Case 1:18-cv-03309-PJM Document 668 Filed 11/06/19 Page 1 of 19

IN THE UNITED ST ATES DISTRICT COURT 

FOR THE DISTRICT OF MARYLAND 

SOUTHERN DIVISION 

FEDERAL TRADE COMMISSION 

Plaintiff, 

V. 

ECOLOGICAL FOX LLC et al. 

Defendants. 

No: I 8-cv-3309-P JM 

STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONET ARY 

JUDGMENT AGAINST DEFENDANTS FRANK COSTANZO AND ECOLOGICAL 

FOX LLC AND RELIEF DEFENDANT DEBORAH CONNELLY 

Plaintiff the Federal Trade Commission ("Commission" or "FTC") filed its Complaint for 

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

Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b), and the Telemarketing and 

Consumer Fraud and Abuse Prevention Act ("Telemarketing Act"), 15 U.S.C. §§ 6101-6108. 

On January 11 , 2019, the Court granted the FTC's motion to amend, substituting the Amended 

Complaint for Permanent Injunction and Other Equitable Relief ("Amended Complaint") for the 

Complaint. Defendants Frank Costanzo and Ecological Fox LLC and Relief Defendant 

Deborah Connelly were served with the Complaint and summons, and subsequently served with 

the Amended Complaint. The Commission and Defendants Frank Costanzo and Ecological Fox 

LLC and Relief Defendant Deborah Connelly stipulate to the entry of this Stipulated Order for 

Permanent Injunc ion and Monetary Judgment Against Defendants Frank Costanzo and 

Ecological Fox LLC and Relief Defendant Deborah Connelly ("Order") to resolve all matters in 

dispute between t em in this action and the related FTC v. AmeriDebt Inc. , No. 03-cv-3317 (0. 

Md.) ("AmeriDebt" ). 
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IT IS THEREFO ORDERED: 

FINDINGS 

1. Th ·s Court has jurisdiction over this matter. 

2. The Amended Complaint charges that Defendants Frank Costanzo and Ecological 

Fox LLC, along with the other named Defendants, participated in deceptive acts or practices in 

violation of Section 5 of the FTC Act, 15 U.S.C. § 45, as well as violations of the Telemarketing 

Sales Rule, 16 C. .R. Part 310, in connection with the sale of lots in a development in Belize 

known variously as Sanctuary Bay, Sanctuary Belize, and The Reserve (for ease, "Sanctuary 

Belize"). The Amended Complaint further alleges that Relief Defendant Deborah Connelly 

received proceeds from the conduct alleged in the Amended Complaint to which she is not 

legally entitled. 

3. Defendants Frank Costanzo and Ecological Fox LLC and Relief Defendant 

Deborah Connelly neither admit nor deny any of the allegations in the Complaint, except as 

specifically stated in this Order. Only for purposes of this action, Defendants Frank Costanzo 

and Ecological Fox LLC and Relief Defendant Deborah Connelly admit the facts necessary to 

establish jurisdiction. 

4. Defendants Frank Costanzo and Ecological Fox LLC and Relief Defendant 

Deborah Connelly waive any claims they may have under the Equal Access to Justice Act, 28 

U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, and 

agree to bear their own costs and attorney fees. 

5. De endants Frank Costanzo and Ecological Fox LLC and Relief Defendant 

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

Order. 

DEFINITIONS 

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

property, wherever located and by whomever held, whether tangible, intangible, digital, or 

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otherwise, includi g, but not limited to, digital currencies, virtual currencies, digital tokens, and 

cryptocurrencies. 

B. "Corporate Defendant(s)" means Global Property Alliance, Inc., Sittee River 

Wildlife Reserve, Buy Belize, LLC, Buy International, Inc., Foundation Development 

Management, Inc., Eco-Futures Development, Eco-Futures Belize Limited, Power Haus 

Marketing, Sanctuary Belize Property Owners' Association, Prodigy Management Group LLC, 

Foundation Partne s, BG Marketing, LLC, Ecological Fox, LLC, Belize Real Estate Affiliates 

LLC, Exotic Investor LLC, Southern Belize Realty LLC, Newport Land Group LLC, and 

Atlantic International Bank Ltd. and each of their subsidiaries, affiliates, successors, and assigns. 

C. "Defendant(s)" means the Corporate Defendants and Individual Defendants, 

individually, collectively, or in any combination. 

D. "Individual Defendant(s)" means Andris Pukke, Peter Baker, Luke Chadwick, 

John Usher, Rod azazi, Brandi Greenfield, Frank Costanzo, and Michael Santos, individually, 

collectively, or in any combination. 

E. "Real Estate Good or Service" means any interest in, service related to, or 

development of, any real estate containing or involving three or more lots or units of any kind. 

F. "Receiver" means the Receiver appointed in Section VI of this Order and any 

deputy receivers ho shall be named by the Receiver. 

G. "R ceivership Asset" means any and all Assets ordered to be turned over to the 

Receiver pursuant to this Order. 

H. "Receivership Entities" means the Corporate Defendants (except Atlantic 

International Bank, Ltd.), 2729 Bristol LLC, and 3905 Marcus LLC, as well as any other entity 

that: ( 1) is located at, registered to, or operated from 3333 Michelson Drive, Suite 500, Irvine, 

California, and assists, facilitates, or otherwise conducts business related to the sale of real estate 

in Belize; (2) assists, facilitates, or otherwise conducts business related to the acts identified in 

the Findings of Fact in this Order, and is owned or controlled by any Defendant; or (3) Assets 

that are otherwise in the Receivership and that are corporations or other legal entities. 

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I. "Relief Defendant(s)" means Angela Chittenden, Beach Bunny Holdings LLC, 

the Estate of John Pukke, John Vipulis, and Deborah Connelly. 

J. "S ttling Corporate Defendant" means Ecological Fox LLC and each of its 

subsidiaries, affilil tes, successors, and assigns. 

K. "Settling Defendant(s)" means the Settling Individual Defendant and Settling 

Corporate Defendant, individually, collectively, or in any combination, and any subsidiaries, 

affiliates, successors, and assigns. 

L. "Settling Individual Defendant" means Frank Costanzo. 

M. "Settling Relief Defendant" means Deborah Connelly. 

N. "Telemarketing" means any plan, program, or campaign which is conducted to 

induce the purchase of goods or services by use of one or more telephones, and which involves a 

telephone call, w ether or not covered by the Telemarketing Sales Rule. 

ORDER 

I. BAN ON TELEMARKETING 

IT IS ORDERED that Settling Defendants are permanently restrained and enjoined from 

Telemarketing, whether directly or through an intermediary, including by consulting, brokering, 

planning, investing, or advising. 

II. BAN ON REAL ESTATE GOODS AND SERVICES 

IT IS FURTHER ORDERED that Settling Defendants are permanently restrained and 

enjoined from advr rtising, marketing, promoting, or offering for sale, or assisting in the 

advertising, marketing, promoting, or offering for sale of any Real Estate Good or Service. 

Settling Dl fendants may provide services limited to compliance with environmental 

responsibility requirements, the environmental impacts of construction or construction 

methodologies, and obtaining permits for construction (collectively, "environmental services"); 

provided, however, that Settling Defendants, whether acting directly or indirectly, in connection 

with advertising, marketing, promoting, or offering for sale, or assisting in the advertising, 

marketing, promoting, or offering for sale, of any environmental services, are permanently 

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restrained and enjoined from making any representation, expressly or by implication, or assisting 

h . k" I . 1 b . 1· . d" ot ers m ma mg ny representation, express y or y imp 1cat1on, regar mg: 

A. wh ther any product is in whole or part organic; 

B. wh ther any product is in whole or part natural; 

C. whether any product is in whole or part plant-based; 

D. the content of any product; 

E. the emissions from any product or real estate development; or 

F. the environmental or health benefits of any product, service, or real estate 

development, 

unless the representation is true and non-misleading, including that, at the time such 

representation is made, Settling Defendants possess and rely upon competent and reliable 

evidence based on the expertise of professionals in the relevant field to which the representation 

relates and is sufficient in quality and quantity based on standards generally accepted in the 

relevant fields when considered in light of the entire body of relevant and reliable evidence to 

substantiate that the representation is true. When appropriate, competent and reliable evidence 

must include competent and reliable scientific evidence. Any activities of Settling Defendants 

under this proviso must comply with other provisions of this Order, including but not limited to 

Section III. 

III. PROHIBITION AGAINST MISREPRESENTATIONS IN THE SALE OF ANY 

GOOD OR SERVICE 

IT IS FURTHER ORDERED that Settling Defendants and their officers, agents, 

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

them, who receive actual notice of this Order, whether acting directly or indirectly, in connection 

with advertising, arketing, promoting, or offering for sale any good or service, are permanently 

restrained and enj ined from misrepresenting, or assisting others in misrepresenting, expressly or 

by implication: 

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A. The use of a "no debt" business model makes an investment less risky than one in 

which an entity or individual must make payments to creditors; 

B. Every dollar, or the vast majority of dollars, collected from selling the good or 

service is used to urther the good or service; 

C. The good or service will be completed or available within a specified period of 

time, such as a particular number of weeks, months, or years; 

D. The good or service will have specific features or amenities; 

E. The good or service will appreciate in value or appreciate in value rapidly, such 

as a particular rate within a particular period of time; 

F. Co sumers can realize the appreciation of their good or service because there is a 

robust resale mar et through which consumers could easily resell their good or service should 

they choose to do so; 

G. One or more Defendants have no meaningful involvement with the relevant 

business; and 

H. Any other fact material to consumers concerning any good or service, such as: 

the total costs; any material restrictions, limitations, or conditions; or any material aspect of its 

performance, efficacy, nature, or central characteristics. 

IV. MONETARY JUDGMENT 

HER ORDERED that: 

A. Judgment in the amount of one hundred forty four million dollars ($144,000,000) 

is entered in favor of the Commission against Settling Defendants, jointly and severally, as 

equitable moneta , relief. 

I 

B. Judgment in the amount of four hundred seventy-eight thousand eight hundred 

four dollars and ninety three cents ($478,804.93) is entered in favor of the Commission against 

Settling Relief Defendant, jointly and severally, as equitable monetary relief. 

C. Settling Defendants and Settling Relief Defendant are ordered to pay to the 

Commission all amounts held by them, or for their benefit, in any financial account as of 

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November 7, 20 I , unless it has previously been released to them by prior order of the Court, 

including the foll , wing: the amounts held in the accounts at Bank of America in the names of 

Deborah Connell and Frank Costanzo with the last four digits of 8226 and 9016 and the account 

held in the name oflcon Fox LLC with the last four digits of 4073. Such payment must be 

made within fourteen (14) days of entry of this Order by electronic funds transfer in accordance 

with instructions previously provided by a representative of the Commission. Furthermore, 

Settling Defenda ts and Settling Relief Defendant shall permanently transfer, assign, or 

relinquish to the Receiver, for liquidation and ultimate payment to the Commission, within 

fourteen (14) day of entry of this Order, all rights they may have in the assets, if any, of 

Ecological Fox LLC. Upon such payments, transfers, assignations, and relinquishments, the 

remainder of the j dgment is suspended, subject to the Subsections below. 

D. Th Commission's agreement to the suspension of part of the judgment is 

expressly premisea upon the truthfulness, accuracy, and completeness of the statements made 

and exhibits marked (collectively, the "financial representations") during: 

a. the sworn asset interview of Individual Defendant Frank Costanzo, on his own 

behalf and that of Corporate Defendant Ecological Fox LLC, that took place on 

August 8, 2019 at the Federal Trade Commission's offices in Los Angeles, 

California, the transcript of which he certified as accurate, subject to an errata 

sheet ("Costanzo Asset Interview"); and 

b. the sworn asset interview of Relief Defendant Deborah Connelly that took place 

on August 8, 2019 at the Federal Trade Commission's offices in Los Angeles, 

California, the transcript of which she certified as accurate, subject to an errata 

sheet ("Connelly Asset Interview"). 

E. The suspension of the judgment will be lifted as to any Settling Defendant or 

Settling Relief Defendant if, upon motion by the Commission, the Court finds that Settling 

Defendant or Settling Relief Defendant failed to disclose any material asset, materially misstated 

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

representations idf ntified above. 

F. If the suspension of the judgment is lifted, the judgment becomes immediately 

due as to that Settling Defendant or Settling Relief Defendant in the amount specified in 

Subsections A. or B. above, which the parties stipulate only for purposes of this Section 

represents the consumer injury, less any payment previously made pursuant to this Section, plus 

interest computed from the date of entry of this Order. 

V. ADDITIONAL MONETARY PROVISIONS 

A. Settling Defendants and Settling Relief Defendant relinquish dominion and all 

legal and equitable right, title, and interest in all assets paid, transferred, assigned, or 

relinquished pursuant to this Order and may not seek the return of any assets. 

B. The facts alleged in the Complaint will be taken as true, without further proof, in 

any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to 

enforce its rights to any payment or monetary judgment pursuant to this Order, such as a 

nondischargeability complaint in any bankruptcy case. 

C. The facts alleged in the Complaint establish all elements necessary to sustain an 

action by the Con;imission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. 

§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes. 

D. Settling Defendants and Settling Relief Defendant acknowledge that their 

Taxpayer Identification Numbers (Social Security Numbers or Employer Identification 

Numbers), which Settling Defendants and Settling Relief Defendant previously submitted to the 

Commission, ma be used for collecting and reporting on any delinquent amount arising out of 

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

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

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

consumer redress and any attendant expenses for the administration of any redress fund. If a 

representative of he Commission decides that direct redress to consumers is wholly or partially 

I 

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impracticable or money remains after redress is completed, the Commission may apply any 

remaining money I or such other equitable relief (including consumer information remedies) as it 

determines to be reasonably related to Defendants' practices alleged in the Complaint. Any 

money not used fJ such equitable relief is to be deposited to the U.S. Treasury as disgorgement. 

Defendants have no right to challenge any actions the Commission or its representatives may 

take pursuant to this Subsection. 

F. The asset freeze imposed on Settling Defendants and Settling Relief Defendant in 

the previously iss ed Ex Parte Temporary Restraining Order with Asset Freeze, Writs Ne Exeat, 

Appointment of a emporary Receiver and Other Equitable Relief, and Order to Show Cause 

Why a Preliminary Injunction Should Not Issue is modified to permit the transfers identified in 

the Monetary Jud I ment Section. Upon the payments, transfers, assignations, and 

relinquishments required under this Order, the asset freeze is dissolved. 

G. Upon the payments, transfers, assignations, and relinquishments required under 

this Order, the Receiver shall return to the Settling Defendants and Settling Relief Defendant any 

passports previously turned over to the Receiver in the name of the Settling Defendants and 

Settling Relief Defendant. 

VI. RECEIVER 

IT IS FURffHER ORDERED that Robb Evans & Associates LLC is appointed as 

Receiver for all assets ordered to be turned over to the Receiver pursuant to this Order. He shall 

have full powers of an equity receiver. The Receiver shall be solely the agent of this Court in 

acting as Receive under this Order. 

VII. DUTIES AND AUTHORITY OF RECEIVER 

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

the following: 

A. Take exclusive control, custody, and possession of all Receivership Assets; 

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

perform all acts necessary or advisable to preserve the value of those Assets. The Receiver shall 

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assume control over the income and profits therefrom and all sums of money now or hereafter 

due or owing to the Settling Defendants or Settling Relief Defendant as a result of the 

Receivership Assets. The Receiver shall have full power to sue for, collect, and receive all 

Receivership Assets. Provided, however, that the Receiver shall not attempt to collect any 

amount from a consumer if the Receiver believes the consumer's debt has resulted from 

deceptive acts or practices or other violations of law, without prior Court approval; 

C. Liquidate, through fair market sales or similar transactions, all Receivership 

Assets, following a motion and order from the Court approving the sale or liquidation. The 

Receiver shall tak'.e steps to ensure that the full fair market value of any Asset is obtained by the 

receivership estate in any sale or liquidation; 

D. The Receiver shall make periodic disbursements to the Commission of any 

liquidated Assets and, upon the liquidation of all Receivership Assets, disburse all proceeds to 

the Commission, less its Court-approved fees and expenses; 

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

independent contnactors and technical specialists, as the Receiver deems advisable or necessary 

in the performance of duties and responsibilities under the authority granted by this Order; 

F. Make payments and disbursements from the receivership estate that are necessary 

or advisable for clrrying 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, except payments that the Receiver 

deems necessary , r advisable to secure Receivership Assets, such as rental payments; 

G. Enter into and cancel contracts and purchase insurance as advisable or necessary; 

H. Prevent the inequitable distribution of Assets and determine, adjust, and protect 

the interests of consumers who have transacted business with Settling Defendants and the 

Receivership Entities; 

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I. Make an accounting, as soon as practicable, of the Receivership Assets and 

financial condition of the receivership and file the accounting with the Court and deliver copies 

thereof to all parti, s; 

J. 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 

Receivership Ass Its, or to carry out the Receiver's mandate under this Order, including but not 

limited to, actions challenging fraudulent or voidable transfers; 

K. Demand from any person or entity documents and records pertaining to the 

Receivership Assets within three (3) days after delivery of the Order by mail, courier, email, or 

other method by l hich the recipient receives a copy of this Order, in addition to obtaining 

discovery pursuant to the Federal Rules of Civil Procedure, including subpoenas seeking 

documents and/or testimony under Rule 45; 

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

receivership estate. The Receiver shall deposit all funds of the receivership estate in such 

designated accounts and shall make all payments and disbursements from the receivership estate 

from such accoun s. The Receiver shall serve copies of monthly account statements on all 

parties; 

M. Maintain accurate records of all receipts and expenditures incurred as Receiver; 

N. Cooperate with reasonable requests for information or assistance from any state or 

federal civil or cri inal law enforcement agency; 

0. Suspend business operations of any entity that is a Receivership Asset if in the 

judgment of the J eceiver such operations cannot be continued legally and profitably; and 

P. Ifih the Receiver's judgment the business operations of any Receivership Asset 

cannot be continuL legally and profitably, take all steps necessary to ensure that any of the web 

pages or websites relating to the activities of the Receivership Asset cannot be accessed by the 

public, or are modified for consumer education and/or informational purposes, and take all steps 

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necessary to ensure that any telephone numbers associated with the Receivership Asset cannot 

be accessed by the public, or are answered solely to provide consumer education or information 

regarding the status of operations. 

VIII. STAY OF ACTIONS 

[TIS FURTHER ORDERED that, except by leave of this Court, during the pendency of 

the receivership ordered herein, Defendants and Relief Defendants and their officers, agents, 

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, and all 

others acting for or on behalf of such persons, are hereby enjoined from taking any action that 

would interfere with the exclusive jurisdiction of this Court over the Assets within the 

receivership, 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 any entity that is a 

Receivership Asset; 

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

I 

or proceeding against any of the Receivership Assets or otherwise seeking an interest in any of 

the Receivership Assets, including the issuance or employment of process, except that such 

actions may be commenced if necessary to toll any applicable statute of limitations; 

C. Filing or enforcing any lien on any Receivership Asset, taking or attempting to 

take possession, c stody, or control of any Receivership Asset; or attempting to foreclose, 

forfeit, alter, or te minate any interest in any Receivership Asset, 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 

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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. 

IX. COMPENSATION OF RECEIVER 

IT IS FURffHER 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 1he performance of duties pursuant to this Order and for the cost of actual 

out-of-pocket expL ses incurred by them, from the Assets now held by, in the possession or 

control of, or which may be received by, the receivership estate. The Receiver shall file with 

the Court and serve on the parties periodic requests for the payment of such reasonable 

compensation, witlh the first such request filed no more than sixty (60) days after the date of 

entry of this Orde . The Receiver shall not increase the hourly rates used as the basis for such 

fee applications without prior approval of the Court. 

X. RECEIVERSHIP TERMINATION 

IT IS FURTHER ORDERED that the Receiver must complete all duties within 270 days 

after entry of this Order, but any party or the Receiver may request that the Court extend that 

Receiver's term for good cause. 

XI. CUSTOMER INFORMATION 

IT IS FUR HER ORDERED that Settling Defendants and their officers, agents, 

employees, and at orneys, and all other persons in active concert or participation with any of 

them, who receive actual notice of this Order, are permanently restrained and enjoined from 

directly or indirectly: 

A. Failing to provide sufficient customer information to enable the Commission to 

efficiently administer consumer redress. If a representative of the Commission requests in 

writing any infor ation related to redress, Settling Defendants must provide it, in the form 

prescribed by the ommission, within 14 days; 

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B. Disclosing, using, or benefitting from customer information, including the name, 

address, telephonl number, email address, social security number, other identifying information, 

or any data that enables access to a customer's account (including a credit card, bank account, or 

other financial acdount), that Settling Defendants obtained prior to entry of this Order in 

connection with the allegations in the Amended Complaint; and 

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

custody, or control within 30 days after receipt of written direction to do so from a representative 

of the Commissio I _ 

Provided, j°wever, that customer information need not be disposed of, and may be 

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

court order. 

XII. COOPERATION 

CT CS FUR HER ORDERED that Settling Defendants and Settling Relief Defendant 

must fully cooper te with representatives of the Commission in this case and in any investigation 

related to or assoc ated with the transactions or the occurrences that are the subject of the 

Amended Complaint. Settling Defendants and Settling Relief Defendant must provide truthful 

and complete information, evidence, and testimony. Settling Defendants and Settling Relief 

Defendant must appear for interviews, discovery, hearings, trials, and any other proceedings that 

a Commission representative may reasonably request upon 5 days written notice, or other 

reasonable notice, at such places and times as a Commission representative may designate, 

without the servic of a subpoena. 

XIII. ORDER ACKNOWLEDGMENT 

IT IS FUR HER ORDERED that Settling Defendants and Settling Relief Defendant 

obtain acknowledgments of receipt of this Order: 

A. Each Settling Defendant and Settling Relief Defendant, within seven (7) days of 

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

sworn under penalty of perjury. 

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B. Fo ten ( I 0) years after entry of this Order, each Settling Defendant must, for 

itself and any bus·ness that such Defendant, individually or collectively with any other 

Defendants, is the majority owner or controls directly or indirectly, deliver a copy of this Order 

to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees 

having managerial responsibilities for marketing, sales, or operations, and all agents and 

representatives who participate in marketing or sales; (3) all payment processors as well as all 

consultants or contractors who perform services in connection with marketing or sales; and ( 4) 

any business entity resulting from any change in structure as set forth in the Section titled 

Compliance Reporting. Delivery must occur within seven (7) days of entry of this Order for 

current personnel. For all others, delivery must occur before they assume their responsibilities. 

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

of this Order, that Defendant must obtain, within 30 days, a signed and dated acknowledgment of 

receipt of this Or er. 

XIV. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Settling Defendants make timely submissions to the 

Commission: 

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

compliance report, sworn under penalty of perjury: 

1. Each Settling Defendant must: (a) identify the primary physical, postal, 

and email address and telephone number, as designated points of contact, 

which representatives of the Commission may use to communicate with 

Defendant; (b) identify all of that Defendant's businesses, whether owned 

or controlled, directly or indirectly, by all of their names, telephone 

numbers, and physical, postal, email, and Internet addresses; (c) describe 

the activities of each business, including the goods and services offered, 

the means of advertising, marketing, and sales, and the involvement of any 

other Defendant (which Settling Defendants must describe in detail, 

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including title, position, compensation. and duties); (d) describe in detail 

whether and how that Defendant is in compliance with each Section of 

this Order; and (e) provide a copy of each Order Acknowledgment 

obtained pursuant to this Order, unless previously submitted to the 

Commission. 

2. Additionally, each Settling Defendant must: (a) identify all telephone 

numbers and all physical, postal, email and Internet addresses, including 

all residences; (b) identify all business activities, including any business 

for which such Defendant performs services whether as an employee or 

otherwise and any entity in which such Defendant has any ownership 

interest, whether directly or indirectly; and ( c) describe in detail such 

Defendant's involvement in each such business, including title, role, 

responsibilities, participation, authority, control, and any ownership. 

B. For ten (I 0) years after entry of this Order, each Settling Defendant must submit a 

comp! iance notice, sworn under penalty of perjury, within fourteen ( 14) days of any change in 

the following: 

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

point of contact; or (b) the structure of any entity that Defendant has any 

ownership interest in or controls directly or indirectly that may affect 

compliance obligations arising under this Order, including: creation, 

merger, sale, or dissolution of the entity or any subsidiary, parent, or 

affiliate that engages in any acts or practices subject to this Order. 

2. Additionally, each Settling Defendant must report any change in: (a) 

name, including aliases or fictitious name, or residence address; or (b) title 

or role in any business activity, including any business for which such 

Defendant performs services whether as an employee or otherwise and 

any entity in which such Defendant has any ownership interest, and 

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identify the name, physical address, and any Internet address of the 

business or entity. 

C. Each Settling Defendant must submit to the Commission notice of the filing of 

any bankruptcy pl tition, insolvency proceeding, or similar proceeding by or against such 

Defendant within ll 4 days of its filing. 

D. A~y submission to the Commission required by this Order to be sworn under 

penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: " I declare under penalty of perjury under the laws of the United States of America 

that the foregoing is true and correct. Executed on: __ " and supplying the date, signatory's 

full name, title (if applicable), and signature. 

E. Unless otherwise directed by a Commission representative in writing, all 

submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or 

sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Washington, DC 20580. The subject line must begin: FTC v. Ecological Fox LLC, 

I 8-cv-3309 (D. Md.), FTC File No. X040009. 

XV. RECORDKEEPING 

IT IS FURTHER ORDERED that each Settling Defendant must create certain records for 

ten ( I 0) years after entry of the Order, and retain each such record for 5 years. Specifically, for 

any business that each Settling Defendant, individually or collectively with any other 

Defendants, is a ajority owner or controls directly or indirectly, must create and retain the 

following records! 

A. acdounting records showing the revenues from all goods or services sold; 

B. peJsonnel records showing, for each person providing services, whether as an 

employee or otherwise, that person's: name; addresses; telephone numbers; job title or position; 

dates of service; and (if applicable) the reason for termination; 

17 
Case 1:18-cv-03309-PJM Document 668 Filed 11/06/19 Page 18 of 19

C. records of all consumer complaints and refund requests, whether received directly 

or indirectly, sue as through a third party, and any response; 

D. all records necessary to demonstrate full compliance with each provision of this 

Order, including all submissions to the Commission; and 

E. a copy of each unique advertisement or other marketing material. 

XVI. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring compliance with this 

Order, including Jny failure to transfer any assets as required by this Order or otherwise to 

collect on the judgment entered in this Order: 

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

Commission each Settling Defendant and Settling Relief Defendant must: submit additional 

compliance reportis or other requested information, which must be sworn under penalty of 

perjury; appear for depositions; and produce documents for inspection and copying. The 

Commission is also authorized to obtain discovery, without further leave of court, using any of 

the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic 

depositions), 31 , 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, the Commission is authorized to communicate 

directly with each Settling Defendant and Settling Relief Defendant. Each Settling Defendant 

and Settling Relief Defendant must permit representatives of the Commission to interview any 

employee or other person affiliated with any entity any Settling Defendant or Relief Defendant 

owns or controls, directly or indirectly, who has agreed to such.an interview. The person 

interviewed may have counsel present. 

C. Thl Commission may use all other lawful means, including posing, through its 

representatives as consumers, suppliers, or other individuals or entities, to communicate with 

Settling Defendants or Settling Relief Defendant or any individual or entity affiliated with 

Settling Defendants or Settling Relief Defendant, without the necessity of identification or prior 

notice. Nothing in this Order limits the Commission's lawful use of compulsory process, 

18 
Case 1:18-cv-03309-PJM Document 668 Filed 11/06/19 Page 19 of 19

pursuant to Sections 9 and 20 of the FTC Act, 15 U .S.C. §§ 49, 57b-l. 

D. Upon written .request from a representative of the Commission, any consumer 

reporting ageno/ must furnish consumer reports concerning Settling Defendant Frank Costanzo 

and Settling Rehef Defendant Deborah Connelly, pursuant to Section 604(1) of the Fair Credit 

Reporting Act, 5 U.S.C. §168lb(a)(l). 

XVll. RETENTION OF JURISDICTION 

pwposes of co 

lHER ORDERED that this Court retains jurisdiction of this matter for 

ction, modification, and enforcement of this Order. 

SOORDERE , this b day of /\I c,v 2019. 

SO STIPULATED AND AGREED: 

FOR THE ERAL TRADE COMMISSION: 

Jonathan Co ~Geo en2 ftc.gov) 

Benjamin J. Theisman (btheisman@ftc.gov) 

Christopher J. Erickson (cerickson@ftc.gov) 

Federal Trade Commission 

600 Pennsylvania Ave., N.W., CC-9528 

Washington, DG 20580 

202-326-2551 (Cohen); -2223 (Theisman); 

-3671 (Erickson~; -3197 (facsimile) 

FOR DEFEND~S: 

Ecological Fox 

19 

II /I /Iv3⁄4 

Date 

1 I 2-3/21 

Dater I '