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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 1 of 14 Page ID #:1076 

IN THE UNITED STATES DISTRICT COURT

FOR THE CENTRAL DISTRICT OF CALIFORNIA

FEDERAL TRADE COMMISSION, 

Plaintiff, 

 vs.

APARTMENT HUNTERS, INC., a 

corporation, also d/b/a

WeTakeSection8.com, 

ApartmentHunterz.com, and 

FeaturedRentals.com, 

REAL ESTATE DATA SOLUTIONS, 

INC., a corporation, 

RENTAL HOME LISTINGS INC., a 

corporation, 

UAB APARTMENT HUNTERS LT, a 

limited liability company, 

STEVEN SHAYAN, individually and 

as an officer of Apartment Hunters, 

Inc., Real Estate Data Solutions, Inc., 

Rental Home Listings Inc., and UAB 

Apartment Hunters LT, and

KEVIN SHAYAN, a/k/a Kaveh

Shayan, individually and as a manager 

or de facto officer of Apartment

Hunters, Inc., Real Estate Data

Solutions, Inc., Rental Home Listings 

Inc., and UAB Apartment Hunters LT, 

No. 8:18-CV-1636-AG(DFMx) 

TEMPORARY RESTRAINING 

ORDER WITH EQUITABLE 

RELIEF, AND ORDER TO SHOW

CAUSE WHY A PRELIMINARY

INJUNCTION SHOULD NOT

ISSUE 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 2 of 14 Page ID #:1077 

Defendants. 

Plaintiff, the Federal Trade Commission, has filed its Complaint for 

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

Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b). Pursuant to Fed. 

R. Civ. P. 65, Plaintiff has moved for a temporary restraining order, asset 

preservation, other equitable relief, and an order to show cause why a preliminary 

injunction should not issue against Apartment Hunters, Inc., a corporation, also 

doing business as WeTakeSection8.com, ApartmentHunterz.com, and

FeaturedRentals.com, Real Estate Data Solutions, Inc. Rental Home Listings, Inc. 

and UAB Apartment Hunters LT, Steven Shayan, individually and as an officer of 

Apartment Hunters, Inc., and Kevin Shayan, a.k.a. Kaveh Shayan, individually and 

as a manager and de facto officer of Apartment Hunters, Inc. (collectively,

“Defendants”). 

FINDINGS OF FACT 

The Court, having considered the Complaint, the Application for Temporary 

Restraining Order, declarations, exhibits, and the memorandum of points and 

authorities filed in support thereof, and being otherwise advised, finds that: 

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 make false, misleading, or unsubstantiated claims that 

consumers who subscribe to their websites find rental housing, including housing 

that is approved for Section 8 Housing Vouchers, within seven business days or 

less, that the rental listings on the Defendants’ websites are accurate, up-to-date, 

and available for consumers to rent, that Defendants have exclusive rights to list 

certain rental listings on their websites, and that consumers cannot find these 

listings on free websites. 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 3 of 14 Page ID #:1078 

C. 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), and that Plaintiff is therefore likely to prevail on the merits of this 

action. The FTC has established a likelihood of success in showing that 

Defendants have made material misrepresentations in the promotion and sale of 

subscriptions for rental listings to numerous consumers, as demonstrated by screen 

captures of Defendants’ websites, declarations and complaints from consumers, 

declarations and complaints from landlords, a declaration from a representative of 

the Housing Authority for San Bernardino County, the declaration of a FTC 

investigator, and the additional documentation filed by the FTC. 

D. There is good cause to believe that immediate and irreparable harm 

will result from Defendants’ ongoing violations of the FTC Act unless Defendants 

are restrained and enjoined by order of this Court. 

E. 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, disgorgement or refunds—will occur from the 

sale, transfer, destruction or other disposition or concealment by Defendants of 

their Assets, unless Defendants are immediately restrained and enjoined by order 

of this Court from doing so outside the ordinary course of business. 

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

to the Court’s ability to resolve the case on the merits will occur absent a Court 

Order requiring the preservation of Defendants documents, records, and databases. 

G. Defendants have been noticed and provided an opportunity to defend 

Plaintiff’s request for a Temporary Restraining Order.

H. Good cause exists permitting the Plaintiff to take limited expedited 

discovery.

I. Weighing the equities and considering Plaintiff’s likelihood of

ultimate success on the merits, a temporary restraining order with expedited 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 4 of 14 Page ID #:1079 

discovery, a prohibition on listing, or marketing or selling access to, rental listings 

for properties that accept, or purportedly accept, Section 8 vouchers or other 

government housing subsidies, and other equitable relief is in the public interest. 

J. This Court has authority to issue this Order pursuant to Section 13(b) 

of the FTC Act, 15 U.S.C. § 53(b); Federal Rule of Civil Procedure 65. 

K. 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. “Advertisement” or “advertising” means any written or verbal 

statement, illustration, or depiction that promotes the sale of a good or service or is 

designed to increase consumer interest in a brand, good, or service. Advertising 

media include, but are not limited to, packaging and labeling; promotional 

materials; print; television; radio; mobile applications; and Internet, social media, 

and other digital content. 

B. “Asset” includes any legal or equitable interest in, right to, or claim 

to, any real and personal property, including, but not limited to, websites, chattel, 

goods, instruments, equipment, fixtures, general intangibles, inventory, checks, 

notes, leaseholds, effects, contracts, mail or other deliveries, shares of stock, 

interest in mutual funds, lists of consumer names, accounts, credits, premises, 

receivables, funds, and cash, wherever located, whether in the United States or 

abroad. 

C. “Corporate Defendant(s)” means Apartment Hunters, Inc., also d/b/a 

WeTakeSection8.com, ApartmentHunterz.com, and FeaturedRentals.com; Real

Estate Data Solutions, Inc.; Rental Home Listings Inc.; UAB Apartment Hunters 

LT; individually or collectively, and each of their subsidiaries, affiliates, 

successors, and assigns. 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 5 of 14 Page ID #:1080 

D. “Defendant(s)” means Corporate Defendants, Kevin Shayan, and 

Steven Shayan, individually, collectively, or in any combination. 

E. “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, databases, electronic correspondence, including e-mail, chats, 

and instant messages, contracts, accounting data, advertisements, FTP Logs, Server 

Access Logs, books, written or printed records, handwritten notes, telephone or 

videoconference 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.

F. “Housing Voucher” means a rent subsidy voucher issued by a 

government housing agency pursuant to Section 8 of the United States Housing 

Act of 1937, 42 U.S.C. § 1437f. 

G. “Individual Defendants” means Kevin Shayan and Steven Shayan, 

individually or collectively.

ORDER 

I. PROHIBITION AGAINST LISTING AND MARKETING OF

GOVERNMENT-SUBSIDIZED RENTAL HOUSING, INCLUDING 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 6 of 14 Page ID #:1081 

ANY RENTAL PROPERTIES THAT ACCEPT HOUSING 

VOUCHERS 

It is Ordered that Defendants are restrained and enjoined from advertising, 

marketing, promoting, offering for sale, or selling, or assisting others in the 

advertising, marketing, promoting, offering for sale, or selling of, access to rental 

listings for properties that have been approved for, accept, or purportedly accept 

Housing Vouchers or any type of government rent subsidy.

II. PROHIBITION AGAINST THE USE OF CERTAIN TERMS IN 

CONNECTION WITH MARKETING OF ACCESS TO RENTAL

LISTINGS

It is further Ordered that Defendants, Defendants’ 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 by personal service or 

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

marketing, promoting, offering for sale, or selling of subscriptions or access to 

rental listings are restrained and enjoined from using in any domain names, 

Uniform Resource Locators (URLs) for public-facing websites, keywords 

purchased to advertise Defendants’ services on search engines, mobile 

applications, or business names or aliases, any of the following terms: 

 “Section 8,” 

 “Voucher,” 

 “Subsidized,”

 “Affordable housing,”

 “Low-income,”

 “Public housing,”

 “Income-based,” or

 “Project-based.”

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 7 of 14 Page ID #:1082 

III. PROHIBITION AGAINST DECEPTIVE CLAIMS RELATING TO 

RENTAL LISTINGS, INCLUDING FALSE OR UNSUBSTANTIATED 

CLAIMS 

It is further Ordered that Defendants, Defendants’ 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 by personal service or 

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

marketing, promoting, offering for sale, or selling of subscriptions or access to 

rental listings are restrained and enjoined from:

A. making any misrepresentation, or assisting others in making any

misrepresentation, expressly or by implication:

1. about the number of listings contained in any website or 

database; 

2. about the length of time it takes users of a website or database 

to find rental housing; 

3. that rental listings on a website or database contain accurate 

contact information for landlords; 

4. that rental listings on a website or database are up to date; 

5. that rental listings on a website or database are exclusive or not

found on other websites; 

6. that rental listings on a website or database are available for

rent; or 

7. about any other fact material to consumers concerning the 

purchase of a subscription or access to rental listings, such as: 

the total costs; any material restrictions, limitations, or 

conditions; the nature or terms of a refund or cancellation; or

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

central characteristics; and 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 8 of 14 Page ID #:1083 

B. making or assisting others in making any representation, expressly or 

by implication, about the benefits, performance, or efficacy of websites or 

databases that contain rental listings (including the representations set forth in 

Section III.A.1-9, above), unless: 

1. the representation is non-misleading;

2. there is a reasonable basis for the representation at the time the 

representation is made; and 

3. there is written substantiation for the representation in the 

Defendants’ possession at the time the representation is made. 

IV. PROHIBITION AGAINST MISREPRESENTATIONS RELATING TO 

ANY GOOD OR SERVICE 

It is further Ordered that Defendants, Defendants’ 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 by personal service or 

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

marketing, promoting, offering for sale, or selling of any good or service are 

restrained and enjoined from misrepresenting, or assisting others in 

misrepresenting, expressly or by implication: the total costs; any material 

restrictions, limitations, or conditions; any material aspect of its performance, 

efficacy, nature, or central characteristics; the nature or terms of a refund or 

cancellation; or any other material fact.

V. PRESERVATION OF DOCUMENTS, RECORDS, AND DATABASES 

It is further ordered that Defendants, Defendants’ 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, are hereby temporarily restrained and enjoined from:

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

altering, transferring, or otherwise disposing of, in any manner, directly or 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 9 of 14 Page ID #:1084 

indirectly, Documents, records, or databases that relate to: (1) the business, 

business practices, Assets, or business or personal finances of any Defendant; (2) 

the business practices or finances of entities directly or indirectly under the control 

of any Defendant; or (3) the business practices or finances of entities directly or 

indirectly under common control with any other Defendant; and 

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

accurately, fairly, and completely reflect Defendants’ incomes, disbursements, 

transactions, and use of Defendants’ Assets. 

VI. 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, provide Plaintiff with a sworn 

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

include the names, physical addresses, phone number, 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 persons or entities in active concert or 

participation with them to disregard this Order or believe that they are not bound 

by its provisions.

VII. ASSET PRESERVATION

It is further ordered that Defendants shall take all steps necessary to 

preserve Defendants’ Assets, as well as the Assets of its affiliated companies, and 

to refrain from liquidating, converting, encumbering, pledging, loaning, selling, 

dissipating, disbursing, granting a lien or security interest or other interest in, or 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 10 of 14 Page ID #:1085 

otherwise disposing of any funds, real or personal property, or other Assets, outside 

of the ordinary course of business. 

VIII. FINANCIAL DISCLOSURES 

It is further ordered that within five (5) days following the service of this 

Order, each Defendant shall prepare and deliver to Plaintiff’s counsel: 

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;

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

Tax Return) for each Individual and Corporate Defendant. 

IX. LIMITED EXPEDITED DISCOVERY 

It is further ordered that, notwithstanding the provisions of the Fed. R. Civ. 

P. 26(d) and (f) and 30(a)(2)(c), and pursuant to Fed. R. Civ. P. 30(a), 34, and 45, 

Plaintiff is granted leave, at any time after service of this Order, to conduct limited 

expedited discovery for the purpose of discovering: (1) the nature, location, status, 

and extent of Defendants’ Assets; (2) the nature, location, and extent of 

Defendants’ business transactions and operations; (3) Documents reflecting 

Defendants’ business transactions and operations; or (4) compliance with this 

Order. The limited expedited discovery set forth in this Section shall proceed as 

follows: 

A. Plaintiff may take the deposition of parties and non-parties. Fortyeight (48) hours’ notice shall be sufficient notice for such depositions. The 

limitations and conditions set forth in Rules 30(a)(2)(B) and 31(a)(2)(B) of the 

Federal Rules of Civil Procedure regarding subsequent depositions of an individual 

shall not apply to depositions taken pursuant to this Section. Any such deposition 

taken pursuant to this Section shall not be counted towards the deposition limit set 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 11 of 14 Page ID #:1086 

forth in Rules 30(a)(2)(A) and 31(a)(2)(A) and depositions may be taken by 

telephone or other remote electronic means; 

B. Plaintiff may serve upon parties requests for production of Documents

or inspection that require production or inspection within five (5) calendar days of 

service, provided, however, that three (3) calendar days of notice shall be deemed 

sufficient for the production of any such Documents that are maintained or stored 

only in an electronic format. 

C. Plaintiff may serve upon parties interrogatories that require response 

within five (5) calendar days after Plaintiff serves such interrogatories;

D. The Plaintiff may serve subpoenas upon non-parties that direct 

production or inspection within five (5) calendar days of service. 

E. Service of discovery upon a party to this action, taken pursuant to this 

Section, shall be sufficient if made by facsimile, email, or by overnight delivery. 

F. Any expedited discovery taken pursuant to this Section is in addition 

to, and is not subject to, the limits on discovery set forth in the Federal Rules of 

Civil Procedure and the Local Rules of this Court. The expedited discovery 

permitted by this Section does not require a meeting or conference of the parties, 

pursuant to Rules 26(d) & (f) of the Federal Rules of Civil Procedure. 

G. The Parties are exempted from making initial disclosures under Fed. 

R. Civ. P. 26(a)(1) until further order of this Court.

X. SERVICE OF THIS ORDER 

It is further ordered that copies of this Order as well as the Application for 

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

filed contemporaneously with that Application (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 Plaintiff, by any law enforcement 

agency, or by private process server, upon any Defendant or any Person (including 

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Case 8:18-cv-01636-AG-DFM Document 14 Filed 09/13/18 Page 12 of 14 Page ID #:1087 

any financial institution) that may have possession, custody or control of any Asset 

or Document of any 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. 

XI. CORRESPONDENCE AND SERVICE ON PLAINTIFF 

It is further ordered that, for the purpose of this Order, all correspondence 

and service of pleadings on Plaintiff shall be addressed to: 

Rhonda Perkins (rperkins@ftc.gov) 

Amanda Grier (agrier@ftc.gov) 

Federal Trade Commission 

600 Pennsylvania Ave., NW 

Mailstop CC-8528 

Washington, DC 20580 

Fax: 202-326-3395 

XII. PRELIMINARY INJUNCTION SHOW CAUSE HEARING 

It is further ordered that, pursuant to Fed. R. Civ. P. 65(b), Defendants 

shall appear before this Court on September 24, 2018, at 10:00 a.m. to show 

cause, if there is any, why this Court should not enter a preliminary injunction, 

pending final ruling on the Complaint against Defendants, enjoining the violations 

of the law alleged in the Complaint, continuing the preservation of their Assets, 

and imposing such additional relief as may be appropriate. 

XIII. BRIEFS AND AFFIDAVITS CONCERNING PRELIMINARY

INJUNCTION 

It is further ordered that: 

A. Defendants shall file with the Court and serve on Plaintiff’s counsel 

any answering pleadings, affidavits, motions, expert reports or declarations, or 

legal memoranda no later than four (4) business days prior to the order to show 

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cause hearing scheduled pursuant to Section XII of this Order. Plaintiff may file 

responsive or supplemental pleadings, materials, affidavits, or memoranda with the 

Court and serve the same on counsel for Defendants no later than one (2) business 

days prior to the order to show Cause hearing. Provided that such affidavits, 

pleadings, motions, expert reports, declarations, legal memoranda or oppositions 

must be served by personal or overnight delivery, facsimile or email, and be 

received by the other party or parties no later than 5:00 p.m. Pacific Time on the 

appropriate dates set forth in this Section. 

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

injunction shall be resolved on the pleadings, declarations, exhibits, and 

memoranda filed by, and oral argument of, the parties. Live testimony shall be 

heard only on further order of this Court. Any motion to permit such testimony 

shall be filed with the Court and served on counsel for the other parties at least five 

(5) business days prior to the preliminary injunction hearing in this matter. Such 

motion shall set forth the name, address, and telephone number of each proposed 

witness, a detailed summary or affidavit revealing the substance of each proposed 

witness’s expected testimony, and an explanation of why the taking of live 

testimony would be helpful to this Court. Any papers opposing a timely motion to 

present live testimony or to present live testimony in response to another party’s 

timely motion to present live testimony shall be filed with this Court and served on 

the other parties at least three (3) business days prior to the order to show cause 

hearing. 

Provided, however, that service shall be performed by personal or overnight 

delivery, facsimile or email, and Documents shall be delivered so that they shall be 

received by the other parties no later than 5:00 p.m. Pacific Time on the 

appropriate dates provided in this Section. 

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XIV. RETENTION OF JURISDICTION 

It is further ordered that this Court shall retain jurisdiction of this 

matter for all purposes, including the construction, modification, and enforcement 

of this Order.

SO ORDERED, this 13th day of September, 2018, at 3:30 p.m. 

UNITED STATES DISTRICT JUDGE 

ANDREW J GUILFORD 

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