Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 1 of 54

UNITED STATES DISTRICT COURT 

WESTERN DISTRICT OF NEW YORK 

FEDERAL TRADE COMMISSION, and 

PEOPLE OF THE STATE OF NEW YORK, by 

ERIC T. SCHNEIDERMAN, Attorney General of 

the State of New York, 

Plaintiffs, 

v. 

KELLY S. BRACE, individually and as an officer 

of one or more of the Corporate Defendants; 

BRACLAIRE MANAGEMENT, LLC, a New York 

limited liability company, also d/b/a CLEAR 

CREDIT SERVICES, also d/b/a CLEAR CREDIT 

SOLUTIONS, and also d/b/a DELAWARE 

SOLUTIONS; CREDIT CLEAR SOLUTIONS, 

LLC, a California limited liability company; 

SOLIDUS GROUP, LLC, a New York limited 

liability company; SOLIDUS SOLUTIONS, LLC, a 

New York limited liability company, 

Defendants, and 

JOELLE J. LECLAIRE, 

Relief Defendant. 

Case No. 15-CV-875-A 

TEMPORARY RESTRAINING 

ORDER 

Plaintiffs Federal Trade Commission ("FTC") and The People of the State ofNew York 

("State of New York," and, collectively with the FTC, "Plaintiffs") have filed a complaint 

seeking a permanent injunction and other equitable relief, pursuant to Section 13(b) of the 

Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b), Section 814(a) of the Fair Debt 

Collection Practices Act ("FDCPA"), 15 U.S.C. § 1692/(a), N.Y. Executive Law§ 63(12), and 

N.Y. General Business Law Articles 22-A, § 349, and 29-H, § 602, and a motion for temporary 

restraining order ("TRO" or "Order") pursuant to Rule 65(b) of the Federal Rules of Civil 

Procedure. 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 2 of 54

FINDINGS OF FACT 

This Court, having considered the Complaint, exhibits, suggestions, declarations, and 

other submissions finds that: 

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

believe it will have jurisdiction over all the parties hereto, and venue in this district is 

proper; 

B. There is good cause to believe that Defendants Braclaire Management, LLC; Clear Credit 

Services, LLC; Credit Clear Solutions, LLC; Delaware Solutions, LLC; Solidus Group, 

LLC; Solidus Solutions, LLC; and Kelly S. Brace have engaged and are likely to 

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

§ 45(a), the FDCPA, 15 U.S.C. §§ 1692 ~ 1692p, New York Executive Law§ 63(12), 

and New York General Business Law§§ 349 and 601, and that Plaintiffs are therefore 

likely to prevail on the merits of this action; 

C. There is good cause to believe that consumers will suffer immediate and continuing harm 

from Defendants' ongoing violations of Section 5(a) of the FTC Act, the FDCPA, New 

York Executive Law, and New York General Business Law, unless Defendants are 

restrained and enjoined by Order of this Court; 

D. 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 form of monetary restitution 

and/or disgorgement of ill-gotten gains will occur from the transfer, dissipation, or 

concealment by Defendants of their assets or business records unless Defendants are 

immediately restrained and enjoined by Order of this Court; 

Page 2 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 3 of 54

E. Good cause exists for permitting Plaintiffs inunediate access to Defendants' business 

premises, and permitting Plaintiffs to take expedited discovery; 

F. Weighing the equities and considering Plaintiffs' likelihood of ultimate success, a 

temporary restraining order with an asset freeze, immediate access to business premises, 

expedited discovery as to the existence and location of assets and documents, and other 

equitable relief is in the public interest; and 

G. No security is required of any agency of the United States for issuance of a TRO, Fed. R. 

Civ. P. 65(c). 

DEFINITIONS 

A. "Assets" means any legal or equitable interest in, right to, or claim to, any real or 

personal property, including, without limitation, chattels, goods, instruments, equipment, 

fixtures, general intangibles, leaseholds, mail or other deliveries, inventory, checks, 

notes, accounts, credits, contracts, receivables, shares of stock, and all cash, wherever 

located. 

B. "Corporate Defendants" means Defendants Braclaire Management, LLC; Clear Credit 

Services, LLC; Credit Clear Solutions, LLC; Delaware Solutions, LLC; Solidus Group, 

LLC; Solidus Solutions, LLC, and their successors, assigns, affiliates, or subsidiaries, and 

each of them by whatever names each might be known. 

C. "Debt" means any obligation or alleged obligation to pay money arising out of a 

transaction, whether or not such obligation has been reduced to judgment. 

D. "Defendants" means the Individual Defendants and the Corporate Defendants, 

individually, collectively, or in any combination, and each of them by whatever names 

each might be known. 

Page 3 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 4 of 54

E. "Document" and "Electronically Stored Information" are synonymous in meaning and 

equal in scope to the usage of the terms in Rule 34(a) of the Federal Rules of Civil 

Procedure, and include but are not limited to: 

1. The original or a true copy of any written, typed, printed, electronically 

stored, transcribed, taped, recorded, filmed, puoched, or graphic matter or 

other data compilations of any kind, including, but not limited to, letters, 

email or other correspondence, messages, memoranda, interoffice 

commuoications, notes, reports, summaries, manuals, magnetic tapes or 

discs, tabulations, books, records, checks, invoices, work papers, journals, 

ledgers, statements, returns, reports, schedules, or files; and 

11. Any electronically stored information stored on any server, or any type of 

mobile device, flash drives, personal digital assistants, desktop personal 

computer and workstations, laptops, notebooks, and other portable 

computers, or other electronic storage media, whether assigned to 

individuals or in pools of computers available for shared use, or personally 

owned but used for work-related purposes; backup disks and tapes, 

archive disks and tapes, and other forms of offline storage, whether stored 

onsite with the computer used to generate them, stored offsite in another 

company facility, or stored, hosted, or otherwise maintained offsite by a 

third-party; and computers and related offline storage used by Defendants 

or Defendants' participating associates, which may include persons who 

are not employees of the company or who do not work on company 

premises. 

Page 4 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 5 of 54

F. "Electronic Data Host" means any person or entity in the business of storing, hosting, or 

otherwise maintaining electronically stored information. 

G. "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. 

H. "Individual Defendant" means Kelly S. Brace. 

I. "Person" means a natural person, an organization or other legal entity, including a 

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

or combination acting as an entity. 

J. The terms "and" and "or" shall be construed conjunctively or disjunctively as necessary 

to make the applicable phrase or sentence inclusive rather than exclusive. 

ORDER 

PROHIBITED REPRESENTATIONS AND DEBT COLLECTION ACTIVITIES 

I. IT IS THEREFORE ORDERED that in connection with the collection or the attempted 

collection of any debt, Defendants and their successors, assigns, members, 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 or otherwise, whether acting 

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

restrained and enjoined from: 

A. Misrepresenting, or assisting others who are misrepresenting, expressly or by 

implication, orally or in writing, any of the following: 

I. that Defendants' debt collectors are process servers; 

Page 5 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 6 of 54

2. that Defendants' debt collectors are law enforcement officials; 

3. that Defendants' debt collectors are attorneys or representatives of an 

attorney, or that a communication is from an attorney; 

4. that Defendants will serve, or arrange for a third party to serve, documents 

on a consumer; 

5. that consumers have committed fraud or a criminal act; 

6. that Defendants have filed, or intend to file, a lawsuit against the consumer 

for failing to pay a purported debt; 

7. that non-payment of a purported debt will result in a consumer's arrest, 

criminal prosecution, or imprisonment; or 

8. the character, amount, or legal status of a debt; 

B. Communicating with any person other than the consumer, the consumer's 

attorney, a consumer reporting agency if otherwise permitted by law, the creditor, 

the attorney of the creditor, the attorney of the debt collector, the consumer's 

spouse, parent (if the consumer is a minor), guardian, executor, or administrator 

for purposes other than acquiring location information about a consumer, without 

having obtained directly the prior consent of the consumer or the express 

permission of a court of competent jurisdiction, and when not reasonably 

necessary to effectuate a post-judgment judicial remedy; 

C. Threatening to take action that Defendants do not intend to take, such as filing a 

lawsuit or threatening to disclose debts to third parties; 

D. Disclosing or threatening to disclose information concerning the existence of a 

debt known to be disputed by the debtor without disclosing that fact; 

Page 6 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 7 of 54

E. Using any false representation or deceptive means to collect or attempt to collect 

a debt, or to obtain information concerning a consumer; 

F. Failing to disclose or disclose adequately in the initial communication with a 

consumer that any Defendant or any other person is a debt collector attempting to 

collect a debt and that any information obtained will be used for that purpose, or 

failing to disclose in subsequent communications that the communication is from 

a debt collector; 

G. Failing to provide consumers, within five days after the initial communication 

with a consumer, a written notice containing: (1) the amount of the debt; (2) the 

name of the creditor to whom the debt is owed; (3) a statement that unless the 

consumer, within thirty days after receipt of the notice, disputes the validity of the 

debt, or any portion thereof, the debt will be assumed to be valid by Defendants; 

( 4) a statement that if the consumer notifies Defendants in writing within the 

thirty-day period that the debt, or any portion thereof, is disputed, Defendants will 

obtain verification of the debt or a copy of a judgment against the consumer and a 

copy of such verification or judgment will be mailed to the consumer by 

Defendants; and ( 5) a statement that, upon the consumer's written request within 

the thirty-day period, Defendants will provide the consumer with the name and 

address of the original creditor, if different from the current creditor; 

H. Collecting or attempting to collect a debt from a consumer without a reasonable 

basis for believing that the consumer owes the debt and in the amount demanded; 

and 

Page 7 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 8 of 54

I. Engaging in any other conduct that violates the FDCPA, 15 U.S.C. §§ 1692-

!692p, or New York General Business Law § 60 I. 

ASSET FREEZE 

II. IT IS FURTHER ORDERED that Defendants are hereby temporarily restrained and 

enjoined from directly or indirectly: 

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 assets, 

or any interest therein, wherever located, including outside the United States, that 

are: 

I. owned or controlled, directly or indirectly, by any Defendants, in whole or 

in part, or held, in whole or in part, for the benefit of any Defendants; 

2. in the actual or constructive possession of any Defendants; 

3. owned by, controlled by, or in the actual or constructive possession of any 

corporation, partnership, or other entity directly or indirectly owned, 

managed, or controlled by, or under common control with any Defendants; 

or 

4. held by, for, or under the name of any Defendants at any bank or savings 

and loan institution, or with any broker-dealer, escrow agent, title 

company, commodity trading company, payment processing company, 

precious metal dealer, or other financial institution or depository of any 

kind; 

Page 8 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 9 of 54

B. Opening or causing to be opened any safe deposit boxes titled in the name of any 

Defendants, or subject to access by any Defendants; 

C. Incurring charges or cash advances on any credit card, debit card, or checking 

card issued in the name, singly or jointly, of any Defendants; 

D. Obtaining a personal or secured loan; and 

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

assets in the name, singly or jointly, of any Defendants. 

Provided, however, that the Corporate Defendants may transfer assets to persons and entities that 

are not any of the Defendants or any business which any Defendants have a beneficial or legal 

interest, if those transfers are made as payment for: 

A. compensation due to current employees, other than the Individual Defendant, as 

provided by currently existing agreements between the Corporate Defendants and 

those employees; 

B. rent for currently existing business premises according to leases that are currently 

in effect; 

C. utilities, telecommunications service, internet service, and electronic data hosting 

for currently existing business premises; and 

D. taxes due to the United States, the State of New York, or any political subdivision 

of the State of New York. 

The assets affected by this Section shall include: (1) all assets of Defendants as of the time this 

Order is entered; and (2) for assets obtained after the time this Order is entered, those assets that 

are obtained from any debt-collection activities that predate the entry of this Order. This Section 

Page 9 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 10 of 54

does not prohibit the repatriation of foreign Assets, as specifically required in Section VII 

(Repatriation of Foreign Assets) of this Order. 

RETENTION OF ASSETS AND RECORDS BY FINANCIAL INSTITUTIONS AND 

OTHER THIRD PARTIES 

III. IT IS FURTHER ORDERED that any financial or brokerage institution or depository, 

escrow agent, title company, commodity trading company, trust, entity, electronic data host, or 

person that holds, controls, or maintains custody of any account, document, electronically stored 

information, or asset owned or controlled, directly or indirectly, by any Defendants, or has held, 

controlled, or maintained any account, document, electronically stored information, or asset of, 

or on behalf of, any Defendants, upon service with a copy of this Order, shall: 

A. Hold, preserve, and retain within its control and prohibit Individual Defendant 

and Defendants Solidus Solutions, LLC and Solidus Group, LLC from 

withdrawing, removing, assigning, transferring, pledging, encumbering, 

disbursing, dissipating, converting, selling, gifting, or otherwise disposing of any 

accounts, documents, electronically stored information, assets, funds, or other 

property that are owned by, held in the name of, for the benefit of, or otherwise 

controlled by, directly or indirectly, Individual Defendant and Defendants Solidus 

Solutions, LLC and Solidus Group, LLC, in whole or in part, except for accounts 

held in the names of Braclaire Management, LLC and Credit Clear Solutions, 

LLC, or as directed by further order of the Court; 

B. Provide the Plaintiffs and Plaintiffs' agents expedited access to electronically 

stored information stored, hosted, or otherwise maintained on behalf of any 

Defendants for forensic imaging; 

Page IO of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 11 of 54

C. Deny the Defendants access to any safe deposit box titled in the name of any 

Defendants, individually or jointly, or subject to access by any Defendants, 

whether directly or indirectly; 

D. Provide counsel for Plaintiffs, within one (I) business day ofreceipt of this Order, 

a certified statement setting forth: 

1. the identification number of each such account or asset titled (1) in the 

name, individually or jointly, of any Defendants; (2) held on behalf of, or 

for the benefit of, any Defendants; (3) owned or controlled by any 

Defendants; or (4) otherwise subject to access or use by any Defendants, 

directly or indirectly; 

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

of such asset as of the close of business on the day on which this Order is 

served, and, if the account or other asset has been closed or removed, the 

date closed or removed, the total funds removed in order to close the 

account, and the name of the person or entity to whom such account or 

other asset was remitted; 

3. the identification of any safe deposit box that is either titled in the name of 

any Defendants, or is otherwise subject to access by any Defendants; and 

4. if an account, safe deposit box, or other asset has been closed or removed, 

the date closed or removed, the balance on such date, and the name of the 

person or entity to whom such account or other asset was remitted; and 

E. Provide counsel for Plaintiffs, within three (3) business days after being served 

with a request, copies of all documents pertaining to such account or asset, 

Page 11 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 12 of 54

including but not limited to originals or copies of account applications, account 

statements, 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; provided that such institution or 

custodian may charge a reasonable fee. 

PRESERVATION OF DOCUMENTS HELD BY THIRD PARTIES 

IV. IT IS FURTHER ORDERED that Defendants, their Representatives, and any other 

person or entity who receives actual notice of this Order, whether acting directly or indirectly, 

are hereby temporarily restrained and enjoined from destroying, concealing, altering, 

transferring, or otherwise disposing of, in any marmer, documents that relate to: (!)Defendants' 

business practices, assets, telephone account records, and email account records; (2) any 

webpage or website operated, in whole or in part, on any Defendants' behalf; and (3) any 

electronic communications sent or received by the Defendants, including but not limited to 

emails, recordings of telephone conversations, and voicemail recordings. 

FINANCIAL STATEMENTS AND ACCOUNTING 

V. IT IS FURTHER ORDERED that each Defendant, within three (3) business days of 

service of this Order, shall prepare and deliver to counsel for Plaintiffs: 

A. For the Individual Defendant, a completed financial statement accurate as of the 

date of service of this Order upon him (unless otherwise agreed upon with 

Plaintiffs' counsel) on the form of Attachment A to this Order captioned, 

"Financial Statement oflndividual Defendant." 

B. For the Corporate Defendants, a completed financial statement accurate as of the 

date of service of this Order upon such Defendants (unless otherwise agreed upon 

Page 12 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 13 of 54

with Plaintiffs' counsel) in the form of Attachment B to this Order captioned, 

"Financial Statement of Corporate Defendant." 

C. For each Defendant, within five (5) days, a completed statement, verified under 

oath, of all payments, transfers or assignments of funds, assets, or property worth 

$2,500 or more since January 1, 2012. Such statement shall include: (a) the 

amount transferred or assigned; (b) the name of each transferee or assignee; ( c) 

the date of the transfer or assignment; and ( d) the type and amount of 

consideration paid the Defendant. Each statement shall specify the name and 

address of each financial institution and brokerage firm at which the Defendant 

has accounts or safe deposit boxes. Said statements shall include assets held in 

foreign as well as domestic accounts. 

In addition, the Individual Defendant must report, within three (3) days, to Plaintiffs' counsel 

any change prior to the expiration of this Order in his 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 Defendant has any ownership interest, and identify the name, physical 

address, and any Internet address of the business or entity. 

CONSUMER CREDIT REPORTS 

VI. IT IS FURTHER ORDERED that Plaintiffs may obtain credit reports concerning any 

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

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

reports are requested shall provide them to Plaintiffs. 

Page 13 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 14 of 54

REPATRIATION OF FOREIGN ASSETS 

VII. IT IS FURTHER ORDERED that, within five (5) business days following the service 

of this Order, each Defendant shall: 

A. Provide counsel for Plaintiffs with a full accounting of all assets, accounts, funds, 

and documents outside of the territory of the United States that are held: (!)by 

them; (2) for their benefit; (3) in trust by or for them, individually or jointly; or 

(4) under their direct or indirect control, individually or jointly; 

B. Transfer to the territory of the United States all assets, accounts, funds, and 

documents in foreign countries held: (!) by them; (2) for their benefit; (3) in trust 

by or for them, individually or jointly; or ( 4) under their direct or indirect control, 

individually or jointly; 

C. Hold and retain all repatriated assets, accounts, funds, and documents, and 

prevent any transfer, disposition, or dissipation whatsoever of any such assets, 

accounts, funds, or documents; and 

D. Provide Plaintiffs access to all records of accounts or assets of the Defendants 

held by financial institutions located outside the territorial United States by 

signing the Consent to Release of Financial Records attached to this Order as 

Attachment C. 

NON-INTERFERENCE WITH REPATRIATION 

VIII. IT IS FURTHER ORDERED that Defendants, and each of their officers, agents, 

employees, and attorneys, and those persons in active concert or participation with them who 

receive actual notice of this Order, whether acting directly or through any entity, corporation, 

subsidiary, division, affiliate or other device, are hereby temporarily restrained and enjoined 

Page 14 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 15 of 54

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 Section IX of this Order, 

including but not limited to: 

A. Sending any statement, letter, fax, e-mail, or wire transmission, 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 all assets have been fully 

repatriated pursuant to Section IX of this Order; and 

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

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

required pursuant to a Court Order, until such time that all assets have been fully 

repatriated pursuant to Section IX. 

PLAINTIFFS' IMMEDIATE ACCESS TO BUSINESS 

PREMISES AND RECORDS 

IX. IT IS FURTHER ORDERED that: 

A. Defendants and their officers, agents, directors, employees, salespersons, 

independent contractors, attorneys, corporations, subsidiaries, affiliates, 

successors, and assigns, and all other persons or entities in active concert or 

participation with them, who receive actual notice of this Order, whether acting 

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

any of them, shall, within two hours of receiving service of this Order, identify to 

Plaintiffs' counsel in writing: 

1. All of Defendants' business premises; 

Page 15 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 16 of 54

2. Any non-residence premises where any Defendants conduct business, 

debt-collection operations, or customer-service operations; 

3. Any non-residence premises where documents or electronically stored 

information related to the business, debt-collection operations, or 

customer-service operations of any Defendants are hosted, stored, or 

otherwise maintained, including but not limited to the name and location 

of any electronic data hosts; and 

4. Any non-residence premises where assets belonging to any Defendants are 

stored or maintained. 

B. Plaintiffs and their representatives, agents, and assistants shall have immediate 

access to: 

I. all business premises and storage facilities owned, controlled, or used by 

the Corporate Defendants; 

2. any offsite commercial mail boxes used by the Corporate Defendants; 

3. all electronic data storage devices owned, controlled, or used by the 

Corporate Defendants, including servers, computers, tablets, and mobile 

devices such as cell phones or smartphones; and 

4. any non-residence premises where documents related to the Defendants' 

businesses or assets belonging to any Defendants are stored or maintained. 

C. Plaintiffs are authorized to request the assistance of law enforcement as they deem 

necessary to effect service and peacefully implement this Order. The FTC may 

exclude Corporate Defendants and their agents and employees from the business 

premises during the immediate access. The purpose of the immediate access shall 

Page 16 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 17 of 54

be to inspect and copy the business and financial records of the Corporate 

Defendants, including forensic imaging of electronically stored information. 

Such business records include, but are not limited to, correspondence, contracts, 

emails, scripts, phone recordings, training materials, employee manuals, 

consumer complaints, voicemails, disciplinary records, and financial data. 

D. Plaintiffs and their representatives, agents, and assistants shall have the right to 

remove materials from the above-listed premises for inspection, and copying. 

Plaintiffs and their representatives, agents, and assistants may also photograph or 

video the inside and outside of all premises to which they are permitted access by 

this Order, and all documents and other items found on such premises. 

E. Plaintiffs shall return any removed materials to the Corporate Defendants within 

five business days, or such time as agreed upon by the Plaintiffs and the 

Corporate Defendants. 

F. The Corporate Defendants shall immediately provide Plaintiffs with any 

necessary means of access to documents and records, including, without 

limitation, the locations of the Defendants' business premises, keys and 

combinations to locks, computer access codes, including passwords, of all 

computers used to conduct the Corporate Defendants' business, and storage-area 

access information. 

G. If any documents, computers, or electronic data storage devices, including 

servers, computers, tablets, and mobile devices such as cell phones or 

smartphones, containing information related to the business practices or finances 

of the Corporate Defendants are at a location other than those listed herein, 

Page 17 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 18 of 54

including but not limited to the personal residences of the Individual Defendant, 

then, immediately upon notice of this Order, Defendants shall produce to the 

Plaintiffs all such documents, computers, or electronic data storage devices. In 

order to prevent the destruction of electronic data, upon service of this Order upon 

the Corporate Defendants, any computers or electronic data storage devices 

containing such information shall be powered down (turned off) in the normal 

course for the operating systems used on such devices and shall not be used until 

produced for copying and inspection, along with any codes needed for access. 

H. If any documents or electronically stored information that relate to the 

Defendants' business practices or the Corporate Defendants' finances are held by 

third parties, including Internet service providers, Defendants shall instruct any 

such provider to immediately transfer those documents or the electronically stored 

information to Plaintiffs, and shall execute any documents and take any other 

steps necessary to ensure that the documents or electronically stored information 

is transferred. 

I. Within forty-eight ( 48) hours of service of this Order, the Corporate Defendants 

shall produce to Plaintiffs a list of all agents, employees, officers, and those 

persons in active concert and participation with them, who have been associated 

or done business with the Corporate Defendants. 

J. Plaintiffs' access to the Defendants' documents pursuant to this provision shall 

not provide grounds for any Defendants to object to any subsequent request for 

documents served by Plaintiffs. 

Page 18 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 19 of 54

STAY OF ACTIONS 

X. IT IS FURTHER ORDERED that: 

A. Except by leave of this Court, Defendants and all other persons and entities be 

and hereby are stayed from taking any action to establish or enforce any claim, 

right, or interest for, against, on behalf of, in, or in the name of, the 

Corporate Defendants, any of their subsidiaries, affiliates, partnerships, assets, 

documents, including, but not limited to, the following actions: 

I. Commencing, prosecuting, continuing, entering, or enforcing any suit or 

proceeding, except that such actions may be filed to toll any applicable 

statute of limitations; 

2. Accelerating the due date of any obligation or claimed obligation; filing or 

enforcing any lien; tal<ing or attempting to take possession, custody, or 

control of any asset; attempting to foreclose, forfeit, alter, or terminate any 

interest in any asset, whether such acts are part of a judicial proceeding, 

are acts of self-help, or otherwise; or 

3. Executing, issuing, serving, or causing the execution, issuance, or service 

of, any legal process, including, but not limited to, attachments, 

garnishments, subpoenas, writs of replevin, writs of execution, or any 

other form of process whether specified in this Order or not. 

B. This Section does not stay: 

1. The commencement or continuation of a criminal action or proceeding; 

Page 19 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 20 of 54

2. The commencement or continuation of an action or proceeding by a 

govermnental unit to enforce such govermnental unit's police or 

regulatory power; 

3. The enforcement of a judgment, other than a money judgment, obtained in 

an action or proceeding by a govermnental unit to enforce such 

governmental unit's police or regulatory power; or 

4. The issuance to a Corporate Defendant of a notice of tax deficiency. 

PRESERVATION OF RECORDS AND TANGIBLE THINGS 

XI. IT IS FURTHER ORDERED that Defendants and their successors, assigns, officers, 

agents, employees, and attorneys, and those persons or entities in active concert or participation 

with any of them who receive actual notice ofthis Order, whether acting directly or through any 

corporation, subsidiary, division, or other device, are hereby temporarily restrained and enjoined 

from destroying, secreting, erasing, mutilating, defacing, concealing, altering, transferring, or 

otherwise disposing of, in any marmer, directly or indirectly: 

A. any documents, electronically stored information, or equipment of the Corporate 

Defendants; or 

B. any documents or electronically stored information that relate to the business 

practices, or business and personal finances, of Defendants or any entity directly 

or indirectly under the control of Defendants. 

These documents include but are not limited to: contracts; agreements; consumer files; 

consumer lists; consumer addresses and telephone numbers; correspondence, including emails; 

documents evidencing or referring to Defendants' services; debt-collection training materials; 

debt-collection scripts; data; computer tapes, disks, or other computerized records; books; 

Page 20 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 21 of 54

written or printed records; handwritten notes; telephone logs; "verification" or "compliance" 

recordings or other audio or video recordings; receipt books; invoices; postal receipts; ledgers; 

personal and business canceled checks and check registers; bank statements; appointment books; 

copies of federal, state, or local business or personal income or property tax returns; 

photographs; mobile devices; electronic storage media; accessories; and any other documents, 

records, or equipment of any kind that relate to the business practices or business of any 

Defendants or any other entity directly or indirectly under the control of any Defendants. 

LIMITED EXPEDITED DISCOVERY 

XII. IT IS FURTHER ORDERED that Plaintiffs are granted leave to conduct certain 

expedited discovery, and that, commencing with the time and date of this Order, in lieu of the 

time periods, notice provisions, and other requirements of Rules 26, 30, 34, and 45 of the Federal 

Rules of Civil Procedure, expedited discovery as to parties and non-parties shall proceed as 

follows: 

A. Plaintiffs may, upon as few as three (3) calendar days' notice, take the deposition 

of any person or entity, whether or not a party, in any judicial district, for the 

purpose of discovering: (1) the assets of any Defendants or their affiliates or 

subsidiaries; (2) the location of documents and other business records; and (3) 

compliance with this Order. Depositions may be conducted in person, by 

telephone, or by other remote electronic means. Deposition transcripts that have 

not been signed by the witness may be used at the preliminary injunction hearing 

in this matter. Provided that, notwithstanding Federal Rule of Civil Procedure 

30(a)(2), this Section shall not preclude any future depositions by Plaintiffs. 

Provided further, that any deposition taken pursuant to this Section shall be in 

Page 21 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 22 of 54

addition to, and not subject to, the presumptive limits on depositions set forth in 

Federal Rule of Civil Procedure 30(a)(2)(A). 

B. Plaintiffs may serve interrogatories for the purpose of discovering: (1) the assets 

of Defendants or their affiliates or subsidiaries; (2) the location of documents; and 

(3) compliance with this Order. Defendants shall respond within five (5) calendar 

days after Plaintiffs serve such interrogatories. Provided that, notwithstanding 

Federal Rule of Civil Procedure 33(a)(l), this Subsection shall not preclude any 

future interrogatories by Plaintiffs. 

C. Plaintiffs may, upon three (3) calendar days' notice to any Defendants and upon 

five (5) calendar days' notice to non-parties, including through the use of a Rule 

45 Subpoena, demand the production of documents from any person or entity, 

whether or not a Defendant, relating to: (!) the assets of Defendants or their 

affiliates or subsidiaries; (2) the location of documents; and (3) compliance with 

this Order. Provided that two (2) business days' notice shall be deemed sufficient 

for the production of any such documents that are maintained or stored only as 

electronic data. 

D. Plaintiffs are granted leave to subpoena documents immediately from any 

financial institution, account custodian, or other entity or person that holds, 

controls, or maintains custody of any account or asset of any Defendants, or has 

held, controlled, or maintained custody of any account or asset of any Defendants 

concerning the nature, location, status, and extent of Defendants' assets, and 

compliance with this Order, and the entity or person shall respond to such 

subpoena within five ( 5) business days after service. 

Page 22 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 23 of 54

E. For purposes of discovery pursuant to this Section, service shall be sufficient if 

made by personal delivery or by overnight courier. 

F. Plaintiffs may seek to prohibit any Defendants who fail to appear for properly 

noticed depositions or fail to comply with requests for production or inspection 

from introducing the evidence sought by Plaintiffs at any subsequent hearing. 

SERVICE OF THIS ORDER 

XIII. IT IS FURTHER ORDERED that copies of this Order may be served by personal 

delivery or overnight courier, or U.S. Express Mail, by agents and employees of Plaintiffs or any 

state or federal law enforcement agency or by private process server, on Defendants or any other 

persons or entities that may be subject to any provision of this Order. 

DISTRIBUTION OF ORDER BY DEFENDANTS 

XIV. IT IS FURTHER ORDERED that within three (3) calendar days after service of this 

Order, Defendants shall provide a copy of this Order to each of their agents, employees, 

directors, officers, subsidiaries, affiliates, attorneys, independent contractors, representatives, 

franchisees, and all persons in active concert or participation with Defendants. Within five (5) 

calendar days following this Order, Defendants shall provide Plaintiffs with an affidavit 

identifying the names, titles, addresses, and telephone numbers of the persons that Defendants 

have served with a copy of this Order in compliance with this provision. 

CORRESPONDENCE WITH PLAINTIFFS 

XV. IT IS FURTHER ORDERED that, for the purposes of this Order, because mail 

addressed to the FTC is subject to delay due to heightened security screening, all correspondence 

and service of pleadings on Plaintiff Federal Trade Commission shall be sent either via electronic 

transmission to Matthew J. Wilshire at mwilshire@ftc.gov or via Federal Express to: Matthew J. 

Page 23 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 24 of 54

Wilshire, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Mail Drop CC-10232, 

Washington, DC 20580; and service of pleadings on Plaintiff State ofNew York shall be sent 

either via electronic transmission at james.morrissey@ny.ag.gov or via Federal Express to James 

M. Morrissey, Assistant Attorney General, 350 Main Street, Ste. 300A, Buffalo, NY 14202; 

Facsimile: (716) 853-8414. 

ORDER TO SHOW CAUSE AND PRELIMINARY INJUNCTION HEARING 

XVI. IT IS FURTHER ORDERED, pursuant to Federal Rule of Civil Procedure 65(b), that 

Defendants shall appear on the 141

h day of October, 2015, at 9:30 a.m., at the United States 

Courthouse, 2 Niagara Square, Buffalo, New York, 14202, before the Honorable Richard J. 

Arcara, to show cause, if any there be, why this Court should not enter a preliminary injunction, 

pending final ruling on the complaint, against Defendants, enjoining them from further violations 

of the FTC Act, the FDCPA, New York Executive Law Section 63, and New York General 

Business Law Sections 349 and 601, and imposing such additional relief as may be appropriate. 

SERVICE OF PLEADINGS, EVIDENCE, WITNESS LISTS 

XVII. IT IS FURTHER ORDERED that: 

A. Defendants shall file any answering affidavits, pleadings, or legal memoranda 

with the Court and serve the same on counsel for Plaintiffs no later than five (5) 

business days prior to the preliminary injunction hearing in this matter. Plaintiffs 

may file responsive or supplemental pleadings, materials, affidavits, or 

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

than one (I) business day prior to the preliminary injunction hearing in this 

matter, provided that service shall be performed by personal or overnight 

delivery, facsimile, or e-mail, and documents shall be delivered so that they shall 

Page 24 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 25 of 54

be received by the other parties no later than 4 p.m. (EST) on the appropriate 

dates listed in this Subsection; 

B. The question of whether this Court should enter a preliminary injunction pursuant 

to Rule 65 of the Federal Rules of Civil Procedure enjoining the Defendants 

during the pendency of this action shall be resolved on the pleadings, declarations, 

exhibits, and memoranda filed by, and, if necessary, oral argument of, the parties. 

Live testimony shall be heard only on further order of this Court on motion filed 

with the Court and served on counsel for the other parties at least five (5) business 

days prior to the preliminary injunction hearing in this matter. Such motion shall 

set forth the name, address, and telephone number of each proposed witness, a 

detailed summary or affidavit disclosing the substance of each proposed witness' 

expected testimony, and an explanation of why the taking oflive testimony would 

be helpful to this Court. Any papers opposing a timely motion to present live 

testimony or to present live testimony in response to live testimony presented by 

another party, shall be filed with this Court and served on the other parties at least 

three (3) business days prior to the preliminary injunction hearing in this matter, 

provided that service shall be performed by personal or overnight delivery or by 

facsimile or e-mail, and documents shall be delivered so that they shall be 

received by the other parties no later than 4 p.m. (EST) on the appropriate dates 

listed in this Sub-section. 

DURATION OF ORDER 

XVIII. IT IS FURTHER ORDERED that the Temporary Restraining Order granted herein 

shall expire on the 20th day of October, 2015, at 2:00 o'clock p.m., unless within such time, the 

Page 25 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 26 of 54

Order, for good cause shown, is extended for an additional period not to exceed ten (14) calendar 

days, or unless it is further extended pursuant to Federal Rule of Civil Procedure 65. 

JURISDICTION 

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

all purposes until further order of the Court. 

r 

IT IS SO ORDERED, this 6th day of October, 2015, at.JPf!f o'clock,JliilllK./p.m. 

~o.~~ . RDJ.~ARA UNITEDSTA ~ DISTRICT JUDGE 

Page 26 of26 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 27 of 54

Attachment A 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 28 of 54

FEDERAL TRADE COMMISSION 

FINANCIAL STATEMENT OF INDIVIDUAL DEFENDANT 

Definitions and Instructions: 

1. Complete all items. Enter "None" or "N/A" ("Not Applicable") in the first field only of any item that does not apply 

to you. If you cannot fully answer a question, explain why. 

2. "Dependents" include your spouse, live-in companion, dependent children, or any other person, whom you or your 

spouse (or your children's other parent) claimed or could have claimed as a dependent for tax purposes at any 

time during the past five years 

3. "Assets" and "Liabilities" include ALL assets and liabilities, located within the United States or any foreign country 

or territory, whether held individually or jointly and whether held by you, your spouse, or your dependents, or held 

by others for the benefit of you, your spouse, or your dependents. 

4. Attach continuation pages as needed. On the financial statement, state next to the Item number that the Item is 

being continued. On the continuation page(s), identify the Item number(s) being continued. 

5. Type or print legibly. 

6 Initial each page in the space provided in the lower right corner. 

7. Sign and date the completed financial statement on the last page. 

Penalty for False Information: 

Federal law provides that any person may be imprisoned for not more than five years, fined, or both, if such person: 

(1) "in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the 

United States, knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or devise a material fact; 

makes any materially false, fictitious or fraudulent statement or representation; or makes or uses any false writing or 

document knowing the same to contain any materially false, fictitious or fraudulent statement or entry" (18 U.S.C. § 1001 ); 

(2) "in any ... statement under penalty of perjury as permitted under section 1746 of title 28, United States Code. 

willfully subscribes as true any material matter which he does not believe to be true" (18 U.S.C. § 1621); or 

(3) "in any ( .. statement under penalty of perjury as permitted under section 1746 of title 28, United States 

Code) in any proceeding before or ancillary to any court or grand jury of the United States knowingly makes any false 

material declaration or makes or uses any other information . . knowing the same to contain any false material 

declaration" (18 U.S.C. § 1623). 

For a felony conviction under the provisions cited above, federal law provides that the fine may be not more than the 

greater of (i) $250,000 for an individual or $500,000 for a corporation, or (ii) ifthe felony results in pecuniary gain to any 

person or pecuniary loss to any person other than the defendant, the greater of twice the gross gain or twice the gross 

loss. 18 U.S.C. § 3571. 

Federal Trade Commission Financial Statement of Individual Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 29 of 54

BACKGROUND INFORMATION 

Item 1. Information About You 

Full Name Social Security No. 

C-UITent Address of Primary ReSldence Driver's License No. l State Issued 

Phone Numbers Date of Birth: I I 

Home: ( I (mmlddlyyyy) 

Fax: ( I Place of Birth 

DRent Down From (Date): I I E-Mail Address 

(mm/dd/yyyy) . Internet Home Page 

Previous Addresses for:~st five·~ars (ifJeQuired·,_use·atlditional pag_es-:at en_d of fortil)' .. · . . Address From: I I Until: I I 

(rnrnlddlyyyy) (mm/dd/yyyy) 

DRent Down 

Address From: I I Until: I I 

. DRent Down 

Address From: I I Until· I I 

DRent Down 

Identify any other name(s) and/or social security number(s) you have used, and the time period(s) during which they 

were used: 

• Item 2. Information About Your Speuse or Live-In Cempanion . 

Spouse/Companion's Name Social Security No. Date of Birth 

I I 

AddreSs (if different trOm yours) .. . (mrnldd/vvvy) Phone Number Place of Birth 

.L ) 

DRent Down From (Date): I I 

(mrn/ddlyyyy) 

ldeniify any other name(s) and/or social security number(s) you have used. and the t\tyi!'! period(s) during which they were used: 

~ - ,,.,, -

•· 

Employer's Name and Address Job Title 

Years in Present Job Annual Gross SalaryMJages 

$ 

Item 3. Information About Your Previeus Spouse . 

. 

Name and Address Social Security No. 

Date of Birth 

I I 

i (mmlddlyyyy) 

Item 4. Contact Information (name and address of-clos:est·nving- reJafrve oth¢r tlia:n:your spou_se) .· 

.• 

Name and Address Phone Number 

( ) 

Initials: 

1 of 10 Federal Trade Commission Financial Statement of Individual Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 30 of 54

Item 5. ··.-' ' ' -- - _-' __ . ' ' ' -. . Information About Depenjlents (whether or not they resi<Jewith. you) 

Name and Address Social security No. Date of Birth 

I I 

(mmlddlyyyy) 

Relationship 

Name and Address Social Security No. Date of Birth 

I I 

(mmlddlyyyy) 

Relationship 

Name and Address Socia! Security No. Date of Birth 

I I 

(mmlddlyyyy) 

Relationship 

Name and Address Social Security No Date of Birth 

I I 

lmm/dd/Vvvv) 

Relationship 

ltem6. Empl9yrnent lnf<>rmation/Ernployment lricorne ·. .. 

Pro'°1;Cle the following tnfonrrationJor this year,to-date-and {or each of the previous five ·full Years·, fc;r each bllstness entity bf Which You Were a director·, 

·:officer, member,- partner, employee (inclu~ing· self-errlploytilent), a'gent, owner. shareholder, contractor, participant or consultant at any time during that 

period. "lncome" includes, but is not limited to, any: salary, commtssions, distributions, drfiWS, consulting fees, loans, loan payments, dividends, 

foyatties, and benefits fa~ which you did not pay (e.g., health insurance premJums, automobile lease or loan payments) received by you or anyone else 

·an your behalf. ,• .. ' .. 

Company Name and Address _,,_ Dates _l=mployed Income Received: Y-T-0 & 5 Prior Yrs. 

Year Income 

From (Month/Year) To (Month/Year) 

I I 20 $ 

Ownership Interest? D Yes D No $ 

Positions Held . From (Month/Year) To (Month/Year) $ - I I $ -- I I $ ---· I I $ 

Company Name and Address Dates Employed Income Received: Y-T-D & 5 Prior Yrs. 

Year Income 

From (Month/Year) To (Month/Year) 

I I 20 $ 

Ownership Interest? D Yes D No $ -

Positions Held From (Month/Year) To {Month/Year) $ -------·- I I $ 

I I $ 

I I $ 

Company Name and Address Dates Employed Income Received: Y-T-0 & 5 Prior Yrs. 

Year Income 

From (Montl1/Year) To (Month/Year) 

I I . 20 $ 

Ownership Interest? D Yes D No . $ 

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

I I $ 

I I $ 

I I $ 

Initials: 

2 Of 10 Federal Trade Commlsslon Financial Statement of Individual Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 31 of 54

Item 7. Pending Lawsuits Filed By or Against You or Your Spouse 

List all pending lawsuits that have been filed by or ag8lnst you or your spouse in any court or:before an administrative agency in the United States or in 

any foreign country or territory. Note: At Item 12, list lawsuits that resulted m final judgments or settlements in your favor. At Item 21, list lawsuits that 

resulted m final judgments or settlements against you . 

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

Proceeding Relief Requested Status or 

Disposition 

. ll:em 8. Slife Deposit BQxes . . . . . .. . ..·· • . . .· . , . . .. · Ltst all sa:fe deposit boxes, located within the lJnitett States or in _any foreign country or terrlttir)', whether -h~Q individually or jojntf¥·antf·W~~th¢:t't'fekji:fuy · 

you, your spous_e, or any of your dependerits, or held by others· f6r th-a benefit of :you .-,¥-out-sp6uSe, o(artY:9( Your dependents. _ · - - -

Name of Owner(s) Name & Address of Depository Institution Box No. Contents 

I 

Initials: 

3 of 10 Federal Trade Commission Financial Statement of Individual Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 32 of 54

. 

---- -_·; '·:' FINANCIAL INFORMATION 

REMINDER: When an item asks for information regarding your "assets" and ~llabillties" incfude ALL assets and !iabilitles, located within 

the United States or in any foreign country or territory, or institution, whether held individuaHy or jointly, and Whether held by you, your 

spouse, or any of your dependents, or held by others for the benefit of you, your spouse, or any of your-dependents. In addnion, provide 

all documents reauested. in 1tern 24 with vour corno!eteQ Financlal Staternent. 

ASSETS 

Item 9. Cash, Bank, and Money Market Accounts 

List cash on hand (as opposed to cash in bank accounts or other financial atc:OUnts) and ail bank accounts. money market accoo:nts, or other firianci,al 

accounts-, including but not limited to checking accounts, savings accounts, and certificates of deposit The- tenn'"cash on ha11ct"-inCludes but-is not 

limited to cash in the form of currency, uncashed checks, and money orders. 

a. Amount of Cash on Hand $ I Form of Cash on Hand 

b. Name on Account Name & Address of Financial Institution Account No. Current Balance 

' $ 

$ 

i $ 

i " ~i; 

$ 

. 

$ 

lte"' io. f't!bfict.y T(adad Securities . .. " .. " . " "•.· 

Ust alt publfq!y traded securities, tnc!udfr1g but nOt !imitei;l t-0, stocks, s_tock options-, corP'o_rate .tJonds,_n:rufu~f-fμti'dS, U.S. :g:overnm:enl;s-ecti~1tes _(tncfu.ding 

but not limited to treasury bills- and treasury notes), and state and municipal bonds. Also !ist-any U.S. saiJi!lYs b"ond·s_ 

Owner of Security Issuer I Type of Security I No of Units Owned 

··-- Broker House, Address I Broker Account No. " ·--··-

I 

Curre_nt-Fair Market Value 1 ~oan(s) Against Security 

$ 

Owner of Security Issuer I Type of Security l No. of Units Owned 

Broker House, Address Broker Account No. 

Current Fair Market Value ! ~oan(s) Against Security 

$ . .l, 

Owner of Security Issuer I Type of Security I No of Units Owned 

I ~-.---------·· __ ..,_, ______ ·--------------r Broker Account N.0 " 

Broker House, Address 

I --

I 

Current Fair Market Value ! ~oan(s) Against Security 

$ 

Initials: 

4 of 10 ~ederal Trade Commission Financial Statement of Individual Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 33 of 54

Item 11. Non-Public '!3usiness an.dl"ina®iaHmer.ests . . . . . . . . . . . . . . · List all non~pub!ic business_,and financial inte:resfs. inclu_dtnQ bLJt not limited to any interest tn_.a non-public corporation·, subchapter-S Corporatfon. 4lmited 

liability corporation ("LLC"), general or~im_ited p1.utn:ers!lip\_jOi})tV'entt1re.-,s·o1e,pf4piietotship,Jnte:rn;;ttiOJ'.1~1 bt:J$iriess corporationof¥5-etsonal!in-vesti"nent corporation, and oiror mineral tea·se_ · -- - - --· '- - ·.,, :: _ · · - " - - _ . 

Owner Entity's Name & Address Type of Business or Financial 

Interest (e.g., LLC, partn~rship) (e.g., self, spouse) 

Ownership 

% 

lf Officer, Director, Member 

or Partner, Exact Title 

Lt<!m 12. AmoQnts OWed tt>Yllu, Yol!rSpouse,.<>. rYourD~en .. tl~hf<> - -· . - - Debtor's Name & Address Date Obligation 

lncurred (Month!Y ear) 

I 

Original Amount Owed 

$ 

__ ymrent Amount Owed 

1 

;ayment Schedule 

Debtor's Teie·p·t;on_e_____________ Debtor"s Relationship to You 

Debtor's Name & Address Date Obligation 

Incurred (Month/Year) 

I 

Original Amount Owed 

$ 

Current Amount Owed 

$ 

Payment Schedule 

$ 

Debtor's Telephone Debtor's Relationship to You 

llem 13, Ute ll\1$urance Potietes .. ~ . . 

Li_s(all,Tife·J11s1:ifaflCe policies._(includin.g· efld_Owmenl p9liCie'.$') wit~ any c_as_t:i -~Ufren~_e:t ~altie.~_ · 

Insurance Company's Name, Address, & Telephone No. Beneficiary 

Insured 

Insurance Company's N?'me, Address, & Telephone No. Beneficiary 

Insured 

' 

.. 

Nature of Obligation (if the resU!t of a final court 

judgment or settlement, provide court name 

and docket number) 

Nature of Obligation (if the result of a final court 

judgment or settlement, provide court name 

and docket number) 

. . . ,.,,, .. •>' • ! '~· ! . ,, •• . ... ! ' '• :, 

Policy No. Face Value 

$ 

Loans Against Policy Surrender Value 

$ $ 

Policy No. Face Value 

$ 

Loans Against Polley Surrender Value 

$ $ 

! 

ltilm 14. Deferred income Arrang...,,ents · · • 

List all deferred lncome arrangements, including but not Hmited to, deferred annuities, pensions plans, proilt-'Shar'ihg Plans\ 401(k} Plans,. tRAs~ K,~ogtts, 

other retirement accounts, and college sayings plans {e.g., 529 Plans), 

Trustee or AdminiStrator"s Name, Address & Telephone No 

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

5 Of 10 

I Name on Account 

i 

I Date Established Type of Plan 

'... I I 

(mmlddlyyyy) 

Name on Account 

Date Established Type of Plan 

I I 

I Account No. 

Surrender Value before 

Taxes and Penalties 

$ 

I Account No. 

Surrender Value before 

Taxes and Penaltles 

$ 

Initials: 

Federal Trade Commission Financial Statement of Individual Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 34 of 54

Item 15. Pending Insurance Payments or Inheritances 

List any pending insurance payrilents. or inheritances owed to you. 

Type Amount Expected Date Expected (rnmldd/yyyy) 

$ I I ·-··----

s I I 

---- $ I I 

. 

Item 16. Vehicles 

List all car5, trucks, motorcycles, boats~. airplanes. and other vetli¢!es. 

Vehicle Type _I Year Registered Owner's Name Purchase Price Original Loan Amount Current Balance 

$ $ $ --·-.. -··-·----· ... -· Make Registration State & N·;:-- Account/Loan No. Current Value Monthly Payment 

$ $ 

Model Address of Vehicle"s Location Lender's Name and Address 

! 

Vehicle rype I Year I Registered Owner's Name Purchase Price Original Loan Amount Current Balance 

I $ $ $ 

Make I Registration State & No Account/Loan No. Current Value Monthly Payment 

! $ $ 

Model ! Address ofVehicle·s Location Lender's Name a.nd Address 

' 

Vehicle Type l Year Registered Owner's Name Purchase Price Original Loan Amount Current Balance. 

$ $ $ 

Make Registration State & No. Account'Loan No. Current Value Monthly Payment 

$ $ 

Model 

I 

Address of Vehicle's Location Lender's Name and Address 

I 

I ' 

Vehicle Type I Year I Registered Owner's Name I Purchase Price ! Original Loan Amount . Current Balance 

I $ I $ $ 

Make Registration State & No_ Account/Loan No. I ~urrcnt Value Monthly Payment 

$ 

Model Address of Vehicle's Location Lender's· Name and Address 

Item 17. Other Personal Property . 

. '" . · .. ·· 

Li.st all other personal property not llsted-ln Items 9-·16 by category, whether hefd'-for persOnaT use, Jnve~Jiient_,flr·iJ:Qy<o:tfie(reason_,,lncttfdlA§-b.ut nqt: 

limited to coins, stamp~, artwork. gemstones, jewelry, bul~ion, Other collectibles, copyrights, patents, and Other intetlectlial property. 

Property Category Name of Owner Property Location Acquisition Cost Current Value (e.g., artwork, jewelry) 

$ $ 

$ $ 

$ $ 

Initials 

6 of 10 Federal Trade Commission Financial Statement of Individual Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 35 of 54

. 

Item 18. Real Property 

List all real property interests (including any land contract) 

Property's Location Type of Property i Name(s) on Title or Contract and Ownership Percentages 

I 

I 

I 

Acquisition Date (rnm/dd/yyyy) I ~urchase Price I Current V~lue Basis of Valuation 

I I $ ... 

Lender's Name and Address Loan or Account No. Current Balance On First Mortgage or 

Contract 

$ 

Monthly Payment 

$ -----·-··-· Other Mortgage loan(s) {descn'be) ·1. Monthly Payment D Rental Unit 

r -~urrent Balance Monthly Rent Received 

$ 

Property's location Type of Property Name(s) on Title or Contract and Ownership Percentages 

Acquisition Date (mm/dd/yyyy) I ;urchase Price I ~urrent Value Basis of Valuation 

I I 

lender's Name and Address Loan or Account No. Current Balance On First Mortgage or 

Contract 

$ 

Monthly Payment 

$ 

Other Mortgage Loan(s) (describe) Monthly Payment 0 Rental Unit 

$ 

Current Balance Monthly Rent Received 

$ $ 

LIABILITIES . 

Item 19. Credit Cards 

List eac~- credit card aCfOun1 be!D by yoo .your spo~s~, .o~ ~-ottr -~~paRd~nts; and *1~--- OfhE}r:crettfi taJ-d(&t~tyqtfoY~r%pyjuse, .'br,,·you;r~d~j~ndfillfS-:USE:> "'~ Wbetfrer i~ed by a Llnrt-ed Statef .or forergn fi!!l;:_n~1a,i: instFJ:~~~~ :..· ~ .- -: r -' _ :.;.:_)~,-~z,:-'· -:,--- -- . ---< --- -. - . .- :~:<_:--- -'.~,/i--.> ~2;:<\ .-:;:_~, 

Name of Credit Card (e.g., Visa, Account No. Name(s) on Account Current Balance MasterCard, Department Store) 

. $ 

$ 

$ 

$ 

$ . 

Item 20. Taxes Payable 

Lis-tan taxes.-, such as income taxes or real ·estate taxes, owe;d by yci-u, your spouse, ory.Qur d_eP:eTJdentS. 

Type of Tax Amount Owed Year Incurred 

$ ~· ---- ··----

$ 

. $ 

Initials: 

7 of 10 Federal Trade Commission Financial Statement of Individual Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 36 of 54

Item 21. Other Amounts Owed by You, Your Spouse, or Your Dependents 

Ust at! other amounts; not listed elsewh_ere in this financial.statement owed.by yol.1, your s·pouse, or your-dependents. . ... 

Lender/Creditor's Name, Address, and Telephone No. Nature of Debt (if the result of a court judgment or settlement, provide court name and docket 

number) 

Date Liability Was Incurred 

I I 

{mm/dd/yyyy) 

Lender/Creditor's Relationship to You 

I 

~riginal Amount Owed i Current Amount Owed 

i $ 

I Payment Schedule 

Lender/Creditor's Nc~me, Address. and Telephone No. j Nature ot Debt (if the result of a court judgment or settlement, provide court name and docket 

1 number) 

Date Liability Was Incurred 

I I 

(mm/dd/yyyy) 

Lender/Creditor's Relationship to You 

I ~riginal Amount Owed Current:Amount Owed 

$ 

OTHER FINANCIAL INFORMATION 

I Payment Schedule 

Item 22. Trusts and Escr<:>ws · 

. 

. . 

· . 

Ust ai! funds and other asse~s that are beiryg h~!O iri. trUst<or ~scrow by ·any b·er-son. or entttyfor you, ·Y-Qμr§Po'~S_e; ·bf y01Jt· d.epe:f:ldent:s. ,Jnc1u,de· any 1~.a:i rBtainers being held on your behatf by legal c.ounset. Also list 'ail. fUnds or other asset& that·:a~e belrrg· heid_·m-trust or escroW by you, you-r spouse,--or yelir . 

dependents, for any person or entity. · 

Trustee or Escrow Agent's Name & Address Date Established 

lmm/dd/'"'""\ 

I I 

I I 

I I 

Granter Beneficiaries 

"'If the market value of any asset is unknown, descri.be-the asset and state its cost, if you know it. 

Item 23. Transfers of Assets 

Present Market Value of Assets~ 

$ 

$ 

$ 

List each Person or entity to whom. you have.tranSferre-d, i'n the aggregate·; more tb_an. .$5,0QOJn fuOOs or citt'i_er a&se-t's {:i'uring the prevlO:US fiV .. e·years:.by 

loan, ,gift, sale·, _or other transfer .(exclude o-rdir:ra:ry and necessary living_ and .b1sstne:s_.s- exp?-flS:~s. paid: to unrelated third:·parties). For each· s:tfch· ~rSo:t;h()r: 

ert!ltY-,.-S!a~ethe.JotaLatf!.QUnttransferred_durM14_thsit.e:~noa. ..- ·-:·- _ ._._ .·, . .- . _ ·._ .. ·-...• _.' ___ ,- .·, 

Transferee's Name, Address, & Relationship Property Transferred Aggregate Value* 

$ 

$ 

$ 

*If the market value of any asset is unknown, describe the asset and state lts cost, if you know it. 

Transfer Date 

(mm/dd/yyyy) 

I I 

I I 

I I 

Type of Transfer 

(e.g., Loan, Gift) 

Initials: 

8 of 10 Federal Trade Commission Financial Statement of Individual Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 37 of 54

Item 24. Document Requests 

Provide coi:nes of tt:i:e folloWiri~ dbcumen!f; ~-~ih)'G_l:fr_-~t5'.:fih~te}fFinC!ncJ~l_ Staterri-~r · 

Federal tax returns fi!ed during the last three years by or on behalf of you 1 your spouse, or your dependents. 

A!I applications for bank loans or other extensions of credit (other than credit cards) that you, your spouse, or your 

dependents have submltted within the last two years, including by obtaining copies from lenders if necessary. 

Item 9 For each bank account listed in Item 9, all account statements for the past 3 years. 

For each business entity listed in Item 11, provide (including by causing to be generated from accounting records) the 

Item 11 most recent balance sheet, tax return, annual income statement, the most recent year-to-date income statement, and al! 

general ledger files from account records. . 

All appraisals· that have been prepared for any property listed in Item 17, including appraisals done for insurance 

Item 17 · 1 purposes. You may exclude any category of property where the total appraised value of all property in that category is 

less than $2.000 

Item 18 All appraisals that have been prepared for real property listed in !tern 18. 

Item 21 Documentation for aff debts listed in Item 21. 

Item 22 A!I executed documents for any trust or escrow listed in Item 22. Also provide any appraisals, including insurance 

appraisals that have been done for any assets held by any such trust or in any such escrow. 

·~ ·.·/ ·<t . . . SUMMARY FINANCIAL SCHEDULES . 

Item 25. Combined Balance Sheet for You, Your Spouse, and Your Dependents . 

. . 

Assets Liabilities ·-··-~·"·-·· 

Cash on Hand (Item 9) $ Loans Against Publicly Traded Securities (Item 10) s 

Funds He19 ln Financial Institution~ (Item 9) $ Vehicles - Liens (Item 16) ·- $ -·-- ~- - U_:2:_ Government Securities (Item 10) _ $ ____ Real Property - Encumbrances (!tern 18) $_. _____ ·- ·-· --------··---·--- Publicly Traded Securities (Item 10) $ Credit Cards (Item 19) $ 

Non:Public Business and Financial l~~!ests (ltem 11) $ Taxes Payable (Item 20) $ 

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

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

Deferred Income Arrangements (Item 14) $ .. $ 

Vehicles (!tern 16) $ ';: .·. $ 

Other Personal Property (Item i7) $ $ ·--····- --., ---··-··-"""- ·--··-··· .. --------"'"' ______ . 

Real Property (Item 18) $ $ 

Other Assets (Itemize) $ ·-·-- $ $ ___ . .. 

$ $ 

$ $ 

Total Assets $ Total Liabilities $ 

Cambined Current Mof!thly lritQttte and .Expenses for You; Your Spouse, and Your Dependents .· lre.m 2s. 

Provide the current-monthly income and .... expenses--for you, .. your spouse, and ypur depend~n-~. Do not include credit card payments separately; rather, 

inc!u:de'credit card expencHtur-es in tt1e ctppr:op-riate:c~t-egori_es. ·. . . 

Income (State source of each item) Expenses 

Salary - After Taxes 

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

Fees, Commissions, and Royalties $ Property Taxes for Residence(s) $ Source: -· Interest Rental Property Expenses, lncludlng Mortgage Payments, Taxes, 

Source $ and Insurance $ 

Dividends and Cap1tal Gains -··--- Car Or Other Vehicle Lease or Loan Payments 

Source: $ $ 

Gross Rental Income Food Expenses 

Source: $ $ 

Profits from Sole Proprietorships $ Clothing Expenses $ Source: . 

DistrTbUtions "from· pa-rtnership-s:·-s·:corpora·t·i·an·s~- - -·- ------- lJtiiit\eS_, ----·----·-- - -

and LLCs $ $ 

Source: 

Initials: 

9 of 10 Federal Trade Commission Financial Statement of lndividua! Defendant 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 38 of 54

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

Distributions from Trusts and Estates 

I $ 

Medical Expenses, Including Insurance 

Source: $ 

Distributions from Deferred Income Arrangements Other Insurance Premiums 

Source $ I $ f-• ---

Social Security Payments Other-Transportation Expen-Ses $ $ 

Alimony/Child Support Received $ Other Expenses (Itemize) --

I 

Gambling Income $ $ 

Other Income (Itemize) $ 

$ . $ 

$ $ 

. $ $ 

Total Income $ Total Expenses $ 

. ' . . ... > '.·,, • • · . · .. : ~- '."'''' · . ,. t 

ATTACHMENTS . '· " • .. .. . 

Item 27. Documents Attached to this Firrancial Statement 

Ust all documents that~re being submitted with thls financial statement For any ltern 24· doccrments ttiata:re not attachE)d1 expjal;n·Wh_y: 

Item No. Document Relates To Description of Document . 

l ~ ' 

.. 

I am submitting this financial statement with the understanding that it may affect action by the Federal Trade 

Commission or a federal court. I have used my best efforts to obtain the information requested in this statement. The 

responses I have provided to the items above are true and contain all the requested facts and information of which I have 

notice or knowledge. I have provided all requested documents in my custody, possession, or control. I know of the 

penalties for false statements under 18 U.S.C. § 1001, 18 U.S.C. § 1621, and 18 U.S.C. § 1623 (five years imprisonment 

and/or fines). I certify under penalty of perjury under the laws of the United States that the foregoing is true and correct. 

Executed on: 

(Date) Signature 

10of10 Federal Trade Commission Financial Statement of Individual Defendant 

. 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 39 of 54

Attachment B 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 40 of 54

FEDERAL TRADE COMMISSION 

FINANCIAL STATEMENT OF CORPORATE DEFENDANT 

Instructions: 

I. Complete all items. Enter "None" or "Ni A" ("Not Applicable") where appropriate. If you cannot fully answer a 

question, explain why. 

2. The font size within each field will adjust automatically as you type to accommodate longer responses. 

3. In completing this financial statement, "the corporation" refers not only to this corporation but also to each of its 

predecessors that are not named defendants in this action. 

4. When an Item asks for information about assets or liabilities "held by the corporation," include ALL such assets 

and liabilities, located within the United States or elsewhere, held by the corporation or held by others for the 

benefit of the corporation. 

5. Attach continuation pages as needed. On the financial statement, state next to the Item number that the Item is 

being continued. On the continuation page(s), identify the Item number being continued. 

6. Type or print legibly. 

7. An officer of the corporation must sign and date the completed financial statement on the last page and initial 

each page in the space provided in the lower right comer. 

Penalty for False Information: 

Federal law provides that any person may be imprisoned for not more than five years, fined, or both, if such person: 

(!)"in any matter within the jurisdiction of any department qr ag~ncy of the United States knowingly and 

willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any fa]s·e, 

fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the 

same to contain any false, fictitious or fraudulent statement or entry" (18 U.S.C. § I 00 I); 

(2) "in any ... statement under penalty of perjury as permitted under section 1746 of title 28, United States Code, 

willfully subscribes as true any material matter which he does not believe to be true" ( 18 U.S.C. § 1621 ); or 

(3) "in any( ... statement under penalty of perjury as permitted under section 1746 of title 28, United States 

Code) in any proceeding before or ancillary to any court or grand jury of the United States knowingly makes any 

false material declaration or makes or uses any other information ... knowing the same to contain any false 

material declaration." (18 U.S.C. § 1623) 

For a felony conviction under the provisions cited above, federal law provides that the fine may be not more than the 

greater of(i) $250,000 for an individual or $500,000 for a corporation, or (ii) if the felony results in pecuniary gain to any 

person or pecuniary loss to any person other than the defendant, the greater of twice the gross gain or twice the gross l.oss. 

18 U.S.C. § 3571. 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 41 of 54

BACKGROUND INFORMATION 

General Information 

Corpqration's Full Name_ . 

Primary Business Address From (Date) _____ _ 

Telephone No. -·------------------Fax No.--------~----

E-Mail Address ___________ Internet Home Page __________ _ 

All other current addresses & previous addresses for past five years, including post office boxes and mail drops: 

Address From/Until ________ _ 

Address ______ From/Until _______ _ 

Address From/Until --------------- ----

All predecessor companies for past five years: 

Name & Address-------------------------- From/Until _____ _ 

Name & Address From/Until -------------------------- -------

Name & Address ----------------- ________ From/Until _____ _ 

Item 2. Legal Information 

Federal Taxpayer ID No. ___________ State & Date oflncorporation ____ _ 

State Tax ID No.---·-------------- State------·---- Profit or Not For Profit ______ . ___ _ 

Corporation's Present Status: Active Inactive Dissolved _______ _ 

If Dissolved: Date dissolved ____________ By Whom ________________ _ 

Reasons _____ _ 

Fiscal Year-End (Mo./Day) _ Corporation's Business Activities ---- --------------

Item 3. Registered Agent 

Name of Registered Agent _______________ _ 

Adqress ________________________ _ Telephone No. _______ _ 

Page 2 Initials ___ _ 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 42 of 54

Principal Stockholders 

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

Name & Address o/o Owned 

Item 5. Board Members 

List all members of the corporation's Board of Directors. 

Name & Address % Owned Term (From/Until) 

---------- ----~---------- ---~-

Item 6. Officers 

List all of the corporation's officers, including de facto officers (individuals with significant management responsibility 

whose titles do not reflect the nature of their positions). 

Name & Address %Owned 

____ ............... _,,, ________ _ 

Page 3 Initials~---
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 43 of 54

Item 7. Businesses Related to the Corporation 

List all corporations, partnerships, and other business entities in which this corporation has an ownership interest. 

Name & Address Business Activities o/o Owned 

··- ------ ·-----·-------------------------------·-------------------

State which of these businesses, if any. has ever transacted business with the corporation ----~------------

Item 8. Businesses Related to Individuals 

List all corporations, partnerships, and other business entities in which the corporation's principal stockholders, board 

members, or officers (i.e., the individuals listed in Items 4 - 6 above) have an ownership interest. 

·Individual's Name Business Name & Address Business Activities % Owned 

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

State which of these businesses, if any, have ever transacted business with the corporation __________ _ 

Item 9. Related Individuals 

List all related individuals with whom the corporation has had any business transactions during the three previous fiscal 

years and current fiscal year-to-date. A ''.related individual" is a spouse, sibling, parent, or child of the principal 

stockholders, board members, and officers (i.e., the individuals listed in Items 4 - 6 above). 

Name and Address Relationship Business Activities 

Page 4 Initials 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 44 of 54

Item JO. Outside Accountants 

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

Firm Name Address CPA/PA? 

Item I I. Corporatiou's Recordkeeping 

List all individuals within the corporation with responsibility for keeping the corporation's financial books and records for 

the last three years. 

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

----· --·-----------------··-------------

Item 12. Attorneys 

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

Firm Name Address 

Page 5 Initials ----
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 45 of 54

Item 13. Pending Lawsnits Filed by the Corporation 

List all pending lawsuits that have been filed by the corporation in court or before an administrative agency. (List 

lawsuits that resulted in final judgments or settlements in favor of the corporation in Item 25). 

Opposing Party's Name & Address ___________________ _ 

Court's Name & Address 

Docket No.---------- Relief Requested __ _ ___ Nature of Lawsuit 

_______________ Stfilus ________________________ _ 

Opposing Party's Name & Address _____________________________ _ 

Court's Name & Address ____________________________________ _ 

Docket No. ____ ----Relief Requested __ _ Nature of Lawsuit ---- ~--------

·--·----------------····---Status. 

Opposing Party's Name & Address_ 

Court's Name & Address ____________ _ 

Docket No. ________ Relief Requested. __________ Nature of Lawsuit ________ _ 

-----status 

Opposing Party's Name & Address _____ _ 

Court's Name & Address __ _ 

Docket No. ----------Relief Requested___ _ ____ Nature of Lawsuit 

Status ----

Opposing Party's Name & Address ______________________________ _ 

Court's Name & Address ------------

Docket No. ____ Relief Requested _________ Nature of Lawsuit ________ _ 

Status -·---------------------· ----------~-- ----~---

Opposing Party's Name & Address ____ , _____________ _ 

Court's Name & Address ___ _ 

Docket No. ________ Relief Requested. __________ Nature of Lawsuit ________ _ 

________________ Stmus ________________________ _ 

Page 6 Initials 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 46 of 54

Item 14. Current Lawsuits Filed Against the Corporation 

List all pending.lawsuits that have been filed against the corporation in court or before an administrative agency. (List 

lawsuits that resulted in final judgments, settlements, or orders in Items 26 - 27), 

Opposing Party's Name & Address 

Court's Name & Address. __ _ 

Docket No. ________ Relief Requested, _________ Nature of Lawsuit ________ _ 

________________ Status ________________________ _ 

Opposing Party's Name & Address _____________________________ _ 

Court's Name & Address 

Docket No. ____________ Relief Requested ____ _ Nature of Lawsuit ___ __ 

"Status __________ _ 

Opposing Party's Name & Address _____________________________ _ 

Court's Name & Address, _________________________________ _ 

Docket No. ________ Relief Requested. _________ Nature of Lawsuit. ________ _ 

___ Status 

Opposing Party's Name & Address ____________ _ 

Court's Name & Address _________________ _ 

Docket No. _____________ Relief Requested, _________ Nature of Lawsuit 

________________ Status. _______________________ _ 

Opposing Party's Name & Address _____________________________ _ 

Court's Name & Address 

Docket No. _____________________ Relief Requested ___________________ Nature of Lawsuit _________ _ 

Status -------· 

Opposing Party's Name & Address __________ _ 

Court's Name & Address. _____________ ----------------------

Docket No .. ________ Relief Requested. _________ Nature of Lawsuit. ________ _ 

_________________ Status. _______________________ _ 

Page 7 Initials ___ _ 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 47 of 54

Item 15. Bankruptcy Information 

List all state insolvency and federal bankruptcy proceedings involving the corporation. 

Commencement Date Termination Date Docket No. --------- ------· 

If State Court: Court & County ___________ If Federal Court: District ___________ _ 

Disposition----------~----------------------------

Item 16. Safe Deposit Boxes 

List all safe deposit boxes, located within the United States or elsewhere, held by the corporation, or held by others for the 

benefit of the corporation. On a separate page, describe the contents of each box. 

Owner's Name Name & Address of Depository Institution Box No. 

FINANCIAL INFORMATION 

REMINDER: When an Item asks for information about assets or liabilities "held by the corporation," include 

ALL such assets and liabilities, located within the United States or elsewhere, held by the corporation or held by 

others for the benefit of the corporation. 

Item 17. Tax Returns 

List all federal and state corporate tax returns filed for the last three complete fiscal years. Attach copies of all returns. 

Federal/ Tax Year Tax Due Tax Paid Tax D11e Tax Paid Pregarer's Name 

State/Both Federal Federal State State 

$ $ $ $ 

$ $ $ $ 

$ $ $ $ -----

Page 8 Initials ___ _ 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 48 of 54

Item 18. Financial Statements 

List all financial statements that were prepared for the corporation's last three complete fiscal years and for the current 

fiscal year-to-date. Attach copies of all statements, providing audited statements if available. 

Year Balance Sheet Profit & Loss Statement Cash Flow Statement Changes in Owner's Equity Audited? 

. ·-·----.. --.. ------ -----·-·------------------------------------

------------·-· ----

Item 19. Financial Summary 

For each of the last three complete fiscal years and for the current fiscal year-to-date for which the corporation has not 

provided a profit and loss statement in accordance with Item 18 above, provide the following summary financfal 

information. 

Current Year-to-Date 1 Year Ago 2 Years Ago 3 Years Ago 

Gross Revenue $ $ __________ _ $ $ 

Expenses $ $ ____________ - $ ________ _ $ _________ _ 

Net Profit After Taxes $ $ $ ________ _ $ _______ ----

Payables $ 

Receivables $ --------

Item 20. Cash, Bank, and Money Market Accounts 

List cash and all bank and money market accounts, including but not limited to, checking accounts, savings accounts, and 

certificates of deposit, held by the corporation. The term "cash" includes currency and uncashed checks. 

Cash on Hand $ ____________________ Cash Held for the Corporation's Benefit$ 

Name & Address of Financial Institution Signator(s) on Account Account No. Current 

Balance 

$ ___ _ 

________________________________________ $ ____ _ 

_______________ $ ____ _ 

$ ____ _ 

Page 9 Initials 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 49 of 54

Item 21. Government Obligations and Publicly Traded Securities 

List all U.S. Government obligations, including but not limited to, savings bonds, treasury bills, or treasury notes, held by 

the corporation. Also list all publicly traded securities, including but not limited to, stocks, stock options, registered and 

bearer bonds, state and municipal bonds, and mutual funds, held by the corporation. 

Issuer _____ Type of Security/Obligation ______________ _ 

No. of Units Owned Current Fair Market Value$ ---- ··-----Maturity Date ______ _ 

Issuer ______ -----·-------------------Type of Security/Obligation ___________ _ 

No. of Units Owned Current Fair Market Value$ ---- Maturity Date _______ _ 

Item 22. Real Estate 

List all real estate, including leaseholds in excess of five years, held by the corporation. 

Type of Property ___ ·--··-··--·-···------ Property's Location ______________ _ 

Name(s) on Title and Ownership Percentages 

Current Value $ ----~--"·-·----

Loan or Account No. __ _ 

Lender's Name and Address ------------

Current Balance On First Mortgage$ _______ Monthly Payment$ _____ _ 

Other Loan(s) (describe) ___ _ Current Balance $ ------- --------

Monthly Payment$ ______________ Rental Unit? Monthly Rent Received $ 

Type of Property--·--·------------- Property's Location ______________ _ 

Name(s) on Title and Ownership Percentages ____ _ 

Current Value $ 

--------- Loan or Account No. -~----------

Lender's Name and Address ________________________________ _ 

Current Balance On First Mortgage $ Monthly Payment$ ------ ------

Other Loan(s) (describe) _________ _ Current Balance $ --------

Monthly Payment$ Rental Unit? --- -----·· Monthly Rent Received $ ______ _ 

Page JO Initials ___ _ 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 50 of 54

Item 23. Other Assets 

List all other property. by category, with an estimated value of$2,500 or more, held by the corporation, including but not 

limited to, inventory, machinery, equipment, furniture~ vehicles, customer lists, computer software, patents, and other 

intellectual property. 

Property Catcgorv Property Location Acquisition 

Cost 

---------------------- ---- ----------------------------- $ ____ $ ___ _ 

------------------- ' -- -----------' --------------- $ ___ $ ________ _ 

----··------·--"··-------------- ---------··----- ----$ _________ $ ____ _ 

_____ $ _____ $ ___ _ 

_____________________________________ $ _____ $ ____ _ 

____________ $ ____ $ ___ _ 

Item 24. Trusts and Escrows 

List all persons and other entities holding funds or other assets that are in escrow or in trust for the corporation. 

Trustee or Escrow Agent's 

Name & Address 

Description and Location of Assets Present Market 

Value of Assets 

__________________________________ $ 

____________________________________ $ ________ _ 

$ ______ _ 

' --- ------- ----------- --- ------- --------------- ------$ ____ ---------

' -------------- --- ----------------------- -- ---- ------ $ _______ -------

$ -- ------------------------~--·----... ·---·---- ---- ------------- --

___________________________________ $ _______ _ 

Page 11 Initials ___ _ 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 51 of 54

Item 25. Monetary Judgments and Settlements Owed To the Corporation 

List all monetary judgments and settlements, recorded and unrecorded, owed to the corporation. 

Opposing Party's Name & Address_ 

Docket No. ------ Court's Name & Address ____________________ _ 

Nature of Lawsuit ____________ Date ofJudgment ______ Amount$ _____ _ 

Opposing Party's Name & Address ________ _ 

Court's Name & Address Docket No. ---~------ ------

Nature of Lawsuit _____ _ ----Date of Judgment Amount$ ------- ------

Item 26. Monetary Judgments and Settlements Owed By the Corporation 

List all monetary judgments and settlements, recorded and unrecorded, owed by the corporation. 

Opposing Party's Name & Address ____________________________ ~ 

Court's Name & Address _________________________ _ Docket No. _____ _ 

Date _________ Amount$ _____ _ 

Opposing Party's Name & Address _______ _ 

Court's Name & Address -----~---- --~-------- Docket No. ____ _ 

Nature of Lawsuit Date of Judgment -------------- Amount$ ------ ------

0 pp o sing Party's Name & Address _____________________________ _ 

Court's Name & Address 

Nature of Lawsuit 

____________ ___________ Docket No. _____ _ 

--- ________ Date of Judgment _______ Amount$ _____ _ 

Opposing Party's Name & Address _________________________ _ 

Court's Name & Address Docket No. ___ _ 

Nature of Lawsuit _______________ Date of Judgment _______ Amount$ _____ _ 

Opposing Party's Name & Address _____________________________ _ 

Court's Name & Address ------ ________________ Docket No. _____ _ 

Nature of Lawsuit_ _________ Date of Judgment _________ Amount$ 

Page 12 Initials ----
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 52 of 54

Item 27. Government Orders and Settlements 

List all existing orders and settlements between the corporation and any federal or state government entities. 

Name of Agency __________ ~ __________ Contact Person ____________ _ 

Address __________________ _ ----------·Telephone No. ______ _ 

Agreement Date _______ Nature of Agreement 

Item 28. Credit Cards 

List all of the corporation"s credit cards and store charge accounts and the individuals authorized to use them 

Name of Credit Card or Store Names of Authorized Users and Positions Held 

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

-------------------------------------------- ---·~--·---------- -------

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

----- -----·----·---------- ------------

Item 29. Compensation of Employees 

List all compensation and other benefits received from the corporation by the five most highly compensated employees, 

independent contractors, and consultants (other than those individuals listed in Items 5 and 6 above), for the two previous 

fiscal years and current fiscal year-to-date. "Co1npensation" includes, but is not limited to, salaries, commissions, 

consulting fees. bonuses, dividends, distributions, royalties, pensions, and profit sharing plans. "Other benefits" include, 

but are not limited to, loans. Joan payments, rent, car payments, and insurance premiums, whether paid directly to the 

individuals, or paid to others on their behalf. 

Name/Position Current Fiscal 

Year-to-Date 

____________ $ _____ $ 

1 Year Ago 2 Years Ago Compensation or 

Type of Benefits 

___ $ __________________ _ 

______________ $ ______ $ _____ $ ___________________ _ 

--------- --- ·-------- ·--·-- $ _____ $ ____ $ __ _ 

$ -------- $ __ ----- $ ______ _ 

$ $ -·-- $ ______________ _ 

Page 13 Initials __ _ 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 53 of 54

Item 30. Compensation of Board Members and Officers 

List all compensation and other benefits received from the corporation by each person listed in Items 5 and 6, for the 

current fiscal year-to-date and the two previous fiscal years. "Compensation" includes, but is not limited to, salaries, 

commissions, consulting fees, dividends, distributions, royalties, pensions, and profit sharing plans. "Other benefits" 

include, but are not limited to, loans, loan payments, rent, car payments, and insurance premiums, whether paid directly to 

the individuals, or paid to others on their behalf. 

Name/Position 

____ $ 

Current Fiscal I Year Ago 

Year-to-Date 

---- $ _______ $ 

2 Years Ago Compensation or 

Type of Benefits 

____________ $ _____ $ ___ $ ___________________ _ 

$ _____ $ ___ $ ________________ _ 

$ _______ $ _____ $ __ 

$ _____ $ _______ $ _______________ _ 

_____________ $ ______ $ _______ $ __________________ _ 

$ __ _ $ ____ $ _____ _ 

___________ $ _____ $ _____ $ ________________ _ 

Item 31. Transfers of Assets Including Cash and Property 

List all transfers of assets over $2,500 made by the corporation, other than in the ordinary course of business, during the 

previous three years, by loan, gift, sale, or other transfer. 

Transferee's Name. Address. & Relationship Property 

Transferred 

---~--~--~--------- ----- $ 

Aggregate 

Value 

Transfer 

Date 

Type of Transfer 

(e.g., Loan, Gift) 

------------------------ ____ $ __________________ _ 

$ __________________ _ 

------------------------ ---- $ _____ _ 

$ 

Page 14 Initials ___ _ 
Case 1:15-cv-00875-RJA Document 12 Filed 10/06/15 Page 54 of 54

Item 32. Documents Attached to the Financial Statement 

List all documents that are being submitted with the financial statement. 

Item No. Document Description of Document 

Relates To 

-- -------------------- ------------.. -·--------------·--·----------

I am submitting this financial statement with the understanding that it may affect action by the Federal Trade 

Commission or a federal court. I have used my best efforts to obtain the information requested in this statement. The 

responses I have provided to the items above are true and contain all the requested facts and information of which I have 

notice or knowledge. 1 have provided all requested documents in my custody, possession, or control. I know of the 

penalties for false statements under 18 U.S.C. § 1001, 18 U.S.C. § 1621, and 18 U.S.C. § 1623 (five years imprisonment 

and/or fines). I certify under penalty of perjury under the laws of the United States that the foregoing is true and correct. 

Executed on: 

(Date) Signature 

Corporate Position 

Page 15 Initials ----