Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 1 of 61 

UNITED STATES DISTRICT COURT
 

SOUTHERN DISTRICT OF FLORIDA
 

Case No. 17-CV-80619-WPD
 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

STRATEGIC STUDENT SOLUTIONS LLC, a 

limited liability company, STRATEGIC CREDIT 

SOLUTIONS LLC, a limited liability company, 

STRATEGIC DEBT SOLUTIONS LLC, a limited 

liability company, STRATEGIC DOC PREP 

SOLUTIONS LLC, a limited liability company, 

STUDENT RELIEF CENTER LLC, a limited 

liability company, CREDIT RELIEF CENTER 

LLC, a limited liability company, and 

DAVE GREEN, individually and as an officer of 

STRATEGIC STUDENT SOLUTIONS LLC, 

STRATEGIC CREDIT SOLUTIONS LLC, 

STRATEGIC DEBT SOLUTIONS LLC, 

STRATEGIC DOC PREP SOLUTIONS LLC, 

STUDENT RELIEF CENTER LLC, and CREDIT 

RELIEF CENTER LLC, 

Defendants, and 

DG INVESTMENT PROPERTIES LLC, 

Relief Defendant. 

FILED UNDER SEAL
 

EX PARTE TEMPORARY RESTRAINING ORDER WITH
 

ASSET FREEZE, APPOINTMENT OF A TEMPORARY RECEIVER, 

AND OTHER EQUITABLE RELIEF, AND ORDER TO SHOW CAUSE
 

WHY A PRELIMINARY INJUNCTION SHOULD NOT ISSUE
 

1
 
 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 2 of 61 

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), the Telemarketing and Consumer Fraud and 

Abuse Prevention Act (“Telemarketing Act”), 15 U.S.C. §§ 6101-6108, and Section 410(b) of 

the Credit Repair Organizations Act, 15 U.S.C. § 1679h(b), and has moved, pursuant to 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 should not issue against Defendants. 

The Court, having considered the Complaint, the ex parte Motion for a Temporary 

Restraining Order, declarations, exhibits, and the memorandum of points and authorities filed in 

support thereof, and being otherwise advised, GRANTS Plaintiff’s motion for a temporary 

restraining order and FINDS and ORDERS as follows: 

FINDINGS OF FACT 

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. There is good cause to believe that Defendants Dave Green, Strategic Student 

Solutions LLC, Strategic Credit Solutions LLC, Strategic Debt Solutions LLC, Strategic Doc 

Prep Solutions LLC, Student Relief Center LLC, and Credit Relief Center LLC 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 FTC’s Telemarketing Sales Rule (“TSR”), 16 C.F.R. Part 310, and the Credit Repair 

Organizations Act (“CROA”), 15 U.S.C. §§ 1679-1679j, and that Plaintiff is therefore likely to 

prevail on the merits of this action. As demonstrated by the consumer declarations, Department 

2
 
 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 3 of 61 

of Education and loan servicer declarations, consumer complaints, website captures, corporate 

filings, and records from banks and other corporate service providers, the FTC has established a 

likelihood of success in showing that Defendants have materially misrepresented their debt relief 

and credit repair services and have charged illegal advance fees. 

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

from Defendants’ ongoing violations of the FTC Act, the TSR, and the CROA unless Defendants 

are restrained and enjoined by order of this Court. 

D. There is good cause to believe that Relief Defendant DG Investment Properties 

LLC received funds or assets that can be traced directly to Defendants’ unlawful acts or practices 

and has no legitimate claim to those funds. 

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 or Relief Defendant of their assets or records, unless 

Defendants and Relief Defendant are immediately restrained and enjoined by order of this Court; 

and that, in accordance with Fed. R. Civ. P. 65(b), the interests of justice require that this Order 

be granted without prior notice to Defendants and Relief Defendant. Thus, there is good cause 

for relieving Plaintiff of the duty to provide Defendants and Relief Defendant with prior notice 

of its Motion for a Temporary Restraining Order. 

F. Good cause exists for appointing a temporary receiver over the Corporate 

Defendants and their subsidiaries; freezing Defendants’ assets; permitting the Plaintiff and the 

Receiver immediate access to the Defendants’ business premises; and permitting the Plaintiff and 

the Receiver to take expedited discovery. 

3
 
 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 4 of 61 

G. Weighing the equities and considering Plaintiff’s likelihood of ultimate success 

on the merits, a temporary restraining order with an asset freeze, the appointment of a temporary 

receiver, immediate access to business premises, expedited discovery, and other equitable relief 

is in the public interest. 

H. This Court has authority to issue this Order pursuant to Section 13(b) of the FTC 

Act, 15 U.S.C. § 53(b); 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. “Corporate Defendants” means Strategic Student Solutions LLC, Strategic 

Credit Solutions LLC, Strategic Debt Solutions LLC, Strategic Doc Prep Solutions LLC, Student 

Relief Center LLC, Credit Relief Center LLC, and each of their subsidiaries, affiliates, 

successors, and assigns. 

C. “Credit Repair Service” means any service for the express or implied purpose of 

improving any consumer’s credit record, credit history, or credit rating; or providing advice or 

assistance to any consumer with regard to any activity or service the purpose of which is to 

improve a consumer’s credit record, credit history, or credit rating. 

D. “Debt Relief Service” means any program or service represented, directly or by 

implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the 

debt between a person and one or more unsecured creditors or debt collectors, including, but not 

4
 
 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 5 of 61 

limited to, a reduction in the balance, interest rate, or fees owed by a person to an unsecured 

creditor or debt collector. 

E. “Defendant(s)” means Corporate Defendants and Dave Green, individually, 

collectively, or in any combination. 

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

“document” and “electronically stored information” in 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 “cloud based” 

electronic storage. 

H. “Receiver” means the temporary receiver appointed in Section XII of this Order 

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

5
 
 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 6 of 61 

I. “Relief Defendant” means DG Investment Properties LLC, and each of its 

subsidiaries, affiliates, successors, and assigns. 

ORDER 

I.	 RESTRICTIONS ON ADVANCE FEES FOR DEBT RELIEF AND CREDIT 

REPAIR SERVICES 

IT IS THEREFORE ORDERED that the Defendants, and their officers, agents, 

employees, and those persons or entities in active concert or participation with any of them who 

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

and enjoined from: 

A. providing, offering to provide, or arranging for others to provide any debt relief 

service and requesting or receiving payment of any fees or consideration for any debt relief 

service until and unless: 

1. the seller or telemarketer has renegotiated, settled, reduced, or otherwise 

altered the terms of at least one debt pursuant to a settlement agreement, debt 

management plan, or other such valid contractual agreement executed by the 

customer; 

2. the customer has made at least one payment pursuant to that settlement 

agreement, debt management plan, or other valid contractual agreement between 

the customer and the creditor or debt collector; and 

3. to the extent that debts enrolled in a service are renegotiated, settled, 

reduced, or otherwise altered individually, the fee or consideration either: 

6
 
 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 7 of 61 

a. bears the same proportional relationship to the total fee for 

renegotiating, settling, reducing, or altering the terms of the entire debt 

balance as the individual debt amount bears to the entire debt amount. 

The individual debt amount and the entire debt amount are those owed at 

the time the debt was enrolled in the service; or 

b. is a percentage of the amount saved as a result of the renegotiation, 

settlement, reduction, or alteration. The percentage charged cannot 

change from one individual debt to another. The amount saved is the 

difference between the amount owed at the time the debt was enrolled in 

the service and the amount actually paid to satisfy the debt; and 

B. providing, offering to provide, or arranging for others to provide any credit repair 

service and charging or receiving money or other valuable consideration for the performance of 

credit repair services before the services are fully performed. 

II.	 PROHIBITION ON DECEPTIVE OR UNSUBSTANTIATED 

REPRESENTATIONS 

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 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 debt relief 

or credit repair service, are temporarily restrained and enjoined from: 

A. misrepresenting or assisting others in misrepresenting, expressly or by 

implication: 

1. that Defendants will enroll consumers in student loan forgiveness or other 

programs that would lower their payments or balances; 

7
 
 

 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 8 of 61 

2. that consumers’ monthly payments to Defendants will be applied to pay 

off the consumers’ loans; 

3. that consumers’ student loan debt will be forgiven in three years or less 

after payment of initial fees; 

4. that if a consumer cancels his or her enrollment in a federal student loan 

forgiveness program, it is very difficult or impossible to re-enter another 

forgiveness program; 

5. that consumers’ credit will be improved as a result of Defendants’ 

program; and 

6. any other fact material to consumers concerning any debt relief or credit 

repair service, such as: the total costs; any material restrictions, limitations, or 

conditions; or any material aspect of its performance, efficacy, nature, or central 

characteristics; and 

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

implication, about the benefits, performance, or efficacy of any product or service, unless the 

representation is non-misleading and, at the time such representation is made, Defendants 

possess and rely upon competent and reliable evidence that 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. 

III. PROHIBITION ON RELEASE OF CUSTOMER INFORMATION 

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: 

8
 
 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 9 of 61 

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. 

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

enforcement agency, 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. 

IV. ASSET FREEZE 

IT IS FURTHER ORDERED that 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, are hereby temporarily 

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, wherever 

located, including outside the United States, that are: 

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

but not limited to those for which a Defendant is a signatory on the account; 

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

9
 
 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 10 of 61 

3. in the actual or constructive possession of any 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. 

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

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

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 or bank 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 of which any 

Defendant is an officer, director, member, or manager. This includes any corporate bankcard or 

corporate credit card account for which any 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. 

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

time this Order is entered; (2) Assets obtained by Defendants after this Order is 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. 

10
 
 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 11 of 61 

V. DUTIES OF ASSET HOLDERS AND OTHER THIRD PARTIES 

IT IS FURTHER ORDERED that any financial or brokerage institution, Electronic 

Data Host, credit card processor, payment processor, merchant bank, acquiring bank, 

independent sales organization, third party processor, payment gateway, insurance company, 

business entity, or person who receives actual notice of this Order (by service or otherwise) and 

that (a) holds, controls, or maintains custody, through an account or otherwise, of any Document 

or Asset that is: owned or controlled, directly or indirectly, by any Defendant; held, in part or in 

whole, for the benefit of any Defendant; in the actual or constructive possession of any 

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; (b) holds, controls, or 

maintains custody of any Document or Asset associated with credits, debits or charges made on 

behalf of any 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 held, controlled, 

or maintained custody of any such Document, Asset, or account at any time since the date of 

entry of this Order 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; 

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, either individually or 

jointly, or otherwise subject to access by any Defendant; 

11
 
 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 12 of 61 

C. Provide Plaintiff’s counsel and the Receiver, within three (3) business days of 

receiving a copy of this Order, a sworn statement setting forth: 

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 mail box, or 

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

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

D. Upon the request of Plaintiff’s counsel or the Receiver, promptly provide 

Plaintiff’s counsel and the Receiver with copies of all records or other Documents pertaining to 

such account or Asset, 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. 

VI. FINANCIAL DISCLOSURES 

IT IS FURTHER ORDERED that each Defendant and Relief Defendant, within five (5) 

days of service of this Order upon them, shall prepare and deliver to Plaintiff’s counsel and the 

Receiver (1) completed financial statements on the forms attached to this Order as Attachment 

A (Financial Statement of Individual Defendant) for the Individual Defendant, and Attachment 

12
 
 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 13 of 61 

B (Financial Statement of Corporate Defendant) for each Corporate Defendant and Relief 

Defendant and (2) a completed statement, verified under oath, of all payments, transfers or 

assignments of funds, assets, or property worth $1,000 or more since May 15, 2012. Such 

statement shall include: (a) the amount transferred or assigned; (b) the name of each transferee or 

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

paid by the Defendant or Relief Defendant. Each statement shall specify the name and address 

of each financial institution and brokerage firm at which the Defendant or Relief Defendant has 

accounts or safe deposit boxes. Said statements shall include assets held in foreign as well as 

domestic accounts. 

VII. FOREIGN ASSET REPATRIATION 

IT IS FURTHER ORDERED that within five (5) days following the service of this 

Order, each Defendant shall: 

A. Provide Plaintiff’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 or entity for the benefit of any 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 (3) under the direct or indirect control, whether 

jointly or singly, of any Defendant; 

B. Take all steps necessary to provide Plaintiff’s counsel and Receiver 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 C. 

13
 
 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 14 of 61 

C. Transfer to the territory of the United States and deliver to the Receiver all 

Documents and Assets located in foreign countries which are: (1) titled in the name, individually 

or jointly, of any Defendant; (2) held by any person or entity for the benefit of any 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 (3) under the direct or 

indirect control, whether jointly or singly, of any Defendant; and 

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

Plaintiff 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. 

VIII. NON-INTERFERENCE WITH REPATRIATION 

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 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 all Defendants’ 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 

14
 
 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 15 of 61 

a court order, until such time that all Defendants’ Assets have been fully repatriated pursuant to 

this Order. 

IX. CONSUMER CREDIT REPORTS 

IT IS FURTHER ORDERED that Plaintiff may obtain credit reports concerning any 

Defendants or Relief Defendant 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 Plaintiff. 

X. PRESERVATION OF RECORDS 

IT IS FURTHER ORDERED that Defendants and Relief Defendant, 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, 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 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 and Relief Defendant’s incomes, disbursements, 

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

15
 
 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 16 of 61 

XI. REPORT OF NEW BUSINESS ACTIVITY
 

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 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, or corporation, without first providing Plaintiff’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. 

XII. TEMPORARY RECEIVER 

IT IS FURTHER ORDERED that Charles H. Lichtman is appointed as temporary 

receiver of the Corporate Defendants with full powers of an equity receiver. The Receiver shall 

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

XIII. 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 Corporate Defendants by removing, as the Receiver deems 

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

agent of any Corporate Defendant from control of, management of, or participation in, the affairs 

of the Corporate Defendant; 

16
 
 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 17 of 61 

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

or in the possession, custody, or under the control of, any Corporate Defendant, wherever 

situated; 

C. Obtain, conserve, hold, manage, and prevent the loss of all Assets of the 

Corporate Defendants, 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 Corporate Defendants. The Receiver shall have full 

power to sue for, collect, and receive, all Assets of the Corporate Defendants and of other 

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

of, the Corporate Defendants. 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 Corporate 

Defendants has resulted from the deceptive acts or practices or other violations of law alleged in 

the Complaint in this matter, without prior Court approval; 

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

Corporate Defendants, and perform all acts necessary or advisable to preserve such Documents. 

The Receiver shall: divert mail; preserve all Documents of the Corporate Defendants 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 

Corporate Defendants 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; 

17
 
 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 18 of 61 

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

independent contractors 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 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 Corporate Defendants prior to 

the date of entry of this Order, except payments that the Receiver deems necessary or advisable 

to secure Assets of the Corporate Defendants, such as rental payments; 

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

from which the Corporate Defendants 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 

Corporate Defendants. 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; 

18
 
 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 19 of 61 

H. 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 Defendants, and to 

provide access to all such web page or websites to Plaintiff’s representatives, agents, and 

assistants, as well as Defendants and their representatives; 

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

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

the interests of consumers who have transacted business with the Corporate Defendants; 

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

of the receivership and file the accounting with the Court and deliver copies thereof to all parties; 

L. 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 Corporate Defendants, or to carry out the Receiver’s mandate under this Order, including but 

not limited to, actions challenging fraudulent or voidable transfers; 

M. Issue subpoenas to obtain Documents and records pertaining to the Receivership, 

and conduct discovery in this action on behalf of the receivership estate; 

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

Corporate Defendants. The Receiver shall deposit all funds of the Corporate Defendants 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; 

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

P. Allow the Plaintiff’s representatives, agents, and assistants, as well as 

19
 
 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 20 of 61 

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

Corporate Defendants, or any other premises where the Corporate Defendants 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 Corporate Defendants or their 

agents. The Receiver shall have the discretion to determine the time, manner, and reasonable 

conditions of such access; 

Q. Allow the Plaintiff’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 Corporate Defendants; 

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

federal civil or criminal law enforcement agency; 

S. Suspend business operations of the Corporate Defendants if in the judgment of the 

Receiver such operations cannot be continued legally and profitably; 

T. Take all steps necessary to ensure that any of the Corporate Defendants’ web 

pages or websites relating to debt relief or credit repair services cannot be accessed by the public, 

or are modified for consumer education and/or informational purposes, if the Receiver deems it 

necessary or advisable; 

U. Take all steps necessary to ensure that any telephone numbers associated with the 

Corporate Defendants cannot be accessed by the public, or are answered solely to provide 

consumer education or information regarding the status of operations, if the Receiver deems it 

necessary or advisable; and 

V. File timely reports with the Court at reasonable intervals, or as otherwise directed 

by the Court. 

20
 
 

 

 

 

 

 

 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 21 of 61 

XIV. TRANSFER OF RECEIVERSHIP PROPERTY TO RECEIVER 

IT IS FURTHER ORDERED that Defendants, Relief Defendant, and any other person 

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

Defendants 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 Corporate Defendants 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 Corporate Defendants; 

B. All Documents of or pertaining to the Corporate Defendants; 

C. All computers, electronic devices, mobile devices and machines used to conduct 

the business of the Corporate Defendants; 

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

are under the direction, possession, custody, or control of the Corporate Defendants; and 

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

access to any Assets or Documents of or pertaining to the Corporate Defendants, including 

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

and remote), Electronic Data Hosts, or other property. 

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. 

XV. PROVISION OF INFORMATION TO RECEIVER 

IT IS FURTHER ORDERED that Defendants shall immediately provide to the 

Receiver: 

21
 
 

 

 

 

 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 22 of 61 

A. A list of all Assets and accounts of the Corporate Defendants that are held in any 

name other than the name of a Corporate Defendant, or by any person or entity other than a 

Corporate Defendant; and 

B. A list of all agents, employees, officers, attorneys, and servants of the Corporate 

Defendants, and those persons in active concert and participation with the Corporate Defendants, 

or who have been associated with or done business with the Corporate Defendants. 

XVI. COOPERATION WITH THE RECEIVER 

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

officers, agents, 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 of 

records relating to the Corporate Defendants who receive actual notice of this Order shall fully 

cooperate with and assist the Receiver. 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, or machines (onsite or remotely) or any cloud account (including the specific 

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

owe money to any Corporate Defendant 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 and 

sales of the Corporate Defendants. 

XVII. NON-INTERFERENCE WITH THE RECEIVER 

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

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

22
 
 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 23 of 61 

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 Corporate Defendants; 

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 Corporate Defendants; 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. 

XVIII. STAY OF ACTIONS 

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

of the receivership ordered herein, Defendants, Relief Defendant, Defendants’ 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 Corporate Defendants, 

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 

Corporate Defendants, 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 Corporate 

Defendants; 

23
 
 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 24 of 61 

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

or proceeding against the Corporate Defendants, including the issuance or employment of 

process against the Corporate Defendants, 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 Corporate Defendants, taking or 

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

attempting to foreclose, forfeit, alter, or terminate any interest in any Asset of the Corporate 

Defendants, 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. 

XIX. 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 Corporate Defendants. 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 

24
 
 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 25 of 61 

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. 

XX. RECEIVER’S BOND 

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

bond in the sum of $10,000 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. 28 U.S.C. § 754. 

XXI. IMMEDIATE ACCESS TO BUSINESS PREMISES AND RECORDS 

IT IS FURTHER ORDERED that: 

A. In order to allow Plaintiff and the Receiver to preserve Assets and evidence 

relevant to this action and to expedite discovery, Plaintiff and the Receiver, and their 

representatives, agents, contractors, and assistants, shall have immediate access to the business 

premises and storage facilities owned, controlled, or used by the Corporate Defendants. Such 

locations include, but are not limited to, 1489 W. Palmetto Park Rd., Suite Nos. 467 and 495, 

Boca Raton, FL 33486, and any offsite location or commercial mailbox used by the Corporate 

Defendants. The Receiver may exclude Defendants, Relief Defendant, and their employees from 

the business premises during the immediate access. 

B. Plaintiff and the Receiver, and their representatives, agents, contractors, and 

assistants, shall also have immediate access to the records of the Corporate Defendants and the 

Relief Defendant, and are authorized to remove Documents from the Corporate Defendants’ 

premises in order that they may be inspected, inventoried, and copied. Plaintiff shall return any 

removed materials to the Receiver within five (5) business days of completing inventorying and 

copying, or such time as is agreed upon by Plaintiff and the Receiver; 

25
 
 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 26 of 61 

C. Plaintiff’s access to the Corporate Defendants’ and Relief Defendant’s documents 

pursuant to this Section shall not provide grounds for any Defendant or Relief Defendant to 

object to any subsequent request for documents served by Plaintiff. 

D. Plaintiff and the Receiver, and their representatives, agents, contractors, and 

assistants, are authorized to obtain the assistance of federal, state, and local law enforcement 

officers as they deem necessary to effect service and to implement peacefully the provisions of 

this Order; 

E. If any Documents, computers, or electronic storage devices containing 

information related to the business practices or finances of the Corporate Defendants are at a 

location other than those listed herein, including personal residence(s) of any Defendant, then, 

immediately upon receiving notice of this order, Defendants and Relief Defendant shall produce 

to the Receiver all such Documents, computers, and electronic storage devices, along with any 

codes or passwords needed for access. In order to prevent the destruction of computer data, upon 

service of this Order, any such computers or electronic storage devices shall be powered down in 

the normal course of the operating system used on such devices and shall not be powered up or 

used until produced for copying and inspection; and 

F. If any communications or records of any Corporate Defendant are stored with an 

Electronic Data Host, such Entity shall, immediately upon receiving notice of this order, provide 

the Receiver with the user name, passwords, and any other login credential needed to access the 

communications and records, and shall not attempt to access, or cause a third-party to attempt to 

access, the communications or records. 

XXII. 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, 

26
 
 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 27 of 61 

director, employee, agent, independent contractor, attorney, spouse, former spouse, subsidiary, 

division, and representative of any Defendant and any company owned or controlled by any 

Defendant, and shall, by 5:00 PM on May 19, 2017 provide Plaintiff 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 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. 

XXIII. 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 and the 

Receiver are 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’ and Relief Defendant’s 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 and the Receiver may take the deposition of parties and non-parties. 

Forty-eight (48) hours’ notice shall be sufficient notice for such depositions. The limitations and 

conditions set forth in Fed. R. Civ. P. 30(a)(2)(B) and 31(a)(2)(B) 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 

27
 
 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 28 of 61 

set 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 and the Receiver may serve upon parties requests for production of 

Documents or inspection that require production or inspection within five (5) days of service, 

provided, however, that three (3) 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 and the Receiver may serve upon parties interrogatories that require 

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

D. Plaintiff and the Receiver may serve subpoenas upon non-parties that direct 

production or inspection within five (5) 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 Fed. R. Civ. P. 26(d) & (f). 

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

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

XXIV. 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 Plaintiff, by any 

28
 
 

 

 

 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 29 of 61 

law enforcement agency, or by private process server, upon any Defendant or any Person 

(including 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 

Fed. R. Civ. P. 65(d)(2). For purposes of this Section, service upon any branch, subsidiary, 

affiliate or office of any entity shall effect service upon the entire entity. 

XXV. 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: 

Miya Tandon 

Federal Trade Commission 

600 Pennsylvania Ave., NW, CC-10232 

Washington, DC 20580 

Phone: (202) 326-2351 

Fax: (202) 326-3768 

mtandon@ftc.gov 

XXVI. PRELIMINARY INJUNCTION HEARING 

A HEARING is set before this Court in the United States Courthouse located at 299 East 

Broward Boulevard, Fort Lauderdale, Florida 33301, Courtroom 205F, on May 26, 2017, at 

10:30 PM,, at which time Defendants and Relief Defendant and/or any other affected persons 

may challenge the appropriateness of this Order and move to dissolve the same and at which 

time the Court will hear argument on Plaintiff’s requested Preliminary Injunction and other 

Equitable Relief; 

(1) Plaintiff shall serve copies of the Complaint; the Motion for Temporary 

Restraining Order, Asset Freeze, Appointment of a Receiver, Immediate Access, and Other 

Equitable Relief; and this Order; on each Defendant by 5:00 PM on May 18, 2017. 

29
 
 

 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 30 of 61 

(2) Any response or opposition to Plaintiff’s Motion for Preliminary Injunction and 

the continued freezing of assets and appointment of Receiver must be filed and served on 

Plaintiff’s counsel by May 23, 2017 by 1:00 PM. Plaintiff shall file any Reply Memorandum on 

or before May 25, 2017 by 1:00 PM. The above dates may be revised upon stipulation by all 

parties and approval of this Court. 

(3) 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 by the date and time set forth in this Section. 

H. An evidentiary hearing on Plaintiff’s request for a preliminary injunction is not 

necessary unless Defendants and Relief Defendant demonstrate that they have, and intend to 

introduce, evidence that raises a genuine and material factual issue. 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 by May 22, 2017 by 5:00 PM. 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 no later than May 24, 2017 by 5:00 PM. 

30
 
 

 

 

 

 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 31 of 61 

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 on the appropriate dates and times provided in this Section. 

XXVII. DURATION OF THE ORDER 

IT IS FURTHER ORDERED that this Order shall expire fourteen (14) days from the 

date of entry noted below, unless within such time, the Order is extended for an additional period 

pursuant to Fed. R. Civ. P. 65(b)(2). 

XXVIII. RETENTION OF JURISDICTION 

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

appropriate purposes. 

SO ORDERED, this 15th day of May, 2017, at 4:00 p.m. at Fort Lauderdale, Broward 

County, Florida. 

Copies to:
 

All counsel of record
 

31
 
Attachment A 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 32 of 61 
FEDERAL TRADE COMMISSION 

FINANCIAL STATEMENT OF INDIVIDUAL DEFENDANT 

Definitions and Instructions: 

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

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

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

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

time during the past five years. 

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

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

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

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

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

5. Type or print legibly. 

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

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

Penalty for False Information: 

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

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

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

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

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

(2) "in any ... statement under penalty of perjury as permitted under section 17 46 of title 28, United States Code, 

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

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

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

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

declaration" (18 U.S.C. § 1623). 

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

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

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

loss. 18 U.S.C. § 3571. 

Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 33 of 61 
1of10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 34 of 61 

BACKGROUND INFORMATION 

Item 1. Information About You 

Full Name Social Security No. 

Current Address of Primary Residence Driver's License No. I State Issued 

Phone Numbers Date of Birth: I I 

Home: ( ) (mm/dd/wvv) 

Fax: ( ) Place of Birth 

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

(mm/dd/yyyy) 

Internet Home Page 

Previous Addresses for past five years (if required, use additional pages at end of form) 

Address From: I I Until: I I 

(mm/dd/yyyy) (mm/dd/yyyy) 

DRent Down 

Address From: I I Until: I I 

DRent Down 

Address From: I I Until: I I 

DRent Down 

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

were used: 

Item 2. Information About Your Spouse or Live-In Companion 

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

I I 

(mm/dd/yyyy) 

Address (if different from yours) Phone Number Place of Birth 

( ) 

DRent Down From (Date): I I 

(mm/dd/yyyy) 

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

Employer's Name and Address Job Title 

Years in Present Job Annual Gross Salary/Wages 

$ 

Item 3. Information About Your Previous Spouse 

Name and Address Social Security No. 

Date of Birth 

I I 

(mm/dd/yyyy) 

ltem4. Contact Information (name and address of closest living relative other than your spouse) 

Name and Address Phone Number 

( ) 

Initials: 
2 of 10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 35 of 61 

Item 5. Information About Dependents (whether or not they reside with you) 

Name and Address Social Security No. Date of Birth 

I I 

(mm/dd/yyyy) 

Relationship 

Name and Address Social Security No. Date of Birth 

I I 

(mm/dd/vvvvl 

Relationship 

Name and Address Social Security No. I Date of Birth 

I I 

(mm/dd/yyyy) 

Relationship 

Name and Address Social Security No. I Date of Birth 

I I 

(mm/dd/yyyy) 

Relationship 

Item 6. Employment Information/Employment Income 

Provide the following information for this year-to-date and for each of the previous five full years, for each business entity of which you were a director, 

officer, member, partner, employee (including self-employment), agent, owner, shareholder, contractor, participant or consultant at any time during that 

period. "Income" includes, but is not limited to, any salary, commissions, distributions, draws, consulting fees, loans, loan payments, dividends, 

royalties, and benefits for which you did not pay (e.g., health insurance premiums, automobile lease or loan payments) received by you or anyone else 

on your behalf. 

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

Year Income 

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

I I 20 $ 

Ownership Interest? D YesD No $ 

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

I I $ 

I I $ 

I I $ 

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

Year Income 

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

I I 20 $ 

Ownership Interest? OYesD No $ 

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

I I $ 

I I $ 

I I $ 

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

Year Income 

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

I I 20 $ 

Ownership Interest? D YesD No $ 

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

I I $ 

I I $ 

I I $ 

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

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

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

resulted in final judgments or settlements against you. 

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

Proceedina Disposition 

Item 8. Safe Deposit Boxes 

List all safe deposit boxes, located within the United States or in any foreign country or territory, whether held individually or jointly and whether held by 

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

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

Initials: 

3of10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 36 of 61 
4of10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 37 of 61 

FINANCIAL INFORMATION 

REMINDER: When an item asks for information regarding your "assets• and "liabilities" include ALL assets and liabilities, located within 

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

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

all documents reauested in Item 24 with your completed Financial Statement. 

ASSETS 

Item 9. Cash, Bank, and Money Market Accounts 

List cash on hand (as opposed to cash in bank accounts or other financial accounts) and all bank accounts, money market accounts, or other financial 

accounts, including but not limited to checking accounts, savings accounts, and certificates of deposit. The term "cash on hand" includes but is not 

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

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

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

$ 

$ 

$ 

$ 

$ 

Item 10. Publicly Traded Securities 

List all publicly traded securities, including but not limited to, stocks, stock options, corporate bonds, mutual funds, U.S. government securities (including 

but not limited to treasury bills and treasury notes), and state and municipal bonds. Also list any U.S. savings bonds. 

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

Broker House, Address Broker Account No. 

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

$ 

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

Broker House, Address Broker Account No. 

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

$ 

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

Broker House, Address Broker Account No. 

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

$ 

Initials: 
5of10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 38 of 61 

Item 11. Non-Public Business and Financial Interests 

List all non-public business and financial interests, including but not limited to any interest in a non-public corporation, subchapter-S corporation, limited 

liability corporation ("LLC"), general or limited partnership, joint venture, sole proprietorship, international business corporation or personal investment 

corporation, and oil or mineral lease. 

Entity's Name & Address Type of Business or Financial Owner Ownership If Officer, Director, Member 

Interest (e.g., LLC, partnership) (e.g., self, spouse) % or Partner, Exact Title 

Item 12. Amounts Owed to You, Your Spouse, or Your Dependents 

Debtor's Name & Address Date Obligation Original Amount Owed Nature of Obligation (if the result of a final court 

Incurred (Month/Year) $ judgment or settlement, provide court name 

I and docket number) 

Current Amount Owed Payment Schedule 

$ $ 

Debtor's Telephone Debtor's Relationship to You 

Debtor's Name & Address Date Obligation Original Amount Owed Nature of Obligation (if the result of a final court 

Incurred (Month/Year) $ judgment or settlement, provide court name 

I and docket number) 

Current Amount Owed Payment Schedule 

$ $ 

Debtor's Telephone Debtor's Relationship to You 

Item 13. Life Insurance Policies 

List all life insurance policies (including endowment policies) with any cash surrender value. 

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

$ 

Insured Loans Against Policy Surrender Value 

$ $ 

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

$ 

Insured Loans Against Policy Surrender Value 

$ $ 

Item 14. Deferred Income Arrangements 

List all deferred income arrangements, including but not limited to, deferred annuities, pensions plans, profit-sharing plans, 401(k) plans, IRAs, Keoghs, 

other retirement accounts, and college savings plans (e.g., 529 Plans). 

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

Date Established Type of Plan Surrender Value before 

I I Taxes and Penalties 

(mm/dd/yyyy) $ 

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

Date Established Type of Plan Surrender Value before 

I I Taxes and Penalties 

$ 

Initials: 
6of10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 39 of 61 

Item 15. Pending Insurance Payments or Inheritances 

List any pending insurance payments or inheritances owed to you. 

Type Amount Expected Date Expected (mm/dd/yyyy) 

$ I I 

$ I I 

$ I I 

Item 16. Vehicles 

List all cars, trucks, motorcycles, boats, airplanes, and other vehicles. 

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

$ $ $ 

Make Registration State & No. AccounULoan No. Current Value Monthly Payment 

$ $ 

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

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

$ $ $ 

Make Registration State & No. AccounULoan No. Current Value Monthly Payment 

$ $ 

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

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

$ $ $ 

Make Registration State & No. AccounULoan No. Current Value Monthly Payment 

$ $ 

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

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

$ $ $ 

Make Registration State & No. AccounULoan No. Current Value Monthly Payment 

$ $ 

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

Item 17. Other Personal Property 

List all other personal property not listed in Items 9-16 by category, whether held for personal use, investment or any other reason, including but not 

limited to coins, stamps, artwork, gemstones, jewelry, bullion, other collectibles, copyrights, patents, and other intellectual property. 

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

$ $ 

$ $ 

$ $ 

Initials: 
Initials: 

7of10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 40 of 61 

Item 18. Real Property 

List all real property interests (including any land contract) 

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

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

I I 

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

Contract 

$ 

Monthly Payment 

$ 

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

$ 

Current Balance Monthly Rent Received 

$ $ 

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

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

I I 

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

Contract 

$ 

Monthly Payment 

$ 

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

$ 

Current Balance Monthly Rent Received 

$ $ 

LIABILITIES 

Item 19. Credit Cards 

List each credit card account held by you, your spouse, or your dependents, and any other credit cards that you, your spouse, or your dependents use, 

whether issued by a United States or foreign financial institution. 

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

$ 

$ 

$ 

$ 

$ 

Item 20. Taxes Payable 

List all taxes, such as income taxes or real estate taxes, owed by you, your spouse, or your dependents. 

Type ofTax Amount Owed Year Incurred 

$ 

$ 

$ 
8of10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 41 of 61 

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

List all other amounts, not listed elsewhere in this financial statement, owed by you, your spouse, or your dependents. 

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

number) 

Lender/Creditor's Relationship to You 

Date Liability Was Incurred I ~riginal Amount Owed I ~urrent Amount Owed I Payment Schedule I I 

(mm/dd/vvvv\ 

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

number) 

Lender/Creditor's Relationship to You 

Date Liability Was Incurred I ~riginal Amount Owed I ~urrent Amount Owed I Payment Schedule I I 

(mm/dd/yyyy) 

OTHER FINANCIAL INFORMATION 

Item 22. Trusts and Escrows 

List all funds and other assets that are being held in trust or escrow by any person or entity for you, your spouse, or your dependents. Include any legal 

retainers being held on your behalf by legal counsel. Also list all funds or other assets that are being held in trust or escrow by you, your spouse, or your 

dependents, for any person or entity. 

Trustee or Escrow Agent's Name & Address Date Established Granter Beneficiaries Present Market Value of Assets* (mm/dd/vvvv\ 

I I $ 

I I $ 

I I $ 

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

Item 23. Transfers of Assets 

List each person or entity to whom you have transferred, in the aggregate, more than $5,000 in funds or other assets during the previous five years by 

loan, gift, sale, or other transfer (exclude ordinary and necessary living and business expenses paid to unrelated third parties). For each such person or 

entity, state the total amount transferred during that period. 

Transferee's Name, Address, & Relationship Property Transferred Aggregate Value* Transfer Date Type of Transfer 

(mm/dd/yyyy) (e.g., Loan, Gift) 

$ I I 

$ I I 

$ I I 

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

Initials: 
9of10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 42 of 61 

Item 24. Document Requests 

Provide copies of the following documents with your completed Financial Statement. 

Federal tax returns filed during the last three years by or on behalf of you, your spouse, or your dependents. 

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

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

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

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

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

general ledger files from account records. 

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

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

less than $2,000. 

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

Item 21 Documentation for all debts listed in Item 21. 

All executed documents for any trust or escrow listed in Item 22. Also provide any appraisals, including insurance Item 22 appraisals that have been done for any assets held by any such trust or in any such escrow. 

SUMMARY FINANCIAL SCHEDULES 

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

Assets Liabilities 

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

Funds Held in Financial Institutions (Item 9) $ Vehicles - Liens (Item 16) $ 

U.S. Government Securities (Item 10) $ Real Property - Encumbrances (Item 18) $ 

Publicly Traded Securities (Item 10) $ Credit Cards (Item 19) $ 

Non-Public Business and Financial Interests (Item 11) $ Taxes Payable (Item 20) $ 

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

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

Deferred Income Arrangements (Item 14) $ $ 

Vehicles (Item 16) $ $ 

Other Personal Property (Item 17) $ $ 

Real Property (Item 18) $ $ 

Other Assets (Itemize) $ 

$ $ 

$ $ 

$ $ 

Total Assets $ Total Liabilities $ 

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

Provide the current monthly income and expenses for you, your spouse, and your dependents. Do not include credit card payments separately; rather, 

include credit card expenditures in the appropriate categories. 

Income (State source of each item) Expenses 

Salary - After Taxes 

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

Fees, Commissions, and Royalties 

Source: $ Property Taxes for Residence(s) $ 

Interest 

Source: $ 

Rental Property Expenses, Including Mortgage Payments, Taxes, 

and Insurance $ 

Dividends and Capital Gains 

Source: $ 

Car or Other Vehicle Lease or Loan Payments $ 

Gross Rental Income 

Source: $ 

Food Expenses $ 

Profits from Sole Proprietorships 

Source: $ Clothing Expenses $ 

Distributions from Partnerships, S-Corporations, 

and LLCs 

Source: 

$ 

Utilities 

$ 

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

Distributions from Trusts and Estates 

Source: $ 

Medical Expenses, Including Insurance 

$ 

Distributions from Deferred Income Arrangements 

Source: $ 

Other Insurance Premiums 

$ 

Social Security Payments $ Other Transportation Expenses $ 

Alimony/Child Support Received $ Other Expenses (Itemize) 

Gambling Income $ $ 

Other Income (Itemize) $ 

$ $ 

$ $ 

$ $ 

Total Income $ Total Expenses $ 

ATTACHMENTS 

Item 27. Documents Attached to this Financial Statement 

List all documents that are being submitted with this financial statement. For any Item 24 documents that are not attached, explain why. 

Item No. Document Relates To Description of Document 

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

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

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

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

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

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

Executed on: 

(Date) Signature 

10of10 Federal Trade Commission Financial Statement of Individual Defendant 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 43 of 61 
Attachment B 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 44 of 61 
FEDERAL TRADE COMMISSION 

FINANCIAL STATEMENT OF CORPORATE DEFENDANT 

Instructions: 

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

question, explain why. 

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

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

predecessors that are not named defendants in this action. 

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

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

benefit of the corporation. 

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

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

6. Type or print legibly. 

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

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

Penalty for False Information: 

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

(1) "in any matter within the jurisdiction of any department or agency of the United States knowingly and · 

willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, 

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

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

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

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

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

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

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

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

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

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

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

18 U.S.C. § 3571. 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 45 of 61 
BACKGROUND INFORMATION 

Item 1. General Information 

Corporation's Full Name-----------------------------------

Primary Business Address _________________________ From (Date) ___ _ 

Telephone No. Fax No. ------------- --------------

E-Mail Address Internet Home Page __________ _ 

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

Address ____________________________ From/Until ________ _ 

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

Address From/Until ________ _ 

All predecessor companies for past five years: 

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

Name & Address From/Until _____ _ 

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

Item 2. Legal Information 

Federal Taxpayer ID No. ___________ State & Date of Incorporation __________ _ 

State Tax ID No. State Profit or Not For Profit ----------

Corporation's Present Status: Active Inactive Dissolved --------

If Dissolved: Date dissolved By Whom _______________ _ 

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

Item 3. Registered Agent 

Name of Registered Agent _________________________________ _ 

Address __________________________ Telephone No. _______ _ 

Page 2 Initials ----

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 46 of 61 
Item 4. Principal Stockholders 

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

Name & Address %Owned 

Item 5. Board Members 

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

Name & Address % Owned Term (From/Until) 

Item 6. Officers 

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

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

Name & Address %Owned 

Page 3 Initials ----

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 47 of 61 
Item 7. Businesses Related to the Corporation 

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

Name & Address Business Activities % Owned 

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

Item 8. Businesses Related to Individuals 

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

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

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

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

Item 9. Related Individuals 

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

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

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

Name and Address Relationship Business Activities 

Page 4 Initials ____ _ 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 48 of 61 
Item 10. Outside Accountants 

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

Firm Name Address CPA/PA? 

Item 11. Corporation's Recordkeeping 

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

the last three years. 

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

Item 12. Attorneys 

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

Firm Name Address 

Page 5 Initials ___ _ 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 49 of 61 
Item 13. Pending Lawsuits Filed by the Corporation 

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

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

Opposing Party's Name & Address _____________________________ _ 

Court's Name & Address ________________________________ _ 

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

_________________ Status ________________________ _ 

Opposing Party's Name & Address _____________________________ _ 

Court's Name & Address ________________________________ _ 

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

_________________ Status ________________________ _ 

Opposing Party's Name & Address _____________________________ _ 

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

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

Status ----------------- --------------------------

Opposing Party's Name & Address _____________________________ _ 

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

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

Status ----------------- --------------------------

Opposing Party's Name & Address _____________________________ _ 

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

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

_________________ Status ________________________ _ 

Opposing Party's Name & Address -------------------------------

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

Docket No. Relief Requested Nature of Lawsuit -------- ---------- ----------

Status ----------------- --------------------------

Page 6 Initials ___ _ 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 50 of 61 
Item 14. Current Lawsuits Filed Against the Corporation 

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

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

Opposing Party's Name & Address _____________________________ _ 

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

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

Status ----------------- --------------------------

Opposing Party's Name & Address _____________________________ _ 

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

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

_________________ Status ________________________ _ 

Opposing Party's Name & Address _____________________________ _ 

Court's Name & Address ________________________________ _ 

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

Status ----------------- --------------------------

Opposing Party's Name & Address _____________________________ _ 

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

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

Status ----------------- --------------------------

Opposing Party's Name & Address _____________________________ _ 

Court's Name & Address __________________________________ _ 

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

Status ----------------- --------------------------

Opposing Party's Name & Address _____________________________ _ 

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

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

_________________ Status ________________________ _ 

Page 7 Initials ----

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 51 of 61 
Item 15. Bankruptcy Information 

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

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

If State Court: Court & County If Federal Court: District ----------- -------------

Disposition----------------------------------------

Item 16. Safe Deposit Boxes 

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

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

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

FINANCIAL INFORMATION 

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

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

others for the benefit of the corporation. 

Item 17. Tax Returns 

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

Federal/ Tax Year Tax Due Tax Paid Tax Due Tax Paid Preparer's Name 

State/Both Federal Federal State State 

$ $ $ $ 

$ $ $ $ 

$ $ $ $ 

Page 8 Initials ----

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 52 of 61 
Item 18. Financial Statements 

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

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

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

Item 19. Financial Summary 

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

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

information. 

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

Gross Revenue $ $ $ ______ _ $ ______ _ 

Expenses $ $ $ ______ _ $ ______ _ 

Net Profit After Taxes $ 

Payables $ 

Receivables $ 

Item 20. Cash, Bank, and Money Market Accounts 

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

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

Cash on Hand $ ____________ Cash Held for the Corporation's Benefit$ __________ _ 

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

Balance 

-----------------~-----------------------$ ____ _ 

-----------------~-----------------------$ ____ _ 

____ _ 

____ _ 

Page 9 Initials ___ _ 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 53 of 61 
Item 21. Government Obligations and Publicly Traded Securities 

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

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

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

Issuer _______________ Type of Security/Obligation _______________ _ 

No. of Units Owned _____ Current Fair Market Value$ ________ Maturity Date ______ _ 

Issuer _______________ Type of Security/Obligation _______________ _ 

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

Item 22. Real Estate 

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

Type of Property _______________ Property's Location _______________ _ 

Name(s) on Title and Ownership Percentages __________________________ _ 

Current Value$ _________ Loan or Account No. ___________ _ 

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

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

Other Loan(s) (describe) ____________________ Current Balance$ _______ _ 

Monthly Payment $ ________ Rental Unit? ________ Monthly Rent Received $ _____ _ 

Type of Property _______________ Property's Location _______________ _ 

Name(s) on Title and Ownership Percentages __________________________ _ 

Current Value$ _________ Loan or Account No. ___________ _ 

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

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

Other Loan(s) (describe) ___________________ Current Balance$ ______ _ 

Monthly Payment$ ________ Rental Unit? ________ Monthly Rent Received $ _____ _ 

Page 10 Initials ----

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 54 of 61 
Item 23. Other Assets 

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

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

intellectual property. 

Property Category Property Location Acguisition Current 

Cost Value 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

Item 24. Trusts and Escrows 

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

Trustee or Escrow Agent's Description and Location of Assets Present Market 

Name & Address Value of Assets 

Page 11 Initials ___ _ 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 55 of 61 
Item 25. Monetary Judgments and Settlements Owed To the Corporation 

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

Opposing Party's Name & Address _____________________________ _ 

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

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

Opposing Party's Name & Address _____________________________ _ 

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

Nature of Lawsuit ______________ Date of Judgment ________ Amount$ _____ _ 

Item 26. Monetary Judgments and Settlements Owed By the Corporation 

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

Opposing Party's Name & Address _____________________________ _ 

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

Nature of Lawsuit __________________ Date _______ Amount$ ______ _ 

Opposing Party's Name & Address _____________________________ _ 

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

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

Opposing Party's Name & Address ______________________________ _ 

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

Nature of Lawsuit ______________ Date of Judgment ________ Amount$ _____ _ 

Opposing Party's Name & Address ______________________________ _ 

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

Nature of Lawsuit ______________ Date of Judgment ________ Amount$ _____ _ 

Opposing Party's Name & Address _____________________________ _ 

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

Nature of Lawsuit ______________ Date of Judgment ________ Amount$ _____ _ 

Page 12 Initials ----

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 56 of 61 
Item 27. Government Orders and Settlements 

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

Name of Agency ____________________ Contact Person ___________ _ 

Address Telephone No. ----------------------------~ -------

Agreement Date _______ Nature of Agreement _______________________ _ 

Item 28. Credit Cards 

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

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

Item 29. Compensation of Employees 

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

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

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

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

but are not limited to, loans, 1oan payments, rent, car payments, and insurance premiums, whether paid directly to the 

individuals, or paid to others on their behalf. 

Name/Position Current Fiscal 1 Year Ago 2 Years Ago Comuensation or 

Year-to-Date TyJ?e of Benefits 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

Page 13 Initials----~ 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 57 of 61 
Item 30. Compensation of Board Members and Officers 

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

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

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

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

the individuals, or paid to others on their behalf. 

Name/Position Current Fiscal 1 Year Ago 2 Years Ago Compensation or 

Year-to-Date Tvoe of Benefits 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

Item 31. Transfers of Assets Including Cash and Property 

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

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

Transferee's Name, Address, & Relationship Property Aggregate Transfer Type of Transfer 

Transferred Value Date (e.g., Loan, Gift) 

__________________________ $ __________________ _ 

__________________________ $ __________________ _ 

__________________________ $ __________________ _ 

__________________________ $ __________________ _ 

__________________________ $ __________________ _ 

Page 14 Initials ___ _ 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 58 of 61 
Item 32. Documents Attached to the Financial Statement 

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

Item No. Document Description of Document 

Relates To 

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

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

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

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

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

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

Executed on: 

(Date) Signature 

Corporate Position 

Page 15 Initials ----

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 59 of 61 
Attachment C 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 60 of 61 
CONSENT TO RELEASE FINANCIAL RECORDS 

-------------------(City, State), do hereby direct any bank, 

saving and loan association, credit union, depository institution, finance company, commercial 

lending company, credit card processor, credit card processing entity, automated clearing house, 

network transaction processor, bank debit processing entity, brokerage house, escrow agent, 

money market or mutual fund, title company, commodity trading company, trustee, or person 

that holds, controls, or maintains custody of assets, wherever located, that are owned or 

controlled by me or at which there is an account of any kind upon which I am authorized to 

draw, and its officers, employees, and agents, to disclose all information and deliver copies of all 

documents of very nature in its possession or control which relate to the said accounts to any 

attorney of the Federal Trade Commission, and to give evidence relevant thereto, in the matter of 

the Federal Trade Commission v. Strategic Student Solutions LLC, et al., now pending in the 

United States District Court for the Southern District of Florida, and this shall be irrevocable 

authority for so doing. 

This direction is intended to apply to the laws of countries other than the Unites States of 

America which restrict or prohibit disclosure of bank or other financial information without the 

consent of the holder of the account, and shall be construed as consent with respect hereto, and 

the same shall apply to any of the accounts for which I may be a relevant principal. 

Dated: Signature: ~------------ --------------~ 

Printed Name: -------------~ 

Case 9:17-cv-80619-WPD Document 10 Entered on FLSD Docket 05/15/2017 Page 61 of 61