UNITED STATES DISTRICT COURT

WESTERN DISTRICT OF NEW YORK

FEDERAL TRADE COMMISSION and

PEOPLE OF THE STATE OF NEW YORK,

Plaintiffs,

v.

CAMPBELL CAPITAL LLC, a New York

limited liability company, also doing 

business as UNITED PROCESSING 

SERVICES,

KAHL, HEIDENREICH, AND NEMMER 

LLC, a New York limited liability company,

URBAN, HEIDENREICH, MELENDEZ, 

AND ASSOCIATES, LLC, a New York 

limited liability company, also doing 

business as CAPITAL ASSETS, 

SECURITIES AND HOLDINGS GROUP,

J&V RECEIVABLES LLC, a New York 

limited liability company,

RICH FINANCIAL LLC, a Delaware limited 

liability company,

BCH & ASSOCIATES LTD, a New York 

corporation, and

ROBERT HEIDENREICH, individually and 

as a principal and owner or de facto owner 

of CAMPBELL CAPITAL LLC, KAHL 

HEIDENREICH AND NEMMER LLC, 

URBAN, HEIDENREICH, MELENDEZ, 

AND ASSOCIATES, LLC, J & V 

RECEIVABLES LLC, RICH FINANCIAL 

LLC, and BCH & ASSOCIATES LTD.

Defendants.

10-CV-1163

EX PARTE TEMPORARY 

RESTRAINING ORDER AND 

PROVIDING OTHER 

TEMPORARY EQUITABLE 

RELIEF

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Plaintiffs, the Federal Trade Commission (“FTC”) and the People of the State of 

New York (“State of New York,” and, collectively with the FTC, “Plaintiffs”), have filed a 

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); Section 

814(a) of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692l(a); New

York Executive Law § 63(12); and N.Y. General Business Law Articles 22-A, § 349, and 

29-H, § 602. Docket Item 1. They also have moved, pursuant to Fed. R. Civ. P. 65(b), 

for a temporary restraining order, an asset freeze, other equitable relief, and an order to 

show cause why a preliminary injunction should not issue against Robert Heidenreich; 

Campbell Capital LLC; Kahl, Heidenreich, and Nemmer LLC; Urban, Heidenreich, 

Melendez, and Associates, LLC; J & V Receivables LLC; Rich Financial LLC; and BCH 

& Associates Ltd. Docket Item 2.

FINDINGS OF FACT

This Court has reviewed the Complaint, Docket Item 1; the ex parte Motion for a 

Temporary Restraining Order, Docket Item 2; declarations, exhibits, and the 

memorandum of law filed in support thereof, Docket Items 3, 4, and 6; and Magistrate 

Judge Michael J. Roemer’s Report and Recommendation, Docket Item 14. Based on 

this review, this Court finds that:

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

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

venue in this district is proper. 

B. There is good cause to believe that, in numerous instances, Defendants 

have engaged in deceptive and abusive Debt collection tactics to pressure consumers 

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into paying alleged Debts, including by telling consumers that they owe more than 

Defendants’ own records indicate the consumers owe. 

C. There is good cause to believe that Defendants have engaged in and are 

likely to engage in acts or practices that violate Section 5(a) of the FTC Act, 15 U.S.C. 

§ 45(a); the FDCPA, 15 U.S.C. §§ 1692 – 1692p; New York Executive Law § 63(12);

New York General Business Law § 349; and NY General Business Law § 601, and that 

Plaintiffs are therefore likely to prevail on the merits of this action. As demonstrated by 

the former employee declarations, consumer declarations, transcripts of calls, 

investigator declarations, and the declaration of a forensic accountant filed by Plaintiffs, 

the FTC and the State of New York have established a likelihood of success in showing 

that Defendants have engaged in unlawful Debt collection practices. 

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

result from Defendants’ ongoing violations of the FTC Act, the FDCPA, New York 

Executive Law § 63(12), and New York General Business Law §§ 349 and 601 unless 

Defendants are restrained and enjoined by order of this Court. 

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

the Court’s ability to grant effective final relief for consumers – including monetary 

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

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

records, unless Defendants 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 ex parte without prior notice to Defendants. Thus, there is 

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good cause for relieving Plaintiffs of the duty to provide Defendants with prior notice of 

its Motion for a Temporary Restraining Order. 

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

Receivership Entities, freezing Defendants’ assets, permitting the Plaintiffs and the 

Receiver immediate access to the Defendants’ business premises, and permitting the 

Plaintiffs and the Receiver to take expedited discovery. 

G. Weighing the equities and considering Plaintiffs’ 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. 

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

FTC Act, 15 U.S.C. § 53(b); Federal Rule of Civil Procedure 65; 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, including any digital assets such as 

cryptocurrencies. 

B. “Corporate Defendant(s)” means Campbell Capital LLC; Kahl, 

Heidenreich, and Nemmer LLC; Urban, Heidenreich, Melendez, and Associates, LLC;

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J & V Receivables LLC; Rich Financial LLC; and BCH & Associates Ltd., and each of 

their subsidiaries, affiliates, successors, and assigns. 

C. “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. 

D. “Defendant(s)” means Corporate Defendants and Individual Defendant 

Robert Heidenreich, individually, collectively, or in any combination. 

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

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

34(a), 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. 

F. “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. 

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G. “Individual Defendant” means Robert Heidenreich. 

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

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

I. “Receivership Entities” means Corporate Defendants as well as any 

other entity that has conducted any business related to Defendants’ Debt collection,

including receipt of Assets derived from any activity that is the subject of the Complaint 

in this matter and that the Receiver determines is controlled or owned by any 

Defendant. 

ORDER

I. PROHIBITED REPRESENTATIONS AND DEBT COLLECTION ACTIVITIES

IT IS THEREFORE 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 collection or the attempted collection 

of any Debt, are temporarily restrained and enjoined from: 

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

implication, any material fact, including, but not limited to: 

1. that the consumer has committed a criminal act, such as fraud, in 

connection with the alleged failure to pay a Debt; 

2. that nonpayment of an alleged Debt will result in the consumer’s 

arrest or imprisonment or the service of legal papers on the 

consumer; 

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3. that Defendants have filed, or intend to file imminently, a lawsuit 

against the consumer; 

4. that Defendants’ Debt collector is a member of or affiliated with a 

law enforcement agency or other federal or state government 

entity; 

5. that Defendants’ Debt collector is a process server or is working 

with a process server or someone who serves legal documents; 

6. that Defendants’ Debt collector is a lawyer, employed by a lawyer 

or law firm, or working with a lawyer; or 

7. the character, amount, or legal status of a Debt; 

B. Collecting or attempting to collect a Debt from a consumer that the 

consumer does not owe or in an amount that the consumer does not owe; 

C. Collecting or attempting to collect a Debt from a consumer that 

Defendants do not have a right to collect; 

D. Communicating with any person other than the consumer; the consumer’s 

attorney; a consumer reporting agency if otherwise permitted by law; the 

creditor; the attorney of the creditor; the Debt collector or the attorney of 

the Debt collector; the consumer’s spouse, parent (if the consumer is a 

minor), guardian, executor, or administrator for purposes other than 

acquiring location information about a consumer, without having obtained 

directly the prior consent of the consumer or the express permission of a 

court of competent jurisdiction, and when not reasonably necessary to 

effectuate a post-judgment judicial remedy; 

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E. Using obscene or profane language or language the natural consequence 

of which is to abuse the hearer; 

F. Threatening to take action that is not lawful or that any Defendant or any 

other person does not intend to take; 

G. Using a business, company, or organization name other than the true 

name of the business, company, or organization; 

H. Using any false representation or deceptive means to collect or attempt to 

collect a Debt, or to obtain information concerning a consumer;

I. Communicating or threatening to communicate the nature of a claim to 

the consumer’s employer prior to obtaining final judgment against the 

consumer;

J. Threatening any action that the Debt collector in the usual course of its 

business does not in fact take;

K. Claiming or attempting or threatening to enforce a right with knowledge or 

reason to know that the right does not exist; and 

L. Engaging in any conduct that violates the FDCPA, 15 U.S.C. §§ 1692-

1692p, or New York General Business Law § 601. 

II. 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: 

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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; to their attorneys as required for their defense; as required 

by any law, regulation, or court order; or in any filings, pleadings or discovery in this 

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

protective order in the case. 

III. ASSET FREEZE

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

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

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

are hereby temporarily restrained and enjoined from: 

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

selling, concealing, dissipating, disbursing, assigning, relinquishing, spending, 

withdrawing, granting a lien or security interest or other interest in, or otherwise 

disposing of any Assets that are: 

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

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

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, debit, or ATM card 

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

corporation, partnership, or other entity directly or indirectly owned, managed, or 

controlled by any Defendant or 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; and (2) Assets obtained by Defendants after this Order 

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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.

IV. 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, currency exchange or cryptocurrency exchange or service provider, business 

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

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

otherwise, of any Document on behalf of any Defendant or any Asset that has been

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) has held, controlled, or maintained custody, through an account or 

otherwise, of any Document or Asset associated with credits, debits, or charges made 

on behalf of any Defendant, 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 

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

account, shall: 

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

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

dissipation, relinquishment, conversion, sale, or other disposal of any such Document or 

Asset, as well as all Documents or other property related to such Assets, except by 

further order of this Court; provided, however, that this provision does not prohibit an 

Individual Defendant from incurring charges on a personal credit card established prior 

to entry of this Order, up to the pre-existing credit limit;

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; 

C Provide Plaintiffs’ counsel and the Receiver, within three (3) days of 

receiving a copy of this Order, a sworn statement setting forth, for each Asset or 

account covered by this Section: 

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; 

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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;

4 The cryptographic hash value, time stamp, transaction data, public 

addresses, or other information sufficient to identify, locate, and 

track cryptocurrency in any blockchain or distributed ledger 

technology system that belongs to, is for the use or benefit of, is 

under the control of, or is subject to access by any Defendant; and 

D Upon the request of Plaintiffs’ counsel or the Receiver, promptly provide 

Plaintiffs’ counsel and the Receiver with copies of all records or other Documents 

pertaining to each account or Asset covered by this Section, including originals or 

copies of account applications, account statements, signature cards, checks, drafts, 

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

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

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

commercial mail boxes, and storage facilities,

Provided, however, that this Section does not prohibit any transfers to the 

Receiver or repatriation of foreign Assets specifically required by this order.

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V. FINANCIAL DISCLOSURES

IT IS FURTHER ORDERED that each Defendant, within five (5) days after

service of this Order upon them, shall prepare and deliver to Plaintiffs’ counsel and the 

Receiver: 

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

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

Defendant, and

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

Defendant; and 

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

Return) for each Individual and Corporate Defendant.

VI. FOREIGN ASSET REPATRIATION

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

Order, each Defendant shall: 

A. Provide Plaintiffs’ 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; 

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B. Take all steps necessary to provide Plaintiffs’ 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 D;

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

located in foreign countries that 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. On the same business day as any repatriation, (1) notify the Receiver and 

counsel for Plaintiffs of the name and location of the financial institution or other entity 

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

financial institution or other entity. 

VII. NON-INTERFERENCE WITH REPATRIATION

IT IS FURTHER ORDERED that Defendants; 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, that 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 

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“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 a court order, until such time that all Defendants’ Assets have 

been fully repatriated pursuant to this Order. 

VIII. CONSUMER CREDIT REPORTS

IT IS FURTHER ORDERED that Plaintiffs may obtain credit reports concerning 

any Defendants pursuant to Section 604(a)(1) of the Fair Credit Reporting Act, 15

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

which such reports are requested shall provide them to Plaintiffs.

IX. PRESERVATION OF RECORDS

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

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

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

are hereby temporarily restrained and enjoined from: 

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

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

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

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

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

finances of entities directly or indirectly under common control with any other 

Defendant; and 

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

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

transactions, and use of Defendants’ Assets. 

X. 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 Plaintiffs’ counsel and the Receiver with a written 

statement disclosing: (1) the name of the business entity; (2) the address and 

telephone number of the business entity; (3) the names of the business entity’s officers, 

directors, principals, managers, and employees; and (4) a detailed description of the 

business entity’s intended activities. 

XI. TEMPORARY RECEIVER

IT IS FURTHER ORDERED that James C. Thoman, a partner in the firm of 

Hodgson Russ LLP, is appointed as temporary receiver of the Receivership Entities with 

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

acting as Receiver under this Order.

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XII. DUTIES AND AUTHORITY OF RECEIVER

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

accomplish the following: 

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

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

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

participation in, the affairs of the Receivership Entity; 

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

Documents of, or in the possession, custody, or under the control of, any Receivership 

Entity, wherever situated; 

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

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

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

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

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

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

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

of those Assets. The Receiver shall assume control over the income and profits 

therefrom and all sums of money now or hereafter due or owing to the Receivership 

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

the Receivership Entities and of other persons or entities whose interests are now 

under the direction, possession, custody, or control of the Receivership Entities,

provided, however, that the Receiver shall not attempt to collect any amount from a 

consumer if the Receiver believes the consumer’s Debt to the Receivership Entities has 

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

Complaint in this matter, without prior Court approval; 

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

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

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

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

financial accounts and access to electronic documents held onsite or by Electronic Data 

Hosts), by changing usernames, passwords, or other log-in credentials; take 

possession of all electronic Documents of the Receivership Entities stored onsite or 

remotely; take whatever steps are necessary to preserve all such Documents; and 

obtain the assistance of the FTC’s Digital Forensic Unit for the purpose of obtaining 

electronic documents stored onsite or remotely; 

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

other independent contractors and technical specialists, as the Receiver deems 

advisable or necessary in the performance of duties and responsibilities under the 

authority granted by this Order; 

G. Make payments and disbursements from the receivership estate that are 

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

granted by, this Order, and enter into, or authorize the making of, such agreements as 

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

Receiver shall apply to the Court for prior approval of any payment of any Debt or 

obligation incurred by the Receivership Entities prior to the date of entry of this Order, 

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except payments that the Receiver deems necessary or advisable to secure Assets of 

the Receivership Entities, such as rental payments; 

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

location from which the Receivership Entities operate their businesses. Such steps 

may include, but are not limited to, any of the following, as the Receiver deems 

necessary or advisable: (1) securing the location by changing the locks and alarm 

codes and disconnecting any internet access or other means of access to the 

computers, servers, internal networks, or other records maintained at that location; and 

(2) requiring any persons present at the location to leave the premises, to provide the 

Receiver with proof of identification, and/or to demonstrate to the satisfaction of the 

Receiver that such persons are not removing from the premises or destroying 

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

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

these provisions in order to keep the peace and maintain security and are authorized to 

use any necessary and reasonable force to do so. If requested by the Receiver, the 

United States Marshal will provide appropriate and necessary assistance to the 

Receiver to implement this Order; 

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

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

any Defendants, and to provide access to all such web pages or websites to Plaintiffs’ 

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

representatives; 

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

necessary; 

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

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

Entities; 

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

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

thereof to all parties; 

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

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

arbitration proceedings, as the Receiver deems necessary and advisable to preserve or 

recover the Assets of the Receivership Entities, or to carry out the Receiver’s mandate 

under this Order, including but not limited to, actions challenging fraudulent or voidable 

transfers; 

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

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

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

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

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

Entities in such designated accounts and shall make all payments and disbursements 

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

monthly account statements on all parties; 

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

Receiver;

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

Defendants’ representatives and Defendants themselves, reasonable access to the 

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

Entities conduct business. The purpose of this access shall be to inspect and copy any 

and all books, records, Documents, accounts, and other property owned by, or in the 

possession of, the Receivership Entities or their agents. The Receiver shall have the 

discretion to determine the time, manner, and reasonable conditions of such access;

R. Allow the Plaintiffs’ representatives, agents, and assistants, as well as 

Defendants’ and Defendants’ themselves, reasonable access to all Documents in the 

possession, custody, or control of the Receivership Entities; 

S. Cooperate with reasonable requests for information or assistance from 

any state or federal civil or criminal law enforcement agency; 

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

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

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

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

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

however, that the Receiver may delay providing such notice until the Receiver has 

established control of the nonparty entity and its assets and records, if the Receiver 

determines that notice to the entity or the parties before the Receiver establishes 

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control over the entity may result in the destruction of records, dissipation of assets, or 

any other obstruction of the Receiver’s control of the entity; and 

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

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

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

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

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

associated with the Receivership Entities cannot be accessed by the public, or are 

answered solely to provide consumer education or information regarding the status of 

operations.

XIII. TRANSFER OF RECEIVERSHIP PROPERTY TO RECEIVER

IT IS FURTHER ORDERED that Defendants and any other person with 

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

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

with and assist the Receiver in taking and maintaining possession, custody, or control of 

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

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

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

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

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

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

independent sales organizations, third party processors, payment gateways, insurance 

companies, or other entities; 

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

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

conduct the business of the Receivership Entities; 

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

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

Entities; and

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

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

including access to their business premises, means of communication, accounts, 

computer systems (onsite and remote), Electronic Data Hosts, or other property. 

If any person or entity fails to deliver or transfer any Asset or Document, or 

otherwise fails to comply with any provision of this Section, the Receiver may file an 

Affidavit of Non-Compliance regarding the failure and a motion seeking compliance or a 

contempt citation. 

XIV. PROVISION OF INFORMATION TO RECEIVER

IT IS FURTHER ORDERED that Defendants shall immediately provide to the 

Receiver: 

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

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

other than a Receivership Entity; 

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

persons in active concert and participation with the Receivership Entities, or who have 

been associated or done business with the Receivership Entities; and 

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

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

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

electronic documents. 

XV. COOPERATION WITH THE RECEIVER

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

or Receivership Entities’ officers, agents, 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 of or records relating to the Receivership Entities 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, and machines (onsite or remotely) and any cloud account 

(including specific method to access account) or electronic file in any medium; advising 

all persons who owe money to any Receivership Entity 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 Receivership Entities.

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XVI. NON-INTERFERENCE WITH THE RECEIVER

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

or Receivership Entities’ 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 any other person served with a copy of this Order, are hereby restrained and 

enjoined from directly or indirectly: 

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

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

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

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

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

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

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

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

XVII. STAY OF ACTIONS

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

pendency of the receivership ordered herein, Defendants, 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 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 

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

limited to: 

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

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

Receivership Entities;

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

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

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

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

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

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

Receivership Entities; or attempting to foreclose, forfeit, alter, or terminate any interest 

in any Asset of the Receivership Entities, whether such acts are part of a judicial 

proceeding, are acts of self-help, or otherwise,

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

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

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

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

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

governmental unit’s police or regulatory power. 

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XVIII. COMPENSATION OF RECEIVER

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

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

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

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

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

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

periodic requests for the payment of such reasonable compensation, with the first such 

request filed no more than sixty (60) days after the date of entry of this Order, and each 

subsequent request being filed within ninety (90) days thereafter. The Receiver shall 

not increase the hourly rates used as the bases for such fee applications without prior 

approval of the Court.

XIX. RECEIVER’S BOND

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

Court a bond in the sum of $35,000 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. 

XX. IMMEDIATE ACCESS TO BUSINESS PREMISES AND RECORDS

IT IS FURTHER ORDERED that:

A. In order to allow Plaintiffs and the Receiver to preserve Assets, 

Documents, and evidence relevant to this action and to expedite discovery, Plaintiffs 

and the Receiver, and their representatives, agents, contractors, and assistants, shall 

have immediate access to the business premises and storage facilities, owned, 

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controlled, or used by the Receivership Entities. Such locations include, but are not 

limited to, 1517 Kenmore Avenue, Kenmore, NY 14217, and any offsite location or 

commercial mailbox used by the Receivership Entities. The Receiver may exclude 

Defendants, Receivership Entities, and their employees from the business premises 

during the immediate access; 

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

and assistants, are authorized to remove Documents from the Receivership Entities’ 

premises in order that they may be inspected, inventoried, and copied. Plaintiffs shall 

return any removed materials to the Receiver within five (5) business days of 

completing inventorying and copying, or within such time as is agreed upon by Plaintiffs 

and the Receiver; 

C. Plaintiffs’ access to the Receivership Entities’ documents pursuant to this 

Section shall not provide grounds for any Defendant to object to any subsequent 

request for documents served by Plaintiffs; 

D. Plaintiffs 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 Receivership Entities 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 

Receivership Entities shall produce to the Receiver all such Documents, computers, 

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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 Receivership Entity are stored 

with an Electronic Data Host, such Entity shall, immediately upon receiving notice of this 

order, provide the Receiver with the username, 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. 

XXI. DISTRIBUTION OF ORDER BY DEFENDANTS

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

this Order to each affiliate, successor, assign, member, officer, director, employee, 

agent, independent contractor, client, attorney, spouse, subsidiary, division, and 

representative of any Defendant, and shall, within ten (10) days from the date of entry of 

this Order, provide Plaintiffs 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, 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. 

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XXII. EXPEDITED DISCOVERY

IT IS FURTHER ORDERED that, notwithstanding the provisions of Fed. R. Civ. 

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

Plaintiffs 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’ 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. Plaintiffs and the Receiver may take the deposition of parties and nonparties. Forty-eight (48) hours’ notice shall be sufficient notice for such depositions. 

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

Federal Rules of Civil Procedure regarding subsequent depositions of an individual 

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

pursuant to this Section shall not be counted towards the deposition limit set 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. Plaintiffs 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 notice shall be deemed sufficient for the 

production of any such Documents that are maintained or stored only in an electronic 

format; 

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C. Plaintiffs and the Receiver may serve upon parties interrogatories that 

require response within five (5) days after Plaintiffs or the Receiver serve such 

interrogatories; 

D. Plaintiffs 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 personal service, facsimile, email, or overnight 

delivery; 

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

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

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

Section does not require a meeting or conference of the parties, pursuant to Rules 

26(d) & (f) of the Federal Rules of Civil Procedure; and

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

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

XXIII. 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 Plaintiffs, by any law enforcement agency, or by private process server, 

upon any Defendant or any person (including any financial institution) that may have 

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possession, custody, or control of any Asset or Document of any Defendant, or that may 

be subject to any provision of this Order pursuant to Rule 65(d)(2) of the Federal Rules 

of Civil Procedure. For purposes of this Section, service upon any branch, subsidiary, 

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

XXIV. CORRESPONDENCE AND SERVICE ON PLAINTIFFS

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

correspondence and service of pleadings on Plaintiffs shall be addressed to: 

Christopher Y. Miller Christopher L. Boyd 

Staff Attorney Assistant Attorney General 

Federal Trade Commission New York State Office of the Attorney General 

Northeast Region 350 Main Street, Suite 300A 

One Bowling Green, Suite 318 Buffalo, NY 14202 

New York, NY 10004 (716) 853-8457 

(212) 607-2811 (716) 853-8414 

(212) 607-2822 

cmiller@ftc.gov 

Christopher.Boyd@ag.ny.gov 

XXV. STATUS CONFERENCE AND SCHEDULING OF PRELIMINARY INJUNCTION 

HEARING

IT IS FURTHER ORDERED that, pursuant to Fed. R. Civ. P. 65(b), Defendants 

shall appear on the 2nd Day of November, 2018, at 3:00 p.m., at the United States 

Courthouse, Niagara Courtroom (8th Floor), Buffalo, New York, for a status conference 

relative to this Order and, if appropriate, to schedule a show-cause hearing to take 

place on a later date. At any show cause hearing, Defendants must show cause, if 

there is any, why this Court should not enter a preliminary injunction, pending final ruling 

on the Complaint against Defendants, enjoining the violations of the law alleged in the 

Complaint, continuing the freeze of Defendants’ Assets, continuing the receivership, 

and imposing such additional relief as may be appropriate.

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XXVI. BRIEFS AND AFFIDAVITS CONCERNING PRELIMINARY INJUNCTION

IT IS FURTHER ORDERED that:

A. Unless otherwise ordered by the Court at the November 2, 2018 status 

conference, Defendants shall file with the Court and serve on Plaintiffs’ counsel 

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

legal memoranda no later than four (4) days prior to any show-cause hearing that 

is scheduled at the November 2, 2018 status conference. Plaintiffs may file 

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

the Court and serve the same on counsel for Defendants no later than one (1) 

day prior to any show-cause hearing, provided that such affidavits, pleadings, 

motions, expert reports, declarations, legal memoranda or opposition must be 

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

received by the other party or parties no later than 5:00 p.m. (E.S.T.) on the 

appropriate dates set forth in this subsection; and

B. An evidentiary hearing on Plaintiffs’ request for a preliminary injunction is not 

necessary unless Defendants demonstrate that they have in their possession, 

and intend to introduce, evidence that raises a genuine and material factual 

issue. Otherwise, the question of whether this Court should enter a preliminary 

injunction pursuant to Rule 65 of the Federal Rules of Civil Procedure enjoining 

the Defendants during the pendency of this action shall be resolved on the 

pleadings, declarations, exhibits, and memoranda filed by, and oral argument of, 

the parties. Live testimony shall be heard only on further order of this Court. Any

motion to permit such testimony shall be filed with the Court and served on

counsel for the other parties at least five (5) days prior to the preliminary 

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injunction hearing in this matter. Such motion shall set forth the name, address, 

and telephone number of each proposed witness, a detailed summary or affidavit 

disclosing the substance of each proposed witness’s expected testimony, and an 

explanation of why taking live testimony would be helpful to this Court. Any 

papers opposing a timely motion to present live testimony or to present live 

testimony in response to another party’s timely motion to present live testimony 

shall be filed with this Court and served on the other parties at least three (3) 

days prior any show-cause hearing,

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

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

received by the other parties no later than 5:00 p.,. (E.S.T.) on the appropriate dates 

provided in this subsection.

XXVII. DURATION OF THE ORDER

IT IS FURTHER ORDERED that the Temporary Restraining Ordered granted 

herein shall expire on the 6th day of November, 2018, at 5:00 p.m. (E.S.T.), unless 

within such time, the Order, for good cause shown, is extended for an additional period 

not to exceed ten (10) calendar days, or unless it is further extended pursuant to 

Federal Rule of Civil Procedure 65.

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XXVIII. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that the United States District Court for the Western 

District of New York shall retain jurisdiction of this matter for all purposes.

IT IS SO ORDERED.

Dated: October 25, 2018 at 6:30 p.m. (E.S.T.)

Buffalo, New York

s/Lawrence J. Vilardo

LAWRENCE J. VILARDO

UNITED STATES DISTRICT JUDGE

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