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IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF ARIZONA 

Federal Trade Commission,

Plaintiff, 

v. 

Sitesearch Corporation, dba LeapLab, a 

Nevada corporation; et al., 

Defendants. 

No. CV-14-02750-PHX-NVW

ORDER 

Plaintiff, Federal Trade Commission (“FTC”), filed its Complaint for Permanent 

Injunction and Other Equitable Relief (“Complaint”), pursuant to Section 13(b) of the 

Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b). The FTC and 

Defendant Leads Company, LLC have stipulated to entry of this Final Order for 

Permanent Injunction and Settlement of Claims (“Order”) to resolve all matters in dispute 

in this action between them. 

THEREFORE, IT IS ORDERED: 

FINDINGS

1. This is an action by the FTC instituted under Section 13(b) of the FTC Act, 15 

U.S.C. § 53(b). The Complaint charges that Defendant participated in unfair acts 

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

connection with the disclosure of consumers’ sensitive personal information. The 

Complaint seeks both permanent injunctive relief and equitable monetary relief for 

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Defendant’s unfair acts or practices as alleged therein. 

2. The FTC has the authority under Section 13(b) of the FTC Act to seek the relief it 

has requested, and the Complaint states a claim upon which relief can be granted 

against Defendant. 

3. This Court has jurisdiction over the subject matter of this case and has jurisdiction 

over Defendant. Venue in the District of Arizona is proper. 

4. The activities of Defendant, as alleged in the Complaint, are in or affecting 

commerce, as defined in Section 4 of the FTC Act, 15 U.S.C. § 44. 

5. Defendant neither admits nor denies any of the allegations in the Complaint, 

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

Defendant admits the facts necessary to establish jurisdiction. 

6. Defendant waives all rights to appeal or otherwise challenge or contest the validity 

of this Order. Defendant also waives any claim that it may have held under the 

Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this 

action to the date of this Order. The FTC and Defendant each shall bear its own 

costs and attorneys’ fees. 

7. This action and the relief awarded herein are in addition to, and not in lieu of, 

other remedies as may be provided by law, including both civil and criminal 

remedies. 

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

DEFINITIONS

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

1. “Defendant” means Leads Company, LLC, and its successors and assigns. 

2. “Financial product or service” means any product, service, plan, or program 

represented, expressly or by implication, to: 

 A. provide any consumer, arrange for any consumer to receive, or assist 

any consumer in receiving, a loan or other extension of credit; 

B. provide any consumer, arrange for any consumer to receive, or assist any 

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consumer in receiving, credit, debit, or stored value cards; 

 C. improve, repair, or arrange to improve or repair, any consumer’s credit 

 record, credit history, or credit rating; or 

 D. provide advice or assistance to improve any consumer’s credit record, 

credit history, or credit rating. 

3. “Person” means a natural person, organization, or other legal entity, including a 

corporation, partnership, proprietorship, association, cooperative, or any other group or 

combination acting as an entity. 

4. “Sensitive Personal Information” means any of the following about a consumer: 

(a) Social Security number; (b) financial institution account number; 

(c) credit or debit card information; or (d) any other information by which a consumer’s 

financial account can be accessed, or by which a consumer might be charged for goods or 

services, including through third parties such as telecommunications carriers. 

ORDER 

I. Prohibition on the Disclosure of Sensitive Personal Information 

IT IS THEREFORE ORDERED that Defendant is hereby permanently restrained 

and enjoined from, or assisting others engaged in, selling, transferring, or otherwise 

disclosing a consumer’s Sensitive Personal Information to any Person, except as 

otherwise provided in Sections IV or IX of this Order; provided, however, that this 

Section I shall not prohibit the Defendant from transferring or otherwise disclosing a 

consumer’s Sensitive Personal Information to the extent necessary to process payment for 

any product or service sold by that Defendant directly to that consumer and for which 

that Defendant has the consumer’s express, informed consent for that sale. 

II. Prohibited Misrepresentations Relating to Financial Products or Services 

 IT IS FURTHER ORDERED that Defendant and its officers, agents, employees, 

and attorneys, and those persons or entities in active concert or participation with any of 

them who receive actual notice of this Order by personal service, facsimile transmission, 

email, or otherwise, whether acting directly or indirectly, in connection with the 

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advertising, marketing, promotion, offering for sale, or selling of any Financial product or 

service, are hereby permanently restrained and enjoined from misrepresenting or assisting 

others in misrepresenting, expressly or by implication: 

 A. The likelihood that any Person will obtain a loan or other extension 

 of credit; and 

 B. The terms or rates that are available for any loan or other extension 

 of credit. 

III. Prohibited Misrepresentations Relating to All Products or Services 

IT IS FURTHER ORDERED that Defendant and its officers, agents, employees, 

and attorneys, and those persons or entities in active concert or participation with any of 

them who receive actual notice of this Order by personal service, facsimile transmission, 

email, or otherwise, whether acting directly or indirectly, in connection with the 

advertising, marketing, promotion, offering for sale, or selling of any product or service, 

are hereby permanently restrained and enjoined from misrepresenting or assisting others 

in misrepresenting, expressly or by implication: 

A. That a consumer has authorized or otherwise consented to the purchase of a 

product or service; 

B. The likelihood of any particular outcome or result from a product or 

service; 

C. The nature or terms of any refund, cancellation, exchange, or repurchase 

policy, including, but not limited to, the likelihood of a consumer obtaining 

a full or partial refund, or the circumstances in which a full or partial refund 

will be provided to the consumer; and 

D. Any other fact material to consumers concerning any product or service, 

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

or any material aspect of its performance, efficacy, nature, or central 

characteristics. 

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IV. Consumer Information 

IT IS FURTHER ORDERED that Defendant and its officers, agents, employees, 

and attorneys, and those Persons or entities in active concert or participation with any of 

them who receive actual notice of this Order by personal service, facsimile transmission, 

email, or otherwise, whether acting directly or indirectly, are permanently restrained and 

enjoined from directly or indirectly: 

A. Failing to provide sufficient consumer information to enable the FTC to 

administer efficiently consumer redress. If a representative of the FTC 

requests in writing any information related to redress, Defendant must 

provide it, in the form prescribed by the FTC, within 14 days. 

B. Disclosing, using, or benefitting from consumer 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) of any person that any Defendant obtained prior to entry 

of this Order in connection with the marketing or offering of payday loans 

or other extensions of credit. 

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

possession, custody, or control within thirty (30) days after entry of this 

order. 

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

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

regulation, or court order. 

V. Monetary Judgment 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of one-million six-hundred fifty-one thousand six 

hundred eighty two dollars ($1,651,682) is entered in favor of the FTC 

against Defendant as equitable monetary relief. The judgment is suspended 

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subject to the Subsections below. 

B. The Commission’s agreement to the suspension of the judgment is 

expressly premised upon the truthfulness, accuracy, and completeness of 

Defendant’s sworn financial statements and related documents 

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

namely, the Financial Statement of Corporate Defendant Leads Company, 

LLC signed by the Chief Executive Officer of 2H Corporation, Parent 

Company of Leads Company, LLC on September 14, 2015, including the 

attachments; 

C. The suspension of the judgment will be lifted if, upon motion by the 

Commission, the Court finds that Defendant 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. 

D. If the suspension of the judgment is lifted, the judgment becomes 

immediately due as to Defendant in the amount specified in Subsection A. 

above (which the parties stipulate only for purposes of this Section 

represents the consumer injury alleged in the Complaint), less any payment 

previously made pursuant to this Section, plus interest computed from the 

date of entry of this Order. 

E. All money paid to the FTC pursuant to this Order may be deposited into a 

fund administered by the FTC or its designee to be used for equitable relief, 

including consumer redress and any attendant expenses for the 

administration of any redress funds. If a representative of the FTC decides 

that direct redress to consumers is wholly or partially impracticable or 

money remains after redress is completed, the FTC may apply any 

remaining money for such other equitable relief (including consumer 

information remedies) as the FTC determines to be reasonably related to 

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the practices alleged in the Complaint. Any money not used for such 

equitable relief is to be deposited to the United States Treasury as equitable 

disgorgement. Defendant has no right to challenge any actions the FTC or 

its representatives may take pursuant to this Subsection. 

F. Defendant relinquishes 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. 

G. 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 FTC, 

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. 

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

sustain an action by the FTC 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. 

I. Defendant acknowledges that its Taxpayer Identification Numbers (Social 

Security Numbers or Employer Identification Numbers), which Defendant 

previously submitted to the FTC, may be used for collecting and reporting 

on any delinquent amount arising out of this Order, in accordance with 31 

U.S.C. § 7701. 

VI. Order Acknowledgments 

IT IS FURTHER ORDERED that Defendant obtain acknowledgments of receipt 

of this Order: 

A. Within 7 days of entry of this Order, Defendant must submit to the FTC an 

acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For 5 years after entry of this Order, Defendant must deliver a copy of this 

Order to: (1) all principals, officers, directors, and LLC managers and 

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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 

titled Compliance Reporting. Delivery must occur within 7 days of entry of 

this Order for current personnel. To all others, delivery must occur before 

they assume their responsibilities. 

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

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

acknowledgment of receipt of this Order. 

VII. Compliance Reporting 

IT IS FURTHER ORDERED that Defendant make timely submissions to the 

FTC: 

A. One year after entry of this Order, Defendant must submit a compliance 

report, sworn under penalty of perjury. In that report, Defendant must: (a) 

identify the primary physical, postal, and email and telephone number, as 

designated points of contact, which representatives of the FTC 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 products and services offered, the means of advertising, 

marketing, and sales, and the involvement of any other Defendant; (d) 

describe in detail whether and how 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 FTC; 

B. For 20 years following entry of this Order, Defendant must submit a 

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

change in the following: (a) any designated point of contact; or (b) the 

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structure of Defendant or any entity that Defendant has any ownership 

interest in or directly or indirectly controls 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. 

C. Defendant must submit to the FTC notice of the filing of any bankruptcy 

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

Defendant within 14 days of its filing. 

D. Any submission to the FTC 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 an FTC representative in writing, all 

submissions to the FTC 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. Sitesearch, et al.

VIII. Recordkeeping 

IT IS FURTHER ORDERED that Defendant must create certain records for 20 

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

Defendant must create and maintain the following records: 

A. Proof of consumers’ express, informed consent to have their sensitive 

personal information transferred or disclosed, which includes the 

consumer’s name, and, if collected, phone number, and address; the 

manner, time, place, and method of the authorization; and sufficient data to 

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readily show the complete consumer experience, including an audio 

recording of the entirety of any telemarketing transaction; 

B. Accounting records showing the revenues from all goods or services sold, 

all costs incurred in generating those revenues, and the resulting net profit 

or loss; 

C. Personnel records showing, for each person providing services, whether as 

an employee or otherwise, that person’s: name, addresses, and telephone 

numbers; job title or position; dates of service; and, if applicable, the reason 

for termination; 

D. Complaints and refund requests, whether received directly or indirectly, 

such as through a third party, and any response; 

E. All records necessary to demonstrate full compliance with each provision 

of this Order, including all submissions to the FTC; and 

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

IX. Compliance Monitoring 

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendant’s 

compliance with this Order, including any failure to pay the judgment as required by this 

Order: 

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

FTC, 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 FTC 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 FTC is authorized to communicate 

directly with Defendant. Defendant must permit representatives of the FTC 

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c. 

to interview any employee or other person affiliated with Defendant who 

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

present. 

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

5 representatives, as consumers, suppliers, or other individuals or entities, to 

6 Defendant or any individual or entity affiliated with Defendant, without the 

7 necessity of identification or prior notice. Nothing in this Order limits the 

8 FTC's lawful use of compulsory process, pursuant to Sections 9 and 20 of 

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

10 X. Retention of Jurisdiction 

11 IT IS FURTHER ORDERED that this Comt retains jurisdiction of this matter for 

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

13 IT IS SO ORDERED. 

14 Dated this 5th day ofFebmruy, 2016. 

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17 ~!/!!/~ 18 United States Distr·ict Judge 

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