Federal Trade Commission v. Consumer Defense LLC et al

Filing 55

ORDER granting 53 Proposed Preliminary Injunction. Signed by Judge James C. Mahan on 2/20/2018. (Copies have been distributed pursuant to the NEF - JM)

Case 2:18-cv-00030-JCM-PAL Document 53 Filed 02/16/18 Page 1 of 3

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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 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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FTC’S LODGING OF PROPOSED
PRELIMINARY INJUNCTION
ORDER

CONSUMER DEFENSE, LLC, et al.,
Defendants.

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Pursuant to the Court’s instruction, plaintiff Federal Trade Commission (“FTC”) hereby
lodges the proposed preliminary injunction order.

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Case 2:18-cv-00030-JCM-PAL Document 53 Filed 02/16/18 Page 2 of 3

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Dated: February 16, 2018

Respectfully submitted,
DAVID SHONKA
Acting General Counsel
/s/ Gregory A. Ashe
ADAM M. WESOLOWSKI
GREGORY A. ASHE
Federal Trade Commission
600 Pennsylvania Ave, N.W., CC-10232
Washington, DC 20580
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
501 Las Vegas Blvd. South, Suite 1100
Las Vegas, Nevada 89101
Telephone: [phone]
Facsimile: [phone]
Attorneys for Plaintiff
FEDERAL TRADE COMMISSION

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Case 2:18-cv-00030-JCM-PAL Document 53 Filed 02/16/18 Page 3 of 3

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CERTIFICATE OF SERVICE
Undersigned counsel certifies that on February 16, 2018, FTC’S LODGING OF PROPOSED
PRELIMINARY INJUNCTION 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:

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Abran E. Vigil
Blaine T Welsh
Gregory A. Ashe
Edward T. Chang
Adam M Wesolowski
Karra J. Porter
Gregory A. Miles
The undersigned counsel further certifies that the documents will be emailed, overnighted, and/or
hand-delivered to the following non-CM/ECF participants:

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J.D. Lauritzen

12 Benjamin Horton (Defendant pro se)
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/s/ Gregory A. Ashe_______________________
Attorney for Plaintiff Federal Trade Commission

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Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 1 of 63

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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
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

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

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PRELIMINARY INJUNCTION
v.
CONSUMER DEFENSE, LLC, et al.,
Defendants.

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Plaintiff, Federal Trade Commission (“FTC”), commenced this civil action on January 8,

24 2018, pursuant to Section 13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §
25 53(b), and the 2009 Omnibus Appropriations Act, Public Law 111-8, Section 626, 123 Stat. 524,
26 678 (Mar. 11, 2009), as clarified by the Credit Card Accountability Responsibility and
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Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 2 of 63

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Disclosure Act of 2009, Public Law 111-24, Section 511, 123 Stat. 1734, 1763-64 (May 22,

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2009), and amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act,

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Public Law 111-203, Section 1097, 124 Stat. 1376, 2102-03 (July 21, 2010), 12 U.S.C. § 5538.

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(ECF No. 1.) On motion by the FTC, on January 10, 2018, this Court entered an ex parte

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temporary restraining order (“TRO”) with asset freeze, appointment of receiver, and other

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equitable relief against Defendants Consumer Defense, LLC (Nevada); Consumer Link, Inc.;

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Preferred Law, PLLC; American Home Loan Counselors; American Home Loans, LLC;
Consumer Defense Group, LLC; Consumer Defense, LLC (Utah); Brown Legal, Inc.; AM

10 Property Management, LLC; FMG Partners, LLC; Zinly, LLC; Jonathan P. Hanley; Benjamin R.
11 Horton; and Sandra X. Hanley. (ECF No. 12.) On January 22, 2018, on stipulation of the
12 parties, the Court continued the TRO. (ECF No. 23.) On February 1, 2018, on stipulation of the
13 parties, the Court continued the TRO again. (ECF No. 30.) On February 15, 2018, the Court
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held a hearing on an order to show cause why a preliminary injunction should not issue against

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Defendants.
FINDINGS OF FACT

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The Court, having considered the pleadings, declarations, exhibits, and memoranda, and

19 the arguments presented by the parties, and being otherwise advised, finds that:
20 A. This Court has jurisdiction over the subject matter of this case, and there is good cause to
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believe that it will have jurisdiction over all parties hereto and that venue in the District of

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Nevada is proper.

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B. 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 the

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Mortgage Assistance Relief Services Rule (“MARS Rule” or Regulation O), 12 C.F.R. Part

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1015, and that the FTC is therefore likely to prevail on the merits of this action.

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

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Defendants’ ongoing violations of the FTC Act and the MARS Rule unless Defendants are

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immediately restrained and enjoined by order of this Court.

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D. There is good cause to believe that immediate and irreparable damage to the Court’s ability

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to grant effective final relief for consumers – including monetary restitution, rescission,
disgorgement or refunds – will occur from the sale, transfer, destruction or other disposition

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or concealment by Defendants of their assets or records, unless Defendants are immediately

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restrained and enjoined by order of this Court.

12 E. Good cause exists for continuing the asset freeze over the Defendants’ assets and for
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continuing the receivership over the Receivership Entities.
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F. Weighing the equities and considering the FTC’s likelihood of ultimate success on the

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merits, this order is in the public interest.

17 G. This Court has authority to issue this Order pursuant to Section 13(b) of the FTC Act, 15
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U.S.C. § 53(b); Section 626 of the Omnibus Act, 12 U.S.C. § 5538; Federal Rule of Civil

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Procedure 65; and the All Writs Act, 28 U.S.C. § 1651.

20 H. No security is required of any agency of the United States for issuance of a preliminary
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injunction. Fed. R. Civ. P. 65(c).

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DEFINITIONS

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For the purpose of this Order, the following definitions shall apply:

25 A. “Asset” means any legal or equitable interest in, right to, or claim to, any property, wherever
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located and by whomever held.

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B. “Commercial communication” means any written or oral statement, illustration, or

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depiction, whether in English or any other language, that is designed to affect a sale or create

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interest in purchasing any service, plan, or program, whether it appears on or in a label,

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package, package insert, radio, television, cable television, brochure, newspaper, magazine,

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pamphlet, leaflet, circular, mailer, book insert, free standing insert, letter, catalogue, poster,

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chart, billboard, public transit card, point of purchase display, film, slide, audio program

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transmitted over a telephone system, telemarketing script, on hold script, upsell script,
training materials provided to telemarketing firms, program-length commercial

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(“infomercial”), the Internet, cellular network, or any other medium. Promotional materials

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and items and Web pages are included in the term “commercial communication.”

12 C. “Consumer” means any person.
13 D. “Consumer-specific commercial communication” means a commercial communication
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that occurs prior to a consumer agreeing to permit the provider to seek offers of mortgage

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assistance relief on behalf of the consumer, or otherwise agreeing to use the mortgage
assistance relief service, and that is directed at a specific consumer.

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Inc.; Preferred Law, PLLC; American Home Loan Counselors; American Home Loans, LLC;

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Consumer Defense Group, LLC; Consumer Defense, LLC (a Utah LLC); Brown Legal, Inc.;

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AM Property Management, LLC; FMG Partners, LLC; Zinly, LLC; and each of their

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subsidiaries, affiliates, successors, and assigns.

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F. “Defendants” means the Corporate Defendants and the Individual Defendants, individually,
collectively, or in any combination.

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

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“electronically stored information” in Federal Rule of Civil Procedure 34(a), Fed. R. Civ. P.

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34(a), and includes writings, drawings, graphs, charts, photographs, sound and video

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recordings, images, Internet sites, web pages, websites, electronic correspondence, including

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e-mail and instant messages, contracts, accounting data, advertisements, FTP Logs, Server

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Access Logs, books, written or printed records, handwritten notes, telephone logs, telephone

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scripts, receipt books, ledgers, personal and business canceled checks and check registers,
bank statements, appointment books, computer records, customer or sales databases and any

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other electronically stored information, including Documents located on remote servers or

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cloud computing systems, and other data or data compilations from which information can be

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obtained directly or, if necessary, after translation into a reasonably usable form. A draft or

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non-identical copy is a separate document within the meaning of the term.
H. “Electronic Data Host” means any person or entity in the business of storing, hosting, or

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otherwise maintaining electronically stored information. This includes, but is not limited to,

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any entity hosting a website or server, and any entity providing “cloud based” electronic

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storage.

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prior to the consumer agreeing to permit the provider to seek offers of mortgage assistance
relief on behalf of the consumer, or otherwise agreeing to use the mortgage assistance relief

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service, and that is not directed at a specific consumer.

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J. “Individual Defendant(s)” means Jonathan P. Hanley, Benjamin R. Horton, and Sandra X.
Hanley, individually, collectively, or in any combination.

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K. “Mortgage assistance relief service” means any product, service, plan, or program, offered

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or provided to the consumer in exchange for consideration, that is represented, expressly or

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by implication, to assist or attempt to assist the consumer with any of the following:

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1.

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stopping, preventing, or postponing any mortgage or deed of foreclosure sale for
the consumer’s dwelling, any repossession of the consumer’s dwelling, or

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otherwise saving the consumer’s dwelling from foreclosure or repossession;

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including a reduction in the amount of interest, principal, balance, monthly

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payments, or fees;

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3.

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negotiating, obtaining, or arranging a modification of any term of a dwelling loan,

obtaining any forbearance or modification in the timing of payments from any
dwelling loan holder or servicer on any dwelling loan;

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negotiating, obtaining, or arranging any extension of the period of time within
which the consumer may (i) cure his or her default on a dwelling loan, (ii)

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reinstate his or her dwelling loan, (iii) redeem a dwelling, or (iv) exercise any

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right to reinstate a dwelling loan or redeem a dwelling;

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5.

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obtaining any waiver of an acceleration clause or balloon payment contained in
any promissory note or contract secured by any dwelling; or

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negotiating, obtaining, or arranging (i) a short sale of a dwelling, (ii) a deed-inlieu of foreclosure, or (iii) any other disposition of a dwelling other than a sale to

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a third party who is not the dwelling loan holder.

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The foregoing shall include any manner of claimed assistance, including auditing or
examining a consumer’s mortgage or home loan application.

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

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corporation, partnership, sole proprietorship, limited liability company, association,

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cooperative, or any other group or combination acting as an entity.

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M. “Receiver” means the receiver appointed in Section XIII of this Order and any deputy

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receivers that shall be named by the receiver.
N. “Receivership Entities” means Corporate Defendants as well as any other entity that has

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conducted any business related to mortgage assistance relief services, including receipt of
Assets derived from any activity that is the subject of the Complaint in this matter, and that
the Receiver determines is controlled or owned by any Defendant.

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ORDER

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PROHIBITED BUSINESS ACTIVITIES

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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

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actual notice of this Order by personal service or otherwise, whether acting directly or

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indirectly, in connection with the advertising, marketing, promoting, or offering for sale of

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any mortgage assistance relief services, are hereby restrained and enjoined from:

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

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1. that any person generally will obtain mortgage loan modifications for consumers that
will make their payments substantially more affordable, substantially lower their

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interest rates, or help them avoid foreclosure;

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2. that any person is affiliated with, endorsed or approved by, or are otherwise
associated with the maker, holder, or servicer of a consumer’s dwelling loan,

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including claiming that any person has a special relationship or special agreements

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with the maker, holder, or servicer of a consumer’s dwelling loan;

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3. that any person is part of or affiliated with, endorsed or approved by, or is otherwise

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associated with the federal government or federal government programs;

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4. that a consumer is not obligated to, or should not, make scheduled periodic payments

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or any other payments pursuant to the terms of the consumer’s dwelling loan; and

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5. any other fact material to consumers concerning any mortgage assistance relief

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service, such as: the total costs; any material restrictions, limitations, or conditions;

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or any material aspect of its performance, efficacy, nature, or central characteristics;

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and

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B. making or assisting others in making, any representation, expressly or by implication,

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about the benefits, performance, or efficacy of any product or service, unless the

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representation is non-misleading and, at the time such representation is made, Defendants

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possess and rely upon competent and reliable evidence that is sufficient in quality and

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quantity based on standards generally accepted in the relevant fields, when considered in

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light of the entire body of relevant and reliable evidence, to substantiate that the

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representation is true.

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PROHIBITION ON COLLECTION OF ADVANCE FEES

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II.

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 them, who receive

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actual notice of this Order by personal service or otherwise, whether acting directly or

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indirectly, in connection with the advertising, marketing, promoting, or offering for sale of

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any mortgage assistance relief services, are hereby restrained and enjoined from requesting

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or receiving payment of any fee or other consideration for any mortgage assistance relief

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service before the consumer has executed a written agreement with the consumer’s dwelling

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loan holder or servicer incorporating the offer of mortgage assistance relief that a Defendant

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obtained from the consumer’s dwelling loan holder or servicer on the consumer’s behalf.

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REQUIRED DISCLOSURES

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III.

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

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actual notice of this Order by personal service or otherwise, whether acting directly or

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indirectly, in connection with the advertising, marketing, promoting, or offering for sale of

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any mortgage assistance relief services, are hereby restrained and enjoined from engaging in

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the following conduct:
A. Failing to disclose the following information in all general commercial communications:

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1. “[Name of Company] is not associated with the government, and our service is not
approved by the government or your lender;” and
2. “Even if you accept this offer and use our service, your lender may not agree to
change your loan;”
B. Failing to disclose the following information in all consumer-specific commercial
communications:

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1. “You may stop doing business with us at any time. You may accept or reject the offer

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of mortgage assistance we obtain from your lender [or servicer]. If you reject the

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offer, you do not have to pay us. If you accept the offer, you will have to pay us

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[insert amount or method for calculating the amount] for our services.” For the

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purposes of this section, the amount “you will have to pay” shall consist of the total

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amount the consumer must pay to purchase, receive, and use all of the mortgage

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assistance relief services that are the subject of the sales offer, including but not

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limited to, all fees and charges;

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2. “[Name of company] is not associated with the government, and our service is not

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approved by the government or your lender;”

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3.

“Even if you accept this offer and use our service, your lender may not agree to
change your loan;” and

4. “If you stop paying your mortgage, you could lose your home and damage your
credit.”
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

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

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and enjoined from:

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A. Selling, renting, leasing, transferring, or otherwise disclosing, the name, address, birth

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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

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Defendant obtained in connection with any activity that pertains to the subject matter of
this Order; and
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

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identifying information of any person that any Defendant obtained in connection with any
activity that pertains to the subject matter of this Order.

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C. 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

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

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the manner required by the Federal Rules of Civil Procedure and by any protective order

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in the case.
ASSET FREEZE

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IT IS FURTHER ORDERED that:

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A. Except as set forth in Section V.B of this Order, Defendants, Defendants’ officers, agents,

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employees, and attorneys, and all other Persons in active concert or participation with any

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

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

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

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granting a lien or security interest or other interest in, or otherwise disposing of any

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Assets that are (1) owned or controlled, directly or indirectly, by any Defendant; (2)

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held, in part or in whole, for the benefit of any Defendant; (3) in the actual or

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constructive possession of any Defendant; or (4) owned or controlled by, in the actual

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or constructive possession of, or otherwise held for the benefit of, any corporation,

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partnership, asset protection trust, or other entity that is directly or indirectly owned,
managed or controlled by any Defendant.

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

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storage facilities titled in the name of any Defendant or subject to access by any

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Defendant, except as necessary to comply with written requests from the Receiver

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acting pursuant to its authority under this Order;

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3. Incurring charges or cash advances on any credit, debit, or ATM card issued in the
name, individually or jointly, of any Corporate Defendant or any corporation,

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partnership, or other entity directly or indirectly owned, managed, or controlled by
any Defendant or of which any Defendant is an officer, director, member, or

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manager. This includes any corporate bankcard or corporate credit card account for

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which any Defendant is, or was on the date that this Order was signed, an authorized

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signor; or

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4. Cashing any checks or depositing any money orders or cash received from
consumers, clients, or customers of any Defendant.

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

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the time this Order is entered; and (2) Assets obtained by Defendants after this Order

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is entered if those Assets are derived from any activity that is the subject of the

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Complaint in this matter or that is prohibited by this Order. This Section does not

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prohibit any transfers to the Receiver or repatriation of foreign Assets specifically

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required by this order.

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B. The Individual Defendants each may retain and spend income received from employment

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unrelated to mortgage assistance relief services performed after the date of entry of this
Order. Further, the Individual Defendants each may retain and spend assets acquired by

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loan or gift after the date of entry of this Order only after identifying such assets to FTC
counsel. This section does not apply to loans or gifts valued at less than $500.
DUTIES OF ASSET HOLDERS AND OTHER THIRD PARTIES

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IT IS FURTHER ORDERED that any financial or brokerage institution, Electronic Data

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Host, credit card processor, payment processor, merchant bank, acquiring bank, independent

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sales organization, third party processor, payment gateway, insurance company, business

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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,

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by 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

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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

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controlled by any Defendant; (b) holds, controls, or maintains custody of any Document or

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Asset associated with credits, debits or charges made on behalf of any Defendant, including

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reserve funds held by payment processors, credit card processors, merchant banks, acquiring

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banks, independent sales organizations, third party processors, payment gateways, insurance

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companies, or other entities; or (c) has held, controlled, or maintained custody of any such

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Document, Asset, or account at any time since the date of entry of this Order shall:

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

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

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relinquishment, conversion, sale, or other disposal of any such Document or Asset, as

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well as all Documents or other property related to such Assets, except for those identified

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in Section V.B of this Order or except as directed by further order of this Court or as

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directed in writing by the Receiver regarding Assets owned by, held in the name of, for

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the benefit of, or otherwise controlled by any Receivership Entity;

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

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

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jointly, or otherwise subject to access by any Defendant;

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C. Provide FTC counsel and the Receiver, within three (3) days of receiving a copy of this
Order, a sworn statement setting forth:

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1. The identification number of each such account or Asset;

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2. The balance of each such account, or a description of the nature and value of each

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such Asset as of the close of business on the day on which this Order is served, and, if
the account or other Asset has been closed or removed, the date closed or removed,
the total funds removed in order to close the account, and the name of the person or

15
16

entity to whom such account or other Asset was remitted; and

17

3. The identification of any safe deposit box, commercial mail box, or storage facility

18

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

19

otherwise subject to access by any Defendant; and

20
21

D. Upon the request of FTC counsel or the Receiver, promptly provide FTC counsel and the
Receiver with copies of all records or other Documents pertaining to such account or

22
Asset, including originals or copies of account applications, account statements, signature

23
24
25

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,

26
27
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1
2

currency transaction reports, 1099 forms, and all logs and records pertaining to safe
deposit boxes, commercial mail boxes, and storage facilities.

3

E. Provided, that a third party asset holder does not have to provide the information required

4

in sub-sections C and D if (1) the third party asset holder has complied with the similar

5

provision set forth in the TRO; and (2) the information provided has not changed.

6

FINANCIAL DISCLOSURES

7
VII.

8
9

IT IS FURTHER ORDERED that each Defendant, within five (5) days of service of this
Order upon them, shall prepare and deliver to FTC counsel and the Receiver:

10

A. completed financial statements on the forms attached to this Order as Attachment A

11

(Financial Statement of Individual Defendant) for each Individual Defendant, and

12

Attachment B (Financial Statement of Corporate Defendant) for each Corporate

13
14

Defendant; and
B. completed Attachment C (IRS Form 4506, Request for Copy of a Tax Return) for each

15
16
17

Individual and Corporate Defendant.
C. Provided, that Defendants do not have to provide such financial reports if (1) they have

18

complied with the similar provision set forth in the TRO; and (2) the information

19

provided has not changed.

20
21

VIII.

FOREIGN ASSET REPATRIATION
IT IS FURTHER ORDERED that within five (5) days following the service of this Order,

22
each Defendant shall:

23
24

A. Provide FTC counsel and the Receiver with a full accounting, verified under oath and

25

accurate as of the date of this Order, of all Assets, Documents, and accounts outside of

26

the United States which are: (1) titled in the name, individually or jointly, of any

27
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Defendant; (2) held by any person or entity for the benefit of any Defendant or for the

1
2

benefit of, any corporation, partnership, asset protection trust, or other entity that is

3

directly or indirectly owned, managed or controlled by any Defendant; or (3) under the

4

direct or indirect control, whether jointly or singly, of any Defendant;

5

B. Take all steps necessary to provide FTC counsel and Receiver access to all Documents

6

and records that may be held by third parties located outside of the territorial United

7
States of America, including signing the Consent to Release of Financial Records

8

appended to this Order as Attachment D.

9
10

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

11

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

12

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

13
14

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

15
16

control, whether jointly or singly, of any Defendant; and

17

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

18

FTC of the name and location of the financial institution or other entity that is the

19

recipient of such Documents or Assets; and (2) serve this Order on any such financial

20

institution or other entity.

21

NON-INTERFERENCE WITH REPATRIATION

22
IX.

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

23
24

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

25

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

26

and enjoined from taking any action, directly or indirectly, which may result in the

27
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1

encumbrance or dissipation of foreign Assets, or in the hindrance of the repatriation required

2

by this Order, including, but not limited to:

3

A. Sending any communication or engaging in any other act, directly or indirectly, that

4

results in a determination by a foreign trustee or other entity that a “duress” event has

5

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

6

Assets have been fully repatriated pursuant to this Order; or

7
8
9

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

10

a court order, until such time that all Defendants’ Assets have been fully repatriated

11

pursuant to this Order.

12
13 X.
14

CONSUMER CREDIT REPORTS
IT IS FURTHER ORDERED that the FTC may obtain credit reports concerning any
Defendants pursuant to Section 604(a)(1) of the Fair Credit Reporting Act, 15 U.S.C.

15
16
17

1681b(a)(1), and that, upon written request, any credit reporting agency from which such
reports are requested shall provide them to the FTC.
PRESERVATION OF RECORDS

18
19XI.

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

20

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

21

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

22
and enjoined from:

23
24

A. Destroying, erasing, falsifying, writing over, mutilating, concealing, altering, transferring,

25

or otherwise disposing of, in any manner, directly or indirectly, Documents that relate to:

26

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

27
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1

Defendant; (2) the business practices or finances of entities directly or indirectly under

2

the control of any Defendant; or (3) the business practices or finances of entities directly

3

or indirectly under common control with any other Defendant; and

4
5
6

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.

7
8
XII.

9

REPORT OF NEW BUSINESS ACTIVITY
IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees,

10

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

11

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

12

and enjoined from creating, operating, or exercising any control over any business entity,

13
14

whether newly formed or previously inactive, including any partnership, limited partnership,
joint venture, sole proprietorship, or corporation, without first providing FTC counsel and the

15
16

Receiver with a written statement disclosing: (1) the name of the business entity; (2) the

17

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

18

officers, directors, principals, managers, and employees; and (4) a detailed description of the

19

business entity’s intended activities.

20
21

XIII.

CONTINUATION OF RECEIVERSHIP
IT IS FURTHER ORDERED that Thomas W. McNamara shall continue to serve as

22
receiver of the Receivership Entities with full powers of an equity receiver. The Receiver

23
24

shall be solely the agent of this Court in acting as Receiver under this Order.

25
26
27
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Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 19 of 63

DUTIES AND AUTHORITY OF RECEIVER

1
XIV.
2

IT IS FURTHER ORDERED that the Receiver is directed and authorized to accomplish

3

the following:

4

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

5
6

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

7
8
9
10
11
12
13
14

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;
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

15
16

have full power to sue for, collect, and receive, all Assets of the Receivership Entities and

17

of other persons or entities whose interests are now under the direction, possession,

18

custody, or control of, the Receivership Entities. Provided, however, that the Receiver

19

shall not attempt to collect any amount from a consumer if the Receiver believes the

20

consumer’s debt to the Receivership Entities has resulted from the deceptive acts or

21

practices or other violations of law alleged in the Complaint in this matter, without prior

22
Court approval;

23
24

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

25

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

26

Documents. The Receiver shall: divert mail; preserve all Documents of the Receivership

27
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1

Entities that are accessible via electronic means such as online access to financial

2

accounts and access to electronic documents held onsite or by Electronic Data Hosts, by

3

changing usernames, passwords or other log-in credentials; take possession of all

4

electronic Documents of the Receivership Entities stored onsite or remotely; take

5

whatever steps necessary to preserve all such Documents; and obtain the assistance of the

6

FTC’s Digital Forensic Unit for the purpose of obtaining electronic documents stored

7
8
9

onsite or remotely.
E. Choose, engage, and employ attorneys, accountants, appraisers, and other independent

10

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

11

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

12

F. Make payments and disbursements from the receivership estate that are necessary or

13
14

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

15
16

advisable in discharging his or her duties as Receiver. The Receiver shall apply to the

17

Court for prior approval of any payment of any debt or obligation incurred by the

18

Receivership Entities prior to the date of entry of this Order, except payments that the

19

Receiver deems necessary or advisable to secure Assets of the Receivership Entities, such

20

as rental payments;

21

G. Take all steps necessary to secure and take exclusive custody of each location from which

22
the Receivership Entities operate their businesses. Such steps may include, but are not

23
24

limited to, any of the following, as the Receiver deems necessary or advisable: (1)

25

securing the location by changing the locks and alarm codes and disconnecting any

26

internet access or other means of access to the computers, servers, internal networks, or

27
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Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 21 of 63

1

other records maintained at that location; and (2) requiring any persons present at the

2

location to leave the premises, to provide the Receiver with proof of identification, and/or

3

to demonstrate to the satisfaction of the Receiver that such persons are not removing from

4

the premises Documents or Assets of the Receivership Entities. Law enforcement

5

personnel, including, but not limited to, police or sheriffs, may assist the Receiver in

6

implementing these provisions in order to keep the peace and maintain security. If

7
8
9
10
11
12
13
14

requested by the Receiver, the United States Marshal will provide appropriate and
necessary assistance to the Receiver to implement this Order and is authorized to use any
necessary and reasonable force to do so;
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 FTC representatives, agents, and
assistants, as well as Defendants and their representatives;

15
16

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

17

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

18

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

19
20
21

K. 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

22
Assets of the Receivership Entities, or to carry out the Receiver’s mandate under this

23
24

Order, including but not limited to, actions challenging fraudulent or voidable transfers;

25
26
27
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1

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

2

conduct discovery in this action on behalf of the receivership estate, in addition to

3

obtaining other discovery as set forth in this Order;

4
5
6

M. 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
designated accounts and shall make all payments and disbursements from the

7
8
9

receivership estate from such accounts. The Receiver shall serve copies of monthly
account statements on all parties;

10

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

11

O. Allow the FTC’s representatives, agents, and assistants, as well as Defendants’

12
13
14

representatives and Defendants themselves, reasonable access to the premises of the
Receivership Entities, or any other premises where the Receivership Entities conduct
business. The purpose of this access shall be to inspect and copy any and all books,

15
16

records, Documents, accounts, and other property owned by, or in the possession of, the

17

Receivership Entities or their agents. The Receiver shall have the discretion to determine

18

the time, manner, and reasonable conditions of such access;

19
20
21

P. Allow the FTC’s representatives, agents, and assistants, as well as Defendants and their
representatives reasonable access to all Documents in the possession, custody, or control
of the Receivership Entities;

22
Q. Cooperate with reasonable requests for information or assistance from any state or federal

23
24

civil or criminal law enforcement agency;

25

R. Continue and conduct the business of the Receivership Entities in such manner, to such

26

extent, and for such duration as the Receiver may in good faith deem to be necessary or

27
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Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 23 of 63

1

appropriate to operate the business profitably and lawfully, if at all; provided, however,

2

that the continuation and conduct of the business shall be conditioned upon the

3

Receiver’s good faith determination that the businesses can be lawfully operated at a

4

profit using the assets of the receivership estate; provided, further, that if the Receiver

5

makes the good faith determination that the business of the Receivership Entities cannot

6

be lawfully operated at a profit, the Receiver is directed and authorized to wind up the

7
8
9

business affairs of the Receivership Entities, including, where appropriate, liquidating all
assets. The Receiver may take any necessary measures to preserve the assets of the

10

receivership estate, including the sale of property and the termination of contracts,

11

including but not limited to leases of business premises;

12
13
14

S. 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

15
16

may delay providing such notice until the Receiver has established control of the

17

nonparty entity and its assets and records, if the Receiver determines that notice to the

18

entity or the parties before the Receiver establishes control over the entity may result in

19

the destruction of records, dissipation of assets, or any other obstruction of the Receiver’s

20

control of the entity; and

21

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

22
profitably, take all steps necessary to ensure that any of the Receivership Entities’ web

23
24

pages or websites relating to the activities alleged in the Complaint cannot be accessed by

25

the public, or are modified for consumer education and/or informational purposes, and

26

take all steps necessary to ensure that any telephone numbers associated with the

27
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Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 24 of 63

1
2
3

Receivership Entities cannot be accessed by the public, or are answered solely to provide
consumer education or information regarding the status of operations.
TRANSFER OF RECEIVERSHIP PROPERTY TO RECEIVER

4
XV.

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

5

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

6

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

7
8
9

Receiver 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

10

possession, custody, and control of, the following:

11

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

12

B. All Documents of or pertaining to the Receivership Entities;

13
14

C. All computers, electronic devices, mobile devices and machines used to conduct the
business of the Receivership Entities;

15
16

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

17

under the direction, possession, custody, or control of the Receivership Entities; and

18

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

19

Assets or Documents of or pertaining to the Receivership Entities, including access to

20

their business premises, means of communication, accounts, computer systems (onsite

21

and remote), Electronic Data Hosts, or other property.

22
F. In the event that any person or entity fails to deliver or transfer any Asset or Document,

23
24

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

25

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

26

contempt citation.

27
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Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 25 of 63

PROVISION OF INFORMATION TO RECEIVER

1
XVI.
2

IT IS FURTHER ORDERED that Defendants shall immediately provide to the Receiver:

3

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

4

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

5

Receivership Entity;

6

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

7
8
9

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

10

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

11

product, including files where such documents are likely to be located, authors or

12

recipients of such documents, and search terms likely to identify such electronic

13
14

documents.
COOPERATION WITH THE RECEIVER

15
XVII.

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

17

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

18

concert or participation with any of them, and any other person with possession, custody, or

19

control of property of or records relating to the Receivership Entities who receive actual

20

notice of this Order shall fully cooperate with and assist the Receiver. This cooperation and

16

21

assistance shall include, but is not limited to, providing information to the Receiver that the

22
Receiver deems necessary to exercise the authority and discharge the responsibilities of the

23
24

Receiver under this Order; providing any keys, codes, user names and passwords required to

25

access any computers, electronic devices, mobile devices, and machines (onsite or remotely)

26

and any cloud account (including specific method to access account) or electronic file in any

27
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Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 26 of 63

1

medium; advising all persons who owe money to any Receivership Entity that all debts

2

should be paid directly to the Receiver; and transferring funds at the Receiver’s direction and

3

producing records related to the Assets and sales of the Receivership Entities.

4

NON-INTERFERENCE WITH THE RECEIVER

5
XVIII.

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

6
7

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

8

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

9

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

10

directly or indirectly:

11

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

12

of, the Assets or Documents subject to the receivership;

13
14
15

B. Transacting any of the business of the Receivership Entities;
C. Transferring, receiving, altering, selling, encumbering, pledging, assigning, liquidating,

16

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

17

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

18
19
20

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.
STAY OF ACTIONS

21
XIX.

IT IS FURTHER ORDERED that, except by leave of this Court, during the pendency of

23

the receivership ordered herein, Defendants, Defendants’ officers, agents, employees,

24

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

25

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

26

affiliates, and all investors, creditors, stockholders, lessors, customers and other persons

22

27
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Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 27 of 63

1

seeking to establish or enforce any claim, right, or interest against or on behalf of

2

Defendants, and all others acting for or on behalf of such persons, are hereby enjoined from

3

taking action that would interfere with the exclusive jurisdiction of this Court over the Assets

4

or Documents of the Receivership Entities, including, but not limited to:

5

A. Filing or assisting in the filing of a petition for relief under the Bankruptcy Code, 11

6

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

7
8
9

Receivership Entities;
B. Commencing, prosecuting, or continuing a judicial, administrative, or other action or

10

proceeding against the Receivership Entities, including the issuance or employment of

11

process against the Receivership Entities, except that such actions may be commenced if

12

necessary to toll any applicable statute of limitations;

13
14

C. Filing or enforcing any lien on any asset of the Receivership Entities, taking or
attempting to take possession, custody, or control of any Asset of the Receivership

15
16

Entities; or attempting to foreclose, forfeit, alter, or terminate any interest in any Asset of

17

the Receivership Entities, whether such acts are part of a judicial proceeding, are acts of

18

self-help, or otherwise;

19

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

20

of a criminal action or proceeding; (2) the commencement or continuation of an action or

21

proceeding by a governmental unit to enforce such governmental unit’s police or

22
regulatory power; or (3) the enforcement of a judgment, other than a money judgment,

23
24
25

obtained in an action or proceeding by a governmental unit to enforce such governmental
unit’s police or regulatory power.

26
27
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1

COMPENSATION OF RECEIVER

XX.
2

IT IS FURTHER ORDERED that the Receiver and all personnel hired by the Receiver as

3

herein authorized, including counsel to the Receiver and accountants, are entitled to

4

reasonable compensation for the performance of duties pursuant to this Order and for the cost

5

of actual out-of-pocket expenses incurred by them, from the Assets now held by, in the

6

possession or control of, or which may be received by, the Receivership Entities. The

7
8
9

Receiver shall file with the Court and serve on the parties periodic requests for the payment
of such reasonable compensation, with the first such request filed no more than sixty (60)

10

days after the date of entry of this Order. The Receiver shall not increase the hourly rates

11

used as the bases for such fee applications without prior approval of the Court.

12
13
XXI.
14

RECEIVER’S BOND
IT IS FURTHER ORDERED that the bond in the amount of $10,000 previously filed by
the Receiver shall remain in effect, conditioned that the Receiver will well and truly perform

15
16
17

the duties of the office and abide by and perform all acts the Court directs..
RECEIVER’S REPORTS

XXII.
18

IT IS FURTHER ORDERED that the Receiver shall report periodically to this Court,

19

regarding (1) the steps taken by the Receiver to implement the terms of this Order; (2) the

20

value of all liquidated and unliquidated assets of the Receivership Entities; (3) the sum of all

21

liabilities of the Receivership Entities; (4) the steps the Receiver intends to take in the future

22
to (a) prevent any diminution in the value of assets of the Receivership Entities, (b) pursue

23
24

receivership assets from third parties, and (c) adjust the liabilities of the Receivership

25

Entities, if appropriate; (5) whether the business of the Receivership Entities can be operated

26

lawfully and profitably; and (6) any other matters that the Receiver believes should be

27
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1

brought to the Court’s attention. Provided, however, that if any of the required information

2

would hinder the Receiver’s ability to pursue receivership assets, the portions of the

3

Receiver’s report containing such information may be filed under seal and not served on the

4

parties.

5
6

XXIII.

DISTRIBUTION OF ORDER BY DEFENDANTS
IT IS FURTHER ORDERED that Defendants shall immediately provide a copy of this

7
8
9

Order to each affiliate, telemarketer, marketer, sales entity, successor, assign, member,
officer, director, employee, agent, independent contractor, client, attorney, spouse,

10

subsidiary, division, and representative of any Defendant, and shall, within ten (10) days

11

from the date of entry of this Order, and provide the FTC and the Receiver with a sworn

12

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

13
14

the names, physical addresses, phone number, and email addresses of each such person or
entity who received a copy of the Order. Furthermore, Defendants shall not take any action

15
16

that would encourage officers, agents, members, directors, employees, salespersons,

17

independent contractors, attorneys, subsidiaries, affiliates, successors, assigns or other

18

persons or entities in active concert or participation with them to disregard this Order or

19

believe that they are not bound by its provisions.

20
21

XXIV.

SERVICE OF THIS ORDER
IT IS FURTHER ORDERED that copies of this Order may be served by any means,

22
including facsimile transmission, electronic mail or other electronic messaging, personal or

23
24

overnight delivery, U.S. Mail or FedEx, by agents and employees of the FTC, by any law

25

enforcement agency, or by private process server, upon any Defendant or any Person

26

(including any financial institution) that may have possession, custody or control of any

27
Page 29 of 30

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 30 of 63

1

Asset or Document of any Defendant, or that may be subject to any provision of this Order

2

pursuant to Rule 65(d)(2) of the Federal Rules of Civil Procedure. For purposes of this

3

Section, service upon any branch, subsidiary, affiliate or office of any entity shall effect

4

service upon the entire entity.

5
CORRESPONDENCE AND SERVICE ON THE FTC

6
XXV.IT IS FURTHER ORDERED that, for the purpose of this Order, all correspondence and

7
8

service of pleadings on the FTC shall be addressed to: Adam M. Wesolowski and Gregory A.

9

Ashe, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20850.

10

Telephone: [phone] (Wesolowski); Telephone: [phone] (Ashe); Facsimile: 202-

11

326-3768; Email: [e-mail]; [e-mail] .

12

RETENTION OF JURISDICTION

13
XXVI.

14
15
16

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for all
purposes.
IT IS SO ORDERED.

17
18

___________________________________
JAMES C. MAHAN
UNITED STATES DISTRICT JUDGE

19
20

February 20, 2018
Dated:____________________

21
22
23
24
25
26
27
Page 30 of 30

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 31 of 63

ATTACHMENT A

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 32 of 63
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

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 33 of 63
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

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 34 of 63
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

$
$
$
$

/

/

$

/

/

$

Initials:
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Federal Trade Commission Financial Statement of Individual Defendant

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 35 of 63
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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3 of 10

Federal Trade Commission Financial Statement of Individual Defendant

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 36 of 63
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
$

Initials:
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Federal Trade Commission Financial Statement of Individual Defendant

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 37 of 63
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
/
/

Initials:
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Federal Trade Commission Financial Statement of Individual Defendant

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 38 of 63
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

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 39 of 63
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

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 40 of 63
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

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 41 of 63
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

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 42 of 63
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

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Federal Trade Commission Financial Statement of Individual Defendant

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 43 of 63

ATTACHMENT B

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 44 of 63
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.

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 45 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 46 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 47 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 48 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 49 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 50 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 51 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 52 of 63

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 $_______________________
Name & Address of Financial Institution

Signator(s) on Account

Account No.

Current
Balance
_____________________________________ _______________________________ ______________ $___________
_____________________________________ _______________________________ ______________ $___________
_____________________________________ _______________________________ ______________ $___________
_____________________________________ _______________________________ ______________ $___________

Page 9

Initials __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 53 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 54 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 55 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 56 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 57 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 58 of 63

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 __________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 59 of 63

ATTACHMENT C

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 60 of 63

CONSENT TO RELEASE FINANCIAL RECORDS
I, ____________________________________, of ________________________
___________________________________________ (City, State), do hereby direct any bank,
saving and loan association, credit union, depository institution, finance company, commercial
lending company, credit card processor, credit card processing entity, automated clearing house,
network transaction processor, bank debit processing entity, brokerage house, escrow agent,
money market or mutual fund, title company, commodity trading company, trustee, or person
that holds, controls, or maintains custody of assets, wherever located, that are owned or
controlled by me or at which there is an account of any kind upon which I am authorized to
draw, and its officers, employees, and agents, to disclose all information and deliver copies of all
documents of very nature in its possession or control which relate to the said accounts to any
attorney of the Federal Trade Commission, and to give evidence relevant thereto, in the matter of
the Federal Trade Commission v. Consumer Defense, LLC, et al., now pending in the United
States District Court of 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 Unites States of
America which restrict or prohibit disclosure of bank or other financial information without the
consent of the holder of the account, and shall be construed as consent with respect hereto, and
the same shall apply to any of the accounts for which I may be a relevant principal.

Dated:____________________________

Signature:_________________________________
Printed Name:______________________________

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 61 of 63

ATTACHMENT D

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 62 of 63
Form

4506

(July 2017)
Department of the Treasury
Internal Revenue Service

Request for Copy of Tax Return
Do not sign this form unless all applicable lines have been completed.
Request may be rejected if the form is incomplete or illegible.
For more information about Form 4506, visit www.irs.gov/form4506.

OMB No. 1545-0429

Tip. You may be able to get your tax return or return information from other sources. If you had your tax return completed by a paid preparer, they
should be able to provide you a copy of the return. The IRS can provide a Tax Return Transcript for many returns free of charge. The transcript
provides most of the line entries from the original tax return and usually contains the information that a third party (such as a mortgage company)
requires. See Form 4506-T, Request for Transcript of Tax Return, or you can quickly request transcripts by using our automated self-help service
tools. Please visit us at IRS.gov and click on “Get a Tax Transcript...” or call 1-800-908-9946.
1a Name shown on tax return. If a joint return, enter the name shown first.

1b First social security number on tax return,
individual taxpayer identification number, or
employer identification number (see instructions)

2a If a joint return, enter spouse’s name shown on tax return.

2b Second social security number or individual
taxpayer identification number if joint tax return

3 Current name, address (including apt., room, or suite no.), city, state, and ZIP code (see instructions)

4 Previous address shown on the last return filed if different from line 3 (see instructions)

5 If the tax return is to be mailed to a third party (such as a mortgage company), enter the third party’s name, address, and telephone number.

Caution: If the tax return is being mailed to a third party, ensure that you have filled in lines 6 and 7 before signing. Sign and date the form once you
have filled in these lines. Completing these steps helps to protect your privacy. Once the IRS discloses your tax return to the third party listed on line
5, the IRS has no control over what the third party does with the information. If you would like to limit the third party's authority to disclose your return
information, you can specify this limitation in your written agreement with the third party.
6

Tax return requested. Form 1040, 1120, 941, etc. and all attachments as originally submitted to the IRS, including Form(s) W-2,
schedules, or amended returns. Copies of Forms 1040, 1040A, and 1040EZ are generally available for 7 years from filing before they are
destroyed by law. Other returns may be available for a longer period of time. Enter only one return number. If you need more than one
type of return, you must complete another Form 4506.
Note: If the copies must be certified for court or administrative proceedings, check here .

.

.

.

.

.

.

.

.

.

.

.

.

.

7

Year or period requested. Enter the ending date of the year or period, using the mm/dd/yyyy format. If you are requesting more than
eight years or periods, you must attach another Form 4506.

8

Fee. There is a $50 fee for each return requested. Full payment must be included with your request or it will
be rejected. Make your check or money order payable to “United States Treasury.” Enter your SSN, ITIN,
or EIN and “Form 4506 request” on your check or money order.

a
b
c
9

$
Cost for each return . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of returns requested on line 7 . . . . . . . . . . . . . . . . . . . . . .
Total cost. Multiply line 8a by line 8b . . . . . . . . . . . . . . . . . . . . . .
$
If we cannot find the tax return, we will refund the fee. If the refund should go to the third party listed on line 5, check here .

.

50.00

.

.

.

.

Caution: Do not sign this form unless all applicable lines have been completed.
Signature of taxpayer(s). I declare that I am either the taxpayer whose name is shown on line 1a or 2a, or a person authorized to obtain the tax return
requested. If the request applies to a joint return, at least one spouse must sign. If signed by a corporate officer, 1 percent or more shareholder, partner,
managing member, guardian, tax matters partner, executor, receiver, administrator, trustee, or party other than the taxpayer, I certify that I have the authority to
execute Form 4506 on behalf of the taxpayer. Note: This form must be received by IRS within 120 days of the signature date.

Signatory attests that he/she has read the attestation clause and upon so reading
declares that he/she has the authority to sign the Form 4506. See instructions.

Sign
Here

Signature (see instructions)

Phone number of taxpayer on line
1a or 2a

Date

Title (if line 1a above is a corporation, partnership, estate, or trust)

Spouse’s signature

For Privacy Act and Paperwork Reduction Act Notice, see page 2.

Date
Cat. No. 41721E

Form 4506 (Rev. 7-2017)

Case 2:18-cv-00030-JCM-PAL Document 53-1 Filed 02/16/18 Page 63 of 63
Form 4506 (Rev. 7-2017)

Page

Section references are to the Internal Revenue Code
unless otherwise noted.

Chart for all other returns

Future Developments

If you lived in
or your business
was in:

For the latest information about Form 4506 and its
instructions, go to www.irs.gov/form4506.
Information about any recent developments affecting
Form 4506, Form 4506-T and Form 4506T-EZ will be
posted on that page.

General Instructions
Caution: Do not sign this form unless all applicable
lines have been completed.
Purpose of form. Use Form 4506 to request a copy
of your tax return. You can also designate (on line 5)
a third party to receive the tax return.
How long will it take? It may take up to 75
calendar days for us to process your request.
Tip. Use Form 4506-T, Request for Transcript of Tax
Return, to request tax return transcripts, tax account
information, W-2 information, 1099 information,
verification of nonfiling, and records of account.
Automated transcript request. You can quickly
request transcripts by using our automated self-help
service tools. Please visit us at IRS.gov and click on
“Get a Tax Transcript...” or call 1-800-908-9946.
Where to file. Attach payment and mail Form 4506
to the address below for the state you lived in, or the
state your business was in, when that return was
filed. There are two address charts: one for
individual returns (Form 1040 series) and one for all
other returns.
If you are requesting a return for more than one
year or period and the chart below shows two
different addresses, send your request to the
address based on the address of your most recent
return.

Chart for individual returns
(Form 1040 series)
If you filed an
individual return
and lived in:
Alabama, Kentucky,
Louisiana, Mississippi,
Tennessee, Texas, a
foreign country, American
Samoa, Puerto Rico,
Guam, the
Commonwealth of the
Northern Mariana Islands,
the U.S. Virgin Islands, or
A.P.O. or F.P.O. address
Alaska, Arizona,
Arkansas, California,
Colorado, Hawaii, Idaho,
Illinois, Indiana, Iowa,
Kansas, Michigan,
Minnesota, Montana,
Nebraska, Nevada, New
Mexico, North Dakota,
Oklahoma, Oregon,
South Dakota, Utah,
Washington, Wisconsin,
Wyoming
Connecticut,
Delaware, District of
Columbia, Florida,
Georgia, Maine,
Maryland,
Massachusetts,
Missouri, New
Hampshire, New Jersey,
New York, North
Carolina, Ohio,
Pennsylvania, Rhode
Island, South Carolina,
Vermont, Virginia, West
Virginia

Mail to:

Internal Revenue Service
RAIVS Team
Stop 6716 AUSC
Austin, TX 73301

Alabama, Alaska,
Arizona, Arkansas,
California, Colorado,
Florida, Hawaii, Idaho,
Iowa, Kansas, Louisiana,
Minnesota, Mississippi,
Missouri, Montana,
Nebraska, Nevada,
New Mexico,
North Dakota,
Oklahoma, Oregon,
South Dakota, Texas,
Utah, Washington,
Wyoming, a foreign
country, American
Samoa, Puerto Rico,
Guam, the
Commonwealth of the
Northern Mariana
Islands, the U.S. Virgin
Islands, or A.P.O. or
F.P.O. address
Connecticut, Delaware,
District of Columbia,
Georgia, Illinois, Indiana,
Kentucky, Maine,
Maryland,
Massachusetts,
Michigan, New
Hampshire, New Jersey,
New York, North
Carolina,
Ohio, Pennsylvania,
Rhode Island, South
Carolina, Tennessee,
Vermont, Virginia, West
Virginia, Wisconsin

Mail to:

Internal Revenue Service
RAIVS Team
P.O. Box 9941
Mail Stop 6734
Ogden, UT 84409

Partnerships. Generally, Form 4506 can be
signed by any person who was a member of the
partnership during any part of the tax period
requested on line 7.
All others. See section 6103(e) if the taxpayer has
died, is insolvent, is a dissolved corporation, or if a
trustee, guardian, executor, receiver, or
administrator is acting for the taxpayer.

Documentation. For entities other than individuals,
you must attach the authorization document. For
example, this could be the letter from the principal
officer authorizing an employee of the corporation or
the letters testamentary authorizing an individual to
act for an estate.

Internal Revenue Service
RAIVS Team
P.O. Box 145500
Stop 2800 F
Cincinnati, OH 45250

Specific Instructions
Line 1b. Enter your employer identification number
(EIN) if you are requesting a copy of a business
return. Otherwise, enter the first social security
number (SSN) or your individual taxpayer
identification number (ITIN) shown on the return. For
example, if you are requesting Form 1040 that
includes Schedule C (Form 1040), enter your SSN.

Line 4. Enter the address shown on the last return
filed if different from the address entered on line 3.
Note: If the addresses on lines 3 and 4 are different
and you have not changed your address with the
IRS, file Form 8822, Change of Address. For a
business address, file Form 8822-B, Change of
Address or Responsible Party — Business.
Signature and date. Form 4506 must be signed and
dated by the taxpayer listed on line 1a or 2a. The
IRS must receive Form 4506 within 120 days of the
date signed by the taxpayer or it will be rejected.
Ensure that all applicable lines are completed before
signing.
You must check the box in the
signature area to acknowledge you
have the authority to sign and request
CAUTION the information. The form will not be
processed and returned to you if the box is
unchecked.

!

Internal Revenue Service
RAIVS Team
Stop 6705 P-6
Kansas City, MO
64999

Corporations. Generally, Form 4506 can be
signed by: (1) an officer having legal authority to bind
the corporation, (2) any person designated by the
board of directors or other governing body, or (3)
any officer or employee on written request by any
principal officer and attested to by the secretary or
other officer. A bona fide shareholder of record
owning 1 percent or more of the outstanding stock
of the corporation may submit a Form 4506 but must
provide documentation to support the requester's
right to receive the information.

Note: If you are Heir at law, Next of kin, or
Beneficiary you must be able to establish a material
interest in the estate or trust.

Line 3. Enter your current address. If you use a P.O.
box, please include it on this line 3.

Internal Revenue Service
RAIVS Team
Stop 37106
Fresno, CA 93888

2

Individuals. Copies of jointly filed tax returns may
be furnished to either spouse. Only one signature is
required. Sign Form 4506 exactly as your name
appeared on the original return. If you changed your
name, also sign your current name.

Signature by a representative. A representative
can sign Form 4506 for a taxpayer only if this
authority has been specifically delegated to the
representative on Form 2848, line 5. Form 2848
showing the delegation must be attached to Form
4506.
Privacy Act and Paperwork Reduction Act
Notice. We ask for the information on this form to
establish your right to gain access to the requested
return(s) under the Internal Revenue Code. We need
this information to properly identify the return(s) and
respond to your request. If you request a copy of a
tax return, sections 6103 and 6109 require you to
provide this information, including your SSN or EIN,
to process your request. If you do not provide this
information, we may not be able to process your
request. Providing false or fraudulent information
may subject you to penalties.
Routine uses of this information include giving it to
the Department of Justice for civil and criminal
litigation, and cities, states, the District of Columbia,
and U.S. commonwealths and possessions for use
in administering their tax laws. We may also
disclose this information to other countries under a
tax treaty, to federal and state agencies to enforce
federal nontax criminal laws, or to federal law
enforcement and intelligence agencies to combat
terrorism.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form
or its instructions must be retained as long as their
contents may become material in the administration
of any Internal Revenue law. Generally, tax returns
and return information are confidential, as required
by section 6103.
The time needed to complete and file Form 4506
will vary depending on individual circumstances. The
estimated average time is: Learning about the law
or the form, 10 min.; Preparing the form, 16 min.;
and Copying, assembling, and sending the form
to the IRS, 20 min.
If you have comments concerning the accuracy of
these time estimates or suggestions for making
Form 4506 simpler, we would be happy to hear from
you. You can write to:
Internal Revenue Service
Tax Forms and Publications Division
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224.
Do not send the form to this address. Instead, see
Where to file on this page.