Federal Trade Commission v. AWS, LLC et al

Filing 80

ORDER granting #78 Stipulation for Permanent Injunction and Monetary Judgment (see order for details); Signed by Judge James C. Mahan on 6/15/2018. (Copies have been distributed pursuant to the NEF - JM)

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Case 2:18-cv-00442-JCM-PAL Document 78 Filed 06/12/18 Page 1 of 30

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Roberto Anguizola
Illinois Bar # 6270874 (Admitted pursuant to LR IA 11-3)
Tel. [phone]
Email: [e-mail]
Miry Kim
Washington Bar # 31456 (Admitted pursuant to LR IA 11-3)
Tel. [phone]
Email: [e-mail]
Gregory J. Evans
DC Bar # 1033184 (Admitted pursuant to LR IA 11-3)
Tel. [phone]
Email: [e-mail]
Federal Trade Commission
600 Pennsylvania Avenue, NW
Mail Drop CC-8528
Washington, DC 20580
Attorneys for Plaintiff
FEDERAL TRADE COMMISSION
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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FEDERAL TRADE COMMISSION,
Plaintiff,

CASE NO. 2:18-cv-00442-JCM-PAL

v.
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; INFO
SOLUTIONS, 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; ADAM S. BOWSER; JODY L.
MARSHALL; and JEFFREY A. GOMEZ,
Defendants.

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STIPULATED ORDER FOR
PERMANENT INJUNCTION AND
MONETARY JUDGMENT AS TO
DEFENDANTS AWS, LLC, FBA
DISTRIBUTORS, LLC, FBA
STORES, LLC, INFO PROS, LLC,
INFO SOLUTIONS, LLC, ONLINE
AUCTION LEARNING CENTER,
INC. (MASS. CORP.), ONLINE
AUCTION LEARNING CENTER,
INC. (NEV. CORP.),
CHRISTOPHER F. BOWSER,
ADAM S. BOWSER, AND JODY L.
MARSHALL

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Case 2:18-cv-00442-JCM-PAL Document 78 Filed 06/12/18 Page 2 of 30

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Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its Complaint

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for Permanent Injunction and Other Equitable Relief, as amended, (“Complaint”), in this matter,

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pursuant to Sections 13(b) and 19 of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C.

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§§ 53(b) and 57b. The Commission and Defendants AWS, LLC, FBA Distributors, LLC, FBA

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Stores, LLC, Info Pros, LLC, Info Solutions, LLC, Online Auction Learning Center, Inc. (Mass.

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Corp.), Online Auction Learning Center, Inc. (Nev. Corp.), Christopher F. Bowser, Adam S.

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Bowser, and Jody Marshall (“Settling Defendants”) stipulate to the entry of this Stipulated Order

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for Permanent Injunction and Monetary Judgment (“Order”) to resolve all matters in dispute in

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this action between them.

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THEREFORE, IT IS ORDERED as follows:

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FINDINGS

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1.

This Court has jurisdiction over this matter.

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2.

The Complaint charges that Settling Defendants participated in deceptive and

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unfair acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, and in violation

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of the Business Opportunity Rule, 16 C.F.R. Part 437, in connection with the advertising,

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marketing, distribution, promotion and sale of business opportunities to consumers throughout

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the United States.

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3.

Settling Defendants neither admit nor deny any of the allegations in the

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Complaint, except as specifically stated in this Order. Only for purposes of this action, Settling

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Defendants admit the facts necessary to establish jurisdiction.

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4.

Settling Defendants waive and release any claims that they may have against the

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Commission and the Receiver, including against any agent of the Commission or the Receiver,

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that relate to this action.

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5.

Settling Defendants waive all rights to appeal or otherwise challenge or contest

the validity of this Order.

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6.

Individual Defendant Jody Marshall filed a petition for relief under Chapter 13 of

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the Bankruptcy Code on January 5, 2016. In re Jody L. Marshall, No. BKS-16-10016-MKN

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(Bankr. D. Nev.) (“Marshall Bankruptcy Case”). The Commission’s prosecution of this action

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and the Order are actions to enforce the Commission’s policy or regulatory power. As a result, if

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the Marshall Bankruptcy Case is pending as of the date of entry of this Order, then these actions

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are excepted from the automatic stay pursuant to 11 U.S.C. § 362(b)(4).

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DEFINITIONS

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

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A.

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those related to business opportunities, that is represented, expressly or by implication, to coach,

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train or teach a participant or Purchaser how to establish, operate, or improve the Purchaser’s

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business.

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B.

“Business Coaching Program” means any program, plan, good, or service, including

“Business Opportunity” means a commercial arrangement in which:

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1.

A Seller solicits a prospective Purchaser to enter into a new business; and

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2.

The prospective Purchaser makes a required payment; and

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3.

The Seller, expressly or by implication, orally or in writing, represents that the

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Seller or one or more Designated Persons will:

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(i)

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machines, or similar devices, owned, leased, controlled, or paid for by the

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Purchaser; or

Provide locations for the use or operation of equipment, displays, vending

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(ii)

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accounts, or customers, for the Purchaser’s goods or services; or

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(iii)

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produces, fabricates, grows, breeds, modifies, or provides, including providing

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payment for such services as, for example, stuffing envelopes from the

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Purchaser’s home.

Provide outlets, accounts, or customers, including Internet outlets,

Buy back any or all of the goods or services that the Purchaser makes,

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C.

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the Seller suggests, recommends, or requires that the Purchaser use in establishing or operating a

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new business.

“Designated Person” means any Person, other than the Seller, whose goods or services

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D.

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

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Fed. R. Civ. P. 34(a), and includes writings, drawings, graphs, charts, photographs, sound and

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video recordings, images, internet sites, web pages, websites, electronic correspondence,

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including e-mail and instant messages, contracts, accounting data, advertisements (including

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advertisements placed on the World Wide Web), FTP Logs, Server Access Logs, USENET

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Newsgroup postings, books, written or printed records, handwritten notes, telephone logs,

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telephone scripts, receipt books, ledgers, personal and business canceled checks and check

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registers, bank statements, appointment books, computer records, customer or sales databases,

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and any other electronically stored information, including Documents located on remote servers

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or 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 non-

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identical copy is a separate document within the meaning of the term.

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

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E.

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prospective Purchaser or investor that conveys, expressly or by implication, a specific level or

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range of actual or potential sales, or gross or net income or profits. Earnings claims include, but

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are not limited to any: (1) chart, table, or mathematical calculation that demonstrates possible

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results based upon a combination of variables; and (2) statements from which a consumer,

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prospective Purchaser or investor can reasonably infer that he or she will earn a minimum level

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of income (e.g., “earn enough to buy a Porsche,” “earn a six-figure income,” or “earn your

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investment back within one year”).

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F.

“Earnings Claim” means any oral, written, or visual representation to a consumer,

“Person” means a natural person, organization, or legal entity, including a corporation,

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partnership, proprietorship, association, cooperative, government or governmental subdivision or

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

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G.

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prospective Purchaser with existing or potential locations, outlets, accounts, or customers;

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requiring, recommending, or suggesting one or more locators or lead generating companies;

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providing a list of locator or lead generating companies; collecting a fee on behalf of one or more

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locators or lead generating companies; offering to furnish a list of locations; or otherwise

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assisting the prospective Purchaser in obtaining his or her own locations, outlets, accounts, or

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customers.

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H.

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Program.

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I.

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of the Temporary Restraining Order issued on March 14, 2018 [ECF No. 29], and whose

“Providing locations, outlets, accounts, or customers” means furnishing the

“Purchaser” means a Person who buys a Business Opportunity or Business Coaching

“Receiver” means Robb Evans & Associates LLC, the receiver appointed in Section XI

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appointment is continued in Section VI of this Order, and any deputy receivers that shall be

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named by Robb Evans & Associates LLC.

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J.

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assets of the Settling Corporate Defendants, including: (a) any assets of the Settling Corporate

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Defendants currently in the possession of the Receiver; (b) all the funds, property, premises,

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accounts, documents, mail, and all other assets of, or in the possession or under the control of the

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Settling Corporate Defendants, wherever situated, the income and profits therefrom, all sums of

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money now or hereafter due or owing to the Settling Corporate Defendants, and any other assets

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or property belonging or owed to the Settling Corporate Defendants; (c) any assets of the Settling

“Receivership Estate” means the assets identified in Section III.C of this Order and all

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Corporate Defendants held in asset protection trusts; (d) any reserve funds or other accounts

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associated with any payments processed on behalf of any Settling Corporate Defendant,

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including such reserve funds held by a payment processor, credit card processor, or bank; and (e)

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all proceeds from the sale of such assets, except those assets the sale of which the Receiver

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determines will not add appreciably to the value of the estate.

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K.

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Coaching Program.

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L.

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Stores, LLC, Info Pros, LLC, Info Solutions, LLC, Online Auction Learning Center, Inc. (Mass.

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Corp.), Online Auction Learning Center, Inc. (Nev. Corp.), and any of their subsidiaries,

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affiliates, successors, and assigns.

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M.

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Corporate Defendants, individually, collectively, or in any combination.

“Seller” means a person who offers for sale or sells a Business Opportunity or Business

“Settling Corporate Defendants” means AWS, LLC, FBA Distributors, LLC, FBA

“Settling Defendants” means all of the Settling Individual Defendants and the Settling

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N.

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Jody L. Marshall, individually or collectively.

“Settling Individual Defendants” means Christopher F. Bowser, Adam S. Bowser, and

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ORDER

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I.

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BUSINESS OPPORTUNITY AND BUSINESS COACHING BAN

IT IS ORDERED that Settling Defendants are permanently restrained and enjoined from

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advertising, marketing, distributing, promoting, or offering for sale, or assisting in the

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advertising, marketing, distributing, promoting, or offering for sale of, any Business Opportunity

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or Business Coaching Program.

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II.

PROHIBITED BUSINESS ACTIVITIES

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IT IS FURTHER ORDERED that Settling Defendants, Settling Defendants’ officers,

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

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

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with promoting or offering for sale any good or service, are permanently restrained and enjoined

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from:

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A.

making any Earnings Claim, unless the Earnings Claim is non-misleading, and, at

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the time such claim is made, Settling Defendants: (1) have a reasonable basis for their claim; (2)

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have in their possession written materials that substantiate the claim; and (3) make the written

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substantiation available upon request to the consumer, potential Purchaser or investor, and to the

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Commission; or

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B.

misrepresenting or assisting others in misrepresenting, expressly or by implication

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any other fact material to consumers concerning any product or service, such as the total costs;

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

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efficacy, nature, or central characteristics.

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III. MONETARY JUDGMENT AND PARTIAL SUSPENSION

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IT IS FURTHER ORDERED that:

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A.

Judgment in the amount of One Hundred Two Million, Four Hundred Eighty-One

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Thousand, Five Hundred Ninety-Six Dollars ($102,481,596.00) is entered in favor of the

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Commission against Settling Defendants, jointly and severally, as equitable monetary relief.

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B.

Settling Individual Defendants are ordered to make the following payments to the

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Commission, which, as Settling Individual Defendants stipulate, their undersigned counsel holds

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in escrow for no purpose other than payment to the Commission:

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1.

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Three Hundred, Twenty-Five Thousand Dollars ($325,000.00);
2.

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Individual Defendant Christopher F. Bowser is ordered to pay to the Commission

Individual Defendant Adam S. Bowser is ordered to pay to the Commission Three
Hundred, Twenty-Five Thousand Dollars ($325,000.00); and

3.

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Individual Defendant Jody Marshall is ordered to pay to the Commission
Seventy-Five Thousand Dollars ($75,000.00).

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Such payments must be made within 7 days of entry of this Order by electronic fund transfer in

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accordance with instructions previously provided by a representative of the Commission.

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C.

In addition to the payments to the Commission specified in Subsection B above,

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immediately upon entry of this Order, the Settling Defendants are ordered to surrender to the

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Commission all control, title, dominion, and interest each has to the following assets:

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1.

All interest the Settling Defendants have in funds in any accounts in the name of

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the Settling Corporate Defendants, eLearn Service, LLC, E-Learn Services, Ltd.,

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EMWW, LLC, Finn Rich Wireless, LLC, Plaza TowneHomes, LLC, Sell On

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AMZ Inc., Surf Cellular Express, LLC, Vmerica, Inc., Buy Box Wholesale Inc.,

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Auction Profit Builders LLC, Insider Online Secrets LLC, or Sellers Hangout;

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2.

All cash held by the Receiver;

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3.

All assets owned by the Settling Corporate Defendants, eLearn Service, LLC, E-

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Learn Services, Ltd., EMWW, LLC, Finn Rich Wireless, LLC, Plaza

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TowneHomes, LLC, Sell On AMZ Inc., Surf Cellular Express, LLC, Vmerica,

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Inc., Buy Box Wholesale Inc., Auction Profit Builders LLC, Insider Online

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Secrets LLC, or Sellers Hangout, including any real, personal, or intellectual

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property, chattel, goods, instruments, equipment, fixtures, general intangibles,

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effects, leaseholds, contracts, mail, or other deliveries, shares or stock, securities,

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inventory, checks, notes, accounts, credits, receivables, insurance policies, lines of

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credit, cash, trusts (including asset protection trusts), lists of consumer names and

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reserve funds or any other accounts associated with any payments processed by,

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or on behalf of, any Settling Corporate Defendants, eLearn Service, LLC, E-Learn

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Services, Ltd., EMWW, LLC, Finn Rich Wireless, LLC, Plaza TowneHomes,

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LLC, Sell On AMZ Inc., Surf Cellular Express, LLC, Vmerica, Inc., Buy Box

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Wholesale Inc., Auction Profit Builders LLC, Insider Online Secrets LLC, or

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Sellers Hangout;

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4.

“Online Seller”, including the accounts ending in 1812 and 6059;

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All funds held by Bank of America N.A., in the name of Info Pros LLC dba

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All funds held by Bank of America N.A., in the name of FBA Stores LLC dba
“AWS”, including the accounts ending in 6155 and 3425;

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6.

including the account ending in 2607;

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13.

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All funds held by Washington Federal Bank, in the name of EMWW, LLC,
including the account ending in 8182;

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All funds held by Washington Federal Bank, in the name of Info Pros LLC,
including the account ending in 9156;

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All funds held by America First Credit Union, in the name of Info Solutions LLC,
including the account ending in 7992;

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All funds held by Bank of America N.A., in the name of Vmerica Inc., including
the account ending in 5607;

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All funds held by Bank of America N.A., in the name of Finn Rich Wireless LLC,
including the account ending in 2342;

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All funds held by Bank of America N.A., in the name of Elearn Services LLC dba
“Edominance”, including the account ending in 1867;

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All funds held by Bank of America N.A., in the name of EMWW, LLC LLC,
including the account ending in 8299;

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All funds held by Bank of America N.A., in the name of FBA Distributors LLC,
including the account ending in 5349;

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All funds held by Bank of America N.A., in the name of FBA Stores LLC,

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All funds held by Rockland Trust Company, in the name of Online Auction

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Learning Center, Inc., including the Demand Deposit accounts ending in 1323 and

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2412;

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16.

All funds held by Rockland Trust Company, in the name of Auction Profit

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Builders LLC dba “Insider Online Secrets”, including the Demand Deposit

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account ending in 1538;

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LLC, including the Demand Deposit account ending in 6468;

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18.

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All funds held by JP Morgan Chase & Co., in the name of Plaza TowneHomes,
LLC, including the account ending in 3929;

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All funds held by JP Morgan Chase & Co., in the name of Info Pros LLC,
including the account ending in 3922;

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All funds held by Rockland Trust Company, in the name of Surf Cellular Express
LLC, including the Demand Deposit account ending in 7031;

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All funds held by Rockland Trust Company, in the name of Finn Rich Wireless

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All reserve funds or any other accounts held, controlled, or serviced by Stripe,

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Inc. and associated with any payments processed by, or on behalf of FBA

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Distributors LLC, including the merchant account with the merchant

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identification number (“MID”) ending in uiJvd;

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22.

All reserve funds or any other accounts held, controlled, or serviced by Stripe,

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Inc. and associated with any payments processed by, or on behalf of Adam

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Bowser dba “AWS”, including the merchant account with the MID ending in

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K9Yc2;

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All reserve funds or any other accounts held, controlled, or serviced by Electronic

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Merchant Systems and associated with any payments processed by, or on behalf

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of FBA Stores LLC, including the merchant account with the MID ending in

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0179;

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24.

All reserve funds or any other accounts held, controlled, or serviced by Electronic

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Merchant Systems and associated with any payments processed by, or on behalf

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of Online Auction Learning Center, Inc., including the merchant accounts with

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the MID ending in 0908;

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25.

All reserve funds or any other accounts held, controlled, or serviced by EVO

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Payments International, LLC and associated with any payments processed by, or

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on behalf of FBA Stores LLC, including the merchant account with the MID

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ending in 4353;

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26.

All reserve funds or any other accounts held, controlled, or serviced by EVO

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Payments International, LLC and associated with any payments processed by, or

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on behalf of Online Auction Learning Center, Inc., including the merchant

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accounts with the MIDs ending in 2829 and 7498;

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27.

All reserve funds or any other accounts held, controlled, or serviced by PayPal,

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Inc. and associated with any payments processed by, or on behalf of FBA Stores,

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LLC, including the merchant account with the MID ending in 3735;

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28.

All reserve funds or any other accounts held, controlled, or serviced by PayPal,

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Inc. and associated with any payments processed by, or on behalf of Info Pros

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LLC, including the merchant account with the MID ending in 4079;

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29.

All reserve funds or any other accounts held, controlled, or serviced by PayPal,

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Inc. and associated with any payments processed by, or on behalf of Info

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Solutions, LLC, including the merchant account with the MID ending in 0073;

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30.

All reserve funds or any other accounts held, controlled, or serviced by PayPal,
Inc. and associated with any payments processed by, or on behalf of Online

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Auction Learning Center, Inc., including the merchant accounts with the MIDs

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ending in 8564 and 1083;

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31.

All reserve funds or any other accounts held, controlled, or serviced by Qualpay

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and associated with any payments processed by, or on behalf of FBA Stores LLC,

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including the merchant account with the MID ending in 0602; and

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32.

All reserve funds or any other accounts held, controlled, or serviced by Global

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Payments, Inc. and associated with any payments processed by, or on behalf of

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Info Pros LLC dba “On Line Seller” or “Online Seller”, including the merchant

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account with the MID ending in 3060.

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D.

To the extent they are not already in the possession of the Receiver, Settling

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Defendants shall deliver the assets identified in Subsection C above to the Receiver’s possession

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within 7 days of the entry of this Order.

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E.

The Receiver shall, as soon as practicable, commence the sale of the unliquidated

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assets identified in Subsection C above and surrendered pursuant to this Order using a

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commercially reasonable procedure. The Receiver shall hold the surrendered assets, and the

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proceeds from the sale of the unliquidated assets, for future transfer in accordance with further

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instructions from the Court.

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F.

Upon delivery of the payments specified in Subsection B above to the

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Commission, and of all the assets specified in Subsection C above to the Receiver, the remainder

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of the judgment is suspended, subject to Subsections G-O below.

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G.

The Commission’s agreement to the suspension of part of the judgment is

expressly premised upon the truthfulness, accuracy, and completeness of Settling Defendants’

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sworn financial statements and related Documents (collectively, “financial representations”)

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submitted to the Commission, namely:

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1.

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March 21, 2018, including the attachments;
2.

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the Financial Statement of Individual Defendant Adam S. Bowser signed on
March 27, 2018, including the attachments;

3.

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the Financial Statement of Individual Defendant Christopher F. Bowser signed on

the Financial Statement of Individual Defendant Jody Marshall, signed on March
28, 2018, including the attachments;

4.

the Financial Statement of Corporate Defendant FBA Stores, LLC signed by

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Alma Kelly, Internal Accountant, on March 21, 2018, including the attachments;

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and

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5.

the Financial Statement of Corporate Defendant Online Auction Learning Center,

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Inc. (Mass. Corp.), signed by Christopher F. Bowser, Owner, on March 21, 2018,

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including the attachments.

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H.

The suspension of the judgment will be lifted as to any Settling Defendant if,

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upon motion by the Commission, the Court finds that Settling Defendant failed to disclose any

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material asset, materially misstated the value of any asset, or made any other material

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misstatement or omission in the financial representations identified above.

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I.

If the suspension of the judgment is lifted, the judgment becomes immediately

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due as to that Settling Defendant in the amount specified in Subsection A above (which the

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parties stipulate only for purposes of this Section represents the consumer injury and unjust

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enrichment alleged in the Complaint), less any payments previously made pursuant to this

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Section, plus interest computed from the date of entry of this Order.

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J.

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Settling Defendants relinquish dominion and all legal and equitable right, title,

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and interest in all assets transferred pursuant to this Order and may not seek the return of any

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assets.

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K.

The facts alleged in the Complaint will be taken as true, without further proof, in

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

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

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nondischargeability complaint in any bankruptcy case.

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L.

The facts alleged in the Complaint establish all elements necessary to sustain an

action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C.
§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes.
M.

Settling Defendants acknowledge that their Taxpayer Identification Numbers

12

(Social Security Numbers or Employer Identification Numbers), which Settling Defendants

13

previously submitted to the Commission, may be used for collecting and reporting on any

14

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

15

N.

All money paid to the Commission or assets ultimately surrendered to the

16

Commission pursuant to this Order (or any subsequent Court order issued in this matter) and

17

further instructions from the Court may be deposited into a fund administered by the

18

Commission or its designee to be used for equitable relief, including consumer redress and any

19

attendant expenses for the administration of any redress fund. If a representative of the

20

Commission decides that direct redress to consumers is wholly or partially impracticable or

21

money remains after redress is completed, the Commission may apply any remaining money for

22

such other equitable relief (including consumer information remedies) as it determines to be

23

reasonably related to Settling Defendants’ practices alleged in the Complaint. Any money not

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used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement. Settling

2

Defendants have no right to challenge any actions the Commission or its representatives may

3

take pursuant to this Subsection.

4

O.

The asset freeze imposed by the March 14, 2018 Temporary Restraining Order

5

[ECF No. 29], is modified to permit the payment and transfers identified in Subsections B and C

6

above. Upon completion of those payment and transfers, the asset freeze as to Settling

7

Defendants is dissolved. Any existing asset freeze as to the remaining non-settling Defendants

8

shall remain in full force and effect.

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10

IV. CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Settling Defendants, and their representatives, agents,

11

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

12

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

13

directly or indirectly:

14

A.

failing to provide sufficient customer information to enable the Commission to

15

efficiently administer consumer redress. Settling Defendants represent that they have provided

16

this redress information to the Commission. If a representative of the Commission requests in

17

writing any information related to redress, Settling Defendants must provide it, in the form

18

prescribed by the Commission, within 14 days.

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B.

disclosing, using, or benefitting from customer information, including the name,

20

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

21

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

22

other financial account), that any Settling Defendant obtained prior to entry of this Order in

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connection with the advertising, marketing, distribution, promotion and sale of business

2

opportunities to consumers throughout the United States; and

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C.

failing to destroy such customer information in all forms in their possession,

4

custody, or control within 30 days after receipt of written direction to do so from a representative

5

of the Commission.

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

7

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

8

court order.

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V. COOPERATION

10

IT IS FURTHER ORDERED that Settling Defendants must fully cooperate with

11

representatives of the Commission in this case and in any investigation related to or associated

12

with the transactions or the occurrences that are the subject of the Complaint. Settling

13

Defendants must provide truthful and complete information, evidence, and testimony. Settling

14

Individual Defendants must appear and Settling Corporate Defendants must cause Settling

15

Corporate Defendants’ officers, employees, representatives, or agents to appear for interviews,

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discovery, hearings, trials, and any other proceedings that a Commission representative may

17

reasonably request upon 5 days written notice, or other reasonable notice, at such places and

18

times as a Commission representative may designate, without the service of a subpoena.

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VI. RECEIVERSHIP

20

IT IS FURTHER ORDERED that Robb Evans & Associates LLC is hereby appointed

21

equity Receiver for the Settling Corporate Defendants for the purpose of taking the necessary

22

steps to wind down the businesses of the Settling Corporate Defendants, liquidate assets, and pay

23

any net proceeds to the Commission to satisfy the monetary judgment in this Order. In carrying

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out these duties, the Receiver shall be the agent of this Court, shall be accountable directly to this

2

Court, and is authorized and directed to:

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4
5

A.

Take any and all steps that the Receiver concludes are appropriate to wind down

the affairs of the Settling Corporate Defendants.
B.

Continue to exercise full control over the Settling Corporate Defendants and

6

continue to collect, marshal, and take custody, control, and possession of all the funds, property,

7

premises, accounts, documents, mail, and other assets of, or in the possession or under the

8

control of the Settling Corporate Defendants, wherever situated, the income and profits

9

therefrom, and all sums of money now or hereafter due or owing to the Settling Corporate

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12
13

Defendants.
C.

Continue to have full control over the management and personnel of the Settling

Corporate Defendants.
D.

Take all steps necessary or advisable, including issuing subpoenas, to locate and

14

liquidate all other assets of the Settling Corporate Defendants, cancel the Settling Corporate

15

Defendants’ contracts, collect on amounts owed to the Settling Corporate Defendants, and take

16

such other steps as may be necessary to wind-down the Settling Corporate Defendants

17

efficiently.

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E.

To the extent not already completed, the Receiver shall as soon as practicable

19

after the entry of this Order, take exclusive custody, control, and possession of all assets

20

identified in Section III.C of this Order.

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F.

The Receiver shall give reasonable notice to the Commission of any settlements

or compromises by the Receiver concerning the Receivership Estate, before the settlement or

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compromise is consummated. Within 20 days of this notice, the Commission shall have the

2

opportunity to object to any such settlement, by filing a motion with the Court.

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G.

Make payments and disbursements from the Receivership Estate that are

4

necessary or advisable for carrying out the directions of, or exercising the authority granted by,

5

this Order. The Receiver shall apply to the Court for prior approval of any payment of any debt

6

or obligation incurred by the Settling Corporate Defendants prior to the date of entry of the

7

temporary restraining order in this action, except payments that the Receiver deems necessary or

8

advisable to ensure assets of the Settling Corporate Defendants are not lost, stolen, or dissipated.

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H.

Institute actions or proceedings in state, federal, or foreign courts as the Receiver

10

deems necessary and advisable to preserve or recover the assets of the Settling Corporate

11

Defendants, or that the Receiver deems necessary and advisable to carry out the Receiver’s

12

mandate under this Order, including actions challenging fraudulent or voidable transfers.

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I.

Defend any or all actions or proceedings instituted against the Settling Corporate

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Defendants, as the Receiver deems necessary and advisable to preserve the assets of the Settling

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Corporate Defendants.

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J.

Continue to maintain accurate records of all receipts and expenditures incurred as

the Receiver.
K.

Perform all acts necessary or advisable to complete an accurate accounting of

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assets of the Receivership Estate, and prevent unauthorized transfer, withdrawal, or

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misapplication of said assets.

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L.

Continue to be entitled to reasonable compensation for the performance of the

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Receiver’s duties pursuant to this Order, including duties performed by the Receiver’s agents,

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including accountants and lawyers, and for the cost of actual out-of-pocket expenses incurred by

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them, from the assets of the Receivership Estate, at the hourly rate previously agreed to by the

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Receiver and used as the bases for prior fee applications approved by the Court.

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VII. ORDER ACKNOWLEDGMENTS

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IT IS FURTHER ORDERED that Settling Defendants obtain acknowledgments of

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8
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receipt of this Order:
A.

Each Settling Defendant, within 7 days of entry of this Order, must submit to the

Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.
B.

For 10 years after entry of this Order, each Settling Individual Defendant for any

business that such Settling Defendant, individually or collectively with any other Settling

10

Defendants, is the majority owner or controls directly or indirectly, and each Settling Corporate

11

Defendant, must deliver a copy of this Order to: (1) all principals, partners, officers, directors,

12

and LLC managers and members; (2) all employees, agents, and representatives who participate

13

in conduct related to the subject matter of the Order; and (3) any business entity resulting from

14

any change in structure as set forth in the Section titled Compliance Reporting. Delivery must

15

occur within 7 days of entry of this Order for current personnel. For all others, delivery must

16

occur before they assume their responsibilities.

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C.

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

18

this Order, that Settling Defendant must obtain, within 30 days, a signed and dated

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acknowledgment of receipt of this Order.

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VIII. COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Settling Defendants make timely submissions to the
Commission:

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2
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A.

One year after entry of this Order, each Settling Defendant must submit a

compliance report, sworn under penalty of perjury:
1.

Each Settling Defendant must: (a) identify the primary physical, postal, and email

4

address and telephone number, as designated points of contact, which

5

representatives of the Commission may use to communicate with Settling

6

Defendant; (b) identify all of that Settling Defendant’s businesses by all of their

7

names, telephone numbers, and physical, postal, email, and Internet addresses; (c)

8

describe the activities of each business, including the goods and services offered,

9

the means of advertising, marketing, and sales, and the involvement of any other

10

Settling Defendant (which Settling Individual Defendants must describe if they

11

know or should know due to their own involvement); (d) describe in detail

12

whether and how that Settling Defendant is in compliance with each Section of

13

this Order; and (e) provide a copy of each Order Acknowledgment obtained

14

pursuant to this Order, unless previously submitted to the Commission.

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2.

Additionally, each Settling Individual Defendant must: (a) identify all telephone

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numbers and all physical, postal, email and Internet addresses, including all

17

residences; (b) identify all business activities, including any business for which

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such Settling Defendant performs services whether as an employee or otherwise

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and any entity in which such Settling Defendant has any ownership interest; and

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(c) describe in detail such Settling Defendant’s involvement in each such

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business, including title, role, responsibilities, participation, authority, control,

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and any ownership.

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B.

For 20 years after entry of this Order, each Settling Defendant must submit a

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compliance notice, sworn under penalty of perjury, within 14 days of any change in the

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following:

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1.

Each Settling Defendant must report any change in: (a) any designated point of

5

contact; or (b) the structure of any Settling Corporate Defendant or any entity that

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Settling Defendant has any ownership interest in or controls directly or indirectly

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that may affect compliance obligations arising under this Order, including:

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creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or

9

affiliate that engages in any acts or practices subject to this Order.

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2.

Additionally, each Settling Individual Defendant must report any change in: (a)

11

name, including aliases or fictitious name, or residence address; or (b) title or role

12

in any business activity, including any business for which such Settling Defendant

13

performs services whether as an employee or otherwise and any entity in which

14

such Settling Defendant has any ownership interest, and identify the name,

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physical address, and any Internet address of the business or entity.

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C.

Each Settling Defendant must submit to the Commission notice of the filing of

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any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Settling

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Defendant within 14 days of its filing.

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D.

Any submission to the Commission required by this Order to be sworn under

20

penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by

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concluding: “I declare under penalty of perjury under the laws of the United States of America

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that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s

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full name, title (if applicable), and signature.

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E.

Unless otherwise directed by a Commission representative in writing, all

2

submissions to the Commission pursuant to this Order must be emailed to [e-mail] or

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sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement,

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Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW,

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Washington, DC 20580. The subject line must begin: FTC v. AWS, LLC et al., X180026.

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7

IX. RECORDKEEPING
IT IS FURTHER ORDERED that Settling Defendants must create certain records for 20

8

years after entry of the Order, and retain each such record for 5 years. Specifically, Settling

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Corporate Defendants and each Settling Individual Defendant for any business that such Settling

10

Defendant, individually or collectively with any other Settling Defendants, is a majority owner

11

or controls directly or indirectly, must create and retain the following records:

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A.

accounting records showing the revenues from all goods or services sold;

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B.

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

14

employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position;

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dates of service; and (if applicable) the reason for termination;

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C.

records of all consumer complaints and refund requests, whether received directly

or indirectly, such as through a third party, and any response;
D.

all records necessary to demonstrate full compliance with each provision of this

Order, including all submissions to the Commission; and
E.

a copy of each unique advertisement or other marketing material.

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X. COMPLIANCE MONITORING

2

IT IS FURTHER ORDERED that, for the purpose of monitoring Settling Defendants’

3

compliance with this Order, including the financial representations upon which part of the

4

judgment was suspended and any failure to transfer any assets as required by this Order:

5

A.

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

6

Commission, each Settling Defendant must: submit additional compliance reports or other

7

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

8

and produce Documents for inspection and copying. The Commission is also authorized to

9

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

10

Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45,

11

and 69.

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B.

For matters concerning this Order, the Commission is authorized to communicate

13

directly with each Settling Defendant. Settling Defendant must permit representatives of the

14

Commission to interview any employee or other person affiliated with any Settling Defendant

15

who has agreed to such an interview. The person interviewed may have counsel present.

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C.

The Commission may use all other lawful means, including posing, through its

17

representatives, as consumers, suppliers, or other individuals or entities, to Settling Defendants

18

or any individual or entity affiliated with Settling Defendants, without the necessity of

19

identification or prior notice. Nothing in this Order limits the Commission’s lawful use of

20

compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.

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D.

Upon written request from a representative of the Commission, any consumer

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reporting agency must furnish consumer reports concerning Settling Individual Defendants,

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pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1).

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XI. RETENTION OF JURISDICTION

2

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for

3

purposes of construction, modification, and enforcement of this Order.

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June day of
SO ORDERED this 15, 2018.

, 2018.

5
______________________________
United States District Judge

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STIPULATED AND AGREED TO BY:

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FOR SETTLING DEFENDANTS:

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17

_________________________________
Suzette Michele M. Moore
Shumaker
Bank of America Plaza, Suite 2800
101 East Kennedy Boulevard
Tampa, FL 33602
Tel. [phone]
Email: [e-mail]

Date:_________________________

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Attorney for defendants AWS, LLC, FBA
Distributors, LLC, FBA Stores, LLC, Info
Pros, LLC, Info Solutions, LLC, Online
Auction Learning Center, Inc. (Mass.
Corp.), Online Auction Learning Center,
Inc. (Nev. Corp.), Christopher F. Bowser,
Adam S. Bowser, and Jody L. Marshall

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23

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DEFENDANTS:

2

________________________________
Christopher F. Bowser, Individually and as
Vice President and Manager of FBA
Distributors, LLC; Vice President of FBA
Stores, LLC, Managing Member of Info
Solutions, LLC; President of Online Auction
Learning Center (Mass. Corp.) and Online
Auction Learning Center (Nev. Corp.)

Date:_____________________________

____________________________________
Adam S. Bowser, Individually and as Manager
of AWS, LLC; Manager and President of FBA
Distributors, LLC; Managing Member of Info
Solutions, LLC; Officer of Online Auction
Learning Center (Mass. Corp.) and Online
Auction Learning Center (Nev. Corp.)

Date:______________________________

____________________________________
Jody L. Marshall, Individually and as Manager
of Info Pros, LLC; Managing Member of Info
Solutions, LLC; Owner of FBA Distributors,
LLC

04/23/2018
Date: ______________________________

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FOR FEDERAL TRADE COMMISSION:
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6/12/2018
Date: ______________________________

Roberto Anguizola
Illinois Bar # 6270874
(Admitted pursuant to LR IA 11-3)
Tel. [phone]
Email: [e-mail]

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2
3
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8

Miry Kim
Washington Bar # 31456
(Admitted pursuant to LR IA 11-3)
Tel. [phone]
Email: [e-mail]
Gregory J. Evans
DC Bar # 1033184
(Admitted pursuant to LR IA 11-3)
Tel. [phone]
Email: [e-mail]
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Mail Drop CC-8528
Washington, D.C. 20580

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Attorneys for Plaintiff
FEDERAL TRADE COMMISSION

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CERTIFICATE OF SERVICE

2

I hereby certify that on June 12, 2018, I caused the foregoing document to be filed with

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the Clerk of the Court via the Court’s CM/ECF electronic filing system. Additionally, I served

4

all of the counsel and parties listed on the attached Service List by the methods indicated therein.

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6
7

/s/ Roberto Anguizola
Roberto Anguizola
Attorney for Plaintiff
FEDERAL TRADE COMMISSION

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SERVICE LIST
Suzette Michele M. Moore
S. Moore Law
4720 Cleveland Heights Blvd.
Suite 201
Lakeland, FL 33813
Tel. [phone]
Email: [e-mail]

Ronald D. Green (NV Bar No. 7360)
LaTeigra C. Cahill (NV Bar No. 14352)
Randazza Legal Group, PLLC
4035 S. El Capitan Way
Las Vegas, NV 89147
Tel. [phone]
Email: [e-mail],
[e-mail]

Attorney for defendants AWS, LLC, FBA
Distributors, LLC, FBA Stores, LLC,
Info Pros, LLC, Online Auction Learning
Center, Inc. (Mass. Corp.), Online
Auction Learning Center, Inc. (Nev.
Corp.), Christopher F. Bowser, Adam S.
Bowser, and Jody Marshall

10

Seeking admission Pro Hac Vice

11

Served via email

12

Attorney for defendants AWS, LLC,
FBA Distributors, LLC, FBA Stores,
LLC, Info Pros, LLC, Online Auction
Learning Center, Inc. (Mass. Corp.),
Online Auction Learning Center, Inc.
(Nev. Corp.), Christopher F. Bowser,
Adam S. Bowser, and Jody Marshall

Brick Kane
President
Robb Evans & Associates LLC
11450 Sheldon Street
Sun Valley, California 91352-1121
Tel: [phone]
Fax: [phone]
Email: [e-mail]

Served via email

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Gary Owen Caris
Barnes & Thornburg LLP
2029 Century Park E., Suite 300
Los Angeles, California 90067-2904
Tel. [phone]
Email: [e-mail]

Court Appointed Receiver

Attorney for the Court Appointed
Receiver Robb Evans & Associates
LLC

Served via email

Served via email

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James C. Bastian, Jr.
Shulman Hodges & Bastian LLP
100 Spectrum Center Drive, Suite 600
Irvine, CA 92618
Tel. [phone]
Email: [e-mail]

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5

Attorney for defendants Adams
Consulting, LLC, Global Marketing
Services L.L.C, and Jeffery A. Gomez

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Served via email
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