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ALDEN F. ABBOTT

General Counsel

JANET M. EVANS 

DC Bar No. 358467; jevans@ftc.gov

600 Pennsylvania Ave., N.W.

Mail Drop CC-10528

Washington, D.C. 20580

Tel: (202) 326-2125; Fax: (202) 326-3259

ROBERT QUIGLEY 

(Local Counsel)

CA Bar No. 302879; rquigley@ftc.gov

10990 Wilshire Blvd., Suite 400 

Los Angeles, California 90024 

Tel: (310) 824-4300; Fax: (310) 824-4380

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

FEDERAL TRADE COMMISSION,

Plaintiff, 

v. 

NOBETES CORPORATION, a/k/a SIDE 

EFFECTS SOLUTIONS CORPORATION, 

a corporation, 

MARVIN SILVER, individually and as an 

officer and director of Nobetes Corporation, 

and

JEFFREY FLEITMAN, individually and as 

an officer and director of Nobetes

Corporation,

Defendants.

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Case No. 

[PROPOSED] STIPULATED 

ORDER FOR PERMANENT 

INJUNCTION AND 

MONETARY JUDGMENT

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

Complaint for Permanent Injunction and Other Equitable Relief (“Complaint”), for 
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a permanent injunction and other equitable relief in this matter, pursuant to Section 

13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b), to 

obtain permanent injunctive relief for Defendants’ acts or practices in violation of 

Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and 52. The Commission 

and Defendants stipulate to the entry of this Stipulated Order for Permanent 

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

this action between them.

THEREFORE, IT IS ORDERED as follows:

FINDINGS

1. This Court has jurisdiction over this matter.

2. The Complaint charges that Defendants participated in deceptive and unfair 

acts or practices in violation of Sections 5 and 12 of the FTC Act, 15 U.S.C. §§ 45

and 52, in connection with the advertising and labeling, offering for sale, sale, or 

distribution of Nobetes. 

3. Defendants neither admit nor deny any of the allegations in the Complaint, 

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

Defendants admit the facts necessary to establish jurisdiction. 

4. Defendants waive any claim that they may have under the Equal Access to 

Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through 

the date of this Order, and agree to bear their own costs and attorney fees.

5. Defendants waive all rights to appeal or otherwise challenge or contest the 

validity of this Order.

DEFINITIONS

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

A. “Billing Information” means any data that enables any person to access a 

consumer’s account, such as a credit card, checking, savings, share or similar 

account, utility bill, mortgage loan account, or credit card.
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B. “Charge,” “Charged,” or “Charging” means any attempt to collect money 

or other consideration from a consumer, including but not limited to causing 

Billing Information to be submitted for payment, including against the consumer’s 

credit card, debit card, bank account, telephone bill, or other account.

C. “Clear(ly) and Conspicuous(ly)” means that a required disclosure is 

difficult to miss (i.e., easily noticeable) and easily understandable by ordinary 

consumers, including in all of the following ways:

1. In any communication that is solely visual or solely audible, the 

disclosure must be made through the same means through which the 

communication is presented. In any communication made through both 

visual and audible means, such as a television advertisement, the disclosure 

must be presented simultaneously in both the visual and audible portions of 

the communication even if the representation requiring the disclosure is 

made in only one means.

2. A visual disclosure, by its size, contrast, location, the length of time it 

appears, and other characteristics, must stand out from any accompanying 

text or other visual elements so that it is easily noticed, read, and understood.

3. An audible disclosure, including by telephone or streaming video, 

must be delivered in a volume, speed, and cadence sufficient for ordinary 

consumers to easily hear and understand it.

4. In any communication using an interactive electronic medium, such as 

the Internet or software, the disclosure must be unavoidable. 

5. The disclosure must use diction and syntax understandable to ordinary 

consumers and must appear in each language in which the representation 

that requires the disclosure appears.

6. The disclosure must comply with these requirements in each medium 

through which it is received, including all electronic devices and face-to-face 
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communications.

7. The disclosure must not be contradicted or mitigated by, or 

inconsistent with, anything else in the communication.

8. When the representation or sales practice targets a specific audience, 

such as children, the elderly, or the terminally ill, “ordinary consumers” 

includes reasonable members of that group.

D. “Close Proximity” means immediately adjacent to the triggering 

representation. In the case of advertisements disseminated verbally or through 

audible means, the disclosure shall be made as soon as practicable after the 

triggering representation. 

E. “Covered Product” means any Dietary Supplement, Food, or Drug, 

including Nobetes.

F. “Defendants” means all of the Individual Defendants and the Corporate 

Defendant, individually, collectively, or in any combination. 

1. “Corporate Defendant” means Nobetes Corporation and its 

successors and assigns. Nobetes Corporation includes Side Effects 

Solutions.

2. “Individual Defendants” means Marvin Silver and Jeffrey Fleitman.

G. “Diabetes Product” means any Covered Product promoted for the 

prevention, mitigation, or treatment of diabetes or high blood sugar.

H. “Dietary Supplement” means: (1) any product labeled as a Dietary 

Supplement or otherwise represented as a Dietary Supplement; or (2) any pill, 

tablet, capsule, powder, softgel, gelcap, liquid, or other similar form containing one 

or more ingredients that are a vitamin, mineral, herb or other botanical, amino acid, 

probiotic, or other dietary substance for use by humans to supplement the diet by 

increasing the total dietary intake, or a concentrate, metabolite, constituent, extract, 

or combination of any ingredient described above, that is intended to be ingested, 
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and is not represented to be used as a conventional food or as a sole item of a meal 

or the diet.

I. “Drug” means: (1) articles recognized in the official United States

Pharmacopoeia, official Homoeopathic Pharmacopoeia of the United States, or 

official National Formulary, or any supplement to any of them; (2) articles 

intended for use in the diagnosis, cure, mitigation, treatment, or prevention of 

disease in humans or other animals; (3) articles (other than Food) intended to affect 

the structure or any function of the body of humans or other animals; and (4) 

articles intended for use as a component of any article specified in (1), (2), or (3); 

but does not include devices or their components, parts, or accessories.

J. “Essentially Equivalent Product” means a product that contains the 

identical ingredients, except for inactive ingredients (e.g., binders, colors, fillers, 

excipients) in the same form and dosage, and with the same route of administration 

(e.g., orally, sublingually), as the Covered Product; provided that the Covered 

Product may contain additional ingredients if reliable scientific evidence generally 

accepted by experts in the field indicates that the amount and combination of 

additional ingredients is unlikely to impede or inhibit the effectiveness of the 

ingredients in the Essentially Equivalent Product.

K. “Food” means: (1) any article used for Food or drink for humans or other 

animals; (2) chewing gum; and (3) any article used for components of any such 

article. 

L. “Negative Option Feature” means, in an offer or agreement to sell or 

provide any good, program, or service, a provision under which the consumer’s 

silence or failure to take an affirmative action to reject goods or services, or to 

cancel the agreement, is interpreted by the seller or provider as acceptance or 

continuing acceptance of the offer.

M. “Telemarketing” means any plan, program, or campaign conducted to 
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induce the purchase of any good, service, plan or program, by use of one or more 

telephones, and which involves a telephone call, whether or not covered by the 

Telemarketing Sales Rule, 16 C.F.R. Part 310.

ORDER

I. BAN ON SALES OF NOBETES AND OTHER

DIABETES PRODUCTS

IT IS ORDERED that Defendants are permanently restrained and enjoined 

from advertising, labeling, marketing, promoting, or offering for sale Nobetes and 

any other Diabetes Product. 

II. PROHIBITED REPRESENTATIONS: HEALTH-RELATED 

CLAIMS REQUIRING HUMAN CLINICAL TESTING FOR

SUBSTANTIATION

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, in connection with the manufacturing, labeling, 

advertising, promotion, offering for sale, sale, or distribution of any Covered 

Product, other than a product banned under the Section entitled Ban on Sales of 

Nobetes and Other Diabetes Products, are permanently restrained and enjoined 

from making, or assisting others in making, expressly or by implication, including 

through the use of a product or program name, endorsement, depiction, or 

illustration, any representation that such product cures, mitigates, or treats any 

disease, unless the representation is non-misleading, and, at the time of making 

such representation, they possess and rely upon competent and reliable scientific 

evidence substantiating that the representation is true. For purposes of this 

Section, competent and reliable scientific evidence shall consist of human clinical 

testing of the Covered Product, or of an Essentially Equivalent Product, that is 
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sufficient in quality and quantity based on standards generally accepted by experts

in the relevant disease, condition, or function to which the representation relates, 

when considered in light of the entire body of relevant and reliable scientific 

evidence, to substantiate that the representation is true. Such testing must be: (1) 

randomized, double-blind, and placebo-controlled; and (2) conducted by 

researchers qualified by training and experience to conduct such testing. In 

addition, all underlying or supporting data and documents generally accepted by 

experts in the field as relevant to an assessment of such testing as described in the 

Section entitled Preservation of Records Relating to Competent and Reliable 

Human Clinical Tests or Studies must be available for inspection and production to 

the Commission. Persons covered by this Section have the burden of proving that 

a product satisfies the definition of Essentially Equivalent Product.

III. PROHIBITED REPRESENTATIONS: 

OTHER HEALTH-RELATED CLAIMS

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, in connection with the manufacturing, labeling, 

advertising, promotion, offering for sale, sale, or distribution of any Covered 

Product, other than a product banned under the Section entitled Ban on Sales of 

Nobetes and Other Diabetes Products, are permanently restrained and enjoined 

from making, or assisting others in making, expressly or by implication, including 

through the use of a product or program name, endorsement, depiction, or 

illustration, any representation, other than representations covered under the 

Section of this Order entitled Prohibited Representations: Health-Related Claims 

Requiring Human Clinical Testing For Substantiation, about the health benefits, 

performance, efficacy, safety, or side effects of any Covered Product, or that 
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diabetes causes nutrient deficiencies requiring supplementation, unless the 

representation is non-misleading, and, at the time of making such representation, 

they possess and rely upon competent and reliable scientific evidence that is 

sufficient in quality and quantity based on standards generally accepted by experts 

in the relevant disease, condition, or function to which the representation relates, 

when considered in light of the entire body of relevant and reliable scientific 

evidence, to substantiate that the representation is true. 

For purposes of this Section, competent and reliable scientific evidence 

means tests, analyses, research, or studies (1) that have been conducted and 

evaluated in an objective manner by experts in the relevant disease, condition, or 

function to which the representation relates; (2) that are generally accepted by such 

experts to yield accurate and reliable results; and (3) that are randomized, doubleblind, and placebo-controlled human clinical testing of the Covered Product, or of 

an Essentially Equivalent Product, when such experts would generally require such 

human clinical testing to substantiate that the representation is true. In addition, 

when such tests or studies are human clinical tests or studies, all underlying or 

supporting data and documents generally accepted by experts in the field as 

relevant to an assessment of such testing as set forth in the Section entitled 

Preservation of Records Relating to Competent and Reliable Human Clinical Tests 

or Studies must be available for inspection and production to the Commission. 

Persons covered by this Section have the burden of proving that a product satisfies 

the definition of Essentially Equivalent Product. 

IV. PROHIBITION AGAINST FALSE ENDORSEMENTS

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, in connection with the manufacturing, labeling, 
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advertising, promotion, offering for sale, sale, or distribution of any goods or 

services, other than a product banned under the Section entitled Ban on Sales of 

Nobetes and Other Diabetes Products, are permanently restrained and enjoined 

from making, or assisting others in making, expressly or by implication, any 

misrepresentation concerning or relating to any endorser, including that any such 

person is an expert with respect to the endorsement message provided by that 

person.

V. DISCLOSURE OF MATERIAL CONNECTIONS

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

and employees, 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, 

in connection with the manufacturing, labeling, advertising, promotion, offering 

for sale, sale, or distribution of any goods or services, are permanently restrained 

and enjoined from making any representation, expressly or by implication, about 

any consumer or other endorser of such good or service without disclosing, Clearly 

and Conspicuously, and in Close Proximity to the representation, any unexpected 

material connection between such endorser and 1) any Defendant, or 2) any other 

individual or entity affiliated with the good or service. For the purposes of this 

provision, “unexpected material connection” means any relationship that might 

materially affect the weight or credibility of the testimonial or endorsement and 

that would not reasonably be expected by consumers.

VI. FDA-APPROVED CLAIMS

IT IS FURTHER ORDERED that nothing in this Order prohibits 

Defendants, Defendants’ officers, agents, employees, and attorneys, or all other 

persons in active concert or participation with any of them from:

A. For any Drug, making a representation that is approved in labeling for 

such Drug under any tentative final or final monograph promulgated by the 
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Food and Drug Administration, or under any new drug application approved 

by the Food and Drug Administration; and

B. For any product, making a representation that is specifically 

authorized for use in labeling for such product by regulations promulgated 

by the Food and Drug Administration pursuant to the Nutrition Labeling and 

Education Act of 1990 or permitted under Sections 303-304 of the Food and 

Drug Administration Modernization Act of 1997.

VII. PRESERVATION OF RECORDS RELATING TO COMPETENT 

AND RELIABLE HUMAN CLINICAL TESTS OR STUDIES

IT IS FURTHER ORDERED that, with regard to any human clinical test 

or study (“test”) upon which Defendants rely to substantiate any claim covered by 

this Order, Defendants shall secure and preserve all underlying or supporting data 

and documents generally accepted by experts in the field as relevant to an 

assessment of the test, including:

A. All protocols and protocol amendments, reports, articles, write-ups, or 

other accounts of the results of the test, and drafts of such documents 

reviewed by the test sponsor or any other person not employed by the 

research entity;

B. All documents referring or relating to recruitment; randomization; 

instructions, including oral instructions, to participants; and participant 

compliance;

C. Documents sufficient to identify all test participants, including any 

participants who did not complete the test, and all communications with any 

participants relating to the test; all raw data collected from participants 

enrolled in the test, including any participants who did not complete the test; 

source documents for such data; any data dictionaries; and any case report 

forms;
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D. All documents referring or relating to any statistical analysis of any 

test data, including any pretest analysis, intent-to-treat analysis, or betweengroup analysis performed on any test data; and 

E. All documents referring or relating to the sponsorship of the test, 

including all communications and contracts between any sponsor and the 

test’s researchers.

Provided, however, the preceding preservation requirement does not apply to 

a reliably reported test, unless the test was conducted, controlled, or sponsored, in 

whole or in part by: (1) any Defendant; (2) any Defendant’s officers, agents, 

representatives, or employees; (3) any other person or entity in active concert or 

participation with any Defendant; (4) any person or entity affiliated with or acting 

on behalf of any Defendant; (5) any supplier of any ingredient contained in the 

product at issue to any of the foregoing or to the product’s manufacturer; or (6) the 

supplier or manufacturer of such product.

For purposes of this Section, “reliably reported test” means a report of the 

test has been published in a peer-reviewed journal, and such published report 

provides sufficient information about the test for experts in the relevant field to 

assess the reliability of the results.

For any test conducted, controlled, or sponsored, in whole or in part, by 

Defendants, Defendants must establish and maintain reasonable procedures to 

protect the confidentiality, security, and integrity of any personal information 

collected from or about participants. These procedures must be documented in 

writing and must contain administrative, technical, and physical safeguards 

appropriate to Corporate Defendant’s size and complexity, the nature and scope of 

Defendants’ activities, and the sensitivity of the personal information collected 

from or about the participants.
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VIII. PROHIBITION AGAINST MISREPRESENTATIONS: 

NEGATIVE OPTION SALES

IT IS FURTHER ORDERED that Defendant, Defendant’s 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, in connection with promoting or offering for sale any good or service 

with a Negative Option Feature, are permanently restrained and enjoined from 

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

A. Any cost to the consumer to purchase, receive, use, or return the 

initial good or service;

B. That the consumer will not be Charged for any good or service;

C. That a good or service is offered on a “free,” “trial,” “sample,” 

“bonus,” “gift,” “no obligation,” “discounted” basis, or words of similar 

import, denoting or implying the absence of an obligation on the part of the 

recipient of the offer to affirmatively act in order to avoid Charges, including 

where a Charge will be assessed pursuant to the offer unless the consumer 

takes affirmative steps to prevent or stop such a Charge;

D. That the consumer can obtain a good or service for a processing, 

service, shipping, handling, or administrative fee with no further obligation;

E. The purpose(s) for which the consumer’s Billing Information will be 

used; 

F. The date by which the consumer will incur any obligation or be 

Charged unless the consumer takes an affirmative action on the Negative 

Option Feature;

G. That a transaction has been authorized by the consumer; 

H. Any material aspect of the nature or terms of a refund, cancellation, 

exchange, or repurchase policy for the good or service; or
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I. Any other material fact.

Compliance with this Section is separate from, and in addition to, the 

disclosures required by Sections entitled Required Dislosures Relating to Negative 

Option Features and Obtaining Express Informed Consent.

IX. REQUIRED DISCLOSURES RELATING TO

NEGATIVE OPTION FEATURES

IT IS FURTHER ORDERED that Defendant, Defendant’s 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, in connection with promoting or offering for sale any good or service 

with a Negative Option Feature, are permanently restrained and enjoined from:

A. Representing directly or indirectly, expressly or by implication, that 

any good or service that includes a Negative Option Feature is being offered 

on a free, trial, no obligation, reduced, or discounted basis, without 

disclosing Clearly and Conspicuously, and immediately adjacent to, any 

such representation:

1. The extent to which the consumer must take affirmative 

action(s) to avoid any Charges: a) for the offered good or service, b) 

of an increased amount after the trial or promotional period ends, and 

c) on a recurring basis;

2. The total cost (or range of costs) the consumer will be Charged 

and, if applicable, the frequency of such Charges unless the consumer 

timely takes steps to prevent or stop such Charges; and

3. The deadline(s) (by date or frequency) by which the consumer 

must affirmatively act in order to stop all recurring Charges.

B. Obtaining Billing Information from a consumer for any transaction 

involving a good or service that includes a Negative Option Feature, without 
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first disclosing Clearly and Conspicuously, and immediately adjacent to 

where a consumer provides Billing Information:

1. The extent to which the consumer must take affirmative 

action(s) to avoid any Charges: a) for the offered good or service, b) 

of an increased amount after the trial or promotional period ends, and 

c) on a recurring basis;

2. The total cost (or range of costs) the consumer will be Charged, 

the date the initial Charge will be submitted for payment, and, if 

applicable, the frequency of such Charges unless the consumer timely 

takes affirmative steps to prevent or stop such Charges;

3. The deadline(s) (by date or frequency) by which the consumer 

must affirmatively act in order to stop all recurring Charges;

4. The name of the seller or provider of the good or service and, if 

the name of the seller or provider will not appear on billing 

statements, the billing descriptor that will appear on such statements;

5. A description of the good or service; 

6. Any Charge or cost for which the consumer is responsible in 

connection with the cancellation of an order or the return of a good; 

and

7. The simple cancellation mechanism to stop any recurring 

Charges, as required by the Section entitled Simple Mechanism to 

Cancel Negative Option Feature.

C. Failing to send the consumer: 

1. Immediately after the consumer’s submission of an online 

order, written confirmation of the transaction by email. The email 

must Clearly and Conspicuously disclose all the information required 

by Subsection IX.B, and contain a subject line reading “Order 
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Confirmation” along with the name of the product or service, and no 

additional information; or

2. Within two (2) days after receipt of the consumer’s order by 

mail or telephone, a written confirmation of the transaction, either by 

email or first class mail. The email or letter must Clearly and 

Conspicuously disclose all the information required by Subsection 

IX.B. The subject line of the email must Clearly and Conspicuously 

state “Order Confirmation” along with the name of the product or 

service, and nothing else. The outside of the envelope must Clearly 

and Conspicuously state “Order Confirmation” along with the name 

of the product or service, and no additional information other than the 

consumer’s address, the Defendant’s return address, and postage.

X. OBTAINING EXPRESS INFORMED CONSENT

IT IS FURTHER ORDERED that Defendant, Defendant’s 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, in connection with promoting or offering for sale any good or service 

with a Negative Option Feature, are permanently restrained and enjoined from 

using, or assisting others in using, Billing Information to obtain payment from a 

consumer, unless Defendant first obtains the express informed consent of the 

consumer to do so. To obtain express informed consent, Defendants must:

A. For all written offers (including over the Internet or other web-based 

applications or services), obtain consent through a check box, signature, or

other substantially similar method, which the consumer must affirmatively 

select or sign to accept the Negative Option Feature, and no other portion of 

the offer. Defendant shall disclose Clearly and Conspicuously, and 

immediately adjacent to such check box, signature, or substantially similar 
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method of affirmative consent, only the following, with no additional 

information:

1. The extent to which the consumer must take affirmative 

action(s) to avoid any Charges: a) for the offered good or service, b) 

of an increased amount after the trial or promotional period ends, and 

c) on a recurring basis;

2. The total cost (or range of costs) the consumer will be Charged 

and, if applicable, the frequency of such Charges unless the consumer 

timely takes affirmative steps to prevent or stop such Charges; and

3. The deadline(s) (by date or frequency) by which the consumer 

must affirmatively act in order to stop all recurring Charges.

B. For all oral offers, prior to obtaining any Billing Information from the 

consumer:

1. Clearly and Conspicuously disclose the information contained 

in Subsection IX.B.; and

2. Obtain affirmative unambiguous express oral confirmation that 

the consumer: a) consents to being Charged for any good or service, 

including providing, at a minimum, the last four (4) digits of the 

consumer’s account number to be Charged, b) understands that the 

transaction includes a Negative Option Feature, and c) understands the 

specific affirmative steps the consumer must take to prevent or stop 

further Charges.

Provided further that, for transactions conducted through Telemarketing, 

Defendant shall maintain for three (3) years from the date of each 

transaction an unedited voice recording of the entire transaction, including 

the prescribed statements set out in Subsection IX.B. Each recording must 

be retrievable by date and by the consumer’s name, telephone number, or 
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Billing Information, and must be provided upon request to the consumer, the 

consumer’s bank, or any law enforcement entity.

XI. SIMPLE MECHANISM TO CANCEL 

NEGATIVE OPTION FEATURE

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, agents, 

employees, 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, in connection with promoting or offering for sale any good or service 

with a Negative Option Feature, are permanently restrained and enjoined from 

failing to provide a simple mechanism for the consumer to: (1) avoid being 

Charged, or Charged an increased amount, for the good or service and (2) 

immediately stop any recurring Charges. Such mechanism must not be difficult, 

costly, confusing, or time consuming, and must be at least as simple as the 

mechanism the consumer used to initiate the Charge(s). In addition:

A. For consumers who entered into the agreement to purchase a good or 

service including a Negative Option Feature over the Internet or through 

other web-based applications or services, Defendant must provide a 

mechanism, accessible over the Internet or through such other web-based 

application or service that consumers can easily use to cancel the product or 

service and to immediately stop all further Charges.

B. For consumers who entered into the agreement to purchase a good or 

service including a Negative Option Feature through an oral offer and 

acceptance, Defendants must maintain a telephone number and a postal 

address that consumers can easily use to cancel the product or service and to 

immediately stop all further Charges. Defendants must assure that all calls 

to this telephone number shall be answered during normal business hours 

and that mail to the postal address is retrieved regularly.
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XII. MONETARY JUDGMENT 

IT IS FURTHER ORDERED that:

A. Judgment in the amount of $182,000 is entered in favor of the 

Commission against Individual Defendants and Corporate Defendant, jointly 

and severally, as equitable monetary relief.

B. Defendants are ordered to pay to the Commission $182,000 which, as 

Defendants stipulate, their undersigned counsel holds in escrow for no 

purpose other than payment to the Commission. Such payment must be 

made within 7 days of entry of this Order by electronic fund transfer in 

accordance with instructions previously provided by a representative of the 

Commission. 

XIII. ADDITIONAL MONETARY PROVISIONS

IT IS FURTHER ORDERED that:

A. Defendants relinquish dominion and all legal and equitable right, title, 

and interest in all assets transferred pursuant to this Order and may not seek 

the return of any assets.

B. The facts alleged in the Complaint will be taken as true, without 

further proof, in any subsequent civil litigation by or on behalf of the 

Commission, including in a proceeding to enforce its rights to any payment 

or monetary judgment pursuant to this Order, such as a nondischargeability 

complaint in any bankruptcy case.

C. The facts alleged in the Complaint establish all elements necessary to 

sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the 

Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have 

collateral estoppel effect for such purposes.

D. All money paid to the Commission pursuant to this Order may be 

deposited into a fund administered by the Commission or its designee to be 
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used for equitable relief, including consumer redress and any attendant 

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

the Commission decides that direct redress to consumers is wholly or 

partially impracticable or money remains after redress is completed, the 

Commission may apply any remaining money for such other equitable relief 

(including consumer information remedies) as it determines to be reasonably 

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

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

disgorgement. Defendants have no right to challenge any actions the 

Commission or its representatives may take pursuant to this Subsection.

XIV. CUSTOMER INFORMATION

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, 

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

any of them, who receive actual notice of this Order, are permanently restrained 

and enjoined from directly or indirectly: 

A. Failing to provide sufficient customer information to enable the 

Commission to efficiently administer consumer redress. If a representative 

of the Commission requests in writing any information related to redress, 

Defendants must provide it, in the form prescribed by the Commission, 

within 14 days. 

B. Disclosing, using, or benefitting from customer information, 

including the name, address, telephone number, email address, social 

security number, other identifying information, or any data that enables 

access to a customer’s account (including a credit card, bank account, or 

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

Order in connection with the sale of Nobetes; and

C. Failing to destroy such customer information in all forms in their 
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possession, custody, or control within 30 days after receipt of written 

direction to do so from a representative of the Commission. 

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

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

regulation, or court order. 

XV. ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of 

receipt of this Order:

A. Each Defendant, within 7 days of entry of this Order, must submit to 

the Commission an acknowledgment of receipt of this Order sworn under 

penalty of perjury. 

B. For 5 years after entry of this Order, each Individual Defendant for 

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

Defendants, is the majority owner or controls directly or indirectly, and the 

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

officers, directors, and LLC managers and members; (2) all employees

having managerial responsibilities for conduct related to the subject matter

of the Order or who engage in Telemarketing, and all agents and 

representatives who participate in conduct related to the subject matter of the 

Order; and (3) any business entity resulting from any change in structure as 

set forth in the Section titled Compliance Reporting. Delivery must occur 

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

delivery must occur before they assume their responsibilities. 

C. From each individual or entity to which a Defendant delivered a copy 

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

acknowledgment of receipt of this Order.
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XVI. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Defendants make timely submissions to 

the Commission:

A. Sixty days after entry of this Order, each Defendant must submit a 

compliance report, sworn under penalty of perjury:

1. Each Defendant must: (a) identify the primary physical, postal, 

and email address and telephone number, as designated points of 

contact, which representatives of the Commission may use to 

communicate with Defendant; (b) identify all of that Defendant’s 

businesses by all of their names, telephone numbers, and physical, 

postal, email, and Internet addresses; (c) describe the activities of each 

business, including the goods and services offered, the means of 

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

Defendant (which Individual Defendants must describe if they know 

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

whether and how that Defendant is in compliance with each Section 

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

obtained pursuant to this Order, unless previously submitted to the 

Commission.

2. Additionally, each Individual Defendant must: (a) identify all 

telephone numbers and all physical, postal, email and Internet 

addresses, including all residences; (b) identify all business activities, 

including any business for which such Defendant performs services 

whether as an employee or otherwise and any entity in which such 

Defendant has any ownership interest; and (c) describe in detail such 

Defendant’s involvement in each such business, including title, role, 

responsibilities, participation, authority, control, and any ownership.
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B. For 10 years after entry of this Order, each Defendant must submit a 

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

change in the following: 

1. Each Defendant must report any change in: (a) any designated 

point of contact; or (b) the structure of any Corporate Defendant or 

any entity that Defendant has any ownership interest in or controls 

directly or indirectly that may affect compliance obligations arising 

under this Order, including: creation, merger, sale, or dissolution of 

the entity or any subsidiary, parent, or affiliate that engages in any 

acts or practices subject to this Order.

2. Additionally, each Individual Defendant must report any 

change in: (a) name, including aliases or fictitious name, or residence 

address; or (b) title or role in any business activity, including any 

business for which such Defendant performs services whether as an 

employee or otherwise and any entity in which such Defendant has 

any ownership interest, and identify the name, physical address, and 

any Internet address of the business or entity.

C. Each Defendant must submit to the Commission notice of the filing of 

any bankruptcy petition, insolvency proceeding, or similar proceeding by or 

against such Defendant within 14 days of its filing.

D. Any submission to the Commission required by this Order to be 

sworn under penalty of perjury must be true and accurate and comply with 

28 U.S.C. § 1746, such as by concluding: “I declare under penalty of 

perjury under the laws of the United States of America that the foregoing is 

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

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

E. Unless otherwise directed by a Commission representative in writing, 
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all submissions to the Commission pursuant to this Order must be emailed to 

DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) 

to: Associate Director for Enforcement, Bureau of Consumer Protection, 

Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, 

DC 20580. The subject line must begin: FTC v. Nobetes Corporation. 

XVII. RECORDKEEPING

IT IS FURTHER ORDERED that Defendants must create certain records 

for 10 years after entry of the Order, and retain each such record for 5 years. 

Specifically, Corporate Defendant if a going concern, in connection with the sale 

of any goods or services, and each Individual Defendant for any business that such 

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

owner or controls directly or indirectly, must create and retain the following 

records:

A. Accounting records showing the revenues from all goods or services 

sold; 

B. Personnel records showing, for each person providing services, 

whether as an employee or otherwise, that person’s: name; addresses; 

telephone numbers; job title or position; dates of service; and (if applicable) 

the reason for termination;

C. Records of all consumer complaints concerning the subject matter of 

the order and all refund requests, whether received directly or indirectly, 

such as through a third party, and any response; 

D. All records necessary to demonstrate full compliance with each 

provision of this Order, including all submissions to the Commission; and

E. A copy of each unique advertisement or other marketing material. 

XVIII. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring 
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Defendants’ compliance with this Order: 

A. Within 14 days of receipt of a written request from a representative of 

the Commission, each Defendant must: submit additional compliance 

reports or other requested information, which must be sworn under penalty 

of perjury; appear for depositions; and produce documents for inspection 

and copying. The Commission is also authorized to obtain discovery, 

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

Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 

31, 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, the Commission is authorized to 

communicate directly with each Defendant. Defendant must permit 

representatives of the Commission to interview any employee or other 

person affiliated with any Defendant who has agreed to such an interview. 

The person interviewed may have counsel present.

C. The Commission may use all other lawful means, including posing, 

through its representatives as consumers, suppliers, or other individuals or 

entities, to Defendants or any individual or entity affiliated with Defendants, 

without the necessity of identification or prior notice. Nothing in this Order 

limits the Commission’s lawful use of compulsory process, pursuant to 

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

D. Upon written request from a representative of the Commission, any 

consumer reporting agency must furnish consumer reports concerning 

Individual Defendants, pursuant to Section 604(1) of the Fair Credit 

Reporting Act, 15 U.S.C. §1681b(a)(1). 
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XIX. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this 

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

SO ORDERED this __ day of ______ , 201_. 

UNITED STATES DISTRICT JUDGE 

SO STIPULATED AND AGREED: 

FOR PLAINTIFF: 

------------- Date: ----

JANET M. EV ANS, 

ATTORNEY 

600 Pennsylvania Ave., N.W. 

Mail Drop CC-10528 

Washington, D.C. 20580 

Telephone (202) 326-2125 

Facsimile: (202) 326-3259 

Email: jevans@ftc.gov 

F

Date: rlJPr 

Burton 

Mr-~ 

OR DEFENDANTS: 

C. Jaco~ n 

424 S Beverly Dr., 

Beverly Hills, CA 90212 

Telephone: (310) 553-8533 

Fax Number: (310) 553-1145 

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Email: bcjlaw@aol.com 

Counsel for Nobetes Corporation a/k/a 

Side Effects Solution Corporation, 

Marvin Silver, and Jeffrey Fleitman 

_tJ 

Marvin 

_·rn_~_____,--- ~ · Date: 7-ll/- J-b(~ 

Silver, Individually and as 

an Officer and Director of 

Nobetes Corporation a/k/a Side Effects 

Solution Corporation 

-=----==---~~:-:---:-:--::-:----:-- Date: 9 / ft( { & 'D { 

it an, Individually and as 

~ an Officer and Director of 

Nobetes Corporation a/k/a Side Effects 

Solution Corporation 

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