Federal Trade Commission v. Consumer Defense LLC et al

Filing 30

ORDER Granting 29 Stipulation to Continue Hearing re 6 Motion for Preliminary Injunction (Second Request). Motion Hearing reset for 2/15/2018 at 10:00 AM in LV Courtroom 6A. Signed by Judge James C. Mahan on 2/1/2018. (Copies have been distributed pursuant to the NEF - MR)

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DAVID C. SHONKA
Acting General Counsel
ADAM M. WESOLOWSKI
GREGORY A. ASHE
Federal Trade Commission
600 Pennsylvania Avenue NW
Washington, DC 20850
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
333 Las Vegas Blvd. South, Suite 5000
Las Vegas, Nevada 89101
Phone: [phone]
Facsimile: [phone]

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UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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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SECOND STIPULATION AND
ORDER CONTINUING HEARING
ON PRELIMINARY INJUNCTION
AND CONTINUING
TEMPORARY RESTRAINING
ORDER

CONSUMER DEFENSE, LLC, et al.,
Defendants.

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The FTC, the Receiver, and Defendants Jonathan Hanley and Sandra Hanley, by and through

24 their undersigned counsel, and pro se Defendant Benjamin Horton hereby stipulate and agree as
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The parties seek a continuance of the February 7, 2018 hearing on the order to show

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cause why a preliminary injunction should not be entered for at least one week, to occur

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on or after February 14, 2018, to allow newly appointed counsel for Defendants Jonathan

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Hanley and Sandra Hanley adequate time to prepare. Accordingly, Defendants shall

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appear on February 15, 2018 at 10:00 a.m., at the United States Courthouse,

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Courtroom 6A, Las Vegas, Nevada, to show cause, if any there be, why this Court

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should not enter a preliminary injunction, pending final ruling on the complaint, against

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Defendants enjoining them from further violations of the FTC Act and the Mortgage

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Assistance Relief Services Rule, continuing the freeze of their assets, continuing the

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receivership over the receivership entities, and imposing such additional relief as may be

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appropriate.

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Defendants shall file with the Court and serve on FTC counsel any answering pleadings,
affidavits, motions, expert reports or declarations, or legal memoranda no later than four

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(4) days prior to the order to show cause hearing scheduled pursuant to this Order. The

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FTC may file responsive or supplemental pleadings, materials, affidavits, or memoranda

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with the Court and serve the same on counsel for Defendants no later than one (1) day

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prior to the order to show Cause hearing. Provided that such affidavits, pleadings,

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motions, expert reports, declarations, legal memoranda or oppositions must be served by

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personal or overnight delivery, facsimile or email, and be received by the other party or

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parties no later than 5:00 p.m. (PST) on the appropriate dates set forth in this Section.

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3.

An evidentiary hearing on the FTC’s request for a preliminary injunction is not necessary

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unless Defendants demonstrate that they have, and intend to introduce, evidence that

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raises a genuine and material factual issue. The question of whether this Court should

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enter a preliminary injunction shall be resolved on the pleadings, declarations, exhibits,

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and memoranda filed by, and oral argument of, the parties. Live testimony shall be heard

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only on further order of this Court. Any motion to permit such testimony shall be filed

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with the Court and served on counsel for the other parties at least five (5) days prior to

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the preliminary injunction hearing in this matter. Such motion shall set forth the name,

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address, and telephone number of each proposed witness, a detailed summary or affidavit

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revealing the substance of each proposed witness’s expected testimony, and an

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explanation of why the taking of live testimony would be helpful to this Court. Any

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papers opposing a timely motion to present live testimony or to present live testimony in

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response to another party’s timely motion to present live testimony shall be filed with this

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Court and served on the other parties at least three (3) days prior to the order to show

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cause hearing.
4.

Except as provided in Section 5 below, the Temporary Restraining Order entered on

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January 10, 2018 (ECF No. 12) shall continue in full force and effect as to Defendants

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until after the rescheduled hearing on the order to show cause.

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The asset freeze provisions of the Temporary Restraining Order are hereby modified as

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follows:

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a. Defendants Jonathan Hanley, Sandra Hanley, and Benjamin Horton each may retain

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and spend income received from employment unrelated to mortgage assistance relief

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services performed after the date of entry of this Order;

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b. Defendants Jonathan Hanley, Sandra Hanley, and Benjamin Horton each may retain
and spend assets acquired by loan or gift after the date of entry of this Order only

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after identifying such assets to FTC counsel; provided, however, that this section does

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not apply to loans or gifts valued at less than $500.

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This agreement shall be without prejudice to any party.

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IT IS SO ORDERED.

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___________________________________
JAMES C. MAHAN
UNITED STATES DISTRICT JUDGE

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February 1, 2018
Dated:____________________

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IT IS SO STIPULATED.

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/s/Adam M. Wesolowski
ADAM M. WESOLOWSKI
GREGORY A. ASHE
Federal Trade Commission
600 Pennsylvania Avenue NW
Washington, DC 20850
Telephone: [phone] (Wesolowski)
Telephone: [phone] (Ashe)
Facsimile: 202-326-3768
Email: [e-mail]; [e-mail]
DAYLE ELIESON
United States Attorney
BLAINE T. WELSH
Assistant United States Attorney
Nevada Bar No. 4790
333 Las Vegas Blvd. South, Suite 5000
Las Vegas, Nevada 89101
Phone: [phone]
Facsimile: [phone]

/s/Karra J. Porter (by permission)
KARRA J. PORTER
J.D. LAURITZEN
Christensen & Jensen
257 East 200 South, Suite 1100
Salt Lake City, UT 84111
Telephone: [phone]
Facsimile: 801-355-3472
Email: [e-mail],
[e-mail]
Attorney for Defendants Jonathan Hanley and
Sandra Hanley

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/s/Andrew Robertson (by permission)
ANDREW ROBERTSON
EDWARD CHANG
McNamara Smith LLP
655 West Broadway, Suite 1600
San Diego, CA 92101
Telephone: [phone]
Facsimile: 619-269-0401
Email: [e-mail],
[e-mail]

/s/Benjamin Horton (by permission)
BENJAMIN HORTON
Defendant pro se

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Attorneys for Thomas McNamara, Court-

25 appointed Receiver
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