Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 1 of 21 PageID #:493

r----------------- -

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

V. 

AMERICAN YELLOW BROWSER, INC., 

a Delaware corporation, 

AMERICAN YELLOW GROUP INC., 

a Delaware corporation, 

DISTRIBUTION H.E.P. INC., 

a Quebec, Canada, corporation, also doing 

business as American Yell ow Distribution 

and Medical Yell ow Directories Inc., 

OFFICIAL YELLOW GUIDE INC., 

a Delaware corporation, 

PUBLICATION A.A.P. INC., 

a Quebec, Canada, corporation, also doing 

business as All American Pages and 

Official Yell ow Guide, 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

PUBLICATION A.Y.B. INC., ) 

a Quebec, Canada, corporation, also doing ) 

business as American Yellow Browser Inc., ) 

American Yellow Group Inc., and All ) 

American Pages Inc., ) 

PUBLICATIONS A.Y.D. INC., 

a Quebec, Canada, corporation, 

) 

) 

) 

) 

IVAN CHERNEY, individually and as an officer ) 

of American Yellow Browser, Inc., ) 

Distribution H.E.P. Inc., Publication ) 

A.A.P. Inc., and Publication A. Y.B. Inc., ) 

and also doing business as American Yell ow) 

Corporation Inc., General Credit ) 

Case No. 15-cv-2047 

Judge Norgle 

Magistrate Judge Cole 
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 2 of 21 PageID #:494

Protection Inc., and Credit Bureau 

Recovery, and 

) 

) 

) 

GERMAN LEBEDEV, individually and as an ) 

officer of American Yell ow Browser, Inc., ) 

Publication A.A.P. Inc., Publication ) 

A.Y.B. Inc., and Publications A.Y.D. Inc., ) 

and also doing business as American ) 

Yell ow Directories Inc., ) 

Defendants. 

) 

) 

PRELIMINARY INJUNCTION 

Plaintiff, Federal Trade Commission ("FTC" or "Commission"), pursuant to Section 

13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b), filed a Complaint 

for Permanent Injunction and Other Equitable Relief, and applied ex parte for a Temporary 

Restraining Order with Asset Freeze, Other Equitable Relief, and Order to Show Cause Why a 

Preliminary Injunction Should Not Issue ("TRO") pursuant to Rule 65 of the Federal Rules of 

Civil Procedure, Fed. R. Civ. P. 65. The TRO, having been granted and notice thereof having 

been provided to Defendants, and the Court having considered all pleadings, memoranda, 

declarations, and other exhibits filed herein, and being advised in the premises, it is now 

ORDER, ADJUDGED, AND DECREED as follows: 

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

parties hereto; 

2. Venue properly lies with this Court; 

3. There is good cause to believe that Defendants have engaged in, and are likely to 

engage in the future in, acts and practices that violate Section 5(a) of the FTC Act, 15 U.S.C. 

§ 45(a), and that the Commission is therefore likely to prevail on the merits of this action; 

-2-
Case: 1:15-cv-02047 Document#: 24 Filed: 03/24/15 Page 3 of 21 PageiD #:495 

4. There is good cause to believe that immediate and irreparable hann will result 

from Defendants' ongoing violations of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), unless 

Defendants are restrained and enjoined by Order of this Court; 

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

Court's ability to grant effective final relief for consumers in the fonn of monetary restitution 

will occur from the sale, transfer, assignment, or other disposition or concealment by Defendants 

of their assets or records unless Defendants are immediately restrained and enjoined by Order of 

this Court. Therefore, there is good cause for the entry of the ancillary relief contained in this 

Order, including freezing Defendants' assets and prohibiting Defendants from destroying 

records; 

6. There is good cause for issuing this Preliminary Injunction pursuant to Federal 

Rule of Civil Procedure 65; 

7. Weighing the equities and considering the Commission's likelihood of ultimate 

success, this Preliminary Injunction with asset freeze and other equitable relief is in the public 

interest; and 

8. No security is reqUired of any agency of the United States for the issuance of a 

Preliminary Injunction. Fed. R. Civ. P. 65(c). 

DEFINITIONS 

For purposes of this Preliminary Injwtction ("Order"), the following definitions shall 

apply: 

1. "Assef' or ''Assets" means any legal or equitable interest in, right to, or claim to, 

any real or personal property, including, but not limited to, "goods," "instruments," «equipment," 

"fixtures," "general intangibles," "inventory," "checks.'' or "notes," (as these terms are defined 

-3-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 4 of 21 PageID #:496

in the Uniform Commercial Code), lines of credit, chattels, leaseholds, contracts, mail or other 

deliveries, shares of stock, lists of consumer names, accounts, credits, premises, receivables, 

funds, and all cash, wherever located. 

2. "Assisting others" includes, but is not limited to: (a) providing administrative 

services, including, but not limited to, filing business registrations with federal, state, or local 

government entities; (b) acting as an officer, director, or registered agent of a business entity; 

(c) establishing bank and/or merchant accounts; (d) handling banking transactions; (e) providing 

printing or mailing services; (f) establishing mail accounts and/or mail receiving boxes; 

(g) forwarding mail received from consumers; (h) performing customer service functions, 

including, but not limited to, receiving or responding to consumer complaints; (i) formulating or 

providing, or arranging for the formulation or provision of, any sales script or other marketing 

material; G) providing names of, or assisting in the generation of, potential customers; 

(k) performing or providing marketing or billing services of any kind; or (1) providing 

telemarketing services. 

3. "Consumer" means any individual, group, unincorporated association, limited or 

general partnership, corporation, or other business or non-profit entity. 

4. "Corporate Defendants" means American Yellow Browser, Inc., American 

Yellow Group Inc., Distribution H.E.P. Inc., also doing business as American Yellow 

Distribution and Medical Yellow Directories Inc., Official Yellow Guide Inc., Publication 

A.A.P. Inc., also doing business as All American Pages and Official Yell ow Guide, Publication 

A. Y.B. Inc., also doing business as American Yell ow Browser Inc., American Yell ow Group 

Inc., and All American Pages Inc., and Publications A.Y.D. Inc., and their successors and 

-4-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 5 of 21 PageID #:497

-----------------

assigns, as well as any subsidiaries, and any fictitious business entities or business names created 

or used by these entities. 

5. "Customer" means any person who has paid, or may be required to pay, for 

goods or services offered for sale or sold by any Defendant. 

6. "Defendants" means all of the Individual Defendants and the Corporate 

Defendants, individually, collectively, or in any combination. 

7. "Document" or "documents" is synonymous in meaning and equal in scope to 

the usage of the term in Federal Rule of Civil Procedure 34(a), and includes writings, drawings, 

graphs, charts, Internet sites, web pages, websites, electronic correspondence, photographs, audio 

and video recordings, computer records, and other data compilations from which information can 

be obtained and translated, if necessary, through detection devices into reasonably usable form. 

A draft or non-identical copy is a separate document within the meaning of the term. 

8. "Financial institution" means any bank, savings and loan institution, credit 

union, or any financial depository of any kind, including, but not limited to, any brokerage 

house, trustee, broker-dealer, escrow agent, title company, commodity trading company, or 

precious metal dealer. 

9. "Individual Defendants" means Ivan Chetnev and German Lebedev, and by 

whatever other names each may be known. 

10. "Material" means likely to affect a person's choice of, or conduct regarding, 

goods or services. 

11. "Person" or "persons" means a natural person, an organization or other legal 

entity, including a corporation, partnership, sole proprietorship, limited liability company, 

association, cooperative, or any other group or combination acting as an entity. 

- 5-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 6 of 21 PageID #:498

12. "Plaintiff' means the Federal Trade Commission ("Commission" or "FTC"). 

13. "Website" means a set of electronic documents, usually a home page and 

subordinate pages, readily viewable on a computer by anyone with access to the world wide web, 

standard software, and knowledge of the website's location or address. 

14. "World wide web" means a system used on the Internet for cross-referencing and 

retrieving information. 

I. 

PROHIBITED BUSINESS ACTIVITIES 

IT IS THEREFORE ORDERED that Defendants, and their 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 by personal service or otherwise, whether acting 

directly or through any trust, corporation, subsidiary, division, or other device, in connection 

with the advertising, marketing, promoting, offering for sale, sale, or provision of any good or 

service, including, but not limited to, the offering for sale or sale of Internet directory listings, are 

hereby restrained and enjoined from misrepresenting, or assisting others in misrepresenting, 

either orally or in writing, expressly or by implication, any material fact, including, but not 

limited to: 

A. That consumers have agreed to purchase a listing in Defendants' directory; 

B. That consumers owe money to Defendants for a listing in Defendants' directory; 

and 

C. The nature of Defendants' relationship with consumers, and the purpose of their 

communication with consumers. 

- 6-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 7 of 21 PageID #:499

II. 

POSTING NOTICE OF LAWSUIT ON WEBSITE 

IT IS FURTHER ORDERED that, immediately upon entry of this Order, Defendants, 

and their 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 by personal 

service or otherwise, whether acting directly or through any trust, corporation, subsidiary, 

division, or other device, and any other person or entity served with a copy of this Order, shall 

immediately take whatever action is necessary to ensure that any website used by any Defendant 

related to the offering for sale, sale, or posting of Internet directory listings or related to the 

collection of payment from any consumer for a listing in any Defendant's Internet directory, 

including, but not limited to, the websites located at www.american-yellow-corporation.com and 

www.general-credit-protection.com shall prominently display the following statement: 

The Federal Trade Commission ("FTC") has filed a lawsuit against American 

Yell ow Browser, Inc., American Yell ow Group Inc., Official Yellow Guide Inc., 

and other defendants, also using the names, American Yellow Distribution, 

Medical Yellow Directories Inc., Official Yellow Guide, All American Pages, 

General Credit Protection, and Credit Bureau Recovery, alleging that they have 

engaged in deceptive practices relating to the offering for sale and sale of listings 

in the American Yell ow Corporation online directory at www.american-yellowcorporation.com. The United States District Court for the Northern District of 

Illinois has issued a temporary restraining order prohibiting the alleged practices. 

You may obtain additional information directly from the FTC at www.ftc.gov. 

Each website carrying this message shall also provide a hypertext link to the FTC's 

website at http://www.ftc.gov/opa, or another website designated by counsel for the 

Commission. 

-7-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 8 of 21 PageID #:500

III. 

ASSET FREEZE 

IT IS FURTHER ORDERED that Defendants, and their 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 by personal service or otherwise, whether acting 

directly or through any trust, corporation, subsidiary, division, or other device, except as 

provided herein, as stipulated by the parties, or as directed by further order of the Court, are 

hereby restrained and enjoined from: 

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

concealing, dissipating, disbursing, assigning, spending, withdrawing, granting a lien or security 

interest or other interest in, or otherwise disposing of any funds, real or personal property, 

accounts, contracts, shares of stock, lists of consumer names, or other assets, or any interest 

therein, wherever located, including outside the territorial United States, that are: 

1. Owned, controlled, or held by, in whole or in part, for the benefit of, or 

subject to access by, or belonging to, any Defendant; 

2. In the actual or constructive possession of any Defendant; or 

3. In the actual or constructive possession of, or owned, controlled, or held 

by, or subject to access by, or belonging to, any other corporation, partnership, trust, or 

any other entity directly or indirectly owned, managed, or controlled by, or under 

common control with, any Defendant, including, but not limited to, any assets held by or 

for any Defendant in any account at any bank or savings and loan institution, or with any 

credit card processing agent, automated clearing house processor, network transaction 

processor, bank debit processing agent, customer service agent, commercial mail 

- 8-

-----------------------------------
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 9 of 21 PageID #:501

receiving agency, or mail holding or forwarding company, or any credit union, retirement 

fund custodian, money market or mutual fund, storage company, trustee, or with any 

broker-dealer, escrow agent, title company, commodity trading company, precious metal 

dealer, or other financial institution or depository of any kind, either within or outside the 

territorial United States; 

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

or storage facilities titled in the name of any Defendant, or subject to access by any Defendant or 

under any Defendant's control, without providing the Commission prior notice and an 

opportunity to inspect the contents in order to determine that they contain no assets covered by 

this Section; 

C. Cashing any checks or depositing or processing any payments from customers of 

Defendants; . 

. D. Incurring charges or cash advances on any credit card issued in the name, singly 

or jointly, of any Defendant; or 

E. Incurring liens or encumbrances on real property, personal property, or other 

assets in the name, singly or jointly, of any Defendant or of any corporation, partnership, or other 

entity directly or indirectly owned, managed, or controlled by any Defendant. 

Notwithstanding the asset freeze provisions of Section III.A through E above, and subject 

to prior written agreement with the Commission, Individual Defendants may, upon compliance 

with Section VII (Financial Statements and Accounting) infra, pay from their individual personal 

funds reasonable, usual, ordinary, and necessary living expenses. 

The funds, property, and assets affected by this Section shall include both existing assets 

and assets acquired after the effective date of this Order. 

-9-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 10 of 21 PageID #:502

IV. 

DUTIES OF THIRD PARTIES HOLDING DEFENDANTS' ASSETS 

IT IS FURTHER ORDERED that any financial institution, business entity, or person 

maintaining or having custody or control of any account or other asset of any Defendant, or any 

corporation, partnership, or other entity directly or indirectly owned, managed, or controlled by, 

or under common control with any Defendant, which is served with a copy of this Order, or 

otherwise has actual or constructive knowledge of this Order, shall: 

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

assignment, transfer, pledge, hypothecation, encumbrance, disbursement, dissipation, 

conversion, sale, liquidation, or other disposal of any of the assets, funds, documents, or other 

property held by, or under its control: 

1. On behalf of, or for the benefit of, any Defendant or any other party 

subject to Section III above; 

2. In any account maintained in the name of, or for the benefit of, or subject 

to withdrawal by, any Defendant or other party subject to Section III above; and 

3. That are subject to access or use by, or under the signatory power of, any 

Defendant or other party subject to Section III above; 

B. Deny Defendants access to any safe deposit boxes or storage facilities that are 

either: 

1. Titled in the name, individually or jointly, of any Defendant, or other party 

subject to Section III above; or 

2. Subject to access by any Defendant or other party subject to Section III 

above; 

- 10-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 11 of 21 PageID #:503

C. Provide the Commission, within five (5) days of the date of service of this Order, 

a sworn statement setting forth: 

1. The identification number of each account or asset titled in the name, 

individually or jointly, of any Defendant, or held on behalf of, or for the benefit of, any 

Defendant or other party subject to Section III above, including all trust accounts 

managed on behalf of any Defendant or subject to any Defendant's control; 

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

of such asset; 

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

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

Defendant, or is otherwise subject to access or control by any Defendant or other party 

subject to Section III above, whether in whole or in part; and 

4. If the account, safe deposit box, storage facility, or other asset has been 

closed or removed, the date closed or removed and the balance on said date; 

D. Within five (5) days of a request from the FTC, provide to the FTC copies of all 

records or other documents pertaining to each such account or asset, including, but not limited to, 

originals or copies of account applications, account statements, corporate resolutions, signature 

cards, checks, drafts, deposit tickets, transfers to and from the accounts, all other debit and credit 

instruments or slips, currency transaction reports, 1099 forms, and safe deposit box logs; and 

E. This Section shall apply to existing accounts and assets, assets deposited or 

accounts opened after the effective date of this Order, and any accounts or assets maintained, 

held or controlled three years prior to the effective date of this Order. This Section shall not 

- 11-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 12 of 21 PageID #:504

prohibit transfers in accordance with any provision of this Order, any further order of the Court, 

or by written agreement of the parties. 

v. 

DUTIES OF THIRD PARTIES TO WITHHOLD DEFENDANTS' MAIL 

IT IS FURTHER ORDERED that: 

A. Any third party with whom any Defendant maintains an account and/or mail 

receiving box, including, but not limited to, the following: 

• Philadelphia Mail Room, 8001 Castor Ave., Philadelphia, PA 19152; 

• ABCO Mail & Typing Service, 305 Madison Ave., Ste. 1166, New York, NY 

10165; 

• The UPS Store #0678, 18208 Preston Rd., Ste. D9, Dallas, TX 75252; 

• The UPS Store #6397, 258 Harvard St., Brookline, MA 02446; 

• Postal Place, 3304 N. Broadway St., Chicago, IL 60657; 

• PostNet (San Diego #CA152), 6977 Navajo Rd., San Diego, CA 92119; 

• Mail Center of Chicago Inc., 332 S. Michigan Ave., Ste. 1032, Chicago, IL 

60604; 

• PostNet (San Diego #CA256), 234 Broadway, San Diego, CA 92101; 

• Miami Postal Pack & Ship, 12864 Biscayne Blvd., North Miami, FL 33181; 

• Aarons Business Service, 325 Pennsylvania Ave. SE, Washington, DC 20003; 

• PostNet (Phoenix #AZ102), 4757 E Greenway Rd., Ste. 107B, Phoenix, AZ 

85032; 

• The UPS Store #0404, 2000 Pennsylvania Ave. NW, Washington, DC 20006; 

• Mail Service Center, 8721 Santa Monica Blvd., Los Angeles, CA 90069; 

• Global Pack Ship, 276 Washington St., Boston, MA 02108; 

• Pak Mail, 23241 Woodward Ave., Ferndale, MI 48220; 

• Flashmail Box & Ship, 822 Guilford Ave., Baltimore, MD 21202; 

• The Mail Center of Fort Lauderdale LLC, 1126 S Federal Hwy., Ft. Lauderdale, 

FL 33316; 

• BSN Enterprises LLC dba Valley Pack N Mail, 4201 Neshaminy Blvd., Ste. 108, 

Bensalem, P A 19020; 

upon being served with a copy of this Order, shall for the duration of this Order, retain and 

forward to Plaintiff all mail received that is addressed to or from any Defendant and/or addressed 

to or from any other name under which any Defendant is doing business, including, but not 

limited to: American Yellow Browser, American Yellow Group, American Yellow Distribution, 
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 13 of 21 PageID #:505

Medical Yell ow Directories, Official Yell ow Guide, All American Pages, General Credit 

Protection, and Credit Bureau Recovery. This mail shall be forwarded to Plaintiff at the 

following address: 

Douglas M. McKenney 

Federal Trade Commission, Midwest Region 

55 West Monroe Street, Suite 1825 

Chicago, Illinois 60603 

Plaintiff is authorized to open this mail. Plaintiff shall retain the forwarded mail for the duration 

of this Order, or until further order of the Court, or stipulation of the parties; and 

B. Defendants, immediately upon entry of this Order, shall provide to counsel for the 

Commission a complete list of all locations where any Defendant has received mail from January 

1, 2009, through the date of entry of this Order. Defendants shall notify counsel for the 

Commission of any locations designated to receive mail by any Defendant after the date of entry 

of this Order, within three (3) business days of such designation. Such notice shall include, for 

each location, the name and address of the location, all names in which Defendant(s) receive or 

may receive mail at that location, and a copy of any agreement or application creating the 

designation. 

VI. 

SUSPENSION OF COLLECTION ON ACCOUNTS 

IT IS FURTHER ORDERED that Defendants, and their 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 by personal service or otherwise, whether acting 

directly or through any trust, corporation, subsidiary, division, or other device, are hereby 

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

payment for Defendants' Internet directory listings. 

- 13-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 14 of 21 PageID #:506

VII. 

FINANCIAL STATEMENTS AND ACCOUNTING 

IT IS FURTHER ORDERED that no later than five (5) business days after entry of this 

Order, each Defendant shall serve upon counsel for the Commission: 

A. A completed financial statement, accurate as ofthe date of entry ofthis Order and 

verified under oath, on the form served on Defendants with the TRO, for such Defendant 

individually, and for each corporation or business entity under which such Defendant conducts 

business, or of which such Defendant is an officer, and for each trust of which such Defendant is 

a trustee. Said financial statement shall include assets held outside the territory of the United 

States. Defendants shall attach to their completed fmancial statements copies of all local, state,. 

provincial, and federal income and property tax returns, with attachments and schedules as called 

for by the instructions to the financial statements; 

B. A statement, verified under oath, of all payments, transfers, or assignments of 

funds, assets, or property worth $5,000 USD or more since January 1, 2012. Such statements 

shall include: (1) the amount transferred or assigned; (2) the name of each transferee or assignee; 

(3) the date of the assignment or transfer; and (4) the type and amount of consideration paid by 

or to the Defendant. Each statement shall specify the name and address of each financial 

institution and brokerage firm at which Defendant has accounts or safe deposit boxes. Said 

statements shall include assets held in foreign as well as domestic accounts; and 

C. A detailed accounting, verified under oath, of all gross and net profits obtained 

from, derived from, or related in any way to the offering for sale or sale of Internet directory 

listings. 

- 14-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 15 of 21 PageID #:507

VIII. 

PRESERVATION OF RECORDS AND REPORT OF NEW BUSINESS ACTIVITY 

IT IS FURTHER ORDERED that Defendants, and their 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 by personal service or otherwise, whether acting 

directly or through any trust, corporation, subsidiary, division, or other device, are hereby 

restrained and enjoined from: 

A. Failing to make and keep books, records, accounts, bank statements, current 

accountants' reports, general ledgers, general journals, cash receipts ledgers, cash disbursements 

ledgers and source documents, documents indicating title to real or personal property, and any 

other data which, in reasonable detail, accurately and fairly reflect the incomes, disbursements, 

transactions, dispositions, and uses of Defendants' assets; 

B. Destroying, erasing, mutilating, concealing, altering, transferring, or otherwise 

disposing of, in any manner, directly or indirectly, any documents, including electronically 

stored materials, that relate in any way to the business practices or business or personal fmances 

of Defendants; to the business practices or fmances of entities directly or indirectly under the 

control of Defendants; or to the business practices or finances of entities directly or indirectly 

under common control with any other Defendant; and 

C. Creating, operating, or exercising any control over any new business entity, 

whether newly formed or previously inactive, including any partnership, limited partnership, 

joint venture, sole proprietorship or corporation, without first providing the Commission with a 

written statement disclosing: (1) the name of the business entity; (2) the address, telephone 

number, email address, and website address of the business entity; (3) the names of the business 

- 15-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 16 of 21 PageID #:508

entity's officers, directors, principals, managers, and employees; and (4) a detailed description of 

the business entity's intended activities. 

IX. 

PROIDBITION ON DISCLOSING CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Defendants, and their 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 by personal service or otherwise, whether acting 

directly or through any trust, corporation, subsidiary, division, or other device, are hereby 

restrained and enjoined from: 

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

birth date, telephone number, e-mail address, Social Security number, credit card number, bank 

account number, or other financial or identifying personal information of any person from whom 

or about whom any Defendant obtained such information in connection with activities alleged in 

the FTC's Complaint; and 

B. Benefiting from or using the name, address, birth date, telephone number, email 

address, Social Security number, credit card number, bank account number, or other financial or 

identifying personal information of any person from whom or about whom any Defendant 

obtained such information in connection with activities alleged in the FTC's Complaint; 

Provided, however, that Defendants may disclose such financial or identifying personal 

information to a law enforcement agency or as required by any law, regulation, or court order. 

- 16-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 17 of 21 PageID #:509

X. 

REPATRIATION OF ASSETS AND DOCUMENTS 

LOCATED IN FOREIGN COUNTRIES 

IT IS FURTHER ORDERED that Defendants shall: 

A. Within three (3) business days following entry of this Order, take such steps as 

are necessary to repatriate to the territory of the United States of America all documents and 

assets held by or for Defendants or are under Defendants' direct or indirect control, jointly, 

severally, or individually that were transferred outside the territory of the United States from 

within the territory of the United States. 

B. Within three (3) business days following entry of this Order, provide Plaintiff 

with a full accounting of all documents and assets that are located outside of the territory of the 

United States or that have been transferred to the territory of the United States pursuant to 

Subsection A above and are held by or for any Defendant or are under any Defendant's direct or 

indirect control, jointly, severally, or individually, including the addresses and names of any 

foreign or domestic financial institution or other entity holding the documents and assets, along 

with the account numbers and balances. 

C. Hold and retain all such documents and assets and prevent any transfer, 

disposition, or dissipation whatsoever of any such documents or assets. 

D. Within three (3) business days following service of this Order, provide Plaintiff 

access to Defendants' records and documents held by fmancial institutions or other entities 

outside the territorial United States, by signing and delivering to Plaintiff's counsel the Consent 

to Release of Financial Records attached to this Order as Attachment A. 

- 17-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 18 of 21 PageID #:510

XI. 

INTERFERENCE WITH REPATRIATION 

IT IS FURTHER ORDERED that Defendants are hereby restrained and enjoined from 

taking any action, directly or indirectly, which may result in the encumbrance or dissipation of 

foreign assets, or in the hindrance of the repatriation required by the preceding Section X of this 

Order, including, but not limited to: 

A. Sending any statement, letter, facsimile, email or wire transmission, or 

telephoning or engaging in any other act, directly or indirectly, that results in a determination by 

a foreign trustee or other entity that a "duress" event has occurred under the terms of a foreign 

trust agreement, until such time that assets have been fully repatriated pursuant to the preceding 

Section of this Order. 

B. Notifying any trustee, protector or other agent of any foreign trust or other related 

entities of either the existence of this Order, or of the fact that repatriation is required pursuant to 

a Court Order, until such time as assets have been fully repatriated pursuant to the preceding 

Section of this Order. 

XII. 

DISTRIBUTION OF ORDER BY DEFENDANTS 

IT IS FURTHER ORDERED that Defendants shall immediately provide a copy of this 

Order to each of their corporations, subsidiaries, affiliates, partners, divisions, sales entities, 

successors, assigns, members, officers, directors, employees, independent contractors, agents, 

servants, attorneys, spouses, representatives, and any other persons in active concert or 

participation with them. Within five (5) business days following entry of this Order, Defendants 

shall serve on Plaintiff an affidavit identifying the name, title, addresses, telephone numbers, 

- 18-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 19 of 21 PageID #:511

date of service, and manner of service of the persons Defendants have served with a copy of this 

Order in compliance with this provision. 

XIII. 

SERVICE OF ORDER 

IT IS FURTHER ORDERED that copies of this Order may be served by facsimile 

transmission, personal or overnight delivery, first class mail, electronic mail, or personally, by 

agents and employees of the Commission or any state, provincial, federal, or international law 

enforcement agency, or by private process server, on: (1) Defendants; (2) any financial 

institution, entity, or person that holds, controls, or maintains custody of any documents or assets 

of any Defendant, or that held, controlled, or maintained custody of any documents or assets of 

any Defendant; or (3) any other person or entity that may be subject to any provision of this 

Order. Service upon any branch or office of any financial institution or entity shall effect service 

upon the entire financial institution or entity. 

XIV. 

CONSUMER REPORTING AGENCIES 

IT IS FURTHER ORDERED that, pursuant to Section 604 of the Fair Credit Reporting 

Act, 15 U.S.C. § 1681b, any consumer reporting agency may furnish a consumer or credit report 

concerning any Defendant to the Commission. 

XV. 

EXPEDITED DISCOVERY 

IT IS FURTHER ORDERED that, notwithstanding the provisions of Federal Rules of 

Civil Procedure 26(d) and (f) and 30(a)(2)(A)(iii) and 31(a)(2)(A)(iii), and pursuant to Federal 

- 19-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 20 of 21 PageID #:512

Rules of Civil Procedure 30(a), 3l(a), 34, and 45, Plaintiff is granted leave, at any time after 

entry of this Order, to: 

A. Take the deposition, on three (3) calendar days' notice, of any person, whether or 

not a party, for the purpose of discovering the nature, location, status, and extent of the assets of 

the Defendants, or their affiliates or subsidiaries; the nature and location of documents reflecting 

the Defendants' business transactions, or the business transactions of the Defendants' affiliates 

or subsidiaries; the location of any premises where Defendants, directly or through any third 

party, conduct business operations; the Defendants' whereabouts; and/or the applicability of any 

evidentiary privileges to this action. The limitations and conditions set forth in Fed. R. Civ. P. 

30(a)(2)(A)(ii) and 31(a)(2)(A)(ii) regarding subsequent depositions of a person shall not apply 

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

Section shall not be counted toward the ten (10) deposition limit set forth in Fed. R. Civ. P. 

30(a)(2)(A)(i) and 31(a)(2)(A)(i). Service of discovery upon a party, taken pursuant to this 

Section, shall be sufficient if made by facsimile or by overnight delivery; and 

B. Demand the production of documents, on five (5) calendar days' notice, from any 

person, whether or not a party, relating to the nature, status, or extent of Defendants' assets, or of 

their affiliates or subsidiaries; the location of documents reflecting the business transactions of 

Defendants, or of their affiliates or subsidiaries; the location of any premises where Defendants, 

directly or through any third party, conduct business operations; the Defendants' whereabouts; 

and/or the applicability of any evidentiary privileges to this action, provided that twenty-four 

(24) hours' notice shall be deemed sufficient for the production of any such documents that are 

maintained or stored only as electronic data. 

-20-
Case: 1:15-cv-02047 Document #: 24 Filed: 03/24/15 Page 21 of 21 PageiD #:513 

XVI. 

CORRESPONDENCE WITH AND NOTICE TO PLAINTIFF 

IT IS FURTHER ORDERED that any correspondence, papers, and pleadings related to 

this Order shall be served upon Plaintiffby overnight mail, electronic mail, courier delivery, or 

facsimile to: 

Jolm C. Hallerud 

Federal Trade Commission 

55 West Momoe Street, Suite 1825 

Chicago, Illinois 60603 

(312) 960-5634 [Telephone] 

(312) 960-5600 [Facsimile] 

jhallerud@ftc.gov [Email] 

XVII. 

RETENTION OF JURISDICTION 

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

all purposes. 

so ORDERED, this J of /ftf1li (!.)j 2015. 

-21-