Law, PLLC;

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American Home Loan Counselors; American Home Loans, LLC; Consumer Defense Group,

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LLC (t/k/a Modification Review Board, LLC); Consumer Defense, LLC (a Utah LLC);

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Brown Legal, lnc.; AM Property Management, LLC; FMG Partners, LLC; Zinly, LLC, and

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their successors and assigns. "Individual Defendants" means Jonathan P. Hanley, Benjamin

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R. Horton, and Sandra X. Hanley.

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D. "Financial product or service" means any product, service, plan, or program represented,

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expressly or by implication, to:

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I . provide any consumer, arrange for any consumer to receive, or assist any consumer in

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receiving, a loan or other extension of credit;
2. provide any consumer, arrange for any consumer to receive, or assist any consumer in
receiving, credit, debit, or stored value cards;

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3. improve, repair, or arrange to improve or repair, any consumer's credit record, credit

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history, or credit rating; or
4. provide advice or assistance to improve any consumer's credit record, credit history, or
credit rating.

E. "Person" means any individual , group, unincorporated association, limited or general
partnership, corporation, or other business entity.

F. "Secured or unsecured debt relief product or service" means:

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1. With respect to any mortgage, loan, debt, or obligation between a person and one or more

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secured or unsecured creditors or debt collectors, any product, service, plan, or program

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represented, expressly or by implication, to:

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a. stop, prevent, or postpone any mortgage or deed of forec losure sale for a person's

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dwelling, any other sale of collateral, any repossessi on of a person' s dwe lling or other

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collateral, or otherwise save a person' s dwell ing or other collateral from foreclosure

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or repossession;

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b. negotiate, obtain, or arrange a modification, or renegotiate, settle, or in any way alter

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any terms of the mo rtgage, loan, debt, or obligation, including a reduction in the

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amount of interest, principal balance, monthly payments, o r fees owed by a person to

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a secured or unsecured creditor or debt collector;

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c. obtain any forbearance or modification in the timing of payments from any secured or

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unsecured holder or servicer of any mortgage, loan, debt, or obligation;
d. negotiate, obtain , or arrange any extension of the period of time w ithin which a

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person may (i) cure his or her default on the mortgage, loan, debt, or obligation, (ii)

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reinstate his or her mortgage, loan, debt, or o bligation, (iii) redeem a dwelling or

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

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obligation or redeem a dwelling or other collateral;

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e. obtain any waiver of an acceleration clause or balloon payment contained in any

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promissory noce or contract secured by any dwelling or other collateral; or

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negotiate, obtain, or arrange (i) a sh01t sale of a dwelling or other collateral, (ii) a
deed-in-lieu of foreclosure, or (iii) any other disposition of a mortgage, loan, debt, or

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obligation other than a sale to a third party that is not the secured or unsecured loan
holder.

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The forego ing shall include any manner of claimed assistance, includ ing auditing or

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examining a person's application for the mortgage, loan, debt, or obligation.

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2. With respect to any loan, de bt, or obligation between a person and one or more unsecured

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creditors or debt collectors, any product, service, plan, or program represented, expressly

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or by implication, to :

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a. repay one or more unsecured loans, debts, or obligations; or

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b. combine unsecured loans, debts, or obligations into one or more new loans, debts, or

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obligations.

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ORDER

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BAN ON SECURED AND UNSECURED DEBT RELIEF PRODUCTS AND SERVICES

I.

IT THEREFORE IS ORDERED that Defendant Horton is permanently restrained and

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enjoined from advertising, marketing, promoting, offering for sale, or selling, or ass isting

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others in the advertising, marketing, pro moting, offering for sale, or selling, of any

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sec ured or unsecured debt relief product or service. Provided, however, that this Section

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I sha ll not prohibit Defendant Horton, in any jurisdiction where he is licensed to practice

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law, from directly rendering routine legal services ( I) to c lients with whom he has an

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attorney-client relationship in connection with new or existing bankru ptcy proceedings or

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estate planning, or (2) in connection with the closing and execution of real estate

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transactions. Provided.further, that this Section I shall not be construed to limit the

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licensing or regulatory powers of any federal, state, or local government agency or state

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bar.

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PROHIBITION AGAINST MISREPRESENTATIONS RELATING TO FINANCIAL
PRODUCTS AND SERVICES

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II.

IT IS FURTHER ORDERED that Defendant Horton, his officers, agents, employees,

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

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who receive actual notice of this Order, w hether acting direc tly or indirectly, in

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connection with the advertising, marketing, promoting, offering for sale, or selling of any

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financial product or service, are permanently restrained and enjoined from

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misrepresenting, or assisting others in misrepresenting, expressly or by implication:

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A. the tenns or rates that are avai lable for any loan or other extension of credit, including:

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1. closing costs or other fees;

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2. the payment schedule, monthly payment amount(s), any balloon payment, or other
payment terms;
3. t he interest rate(s), annual percentage rate(s), or finance charge(s), and whether they
are fixed or adjustable;

4. the loan amount, credit amount, draw amount, or outstanding balance; the loan term,
draw period, or maturity ; or any other term of credit;

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5. the amount of cash to be disbursed to the borrower out of the proceeds, or the amount
of cash to be dis bursed on behalf of the borrower to any third parties;

6. whether a ny specified minimum payment amount covers both interest and principal ,
and whether the credit has or can result in negative amortization; or

7. that the credit does not have a prepayment penalty or whether subsequent refinancing
may trigger a prepayment penalty and/or other fees;

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B. the ability to improve or otherwise affect a consumer's credit record, credit hi story, credit

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rating, or ability to obtain credit, including that a consume r's credit record, cred it history,

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credit rating, or ability to obtain cred it can be improved by permanently removing

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current, accurate negative information from the consumer's credit record or history ; or

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C. that a consumer will receive legal representation; or

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D. any other fact material to consumers concerning any good or service, such as: the total

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costs; any material restrictio ns, limitations, or conditions; or any material aspect of its

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performance, efficacy, nature, or central characteristics.

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PROHIBITION AGAINST MISREPRESENT ATIONS RELATING TO ANY
PRODUCTS OR SERVICES

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Ill.

IT IS F URTHER ORDERED that Defendant Horton, his officers, agents, empl oyees,

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and attorneys, and all other persons in active concert or participation w ith any of them,

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who receive actual notice of this Order, whether acting directly or indirectly, in

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connectio n with the advertising, marketing, promoting, offering for sale, or selling of any

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prod uct, service, plan, or program, are permanently restrained and enjoined from

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misrepresenting, or assist ing others in misrepresenting, expressly or by implication:

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A. any material aspect of the nature or terms of any refund , cancellation, exchange, or

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repurchase policy, including the likelihood of a consumer obtaining a fu ll or parti al

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

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consumer;

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B. that any person is affiliated with, endorsed or approved by, or otherwise connected to any

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other person; governme nt entity; public, non-profit, or other non-co mmercial program; or

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any other program ;
C. the nature, expertise, position, or job title of any person who provides any product,

service, plan, or program;

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D. the person who w ill provide any product, service, plan, or program to any consumer;

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E. that any person providing a testimonial has purchased, received, or used the product,

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service, plan, o r program;

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F.

that the experience represe nted in a testimonial of the product, serv ice, plan. or program

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represents the person 's actual experience resulting from the use of the product, service,

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plan, or program under the circumstances depicted in the advertisement; or

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G. any other fact materia l to consumers concerning any good or service, such as: the total

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costs; any material restrictions, limitations, or conditions; or any material aspect of its

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performance, efficacy, nature, or central characteristics.

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PROHIBITION AGAINST UNSUBSTANTIATED CLAIMS

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IV.

IT IS F URTHER ORDERED that Defendant Horton, his officers, agents, employees,

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

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who receive actual notice o f this Order, whethe r acting directly or indirectly, in

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connection with the sale of any financial product or service, are permanently restrained

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and enjoined from making any representation or assisting others in ma king any

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representation, expressly or by imp lication, about the benefits, performance, or efficacy

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of any financial product or service, unless the representation is non-mi sleading , a nd, at

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the time such representation is made, Defendant Horton possesses and relies upon

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competent and reliable evidence that is sufficient in q uality and quantity based on

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standards generally accepted in the relevant field s, when considered in li ght of the entire

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body ofrelevant and reliable evidence, to substantiate that the representation is true.

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MONETARY JUDGMENT AND PARTIAL SUSPENSION

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IT IS FURTHER ORDERED that:

A. Judgment in the amount of Fifteen Million Five Hundred Seventy-Seven Thousand Six
Hundred Fifty-Five Dollars and Sixty-Three Cents ($15,577,655.63) is entered in favor of

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the FTC against Defendant Horton, jointly and severally with any other Defendant in this
action against whom judgme nt may be entered , as eq uitable monetary re lief.

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B. The judgment as to Defendant Horton is suspended, subject to the Subsections below.

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C. Upon e ntry of this Order, the asset freeze as to Defendant Horton is dissolved.

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D. The FTC's agreement to the suspension of part of the judgment is expressly premised

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upon the truthfulness, accuracy, and completeness of Defendant Horton's sworn fina ncial

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statements and related documents (collective ly, " financial representations'') submitted to

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the FTC, namely the Financial Statement of Individual Defendant Benjamin Horton

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s igned on February 20, 2018, including the attachments; and the email transmitted by

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Defendant Horton to the FTC on March 2 8, 20 18.

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E. The suspension of the judg ment will be lifted as to Defendant Ho1ton if, upon motion by
the FTC, the Court find s that he failed to disclose any mate ria l asset, materially misstated

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the value of any asset, or made any other material misstatement or omi ssion in the

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financ ial representations identified above.

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F. lfthe suspens ion of the judgment is lifted, the judgment becomes immediately due as to

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Defendant Horton in the amount specified in Subsection A. above (which the parties

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stipulate only for purposes of this Section represents the consumer injury alleged in the

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Compla int), less any payme nt previously made purs uant to this Section, plus interest
computed from the date of entry of this Order.

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G. Defendant Horton relinquishes dominion and a ll legal and equitable right. title, and
interest in al l assets transferred pursuant to this Order and may not seek the return of any
a ssets.

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H. The facts alleged in the Complaint w ill be taken as true, without further proof, in any

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subsequent civil litigation by or on behalf of the FTC, including in a proceeding to

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enforce its rights to any payment or monetary judgment pursuant to this Order, such as a

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nondischargeability complaint in any bankruptcy case.

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I.

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The facts alleged in the Complaint establish all elements necessary to sustain an action by
the FTC pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C.

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§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes.

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J.

Defendant Horton acknow ledges that his Taxpayer Identification N umbers (Social

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Security Numbers or Employer Identification Numbers), which he previously submitted

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to the FTC, may be used for collecting and reporting on any delinquent amo unt ari sing

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

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K. All money paid to the FTC pursuant to thi s Order may be deposited into a fund

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administered by the FTC or its designee to be used for equitable relief, including

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consumer redress and any attendant expenses for the admini strati on of any redress fund.

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If a representative of the FTC decides that direct redress to consumers is wholly or

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partially impracticable or money remains after redress is completed, the FTC may apply

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any remaining money for such other equitable relief (including consumer information

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remed ies) as it determines to be reasonably related to Defendants' practices alleged in the
Complaint. Any money not used for such equitabl e relief is to be deposited to the U.S.

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Treasury as disgorgement. Defendant Horton has no right to challenge any actions the
FTC or its representatives may take pursuant to this Subsectio n.

CUSTOMER INFORMATION

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VI.

IT IS FURTHER ORDERED that Defendant Horton, his officers, agents, employees,

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and attorneys, and all other persons in active concert or pat1icipation with any of them,

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who receive actual notice of this Order, are permanently restrained and enjoined from

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directly or indirectly:

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A. failing to provide sufficient customer information to enable the FTC to efficiently

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administer consumer redress. If a represe ntative of the FTC requests in writing any

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information related to redress, Defendant Horton must provide it, in the form prescribed

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by the FTC, within 14 days;

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B. di sclosing, using, or benefitting from customer information, including the name, address,

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telephone number, email address, social security number, other identifying information,

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

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account, or other financial account), that any Defendant obtained prior to entry of this

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Order in connection with the marketing and sale of mo11gage assistance relief serv ices;

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and

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C. failing to destroy such customer information in all form s in their possession, custody, or

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control within 30 days after rece ipt of written direction to do so from a representative of

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the FTC.

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D. Provided, however, that customer information need not be disposed of, and may be

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disclosed, to the extent requested by a government agency or required by law, regulation.

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or court order.

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COOPERATION

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VII.

IT IS FURTHER ORDERED that Defendant Horton must fully cooperate with
representatives of the FTC in this case and in any investigation related to or associated

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with the transactions or the occurrences that are the subject of the Compla int. Defendant

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Horton must prov ide truthful and complete information, evidence, and testimony.

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Defendant Horton must appear for interviews, discovery, hearings, tr ials, and any other

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proceedings that a FTC representative may reasonably request upon 10 days written

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notice, or other reasonable notice, at such places and times as a FTC representative may

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designate, without the service of a subpoena.

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ORDER ACKNOWLEDGMENTS

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Vlll. IT IS FURTHER ORDERED that Defendant Horton obtain acknowledgments of
receipt of this Order:

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A.

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Defendant Horton, within 7 days of entry of this Order, must submit to the FTC an
acknowledgment of receipt of this Order sworn under penalty of perjury.

B.

For 5 years after entry of this Order, Defendant Horton for any business that he,

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individually or collectively with any other Defendants, is the majority owner or

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contro ls directly or indirectly, must deliver a copy of this Order to: (I) all principals,

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officers, directors, and LLC managers and members; (2) all employees having

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managerial responsibilities for conduct related to the subject matter of the Order and

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all agents and representatives who participate in conduct related to the s ubj ect matter

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of the Order; and (3) any business entity resulting from any change in structure as set

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forth in the Section titled Compliance Reporting. Delivery must occur within 7 days

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of entry of th is Order for current personnel. For al I others, delivery must occur before
they assume their responsibilities.

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c.

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

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Order, Defendant Horton must obtain, within 30 days, a signed and dated

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acknowledgment of receipt of this Order.

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COMPLIANCE REPORTING
IX.

IT IS FURTHER ORDERED that Defendant Horton make timely submissions to the

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FTC:

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A.

One year after entry of this Order, Defendant Horton must submit a compliance
report, sworn under penalty of perjury:

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1.

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Defendant Horton must: (a) identify the primary physical, postal , and email
address and telephone number, as designated points of contact, which

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representati ves of the FTC may use to communicate with him; (b) identify all of

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his businesses by a ll of their names, telephone numbers, and physical, postal,

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email, and Internet addresses; (c) describe the activities of each business,

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including the goods and services offered, the means of advertising, marketing, and

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sales, and the involvement of any other Defendant (which Defendant Horton must

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

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detail whether and how he is in compliance with each Section of this Order; and

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(e) provide a copy of each Order Acknowledgment obtained pursuant to this

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Order, unless previously submitted to t he FTC.

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2.

Additionally, Defendant Horton must: (a) identify all telephone numbers and all

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physical, postal, email and Internet addresses, including all residences; (b)

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identify all business activities, including any business for which he performs

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services whether as an employee or otherw ise and any entity in which he has any

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ownership inte rest; and (c) describe in detail his involvement in each s uch

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business, including title, role, responsibilities, participatio n, authority, control,

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and any ownership.

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B.

For I 0 years after entry of this Order, Defendant Horton must submit a compliance

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notice, sworn under penalty of perjury, with in I 4 days of any change in the following:

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I.

Defendant Horton must report any change in: (a) any designated po int of contact;

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or (b) the structure of any Corporate Defendant or any entity that he has any

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ownership interest in or controls directly or indirectly that may affect compliance

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obligations ari sing under this Order, including: creation. merger, sale, or

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dissolution of the entity or any subsidiary. parent, or affi Iiate that e ngages in any

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acts or practices subject to this Order.

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2.

Additionally, Defenda nt Horton must re port any change in: (a) name, including

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a liases or fi ctitio us name, or residence address; or (b) title or role in any business

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activity, including any business for whi ch he performs services whether as an

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employee or otherwise and any entity in which he has any ownership interest, and

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identify the name, physical address, and a ny Internet address of the business or

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entity.

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C.

Defendant Horton must submit to the FTC notice of the filin g of any bankruptcy

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petition, insolvency proceeding, or simil ar proceeding by or against him within 14

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days of its filing.

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D.

Any submission to the FTC required by this Order to be sworn under pena lty of

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perjury must be true and accurate and comply with 28 U.S.C. § I 746, such as by

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concluding: "l decla re under pena lty of perjury under the laws of the United States of

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Case 2:18-cv-00030-JCM-PAL Document 110 Filed 05/31/18 Page 17 of 21

America that the foregoing is true and correct. Executed on: _ _ " and s uppl y ing

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the date, signatory' s full name, title (if applicable), and signature.

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E.

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Unless otherwise directed by a FTC representative in writi ng, a ll subm iss ions to the

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FTC pursuant to this Order must be emailed to DEbrief@ftc .gov or sent by overnight

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courier (not the U.S. Postal Serv ice) to: Associate Director for Enforcement, Bureau

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of Consumer Protection, Federal Trade Commission, 600 Pennsy lvania Avenue NW,

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Washington, DC 20580. The subject line must begin: FTC v. Consumer Defen se,

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X180017.

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RECORDKEEPING

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x.

IT JS FURTHER ORDERED that Defendant Horton must create certain records for 10

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years at\er entry of the Order, and retain each such record for 5 years. Specifically,

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Defendant Horton for any business that he, individually or collectively w ith any other

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Defendants, is a majority owner or controls directly or indirectly, must create and retain

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the fo llowing records:

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A.

accounting records showing the revenues from a ll goods or services sold;

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B.

personnel records showing, for each person providing services, whether as an

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employee or otherwise, that person 's: name; addresses; tel eph one numbers; job title

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or position; dates of serv ice; and (if applicable) the reason for termination;

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C.

records of all consumer complaints and refund requests, w hether received directly or

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indi rectly, such as through a third party, and any response;

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D.

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all records necessary to demonstrate full compliance with each provision of th is
Order, including all submissions to the FTC ; and

E.

a copy of each unique advertisement or other marketing material.

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Case 2:18-cv-00030-JCM-PAL Document 110 Filed 05/31/18 Page 18 of 21

COMPLIANCE MONITORING

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XI.

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendant Horton' s

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complia nce with this Order, includ ing the financial representations upon which part of

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the judgment was suspended, and any failure to transfer any assets as required by this

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Order:

A.

Within 14 days of receipt of a written request from a representative of the FTC,

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Defendant Horton must: submit additiona l compliance reports or other requested

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information, which must be sworn under penalty of perjury; appear for depositions;

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and produce documents for inspection and copying. The FTC is also authorized to

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obtain discovery, without further leave of court, using any of the procedures

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prescribed by Federal Rules of Civil Procedure 29, 30 (including te lephonic

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depositions), 31 , 33, 34, 36, 45, and 69.

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B.

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For matters concerning this Order, the FTC is authorized to communicate directly
with Defendant Ho rton. Defendant Horton must permit representatives of the FTC to

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interview any employee or other person affil iated with him who has agreed to such an

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interview. The person interviewed may have counsel present.

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C.

The FTC may use all other lawfu l means, including posing, through its
representatives as consumers, suppliers, or other individual s or entities, to Defendant

21
Horton or any individual o r entity affi liated with Defendant Horton, without the

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necessity of identification or prior notice. Nothing in this Order limits the FTC's

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lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15

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U.S.C. §§ 49, 57b-1.

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Page 18 of2 1

1

D.

Upon written request from a representative of the FTC, any consumer reporting

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agency must furnish consumer reports concerning Defendant Horton, pursuant to

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Section 604(1) of t he Fair Credit Reporti ng Act, I 5 U.S.C. § 168 1b(a)(l).

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5

ENTRY OF JUDGMENT
XII.

IT IS FURTHER ORDERED that there is no just reason for delay of e ntry of thi s

6
judgment, and that, pursuant to Federal Rule of Civ il Procedure 54(b), the C lerk

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immediately shall enter this Order as a final judgment as to Defendant Horton.

RETENTION OF JURISDICTION

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Xlll. IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for
purposes of construction, modification, and enforcement of this Order.

IT IS SO ORDERED.

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JAMES C. MAHAN
UN ITED STATES DI STRICT JUDGE

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Dated:

June 5, 2018

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Case 2:18-cv-00030-JCM-PAL Document 110 Filed 05/31/18 Page 20 of 21

Case 2:18-cv-00030-JCM-PAL Document 110 Filed 05/31/18 Page 21 of 21

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CERTIFICATE OF SERVICE

Undersigned counsel certifies that on May 31, 2018, STIPULATED ORDER FOR
PERMANENT INJUNCTION AND MONETARY JUDGMENT AS TO DEFENDANT
BENJAMIN HORTON was electronically filed with the Clerk of Court using the CM/ECF
system, which will automatically send email notification of such filing to the following attorneys
of record:
Abran E. Vigil
Blaine T. Welsh
Gregory A. Ashe
Edward T. Chang
Adam M. Wesolowski
Karra J. Porter
Gregory A. Miles

10 The undersigned counsel further certifies that the documents will be emailed, overnighted, and/or
11 hand-delivered to the following non-CM/ECF participants:
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15

Andrew Robertson
J.D. Lauritzen
Benjamin Horton (Defendant pro se)
/s/ Adam M. Wesolowski______________________
Attorney for Plaintiff Federal Trade Commission

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