1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2548 Page 1 of 26 

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

FEDERAL TRADE COMMISSION 

Plaintiff, 

v. 

AUTOMATORS LLC, et al., 

Defendants, 

PEREGRINE WORLDWIDE, LLC, 

Relief Defendant. 

 Case No. 23-cv-1444-BAS-LSC 

ORDER: 

(1) GRANTING JOINT MOTION 

TO ENTER STIPULATED 

PRELIMINARY INJUNCTION 

(ECF No. 47); and 

(2) VACATING PRELIMINARY 

INJUNCTION HEARING 

On August 8, 2023, Plaintiff, the Federal Trade Commission (“FTC”), filed its 

Complaint for Permanent Injunction, Monetary Relief, and Other Relief under Sections 

13(b) and 19 of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 53(b), 57b, 

the FTC’s Trade Regulation Rule entitled “Disclosure Requirements and Prohibitions 

Concerning Business Opportunities” (“Business Opportunity Rule”), 16 C.F.R. Part 437, 

as amended, the Consumer Review Fairness Act of 2016 (“CRFA”), 15 U.S.C. § 45b 

(Docket No. 1), and moved, under Fed. R. Civ. P. 65(b), for a temporary restraining order, 

asset freeze, other equitable relief, and an order to show cause why a preliminary injunction 

1 
 

 

 

 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2549 Page 2 of 26 

should not issue against Defendants and Relief Defendant. (TRO App., ECF No. 5-1.) The 

Court issued an ex parte Temporary Restraining Order against Defendants and Relief 

Defendant on August 11, 2023, which includes an asset freeze, appointment of a temporary 

receiver over the Receivership Entities (as defined below), and other equitable relief 

(Docket No. 8). 

On September 8, 2023, the FTC moved jointly with Automators LLC, also d/b/a 

Automators AI and Ecom Skool; Empire Ecommerce LLC; Onyx Distribution LLC; 

Stryder Holdings LLC; Pelenea Ventures LLC; Roman Cresto; John Cresto; and Andrew 

Chapman (referred to above, collectively, as “Defendants”); and Peregrine Worldwide, 

LLC (referred to above as “Relief Defendant”) for the entry of a preliminary injunction 

(“P.I.”) as to Defendants and Relief Defendant. (ECF No. 47.) 

LEGAL STANDARD 

A preliminary injunction generally is considered “an extraordinary remedy that may 

only be awarded upon a clear showing that the plaintiff is entitled to such relief.” Winter 

v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 22 (2008). To obtain a preliminary injunction, 

the movant must show: (1) a likelihood of success on the merits; (2) a likelihood of 

irreparable harm to the movant in the absence of preliminary relief; (3) that the balance of 

equities tips in favor of the moving party; and (4) that an injunction is in the public interest. 

Winter, 555 U.S. 7 at 20. When the government is a party, the final two factors merge into 

a single inquiry. Drakes Bay Oyster Co. v. Howell, 747 F.3d 1073, 1092 (9th Cir. 2014) 

(citing Nken v. Holder, 556 U.S. 418, 435 (2009)). 

BACKGROUND AND FINDINGS 

The FTC filed a substantial volume of declarations and exhibits in support of its 

TRO Application, in addition to detailed allegations in its Complaint. (See ECF Nos. 5-2 

to 5-24.) The Court reviewed those materials in connection with the FTC’s TRO 

Application, and granted the FTC’s request on that basis. (ECF No. 8.) The P.I. that the 

parties seek by their Joint Motion also is premised largely upon those materials. (See ECF 

2 
 

 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2550 Page 3 of 26 

No. 47.) Based on those materials, and the Joint Motion itself, the Court makes the ensuing 

findings for the limited purpose of the instant P.I. only. 

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

good cause to believe that it will have jurisdiction over all parties hereto and that venue in 

this district is proper. 

B. Defendants and Relief Defendant consent to the entry of this Stipulated 

Preliminary Injunction, but reserve all rights to contest or challenge the authority of the 

FTC to seek and this Court to award any further relief sought by the FTC. 

C. The FTC alleges that there is good cause to believe that Defendants have 

engaged in and are likely to engage in acts or practices that violate Section 5(a) of the FTC 

Act, 15 U.S.C. § 45(a), the Business Opportunity Rule, and the CRFA and that the FTC is 

therefore likely to prevail on the merits of this action. 

D. The FTC alleges that there is good cause to believe that immediate and 

irreparable harm will result from Defendants’ ongoing violations of the FTC Act, the 

Business Opportunity Rule, and the CRFA unless Defendants continue to be restrained and 

enjoined by order of this Court. 

E. The FTC alleges that there is good cause to believe that immediate and 

irreparable damage to the Court’s ability to grant effective final relief for consumers – 

including monetary restitution, rescission, or refunds – will occur from the sale, transfer, 

destruction or other disposition or concealment by Defendants or Relief Defendants of their 

assets or records, unless Defendants and Relief Defendants continue to be restrained and 

enjoined by order of this Court. 

F. The FTC alleges that good cause exists for the Court to order: (1) the 

continued appointment of a Receiver over the Receivership Entities; (2) an asset freeze 

over all the assets of the Defendants; and (3) the ancillary relief described below. 

G. This Order is in the public interest. 

3 
 

 

 

 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2551 Page 4 of 26 

H. This Court has authority to issue this Order pursuant to Sections 13(b) and 19 

of the FTC Act, 15 U.S.C. §§ 53(b) and 57b; Fed. R. Civ. P. 65; and the All Writs Act, 28 

U.S.C. § 1651. 

I. No security is required of any agency of the United States for issuance of a 

temporary restraining order. Fed. R. Civ. P. 65(c). 

DEFINITIONS 

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

A. “Asset” means any legal or equitable interest in, right to, or claim to, any 

property, wherever located and by whomever held. 

B. “Assisting Others” includes the following: 

1. performing customer service functions, including receiving or responding to 

consumer complaints; 

2. formulating or providing, or arranging for the formulation or provision of, any 

advertising or marketing material, including any telephone sales script, direct 

mail solicitation, or the design, text, or use of images of any Internet website, 

email, or other electronic communication; 

3. formulating or providing, or arranging for the formulation or provision of, any 

marketing support material or service, including web or Internet Protocol 

addresses or domain name registration for any Internet websites, affiliate 

marketing services, or media placement services; 

4. providing names of, or assisting in the generation of, potential customers; 

5. performing marketing, billing, payment processing, or payment services of 

any kind; or 

6. acting or serving as an owner, officer, director, manager, or principal of any 

entity. 

C. “Corporate Defendants” means Automators LLC, also d/b/a Automators AI 

and Ecom Skool; Empire Ecommerce LLC; Onyx Distribution LLC; Stryder Holdings 

4 
 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2552 Page 5 of 26 

LLC; Pelenea Ventures LLC, and each of their subsidiaries, affiliates, successors, and 

assigns. 

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

Defendants, individually, collectively, or in any combination. 

E. “Defendants’ Products” means products and services offered by Defendants, 

including Defendants’ own products and services, and products and services of third parties 

for whom Defendants advertise. 

F. “Document” is synonymous in meaning and equal in scope to the usage of 

“document” and “electronically stored information” in Federal Rule of Civil Procedure 

34(a), Fed. R. Civ. P. 34(a), and includes writings, drawings, graphs, charts, photographs, 

sound and video recordings, images, Internet sites, web pages, websites, electronic 

correspondence, including e-mail and instant messages, contracts, accounting data, 

advertisements, FTP Logs, Server Access Logs, books, written or printed records, 

handwritten notes, telephone logs, telephone scripts, receipt books, ledgers, personal and 

business canceled checks and check registers, bank statements, appointment books, 

computer records, customer or sales databases and any other electronically stored 

information, including Documents located on remote servers or cloud computing systems, 

and other data or data compilations from which information can be obtained directly or, if 

necessary, after translation into a reasonably usable form. A draft or non-identical copy is 

a separate document within the meaning of the term. 

G. “Electronic Data Host” means any person or entity in the business of storing, 

hosting, or otherwise maintaining electronically stored information. This includes, but is 

not limited to, any entity hosting a website or server, and any entity providing “cloudbased” electronic storage. 

H. “Earnings Claim(s)” means any oral, written, or visual representation to a 

consumer, prospective purchaser, or investor that conveys, expressly or by implication, a 

specific level or range of actual or potential sales, or gross or net income or profits, 

revenues, financial gains, percentage gains, or return on investment. Earnings Claims 

5 
 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2553 Page 6 of 26 

include, but are not limited to: (1) any chart, table, or mathematical calculation that 

demonstrates possible results based upon a combination of variables; (2) any statements 

from which a consumer, prospective purchaser, or investor can reasonably infer that he or 

she will earn a minimum level of income (e.g., “earn enough money to buy a Porsche,” 

“earn a six-figure income,” or “earn your investment back within one year”); (3) references 

to quitting one’s job, not having to work, or living off income from online sales; (4) 

references to increased purchases or savings, including a home, cars, boats, vacations, or 

travel; (5) any statements, claims, success stories, endorsements, or testimonials about the 

performance or profitability of representatives, endorsers, instructors or customers; and (6) 

any representation, even hypothetical, of how much money a consumer could or would 

earn. 

I. “General Media” means all print, electronic, internet, social networking, 

radio, and other media outlets. 

J. “Individual Defendant(s)” means Roman Cresto; John Cresto; and Andrew 

Chapman, individually, collectively, or in any combination. 

K. “Person” means any natural person or any entity, corporation, partnership, or 

association of persons. 

L. “Receiver” means the temporary receiver appointed in Section XI of this 

Order and any deputy receivers that shall be named by the temporary receiver. 

M. “Receivership Entities” means Corporate Defendants and Relief Defendant, 

as well as any other entity that has conducted any business related to the marketing or sale 

of Defendants’ Products, including receipt of Assets derived from any activity that is the 

subject of the Complaint in this matter, and that the Receiver determines is controlled or 

owned by any Defendant. 

N. “Relief Defendant” means Peregrine Worldwide, LLC and each of its 

subsidiaries, affiliates, and assigns. 

6 
 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2554 Page 7 of 26 

ORDER 

I. PROHIBITED BUSINESS ACTIVITIES 

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

affiliate marketers, employees, and attorneys, and all other persons in active concert or 

participation with them, who receive actual notice of this Order by personal service or 

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

marketing, promoting, or offering for sale of any goods or services, are preliminarily 

restrained and enjoined from: 

A. Making any Earnings Claims or Assisting Others in making any Earnings 

Claims, unless the Earnings Claim is non-misleading, and, at the time the Earnings Claims 

are made, Defendants (1) have a reasonable basis for the claim; (2) have in their possession 

written materials that substantiate the claimed earnings and that the claimed earnings are 

typical for consumers similarly situated to those to whom the claim is made; and (3) make 

the written substantiation for Earnings Claims available upon request to the consumer, 

potential purchaser or investor, the Receiver, and the FTC; 

B. Failing to provide any consumer, potential purchaser, or investor with 

disclosure documents in the form and manner required by 16 C.F.R. §§ 437.2, 437.3(a)(1)-

(5), and 437.4; 

C. Misrepresenting or Assisting Others in misrepresenting, expressly or by 

implication, that Defendants’ Products: 

1. will allow purchasers to earn a specific level or range of actual or potential 

sales, or gross or net income or profits, revenues, financial gains, percentage gains, 

or return on investment with little to no effort on their part; and 

2. will use Artificial Intelligence (AI) machine-learning to maximize revenues; 

D. Making or Assisting Others in making false or unsubstantiated testimonials 

about Defendants, Defendants’ Products, or companies advertised by Defendants, or failing 

to disclose that positive reviews of, and testimonials about, Defendants, Defendants’ 

7 
 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2555 Page 8 of 26 

Products, or companies advertised by Defendants, have been from Corporate Defendants’ 

owners, officers, employees, affiliate marketers or agents; 

E. Misrepresenting or Assisting Others in misrepresenting, expressly or by 

implication, any other material fact concerning Defendants’ Products, such as: the total 

costs; the amount of time necessary to achieve the represented results; any material 

restrictions, limitations, or conditions; any material aspect of their performance, efficacy, 

nature, or central characteristics; or any material aspect of the nature or terms of the refund, 

cancellation, exchange, repurchase, or remedy policies; and 

F. Prohibiting or restricting any consumer, potential purchaser, or investor from 

communicating reviews, performance assessments, and similar analyses about Defendants’ 

Products or the conduct of Defendants or companies advertised by Defendants related 

thereto; or that impose a penalty or fee against any consumer, potential purchaser, or 

investor who engages in such communications. 

II. PROHIBITION ON RELEASE OF CUSTOMER INFORMATION 

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

marketers, employees, and attorneys, and all other persons in active concert or participation 

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

indirectly, are hereby preliminarily restrained and enjoined from: 

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

address, birth date, telephone number, email address, credit card number, bank account 

number, Social Security number, or other financial or identifying information of any Person 

that any Defendant obtained in connection with any activity that pertains to the subject 

matter of this Order; and 

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

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

financial or identifying information of any Person that any Defendant obtained in 

connection with any activity that pertains to the subject matter of this Order. 

8 
 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2556 Page 9 of 26 

Provided, however, that Defendants may disclose such identifying information to a 

law enforcement agency, to their attorneys as required for their defense, as required by any 

law, regulation, or court order, or in any filings, pleadings or discovery in this action in the 

manner required by the Federal Rules of Civil Procedure and by any protective order in the 

case. 

III. ASSET FREEZE 

IT IS FURTHER ORDERED that Defendants and Relief Defendant, Defendants’ 

and Relief Defendant’s officers, agents, affiliate marketers, employees, and attorneys, and 

all other persons in active concert or participation with any of them, who receive actual 

notice of this Order, whether acting directly or indirectly, are hereby preliminarily 

restrained and enjoined from: 

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

concealing, dissipating, disbursing, assigning, relinquishing, spending, withdrawing, 

granting a lien or security interest or other interest in, or otherwise disposing of any Assets 

that are: 

1. owned or controlled, directly or indirectly, by any Defendant or Relief 

Defendant; 

2. held, in part or in whole, for the benefit of any Defendant or Relief 

Defendant; 

3. in the actual or constructive possession of any Defendant or Relief 

Defendant; or 

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

otherwise held for the benefit of, any corporation, partnership, asset protection trust, or 

other entity that is directly or indirectly owned, managed or controlled by any Defendant 

or Relief Defendant. 

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 Relief Defendant or 

9 
 

 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2557 Page 10 of 26 

subject to access by any Defendant or Relief Defendant, except as necessary to comply 

with written requests from the Receiver acting pursuant to its authority under this Order; 

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

in the name, individually or jointly, of any Corporate Defendant or any corporation, 

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

Defendant or Relief Defendant or of which any Defendant or Relief Defendant is an officer, 

director, member, or manager. This includes any corporate bankcard or corporate credit 

card account for which any Defendant or Relief Defendant is, or was on the date that this 

Order was signed, an authorized signor; or 

D. Cashing any checks or depositing any money orders or cash received from 

consumers, clients, or customers of any Defendant or Relief Defendant related to any 

activity that is the subject of the Complaint in this matter or that is prohibited by this Order. 

E. The Assets affected by this Section shall include: (1) all Assets of Defendants 

and Relief Defendant as of the date the Temporary Restraining Order in this matter was 

entered; and (2) Assets obtained by Defendants or Relief Defendant after the date the 

Temporary Restraining Order in this matter was entered if those Assets are derived from 

any activity that is the subject of the Complaint in this matter or that is prohibited by this 

Order. This Section does not prohibit any transfers to the Receiver or repatriation of foreign 

Assets specifically required by this Order. 

F. Defendants and Relief Defendant reserve their right to petition the Court for 

relief from the asset freeze for reasonable living expenses. 

IV. DUTIES OF ASSET HOLDERS AND OTHER THIRD PARTIES 

IT IS FURTHER ORDERED that credit card processor, payment processor, 

merchant bank, acquiring bank, independent sales organization, third party processor, 

payment gateway, insurance company, third party automation fulfillment company 

advertised by Corporate Defendants, business entity, or Person who receives actual notice 

of this Order (by service or otherwise) that: 

10 
 

 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2558 Page 11 of 26 

(a) has held, controlled, or maintained custody, through an account or otherwise, of 

any Document on behalf of any Defendant or Relief Defendant or any asset that has been 

owned or controlled, directly or indirectly, by any Defendant or Relief Defendant; held, in 

part or in whole, for the benefit of any Defendant or Relief Defendant; in the actual or 

constructive possession of any Defendant or Relief Defendant; or owned or controlled by, 

in the actual or constructive possession of, or otherwise held for the benefit of, any 

corporation, partnership, asset protection trust, or other entity that is directly or indirectly 

owned, managed or controlled by any Defendant or Relief Defendant; 

(b) has held, controlled, or maintained custody, through an account or otherwise, of 

any Document or asset associated with credits, debits, or charges made on behalf of any 

Defendant or Relief Defendant, including reserve funds held by payment processors, credit 

card processors, merchant banks, acquiring banks, independent sales organizations, third 

party processors, payment gateways, insurance companies, or other entities; or 

(c) has extended credit to any Defendant or Relief Defendant, including through a credit 

card account, shall: 

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

removal, alteration, assignment, transfer, pledge, encumbrance, disbursement, dissipation, 

relinquishment, conversion, sale, or other disposal of any such Document or Asset, as well 

as all Documents or other property related to such Assets except by further order of this 

Court; provided, however, that this provision does not prohibit an Individual Defendant 

from incurring charges on a personal credit card established prior to entry of this Order; 

B. Deny any Person, except the Receiver, access to any safe deposit box, 

commercial mail box, or storage facility that is titled in the name of any Defendant or Relief 

Defendant, either individually or jointly, or otherwise subject to access by any Defendant 

or Relief Defendant; 

C. If they have not done so already, provide FTC’s counsel and the Receiver, 

within three (3) days of receiving a copy of this Order, a sworn statement setting forth, for 

each asset or account covered by this Section: 

11 
 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2559 Page 12 of 26 

1. The identification number of each such account or Asset; 

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

each 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; and 

3. The identification of any safe deposit box, commercial mailbox, or storage 

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

Relief Defendant, or is otherwise subject to access by any Defendant or Relief 

Defendant; and 

D. If they have not done so already, upon the request of FTC’s counsel or the 

Receiver, promptly provide FTC’s counsel and the Receiver with copies of all records or 

other Documents pertaining to any account or Asset covered by this Section, including 

originals or copies of account applications, account statements, signature cards, checks, 

drafts, deposit tickets, transfers to and from the accounts, including wire transfers and wire 

transfer instructions, all other debit and credit instruments or slips, currency transaction 

reports, 1099 forms, and all logs and records pertaining to safe deposit boxes, commercial 

mail boxes, and storage facilities. Provided, however, that this Section does not prohibit 

any transfers to the Receiver or repatriation of foreign Assets specifically required by this 

Order. 

E. The Assets affected by this Section shall include: (1) all Assets of Defendants 

and Relief Defendant as of the date the Temporary Restraining Order in this matter was 

entered; and (2) Assets obtained by Defendants or Relief Defendant after the date the 

Temporary Restraining Order in this matter was entered if those Assets are derived from 

any activity that is the subject of the Complaint in this matter or that is prohibited by this 

Order. This Section does not prohibit any transfers to the Receiver or repatriation of foreign 

Assets specifically required by this Order. 

12 
 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2560 Page 13 of 26 

V. FINANCIAL DISCLOSURES 

IT IS FURTHER ORDERED that any Defendant and Relief Defendant who has not 

yet provided completed financial statements to the FTC in accordance with this Section, 

within five (5) days of service of this Order upon them, shall prepare and deliver to FTC’s 

counsel and the Receiver: 

A. completed financial statements on the forms attached to this Order as 

Attachment A (Financial Statement of Individual Defendant) for each Individual 

Defendant, and Attachment B (Financial Statement of Corporate Defendant) for each 

Corporate Defendant or Relief Defendant; and 

B. completed Attachment C (IRS Form 4506, Request for Copy of a Tax Return) 

for each Individual and Corporate Defendant. 

VI. FOREIGN ASSET REPATRIATION 

IT IS FURTHER ORDERED that, to the extent not completed by the date of this 

Order, within five (5) days following the service of this Order, each Defendant and the 

Relief Defendant shall: 

A. Provide FTC’s counsel and the Receiver with a full accounting, verified under 

oath and accurate as of the date of this Order, of all assets, Documents, and accounts outside 

of the United States which are: (1) titled in the name, individually or jointly, of any 

Defendant; (2) held by any Person for the benefit of any Defendant or Relief Defendant or 

for the benefit of any corporation, partnership, asset protection trust, or other entity that is 

directly or indirectly owned, managed, or controlled by any Defendant or Relief Defendant; 

or (3) under the direct or indirect control, whether jointly or singly, of any Defendant or 

Relief Defendant; 

B. Take all steps necessary to provide FTC’s counsel and the Receiver with 

access to all Documents and records that may be held by third parties located outside of 

the territorial United States of America, including signing the Consent to Release of 

Financial Records appended to this Order as Attachment D. 

13 
 

 

 

 

 

 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2561 Page 14 of 26 

C. Transfer to the territory of the United States all Documents and Assets located 

in foreign countries which are: (1) titled in the name, individually or jointly, of any 

Defendant or Relief Defendant; (2) held by any Person or entity for the benefit of any 

Defendant or Relief Defendant or for the benefit of, any corporation, partnership, asset 

protection trust, or other entity that is directly or indirectly owned, managed or controlled 

by any Defendant or Relief Defendant; or (3) under the direct or indirect control, whether 

jointly or singly, of any Defendant or Relief Defendant; and 

D. The same business day as any repatriation, (1) notify the Receiver and counsel 

for FTC of the name and location of the financial institution or other entity that is the 

recipient of such Documents or Assets; and (2) serve this Order on any such financial 

institution or other entity. 

VII. NON-INTERFERENCE WITH REPATRIATION 

IT IS FURTHER ORDERED that Defendants and Relief Defendant, Defendants’ 

and Relief Defendant’s agents, affiliate marketers, employees, and attorneys, and all other 

Persons in active concert or participation with any of them, who receive actual notice of 

this Order, whether acting directly or indirectly, are hereby preliminarily 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 this Order, including, but not limited to: 

A. Sending any communication 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 

Defendants’ and Relief Defendant’s Assets have been fully repatriated pursuant to this 

Order; or 

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 Defendants’ and Relief Defendant’s Assets 

have been fully repatriated pursuant to this Order. 

14 
 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2562 Page 15 of 26 

VIII. CONSUMER CREDIT REPORTS 

IT IS FURTHER ORDERED that the FTC and the Receiver may obtain credit 

reports concerning any Defendants pursuant to Section 604(a)(1) of the Fair Credit 

Reporting Act, 15 U.S.C. § 1681b(a)(1), and that, upon written request, any credit reporting 

agency from which such reports are requested shall provide them to the FTC. 

IX. PRESERVATION OF RECORDS 

IT IS FURTHER ORDERED that Defendants and the Relief Defendant, 

Defendants’ and the Relief Defendant’s officers, agents, affiliate marketers, employees, 

and attorneys, and all other persons in active concert or participation with any of them, who 

receive actual notice of this Order, whether acting directly or indirectly, are hereby 

preliminarily restrained and enjoined from: 

A. Destroying, erasing, falsifying, writing over, mutilating, concealing, altering, 

transferring, or otherwise disposing of, in any manner, directly or indirectly, Documents 

that relate to: (1) the business, business practices, Assets, or business or personal finances 

of any Defendant or Relief Defendant; (2) the business practices or finances of entities 

directly or indirectly under the control of any Defendant or Relief Defendant; or (3) the 

business practices or finances of entities directly or indirectly under common control with 

any other Defendant or Relief Defendant; and 

B. Failing to create and maintain Documents that, in reasonable detail, 

accurately, fairly, and completely reflect Defendants’ or Relief Defendant’s incomes, 

disbursements, transactions, and use of Defendants’ or Relief Defendant’s Assets. 

X. REPORT OF NEW BUSINESS ACTIVITY 

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

marketers, employees, and attorneys, and all other persons in active concert or participation 

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

indirectly, are hereby preliminarily restrained and enjoined from creating, operating, or 

exercising any control over any business entity, whether newly formed or previously 

inactive, including any partnership, limited partnership, joint venture, sole proprietorship, 

15 
 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2563 Page 16 of 26 

limited liability company, or corporation, without first providing the FTC’s counsel and 

the Receiver with a written statement disclosing: (1) the name of the business entity; (2) 

the address and telephone number of the business entity; (3) the names of the business 

entity’s officers, directors, principals, managers, and employees; and (4) a detailed 

description of the business entity’s intended activities. 

XI. APPOINTMENT OF RECEIVER 

IT IS FURTHER ORDERED that Stapleton Group, Inc. is appointed as Receiver of 

the Receivership Entities with full powers of an equity receiver. The Receiver shall be 

solely the agent of this Court in acting as Receiver under this Order. 

XII. DUTIES AND AUTHORITY OF RECEIVER 

IT IS FURTHER ORDERED that the Receiver is directed and authorized to 

accomplish the following: 

A. Assume full control of Receivership Entities by removing, as the Receiver 

deems necessary or advisable, any director, officer, independent contractor, employee, 

attorney, or agent of any Receivership Entity from control of, management of, or 

participation in, the affairs of the Receivership Entity; 

B. Take exclusive custody, control, and possession of all Assets and Documents 

of, or in the possession, custody, or under the control of, any Receivership Entity, wherever 

situated; 

C. Take exclusive custody, control, and possession of all Documents or Assets 

associated with credits, debits, or charges made on behalf of any Receivership Entity, 

wherever situated, including reserve funds held by payment processors, credit card 

processors, merchant banks, acquiring banks, independent sales organizations, third party 

processors, payment gateways, insurance companies, or other entities; 

D. Conserve, hold, manage, and prevent the loss of all Assets of the Receivership 

Entities, and perform all acts necessary or advisable to preserve the value of those Assets. 

The Receiver shall assume control over the income and profits therefrom and all sums of 

money now or hereafter due or owing to the Receivership Entities. The Receiver shall 

16 
 

 

 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2564 Page 17 of 26 

have full power to sue for, collect, and receive, all Assets of the Receivership Entities and 

of other persons or entities whose interests are now under the direction, possession, 

custody, or control of, the Receivership Entities. Provided, however, that the Receiver shall 

not attempt to collect any amount from a consumer if the Receiver believes the consumer’s 

debt to the Receivership Entities has resulted from the deceptive acts or practices or other 

violations of law alleged in the Complaint in this matter, without prior Court approval; 

E. Obtain, conserve, hold, manage, and prevent the loss of all Documents of the 

Receivership Entities, and perform all acts necessary or advisable to preserve such 

Documents. The Receiver shall: divert mail; preserve all Documents of the Receivership 

Entities that are accessible via electronic means (such as online access to financial accounts 

and access to electronic documents held onsite or by Electronic Data Hosts, by changing 

usernames, passwords, or other log-in credentials); take possession of all electronic 

Documents of the Receivership Entities stored onsite or remotely; take whatever steps 

necessary to preserve all such Documents; and obtain the assistance of the FTC’s Digital 

Forensic Unit for the purpose of obtaining electronic documents stored onsite or remotely; 

F. Choose, engage, and employ attorneys, accountants, appraisers, and other 

independent contractors and technical specialists without further order of the Court, as the 

Receiver deems advisable or necessary in the performance of duties and responsibilities 

under the authority granted by this Order; 

G. Make payments and disbursements from the Receivership Entities that are 

necessary or advisable for carrying out the directions of, or exercising the authority granted 

by, this Order, and to incur, or authorize the making of, such agreements as may be 

necessary and advisable in discharging his or her duties as Receiver. The Receiver shall 

apply to the Court for prior approval of any payment of any debt or obligation incurred by 

the Receivership Entities prior to the date of entry of this Order, except payments that the 

Receiver deems necessary or advisable to secure Assets of the Receivership Entities, such 

as rental payments; 

17 
 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2565 Page 18 of 26 

H. Take all steps necessary to secure and take exclusive custody of each location 

from which the Receivership Entities operate their businesses. Such steps may include, but 

are not limited to, any of the following, as the Receiver deems necessary or advisable: (1) 

securing the location by changing the locks and alarm codes and disconnecting any internet 

access or other means of access to the computers, servers, internal networks, or other 

records maintained at that location; and (2) requiring any persons present at the location to 

leave the premises, to provide the Receiver with proof of identification, and/or to 

demonstrate to the satisfaction of the Receiver that such persons are not removing from the 

premises Documents or Assets of the Receivership Entities. Law enforcement personnel, 

including, but not limited to, police or sheriffs, may assist the Receiver in implementing 

these provisions in order to keep the peace and maintain security. If requested by the 

Receiver, the United States Marshal will provide appropriate and necessary assistance to 

the Receiver to implement this Order and is authorized to use any necessary and reasonable 

force to do so; 

I. Take all steps necessary to prevent the modification, destruction, or erasure of 

any web page or website registered to and operated, in whole or in part, by any Defendant, 

related to any activity that is the subject of the Complaint in this matter or that is prohibited 

by this Order, and to provide access to all such web page or websites to the FTC’s 

representatives, agents, and assistants, as well as Defendants and their representatives; 

J. Enter into and cancel contracts and purchase insurance as advisable or 

necessary; 

K. Prevent the inequitable distribution of Assets and determine, adjust, and 

protect the interests of consumers who have transacted business with the Receivership 

Entities; 

L. Make an accounting, as soon as practicable, of the Assets and financial 

condition of the Receivership Entities and file the accounting with the Court and deliver 

copies thereof to all parties; 

18 
 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2566 Page 19 of 26 

M. Institute, compromise, adjust, appear in, intervene in, defend, dispose of, or 

otherwise become party to any legal action in state, federal or foreign courts or arbitration 

proceedings as the Receiver deems necessary and advisable to preserve or recover the 

Assets of the Receivership Entities, or to carry out the Receiver’s mandate under this Order, 

including but not limited to, actions challenging fraudulent or voidable transfers; 

N. Issue subpoenas to obtain Documents and records pertaining to the 

Receivership Entities, and conduct discovery in this action on behalf of the Receivership 

Entities, in addition to obtaining other discovery as set forth in this Order; 

O. Open one or more bank accounts at designated depositories for funds of the 

Receivership Entities. The Receiver shall deposit all funds of the Receivership Entities in 

such designated accounts and shall make all payments and disbursements from the 

receivership estate from such accounts. The Receiver shall serve copies of monthly 

account statements on all parties; 

P. Maintain accurate records of all receipts and expenditures incurred as 

Receiver; 

Q. Allow the FTC’s representatives, agents, and assistants, as well as 

Defendants’ representatives and Defendants themselves, reasonable access to the premises 

of the Receivership Entities, or any other premises where the Receivership Entities conduct 

business. The purpose of this access shall be to inspect and copy any and all books, records, 

Documents, accounts, and other property owned by, or in the possession of, the 

Receivership Entities or their agents. The Receiver shall have the discretion to determine 

the time, manner, and reasonable conditions of such access; 

R. Allow the FTC’s representatives, agents, and assistants, as well as Defendants 

and their representatives, reasonable access to all Documents in the possession, custody, or 

control of the Receivership Entities; 

S. Cooperate with reasonable requests for information or assistance from any 

state or federal civil or criminal law enforcement agency; 

19 
 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2567 Page 20 of 26 

T. Suspend business operations of the Receivership Entities if in the judgment 

of the Receiver such operations cannot be continued legally and profitably; 

U. If the Receiver identifies a nonparty entity as a Receivership Entity, promptly 

notify the entity as well as the parties, and inform the entity that it can challenge the 

Receiver’s determination by filing a motion with the Court. Provided, however, that the 

Receiver may delay providing such notice until the Receiver has established control of the 

nonparty entity and its assets and records, if the Receiver determines that notice to the 

entity or the parties before the Receiver establishes control over the entity may result in the 

destruction of records, dissipation of assets, or any other obstruction of the Receiver’s 

control of the entity; 

V. If in the Receiver’s judgment the business operations cannot be continued 

legally and profitably, take all steps necessary to ensure that any of the Receivership 

Entities’ web pages or websites relating to the activities alleged in the Complaint cannot be 

accessed by the public, or are modified for consumer education and/or informational 

purposes, and take all steps necessary to ensure that any telephone numbers associated with 

the Receivership Entities cannot be accessed by the public, or are answered solely to 

provide consumer education or information regarding the status of operations; and 

W. Prepare a written report at or before any hearing described in Paragraph 

XXVI, that describes (1) the steps taken by the Receiver to implement the terms of the 

Order; (2) the value of all assets and sum of all liabilities of the Receivership Entities; (3) 

the steps the Receiver intends to take in the future to protect receivership assets, recover 

receivership assets from third parties, and adjust receivership liabilities; (4) the Receiver's 

opinion on whether any portion of the business of any of the Receivership Entities can 

continue to operate legally and profitably; and (5) any other matters which the Receiver 

believes should be brought to the Court's attention. 

20 
 

 

 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2568 Page 21 of 26 

XIII. TRANSFER OF RECEIVERSHIP PROPERTY TO RECEIVER 

IT IS FURTHER ORDERED that Defendants and the Relief Defendant and any 

other person, with possession, custody or control of property of, or records relating to, the 

Receivership Entities shall, upon notice of this Order by personal service or otherwise, 

fully cooperate with and assist the Receiver in taking and maintaining possession, custody, 

or control of the Assets and Documents of the Receivership Entities and immediately 

transfer or deliver to the Receiver possession, custody, and control of, the following: 

A. All Assets held by or for the benefit of the Receivership Entities; 

B. All Documents or Assets associated with credits, debits, or charges made on 

behalf of any Receivership Entity, wherever situated, including reserve funds held by 

payment processors, credit card processors, merchant banks, acquiring banks, independent 

sales organizations, third party processors, payment gateways, insurance companies, or 

other entities, and commission payments and funds held by third party Amazon Automation 

companies; 

C. All Documents of or pertaining to the Receivership Entities; including all 

communications occurring via electronic mail, electronic messaging service, or encrypted 

messaging service (including but not limited to Signal, Discord, Slack, or WhatsApp); 

D. All computers, electronic devices, mobile devices and machines used to 

conduct the business of the Receivership Entities; even if such computers, electronic 

devices, mobile devices, and machines are also used for non-business purposes; 

E. All Assets and Documents belonging to other persons or entities whose 

interests are under the direction, possession, custody, or control of the Receivership 

Entities, including third party automation fulfillment companies; and 

F. All keys, codes, user names, and passwords necessary to gain or to secure 

access to any Assets or Documents of or pertaining to the Receivership Entities, including 

access to their business premises, means of communication, accounts, computer systems 

(onsite and remote), Electronic Data Hosts, encrypted messaging services, or other 

property. 

21 
 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2569 Page 22 of 26 

In the event that any person or entity fails to deliver or transfer any Asset or 

Document, or otherwise fails to comply with any provision of this Section, the Receiver 

may file an Affidavit of Non-Compliance regarding the failure and a motion seeking 

compliance or a contempt citation. 

XIV. PROVISION OF INFORMATION TO RECEIVER 

IT IS FURTHER ORDERED that Defendants and the Relief Defendant shall 

immediately provide to the Receiver: 

A. A list of all Documents pertaining to the Receivership Entities’ Earnings 

Claims and other representations related to the marketing, advertising, promotion, offer for 

sale, or sale of Defendants’ Products, including any such Documents belonging to other 

persons or entities whose interests are under the direction, custody, or control, or in the 

possession, of the Receivership Entities; 

B. A list of all Assets and accounts of the Receivership Entities that are held in 

any name other than the name of a Receivership Entity, or by any person or entity other 

than a Receivership Entity; 

C. A list of all agents, affiliate marketers, employees, officers, attorneys, 

servants, and those persons in active concert and participation with the Receivership 

Entities, or who have been associated or done business with the Receivership Entities; and 

D. A description of any documents covered by attorney-client privilege or 

attorney work product, including files where such documents are likely to be located, 

authors or recipients of such documents, and search terms likely to identify such electronic 

documents. 

XV. COOPERATION WITH THE RECEIVER 

IT IS FURTHER ORDERED that Defendants; Receivership Entities; Defendants’ 

or Receivership Entities’ officers, agents, affiliate marketers, employees, and attorneys, all 

other persons in active concert or participation with any of them, and any other person with 

possession, custody, or control of property or records relating to the Receivership Entities 

who receive actual notice of this Order shall fully cooperate with and assist the Receiver. 

22 
 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2570 Page 23 of 26 

This cooperation and assistance shall include, but is not limited to, providing information 

to the Receiver that the Receiver deems necessary to exercise the authority and discharge 

the responsibilities of the Receiver under this Order; providing any keys, codes, user 

names, and passwords required to access any computers, electronic devices, mobile 

devices, and machines (onsite or remotely) and any cloud account (including specific 

method to access account) or electronic file in any medium; advising all persons who owe 

money to any Receivership Entity (including third party automation fulfillment companies) 

that all debts should be paid directly to the Receiver; and transferring funds at the 

Receiver’s direction and producing records related to the Assets, sales, and refunds of the 

Receivership Entities. 

XVI. NON-INTERFERENCE WITH THE RECEIVER 

IT IS FURTHER ORDERED that Defendants, Receivership Entities, Defendants’ or 

Receivership Entities’ officers, agents, affiliate marketers, employees, attorneys, and all 

other persons in active concert or participation with any of them, who receive actual notice 

of this Order, and any other person served with a copy of this Order, are hereby restrained 

and enjoined from directly or indirectly: 

A. Interfering with the Receiver’s efforts to manage, or take custody, control, or 

possession of, the Assets or Documents subject to the receivership; 

B. Transacting any of the business of the Receivership Entities; 

C. Transferring, receiving, altering, selling, encumbering, pledging, assigning, 

liquidating, or otherwise disposing of any Assets owned, controlled, or in the possession 

or custody of, or in which an interest is held or claimed by, the Receivership Entities; or 

D. Refusing to cooperate with the Receiver or the Receiver’s duly authorized 

agents in the exercise of their duties or authority under any order of this Court. 

XVII. STAY OF ACTIONS 

IT IS FURTHER ORDERED that, except by leave of this Court, during the 

pendency of the receivership ordered herein, Defendants and Relief Defendant, 

23 
 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2571 Page 24 of 26 

Defendants’ and Relief Defendants’ officers, agents, affiliate marketers, employees, 

attorneys, and all other persons in active concert or participation with any of them, who 

receive actual notice of this Order, and their corporations, subsidiaries, divisions, or 

affiliates, and all investors, creditors, stockholders, lessors, customers and other persons 

seeking to establish or enforce any claim, right, or interest against or on behalf of 

Defendants or Relief Defendant, and all others acting for or on behalf of such persons, are 

hereby enjoined from taking action that would interfere with the exclusive jurisdiction of 

this Court over the Assets or Documents of the Receivership Entities, including, but not 

limited to: 

A. Filing or assisting in the filing of a petition for relief under the Bankruptcy 

Code, 11 U.S.C. § 101 et seq., or of any similar insolvency proceeding on behalf of the 

Receivership Entities; 

B. Commencing, prosecuting, or continuing a judicial, administrative, or other 

action or proceeding against the Receivership Entities, including the issuance or 

employment of process against the Receivership Entities, except that such actions may be 

commenced if necessary to toll any applicable statute of limitations; or 

C. Filing or enforcing any lien on any asset of the Receivership Entities, taking 

or attempting to take possession, custody, or control of any Asset of the Receivership 

Entities; or attempting to foreclose, forfeit, alter, or terminate any interest in any Asset of 

the Receivership Entities, whether such acts are part of a judicial proceeding, are acts of 

self-help, or otherwise. 

Provided, however, that this Order does not stay: (1) the commencement or 

continuation of a criminal action or proceeding; (2) the commencement or continuation of 

an action or proceeding by a governmental unit to enforce such governmental unit’s police 

or regulatory power; or (3) the enforcement of a judgment, other than a money judgment, 

obtained in an action or proceeding by a governmental unit to enforce such governmental 

unit’s police or regulatory power. 

24 
 

 

 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2572 Page 25 of 26 

XVIII. COMPENSATION OF RECEIVER 

IT IS FURTHER ORDERED that the Receiver and all personnel hired by the 

Receiver as herein authorized, including counsel to the Receiver and accountants, are 

entitled to reasonable compensation for the performance of duties pursuant to this Order 

and for the cost of actual out-of-pocket expenses incurred by them, from the Assets now 

held by, in the possession or control of, or which may be received by, the Receivership 

Entities. The Receiver shall file with the Court and serve on the parties periodic requests 

for the payment of such reasonable compensation, with the first such request filed no more 

than sixty (60) days after the date of entry of this Order. The Receiver shall not increase 

the hourly rates used as the bases for such fee applications without prior approval of the 

Court. 

XIX. RECEIVER’S BOND 

IT IS FURTHER ORDERED that the Receiver shall file with the Clerk of this Court 

a bond in the sum of $25,000 with sureties to be approved by the Court, conditioned that 

the Receiver will well and truly perform the duties of the office and abide by and perform 

all acts the Court directs.

 XX. DISTRIBUTION OF ORDER BY DEFENDANTS 

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

this Order to each affiliate, telemarketer, marketer, sales entity, successor, assign, member, 

officer, director, employee, agent, independent contractor, client, attorney, spouse, 

subsidiary, division, and representative of any Defendant, and shall, within ten (10) days 

from the date of entry of this Order, and provide the FTC and the Receiver with a sworn 

statement that this provision of the Order has been satisfied, which statement shall include 

the names, physical addresses, phone numbers, and email addresses of each such person or 

entity who received a copy of the Order. Furthermore, Defendants shall not take any action 

that would encourage officers, agents, members, directors, employees, salespersons, 

independent contractors, attorneys, subsidiaries, affiliates, successors, assigns or other 

25 
 

 

 

 

 

 

 

 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

~ Uni ed tatesDistl.'ict.Judge 

Case 3:23-cv-01444-BAS-KSC Document 48 Filed 09/08/23 PageID.2573 Page 26 of 26 

persons or entities in active concert or participation with them to disregard this Order or 

believe that they are not bound by its provisions. 

XXI. SERVICE OF THIS ORDER 

IT IS FURTHER ORDERED that copies of this Order as well as the Motion for 

Temporary Restraining Order and all other pleadings, Documents, and exhibits filed 

contemporaneously with that Motion (other than the complaint and summons), may be 

served by any means, including facsimile transmission, electronic mail or other electronic 

messaging, personal or overnight delivery, U.S. Mail or FedEx, by agents and employees 

of the FTC, by any law enforcement agency, or by private process server, upon any 

Defendant, Relief Defendant, or any Person (including any financial institution) that may 

have possession, custody or control of any Asset or Document of any Defendant or Relief 

Defendant, or that may be subject to any provision of this Order pursuant to Rule 65(d)(2) 

of the Federal Rules of Civil Procedure. For purposes of this Section, service upon any 

branch, subsidiary, affiliate, or office of any entity shall effect service upon the entire 

entity. 

XXII. CORRESPONDENCE AND SERVICE ON FTC 

IT IS FURTHER ORDERED that, for the purpose of this Order, all correspondence 

and service of pleadings on the FTC shall be done via email to: Colleen Robbins at 

crobbins@ftc.gov Christopher E. Brown at cbrown3@ftc.gov. 

XXIII. DURATION OF THE ORDER 

This Order shall remain in effect until further order of the Court. 

XXIV. SEPTEMBER 19, 2023 HEARING 

The issue of whether a P.I. should be instituted having been resolved, the Court 

VACATES the Hearing scheduled for September 19, 2023. 

IT IS SO ORDERED. 

DATED: September 8, 2023 

26