STIPULATED FINAL ORDER FOR PERMANENT INJUNCTION - 1 

Case No. CV-13-08843-JFW (PLAx) 

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JONATHAN E. NUECHTERLEIN 

General Counsel 

CHARLES A. HARWOOD 

Regional Director 

LAURA M. SOLIS (WA Bar No. 36005) 

Email: lsolis@ftc.gov 

JULIE K. MAYER (WA Bar No. 34638) 

Email: jmayer@ftc.gov SOPHIE H. CALDERÓN (CA Bar No. 78135) 

Email: scalderon@ftc.gov 

Federal Trade Commission 

915 Second Avenue, Suite 2896 

Seattle, WA 98174 

Telephone: (206) 220-6350 / Facsimile: (206) 220-6366 

RAYMOND E. McKOWN (CA Bar No. 150975) Email: rmckown@ftc.gov 

Federal Trade Commission 

10877 Wilshire Blvd., Suite 700 

Los Angeles, CA 90024 

Telephone: (310) 824-4325 / Facsimile: (310) 824-4380 

Attorneys for Plaintiff 

Federal Trade Commission 

STEPHEN G. LARSON (CA Bar 145225) 

MICHAEL M. KOWSARI (CA Bar 186899) 

ARENT FOX LLP 

555 West Fifth Street, 48th Floor 

Los Angeles, CA 90013-1065 

Telephone: (213) 629-7400 / Facsimile: (213) 629-7401 Email: stephen.larson@arentfox.com michael.kowsari@arentfox.com 

Attorneys for Defendants CREAM GROUP, INC., SAMI CHARCHIAN, and Relief Defendants 

SPRING ACRES, LLC, and BAHAREH RAMIN 

UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

FEDERAL TRADE COMMISSION, 

 Plaintiff, 

 v. 

CREAM GROUP, INC., also d/b/a 

Terra Nova, TNT, Inc., and CRM, Inc., 

a California Corporation, et al., 

 Defendants. 

Case No. CV 13-8843 JFW (PLAx)

FINAL ORDER FOR PERMANENT 

INJUNCTION AND MONETARY 

JUDGMENT AGAINST 

DEFENDANTS CREAM GROUP, 

INC., AND SAMI CHARCHIAN 

AND FOR MONETARY RELIEF 

AS TO RELIEF DEFENDANTS 

SPRING ACRES, LLC, AND 

BAHAREH RAMIN 

JS-6

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

its Complaint for Permanent Injunction and Other Equitable Relief, for a 

permanent injunction and other equitable relief in this matter, pursuant to Sections 

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

53(b) and 57b, and the Telemarketing and Consumer Fraud and Abuse Prevention 

Act (“Telemarketing Act”), 15 U.S.C. §§ 6101-6108. On December 3, 2013, the 

Court entered a temporary restraining order against Defendants (Doc. 20). The 

Court entered a Stipulated Preliminary Injunction on January 9, 2014 (Doc. 32). 

On April 2, 2014, the FTC amended its Complaint (“First Amended Complaint”) 

(Doc. 58), adding claims against Relief Defendants Spring Acres, LLC, and 

Bahareh Ramin. Through counsel, the Commission and Defendants Cream 

Group, Inc., and Sami Charchian (“Stipulating Defendants”) and Relief 

Defendants Spring Acres, LLC, and Bahareh Ramin (“Relief Defendants”) 

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

Monetary Judgment Against Defendants Cream Group, Inc., and Sami Charchian 

and for Monetary Relief as to Relief Defendants Spring Acres, LLC, and Bahareh 

Ramin (“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 First Amended Complaint charges that Defendants participated 

in deceptive acts or practices in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a), and the FTC’s Telemarketing Sales Rule (“TSR”), 16 C.F.R. 

Part 310. The First Amended Complaint seeks both permanent injunctive relief 

and equitable monetary relief for Defendants’ deceptive acts or practices as 

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alleged therein, and disgorgement from Relief Defendants of all funds and assets 

received by them that are traceable to Defendants’ unlawful acts or practices. 

3. Stipulating Defendants and Relief Defendants neither admit nor deny 

any of the allegations in the First Amended Complaint, except as specifically 

stated in this Order. Only for purposes of this action, Stipulating Defendants and 

Relief Defendants admit the facts necessary to establish jurisdiction. 

4. Stipulating Defendants and Relief 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. The 

Commission, Stipulating Defendants, and Relief Defendants shall each bear their 

own costs and attorney fees incurred in this action. 

5. Stipulating Defendants, Relief Defendants, and the Commission 

waive all rights to appeal or otherwise challenge or contest the validity of this 

Order. 

6. Entry of this Order is in the public interest. 

DEFINITIONS 

 For purposes of this Order, the following definitions apply: 

A. “Corporate Defendant” means Cream Group, Inc., also d/b/a Terra 

Nova, TNT, Inc., and CRM, Inc., and its successors, assigns, affiliates, and 

subsidiaries. 

B. “Defendants” means the Individual Defendants and the Corporate 

Defendant, individually, collectively, or in any combination. 

C. “Electronic Data Host” means any person or entity that stores, 

hosts, or otherwise maintains electronically-stored information. 

D. “Financial Institution” means any bank, savings and loan 

institution, credit union, or any financial depository of any kind, including, but 

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not limited to, any brokerage house, trustee, broker-dealer, escrow agent, title 

company, commodity trading company, or precious metal dealer. 

E. “Individual Defendants” means Sami Charchian, also d/b/a Oro 

Marketing, Inc., Modo, Modo Industry, Oro Max, Casa de Oro, Casa de Moda, 

Oro Mundo, and Nation/Modo; and John Charchian, a/k/a Djahangir Charchian 

and Jahangir John Charchian, also d/b/a Oro Marketing, Inc., Modo, Modo 

Industry, Oro Max, Casa de Oro, Casa de Moda, Oro Mundo, and Nation/Modo, 

by whatever other names each may be known. 

F. “Liquidator Receiver” means the liquidator receiver appointed in 

this Order. The term “Liquidator Receiver” also includes any deputy receivers as 

may be named by the Liquidator Receiver. 

G. “Receiver” means the permanent receiver appointed in the Stipulated 

Preliminary Injunction (Doc. 32). The term “Receiver” also includes any deputy 

receivers as may be named by the Receiver. 

H. “Receivership Defendant” means Cream Group, Inc., also d/b/a 

Terra Nova, TNT, Inc., and CRM, Inc., and its successors, assigns, affiliates, and 

subsidiaries, including, but not limited to, Applied Design Services, Inc., and CA 

Mart, and any related d/b/a used by any of the Individual Defendants, including, 

but not limited to, Oro Marketing, Inc., Modo, Modo Industry, Oro Max, Casa de 

Oro, Casa de Moda, Oro Mundo, and Nation/Modo, and each of them by 

whatever names each might be known. 

I. “Relief Defendants” means Bahareh Ramin and Spring Acres, LLC, 

and its successors, assigns, subsidiaries, affiliates. 

J. “Stipulating Defendants” means Corporate Defendant and 

Individual Defendant Sami Charchian, also d/b/a Oro Marketing, Inc., Modo, 

Modo Industry, Oro Max, Casa de Oro, Casa de Moda, Oro Mundo, and 

Nation/Modo. 

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K. “Telemarketing” means a plan, program, or campaign which is 

conducted to induce the purchase of goods or services or a charitable contribution, 

by use of one or more telephones and which involves more than one interstate 

telephone call. The term does not include the solicitation of sales through the 

mailing of a catalog which: contains a written description or illustration of the 

goods or services offered for sale; includes the business address of the seller; 

includes multiple pages of written material or illustrations; and has been issued 

not less frequently than once a year, when the person making the solicitation does 

not solicit customers by telephone but only receives calls initiated by customers in 

response to the catalog and during those calls takes orders only without further 

solicitation. For purposes of the previous sentence, the term “further solicitation” 

does not include providing the customer with information about, or attempting to 

sell, any other item included in the same catalog which prompted the customer’s 

call or in a substantially similar catalog. 

ORDER 

I. PERMANENT BAN ON TELEMARKETING 

IT IS ORDERED that Stipulating Defendants are permanently restrained 

and enjoined from participating in Telemarketing, or assisting others engaged in 

Telemarketing, whether directly or through an intermediary. 

II. PROHIBITION AGAINST MISREPRESENTATIONS 

IT IS FURTHER ORDERED that Stipulating Defendants, Stipulating 

Defendants’ officers, agents, servants, 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 

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

good or service, are permanently restrained and enjoined from misrepresenting, or 

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assisting others in misrepresenting, expressly or by implication, any material fact, 

including, but not limited to, the following: 

A. That consumers will receive: 

1. Well-known or brand-name merchandise; or 

2. Merchandise at low or wholesale prices; 

B. That consumers who pay for or accept additional shipments of 

merchandise will receive: 

1. The well-known or brand-name goods they ordered; or 

2. A refund of the amount they paid; 

C. That any adverse action will be taken against any consumer, 

including, but not limited to, legal actions, fines, damage to consumers’ credit 

history, garnishment of income and bank accounts, arrest, or reporting consumers 

to immigration authorities; 

D. Any material aspect of the performance, efficacy, nature, or central 

characteristics of any good or service, including, but not limited to, the quality or 

manufacturer of merchandise; 

E. Any material aspect of the nature or terms of any refund, 

cancellation, exchange, or repurchase policy, including, but not limited to, that 

customers will be granted refunds if they pay for additional goods; 

F. The total costs to purchase, receive, or use, or the quantity of, goods 

or services; and 

G. Any material restriction, limitation, or condition on purchasing, 

receiving, or using a good or service. 

III. MONETARY JUDGMENT 

IT IS FURTHER ORDERED that: 

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A. Judgment in the amount of Five Million, One Hundred Seventy 

Thousand, Nine Hundred Fifty Three Dollars ($5,170,953.00.) is entered in favor 

of the Commission against Stipulating Defendants, jointly and severally. 

B. Stipulating Defendants and Relief Defendants are ordered to pay to 

the Commission as follows: 

1. Within twenty four (24) months of entry of this Order, 

Individual Defendant Sami Charchian must secure and pay to the Commission the 

amount of Six Hundred Fifty Thousand Dollars ($650,000.00). Payment shall be 

made to the Commission by electronic fund transfer in accordance with 

instructions provided by a representative of the Commission. 

2. Within seven (7) days of entry of this Order, Individual 

Defendant Sami Charchian and Relief Defendants shall take the following actions 

with respect to the following real properties (collectively the “Real Property”): (1) 

5037 Opal Ave., Palmdale, California 93552; (2) 2559 W. Paxton Ave., Palmdale, 

California 93551; (3) 2537 Wicopy Court, Palmdale, California 93551; (4) 5776 

Expedition Way, Palmdale, California 93552; (5) 3709 Saddleback Drive, 

Palmdale, California 93552; and (6) 3222 Rollingridge Ave., Palmdale, California 

93550; including, but not limited to, the land, buildings, and any and all fixtures, 

appurtenances, and improvements, except anything owned by a tenant or third 

party and not owned by Individual Defendant Sami Charchian or Relief 

Defendants: 

a. Transfer possession, custody, and control of the Real Property 

to the Liquidator Receiver. The Liquidator Receiver shall be permitted to list the 

Real Property for sale upon entry of this Order; 

b. Authorize the sale of the Real Property to be conducted in the 

manner described in this Subsection III.B. All net proceeds of that sale, after all 

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necessary expenses of the Liquidator Receiver are paid pursuant to Section V. of 

this Order, shall be paid to the Commission; 

c. Represent and warrant that they are the sole owners of the 

Real Property and that they have the authority to sell the Real Property; 

d. Represent and acknowledge that the properties identified in 

this Subsection III.B. are currently unencumbered by any other lien, mortgage, 

deed of trust, assignment, pledge, security interest, or other interest except as 

disclosed to the Commission in the financial representations referenced in 

Subsection III.D.; 

e. Cooperate fully with the Liquidator Receiver and take such 

other steps as the Liquidator Receiver may require in connection with the listing, 

marketing, and sale of the Real Property; 

f. Within five (5) days after entry of this Order take all steps 

requested by the Liquidator Receiver to assist and cooperate with the Liquidator 

Receiver in the sale of the Real Property, including the provision of all 

documents, contracts, and leases related to the Real Property, and any utility bills 

and account information, including any passwords necessary to change such 

accounts; 

g. Sign any documents necessary for the sale of the Real 

Property, including, but not limited to, any powers of attorney that the Liquidator 

Receiver may request them to sign in connection with the sale of the Real 

Property and any documents necessary for the transfer of the Real Property to 

new buyers, as well as any documents necessary to transfer any accounts, mail, or 

notices related to the Real Property to the Liquidator Receiver; 

h. Cooperate fully and not interfere with the Liquidator 

Receiver’s efforts to enter onto, market, and sell the Real Property, including, but 

not limited to, the Liquidator Receiver’s efforts to gain access to and show the 

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Real Property to prospective purchasers or brokers or to evaluate or cause its 

agents, representatives, or contractors to maintain, repair, restore, and evaluate the 

condition of the property from the entry of this Order and thereafter. Upon 

request of the Liquidator Receiver, Defendant Sami Charchian and Relief 

Defendants shall provide a set of all keys and/or codes used for the Real Property 

to the Liquidator Receiver and/or its agent(s); 

i. Until possession, custody, and control of the Real Property is 

transferred to the Liquidator Receiver, maintain property and liability insurance 

on the Real Property for at least its replacement value; remain current on all 

amounts due and payable on the Real Property, including, but not limited to, 

taxes, utilities, reasonable and necessary maintenance, homeowner’s assessments, 

sewer and/or water use charges and similar fees; and promptly provide the 

Commission and the Liquidator Receiver with written paid receipts to the 

satisfaction of Commission representatives and the Liquidator Receiver upon the 

transfer of the Real Property. In the event that the Real Property suffers any loss 

or damage covered by any applicable insurance policy prior to the transfer of the 

Real Property to the Liquidator Receiver, Individual Defendant Sami Charchian 

and Relief Defendant Bahareh Ramin shall make such claims as are permitted by 

the insurance policy and shall assign or remit any insurance payment they receive 

as a result of such loss or damage to the Commission. Upon transfer of 

possession, custody, and control of the Real Property to the Liquidator Receiver, 

the Liquidator Receiver shall maintain property and liability insurance and use its 

best efforts to include Individual Defendant Sami Charchian and Relief 

Defendants as additional insured parties until such time as they no longer own and 

maintain title to the Real Property. Nothing in this Order requires Individual 

Defendant Sami Charchian or Relief Defendants to pay any amount relating to or 

concerning the Real Property, including, but not limited to, any taxes, insurance, 

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homeowner’s assessments, maintenance, and similar fees, arising or incurred after 

Individual Defendant Sami Charchian and Relief Defendants transfer possession, 

custody, and control of the Real Property to the Liquidator Receiver; 

j. Take no action to diminish or encumber the value of the Real 

Property; 

k. Upon entry of this Order, notify all tenants in the Real 

Property as follows: 

(i) that a Liquidator Receiver has been appointed to sell the 

Real Property and is in charge of the Real Property; 

(ii) that all rents shall be paid to the Liquidator Receiver; 

(iii) that all requests concerning the Real Property should be 

made to the Liquidator Receiver; and 

(iv) that they are required to cooperate with the Liquidator 

Receiver; 

l. Upon transfer of possession, custody, and control of the Real 

Property to the Liquidator Receiver, which transfer shall occur within seven (7) 

days of entry of this Order, Individual Defendant Sami Charchian and Relief 

Defendants shall no longer receive any rent, or anything of value, for the Real 

Property, and shall immediately turn over any rents received since entry of this 

Order to the Liquidator Receiver; 

m. Within seven (7) days of entry of this Order, transfer to the 

Liquidator Receiver any security deposits or other payments that any tenants of 

the Real Property have paid to or deposited with Individial Defendant Sami 

Charchian and Relief Defendants in connection with any leases or contracts with 

respect to the Real Property; 

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n. Within three (3) days after entry of this Order, provide a list to 

the Liquidator Receiver setting forth the names of all tenants in the Real Property 

and their contact information, including any phone numbers and e-mail addresses; 

o. Upon sale of the Real Property, forever waive, release, 

discharge, and disclaim all right, title, and interest, including any homestead, in 

the Real Property; 

p. All ad valorem taxes, any transfer fees, recording fees, other 

fees, advertising, and any commissions associated with or resulting from the sale 

of the Real Property shall be paid from the proceeds of the sale at the time the 

Real Property is sold; and 

q. In no way profit from the sale of the Real Property, including 

by sharing in any sales commission or fee, or by receiving anything of value in 

kind. 

3. Within seven (7) days of the date of entry of this Order, Individual 

Defendant Sami Charchian and Relief Defendant Bahareh Ramin shall promptly 

take all steps necessary to sell the following vehicles: (i) a 2009 Mercedes-Benz 

AMG and (ii) a 2008 Murc 640 Lamborghini (collectively the “Vehicles”) for fair 

market value to a third-party buyer, and pay to the Commission the proceeds of 

the sale, after paying off any existing loan or other monetary obligation owed on 

the Vehicles, subject to the following: 

a. Individual Defendant Sami Charchian and Relief Defendant 

Bahareh Ramin represent that no encumbrances have been added to the vehicles 

since the Court’s entry of the Temporary Restraining Order on December 3, 2013, 

and that they will not add any such encumbrances after signing this Order, except 

as needed to secure their performance under this Subsection. 

b. Individual Defendant Sami Charchian and Relief Defendant 

Bahareh Ramin shall keep the Vehicles in conditions suitable for showing to 

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prospective purchasers; sign the contracts for sale of the Vehicles; sign all 

documents necessary or appropriate for the transfer of the Vehicles to new buyers, 

and comply with any reasonable requests from Commission representatives 

related to those sales; 

c. Individual Defendant Sami Charchian and Relief Defendant 

Bahareh Ramin shall immediately transfer, by electronic fund transfer in 

accordance with instructions provided by a representative of the Commission, the 

proceeds from the sale of each of the Vehicles to the Commission within three (3) 

days from the date of sale; 

d. If, after four (4) months from the date of entry of this Order, 

any of the Vehicles have not been sold, Individual Defendant Sami Charchian 

Relief Defendant Bahareh Ramin shall immediately retain an auction company, 

and direct such auction company to sell each property at a public auction. Any 

and all costs associated with the auction of the Vehicles shall be deducted from 

the proceeds of such sales. All net proceeds shall be paid to the Commission by 

electronic fund transfer in accordance with instructions provided by a 

representative of the Commission within three (3) days of the date of auction. 

Any sheriff, title company, or other person involved in such sale or auction may 

rely on this Order as authority to deliver the net proceeds to the Commission; 

e. As long as any of the Vehicles are owned by Individual 

Defendant Sami Charchian and Relief Defendant Bahareh Ramin, they shall be 

maintained in good working order and in the same condition as of the date of the 

entry of the Temporary Restraining Order on December 3, 2013, and Individual 

Defendant Sami Charchian and Relief Defendant Bahareh Ramin shall take no 

action to diminish or encumber their value; 

f. Until Individual Defendant Sami Charchian and Relief 

Defendant Bahareh Ramin transfer the proceeds of the sale of the Vehicles to the 

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Commission, they shall remain current on all amounts due and payable on the 

Vehicles, including, but not limited to, tax, insurance, reasonable and necessary 

maintenance, registration, and similar fees. Individual Defendant Sami Charchian 

and Relief Defendant Bahareh Ramin shall cause existing insurance coverage for 

the Vehicles to remain in force until the transfer of ownership. In the event that 

the Vehicles suffer any loss or damage covered by such insurance policy, 

Individual Defendant Sami Charchian and Relief Defendant Bahareh Ramin shall 

make such claims as are permitted by the insurance policy and shall assign or 

remit any insurance payment they receive as a result of such loss or damage to the 

Commission; 

g. Individual Defendant Sami Charchian and Relief Defendant 

Bahareh Ramin shall in no way profit from the sale of the Vehicles, including by 

sharing in any sales commission or fee, or by receiving anything of value in kind; 

and 

h. Upon sale of the Vehicles, Individual Defendant Sami 

Charchian and Relief Defendant Bahareh Ramin forever waive, release, 

discharge, and disclaim all right, title, and interest in the Vehicles. 

C. Stipulating Defendants grant to the Commission all rights and claims 

they have to any assets currently in the possession, custody, or control of the 

Receiver, including, but not limited to, all funds transferred to the Receiver from 

the following accounts: 

a. JP Morgan Chase account ending 7023, held in 

the name of Applied Design Services, Inc.; 

b. JP Morgan Chase account ending 7487, held in 

the name of Cream Group, Inc.; 

c. US Bank account ending 7268, held in the name 

of Cream Group, Inc.; 

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d. Bank of America account ending 2431, held in 

the name of Oro Marketing, Inc.; and 

e. Bank of America account ending 3598, held in 

the name of Oro Marketing, Inc. 

D. Upon completion of all obligations under Subsections III.B. through 

III.C., above, including all asset transfers and payments, the remainder of the 

judgment set forth in Subsection III.A. is suspended, subject to the following: 

1. The Commission’s agreement to the suspension of part of the 

judgment is expressly premised upon the truthfulness, accuracy, and completeness 

of Stipulating Defendants’ sworn financial statements and related documents 

(collectively, “financial representations”) submitted to the Commission, namely: 

a. the sworn Corporate Financial Statement of Cream 

Group, Inc., signed on October 1, 2014, including all 

attachments and enclosures, submitted by counsel for 

Corporate Defendant Cream Group, Inc., via Secure File 

Transfer on October 1, 2014, at 5:18 pm; 

b. the sworn Individual Financial Statement of Individual 

Defendant Sami Charchian, signed on December 30, 

2013, including all attachments and enclosures, 

submitted by counsel for Individual Defendant Sami 

Charchian via email on December 30, 2013, at 3:30 pm, 

and as amended and signed on October 1, 2014, 

including all attachments and enclosures, submitted by 

counsel for Individual Defendant Sami Charchian via 

Secure File Transfer on October 1, 2014, at 5:18 pm, 

and further amended via email on October 2, 2014 at 

2:58 pm; 

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c. all documents and information submitted by counsel for 

Individual Defendant Sami Charchian via email on 

September 15, 2014, at 9:26 am, including an appraisal 

for Individual Defendant Sami Charchian’s residence in 

Los Angeles, California; 

d. all documents and information submitted by counsel for 

Individual Defendant Sami Charchian via email on 

August 27, 2014, at 2:49 pm, including photographs of 

Individual Defendant Sami Charchian’s residence in 

Los Angeles, California; 

e. all documents and information submitted by counsel for 

Individual Defendant Sami Charchian via email on 

January 23, 2014, at 10:26 am, including information 

concerning the payment of property taxes; 

f. all documents and information submitted by counsel for 

Individual Defendant Sami Charchian via email on 

January 22, 2014, at 4:52 pm, including information 

concerning the payment of homeowners’ insurance and 

property taxes; and 

g. Stipulating Defendants’ representations that none of the 

properties described in Subsections III.B., above, are 

currently encumbered by any other lien, mortgage, deed 

of trust, assignment, pledge, security interest, or other 

interest, except as disclosed in the financial 

representations identified above. 

2. The suspension of the judgment will be lifted as to Stipulating 

Defendants if, upon motion by the Commission, the Court finds that Stipulating 

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Defendants failed to disclose any material asset, materially misstated the value of 

any asset, or made any other material misstatement or omission in the financial 

representations identified above; and 

3. If the suspension of the judgment is lifted, the judgment 

becomes immediately due as to Stipulating Defendants in the amount specified in 

Subsection III.A., above, less any payment previously made pursuant to this 

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

IV. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Stipulating Defendants and Relief 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 First Amended 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 First Amended 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. Stipulating Defendants acknowledge that their Taxpayer 

Identification Numbers (Social Security Numbers or Employer Identification 

Numbers), which Stipulating Defendants previously submitted to the 

Commission, may be used for collecting and reporting on any delinquent amount 

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

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E. 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 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 First Amended Complaint. Any money not used for such equitable 

relief is to be deposited to the U.S. Treasury as disgorgement. Stipulating 

Defendants and Relief Defendants have no right to challenge any actions the 

Commission or its representatives may take pursuant to this Subsection. 

F. The Preliminary Injunction’s freeze of the Stipulating Defendants’ 

and Relief Defendants’ assets shall remain in effect until the assets have been 

transferred in accordance with Subsections III.B. – C. Provided, however, that 

the asset freeze may be lifted as to the Stipulating Defendants and Relief 

Defendants to the extent necessary to comply with the transfer and turnover 

requirements of Subsections III.B. – C. Upon compliance with the transfer and 

turnover requirements of Subsections III.B. – C., the freeze on the assets of 

Individual Defendant Sami Charchian and Relief Defendants pursuant to the 

Stipulated Preliminary Injunction entered in this action is lifted. 

V. APPOINTMENT AND DUTIES OF LIQUIDATOR RECEIVER 

IT IS FURTHER ORDERED that the Permanent Receiver in this matter, is 

appointed as Liquidator Receiver, with all the rights and powers of an equity 

receiver, over the Real Property listed in Subsection III.B.2. 

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A. As soon as reasonably possible, the Liquidator Receiver shall, at 

reasonable cost and in a commercially reasonable fashion, liquidate, without 

further approval from the Court, the Real Property for fair market value. 

B. Upon Individual Defendant Sami Charchian’s and Relief 

Defendants’ transfer of possession, the Liquidator Receiver shall assume 

responsibility for management and maintenance of the Real Property, including, 

but not limited to, making disbursements for operating expenses as may be 

appropriate, undertaking repairs, procuring appropriate insurance or modifying 

existing insurance, making payment for all amounts due and payable on the Real 

Property, including, but not limited to, taxes, insurance, homeowner’s 

assessments, reasonable and necessary maintenance, and similar fees, and making 

payments for and taking any other actions necessary to efficiently manage the 

Real Property and to maintain their value. 

C. The Liquidator Receiver shall have all necessary powers to manage 

and maintain the Real Property, including without limitation, the following 

powers and responsibilities: 

1. To take possession of the Real Property; 

2. To employ such counsel, real estate agents, auctioneers, 

appraisers, accountants, contractors, other professionals, and other such persons, 

including maintenance and repair persons, as may be necessary in order to carry 

out its duties as Liquidator Receiver and to preserve, maintain, and protect the 

Real Property; 

3. To determine or abrogate, in the Liquidator Receiver’s sole 

sound business discretion, any and all agreements, contracts, understandings, or 

commitments entered into by Individual Defendant Sami Charchian and Relief 

Defendants with respect to the Real Property to the extent permitted by law; 

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4. To open new accounts with, or negotiate, compromise or 

otherwise modify Individual Defendant Sami Charchian’s and Relief Defendants’ 

existing obligations to third parties, including utility companies, secured creditors, 

other service providers or suppliers of goods and services related to the Real 

Property, and to otherwise enter into such agreements, contracts, or understanding 

with such third parties as are necessary to maintain, preserve, and protect the Real 

Property; 

5. To open new bank accounts with respect to the Liquidator 

Receiver’s management and operation of the Real Property; and 

6. To rent the Real Property to third parties, until the Real 

Property is sold. 

D. The Liquidator Receiver shall keep a true and accurate account of 

any and all receipts and expenditures and periodically file with the Court a 

Liquidatorship Report under oath, accurately identifying all such revenues 

received and expenditures made, including adequately detailed information 

concerning income, expenses, payables, and receivables. These periodic filings 

shall be served by the Liquidator Receiver on the Commission and Stipulating 

Defendants’ and Relief Defendants’ counsel. 

E. Any and all sums collected by the Liquidator Receiver over and 

above those necessary to manage and maintain the Real Property or those 

necessary to make payments authorized by this Order shall be paid to the 

Commission. 

F. The Liquidator Receiver is entitled to reasonable compensation for 

the performance of duties pursuant to this Order and for the cost of actual out-ofpocket expenses incurred by it. The Liquidator Receiver’s compensation and the 

compensation of any persons hired by it are to be paid solely from the proceeds of 

the sale of the Real Property and other sums collected by the Liquidator Receiver 

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pursuant to this Section V., and such payments shall have priority over all other 

distributions except for any transfer fees, recording fees, or other payments owed 

through the transfer of the Real Property at the time of their sale. The Liquidator 

Receiver shall file with the Court and serve on the Commission and Individual 

Defendant Sami Charchian and Relief Defendants periodic requests for the 

payment of such reasonable compensation. The Liquidator Receiver shall not 

increase the fees or rates used as the bases for such fee applications without prior 

approval of the Court. 

G. The Liquidator Receiver shall file its final application for fees, 

complete liquidation, and terminate its service within twelve (12) months of the 

execution of this Order unless good cause is shown to extend beyond twelve (12) 

months. 

H. Upon the final transfer of all funds to the Commission pursuant to 

this Section, the duties of the Liquidator Receiver shall terminate. 

I. The powers and duties of the Liquidator Receiver under this Order 

are in addition to, and not in lieu of, its powers and duties as the Court-appointed 

Receiver in this matter. Nothing in Sections III. or V. of this Order shall be 

construed to, nor does, limit the powers and duties of the Receiver as set forth in 

the prior Orders of this Court in this litigation, which powers and duties shall 

continue until the termination of the entire Receivership in this litigation. Further, 

nothing in this Order limits the obligations of any Defendant or third party to 

cooperate with the Receiver as set forth in the Court’s prior Orders until 

termination of the entire Receivership. 

VI. CONTINUATION OF RECEIVERSHIP 

IT IS FURTHER ORDERED that the Receiver shall continue to exercise 

its full powers, including, but not limited to, those powers set forth in the 

Preliminary Injunction, and including full liquidation powers. The Receiver is 

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directed to wind down the Corporate Defendant and liquidate, for fair market 

value, any assets of the Corporate Defendant that the Receiver obtained pursuant 

to the Preliminary Injunction as well as any other assets of the Receivership. To 

the extent that the assets of the Receivership estate are insufficient to cover the 

Court-approved costs of the Receiver, the Receiver may recover its Courtapproved costs from the assets of the Liquidator Receivership. The Receiver 

must complete all remaining actions concerning the Receivership over the 

Corporate Defendant and terminate the receivership over them within 180 days 

after entry of the final order resolving the Commission’s claims against the last 

Defendant in this action. Provided, however, that any party or the Receiver may 

request that the Court extend that Receiver’s term for a specified term for good 

cause. Upon termination of the receivership, and final payment to the Receiver of 

all approved fees, costs, and expenses, the Receiver shall turn over to the FTC or 

its designated agent all remaining assets in the receivership estate. 

VII. CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Stipulating Defendants, Stipulating 

Defendants’ officers, agents, servants, employees, and attorneys, 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, Stipulating 

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

fourteen (14) days; 

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

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

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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 marketing or sale of goods or services; and 

C. Failing to destroy such customer information in all forms in their 

possession, custody, or control within thirty (30) days after receipt of written 

direction to do so from a representative of the Commission. Disposal shall be by 

means that protect against unauthorized access to the customer information, such 

as by burning, pulverizing, or shredding any papers, and by erasing or destroying 

any electronic media, to ensure that the customer information cannot practicably 

be read or reconstructed. 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. 

VIII. PROHIBITION ON COLLECTING ON ACCOUNTS 

IT IS FURTHER ORDERED that Stipulating Defendants, Stipulating 

Defendants’ officers, agents, servants, 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, are permanently restrained and 

enjoined from attempting to collect, collecting, or assigning any right to collect 

payment from any consumer who purchased or agreed to purchase any good or 

service from any Defendant. 

IX. ORDER ACKNOWLEDGEMENTS 

IT IS FURTHER ORDERED that Stipulating Defendants obtain 

acknowledgements of receipt of this Order: 

A. Each Stipulating Defendant, within seven (7) days of entry of this 

Order, must submit to the Commission an acknowledgment of receipt of this 

Order sworn under penalty of perjury. 

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B. For five (5) years after entry of this Order, Individual Defendant 

Sami Charchian, for any business that he, individually or collectively with any 

other Defendant, 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, 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 of this Order titled Compliance Reporting. Delivery must 

occur within seven (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 Stipulating Defendant 

delivered a copy of this Order, that Defendant must obtain, within thirty (30) 

days, a signed and dated acknowledgment of receipt of this Order. 

X. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Stipulating Defendants make timely 

submissions to the Commission: 

A. One (1) year after entry of this Order, each Stipulating Defendant 

must submit a compliance report, sworn under penalty of perjury: 

1. Each Stipulating 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 Defendant Sami Charchian must describe if he 

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

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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, Individual Defendant Sami Charchian 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. 

B. For ten (10) years after entry of this Order, each Stipulating 

Defendant must submit a compliance notice, sworn under penalty of perjury, 

within fourteen (14) days of any change in the following: 

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

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

any entity that Stipulating 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, Individual Defendant Sami Charchian 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 he performs services whether as an employee or otherwise and any entity 

in which he has any ownership interest, and identify the name, physical address, 

and any Internet address of the business or entity. 

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

the filing of any bankruptcy petition, insolvency proceeding, or similar 

proceeding by or against such Stipulating Defendant within fourteen (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, 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. Cream Group, Inc., et al. (FTC 

Matter No. X140010). 

XI. RECORDKEEPING 

IT IS FURTHER ORDERED that Stipulating Defendants must create 

certain records for ten (10) years after entry of the Order, and retain each such 

record for five (5) years. Specifically, Corporate Defendant and Individual 

Defendant Sami Charchian for any business that he, individually or collectively 

with any other Defendant, 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; 

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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 and refund requests, whether 

received directly or indirectly, such as through a third party, and any response; 

D. all records necessary to demonstrate full compliance with each 

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

E. a copy of all scripts, training materials, unique advertisements, or 

other marketing materials. 

XII. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring 

Stipulating Defendants’ compliance with this Order, and any failure to transfer 

any assets as required by this Order: 

A. Within fourteen (14) days of receipt of a written request from a 

representative of the Commission, each Stipulating 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 the 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 Stipulating Defendant. Stipulating Defendants 

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. 

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

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

entities, to Stipulating 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. 

XIII. 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 22nd day of December, 2014. 

______________________ 

U.S. District Judge John F. Walter 

// 

// 

// 

// 

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