Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_20-cv-00047/USCOURTS-azd-2_20-cv-00047-5/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:0045 Federal Trade Commission Act

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Federal Trade Commission,

Plaintiff,

v. 

James D Noland, Jr., et al.,

Defendants.

No. CV-20-00047-PHX-DWL

AMENDED ORDER 

(Under Seal)

Plaintiff, the Federal Trade Commission, has filed a Complaint for Permanent 

Injunction and Other Equitable Relief pursuant to Section 13(b) of the Federal Trade 

Commission Act (“FTC Act”), 15 U.S.C. § 53(b) and has moved for a temporary 

restraining order (“TRO”), asset freeze, other equitable relief, and an order to show cause 

why a preliminary injunction should not issue against individual defendants James D. 

Noland, Jr. (“Jay Noland”), Lina Noland (“Lina Noland”), Scott A. Harris (“Harris”), and 

Thomas G. Sacca, Jr. (“Sacca”) (collectively, the “Individual Defendants”) and corporate 

entities Success by Media Holdings Inc. and Success by Media LLC (together, the 

“Corporate Defendants” or “Success By Media”). (Doc. 3 [complaint]; Doc. 7 [motion for 

TRO]; Doc. 8 [supporting memorandum].) 

As explained below, although the Court generally agrees that the FTC has met its 

burden of establishing an entitlement to a TRO, the Court declines to issue the writ ne exeat 

republica sought by the FTC as to James Noland. The Court also finds that the FTC has 

not made a specific showing necessary to justify all of the relief it seeks as Sacca. The 

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motion is otherwise granted. 

FINDINGS OF FACT

The Court, having considered the Complaint, the ex parte Motion for TRO, 

declarations, exhibits, and the memorandum filed in support thereof, and being otherwise 

advised, finds that:

A. This Court has jurisdiction over the subject matter of this case, and there is 

good cause to believe that it will have jurisdiction over all parties hereto and that venue in 

this district is proper.

B. There is good cause to believe that Defendants have operated and promoted 

a marketing scheme in which they are:

1. Operating as an illegal pyramid scheme;

2. Falsely representing that members of the Success By Health program 

(called “Affiliates”) are likely to earn substantial income;

3. Providing the means and instrumentalities for the commission of 

deceptive acts and practices by furnishing Affiliates with promotional 

materials containing false and misleading representations to be used

in recruiting new participants; 

4. Not providing consumers with required notices about their right to 

cancel and obtain a refund, or providing consumers with such a refund 

when requested, for certain sales; and

5. For products not shipped within 30 days from purchase, not providing 

consumers a revised shipping date and the opportunity to cancel and 

receive a refund, and not providing such refund when requested.

C. 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); 

the Mail, Internet, or Telephone Order Merchandise Rule (“Merchandise Rule”), 16 C.F.R. 

Part 435; and the Rule Concerning Cooling-Off Period for Sales Made at Homes or at 

Certain Other Locations (“Cooling-Off Rule”), 16 C.F.R. Part 429, and that Plaintiff is 

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therefore likely to prevail on the merits of this action. As demonstrated by detailed 

evidence, including statements from consumers and Defendants’ former Affiliates, sales 

scripts, recruiting scripts and presentations, promotional videos, transcripts of Success By 

Media events and conference calls, videos and recordings of Defendants, and expert 

testimony, the FTC has established a likelihood of success in showing that Defendants have 

operated an illegal pyramid scheme and made false, misleading, and deceptive 

misrepresentations. 

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

from Defendants’ ongoing violations of the FTC Act, the Merchandise Rule, and the 

Cooling-Off Rule unless Defendants are restrained and enjoined by order of this Court.

E. There is good cause to believe that immediate and irreparable damage to the 

Court’s ability to grant effective final relief for consumers – including monetary restitution, 

rescission, disgorgement, or refunds – will likely occur from the sale, transfer, destruction 

or other disposition or concealment by Defendants of their assets or records, unless 

Defendants are immediately restrained and enjoined by order of this Court; and that, in 

accordance with Fed. R. Civ. P. 65(b), the interests of justice require that this Order be 

granted without prior notice to Defendants. Thus, there is good cause for relieving Plaintiff

of the duty to provide Defendants with prior notice of its Motion for a Temporary 

Restraining Order.1 

F. Good cause exists for appointing a temporary receiver over the Receivership 

Entities, freezing Defendants’ assets, permitting the Plaintiff and the Receiver immediate 

 

1 With that said, and as discussed during the hearing on January 9, 2020, the Court 

has some concern about its authority to grant a TRO in this context without providing 

notice to the restrained parties. The plain text of 15 U.S.C. § 53(b), under which the FTC 

brings this action, states that a TRO may issue only “after notice to the defendant.” That 

said, the Ninth Circuit has read two distinct provisos into the statute. FTC v. Consumer 

Defense, LLC, 926 F.3d 1208, 1212 (9th Cir. 2019). Under the second proviso, which the 

FTC utilizes here, the Ninth Circuit has stressed that district courts have the authority “to 

grant any ancillary relief necessary to accomplish complete justice because [§ 53(b)] did 

not limit that traditional equitable power.” FTC v. H. N. Singer, Inc. 668 F.2d 1107, 1113 

(1982). Although Singer and Consumer Defense did not specifically address whether these 

broad equitable powers include the ability to issue a no-notice TRO at the FTC’s request—

and although the second proviso of § 53(b) only mentions permanent injunctions, not 

TROs—the Court acknowledges that many other district courts faced with this question 

have granted the relief the FTC seeks. 

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access to the Defendants’ business premises, and permitting the Plaintiff and the 

Temporary Receiver to take expedited discovery.

G. Weighing the equities and considering Plaintiff’s likelihood of ultimate 

success on the merits, a temporary restraining order with an asset freeze, the appointment 

of a temporary receiver, immediate access to business premises, expedited discovery, and 

other equitable relief is in the public interest. That said, the evidence produced by the FTC 

does not justify the extraordinary relief of a writ ne exeat republica.

H. This Court has authority to issue this Order pursuant to Section 13(b) of the 

FTC Act, 15 U.S.C. § 53(b); Federal Rule of Civil Procedure 65; and the All Writs Act, 28 

U.S.C. § 1651.

I. No security is required of any agency of the United States for issuance of a 

temporary restraining order. Fed. R. Civ. P. 65(c).

DEFINITIONS

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

A. “Asset” means any legal or equitable interest in, right to, or claim to, any 

property, wherever located and by whomever held, whether tangible, intangible, digital, or 

otherwise, including, but not limited to, digital currencies, virtual currencies, digital tokens, 

and cryptocurrencies.

B. “Corporate Defendants” means Success By Media Holdings Inc. and 

Success By Media LLC and each of their subsidiaries, affiliates, successors, and assigns.

C. “Defendants” means the Corporate Defendants, James D. Noland, Jr., Lina 

Noland, Scott A. Harris, and Thomas G. Sacca, Jr., individually, collectively, or in any 

combination. 

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

“document” and “electronically stored information” in Federal Rule of Civil Procedure 

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

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

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

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

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

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

databases and any other electronically stored information, including Documents located on 

remote servers or cloud computing systems, and other data or data compilations from 

which information can be obtained directly or, if necessary, after translation into a 

reasonably usable form. A draft or non-identical copy is a separate document within the 

meaning of the term. 

E. “Electronic Data Host” means any person or entity in the business of 

storing, hosting, or otherwise maintaining electronically stored information. This includes, 

but is not limited to, any entity hosting a website or server, and any entity providing “cloud 

based” electronic storage.

F. “Individual Defendant(s)” means James D. Noland, Jr., Lina Noland, Scott 

A. Harris, and Thomas G. Sacca, Jr., individually, collectively, or in any combination.

G. “Marketing Program” includes, but is not limited to, any multilevel, 

affiliate, or network marketing program, business opportunity, pyramid marketing scheme, 

Ponzi scheme, or chain marketing scheme.

H. “Temporary Receiver” means the temporary receiver appointed in Section 

XV of this Order and any deputy receivers that shall be named by the temporary receiver.

I. “Receivership Entities” means Corporate Defendants as well as any other 

entity that has conducted any business related to Defendants’ marketing of programs, 

opportunities, or services offered by Success By Media, including receipt of Assets derived 

from any activity that is the subject of the Complaint in this matter, and that the Temporary 

Receiver determines is controlled or owned by any Defendant.

ORDER

I. PROHIBITED BUSINESS ACTIVITIES

IT IS THEREFORE ORDERED that Defendants, Defendants’ officers, agents, 

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

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

directly or indirectly, in connection with the advertising, marketing, promoting, or offering 

for sale of any Marketing Program, are temporarily restrained and enjoined from: 

A. Engaging in, participating in, assisting others, or providing others with the 

means and instrumentalities to engage or participate in, any Marketing Program that:

1. Pays compensation for recruiting new members;

2. Encourages or incentivizes members to purchase goods or services to 

obtain or maintain eligibility for bonuses, rewards, or commissions 

rather than for resale or personal use;

3. Induces others to encourage or incentivize members to purchase 

goods or services to obtain or maintain eligibility for bonuses, 

rewards, or commissions rather than for resale or personal use;

4. Pays any compensation related to the purchase or sale of goods or 

services unless such compensation is for sales to or purchases by 

persons who are not members of the Marketing Program and who 

were not being recruited to become members of the Marketing 

Program; 

5. Fails to monitor and take all reasonable steps necessary to ensure that 

any compensation paid is for sales to or purchases by persons who are 

not members of the Marketing Program and who were not being 

recruited to become members of the Marketing Program; or

6. Constitutes a pyramid scheme or chain marketing scheme.

B. Misrepresenting, or assisting others in misrepresenting, directly or indirectly, 

expressly or by implication, any material fact, including, but not limited to, that consumers 

who participate in a Marketing Program will receive or are likely to receive substantial 

income, as well as any other fact material to consumers concerning any good or service, 

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

aspect of its performance, efficacy, nature, or central characteristics.

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C. For any sale for $25 or more made at the residence of the buyer, or of $130 

or more for sales made at a location other than Defendants’ place of business, failing (1) to 

inform any consumer, orally and in writing in a bold, size 10-point font, of the consumer’s 

right to cancel the purchase without penalty within 3 business days and obtain a full refund; 

and (2) failing to provide such refund within 10 business days of request.

D. Failing, with respect to any merchandise sold by Defendants by mail, via the 

Internet, or by telephone that is not shipped within 30 days or within any other time that is 

clearly and conspicuously displayed at the time of purchase, to offer the buyer the option 

to cancel the order and receive a full refund or to consent to a delay; and failing to provide 

consumers a refund when requested under those conditions.

II. 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 receive actual notice of this Order, whether acting directly or indirectly, are 

hereby temporarily restrained and enjoined from:

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

address, birth 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 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 identifying information of any person that any Defendant obtained in 

connection with any activity that pertains to the subject matter of this Order.

Provided, however, that Defendants may disclose such identifying information to a 

law enforcement agency, to their attorneys as required for their defense, as required by any 

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 

in the case.

III. ASSET FREEZE

IT IS FURTHER ORDERED that Defendants and their officers, agents, 

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

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

hereby temporarily restrained and enjoined from:

A. Transferring, liquidating, converting, encumbering, pledging, loaning, 

selling, concealing, dissipating, disbursing, assigning, relinquishing, spending, 

withdrawing, granting a lien or security interest or other interest in, or otherwise disposing 

of any Assets that are:

1. owned or controlled, directly or indirectly, by any Defendant;

2. held, in part or in whole, for the benefit of any Defendant;

3. in the actual or constructive possession of any Defendant; or 

4. owned or controlled by, in the actual or 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 controlled by any Defendant; 

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

boxes, or storage facilities titled or leased in the name of any Defendant, or subject to 

access by any Defendant, except as necessary to comply with written requests from the 

Temporary Receiver acting pursuant to its authority under this Order;

C. 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, 

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 manager. This

includes any corporate bankcard or corporate credit card account for which any Defendant 

is, or was on the date that this Order was signed, an authorized signor; or

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D. Cashing any checks or depositing any money orders or cash received from 

consumers, clients, or customers of any Defendant.

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

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

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

this matter or that is prohibited by this Order. This Section does not prohibit any transfers 

to the Temporary Receiver or repatriation of foreign Assets specifically required by this 

Order or expenditures by the Individual Defendants for minor, day-to-day living expenses.

IV. DUTIES OF ASSET HOLDERS AND OTHER THIRD PARTIES

IT IS FURTHER ORDERED that any financial or brokerage institution, 

Electronic Data Host, credit card processor, payment processor, merchant bank, acquiring 

bank, independent sales organization, third party processor, payment gateway, insurance 

company, business entity, or person who receives actual notice of this Order (by service or 

otherwise) that: 

(a) has held, controlled, or maintained custody, through an account or otherwise, 

of any Document on behalf of any Defendant or any Asset that has been owned or 

controlled, directly or indirectly, by any Defendant; held, in part or in whole, for the benefit 

of any Defendant; in the actual or constructive possession of any Defendant; or owned or 

controlled by, in the actual or 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 controlled by any Defendant; 

(b) has held, controlled, or maintained custody, through an account or otherwise, 

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

Defendant, including reserve funds held by payment processors, credit card processors, 

merchant banks, acquiring banks, independent sales organizations, third party processors, 

payment gateways, insurance companies, or other entities; or 

(c) has extended credit to any Defendant, including through a credit card 

account, shall:

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

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

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

as all Documents or other property related to such Assets, except by further order of this 

Court; provided, however, that this provision does not prohibit an Individual Defendant 

from incurring charges on a personal credit card established prior to entry of this Order, up 

to the pre-existing credit limit;

B. Deny any person, except the Temporary Receiver, access to any safe deposit 

box, commercial mail box, or storage facility that is titled in the name of any Defendant, 

either individually or jointly, or otherwise subject to access by any Defendant;

C. Provide Plaintiff’s counsel and the Temporary Receiver, within 3 days of 

receiving a copy of this Order, a sworn statement setting forth, for each Asset or account 

covered by this Section:

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

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

value of each 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 

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

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

storage facility that is either titled in the name, individually or jointly, 

of any Defendant, or is otherwise subject to access by any Defendant; 

and

D. Upon the request of Plaintiff’s counsel or the Temporary Receiver, promptly 

provide Plaintiff’s counsel and the Temporary Receiver with copies of all records or other 

Documents pertaining to any account covered by this Section or Asset, including originals 

or copies of account applications, account statements, signature cards, checks, drafts, 

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deposit tickets, transfers to and from the accounts, including wire transfers and wire 

transfer instructions, all other debit and credit instruments or slips, currency transaction 

reports, 1099 forms, and all logs and records pertaining to safe deposit boxes, commercial 

mail boxes, and storage facilities.

Provided, however, that this Section does not prohibit any transfers to the 

Temporary Receiver or repatriation of foreign Assets specifically required by this order.

V. FINANCIAL DISCLOSURES

IT IS FURTHER ORDERED that the Corporate Defendants, James D. Noland, 

Jr., Lina Noland, and Scott A. Harris, within 5 days of service of this Order, shall prepare 

and deliver to Plaintiff’s counsel and the Temporary Receiver:

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

Attachment A (Financial Statement of Individual Defendant) for each Individual 

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

Corporate Defendant; and

B. completed Attachment C (IRS Form 4506, Request for Copy of a Tax 

Return) for each Individual and Corporate Defendant.2

VI. FOREIGN ASSET REPATRIATION

IT IS FURTHER ORDERED that within 5 days following the service of this 

Order, the Corporate Defendants, James D. Noland, Jr., Lina Noland, and Scott A. Harris

shall:

A. Provide Plaintiff’s counsel and the Temporary Receiver with a full 

accounting, verified under oath and accurate as of the date of this Order, of all Assets, 

Documents, and accounts outside of the United States which are: (1) titled in the name, 

individually or jointly, of any Defendant; (2) held by any person or entity for the benefit of 

 

2 The obligations in Sections V and VI do not apply to Thomas G. Sacca, Jr. Although

the FTC has provided evidence of the immediate need to identify further assets held by the 

other Individual Defendants, the same showing has not been made as to Sacca. It is a 

significant step to require an individual who has not been found guilty of any crime, not 

been found liable for any civil wrongdoing, and not yet had a chance to be heard to disclose 

his financial and tax history to the FTC. Thus, Sacca is not required to make the financial 

disclosures discussed in Section V and VI at this early juncture of the case.

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any Defendant or for the benefit of any 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 control, whether jointly or singly, of any Defendant; 

B. Take all steps necessary to provide Plaintiff’s counsel and Temporary 

Receiver access to all Documents and records that may be held by third parties located 

outside of the territorial United States of America, including signing the Consent to Release 

of Financial Records appended to this Order as Attachment D.

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

located in foreign countries which are: (1) titled in the name, individually or jointly, of any 

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

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

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

and counsel for Plaintiff of the name and location of the financial institution or other entity 

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

financial institution or other entity.

VII. NON-INTERFERENCE WITH REPATRIATION

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

hereby temporarily restrained and enjoined from taking any action, directly or indirectly, 

which may result in the encumbrance or dissipation of foreign Assets, or in the hindrance 

of the repatriation required by this Order, including, but not limited to:

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

indirectly, that results in a determination by a foreign trustee or other entity that a “duress” 

event has occurred under the terms of a foreign trust agreement until such time that all 

Defendants’ Assets have been fully repatriated pursuant to this Order; or

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

fully repatriated pursuant to this Order.

VIII. CONSUMER CREDIT REPORTS

IT IS FURTHER ORDERED that Plaintiff may obtain credit reports concerning 

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

1681b(a)(1), and that, upon written request, any credit reporting agency from which such 

reports are requested shall provide them to Plaintiff.

IX. PRESERVATION OF RECORDS 

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

hereby temporarily restrained and enjoined from:

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

transferring, or otherwise disposing of, in any manner, directly or indirectly, Documents 

that relate to: (1) the business, business practices, Assets, or business or personal finances 

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

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

directly or indirectly under common control with any other Defendant; and

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.

X. PRESERVATION OF RECORDS BY THIRD PARTIES

IT IS FURTHER ORDERED that any person who receives actual notice of this 

Order (by service or otherwise) that has held, controlled, or maintained custody of any 

Document on behalf of any Defendant that relates to the business or business practices of 

any Defendant or of any directly or indirectly under the control of any Defendant are 

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hereby restrained and enjoined from destroying, erasing, falsifying, writing over, 

mutilating, concealing, altering, transferring, or otherwise disposing of, in any manner, 

directly or indirectly, any such Documents.

XI. REPORT OF NEW BUSINESS ACTIVITY

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

hereby temporarily restrained and enjoined from creating, operating, or exercising any 

control over any business entity, whether newly formed or previously inactive, including 

any partnership, limited partnership, joint venture, sole proprietorship, or corporation, 

without first providing Plaintiff’s counsel and the Receiver with a written statement 

disclosing: (1) the name of the business entity; (2) the address and telephone number of 

the business entity; (3) the names of the business entity’s officers, directors, principals, 

managers, and employees; and (4) a detailed description of the business entity’s intended 

activities.

XII. INTERNATIONAL TRAVEL RESTRICTIONS AND SURRENDER OF 

PASSPORTS—WRIT NE EXEAT

IT IS FURTHER ORDERED that the FTC’s motion for a writ ne exeat republica

as to James D. Noland is denied. As an initial matter, it is unclear whether such a writ is 

available in this circumstance. The great majority of cases, including the jurisprudential 

underpinning of the modern writ ne exeat, found authority to grant such a writ in 26 U.S.C. 

§ 7402. See, e.g., United States v. Shaheen, 445 F.2d 6, 9 n.4 (7th Cir. 1971). Title 26 is 

the tax code—no analogue to § 7402 exists in Title 15, under which the FTC brings this 

action. Although counsel for the FTC indicated the All Writs Act, 28 U.S.C. § 1651, 

provides a basis for the requested writ in this case, the Court has not found any authority 

relying on the All Writs Act to issue such a writ. Shaheen itself does not cite the All Writs 

Act but relies entirely on § 7402.

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Moreover, even if the Court had the authority to grant a writ ne exeat republica, it 

is not warranted in this case. A writ ne exeat republica is “an extraordinary writ” that 

requires a showing of “exceptional circumstances.” Shaheen, 445 F.2d at 10. The FTC has 

failed to show such circumstances here. The FTC seeks this writ against James Noland 

only. The materials submitted by the FTC suggest that Noland left the United States 

months ago and has been absent from the country for an extended period of time. (Doc. 8 

at 51.) It is unclear how a writ designed to keep Noland in the country would be of any 

benefit now that Noland is out of the country. Also, although the FTC argues that the writ 

is necessary to prevent the movement of Noland’s assets out of the United States, it is 

unclear whether the addition of the writ (which may be beyond the Court’s powers) would 

actually further this goal in light of the other (broad) relief the Court is granting. 

XIII. THIRD PARTY INTERNATIONAL TRAVEL PROVIDERS

IT IS FURTHER ORDERED that, in light of the Court’s decision on the writ ne 

exeat republica, the FTC’s request to enjoin common carriers from providing international 

travel to Noland is denied. The Court also notes that, even if it had granted the writ, it is 

not at all clear that it could practicably order common carriers to prevent Noland’s travels. 

XIV. TAMPERING

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

hereby temporarily restrained and enjoined from, in the course of this proceeding:

A. Using or attempting to use force, the threat of force, or payment to influence, 

delay, or prevent the testimony of any person; 

B. Causing or inducing, or attempting to cause or induce, any person to:

1. withhold testimony, or withhold a Document or other object;

2. alter, destroy, mutilate, or conceal any Document or other object with 

intent to impair the integrity or availability of the item;

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3. evade legal process summoning that person to appear as a witness, or 

to produce Document(s) or other object(s); or

4. be absent from an official proceeding to which that person has been 

summoned by legal process.

XV. TEMPORARY RECEIVER

IT IS FURTHER ORDERED that attorney Kimberly Friday is appointed as 

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

Temporary Receiver shall be solely the agent of this Court in acting as Temporary Receiver 

under this Order.

XVI. DUTIES AND AUTHORITY OF THE TEMPORARY RECEIVER

IT IS FURTHER ORDERED that the Temporary Receiver is directed and 

authorized to accomplish the following:

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

Receiver deems necessary or advisable, any director, officer, independent contractor, 

employee, attorney, or agent of any Receivership Entity from control of, management of, 

or participation in, 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. Take exclusive custody, control, and possession of all Documents or Assets 

associated with credits, debits, or charges made on behalf of any Receivership Entity, 

wherever situated, including reserve funds held by payment processors, credit card 

processors, merchant banks, acquiring banks, independent sales organizations, third party 

processors, payment gateways, insurance companies, or other entities; 

D. 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 Temporary Receiver shall assume control over the income and profits 

therefrom and all sums of money now or hereafter due or owing to the Receivership 

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Entities. The Temporary Receiver shall have full power to sue for, collect, and receive, all 

Assets of the Receivership Entities and of other persons or entities whose interests are now 

under the direction, possession, custody, or control of, the Receivership Entities. Provided, 

however, that the Temporary Receiver shall not attempt to collect any amount from a 

consumer if the Temporary Receiver believes the consumer’s debt to the Receivership 

Entities has resulted from the deceptive acts or practices or other violations of law alleged 

in the Complaint in this matter, without prior Court approval;

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

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

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

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

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

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

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

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

FTC’s Digital Forensic Unit, as the FTC may provide in its discretion, for the purpose of 

obtaining electronic documents stored onsite or remotely.

F. Choose, engage, and employ attorneys, accountants, appraisers, and other 

independent contractors and technical specialists, as the Temporary Receiver deems 

advisable or necessary in the performance of duties and responsibilities under the authority 

granted by this Order;

G. Make payments and disbursements from the receivership estate that are 

necessary or 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 advisable in discharging his or her duties as Temporary Receiver. The 

Temporary Receiver shall apply to the Court for prior approval of any payment of any debt 

or obligation incurred by the Receivership Entities prior to the date of entry of this Order, 

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except payments that the Temporary Receiver deems necessary or advisable to secure 

Assets of the Receivership Entities, such as rental payments;

H. Take all steps necessary to secure and take exclusive custody of each location 

from which the Receivership Entities operate their businesses. Such steps may include, 

but are not limited to, any of the following, as the Temporary Receiver deems necessary or 

advisable: (1) securing the location by changing the locks and alarm codes and 

disconnecting any internet access or other means of access to the computers, servers, 

internal networks, or other records maintained at that location; and (2) requiring any 

persons present at the location to leave the premises, to provide the Temporary Receiver 

with proof of identification, and/or to demonstrate to the satisfaction of the Temporary 

Receiver that such persons are not removing from the premises Documents or Assets of 

the Receivership Entities. Law enforcement personnel, including, but not limited to, police 

or sheriffs, may assist the Temporary Receiver in implementing these provisions in order 

to keep the peace and maintain security. If requested by the Temporary Receiver, the 

United States Marshal will provide appropriate and necessary assistance to the Temporary 

Receiver to implement this Order and is authorized to use any necessary and reasonable 

force to do so;

I. 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 Plaintiff’s 

representatives, agents, and assistants, as well as Defendants and their representatives; 

J. Enter into and cancel contracts and purchase insurance as advisable or 

necessary;

K. Prevent the inequitable distribution of Assets and determine, adjust, and 

protect the interests of consumers who have transacted business with the Receivership 

Entities;

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L. Make an accounting, as soon as practicable, of the Assets and financial 

condition of the receivership and file the accounting with the Court and deliver copies 

thereof to all parties;

M. Institute, compromise, adjust, appear in, intervene in, defend, dispose of, 

accept or direct service of process for, or otherwise become party to any legal action in 

state, federal or foreign courts or arbitration proceedings as the Temporary Receiver deems 

necessary and advisable to preserve or recover the Assets of the Receivership Entities, or 

to carry out the Temporary Receiver’s mandate under this Order, including but not limited 

to, actions challenging fraudulent or voidable transfers;

N. Issue subpoenas to obtain Documents and records pertaining to the 

Receivership, and conduct discovery in this action on behalf of the receivership estate, in 

addition to obtaining other discovery as set forth in this Order;

O. Open one or more bank accounts at designated depositories for funds of the 

Receivership Entities. The Temporary Receiver shall deposit all funds of the Receivership 

Entities in such designated accounts and shall make all payments and disbursements from 

the receivership estate from such accounts. The Temporary Receiver shall serve copies of 

monthly account statements on all parties;

P. Maintain accurate records of all receipts and expenditures incurred as 

Temporary Receiver;

Q. Allow the Plaintiffs’ representatives, agents, and assistants, as well as

Defendants’ 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, records, 

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

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

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

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R. Allow the Plaintiffs’ 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; 

S. Cooperate with reasonable requests for information or assistance from any 

state or federal civil or criminal law enforcement agency;

T. Suspend business operations of the Receivership Entities if in the judgment 

of the Temporary Receiver such operations cannot be continued legally and profitably; 

U. If the Temporary 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 Temporary Receiver’s determination by filing a motion with the Court. 

Provided, however, that the Temporary Receiver may delay providing such notice until the 

Temporary Receiver has established control of the nonparty entity and its assets and 

records, if the Temporary Receiver determines that notice to the entity or the parties before 

the Temporary Receiver establishes control over the entity may result in the destruction of 

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

of the entity; and

V. If in the Temporary Receiver’s judgment the business operations cannot be 

continued legally and profitably, take all steps necessary to ensure that any of the 

Receivership Entities’ web pages or websites relating to the activities alleged in the 

Complaint cannot be accessed by the public, or are modified for consumer education and/or 

informational purposes, and take all steps necessary to ensure that any telephone numbers 

associated with the Receivership Entities cannot be accessed by the public, or are answered 

solely to provide consumer education or information regarding the status of operations.

W. Prepare a written report at or before any hearing described in Section XXIX, 

that describes (1) the steps taken by the Receiver to implement the terms of the Order; (2) 

the value of all assets and sum of all liabilities of the Receivership Entities; (3) the steps 

the Receiver intends to take in the future to protect receivership assets, recover receivership 

assets from third parties, and adjust receivership liabilities; (4) the Receiver’s opinion on 

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whether any portion of the business of any of the Receivership Entities can continue to 

operate legally and profitably; and (5) any other matters which the Receiver believes should 

be brought to the Court’s attention. 

XVII. TRANSFER OF RECEIVERSHIP PROPERTY TO THE TEMPORARY 

RECEIVER

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

possession, custody or control of property of, or records relating to, the Receivership 

Entities shall, upon notice of this Order by personal service or otherwise, fully cooperate 

with and assist the Temporary Receiver in taking and maintaining possession, custody, and 

control of the Assets and Documents of the Receivership Entities and immediately transfer 

or deliver to the Temporary Receiver possession, custody, and control of, the following:

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

B. All Documents or Assets associated with credits, debits, or charges made on

behalf of any Receivership Entity, wherever situated, including reserve funds held by 

payment processors, credit card processors, merchant banks, acquiring banks, independent 

sales organizations, third party processors, payment gateways, insurance companies, or 

other entities; 

C. All Documents of or pertaining to the Receivership Entities, including all 

communications occurring via electronic mail, electronic messaging service, or 

encrypted messaging service (including Silent Circle or WhatsApp);

D. All computers, electronic devices, mobile devices, and machines used to 

conduct the business of the Receivership Entities, even if such computers, electronic 

devices, mobile devices, and machines are also used for non-business purposes;

E. All Assets and Documents belonging to other persons or entities whose

interests are under the direction, possession, custody, or control of the Receivership 

Entities; and

F. All keys, codes, user names and passwords necessary to gain or to secure 

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

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access to their business premises, means of communication, accounts, computer systems 

(onsite and remote), Electronic Data Hosts, encrypted messaging services (including Silent 

Circle and WhatsApp), or other property.

In the event that any person or entity fails to deliver or transfer any Asset or 

Document, or otherwise fails to comply with any provision of this Section, the Temporary 

Receiver may file an Affidavit of Non-Compliance regarding the failure and a motion 

seeking compliance or a contempt citation.

XVIII. PROVISION OF INFORMATION TO THE TEMPORARY 

RECEIVER

IT IS FURTHER ORDERED that Defendants shall immediately provide to the 

Temporary Receiver:

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

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

than a Receivership Entity;

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

in active concert and participation with the Receivership Entities, or who have been 

associated or done business with the Receivership Entities; and

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

attorney work product, including files where such documents are likely to be located, 

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

documents.

XIX. COOPERATION WITH THE TEMPORARY RECEIVER

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

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

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

custody, or control of property of or records relating to the Receivership entities who 

receive actual notice of this Order shall fully cooperate with and assist the Temporary 

Receiver. This cooperation and assistance shall include, but is not limited to, providing 

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information to the Temporary Receiver that the Temporary Receiver deems necessary to 

exercise the authority and discharge the responsibilities of the Temporary Receiver under 

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

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

cloud account (including the specific methods to access that account) or electronic file in 

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

should be paid directly to the Temporary Receiver; and transferring funds at the Temporary 

Receiver’s direction and producing records related to the Assets and sales of the 

Receivership Entities.

XX. NON-INTERFERENCE WITH THE TEMPORARY RECEIVER

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

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

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

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

from directly or indirectly:

A. Interfering with the Temporary Receiver’s efforts to manage, or take 

custody, control, or possession of, the Assets or Documents subject to the receivership; 

B. Transacting any of the business of the Receivership Entities;

C. Transferring, receiving, altering, selling, encumbering, pledging, assigning, 

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

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

D. Refusing to cooperate with the Temporary Receiver or the Temporary 

Receiver’s duly authorized agents in the exercise of their duties or authority under any 

order of this Court.

XXI. STAY OF ACTIONS

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

pendency of the receivership ordered herein, Defendants, Defendants’ officers, agents, 

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

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them, who receive actual notice of this Order, and their corporations, subsidiaries, 

divisions, or affiliates, and all investors, creditors, stockholders, lessors, customers and 

other persons seeking to establish or enforce any claim, right, or interest against or on 

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

enjoined from taking action that would interfere with the exclusive jurisdiction of this 

Court over the Assets or Documents of the Receivership Entities, including, but not limited 

to: 

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

Code, 11 U.S.C. § 101 et seq., or of any similar insolvency proceeding on behalf of the 

Receivership Entities;

B. Commencing, prosecuting, or continuing a judicial, administrative, or other 

action or proceeding against the Receivership Entities, including the issuance or 

employment of process against the Receivership Entities, except that such actions may be 

commenced if necessary to toll any applicable statute of limitations; or

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 

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

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

self-help, or otherwise; 

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

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

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

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

obtained in an action or proceeding by a governmental unit to enforce such governmental 

unit’s police or regulatory power.

XXII. COMPENSATION OF THE TEMPORARY RECEIVER

IT IS FURTHER ORDERED that the Temporary Receiver and all personnel hired 

by the Temporary Receiver as herein authorized, including counsel to the Temporary 

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Receiver and accountants, are entitled to reasonable compensation for the performance of 

duties pursuant to this Order and for the cost of actual out-of-pocket expenses incurred by 

them, from the Assets now held by, in the possession or control of, or which may be 

received by, the Receivership Entities. The Temporary 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 60 days after the date of entry 

of this Order. The Temporary Receiver shall not increase the hourly rates used as the bases 

for such fee applications without prior approval of the Court.

XXIII. TEMPORARY RECEIVER’S BOND

IT IS FURTHER ORDERED that the Receiver is not required to file with the 

Clerk of this Court a bond until further order of the Court, conditioned that the Receiver 

will well and truly perform the duties of the office and abide by and perform all acts the 

Court directs. 

XXIV. IMMEDIATE ACCESS TO BUSINESS PREMISES AND RECORDS

IT IS FURTHER ORDERED that:

A. In order to allow Plaintiff and the Temporary Receiver to preserve Assets 

and evidence relevant to this action and to expedite discovery, Plaintiff and the Temporary 

Receiver, and their representatives, agents, contractors, and assistants, shall have 

immediate access to the business premises and storage facilities, owned, controlled, or used 

by the Receivership Entities. Such locations include, but are not limited to, 4465 W Sunset 

Rd, Las Vegas, NV 89118, 2875 St Rose Pkwy Henderson, NV 89052, 18 E Broadway, 

Winchester, KY 40391 and any offsite location, commercial mailbox, or storage facility 

used by the Receivership Entities. The Temporary Receiver may exclude Defendants, 

Receivership Entities, and their employees from the business premises during the 

immediate access and subsequently at the Temporary Receiver’s discretion.

B. Plaintiff and the Temporary Receiver, and their representatives, agents, 

contractors, and assistants, are authorized to remove Documents from the Receivership 

Entities’ premises in order that they may be inspected, inventoried, and copied. Plaintiff 

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shall return any removed materials to the Temporary Receiver within 5 business days of 

completing inventorying and copying, or such time as is agreed upon by Plaintiff and the 

Temporary Receiver;

C. Plaintiff’s access to the Receivership Entities’ documents pursuant to this 

Section shall not provide grounds for any Defendant to object to any subsequent request 

for documents served by Plaintiff;

D. Plaintiff and the Temporary Receiver, and their representatives, agents, 

contractors, and assistants, are authorized to obtain the assistance of federal, state and local 

law enforcement officers as they deem necessary to effect service and to implement 

peacefully the provisions of this Order; 

E. If any Documents, computers, or electronic storage devices containing 

information related to the business practices or finances of the Receivership Entities are at 

a location other than those listed herein, including personal residence(s) of any Defendant, 

then, immediately upon receiving notice of this order, Defendants and Receivership 

Entities shall produce to the Temporary Receiver all such Documents, computers, and 

electronic storage devices, along with any codes or passwords needed for access. In order 

to prevent the destruction of computer data, upon service of this Order, any such computers 

or electronic storage devices shall be powered down in the normal course of the operating 

system used on such devices and shall not be powered up or used until produced for 

copying and inspection; and

F. If any communications or records of any Receivership Entity are stored with 

an Electronic Data Host, such entity shall, immediately upon receiving notice of this Order, 

provide the Temporary Receiver with the username, passwords, and any other login 

credential needed to access the communications and records, and shall not attempt to 

access, or cause a third-party to attempt to access, the communications or records.

XXV. DISTRIBUTION OF ORDER BY DEFENDANTS

IT IS FURTHER ORDERED that Defendants shall immediately provide a copy 

of this Order to each affiliate, telemarketer, marketer, sales entity, successor, assign, 

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member, officer, director, employee, agent, independent contractor, client, attorney, 

spouse, subsidiary, division, and representative of any Defendant, and shall, within 10 days 

from the date of entry of this Order provide Plaintiff and the Temporary Receiver with a 

sworn statement whether this provision of the Order has been satisfied, which statement 

shall include 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 that would encourage any person who should receive a copy of this Order 

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

Order or believe that they are not bound by its provisions.

XXVI. EXPEDITED DISCOVERY

IT IS FURTHER ORDERED that, notwithstanding the provisions of the Fed. R. 

Civ. P. 26(d) and (f) and 30(a)(2)(A)(iii), and pursuant to Fed. R. Civ. P. 30(a), 33, 34, and 

45, Plaintiff and the Temporary Receiver are granted leave, at any time after service of this 

Order, to conduct limited expedited discovery for the purpose of discovering: (1) the 

nature, location, status, and extent of Defendants’ Assets3; (2) the nature, location, and 

extent of Defendants’ business transactions and operations; (3) Documents reflecting 

Defendants’ business transactions and operations; or (4) compliance with this Order. The 

limited expedited discovery set forth in this Section shall proceed as follows:

A. Plaintiff and the Temporary Receiver may take the deposition of parties and 

non-parties. Forty-eight (48) hours’ notice shall be sufficient notice for such depositions. 

The limitations and conditions set forth in Rules 30(a)(2)(B) and 31(a)(2)(B) of the Federal 

Rules of Civil Procedure regarding subsequent depositions of an individual shall not apply 

to depositions taken pursuant to this Section. Any such deposition taken pursuant to this 

Section shall not be counted towards the deposition limit set forth in Rules 30(a)(2)(A) and 

31(a)(2)(A) and depositions may be taken by telephone or other remote electronic means; 

 

3 For the reasons set forth in footnote 2, supra, Thomas G. Sacca, Jr. is excluded from 

this requirement. He remains subject to the remaining requirements of this section. 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 27 of 64
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B. Plaintiff and the Temporary Receiver may serve upon parties requests for 

production of Documents or inspection that require production or inspection within 5 days 

of service, provided, however, that 3 days of notice shall be deemed sufficient for the 

production of any such Documents that are maintained or stored only in an electronic 

format. 

C. Plaintiff and the Temporary Receiver may serve upon parties interrogatories 

that require response within 5 days after Plaintiff serves such interrogatories;

D. The Plaintiff and the Temporary Receiver may serve subpoenas upon nonparties that direct production or inspection within 5 days of service.

E. Service of discovery upon a party to this action, taken pursuant to this 

Section, shall be sufficient if made by facsimile, email, or by overnight delivery. 

F. Any expedited discovery taken pursuant to this Section is in addition to, and 

is not subject to, the limits on discovery set forth in the Federal Rules of Civil Procedure 

and the Local Rules of this Court. The expedited discovery permitted by this Section does 

not require a meeting or conference of the parties, pursuant to Rules 26(d) & (f) of the 

Federal Rules of Civil Procedure.

G. The parties are exempted from making initial disclosures under Fed. R. Civ. 

P. 26(a)(1) until further order of this Court.

XXVII. SERVICE OF THIS ORDER

IT IS FURTHER ORDERED that copies of this Order as well as the Motion for 

Temporary Restraining Order and all other pleadings, Documents, and exhibits filed 

contemporaneously with that Motion (other than the complaint and summons), may be 

served by any means, including facsimile transmission, electronic mail or other electronic 

messaging, personal or overnight delivery, U.S. Mail or FedEx, by agents and employees 

of Plaintiff, by any law enforcement agency, or by private process server, upon any 

Defendant or any person (including any financial institution) that may have possession, 

custody or control of any Asset or Document of any Defendant, or that may be subject to 

any provision of this Order pursuant to Rule 65(d)(2) of the Federal Rules of Civil

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Procedure. For purposes of this Section, service upon any branch, subsidiary, affiliate, or 

office of any entity shall effect service upon the entire entity. 

XXVIII. CORRESPONDENCE AND SERVICE ON PLAINTIFF

IT IS FURTHER ORDERED that, for the purpose of this Order, all 

correspondence and service of pleadings on Plaintiff shall be addressed to:

Jonathan W. Ware, Esq.

Federal Trade Commission

Bureau of Consumer Protection | Enforcement Division

600 Pennsylvania Avenue, NW, CC-9528

Washington, DC 20580

T +1 202 326 2726

F +1 202 326 3197

jware1@ftc.gov

XXIX. PRELIMINARY INJUNCTION HEARING

IT IS FURTHER ORDERED that, pursuant to Fed. R. Civ. P. 65(b), the parties 

shall appear before this Court in Courtroom 601, Sandra Day O’Connor United States 

Courthouse, 401 W. Washington Street, Phoenix, Arizona 85003, on January 27, 2020, at 

9:30 a.m. (Arizona time) for a hearing to show cause, if there is any, why this Court should 

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

Defendants, enjoining the violations of the law alleged in the Complaint, continuing the 

freeze of their Assets, continuing the receivership, and imposing such additional relief as 

may be appropriate. 

XXX. BRIEFS AND AFFIDAVITS CONCERNING PRELIMINARY 

INJUNCTION

IT IS FURTHER ORDERED that:

A. Defendants shall file with the Court and serve on Plaintiff’s counsel any 

answering pleadings, affidavits, motions, expert reports or declarations, or legal 

memoranda no later than 4 days prior to the order to show cause hearing scheduled pursuant 

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to this Order. Plaintiff may file responsive or supplemental pleadings, materials, affidavits, 

or memoranda with the Court and serve the same on counsel for Defendants no later than 

1 day prior to the order to show cause hearing. Provided that such affidavits, pleadings, 

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

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

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

Section. 

B. An evidentiary hearing on Plaintiff’s request for a preliminary injunction is 

not necessary unless Defendants demonstrate that they have, and intend to introduce, 

evidence that raises a genuine and material factual issue. The question of whether this 

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

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

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

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

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

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

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

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

a timely motion to present live testimony or to present live testimony in response to another 

party’s timely motion to present live testimony shall be filed with this Court and served on 

the other parties at least 3 days prior to the order to show cause hearing.

Provided, however, that this service shall be performed by personal or overnight 

delivery, facsimile or email, and Documents shall be delivered so that they shall be 

received by the other parties no later than 5:00 p.m. (Arizona time) on the appropriate dates 

provided in this Section. 

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XXXI. DURATION OF THE ORDER

IT IS FURTHER ORDERED that this Order shall expire 14 days from the date of 

entry noted below, unless within such time, the Order is extended for an additional period 

pursuant to Fed. R. Civ. P. 65(b)(2).

XXXII. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter 

for all purposes.

Dated this 13th day of January, 2020.

Cc: Plaintiff’s counsel Evan Mendelson and Jonathan Ware

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 31 of 64
Attachment A 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 32 of 64
Federal Trade Commission Financial Statement of Individual Defendant 

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.

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 33 of 64
 

 1 of 10 Federal Trade Commission Financial Statement of Individual Defendant

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: ( ) 

Date of Birth: / /

 (mm/dd/yyyy)

Place of Birth

Rent Own From (Date): / /

 (mm/dd/yyyy)

E-Mail Address

Internet Home Page

Previous Addresses for past five years (if required, use additional pages at end of form)

Address From: / / Until: / / 

 (mm/dd/yyyy) (mm/dd/yyyy)

Rent Own 

Address From: / / Until: / / 

Rent Own 

Address From: / / Until: / / 

Rent 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. Date of Birth

 / / 

(mm/dd/yyyy)

Address (if different from yours)

 

Phone Number

( )

Place of Birth

Rent Own From (Date): / /

 (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 

 

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

( ) 

Initials: 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 34 of 64
 

 2 of 10 Federal Trade Commission Financial Statement of Individual Defendant

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

 Social Security No. Date of Birth

 / / 

(mm/dd/yyyy)

Relationship

 

Name and Address

 Social Security No. Date of Birth

 / / 

(mm/dd/yyyy)

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.

From (Month/Year)

 / 

To (Month/Year)

 / 

Year Income

20 $

Ownership Interest? Yes No $ 

Positions Held From (Month/Year) To (Month/Year) $ 

/ / $ 

/ / $ 

/ / $ 

Company Name and Address

 Dates Employed Income Received: Y-T-D & 5 Prior Yrs.

From (Month/Year)

 / 

To (Month/Year)

 / 

Year Income

20 $

Ownership Interest? Yes No $ 

Positions Held From (Month/Year) To (Month/Year) $ 

/ / $ 

/ / $ 

/ / $ 

Company Name and Address

 Dates Employed Income Received: Y-T-D & 5 Prior Yrs.

From (Month/Year)

 / 

To (Month/Year)

 / 

Year Income

20 $

Ownership Interest? Yes No $ 

Positions Held From (Month/Year) To (Month/Year) $ 

/ / $ 

/ / $ 

/ / $ 

Initials: 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 35 of 64
 

 3 of 10 Federal Trade Commission Financial Statement of Individual Defendant

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.

Caption of Proceeding Court or Agency and Location Case No. Nature of 

Proceeding Relief Requested Status or 

Disposition

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

Initials: 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 36 of 64
 

 4 of 10 Federal Trade Commission Financial Statement of Individual Defendant

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 $ Form of Cash on Hand 

b. Name on Account 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

 

Type of Security

 

No. of Units Owned

 

Broker House, Address

 

Broker Account No.

Current Fair Market Value

$ 

Loan(s) Against Security

$ 

Owner of Security

 

Issuer

 

Type of Security

 

No. of Units Owned

 

Broker House, Address

 

Broker Account No.

Current Fair Market Value

$ 

Loan(s) Against Security

$ 

Owner of Security

 

Issuer

 

Type of Security

 

No. of Units Owned

 

Broker House, Address

 

Broker Account No.

Current Fair Market Value

$ 

Loan(s) Against Security

$ 

Initials: 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 37 of 64
 

 5 of 10 Federal Trade Commission Financial Statement of Individual Defendant

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)

/

Original Amount Owed

$ 

Nature of Obligation (if the result of a final court 

judgment or settlement, provide court name 

and docket number)

Current Amount Owed $ Payment Schedule

$ 

Debtor’s Telephone

 

Debtor’s Relationship to You

 

Debtor’s Name & Address

 

Date Obligation 

Incurred (Month/Year)

/

Original Amount Owed

$ 

Nature of Obligation (if the result of a final court 

judgment or settlement, provide court name 

and docket number)

Current Amount Owed $ Payment Schedule

$ 

Debtor’s Telephone

 

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. Face Value

$

Insured

 

Loans Against Policy

$ 

Surrender Value

$ 

Insurance Company’s Name, Address, & Telephone No.

 

Beneficiary

 

Policy No.

 

Face Value

$ 

Insured

 

Loans Against Policy

$ 

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

 

Account No.

 

Date Established

 / / 

(mm/dd/yyyy)

Type of Plan

 

Surrender Value before 

Taxes and Penalties 

$

Trustee or Administrator’s Name, Address & Telephone No.

 

Name on Account Account No.

Date Established

 / / 

Type of Plan

 

Surrender Value before 

Taxes and Penalties 

$

Initials: 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 38 of 64
 

 6 of 10 Federal Trade Commission Financial Statement of Individual Defendant

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 Year Registered Owner’s Name Purchase Price

$

Original Loan Amount

$

Current Balance

$

Make Registration State & No. Account/Loan No. Current Value

$

Monthly Payment

$

Model

 

Address of Vehicle’s Location

 

Lender’s Name and Address

 

Vehicle Type Year Registered Owner’s Name Purchase Price

$

Original Loan Amount

$

Current Balance

$

Make Registration State & No. Account/Loan No. Current Value

$

Monthly Payment

$

Model

 

Address of Vehicle’s Location

 

Lender’s Name and Address

 

Vehicle Type Year Registered Owner’s Name Purchase Price

$

Original Loan Amount

$

Current Balance

$

Make Registration State & No. Account/Loan No. Current Value

$

Monthly Payment

$

Model

 

Address of Vehicle’s Location

 

Lender’s Name and Address

 

Vehicle Type Year Registered Owner’s Name Purchase Price

$

Original Loan Amount

$

Current Balance

$

Make Registration State & No. Account/Loan No. Current Value

$

Monthly Payment

$

Model

 

Address of Vehicle’s Location

 

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

$ $

$ $

$ $

Initials: 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 39 of 64
 

 7 of 10 Federal Trade Commission Financial Statement of Individual Defendant

Item 18. Real Property

List all real property interests (including any land contract) 

Property’s Location

 

Type of Property

 

Name(s) on Title or Contract and Ownership Percentages

 

Acquisition Date (mm/dd/yyyy)

/ /

Purchase Price

$

Current Value

$

Basis of Valuation

Lender’s Name and Address

 

Loan or Account No.

 

Current Balance On First Mortgage or 

Contract

$

Monthly Payment

$

Other Mortgage Loan(s) (describe)

 

Monthly Payment

$

Rental Unit

Monthly Rent Received

$

Current Balance

$

Property’s Location

 

Type of Property

 

Name(s) on Title or Contract and Ownership Percentages

 

Acquisition Date (mm/dd/yyyy)

 / / 

Purchase Price

$

Current Value

$

Basis of Valuation

Lender’s Name and Address

 

Loan or Account No.

 

Current Balance On First Mortgage or 

Contract

$

Monthly Payment

$

Other Mortgage Loan(s) (describe)

 

Monthly Payment

$

Rental Unit

Monthly Rent Received

$ Current Balance

$

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

$

$

$

Initials: 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 40 of 64
 

 8 of 10 Federal Trade Commission Financial Statement of Individual Defendant

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

 / / 

(mm/dd/yyyy)

Original Amount Owed

$ 

Current Amount Owed

$ 

Payment Schedule

 

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)

Original Amount Owed

$ 

Current 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.

Initials: 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 41 of 64
 

 9 of 10 Federal Trade Commission Financial Statement of Individual Defendant

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) $ Loans Against Publicly Traded Securities (Item 10) $

Funds Held in Financial Institutions (Item 9) $ Vehicles - Liens (Item 16) $

U.S. Government Securities (Item 10) $ Real Property – Encumbrances (Item 18) $

Publicly Traded Securities (Item 10) $ Credit Cards (Item 19) $

Non-Public Business and Financial Interests (Item 11) $ Taxes Payable (Item 20) $

Amounts Owed to You (Item 12) $ Amounts Owed by You (Item 21) $

Life Insurance Policies (Item 13) $ Other Liabilities (Itemize)

Deferred Income Arrangements (Item 14) $ $

Vehicles (Item 16) $ $

Other Personal Property (Item 17) $ $

Real Property (Item 18) $ $

Other Assets (Itemize) $

$ $

$ $

$ $

Total Assets $ 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) Expenses

Salary - After Taxes

Source: $ Mortgage or Rental Payments for Residence(s) $ 

Fees, Commissions, and Royalties

Source: $ Property Taxes for Residence(s) $ 

Interest

Source: $ Rental Property Expenses, Including Mortgage Payments, Taxes, 

and Insurance $ 

Dividends and Capital Gains

Source: $ Car or Other Vehicle Lease or Loan Payments $ 

Gross Rental Income

Source: $ Food Expenses $ 

Profits from Sole Proprietorships

Source: $ Clothing Expenses $ 

Distributions from Partnerships, S-Corporations, 

and LLCs

Source:

$ 

Utilities

$ 

Initials: 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 42 of 64
 

 10 of 10 Federal Trade Commission Financial Statement of Individual Defendant

Item 26. Combined Current Monthly Income and Expenses for You, Your Spouse, and Your Dependents (cont.)

Distributions from Trusts and Estates

Source: $ Medical Expenses, Including Insurance $ 

Distributions from Deferred Income Arrangements 

Source: $ Other Insurance Premiums

$ 

Social Security Payments $ Other Transportation Expenses $

Alimony/Child Support Received $ Other Expenses (Itemize)

Gambling Income $ $

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

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 43 of 64
Attachment B 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 44 of 64
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 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 45 of 64
Page 2 Initials __________

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. __________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 46 of 64
Page 3 Initials __________

Item 4. Principal Stockholders

List all persons and entities that own at least 5% of the corporation’s stock.

Name & Address % Owned

_________________________________________________________________________________ ______________

_________________________________________________________________________________ ______________

_________________________________________________________________________________ ______________

_________________________________________________________________________________ ______________

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

_______________________________________________________________________________ ________________

_______________________________________________________________________________ ________________

_______________________________________________________________________________ ________________

_______________________________________________________________________________ ________________

_______________________________________________________________________________ ________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 47 of 64
Page 4 Initials __________

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. 

Individual’s Name Business Name & Address 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

_________________________________________________________ _________________ ______________________

_________________________________________________________ _________________ ______________________

_________________________________________________________ _________________ ______________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 48 of 64
Page 5 Initials __________

Item 10. Outside Accountants

List all outside accountants retained by the corporation during the last three years.

Name Firm 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. 

Name, Address, & Telephone Number Position(s) Held

____________________________________________________________________________ ___________________

____________________________________________________________________________ ___________________

____________________________________________________________________________ ___________________

____________________________________________________________________________ ___________________

Item 12. Attorneys

List all attorneys retained by the corporation during the last three years.

Name Firm Name Address

____________________ ___________________________ ________________________________________________

____________________ ___________________________ ________________________________________________

____________________ ___________________________ ________________________________________________

____________________ ___________________________ ________________________________________________

____________________ ___________________________ ________________________________________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 49 of 64
Page 6 Initials __________

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______________________________________________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 50 of 64
Page 7 Initials __________

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______________________________________________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 51 of 64
Page 8 Initials __________

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

___________ __________ $_________ $_________ $__________ $__________ ______________________________

___________ __________ $_________ $_________ $__________ $__________ ______________________________

___________ __________ $_________ $_________ $__________ $__________ ______________________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 52 of 64
Page 9 Initials __________

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

_____________________________________ _______________________________ ______________ $___________

_____________________________________ _______________________________ ______________ $___________

_____________________________________ _______________________________ ______________ $___________

_____________________________________ _______________________________ ______________ $___________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 53 of 64
Page 10 Initials __________

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 $_____________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 54 of 64
Page 11 Initials __________

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

______________________________________ _______________________________________ $_________________

______________________________________ _______________________________________ $_________________

______________________________________ _______________________________________ $_________________

______________________________________ _______________________________________ $_________________

______________________________________ _______________________________________ $_________________

______________________________________ _______________________________________ $_________________

______________________________________ _______________________________________ $_________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 55 of 64
Page 12 Initials __________

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 $____________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 56 of 64
Page 13 Initials __________

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

_____________________________ $____________ $___________ $____________ ___________________________

_____________________________ $____________ $___________ $____________ ___________________________

_____________________________ $____________ $___________ $____________ ___________________________

_____________________________ $____________ $___________ $____________ ___________________________

_____________________________ $____________ $___________ $____________ ___________________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 57 of 64
Page 14 Initials __________

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)

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

______________________________________ ________________ $____________ __________ _________________

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 58 of 64
Page 15 Initials __________

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

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 59 of 64
Attachment C 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 60 of 64
Form 4506

(July 2017)

Department of the Treasury 

Internal Revenue Service 

Request for Copy of Tax Return

a Do not sign this form unless all applicable lines have been completed.

a Request may be rejected if the form is incomplete or illegible. 

a 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. a

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 Cost for each return . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 

b Number of returns requested on line 7 . . . . . . . . . . . . . . . . . . . . . .

c Total cost. Multiply line 8a by line 8b . . . . . . . . . . . . . . . . . . . . . . $ 

9 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 . . . . .

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 

Phone number of taxpayer on line 

1a or 2a 

F

Signature (see instructions) Date 

F

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

F

Spouse’s signature Date 

For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat. No. 41721E Form 4506 (Rev. 7-2017) 

50.00

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 61 of 64
Form 4506 (Rev. 7-2017) Page 2 

Section references are to the Internal Revenue Code 

unless otherwise noted. 

Future Developments

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: 

Mail to: 

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 

Internal Revenue Service 

RAIVS Team 

Stop 6716 AUSC 

Austin, TX 73301 

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 

Internal Revenue Service 

RAIVS Team 

Stop 37106 

Fresno, CA 93888 

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 

Internal Revenue Service 

RAIVS Team 

Stop 6705 P-6 

Kansas City, MO 

64999

Chart for all other returns 

If you lived in 

or your business 

was in: 

Mail to: 

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 

Internal Revenue Service 

RAIVS Team 

P.O. Box 9941 

Mail Stop 6734 

Ogden, UT 84409 

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 

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 3. Enter your current address. If you use a P.O. 

box, please include it on this line 3.

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. 

F!

CAUTION

You must check the box in the 

signature area to acknowledge you 

have the authority to sign and request 

the information. The form will not be 

processed and returned to you if the box is 

unchecked.

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. 

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.

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. 

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.

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. 

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. 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 62 of 64
Attachment D 

Case 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 63 of 64
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, 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 every 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 [ ], now pending in the United States 

District Court of [ ], and this shall be irrevocable authority for so doing. 

 This direction is intended to apply to the laws of countries other than the 

United 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 2:20-cv-00047-DWL Document 21 Filed 01/13/20 Page 64 of 64