Federal Trade Commission v. AWS, LLC et al

Filing 67

ORDER granting 64 Stipulation to Vacate Real Property and Reject Real Property Leases; Signed by Judge James C. Mahan on 5/7/2018. (Copies have been distributed pursuant to the NEF - JM)

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Case 2:18-cv-00442-JCM-PAL Document 64 Filed 05/03/18 Page 1 of 9 1 2 3 4 5 6 7 8 9 Michael F. Lynch (NV SBN 8555) Michael@LynchLawPractice.com LYNCH LAW PRACTICE, PLLC 3613 S. Eastern Ave. Las Vegas, Nevada 89169 Telephone: (702) 684-6000 Facsimile: (702) 543-3279 Gary Owen Caris (CA SBN 088918) gcaris@btlaw.com BARNES & THORNBURG LLP 2029 Century Park East, Suite 300 Los Angeles, California 90067 Telephone: (310) 284-3880 Facsimile: (310) 284-3894 Attorneys for Temporary Receiver ROBB EVANS & ASSOCIATES LLC 10 11 UNITED STATES DISTRICT COURT 12 DISTRICT OF NEVADA 13 14 15 FEDERAL TRADE COMMISSION, Plaintiff, 16 17 18 19 20 21 22 23 24 25 26 27 28 LP KW Case No. 2:18-cv-00442-JCM-PAL AWS, LLC, a Nevada limited liability company; ADAMS CONSULTING, LLC, a California limited liability company; FBA DISTRIBUTORS, LLC, a Massachusetts limited liability company; FBA STORES, LLC, a Nevada limited liability company; GLOBAL MARKETING SERVICES L.L.C., a Nevada limited liability company; INFO PROS, LLC, a Nevada limited liability company; ONLINE AUCTION LEARNING CENTER, INC., a Massachusetts corporation; ONLINE AUCTION LEARNING CENTER, INC., a Nevada corporation; CHRISTOPHER F. BOWSER, individually and as an officer of FBA DISTRIBUTORS, LLC, FBA STORES, LLC, INFO SOLUTIONS, LLC, ONLINE AUCTION LEARNING CENTER, INC. and ONLINE AUCTION LEARNING CENTER, INC.; ADAM S. BOWSER, individually and as an officer of AWS, LLC, FBA DISTRIBUTORS, LLC, FBA STORES, LLC. INFO SOLUTIONS, LLC, ONLINE STIPULATION TO VACATE REAL PROPERTY AND REJECT REAL PROPERTY LEASES, AND TO AUTHORIZE TEMPORARY RECEIVER TO SELL OR ABANDON PERSONAL PROPERTY OF THE RECEIVERSHIP ENTITIES Case 2:18-cv-00442-JCM-PAL Document 64 Filed 05/03/18 Page 2 of 9 1 2 3 4 5 6 AUCTION LEARNING CENTER, INC. and ONLINE AUCTION LEARNING CENTER, INC.; JODY L. MARSHALL, individually and as an officer of INFO PROS, LLC and INFO SOLUTIONS, LLC; and JEFFERY A. GOMEZ, a/k/a JEFF ADAMS or JEFF ADAM, individually and as an officer of ADAMS CONSULTING, LLC and GLOBAL MARKETING SERVICES L.L.C., Defendants. 7 8 9 Receivership Entities AWC, LLC, a Nevada limited liability company, FBA Distributors, 10 LLC, a Massachusetts limited liability company, FBA Stores, LLC, a Nevada limited liability 11 company, Info Pros, LLC, A Nevada limited liability company, Online Auction Learning Center, 12 Inc., a Massachusetts corporation, Online Auction Learning Center, Inc., a Nevada corporation, 13 Info Solutions, LLC, a Nevada limited liability company (collectively, the “Receivership 14 Entities”), individual defendants Christopher F. Bowser, Adam S. Bowser and Jody Marshall 15 (collectively, the “Individual Defendants,” and together with the Receivership Entities, the 16 “Stipulating Defendants”), by and through their attorneys of record, Randazza Legal Group, 17 PLLC, by Ronald D. Green, Jr., and Temporary Receiver, Robb Evans & Associates LLC 18 (“Temporary Receiver”), by and through its attorneys of record, Barnes & Thornburg LLP, by 19 Gary Owen Caris, enter into this Stipulation to Vacate Real Property and Reject Real Property 20 Leases, and to Authorize Temporary Receiver to Sell or Abandon Personal Property of the 21 Receivership Entities (“Stipulation”) in reference to and in consideration of the following: 22 23 RECITALS A. Robb Evans & Associates LLC became Temporary Receiver over all of 24 the Receivership Entities pursuant to the Temporary Restraining Order (“TRO”) entered March 25 14, 2018 (Doc.29). Pursuant to the TRO, the Temporary Receiver took possession and control of 26 the Receivership Entities on March 16, 2018. 27 B. At the inception of the receivership, the Receivership Entities had various interests in 28 12304191 2 - - Case 2:18-cv-00442-JCM-PAL Document 64 Filed 05/03/18 Page 3 of 9 1 real property as tenants or lessees, as follows: 2 1. Online Auction Learning Center entered into a commercial lease of the real 3 property commonly known as 293 Libbey Industrial Parkway, Weymouth, Massachusetts 4 (“Weymouth Property”). The lease is for a term of three years, commencing November 5 15, 2015. The current monthly rent is $11,893.00. 6 2. FBA Stores, LLC, entered into a commercial lease of the real property 7 commonly known as 3165 N. Moapa Valley Blvd., Logandale, Nevada (“Logandale 8 Property”) on June 1, 2017. The lease agreement is a month-to-month tenancy. The 9 current monthly rent is $1,850.00. 10 3. FBA Stores, LLC entered into a lease agreement of the real property 11 commonly known as 350 South 400 West, Lindon, Utah (“Lindon Property”). The lease 12 agreement is a month-to-month tenancy, commencing December 16, 2017. The current 13 monthly rent is $8,594.63. 14 4. Info Pros, LLC entered into a commercial lease agreement of the real property 15 commonly known as 197 E. California Ave. #260, Las Vegas, Nevada (“Las Vegas 16 Property”). The lease is for a term of five years, commencing January 1, 2018. The base 17 monthly rent is $2,501.03. 18 5. FBA Stores, LLC entered into an office building lease of the real property 19 commonly known as 440 N. Mountain Ave., Suite 212, Upland, California (“Upland 20 Property”). The lease is for a term of 38 months, commencing June 1,2017. The base 21 monthly rent is $3,960.60. (The Weymouth Property, Logandale Property, Lindon 22 Property, Las Vegas Property and Upland Property are collectively referred to as the 23 “Leased Premises.” The agreements referred to in subparagraphs B.l through B.5 are 24 collectively referred to as the “Lease Agreements.”) 25 C. The assets of the Receivership Entities include various items of personal property 26 located at the Leased Premises, although little or no personal property of the Receivership 27 Entities is located at the Las Vegas Property and the Upland Property. The personal property is 28 of limited value and primarily consists of office furniture, office equipment and warehouse LP \w 12304191 - 3 - Case 2:18-cv-00442-JCM-PAL Document 64 Filed 05/03/18 Page 4 of 9 1 2 equipment (“Receivership Entities Personal Property”). D. The Stipulating Defendants have entered into a settlement with the plaintiff, Federal 3 Trade Commission (“FTC”), subject to approval of the FTC. Pursuant to the settlement, the 4 Stipulating Defendants do not intend to operate businesses or otherwise have need for any of the 5 Leased Premises. In order to reduce the ongoing administrative expenses of the receivership 6 estate, the Stipulating Defendants and the Temporary Receiver agree that it is beneficial for the 7 Temporary Receiver to vacate the Leased Premises as soon as practical and to reject the Lease 8 Agreements, as may be necessary or appropriate. Furthermore, in light of the tentative 9 settlement with the FTC, the diminishing value of the Receivership Entities Personal Property 10 over time, and in connection with vacating the Leased Premises, the Stipulating Defendants and 11 the Temporary Receiver agree that it is beneficial for the Temporary Receiver to take steps to 12 liquidate or abandon the Receivership Entities Personal Property as soon as practicable. 13 14 NOW THEREFORE, in consideration of the foregoing, the Stipulating Defendants and the Temporary Receiver, by and through their counsel, do stipulate and agree as follows: 15 16 AGREEMENT 1. The Temporary Receiver shall liquidate the Receivership Entities Personal Property as 17 soon as reasonably practical following entry of an order approving this Stipulation, and without 18 further Court order or hearing, in such a manner as the Temporary Receiver determines to be 19 most cost-effective so as to maximize the recovery to the estate, in the Temporary Receiver’s 20 discretion and business judgment, in one or more public auctions and/or private sales, or any 21 combination thereof, as the Temporary Receiver may determine will maximize value, minimize 22 expense and expedite the sale of the Receivership Entities Personal Property, and all such sales 23 shall be deemed to be authorized under 28 U.S.C. § 2004, 24 2. Any of the Receivership Entities Personal Property that the Temporary Receiver 25 determines in its discretion and business judgment cannot be liquidated for the benefit of the 26 receivership estate may be abandoned by the Temporary Receiver without further notice, hearing 27 or additional court order. 28 LP MV 3. The Temporary Receiver shall vacate the Leased Premises as soon as practical 12304191 4 - - Case 2:18-cv-00442-JCM-PAL Document 64 Filed 05/03/18 Page 5 of 9 1 following entry of an order approving this Stipulation, and to reject the Lease Agreements in such 2 manner as the Temporary Receiver deems necessary or appropriate following entry of an order 3 approving this Stipulation. 4 4. The parties hereto approve the form and content of the proposed order attached hereto 5 as Exhibit 1. 6 Dated: May 2, 2018 7 RONALD D. GREEN, JR. RANDAZZA LEGAL GROUP, PLLC Bv: 8 Ronald D. Green Jr, RONALD D. GREEN, JR. 9 Attorneys for Defendants AWC, LLC, a Nevada limited liability company, FBA Distributors, LLC, a Massachusetts limited liability company, FBA Stores, LLC, a Nevada limited liability company, Info Pros, LLC, A Nevada limited liability company, Online Auction Learning Center, Inc., a Massachusetts corporation, Online Auction Learning Center, Inc., a Nevada corporation, Info Solutions, LLC, a Nevada limited liability, Christopher F. Bowser, Adam S. Bowser and Jody Marshall 10 11 12 13 14 15 16 Dated: May 2, 2018 17 MICHAEL F. LYNCH LYNCH LAW PRACTICE, PLLC 18 GARY OWEN CARIS BARNES & THORNBURG LLP 19 Bv: Gary Owen Can's GARY OWEN CARIS 20 Attorneys for Temporary Receiver ROBB EVANS & ASSOCIATES LLC 21 22 NO OBJECTION: 23 ROBERTO ANGUIZOLA, ESQ. MIRY KIM, ESQ. GREGORY J. EVANS, ESQ. FEDERAL TRADE COMMISSION 24 25 26 27 28 LP \w Bv: Roberto Aneuizola ROBERTO ANGUIZOLA Attorneys for FEDERAL TRADE COMMISSION 12304191 5 - - Case 2:18-cv-00442-JCM-PAL Document 64 Filed 05/03/18 Page 6 of 9 EXHIBIT 1 Case 2:18-cv-00442-JCM-PAL Document 64 Filed 05/03/18 Page 7 of 9 1 2 3 4 5 6 7 8 9 Michael F. Lynch (NV SBN 8555) Michael@LynchLawPraclice.com LYNCH LAW PRACTICE, PLLC 3613 S. Eastern Ave. Las Vegas, Nevada 89169 Telephone: (702) 684-6000 Facsimile: (702) 543-3279 Gary Owen Caris (CA SBN 088918) gcaris@btlaw.com BARNES & THORNBURG LLP 2029 Century Park East, Suite 300 Los Angeles, California 90067 Telephone: (310) 284-3880 Facsimile: (310)284-3894 Attorneys for Temporary Receiver ROBB EVANS & ASSOCIATES LLC 10 11 UNITED STATES DISTRICT COURT 12 DISTRICT OF NEVADA 13 14 15 FEDERAL TRADE COMMISSION, Plaintiff, 16 17 18 19 20 21 22 23 24 25 26 27 Case No. 2:18-cv-00442-JCM-PAL AWS, LLC, a Nevada limited liability company; ADAMS CONSULTING, LLC, a California limited liability company; FBA DISTRIBUTORS, LLC, a Massachusetts limited liability company; FBA STORES, LLC, a Nevada limited liability company; GLOBAL MARKETING SERVICES L.L.C., a Nevada limited liability company; INFO PROS, LLC, a Nevada limited liability company; ONLINE AUCTION LEARNING CENTER, INC., a Massachusetts corporation; ONLINE AUCTION LEARNING CENTER, INC., a Nevada corporation; CHRISTOPHER F. BOWSER, individually and as an officer of FBA DISTRIBUTORS, LLC, FBA STORES, LLC, INFO SOLUTIONS, LLC, ONLINE AUCTION LEARNING CENTER, INC. and ONLINE AUCTION LEARNING CENTER, INC.; ADAM S. BOWSER, individually and as an officer of AWS, LLC, FBA DISTRIBUTORS, LLC, FBA STORES, LLC. INFO SOLUTIONS. LLC, ONLINE [PROPOSED] ORDER APPROVING STIPULATION TO VACATE REAL PROPERTY AND REJECT REAL PROPERTY LEASES, AND TO AUTHORIZE TEMPORARY RECEIVER TO SELL OR ABANDON PERSONAL PROPERTY OF THE RECEIVERSHIP ENTITIES Case 2:18-cv-00442-JCM-PAL Document 64 Filed 05/03/18 Page 8 of 9 1 2 3 4 5 AUCTION LEARNING CENTER, INC. and ONLINE AUCTION LEARNING CENTER, INC.; JODY L. MARSHALL, individually and as an officer of INFO PROS, LLC and INFO SOLUTIONS, LLC; and JEFFERY A. GOMEZ, a/k/a JEFF ADAMS or JEFF ADAM, individually and as an officer of ADAMS CONSULTING, LLC and GLOBAL MARKETING SERVICES L.L.C., 6 7 Defendants. 8 9 The Court, having read and reviewed the Stipulation to Vacate Real Property and Reject 10 Real Property Leases, and to Authorize Temporary Receiver to Sell or Abandon Personal 11 Property of the Receivership Entities (“Stipulation”) entered into by AWC, LLC, a Nevada 12 limited liability company, FBA Distributors, LLC, a Massachusetts limited liability company, 13 FBA Stores, LLC, a Nevada limited liability company, Info Pros, LLC, A Nevada limited liability 14 company, Online Auction Learning Center, Inc., a Massachusetts corporation, Online Auction 15 Learning Center, Inc., a Nevada corporation, Info Solutions, LLC, a Nevada limited liability 16 company (collectively the “Receivership Entities”), Christopher F. Bowser, Adam S. Bowser and 17 Jody Marshall, by and through their attorneys of record, Randazza Legal Group, PLLC, by 18 Ronald D. Green, Jr., and Temporary Receiver, Robb Evans & Associates LLC (“Temporary 19 Receiver”), by and through its attorneys of record, Barnes & Thornburg LLP, by Gary Owen 20 Caris, the plaintiff Federal Trade Commission having no objection to the Stipulation, and good 21 cause being shown therefore, it is 22 23 ORDERED that the Stipulation shall be and is hereby approved in its entirety; and it is further 24 ORDERED that the Temporary Receiver shall liquidate the Receivership Entities 25 Personal Property, as defined in the Stipulation, as soon as reasonably practical following entry of 26 this Order approving this Stipulation, and without further Court order or hearing, in such a 27 manner as the Temporary Receiver determines to be most cost-effective so as to maximize the 28 LP \w 2 - - Case 2:18-cv-00442-JCM-PAL Document 64 Filed 05/03/18 Page 9 of 9 1 recovery to the estate, in the Temporary Receiver’s discretion and business judgment, in one or 2 more public auctions and/or private sales, or any combination thereof, as the Temporary Receiver 3 may determine will maximize value, minimize expense and expedite the sale of the Receivership 4 Entities Personal Property, and all such sales shall be deemed to be authorized under 28 U.S.C. 5 § 2004; and it is further 6 ORDERED that any of the Receivership Entities Personal Property that the Temporary 7 Receiver determines in its discretion and business judgment cannot be liquidated for the benefit 8 of the receivership estate may be abandoned by the Temporary Receiver without further notice, 9 hearing or additional court order; and it is further 10 ORDERED that the Temporary Receiver shall vacate the Leased Premises, as defined in 11 the Stipulation, as soon as practical following entry of this Order and to reject the Lease 12 Agreements, as defined in the Stipulation, in such manner as the Temporary Receiver deems 13 necessary or appropriate following entry of this Order. 14 15 16 Dated: May 7, 2018. 17 ___________________________ __ JAMES C. MAHAN United States District Judge 18 19 20 21 22 23 24 25 26 27 12304192v1 28 -3 -

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