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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

__________________________________________

)

FEDERAL TRADE COMMISSION, )

) Case No. 17-cv-194

Plaintiff, )

) Judge Kennelly

v. )

) 

CREDIT BUREAU CENTER, LLC, et al., )

)

Defendants. )

)

ORDER HOLDING DEFENDANT

MICHAEL BROWN IN CIVIL CONTEMPT

Plaintiff, the Federal Trade Commission (“FTC”), filed a Motion for an Order Holding

Defendant Michael Brown in Civil Contempt (“Contempt Motion”) (Dkt. 82). The Court having 

considered all memoranda, declarations, and other exhibits filed herein, and having held an 

evidentiary hearing on June 28, 2017, and for the reasons stated in open court,

IT IS HEREBY ORDERED as follows:

CIVIL CONTEMPT

1. Defendant Michael Brown (“Brown”) is found in civil contempt for violating the 

following sections of the Preliminary Injunction as to Defendants Credit Bureau Center, LLC 

and Michael Brown (“Preliminary Injunction”) (Dkt. 59) entered by the Court on February 21, 

2017:

a. Section I.C.2: Prohibiting Defendants from “charging, attempting to 

charge, or continuing to charge consumers through a negative option feature without having 

obtained their express informed consent;”

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b. Section II.C: Prohibiting Defendants from “[c]ashing any checks or 

depositing or processing any payments from customers of Defendants;”

c. Section VI.A: Prohibiting the disclosure or sale of “financial or identifying 

personal information of any person from whom or about whom any Defendant obtained such 

information in connection with activities alleged in the FTC’s Complaint;”

d. Section VI.B: Prohibiting Defendants from benefiting from or using the 

“financial or identifying personal information of any person from whom or about whom any 

Defendant obtained such information in connection with activities alleged in the FTC’s 

Complaint;”

e. Section VII.B.2: Granting the Receiver exclusive custody and control of 

all assets and “full power” to “sue for, collect, receive, take in possession, hold, and manage all 

asserts and documents;” and

f. Section VII.C.2.a: Prohibiting Defendants from transacting any business 

of the “Receivership Defendant,” defined as “Credit Bureau Center, LLC, a Delaware limited 

liability company, formerly known as MyScore LLC, and also doing business as 

eFreeScore.com, CreditUpdates.com, and FreeCreditNation.com, and its successors and assigns, 

as well as any subsidiaries, affiliates, divisions, or sales or customer service operations, and any 

fictitious business entities or business names created or used by these entities.”

COMPENSATORY SANCTION

2. Brown is ordered to pay to the FTC One Hundred Forty-One Thousand, Five 

Hundred Twenty-Two Dollars and Six Cents ($141,522.06) within 30 days of entry of this Order 

by electronic funds transfer in accordance with instructions provided by a representative of the 

FTC, less any amount the FTC has received from David Ling pursuant to the Stipulated Order 

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Regarding Plaintiff FTC’s Motion for an Order Holding David Ling in Civil Contempt (Dkt. 99), 

entered June 29, 2017, and less any amount the FTC has received pursuant to this Order from the 

bank accounts listed in Paragraph 3 below.

3. Within 10 days of being served with a copy of this Order, Bank of America, N.A. 

is directed to turn over to the FTC all funds in the accounts ending “7915” and “7807” held by 

Credit Data Partners LLC.

4. All money paid to the FTC pursuant to this Order may be deposited into a fund 

administered by the FTC or its designee to be used for compensatory relief, including consumer 

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

of the FTC decides that direct redress to consumers is wholly or partially impracticable or money 

remains after redress is completed, with the Court’s prior approval, the FTC may apply any 

remaining money for such other relief (including consumer information remedies) as it 

determines to be reasonably related to Brown’s practices alleged in the Contempt Motion, or 

deposit funds not used for such relief to the U.S. Treasury as disgorgement. Brown has no right 

to challenge any actions the FTC or its representatives may take pursuant to this Subsection.

PROTECTION OF CONSUMER DATA

5. Within 7 days of entry of this Order, Brown will file with the Court and serve on 

counsel for the FTC a certification signed under penalty of perjury that:

a. Identifies all entities and individuals known to have had possession of, or 

access to, any customer information, including, but not limited to, bank account or credit card 

information, held or used by Credit Bureau Center, LLC, formerly known as MyScore LLC, and 

also doing business as eFreeScore.com, CreditUpdates.com, and FreeCreditNation.com, and its 

successors and assigns, as well as any subsidiaries, affiliates, divisions, or sales or customer 

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service operations, and any fictitious business entities or business names created or used by these 

entities, or Credit Data Partners LLC, also doing business as CreditScores123 (“Customer 

Data”);

b. Certifies that Brown has destroyed all Customer Data in his possession 

and permanently terminated his access to any Customer Data; and

c. Certifies that Brown has confirmed that all entities or individuals 

identified pursuant to Paragraph 5.a above no longer have access to any Customer Data and have 

destroyed all Customer Data in their possession, or have been served by Brown with a copy of 

the Preliminary Injunction and have been notified by Brown in writing that all Customer Data is 

subject to the Preliminary Injunction, including, but not limited to, Section VI (Prohibition on 

Disclosing Customer Information) and Section VII (Permanent Receiver).

SO ORDERED, this 18th day of July, 2017.

Hon. Matthew F. Kennelly 

United States District Judge

Northern District of Illinois

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