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UNITED STATES DISTRICT COURT 

DISTRICT OF KANSAS 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

JOEL JEROME TUCKER, individually and as an 

officer of SQ Capital, LLC, JT Holdings, Inc., and 

HPD LLC, 

SQ CAPITAL, LLC, a corporation, 

JT HOLDINGS, INC., a corporation, 

and 

HPD LLC, a corporation, 

Defendants. 

CASE NO. 2:16-CV-02816-JARJPO 

PREl,JMINARY INJUNCTION 

Plaintiff Federal Trade Commission (''FTC") has fi led a complaint seeking a permanent . . 

injtmction and other equitable relief, ptirsuant to Section 13(b) of the Federal Trade Commission 

Act ("FTC Act") and a motion for a temporary restraining order and preliminary injunction 

pursuant to Rule 65 of the Federal Rules of Civil Procedure. (Dk. Nos, 3 and 4). Following a 

hearing on D~cember 22, 2016, this Court issued a temporary .restraining order against 

Defendants and ordered Defendants to appear on January 6, 2017, at 9:00 am to show cause, if 

there be, why this Court should not enter a preliminary injunction pending final ruling on the 

complaint. (Dkt. No. 18; hereinafter the "TRO.',) 

On January 6, 2017, defendant Joel Tuckefappeared pro se and did not oppose entry of a · 

preliminary injunction. No attorney has entered an appearance for Defendants SQ Capital, LLC, 

JT Holdings, Inc., and HPD LLC. Defendant Joel Tucker stated that he is seeking an attorney to 

represent these entities. 

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FINDINGS OF FACT 

This Court, having considered the Complaint, exhibits, declarations, Plaintiffs 

memorandum in support of a temporary restraining order, and other submissions grants a 

preliminary injunction pending a final judgment or superseding order and finds that: 

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

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

2. There is good cause to believe that Defendants have engaged and are likely to continue to 

engage in acts or practices that violate Section 5(a) of the FTC Act, and that Plaintiff is therefore 

likely to prevail on the merits of this action; 

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

from Defendants' ongoing violations ofSection 5(a) of the FTC Act, unless Defendants are 

restrained and enjoined by Order of this Court; 

4. There is good cause to believe that immediate and irreparable damage to the Court's 

ability to grant effective final relief in the form of disgorgement of ill-gotten gains will occur 

from the transfer, dissipation, or concealment by Defendants of their assets or business records 

unless Defendants are immediately restrained and enjoined by Order of this Court; 

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

preliminary iqjunction, expedited discovery and other equitable relief is in the public interest; 

and 

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

Civ. P. 65(c). 

DEFINITIONS 

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

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

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B. "Debt l'ortfolio" means spreadsheets, databases, tables, lists or any other compilation of 

information describing debts or purported debts owed by individuals to a business. 

C. "Defendants" means Joel Tucker and Defendants SQ Capital, LLC, JT Holdings, Inc., 

and HPD LLC, and their successors, assigns, affiliates, or subsidiaries, individually, 

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

known. 

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

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

Procedure, and include but are not limited to: 

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

transcribed, taped, recorded, filmed, punched, or graphic matter or other data 

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

correspondence, messages, memoranda, interoffice communications, notes, reports, 

summaries, manuals, magnetic tapes or discs, tabulations, books, records, checks, 

invoices, work papers, journals, ledgers, statements, returns, reports, schedules, or 

files; and 

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

device, flash drives, personal digital assistants, desktop personal computer and 

workstations, laptops, notebooks, and other portable computers, or other electronic 

storage media, whether assigned to individuals or in pools of computers available for 

shared use, or personally owned but used for work-related purposes; backup disks and 

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

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

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facility, or stored, hosted, or otherwise maintained offsite by a third-party; and 

computers and related offline storage used by Defendants or Defendants' 

participating associates, which may include persons who are not employees of the 

company or who do not work on company premises. 

E. "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. 

F. "Financial Institution" means any bank, savings and loan institution, credit union, or 

any financial depository of any kind, including, but not limited to, any brokerage house, 

trustee, broker-dealer, escrow agent, title company, commodity trading company, or 

precious metal dealer. 

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

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

or combination acting as an entity. 

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

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

ORDER 

I. PROHIBITION ON COUNTERFEIT DEBT SALES 

IT IS ORDERED that Defendants, their officers, agents, employees, and attomeys, 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 restrained and enjoined from: 

A. Marketing, distributing, or selling Debt Portfolios that list loans that the lenders 

have not, in fact, made to the consumers identified in such portfolios, or Debts 

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that Defendants have not purchased, or otherwise obtained, any rights to collect; 

and 

B. Otherwise providing others with the means and instrumentalities to misrepresent, 

or to assist others in misrepresenting, directly or indirectly, expressly or by 

implication, that consumers owe unpaid debts or that a debt collector has obtained 

the right to collect a debt from a consumer. 

II. l'RESERV A TI ON OF RECORDS AND TANGIBLE THINGS 

IT IS FURTHER ORDERED that Defendants, 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 destroying, secreting, erasing, mutilating, defacing, concealing, 

altering, transferring, or otherwise disposing of, in any manner, any Documents or Electronically 

Stored Information that relate to the business practices of Defendants or of any entity directly or 

indirectly under the control of Defendants. 

These Documents or Electronically Stored Information include but are not limited to: 

contracts; agreements; Debt Portfolios; consumer files; consumer lists; consumer addresses and 

telephone numbers; correspondence, including emails; documents evidencing or referring to 

Defendants' marketing, distribution, sale or acquisition of Debt Portfolios; data; computer tapes, 

disks, or other computerized records; books; written or printed records; handwritten notes; 

telephone logs; receipt books; invoices; postal receipts; ledgers; personal and business canceled 

checks and check registers; bank statements; appointment books; copies of federal, state, or local 

business or personal income or property tax returns; photographs; mobile devices; electronic 

storage media; accessories; and any other documents, records, or equipment of any kind that 

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relate to Debt Portfolios marketed, distributed, sold or acquired by any Defendant or any other 

entity directly or indirectly under the control of a Defendant. 

III. PRESERVATION OF RECORDS BY ELECTRONIC DAT A HOSTS, 

FINANCIAL INSTITUTIONS, AND OTHER THIRD PARTIES 

IT IS FURTHER ORDERED that any Electronic Data Host, financial or brokerage 

institution or depository, escrow agent, title company, commodity trading company, trust, entity, 

or other Person that holds, controls, or maintains custody of any account, asset, Debt Portfolio, 

electronic communications (including but not limited to emails and recordings of telephone 

conversations), Documents or Electronically Stored Information, owned or controlled, directly or 

indirectly, by any Defendant, or has held, controlled, or maintained any account, asset, Debt 

Portfolio, electronic communications, Documents or Electronically Stored Information of, or on 

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

A. Hold, preserve, and retain within its control Documents or Electronically Stored 

Information, and records concerning accounts, assets, information or 

communications that are or were owned by, held in the name of, for the benefit of, 

or otherwise controlled, directly or indirectly, in whole or in part, by the 

Defendants; and 

E o/ 

B. Provide counsel for Plaintiff, within three-fl) business days after being served 

with a request, copies of (1) all Documents or Electronically Stored Information 

nsed to establish any financial account or arrangement to store documents, 

information or communications, including but not limited to originals or copies of 

account applications, signature cards, and depository agreements; and (2) account 

statements, wire transfers, debit and credit slips or instruments, and other records 

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of transfers to and from any financial account or slips, provided that such 

institution or custodian may charge a reasonable fee. 

IV. ACCOUNTING FOR DEBT PORTFOLIOS AND CHAINS OF TITLE 

IT IS FURTHER ORDERED that each Defendant, within three (3) business clays of 

service of this Order, shall provide an accounting of all Debt Portfolios that have been 

distributed, sold or acquired by Defendants, their subsidiaries, officers, agents, or employees 

since June 1, 2014, by providing a report to counsel for Plaintiff that clearly sets forth the 

following details: 

A. The filenames, titles or other descriptions of each Debt Portfolio; 

B. The location(s) where each Debt Portfolio is stored and any username or 

password required to access any computer or electronic files, including but not 

limited to information stored, hosted or otherwise maintained by an Electronic 

Data Host; 

C. Any compensation related to the distribution, sale or acquisition of each Debt 

Portfolio; 

D. The full names, addresses and telephone numbers of the purchasers of each Debt 

Portfolio; 

E. The full names, addresses and telephone numbers of the Person(s) that provided 

all or part of the records in each Debt Portfolio; 

F. The full names, addresses and telephone numbers of the Person( s) that issued or 

originated debts described in each Debt Portfolio; 

G. The full names, addresses and telephone numbers of any Person(s) that ever held 

or transferred title to the debts described in each Debt Portfolio; 

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H. The foll names, addresses and telephone numbers of any Electronic Data Host 

that was used to store, host, or otherwise maintain each Debt Portfolio; and 

I. The full names, addresses and telephone numbers of any Financial Institution that 

processed payments related to the sale or acquisition of each Debt Portfolio. 

IT IS FURTHER ORDERED that, along with this accounting, Defendants shall 

produce to counsel for Plaintiff copies of all records relating to the chain of title of each Debt 

Portfolio described in the accounting. 

V. LIMITED EXPEDITED DISCOVERY 

IT IS FURTHER ORDERED that 

A. Plaintiff is granted leave to conduct expedited discovery on matters relating to (1) 

the location of Documents or Electronically Stored Information pertaining to 

Defendants' business; (2) the accuracy of Defendants' accounting, including the 

existence, chain of title, source and disposition of Debt Portfolios marketed, 

distributed, sold or acquired by Defendants and financial transactions that may 

relate to such portfolios; and (3) compliance with this Order; 

B. Commencing with the time and date of this Order, the following requirements 

shall govern this expedited discovery in lieu of the time periods, notice 

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

Rules of Civil Procedure: 

1. Plaintiff may, upon three (3) calendar clays' notice, take the deposition of any 

Person, whether or not a party, in any judicial district. Depositions may be 

conducted in person, by telephone, or by other remote electronic means. 

2. Defendants shall respond to any interrogatories served by Plaintiff within five 

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(5) calendar days after service. 

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

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

of a Rule 45 Subpoena, demand the production of documents, electronically 

stored information or tangible things from any Person, whether or not a 

Defendant, including a notice requiring the responding Person to permit 

inspection, copying, testing or sampling of materials. Provided that two (2) 

calendar days' notice shall be deemed sufficient for the production of any 

such documents that are maintained or stored only as electronic data. 

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

if made by facsimile, e-mail, or overnight courier. 

C. Plaintiff may seek to prohibit any Defendants who fail to appear for properly 

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

from introducing the evidence sought by Plaintiff at any subsequent hearing; and 

D. Any deposition taken pursuant to this Section and interrogatories served shall be 

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

Federal Rule of Civil Procedure 30(a)(2)(A) and 33(a)(l), and notwithstanding 

Federal Rule of Civil Procedure 30(a)(2), depositions taken during this period of 

expedited discovery shall not preclude any future depositions of a witness. 

VI. SERVICE OF THIS ORDER 

IT IS FURTHER ORDERED that copies of this Order may be served by e-mail, 

facsimile, personal or overnight delivery, or U.S. Express Mail, by agents and employees of 

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

Defendants or any other Persons that may be subject to any provision of this Order. 

VII. DISTRIBUTION OF ORDER BY DEFE~ANTS 

IT IS FURTHER ORDERED that within th1Qe'&~~~J~. days a!ler service of this 

Order, Defendants shall provide a copy of this Order to (1) all officers, directors, employees, and 

LLC managers and members; and (2) Financial Institutions, Electronic Data Hosts and other 

Persons that hold accounts or records owned or controlled by the Defendants. Within five (5) 

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

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

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

VIII. CORRESPONDENCE WITH PLAINTIFF 

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

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

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

transmission to mtankersley@ftc.gov, kroller@ftc.gov, or via Federal Express to: Michael 

Tankersley, Katharine Roller, Federal Trade Commission, 600 Pennsylvania Ave., NW, CC10232, Washington, DC 20580. 

IX. JURISDICTION 

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

all purposes. 

11'!:2 IT IS SO ORDERED, this_({) ___ day of~~CJ.,_'<VJ..._(i.;~\l;J-+--' J 20 n at q•, j ) 

\ 

o'clock 8/p.m. 

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