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UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF FLORIDA

FEDERAL TRADE COMMISSION, 

 Plaintiff,

v. 

DEVUMI, LLC, a limited liability company; and

GERMAN CALAS, JR, individually and as an 

officer of DEVUMI, LLC,

 Defendants.

Case No. 9:19-cv-81419-RKA 

STIPULATED ORDER FOR 

PERMANENT INJUNCTION AND 

MONETARY JUDGMENT

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its Complaint 

For Permanent Injunction And Other Equitable Relief (“Complaint”), for a permanent injunction, 

and other equitable relief in this matter, pursuant to Section 13(b) of the Federal Trade 

Commission Act (“FTC Act”), 15 U.S.C. § 53(b). The Commission and Defendants stipulate to 

the entry of this Stipulated Order for Permanent Injunction and Monetary Judgment (“Order”) to 

resolve all matters in dispute in this action between them.

THEREFORE, IT IS ORDERED as follows:

FINDINGS

1. This Court has jurisdiction over this matter.

2. The Complaint charges that Defendants participated in deceptive acts or practices in

violation of Section 5(a) the FTC Act, 15 U.S.C. § 45(a), in connection with the sale of fake 

indicators of social media influence.

3. Defendants neither admit nor deny any of the allegations in the Complaint, except as

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specifically stated in this Order. Only for purposes of this action, Defendants admit the facts 

necessary to establish jurisdiction.

4. Defendants waive any claim that they may have under the Equal Access to Justice Act, 28 

U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, and agree 

to bear their own costs and attorney fees.

5. Defendants waive all rights to appeal or otherwise challenge or contest the validity of this 

Order.

DEFINITIONS

For the purpose of this Order, the following definitions apply:

A. “Defendants” means the Individual Defendant and the Corporate Defendant, individually, 

collectively, or in any combination.

1. “Corporate Defendant” means Devumi, LLC and its successors and assigns.

2. “Individual Defendant” means German Calas, Jr.

B. “Indicators of Social Media Influence” means any metrics used to assess an individual’s 

or entity’s social media influence, such as followers, friends, connections, subscribers, views, 

plays, likes, reposts, and comments.

ORDER

I. BAN AGAINST SELLING SOCIAL MEDIA INFLUENCE

IT IS ORDERED that Defendants, and 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, must not sell, or assist others in 

selling, Indicators of Social Media Influence to users of third-party social media platforms.

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II. PROHIBITION AGAINST MISREPRESENTATIONS REGARDING SOCIAL 

MEDIA INFLUENCE, REVIEWS, OR ENDORSEMENTS

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, in connection with 

promoting or offering for sale any product or service, must not make any misrepresentation, or 

assist others in making any misrepresentation, expressly or by implication:

A. About the social media influence of any person or entity; or

B. In or about any review or endorsement of any person, entity, product, or service.

III. MONETARY JUDGMENT AND PARTIAL SUSPENSION

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of $2.5 million is entered in favor of the Commission against 

Individual Defendant, as equitable monetary relief.

B. Individual Defendant is ordered to pay to the Commission $250,000 as follows:

1. $50,000 dollars on or before July 22, 2019 or within 7 days of entry of this Order, 

whichever is later; and

2. $200,000 dollars within 365 days of entry of this Order.

C. Such payments to the Commission must be made by electronic fund transfer in accordance 

with instructions previously provided by a representative of the Commission. 

E. Upon Individual Defendant’s making all payments pursuant to Subsection B. above, the 

remainder of the judgment is suspended, subject to the Subsections below.

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F. In the event Individual Defendant fails to make any payment required by this Subsection

B. above within the time for such payment specified in that Subsection, Individual Defendant 

shall be in default and the full amount of the judgment shall immediately become due, plus 

interest from the date of entry of this judgment pursuant to 28 U.S.C. § 1961, less any payments 

already made. Provided, however, that in the event of default, the judgment amount set forth in 

Subsection A. above shall not become due if the Individual Defendant cures such default within 

21 calendar days.

G. After the expiration of the time to cure the default, the Commission shall be entitled to 

immediately exercise any and all rights and remedies against the Individual Defendant and his 

property to collect the full amount of the judgment amount set forth in Subsection A. above and 

interest thereon, less any payments already made.

H. The Commission’s agreement to the suspension of part of the judgment is expressly 

premised upon the truthfulness, accuracy, and completeness of Individual Defendant’s sworn 

financial statements and related documents (collectively, “financial representations”) submitted to 

the Commission, namely:

1. the Financial Statement of Individual Defendant German Calas, Jr. signed on April 1, 

2018, together with Attachments A through E and 24A through 24E;

2. the representations and additional documentation submitted by Defendants’ counsel 

Jeffrey Alberts to Commission Counsel Richard Cleland and Michael Ostheimer dated April 16, 

2019 and April 24, 2019;

I. The suspension of the judgment will be lifted as to Individual Defendant if, upon motion 

by the Commission, the Court finds that he failed to disclose any material asset, materially 

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misstated the value of any asset, or made any other material misstatement or omission in the 

financial representations identified above.

J. If the suspension of the judgment is lifted, the judgment becomes immediately due as to 

Individual Defendant in the amount specified in Subsection A. above (which the parties stipulate 

only for purposes of this Section represents the consumer injury alleged in the Complaint), less 

any payment previously made pursuant to this Section, plus interest computed from the date of 

entry of this Order.

IV. ADDITIONAL MONETARY PROVISIONS

IT IS FURTHER ORDERED that:

A. Defendants relinquish dominion and all legal and equitable right, title, and interest in all 

assets transferred pursuant to this Order and may not seek the return of any assets.

B. The facts alleged in the Complaint will be taken as true, without further proof, in any 

subsequent civil litigation by or on behalf of the Commission, including in a proceeding to 

enforce its rights to any payment or monetary judgment pursuant to this Order, such as a 

nondischargeability complaint in any bankruptcy case.

C. The facts alleged in the Complaint establish all elements necessary to sustain an action 

by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. 

§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes.

D. Defendants acknowledge that their Taxpayer Identification Numbers (Social Security 

Numbers or Employer Identification Numbers), which Defendants previously submitted to the 

Commission, may be used for collecting and reporting on any delinquent amount arising out of 

this Order, in accordance with 31 U.S.C. §7701.

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E. All money paid to the Commission pursuant to this Order may be deposited into a fund 

administered by the Commission or its designee to be used for equitable relief, including 

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

representative of the Commission decides that direct redress to consumers is wholly or partially 

impracticable or money remains after redress is completed, the Commission may apply any 

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

determines to be reasonably related to Defendants’ practices alleged in the Complaint. Any 

money not used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement. 

Defendants have no right to challenge any actions the Commission or its representatives may take 

pursuant to this Subsection.

V. 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 are permanently restrained and enjoined from directly or 

indirectly: 

A. disclosing, using, or benefitting from customer information, including the name, address, 

telephone number, email address, social security number, other identifying information, or any 

data that enables access to a customer’s account (including a credit card, bank account, or other 

financial account), that any Defendant obtained in connection with Corporate Defendant’s 

advertising, marketing, distribution, or sale of Indicators of Social Media Influence; and

B. failing to destroy such customer information in all forms in their possession, custody, or 

control within 30 days after receipt of written direction to do so from a representative of the 

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Commission.

Provided, however, that customer information need not be disposed of, and may be 

disclosed, to the extent requested by a government agency or required by law, regulation, or court 

order.

VI. ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of this 

Order:

A. Each Defendant, within 7 days of entry of this Order, must submit to the Commission an 

acknowledgment of receipt of this Order sworn under penalty of perjury.

B. For 3 years after entry of this Order, Individual Defendant for any business that 

such Defendant, individually or collectively with any other Defendants, is the majority owner or 

controls directly or indirectly, and Corporate Defendant, must deliver a copy of this Order to: (1) 

all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and 

representatives having managerial responsibilities for the conduct specified in Sections I and II;

and (3) any business entity resulting from any change in structure as set forth in the Section titled 

Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current 

personnel. For all others, delivery must occur before they assume their responsibilities.

C. From each individual or entity to which a Defendant delivered a copy of this Order, that 

Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this 

Order.

VII. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

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Commission:

A. Ninety days after entry of this Order, each Defendant must submit a compliance report, 

sworn under penalty of perjury:

1. Each Defendant must: (a) identify the primary physical, postal, and email address and 

telephone number, as designated points of contact, which representatives of the Commission may 

use to communicate with Defendant; (b) identify all of that Defendant’s businesses by all of their 

names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the 

activities of each business, including the goods and services offered, the means of advertising, 

marketing, and sales, and the involvement of any other Defendant (which Individual Defendant 

must describe if he knows or should know due to his own involvement); (d) describe in detail 

whether and how that Defendant is in compliance with each Section of this Order; and (e) provide 

a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously 

submitted to the Commission. 

2. Additionally, Individual Defendant must: (a) identify all telephone numbers and all 

physical, postal, email and Internet addresses, including all residences; (b) identify all business 

activities, including any business for which such Defendant performs services whether as an 

employee or otherwise and any entity in which such Defendant has any ownership interest; and 

(c) describe in detail such Defendant’s involvement in each such business, including title, role, 

responsibilities, participation, authority, control, and any ownership.

B. For 10 years after entry of this Order, each Defendant must submit a compliance 

notice, sworn under penalty of perjury, within 14 days of any change in the following: 

1. Each Defendant must report any change in: (a) any designated point of contact; or (b) the 

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structure of any Corporate Defendant or any entity that Defendant has any ownership interest in 

or controls directly or indirectly that may affect compliance obligations arising under this Order, 

including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate 

that engages in any acts or practices subject to this Order.

2. Additionally, Individual Defendant must report any change in: (a) name, including 

aliases or fictitious name, or residence address; or (b) title or role in any business activity, 

including any business for which such Defendant performs services whether as an employee or 

otherwise and any entity in which such Defendant has any ownership interest, and identify the 

name, physical address, and any Internet address of the business or entity.

C. Each Defendant must submit to the Commission notice of the filing of any bankruptcy 

petition, insolvency proceeding, or similar proceeding by or against such Defendant within 14 

days of its filing.

D. Any submission to the Commission required by this Order to be sworn under penalty of 

perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I 

declare under penalty of perjury under the laws of the United States of America that the foregoing 

is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if 

applicable), and signature.

E. Unless otherwise directed by a Commission representative in writing, all submissions to 

the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight 

courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of 

Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, 

DC 20580. The subject line must begin: FTC v. Devumi, LLC.

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VIII. RECORDKEEPING

IT IS FURTHER ORDERED that Defendants must create certain records for 10 years

after entry of the Order, and retain each such record for 5 years. Specifically, Corporate 

Defendant in connection with any activity subject to this Order and Individual Defendant for any 

business that such Defendant, individually or collectively with any other Defendants, is a majority 

owner or controls directly or indirectly, must create and retain the following records:

A. accounting records showing the revenues from all goods or services sold;

B. personnel records showing, for each person providing services, whether as an employee or 

otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of 

service; and (if applicable) the reason for termination;

C. records of all consumer complaints and refund requests, whether received directly or 

indirectly, such as through a third party, and any response;

D. all records necessary to demonstrate full compliance with each provision of this Order, 

including all submissions to the Commission; and

E. a copy of each unique advertisement or other marketing material.

IX. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendants’ compliance 

with this Order, including any failure to transfer any assets as required by this Order:

A. Within 14 days of receipt of a written request from a representative of the Commission 

each Defendant must: submit additional compliance reports or other requested information, 

which must be sworn under penalty of perjury; appear for depositions; and produce documents for 

inspection and copying. The Commission is also authorized to obtain discovery, without further 

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leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 

(including telephonic depositions), 31, 33, 34, 36, 45, and 69.

B. For matters concerning this Order, the Commission is authorized to communicate directly 

with each Defendant. Defendant must permit representatives of the Commission to interview 

any employee or other person affiliated with any Defendant who has agreed to such an interview. 

The person interviewed may have counsel present.

C. The Commission may use all other lawful means, including posing, through its 

representatives as consumers, suppliers, or other individuals or entities, to Defendants or any 

individual or entity affiliated with Defendants, without the necessity of identification or prior 

notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, 

pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.

D. Upon written request from a representative of the Commission, any consumer reporting 

agency must furnish consumer reports concerning Individual Defendant, pursuant to Section 

604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1).

X. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes 

of construction, modification, and enforcement of this Order.

SO ORDERED this day of , . 

_______________________________

UNITED STATES DISTRICT JUDGE

SO STIPULATED AND AGREED:

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FOR PLAINTIFF: 

FEDERAL TRADE COMMISSION 

Michael Ostheimer, Attorney 

Federal Trade Commission 

Washington, DC 20580 

202-326-2699 (telephone) 

202-326-3259 (fax) 

mostheimer@ftc.gov 

,J_ frey Alberts, Esq. 

ryor Cashman LLP 

7 Times Square 

New York, NY 10036-6569 

(212) 326-0800 (telephone) 

(212) 326-0806 (fax) 

jalberts@pryorcashman.com 

Date: 

Counsel for Devumi, LLC and German Calas, Jr. 

Devumi, LLC and German Calas, Jr. 

, J , ndividually 

1cer of Devumi, LLC 

Date (;. /t. ~ 1 ,ZC)/"f 

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