C~eni:~11.lril.¥-~tilq:J.96-KC Document 84 *SEALED* Filed 12/03/19 Page 1 of 33 n 1-. l':lC.l V i;~:1w: 

DEC O 2 7.019 

UNITED STATES DISTRICT COURT 

WESTERN DISTRICT OF TEXAS 

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Federal Trade Commission, and 

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State of Ohio ex rel. Attorney General 

4 Dave Yost, No. 2_: l 9-CV- / q 6 

5 Plaintiffs, 

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V, EX PARTE TEMPORARY 7 RESTRAINING ORDER WITH ASSET Educare Centre Services, Inc., a 8 FREEZE, APPOINTMENT OF A New Jersey corporation, also dba TEMPORARY RECEIVER, AND Credit Card Services, Card 9 OTHER 'EQUITABLE RELIEF, AND Services, Credit Card Financial ORDER TO SHOW CAUSE WHY A 

10 Services, Care Net, Tripletel Inc., PRELIMINARY INJUNCTION Revit Educ Srvc, L.L. Vision, SHOULD NOT ISSUE 11 Care Value Services, and Card 

Value Services, 12 

Tripletel, Inc., a Delaware 13 

corporation, 

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ProJink Vision, S.R.L., a 

15 Dominican Republic limited 

liability company, 16 

17 9896988 Canada Inc., a 

Canadian company, 

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Globex Telecom, Inc., a Nevada 

19 corporation, 

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9506276 Canada, Inc., <lba 

21 Globex Telecom, Inc., a Canadian 

company, 22 

Sam Madi, individually and as an 23 

owner, officer, member, and/or 

24 manager of Edu care Centre 

Services, Inc., 

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Mohammad Souheil a/k/a 26 Mohammed Souheil and Mike 

SouheH, individually and as an 27 

owner, officer, member, and/or 

28 muna 1er of Educare Centre 
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Services, Inc., 9896988 Canada, 

Inc., Globex Telecom, Inc., 

9506276 Canada, Inc., and Prolink 

Vision, S.R.L., 

Wissam Abedel Jalil a/k/a Sam 

Jalil, individually and as an 

owner, officer, member, and/or 

manager ofTripletel, Inc., and 

Pro1ink Vision, S.R.L., 

Charles Kharouf, individually 

and as an owner, officer, member, 

and/or m.anager ofEducare Centre 

Services, Inc., and 

Prolink Vision, S.R.L., 

Defendants. 

On July 18, 2019, the Federal Trade Commission ("FTC") and the State of Ohi

(collectively, "Plaintiffs") filed, ex parte, their Complaint for Permanent Injunction an

Other Equitable Relief pursuant to Section 13(b) of the Federal Trade Commission Ac

("FTC Act"), 15 U.S.C. § 53(b), and the Telemarketing and Consumer Fraud and Abu

Prevention Act ("Telemarketing Act"), 15 U.S.C. §§ 6101-6108, the Ohio Conswner 

Sales Practices Act ("CSPA"), O.R.C. 1345.07, and the Ohio Telephone Solicitation 

Sales Act ("TSSA"), O.R.C. 4719.01 et seq. (Doc. 9); and moved, pursuant to Federal 

Rule of Civil Procedure 65(b), for a temporary restraining order and an order to show 

cause why a preliminary injunction should not issue against Educare Centre Services, 

Inc., Tripletel, Inc., Prolink Vision,S.R.L., Sam Madi, Mohammad Souheil, Wissam 

Abedel Jalil, Charles Kharouf, and relief defendant 9896988 Canada. Inc. (collectively,

"Educare Defednants") (Doc. 1-7). The Court issued a temporary restraining order 

against all the Educare Defendants on July 19, 2019 (Doc. 8), issued a preliminary 

injunction against Defendants Educare Centre Services, Tripletel, and Jalil on July 31, 

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2019 (Doc. 25), and a preliminary injunction show cause hearing as to the remaining 

Educare Defendants is currently set for December 16, 2019. (Doc. 65). 

Plaintiffs have now filed, ex parte, their First Amended ComJllaint that adds 

Globex Telecom, Inc. and 9506276 Canada, Inc. (collectively, "Globex Defendants") as 

defendants, and have moved for a temporary restraining order and an order to show cause 

why a preliminary injunction should not issue against the Globex Defendants. (Doc. 

diJ. 

FINDINGS OF FACT 

The Court, having considered the First Amended Complaint, the Motion for a 

Temporary Restraining Order, declarations, exhibits, and the memorandum of points and 

authorities filed in support thereot: and being otherwise advised, finds that: 

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cause to believe that it will have jurisdiction over all parties hereto and that venue in this 

district is proper. 

B. In issuing the Temporary Restraining Order against the Educarc Defendants (Doc. 

8), the Court found that Plaintiffs sufficiently demonstrated that the Educare Defendants 

operated a credit card interest rate reduction ("CCIRR") service scheme that: ( 1) 

misrepresented material aspects of a Debt Relief Service; (2) charged or received a fee in 

advance of providing debt relief service; (3) delivered unauthorized pre~recorded 

telephone messages ("robocalls") to consumers; ( 4) used remote! y created payment 

orders or remotely created checks ("RCPOs") as payment for goods or services they offer 

or sell to consumers through telemarketing; and (5) failed to disclose the identity of the 

seller of the CCIRR service truthfully, promptly, and in a clear and conspicuous manner 

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to the person receiving the call. This conduct violated the Telemarketing Sales Rule 

("TSR"), 16 C.F.R. Pait 310. 

C. The evidence submitted by Plaintiffs demonstrates that the CCIRR scheme 

generated more than $7 .5 million in unlawful RCPO payments from consumers since 

June 13, 2016, the date when the TSR prohibition on the use ofRCPOs in telemarketing 

transactions went into effect. The Globex Defendants received at least $1.6 million from 

the Educare Defendants, and the Globex Defendants have sent millions of dollars to 

Canadian entities associated with the Educare Defendants. 

D. Plaintiffs have sufficiently demonstrated that the Globex Defendants have 

engaged in assisting and facilitating unlawful telemarketing schemes, including the 

Educare Defendants' CCIRR scheme. The Globex Defendants assisted and facilitated the 

CCIRR scheme by providing the Educare Defendants with the means to call consumers 

throughout the United States via interconnected VoIP communication services and 

facilities. The evidence indicates that the Globex Defendants knew or consciously 

avoiding knowing that the Educare Defendants' CCIRR scheme violated the TSR. 

E. As demons1rated by the declarations of investigators from the FTC and the Ohio 

Attomey General's Office and others, emai]s, bank records, and other documentation 

filed by Plaintiffs, there is good caus~ to believe that the Globex Defendants have 

engaged in and are likely to engage in acts or practices that violate the TSR, 16 C.F .R. 

Pati 310, and that Plaintiffs are therefore likely to prevail on the merits of their assisting 

and facilitating claim against the Globex Defendants .. 

F. There is good cause to believe that the Globex Defendants have engaged in 

significant and sustained violations of the TSR, and that immediate and in-eparable 

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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, 

b·ansfer, destmction or other disposition or concealment by the Globex Defendants of 

their assets or records, 1.mless the Globex Defendants are immediately restrained and 

enjoined by order of this Couit; and that, in accordance with Fed. R. Civ. P. 65(b) the 

interests of justice require that this Order be granted without prior notice to the Globex 

Defendants. Thus, there is good cause for relieving Plaintiffs of the duty to provide the 

Educare Defendants and the Globex Defendants with prior notice of its Application for a 

Temporary Restraining Order. 

G. Good cause exists for appointing a temporary receiver over the Globex 

Defendants, freezing the Globex Defendants' assets, pennitting the Receiver immediate 

access to the Globex Defendants' business premises and emails to obtain and take control 

of the Globex Defendants' business records wherever the records are stored, and 

pennitting the Plaintiffs and the Receiver to take expedited discovery. 

H. Weighing the equities and considering Plaintiffs' likelil1ood of ultimate success 

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

temporary receiver, immediate access to the Globex Defendants' business premises, 

emai]s, and records, expedited discovery, and other equitable relief is in the public 

interest. 

I. This Court has authol'ity 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. 

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J. 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. "Document" is synonymous in meaning and equal in scope to the usage of 

"document" and "electronically stored information" in FederaJ Rule of Civil Procedure 

34(a), Fed. R. Civ. P. 34(a), and includes writings, drawings, graphs, charts, photographs, 

sound and video recordings, images, lnternet sites, web pages, websites, electronic 

con-espondence, including e-mail and insta11t messages, contracts, accounting data, 

advertisements, FTP Logs, Server Access Logs, books, wlitten 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 infonnation can be obtained 

directly 01\ if necessary, after translation into a reasonably usable form. A draft or nonidentical copy is a separate Document within the meaning of the term. 

B. "Electronic Data Host" means any Person 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" 

electron'ic storage. 

C. "Globex Defendants" means Globex Telecom, Inc. and 9506276 Canada, Inc., 

individually or in combination. 

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D. "Person'' means any natural person or any entity, corporation, partnership, or 

association of persons. 

E. "Receiver" means the temporary receiver appointed in Section X of this Order 

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

F. "Receivership Entities" means the Globex Defendants, as well as any other 

entity that conducted any business related (1) the Globex Defendants' assiting and 

facilitating the Educal'e Defendants' CCIRR scheme or (2) the Educare Defendants' 

CCIRR services, including receipt of assets or funds derived from any activity that is the 

subject of the First Amended Complaint in this matter, and that the Receiver determines 

is controlled or owned by any Globex Defendant or Educare Defendant. 

G. "Seller" means any Person who, in connection with a Telemarketing transaction, 

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customers in exchange for consideration. 

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H. "Telemarketer" means any Person who, in connection with Telemarketing, 

initiates or receives telephone calls to or from a customer or donor. 

I. "Telemarketing" means any plan, program, or campaign that is conducted to 

induce the purchase of goods or services or a charitable contribution by use of one or 

more telephones. 

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Case 3:19-cv-00196-KC Document 84 *SEALED* Filed 12/03/19 Page 8 of 33 

ORDER 

I. PROHIBITIONS ON VIOLATING THE TSR 

IT IS FURTHER ORDERED that the Globex Defendants, the Globex 

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, are pennanently restrained and 

enjoined from violating any provision of the Telemarketing Sates Rule, 16 C.F .R. Part 

310, attached as Attachment A, including Section 310.3(b) of the TSR, 16 C.F.R. § 

310.3(b ), by providing substantial assistance or support to any Seller or Telemarketer 

when they know or consciously avoid knowing that the Seller or Telemarketer is engaged 

in any act or practice that violates §§ 310.3(a), ( c) or ( d), or § 310.4 of the TSR. 

II. PROHIBITION ON RELEASE OF CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that the Globex Defendants, the Globex 

Defendants' officers, agents, employees, and attorneys, and all other Persons in active 

concert or pai1icipation with any of them, who receive actual notice of this Order, 

whether acting directly or indirectly, are hereby temporarily restrained and enjoined 

from: 

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 infonnation of any person that 

any GJobex Defendant obtained in connection with any activity that pe1tains to the 

subject matter of this Order; and 

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B. Benefitting from or using t~1e name, address, birth date, telephone nwnber, email 

address, credit card number, bank account number, Social Security number, or other 

financial or identifying information of any person that any Globex Defendant obtained in 

connection with any activity that pertains to the subject matter of this Order. 

Provided, however, that the Globex Defendants may disclose such identifying 

infonnation 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 the Globex Defendants, the Globex 

Defendants' officers, agents, employees, and attorneys, and all other Persons in active . . 

conceit 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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owned or controlled, directly or indirectly, by any Globe Defendant; 

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

in the actual or constructive possession of any Globex Defendant; or 

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4. ?wned 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 Globex Defendant. 

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

or storage facilities titled in the name of any Globex 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. Incuning charges or cash advances on any credit, debit, or A TM 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 

Globex Defendant or of which any Globex Defendant is an officer, director, member, or 

manager. This includes any corporate bankcard or corporate credit card account for 

which any Globex 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 Globex Defendant. 

The assets covered by this Section shall include: (1) all assets of the Globex 

Defendants as of the time this Order is entered; and (2) assets obtained by the Globex 

Defendants after this Order is entered if those assets are derived from any activity that is 

the subject of the Complaint in this matter or that is prohibited by this Order. This 

Section does not prohibit any transfer of assets to the Receiver or repatriation of assets 

specifically required by this Order. 

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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, 

insmance company, business entity, or Person who receives actual notice of this Order 

(by seivice or otherwise) that: 

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

otherwise, of any Document on behalf of any Globex Defendant or any asset that has 

been owned or controlled, directly or indirectly, by any Globex Defendant; held, in 

part or in whole, for the benefit of any Globex Defendant; in the actual or 

constructive possession of any Globex 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 Globex Defendant; 

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

otherwise, of any Pocument or asset associated with credits, debits, or charges made 

on behalf of any Globex Defendant, including reserve funds held by payment 

processors, credit card processors, merchant banks, acquiring banks, independent 

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

or other entities; or 

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

account, shall: 

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

alteration, assignment, transfer, pledge, encwubrance, disbursement, dissipatioi1, 

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 

Couit; 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 Globex Defendant, either 

individually or jointly, or othe1wise subject to access by any Globex 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 whom such account or other 

asset was remitted; and 

3. The identification of any safe deposit box, commercial mail box, or 

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

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any Globex Defendant, or is otherwise subject to access by any Globex 

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 any account covered by this Section or asset, including originals or copies 

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

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

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

1099 fonns, and all logs and records pertain'ing to safe deposit boxes, commercial mail 

boxes, and storage faciJities. 

This Section does not prohibit any transfer of assets to the Receiver or repatriation 

of assets specifically 1·equired by this Order. 

v. FINANCIAL DISCLOSURES 

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

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

Defendant; and 

B. Completed Attachment C (IRS Fonn 4506, Request for Copy of a Tax Retum) 

for each Globex Defendant. 

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VI. FOREIGN ASSET REPATRIATION 

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

this Order, each Globex 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 Globex Defendant; (2) held by any Person for the benefit of any Globex Defendant 

or for the benefit of, any corporation, partnership, asset protection tmst, or other entity 

that is directly or indirectly owned, managed or controlled by any Globex Defendant; or 

(3) under the direct or indirect control, whether jointly or singly, of any Globex 

Defendant; 

B. Take all steps necessary to provide Plaintiffs' counsel and the 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 any and all Documents and assets 

located in foreign countries which are: (1) titled in the name, individually or jointly, of 

any Globex Defendant; (2) held by any Person for the benefit of any Globex Defendant 

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or for the benefit of, any cmporation, pa1tnership, asset protection trust, or other entity 

that is directly or indirectly owned, managed or controlled by any Globex Defendant; or 

(3) wider the direct or indirect control, whether jointly or singly, of any Globex 

Defendant; and 

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D. • 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 Globex Defendants and the Educare 

Defendant, Globex Defendants' officers, agents, employees, and attorneys, and all other 

Persons in active concert or pa1ticipation with any of them, who receive actual notice of 

this Order, whether acting directly or indirectly, are hereby temporarily restrained and 

enjoined from taking any action, directly or indirectly, which may result in the 

encumbrance or dissipation of foreign assets, or in the hindrance of the repatriation 

required by this Order, including, but not limited to: 

A. Sending any communication or engaging in any other act, directly or indirectly, 

that results in a detennination by a foreign trustee or other entity that a "duress" event has 

occurred under the terms of a foreign trust agreement until such time that all Globex 

Defendants' assets have been fully repatriated pm-suant to this Order; or 

B. Notifying any trustee, protector or other agent of any foreign trust ot other rel.ated 

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 Globex 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 Globex Defendants pursuant to Section 604(a)(l) of the Fair Credit 

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Reporting Act, 15 U.S.C. 1681 b(a)(l), and that, upon written request, any credit repo11ing 

agency from which such reports are requested shall provide them to Plaintiffs. 

IX. PRESERVATION OF RECORDS 

IT IS FURTHER ORDERED that Globex Defendants, Defendants' and the 

Globex Defendants' officers, agents, employees, and attorneys, and all other Persons in 

active conce11 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 maru1er, directly or indirectly, Documents 

that relate to: (1) the business, business practices, assets, or business or personal finances 

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

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

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

Defendant; and 

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

fairly, and completely reflect Globex Defendants' incomes, disbursements, transactions, 

and use of Globex Defendants' assets. 

X. TEMPORARY RECEIVER A 

0 IL /., f eμ ;J,fOt ~ L. L-eIT IS FURTHER ORDERED that (\()9 tJ 1:)/N/ is appointed as 

temporary receiver of the Receivership Entities with full powers of an equity receiver. 

The Receiver sha11 be solely the agent of this Court in acting as Receiver under this 

Order. 

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XI. 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 age11t 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 rese1ve 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 perfonn 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 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 conswner's 

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debt to the Receivership Entities has resulted from the deceptive acts or practices or other 

violations oflaw 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 perfo1m all acts necessary or advisable to preserve such 

Documents. The Receiver shall: divexi 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 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 attomeys, accountants, appraisers, and other 

independent contiactors 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 can-ying out the directions of, or exercising the authority granted by, this 

Order, and to incur, or authorize the making of, such agreements as may be necessary and 

advisable in discharging his or her duties as Receiver. The Receiver shall apply to the 

Court for prior approval of any payment of any debt or obligation incuned by the 

Receivership Entities prior to the date of entry of this Order, except payments that the 

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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 nonresidential 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, se1:vers, 

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 demonsb·ate to the satisfaction of the Receiver that such 

persons are not removing from the premises 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. If requested by the Receiver, the United States Marshal will provide 

appropriate and necessaiy assistance to the Receiver to implement this Order and is 

authorized to use any necessary and reasonable force to do so; 

I. Take all steps necessary to prevent the modification, destmction, or erasure of any 

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

incJuding echeckprocessing.net, and to provide access to all such web page or websites to 

Plaintiffs' representative~, agents, and assistants, as well as the Globex Defendants and 

their representatives; 

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

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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 and file the accounting with the Court and deliver copies thereof to all 

parties; 

M. lnstitute, compromise, adjust, appear in, intervene in, defend, dispose of, or 

otherwise become pa11y to any legal action in state, federal or foreign com1s or arbitration 

proceedings as the Receiver deems necessary and advisa~le 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 ~his Order; 

0. 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 

~·eceivership estate from such accounts. The Receiver shall serve copies of monthly 

account statements on all parties; 

P. Maintain accurate records of all receipts and expenditures incun-ed as Receiver; 

Q. Allow the FTC's representatives, agents, and assistants, as well as the Globex 

Defendants' representatives· and the Globex 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 all 

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books, records, Documents, accounts, and other assets 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, and access by the 

FTC's representatives, agents, and assistants sha11 be allowed as soon as practicable; 

R. Allow the Plaintiffs' representatives, agents, and assistants, as welJ as Globex 

Defendants and their representatives, reasonable access to all Documents in the 

possession, custody, or control of the Receivership Entities. 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 dete1mine the time, manner, and reasonable 

conditions of such access; 

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 nonpa11y entity and its assets and records, if the Receiver detennines that notice to the 

entity or the parties before the Receiver establishes control over the entity may result in 

the destruction ofrecords, dissipation of assets, or any other obstruction of the Receiver's 

control of the entity; and 

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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 First Amended 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 educatio'n or information regarding the status of 

operations. 

XII. RECEIVER'S IMMEDIATE ACCESS TO RECEIVERSHIP 

DEFENDANTS' CORPORATE EMAILS AND OTHER 

ELECTRONICALLY STORED BUSINESS RECORDS 

Google, Inc., ~nd any other Electronic Data Host that hosts or provides Gmail 

email services, Google Docs, or google drive or other ES! storage services for 

Receivership Defendants Globex Telecom, Inc, and 9506276 Canada, Inc., including 

email accounts for globextelecom.net, such as mike@globextelecom.net and 

satly@globextelecom.net, are immediately required to secure and preserve all 

Receivership Defendants' emails and other electronically stored business records 

("ESBR") and transfer or deliver control of the Receivership Defendants' emails and 

ESBR and any user names and passwords relating to them, to the Receiver or the 

Receiver's designee upon the Receiver's written request. Furthermore, the Receiver is 

allowed to request that FTC employees and agents to access, secure, copy, and download 

such emails and ESBR. 

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XIII. TRANSFER OF RECEIVERSHIP PROPERTY TO RECEIVER 

IT IS FURTHER ORDERED that the Globex Defendants and any other Person, 

with possession, custody or control of property of, or records reJating to, the Receivership 

Entities shall, upon notice of this Order by personal service or othe1wise, fully cooperate 

with and assist the Receiver in taking and maintaining possession, custody, or contra] 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. 

B. 

All assets held by or for the benefit of the Receivership Entities; 

All Documents or assets associated with credits, debits, or charges made on· behalf 

of any Receivership Entity, wherever•situated, including reserve funds he]d by payment 

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

organizations, third party processors, payment gateways, insurance companies, or other 

entities; 

C. AH 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 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 pe11aining 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. 

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In the event that any Person or entity fails to deliver or transfer any asset or 

Document, or otherwise fails to comply with any provision of this Section, the Receiver 

may file an Affidavit of Non-Compliance regarding the failure and a motion seeking 

compliance or a contempt citation. 

XIV. PROVISION OF INFORMATION TO RECEIVER 

IT IS FURTHER ORDERED that the Globex 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 other than a 

Receivership Entity; 

B. A list of aH agents, employees, officers, attorneys; servants and those Persons in 

active conceit and patticipation 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 .the Globex Defendants; Receivership 

Entities; the Globex Defendants' or Receivership Entities' officers, agents, employees, 

and attorneys, all other Persons in active conceit 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 

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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. 

XVI. NON-INTERFERENCE WITH THE RECEIVER 

IT IS FURTHER ORDERED that the Globex Defendants; Receivership 

Entities; the Globex 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 eff011s 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. Transfeni.ng, 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. 

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XVII. STAY OF ACTIONS 

IT IS FURTHER ORDERED that, except by leave of this Com1, during the 

pendency of the receivership ordered herein, the Globex Defendants, the Globex 

Defendants' officers, agents, employees, attorneys, and all other Persons in active concert 

or pa1ticipation with any of them, who receive actual notice of thi~ 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 ag?inst or on behalf of the GJobex Defendants, and all others 

acting for or on behalf of such Persons, are hereby enjoined from taking action that would 

interfere with the exclusive jurisdiction of this Court over the assets or Documents of the 

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; 

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, foifeit, 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. 

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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. 

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 perfonnance 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 Cou11 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. The Receiver shall not 

increase the hourly 1:ates 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 shalt file with the Clerk of this 

Court a bond in the sum of$ ID/ 0~ ,()O with stu·eties to be approved by the Court, 

conditioned that the Receiver will well and truly perform ~he duties of the office and 

abide by and perform all acts the Court directs. 28 U.S.C. § 754. 

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XX. DISTRIBUTION OF ORDER BY THE GLOBEX DEFENDANTS 

IT IS FURTHER ORDERED that the Globex Defendants shall immediately 

provide a copy of this Order to each affiliate, telemarketer, marketer, sales entity, 

successor, assign, member, officer, director, employee, agent, independent contractor, 

client, attomey, spouse, subsidiary, division, and representative of any Defendant, and 

shall, within ten (10) days from the date of entry of this Order, and 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 nwnber, and email 

addresses of each such Person who received a copy of the Order. Furthermore, 

Defendants shall not take any action that would encourage officers, agents, members, 

directors, employees, salespersons, independent contractors, attorneys, subsidiaries, 

affiJiates, successors, assigns or other Persons in active conce11 or participation with them 

· to disregard this Order or believe that they are not bound by its provisions. 

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XXI. EXPEDITED DISCOVERY 

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

Civ. P. 26(d) and (t) 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 se1vice of this Order, to 

conduct limited expedited discove1y for the purpose of discovering: (1) the nature, 

location, status, and extent of the Globex Defendants' assets; (2) the nature, location, and 

extent of the Globex Defendants' business transactions and operations; (3) Documents 

reflecting the Globex Defendants' business transactions ~nd operations; or (4) 

compliance with this Order. The limited expedited discovery set forth in this Section 

shall proceed as follows: 

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A. Plaintiffs and the Receiver may take the deposition of parties and non-parties. 

F011y-eight ( 48) hours' notice shall be sufficient notice for such depositions. The 

limitations and conditions set forth in Rules 30(a)(2)(B) and 3 l(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 courited towards the deposition limit set fo1th 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 arid the Receiver may serve upon parties requests for production of 

Docwnents or inspection that require production or inspection within five (5) days of 

service, provided, however, that three (3) days of notice shall be deemed sufficient for the 

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

format. 

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

response within five (5) days after Plaintiffs serves such inten-ogatories; 

D. The 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 facsimile, email, or by ovemight 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 Cou11. The expedited discovery permitted by this Section does 

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not require a meetirig or conference of the parties, pursuant to Rules 26(d) & (f) of the 

Federal Rules of Civil Procedure. 

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

26(a)(l) until further order of this Comt. 

XXII. 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 h·ansmission, 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 sel'ver, upon any 

Globex Defendantor any Person (including any financial institution) that may have 

posses~ion, custody or contrnl of any asset or Document of any Globex 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. 

XXIII. CORRESPONDENCE AND SERVICE ON PLAINTIFFS 

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

conespondence and service of pleadings on Plaintiff~ shall be addressed to: 

Christopher E. Brown 

J. Ronald Brooke, Jr. 

Federal Trade Commission 

600 Pennsylvania A venue, NW (CC-8528) 

Washington, DC 20580 

Fax: 202-326-3395 

Email: cbrown3@ftc.gov; jbrooke@ftc.gov 

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Erin Leahy (Ohio Bar #69509) 

Assistant Attorneys General 

Consumer Protection Section 

30 E. Broad Street, 141h Floor 

Columbus, Ohio 43215 

Email: erin.leahy@OhioAttorneyGeneral.gov 

XXIV. PRELIMINARY INJUNCTION HEARING 

IT IS FURTHER ORDERED that, pursuant to Fed. R. Civ. P. S(b), the Globex 

Defendants shall appear before this Cornt on the / {j ~ay of _l:r)~/L!.'&~~ 

2019, at I; Q O p/YJ, to show cause, if.there is any, why this Court should not enter a 

preliminary injunction, pending final ruling on the First Amended Complaint against the 

Globex Defendants, enjoining the violations of the law alleged in the First Amended 

Complaint, continuing the freeze of their assets, continuing the receivership, and 

imposing such additional relief as may be appropriate. 

A. 

XXV. BRIEFS AND AFFIDAVITS CONCERNING 

PRELIMINARY INJUNCTION 

The Globex Defendants shall file with the Cou1t 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 the order to show cause hearing scheduled 

pw-su_ant to this Order. Plaintiffs may file responsive or supplemental pleadings, 

materials, affidavits, or memoranda with the Court and serve the same on counsel for the 

Globex Defendants no later than one (I) day prior to the order to show Cause hearing. 

Provided that such affidavits, pleadings, motions, expert reports, declarations, legal 

memoranda or oppositions must be served by personal or overnight delivery, facsimile or 

email, and be received by the other party or patties no later than 5:00 p.m. PST on the 

appropriate dates set forth in this Section. 

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

necessary unless the Globex Defendants demonstrate that they have, and intend to 

introduce, evidence that raises a genuine aod mate1ial factual issue. The question of 

whether this Court should enter a preliminary injunction shall be resolved on the 

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

parties. 

C. Live testimony shall be heard only on further order of this Court. Any motion to 

pennit 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 injunction hearing in this matter. 

Such motion shall set forth the name, address, and telephone number of each proposed 

witness, a detailed swnmary or affidavit revealing the substance of each proposed 

witness's expected testimony, and an explanation of why the taking of Jive 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 to the order to 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 pa1ties no later than 5:00 p.m. MDT on the appropriate dates 

provided in this Section. 

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Case 3:19-cv-00196-KC Document 84 *SEALED* Filed 12/03/19 Page 33 of 33 

XXVI. DURATION OF THE ORDER 

IT IS FURTHER ORDERED that this Order shall expire fouiteen (14) days 

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

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

XXVII. RETENTION OF JURISDICTION 

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

matter for all purposes. 

SO ORDERED, this 

1 •.~0,tm. 

TED STAT 

33 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 1 of 15 

APPENDIX A 

' I 

I 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 2 of 15 

PART 310-T£LEMARKETING SALES 

RULE 16 CFR PART 310 

Seo. 310.l 8oope or regula.tlons In LhlH par~. 

310.2 Def1nlt1on11. 

310.3 Deuptsve telomarketlnir act., or pmcUcea. 

310.4 AbuRlve t.olemarketlng acts or p1·aotloes. 310.6 neom•dlteeping requlroment8. 

310.6 ExempUon11, 

310.7 Actions by stotea encl pi·lvate persona. 

310.8 tree for aooesa to tho National Do No~ 

Call ~glat1·y. 

310.9' Savo1'1!.bUlty. 

AU'l'IIORIT\': 15 u.a.o. 5101-6108. 

sounoE: 76 FR 48616, Aug. JO, 2010, unlose 

othert•l~e not.ed. 

§310.l Scope of regulotlons In_ this 

part. 

This part implements t.be Telemarketing and Consumer Fl'aud and 

Abuse PrevenUon Act, 16 U.S.C. 6101· 

6100, M amended. 

§ 810.2 Definitions, 

(a} Acqulrer means a business orga.nl­ zation, nne.nclal institution, or an agent of a. business 01-ganlzatlon or fl. 

na.ncla.J Institution that has authority 

from a.n organlza.tlon tha.t opea·ates or Jlcenses a oredlt card system to aut~or­ ize me1•ohants to accept, t1•ansm1t, or Pl'OOOSS payment by credit 03,l'd 

through the credit oard sysLem for 

money; goods or S81'v1ces, 0 1• anything 

else of value. 

380 

Attachment A 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 3 of 15 

Federal Trade CommlS$1on 

(b) Attomey General means the chief 

legal officer of a. state. 

(c) Billing i11formation means a.ny da.ta 

that enables any person to aooess a 

oustomer's or donor's account, suoh as e. oredtt oa1·a. checking, savings, sh&1'e or similar account, utility bl11, mort• 

gage loan a.coount, or debit ce.rd. 

(d) Caller identification $et1Jfce means a 

servioe tha.t allows a telephone subscriber to ha.ve the telephone number, and, w.bere a.vallable, name of the ca.11-

lng party transmitted oontomporaneously with tbe telephone oaJI, and 

displayed on a device In 01· connected 

to tbs subsorlber's telephone. 

(e) Cardholder means a person to 

whom a 01·edlt card Is Issued or who Is 

authorized to UBe a credit oard on b~ 

ha.IC of or In f.ddition to the person to 

whom the credit ca1·d le Jssued. 

(f) Charitable contribution means any 

donation or gift of money or any othe1· 

thlng of value. 

(g) Commfssfon means the Fede1·al 

Trade Comm!sslon. (h) Credit means the 1·lght granted by a. creditor to a debtor to defer payment 

ot debt or to Incur debt and dofe1· lte 

payment. (I) Credft ca.rd means any ca.rd, plate, 

coupon book, or other credit device ex­ letlng fol' the purpose of obta.lntng 

money, property, labor, or eervioes on credit. 

· (j) Credit caret sales dr<t/t means any 

1·eoord 01· evidence of a credlt oard 

transaction. 

00 Credit r.arcl system means any method 01· procedure used to process 

oredtt card transactions Involving orodlt oa,rds Issued or licensed by the operator of tha.t system. (I) customer means any person wbo Is or may be requfred to pa.y (or goods or services offered through tele­ ma.r k e tillg. 

(m) Debt relief service means any program or service represented, directly or by Implication, to renegotiate. settle, or In any way a.lte1· the terms of payment or otbel' terms of the debt be• 

tween a. person aud one or 'more unse­ cured creditors or debt colleotol'S, ln· 

eluding, but not limited to, a reduction 

In the bala.uce, lnte1·est 1·ate, or fees 

owed by a. person to an unsecul'ed ored• 

!tor 01· debt collector. 

§310.~ 

(n) Donor mea11e any person solicited 

to ma.ke a charitable contribution. 

(o) Establi$hed business relationship 

means a. relat!onshtp between a seller 

a.nd a consume1· based on; 

(1) the consumer's purchase, rental, or lease of the seJJer's goods 01· services or a flna.11olal t.ransa.ctton 'bet.ween the consumer and seller, within the eight­ een (18) months lmmedlateJy p1·eoedlng 

the date ofa telemarketing call; 01· 

(2) the oonsume1·1e lnqulry or appllon,. 

tton regardlug a. product or se1-vlce offered by the seller, within the three (3) 

months hnmedlately preceding the 

date of a telemarketing ca11. 

(p) Free-to-»a.11 conversion mea.ns, in an offel' or agreement to sell 01· provide 

a.ny good& or se1•v1cee, a. provision 

under whloh a. customer receives a p1·oduot or servlce for free fo1• an lnltle.l 

p&rlod and wm lllour an obligation to 

pay for the p1•oduct or service If he or she doee not take affirmative action to 

ca.nee! before tbe erid of that period. 

(q) J11ve3tment opportu11ity means any­ t.htng, tangible or intangible, tba.t Is offe1•ed, off'e1'8d for sale, sold, or traded 

based wholly or in part on represent.a• tlons, either exp1·ees or Implied, a.bout 

past, present, or future Income. profit, or appreciation. 

(r) Material means likely to affeot a, 

person's choice or, or conduct rega.1·dlng, goods or services or a charitable 

contribution. 

(8) Merchant means a pe1·aon who Is 

authol'lzed under' a written contra.oL 

with a.n a.cqulrer to honor 01· accept 

oredtt ca.rds, or to transmit 01· process 

!or payment credit card payments, for 

the purchase of goods Ol' servioee Ol' a 

cha.rl table contribution. 

(t) Merchant agreeme11t means a writ.­

ten contract between a merohant and a.n acquirer to honor or accept credit 

cards, or to tl'a.nsmlt or proceSB for 

payment credit oai•d pa,yment.<i, for the 

purnhase of goods 01· services or a oha1·­

itable ooutrlbutlon. (u) Negative option feahire means, In an offer or agreement to sell or p1·ovlde 

any goods or service&, a provision 

unde1· wlucb the ousto.mer's s1lence or fa.ilul'e to ta.ke an aff:lrma.ttve action to 

reject goods or se1•vloes 01• to cancel the 

agreement Is Interpreted by the seller as aocepLa.nce of lihe offer. 

381 

Attachment A 

. I 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 4 of 15 

§310.3 

(v) Outbo1md telepflo11e call means 11 

telephone call Initiated by a tele• 

ma.rketer to Induce the Plll'0h11ee of 

goods or sel'vloes or to solicit a ollarl• 

tR.ble contribution. 

(w) Perso1~ means any l.ndivldual, gt'oup, unincorporated o.ssoot11tlon, Jim• 

lted or geno1•11,J pal'tne1•11blp, corporatlo11, or other busb,eas entity. 

(x) Preocoufred account fnfonnatfo1i 

moane any Information that ena.hlee a 

seller or telemarketer to oau.se a oharire to be placed against a. oust.omor•e or donor's n.ocount without ob• 

ta!nlng I.he account number dfrootly 

Crom t.he cust.omer or donor dw•lng the 

telemarketing transa.otlon purs1111,nt t.o 

which the account wm be charged. 

(y) Prize means anything offered, or plll'portedly offered, 11,nd given, or purpo1·tedly given, to a. person by ohanoe. 

For purposes of this dellni tion, chance 

exlste If a porson J's guaranteed to re• 

oelve o.n Item 11.nd, a,t the time of tllo 

offer or purported offer, the tale• 

ma.1·keter does not, Identify the speolno 

item that the person will receive. 

(z) Prize promotion moons: 

(I) A eweepsta.kee 01· other game or chance; or 

(2) An oral 01· written exp!'ees or Im• 

plied rop1·esenta.tlon t..hat a. vorson bas 

won, hna been seleCUld to receive, 0 1· 

may be ellgll>le to receive a pl'ize or pu1•ported prize. 

(aa.) Seller means any person who, In 

connect.Ion wll,h a telema.rket.lng trans• 

action, p1·0Yldo1:1, offsrs to provide, or 

an·anges 'Io•· othe1·e to p1·ovlde goods or 

sel'\•lces to the customer 111 exchange 

for conslde1•aL1on. (bb) State mea.ns 11,ny sta.te of tile 

United Sta.Los, t..he District or Colum­ bia, Puorto Rloo, the No1·thol'll Marlana 

IsJa.nda, a.nd any t.errlto1·y or poSResston 

of the United St.a.Les. 

(co) TcJemarketer moans any person 

wbo, In conneotlon with telemarketln1:, 

lnit!a.tes or reoeJves telephone cans to 

or from a. customer or dono1•. 

(dcl) 'l'elemarlcellng met~us t\ PIM, p1•0-

gram, or campaign whlob ts conducted 

w Induce the purol1aso of goods 01• se1·v• 

lees 01· a oharltabl o contribution, hy 

use of one 01· mo1·e telephones and 

wJ1loh Involves mol'e than one Int er• state telephone ca.II. Tho term does not 

lneludo t.he solicitation or sa.lea 

through Lbe ma.lllng or a catalo" 

16 CFR Ch. I (1-1-14 Edlllon) 

wbloh: conte.lns a. written descl'lptlon 

or illustra.tlon of the goode or services 

offered for sale; Includes the business 

a.ddJ•eee of the 11ellnr; lnoludee multiple 

pages of written ma.terlal 01• tllueu·atlone; and has been Issued noL less fre• 

quently t han once a yoar, when the 

peroon making tho oolloltMlon doos 

not sollcit cus~o1ne1·a by telephone IJut 

only l'ecelves calls Initiated by ous-. tomers in reBPonse to tho ca.ta.Jog and 

du1·lng those oa.lle ta.kes 01•ders only 

without further sollolta.tlon . For pu1·­ poses of the pnvloWI sentenco, tho 

te1•m "further solloltatlon" docs not 

Include providing tho customer with 

information &bout, or a,ttemptlng to 

sell, any other Item Included in the 

se.me ca.taler whlob prompted the cus­ tomer's ca.II or In a. subs tan tla.Jly similar catalog. 

(ee) Upsellf11g mea.ne sollclUng t.he 

pu1·obase of goods or services following an Initial t1·a11anotJon during a. sh1gle 

tolephone oall. The upsell is a separate 

telema-rketlug tran11actlon, not e. oon­ tlnuatlon of the Initial tra.neaotlon. An 

"oxtol'llal upsell" le a. solicitation 

made by or on L>ehalr of a. eeller dlf• 

re1·ent from the seller In the Initial 

tra,neactJon, rerardlees of whether the 

lnlli1al tra.nsa.otlon a.n<J tJ}e subsequent 

sollolta.tlon nre made by the ea.me teloma.rketer. An "Internal upsell" 111 a 110-

llcltatlon made by or on beb11U or the same seller as In the lnitia.J transaction, ~gardless or whether the lnl• 

Ll~I trens11.otlon a.nd subsequent solicitation a.re made lly the same tele• 

m11.1•hoter. 

§310,S Deoepdve telemarketing act• o•· practice,. 

(a) ho11fblted deceptive telemarket/1111 

acts or prucUces. It ts a deoepUve tolemarketing aot or pra.ot lce and a. violation of this Rule for any seller 01· telo­ marketer to engage In tho following conduct: 

(1) Before a. customer consents to 

pa.y66o for geode or services offered, 

, .. When a caller or tetemarkettr usee, or dlr.ect.a II customer t-0 UH, a cou1•ler to trans­ port pnymenL, the sellor or tolemarkoter 

must mohc the dlooJoeurea 1•equlred lly 

§310.a(a)(l) befo1·e Mndh1g t. courtor to 1>lok 

up payment or auihorlut ton ro1· 1mymont. 01· 

dlrecUng a ou&Lomor t.o ha.ve e. courier plok 

up pAyment or auU\01·lt11Uon fol" payment. ln 

382 

Anachmenl A 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 5 of 15 

Federal Trade Commission 

falling to disclose truthfully, ln n, cleni· a.nd oonap1ououe manne1·, tbe fonowJng 

ma.terlal lnform11.tlon: 

0) The tota.J costs to purcha.es, re­ ceive, or use, and the quantit y of, any 

goods 01· services tl1e.t a.re the subjeot 

of the ealea offer; e60 

(II) All mat.erlal reetrlct1ons, llmlta· 

ttons, or conditions to pm•chase, re• celve, or use the goods or services tha.t a.re the eubJeot of the sales otfer; 

(iii) lf the seller lle.s a polloy of not 

maktug refunds, oa.ncellatlons, ex­ cba.nges, or repurchases, a. statement 

Informing tho oUBtomer that thls le tho 

seller's polloy; or, If the seller or tele• 

marketer makes a representaMon 

a.bout a refund, cancella.tion, exoba.nge, or repuroba.se J)Olicy, a statement or all 

material terms and conditions of such 

policy; 

(1v} In any prize promotion, the odds 

of balnir able to 1·eoelve the prize, and, 

If the odds a.re not ca.lculable In a.d• 

va.nce, tho faoto1•s 11sed In caloula.tlng 

t,he odds: that no pu1·cba.se or payment 

ts required to win a prize or to partlcl• 

pat,e ln a. prize p1·omotlon and lJiat, All)' 

puroh1.1.ae 01· p a.yment will not !no.rease 

t he pe1•son's chauoes of winning; and 

tl1e no-purchase/no-payment method of 

partlolpa.ttug In tho Pt'i:68 promotlo11 

with elthe1· instructions on how to par• 

tlclpate or a.n address or Joc&I or toll­ fl•ee telephone number to which cus­ tomel'B may write or oa.11 for lnfol'ma.­ tlon on how to pal'tlcipa.te; 

(v) All ma.te1•1al ooeta or conditions 

to recelve 01· redeem a p1·lze th1it ls the 

subjeot of the prize promotion: 

(vi) lu the 88,)e o( a.ny goods or serv• toes rep1·esented to protect, lnsuro, or otherwise limit a. oustomer's liability 

In the event of una.uthorlzed u15e of the 

customer's credit card, the limlts on a oardholder'e lle.blllty for unauthorized use of a. credit ca1'd pursuant &o 16 

U:S.C. 1643; 

tho case or debt relier eei·vlcee, the eelle1· or l.elema1·Jtete1· must nuke the dlsclosuree r-t•­

qulre<l by 6310.3(a)<I) betoro tho oonaumer en• rolls In an olCere<l prog1•a.m. "o For offe1-e of consumer credit products subjec~ to t,lte Truth In LemUng Act, 16 

U.8.0. 1601 e£ seq., and Regulatloll Z, 12 CFR 

226, compUanoe wlt.b tlte dlaoloaure req\\lro­ ments undor the TruU1 In Lending Act and 

Regula.tlon Z ella.11 conatltute compliance 

with §310.3(1\Xl)(f) of Ulle Rule. 

§310.3 

(vll) If the offer includes a. negative 

option feature, all material terms a.nd 

conditions of the negative option feature, Including, but not limited to, the 

fa.ct that. the customer's acco\lllt wlll • be oha.rged unless t.be cu11tomer takes a.n afftrma.ttve action to avoid the 

cba.rge(s), the da.te(s) tho cha."rge(e) will 

be submitted for payment, and tbe speo!flo st,eps the customer must ta.ke to 

a.void the charge(s); e.nd 

(viii) In the sale of any debt relief 

service: 

(A) the a.mount, of time necessary to 

a.chieve the represented 1·esults, a,nd to 

the extent that the service may inol11de a. settlement offe1• to any or the cue­ tome1•'s ored1tor11 or debt colleotore, 

the time by which the debt relief serv­ ice provider will ma,ke a. bona. fide settlement offer to ea,ch of them; 

(B) to the extent that tt:ie eervloe 

may include a. settlement offer to any 

of t he customer's oredltore or debt collectors, the a.mount of money or the 

percentage of each outet1;1,ucling debt; 

that the ouetomer must accumuJn.te before the debt 1·eUef service provider 

will malte a bona fide settlement offe1• 

to ee.ch of them; 

(0) to the extent that any aspect of 

the debt relief service rel1es upon or ro­ sults in the oustomer's fa1lure to make 

timely paymente to creditors Ol' debt 

oolleotors, that the use of the debt re­ lief se1•vice will likely advenely affect 

the ·customer's oredltworthtness, may 

result ln the customer being subject t;o 

collections or sued by oredltot·s 01· debt 

oollectore, and ma.y lnc1·ea.t1e the 

a.mount of money the 011stomer owes due to the aoo1'Ua.l of fees a.Dd lnte1·est; 

and 

(D) ~o t.11e extent that. the d~bt relief 

service requests or requires the cus­ tome1• to pla.oe funds In an account at an losurecl fln&.ncla.l tnetttution, that 

tbe customer owns ~be funds held In 

the account, tbe customer may wlthdr&.w from the debt relle! service a.t any 

time without penalty, and, If the ous­ tomer wlthdl·a.we, the oustomer muat 

receive all funds In the a.ccount, other 

tha.l\ funds ea.rned by the · debt relief 

service In compliance wlth 

§810.4(a.)(f>)(l)(A) through (C). 

(2) Misrepresenting, directly or by 

itnplica.tton, In the sale of goods or 

383 

Attachment A 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 6 of 15 

§310.3 

services any of tlle following material 

information: 

(I) The total costs to p111·cba.ee, re­ ceive, or use, and the quantity or, any 

good& 01· services that are the subject. 

of a sales orre1•; 

(II) Any material 1·estrlctlon, l!mltatlon, 01• condition to purchase, recelve. 

oi' use goods 01· aei:vlooa thai ·aro ~ho 

subject of a ea.lea offer; 

(Iii) Any mat.erJal aspeot or t.lle perrormance, effl.oacy, nature, or central 

charnotel'isl.ios or goods or services 

tha.t a.!'e the subject of a sales offer; 

(iv) Any ma.terla.l a.spec~ of U1e na.­ tu1·e or terlllll of the selle1·•s refund, 

cancella.tJon, exchange, or repurchase 

pollcles: 

(v) An-:,, ma,te1•i11I ai:peot of 11, prize 

))remotion l:noludl11g, but. not limited 

Lo, t.lle odds of beinc- able to receive a prize, t.be .nature or l'alue of n Pl'lze, 01· 

t;lrn,t a purchase or pa.yrneut. Is required 

to win a p1·ize or to partlcipa.t.e !11 a prlzo promot:J.on: · (vi) Any materla.l aspeot of an investment opport1U11ty lnclndlng, but not 

llmit.ed to, rlek, liquidity, ea1•ntngs poten·t.llll, or profitn,bllity; 

(vii) A seUer'll or telemarket.e1·'e affiliation with, 01· endorsement 01• spo11-

so1-slllp by, a.ny person or government. 

entH;y; 

(viii) '!'hat 11,ny customer needs offered goodt; oi· .:im·vlces to provide protections a, ouatomer al1·eady has pu1•suant to 15 U.S.C. 16'13; 

(Ix) Any material uspact. or n negar 

tt-ve option feature including, but not. 

limited to. t•he fact that the oastomel''s 

account will be charged unless the cus­ tomer takes a.n a!firmat;lve action to 

a.void the chal'ge(e), the date(s) the 

oharge(a) will be submitted for payment, aud the speotflc steps tbe cus­ Lomer must Lake to avoid the 

O)lfl•l'ge(s); Ol' 

<x) Any mator!a.l ruipect of a.uy debt 

relief servloe, Including, but not 11mlted to, the amount of money or the 

percentage of tho debt amount. that a cuscomei· may save by using such serv­ ice; the a.mount of time necesea.ry to 

aohieve \,he 1•epresont.ed 1·esu1t;s; · the 

a.mount of money or the percentage of 

each outetandtng debt. tba.t the cue• tomer must acoumula.te be!o1·e tho pi·ovlder of the debt l'elief service will Ini­ tiate attempts with the custome1·'s 

16 CFR Ch. l (1-1-14 Edition) 

creditOl's or debt collectors or ma.ke a bona fide offer to negotiate, settle, or modJfs, t11e. terms or the customer•·s debt; the eifeot oft.ho servioe on a. cus­ ~omer's creultwortblnells; the. effect. of 

Lhe se1·vlco on collection effort.a of the 

cu11tomer'e crodltol'B or debt collecton1; 

the percenta.ge or number of customers 

who attain the represented 1·esults; nnd 

whether a debt relief service is offe1•ed 

or provided by a non-profit entity. 

(3) Causing bllltng tnforma.t;Jon to be 

submitted fol' payment, or collectJng or attempting to collect payment !01· 

g-oods or set'Vl c es 01· a ohnr!La.ble uonta·lputlon,. i:lll'eotly 01• lndlreotly, with• 

out the customer's or donor's express 

verifiable a.uthori11"t.lon, except when 

t.be method of payment used le a. credit 

card subject to prot,ectlons of the 

'1'1•uth Iii Lending Aot a.11d Re8'lllatfon 

z,m or a debit ca1·d subject to the Pl'O· 

tectlons of the Elect.i·onlc F'und T1-ansfer Act a.itd Regula,tlon E.002 Such au• l,hol'lzatlon shn,11 be deemed verifiable 

If a,ny or the following me1me le employed: 

(l) Express written a.uthor1ze.Uon by 

t.he customer 01· donor. wllloh Includes 

the customer's or donor's elgnature:roi 

(11) Exprnss oral authoriz11,t1on which 

ls audlo-recordeO and made avullable 

upon 1•equest to tho customer 01• dono1·. 

and the customer's or donor's b11nk or othc1· billing entity, and which evidences clearly both the c11stomer's or donor's authorization of payment for 

the goods or se1·vioes ·or charitable oon­ t.rlbu Lion that are Lho 0.\1.))jeot of I.he 

telemal'ketlrig tranHctlcn and the oue­ tomer.'s or llonor'e receipt of all of the 

following lnfo1•matlon: 

(A) Tbe number of debits, cha.rgee, or 

payments (If more bha.n one); 

(B} 'rlle clate(s) tl1e debJt(s), 

che.rgc(.:i), 01· 1ia.ymen t(s) wlll IJB sub• 

mltted !01• payment: 

"'' Tru~ In Lendlng AoL, 16 0.S.C. i601 ef. 

seq,, an<I no1n1iaL1on z, 12 CF'R put 226. "2 Electl'Onlo Fund Transf111· AcL, 16 U.8.C. 

1003 et seq .. and Reirulatlon lil, 12 OF'R parL 

206. 

ooi For pw·po,sea of this Rule, the Lnrm 

"fllgnatm•e" shall Include IUl eleotronlc 01· 

digital Conn of elgnaLUJ•c. to tbe ex-tent that 

such rorm of sl.rnatm·e la recognlza() as a valid elgnl\tui·e under apr,llceble redet'Al l11w 

01· eta Le contract law. · 

384 

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Fedetal Trade Commission 

(C) The amount(s) o! the debit(s), cha.rge(s), 01· pa.yment(e); 

(D) The customer's or tlonor's name; 

(E) The custome1·'s or donor's bllllng 

lnforma.tlon, lde11tlfled with sufficient 

speclf:lc!ty suoh that the customer or donor understands what a.cootu1t will 

be used to collect payment for the 

goods or se1·vlces or charitable con­ tribution that a.re the subject- of the 

tslema.rketlng trans11Ction; 

(Ji') A telephone number for oustomer 

01· donor Inquiry tba.t is answered du1·­ lng normal business houi•s; a.nd 

(0) The date of the oustome1·'s 01· do• 

nor'a ore.I authorization; or (Iii) Wl'itten confirmation or the 

transaction, Identified 1n a clear a.nd conspicuous manner as such on the 

outside or the envelope, eent to the customer or donor via first class ma.u p1•lor to the. submission for payment or 

the customer's or donor's billing ln!ol'­

matlon, and that inoludea n.11 of the in• 

fo1·mat.ion contained In 

§§310.3(a)(8)(1i)(A)·(G) and a olear and 

conspicuous st.a.tement of t,he procedures by which the customer 01· donor oan obtain a. refund rrom tha seller or telemarketer or oha.rltable organization In the event the confirmation Is 

Inaccurate; provided, however, tba.t 

this mea.na of authorization sha.Jl not 

be deemed verlfla,ble In instances in 

whloh goods or aervloea u·o offered in a. transa.otlon involving a fl'ee-to-pay 

conver11lon and pl'eaoqulred accow1t In­ formation. 

(4) Making a false 01· misleading 

statement to Induce any J,)el'aon t,o pay 

for goods or services Ol' to· Induce a. chal'ita.ble contribution. 

(b) Assisting anct facilitating. Jt is a. de­ ceptive telemarketing act 01· practice a.ud a violation of this Rule for a per­ son Lo provide snbat.antial assistance or support to any seller or telema1:keter 

when that person knows 01· oonsolouely 

avoids knowllig that the seller or telemarketer ls enga.ged In any act or prac­ tice that vlola.tes §§810.S(a), (o) 01· (d), 

or §910.4 of this Rule. 

(o) Ct·edit card laundering. Except as 

expressly permitted by tbs applicable 

oredlt card sy11tem, It le a deceptive 

telemarketing a.ct or practice a.nd a violation of this Rule for: 

(1) A meroha.nt to present. to Ol' de• 

posit into, or cause another t,o present 

§310.3 

to or depo8lt into, the oredtt cal'(I SYS· 

tem for payment, a oredlt card ea.lee 

draft generated by a telema.rketlng 

t1·ansaotion tbo.t is not the result or a 

telemu·ketlng Cl'edlt card tra.nsaoUon 

between the oa1·dbolder and ·the merchant; 

(2) Any pe1·son to employ, solicit, or 

otherwise oause a met'obe.nt, or an em• ployee, representative, or agent of the 

merchant., to present to or dsposJt. Into 

Lhe credit card system for payment, a. credit card sales draft generated by a 

telemarketing t1·ausaotion that ls not 

the 1•esult of a telema.rlcetlng credit 

ca.rd t1·ansaot1on between the ca.1·d· 

holde1· and the me1•cba.nt; or 

(3) Any person to obta.ln a.ooeB11 to tbs 

credit ca.rd system through the use of a 

business 1·elatloneh!p or an affiliation 

with a merchant, when such access ls 

not authorized by the merchant 11g1•ee· 

ment or the applicable credit oard eystam. 

(d) Prohibited deceptive acts or practices ht the solfcttaU011 of charitable contributions. It la a. fl"lludulent cha.1·lta.ble 

i;ollolta.tlon, a deoeptlve telema-l'ketlng 

act or 11raotlce, and a vlola.t.lon of this 

Rule for any telema.rketer solloitlug 

charitable conti·lbutlons to mlsrepre• 

sent, dlreotly or by Implication, any of 

~he following material Information: (1) The nature, purpose. 01· mission of 

any e11tlty on beha.lf of whloh a. cha-rltable contribution Is being 1-equeet.ed; 

(2) That a,ny oba.rlta.ble contribution 

is ta.x deductible In whole or In \)ll,1·t: 

(3) The purpose for which any c.ha.rltable oont.rlbution wm be used; 

(4) Tbe pe1'oe11t11ge 01· a.mount of 11ny 

cha1•1table contrlbutlou that wm go to a charitable organization or to a.ny 

pal'tloular cha1•lta.ble pr<>gram; 

(6) Any material 1U1peot of a prlzo 

promotion lnoludtng, but not limited 

to: the odds of being able to receive a 

prize; the nature <>r ve.lue of a. prize; or that a, charitable contribution Is required to win a prize 01· to pa-rtloipa.te 

In a. Pl'lze promotion; 01· 

(6) A oharlta.ble 01•ga.nlzatton's 01· 

telema,l'keter's affll!a.tton with. or en­ dorsement or sponaorehlp by, any person or government entity, 

385 

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§310,4 

~310,4 Abusive telemorkoting note or practices, 

(n.) Ab1tsfve co11 d.uct generally. 11, Is an 

abusive Lo)emrwlrot.tng a.ot or l>l'aotloe 

a.nd a violaUon of this Rule for any 

seller 01· telema.rket.el' to engage In Ute 

following conduot: 

(l ) 'l'hroats. 1ntimlda.Uon, or the uee 

of profane 01· obscene language: 

(2) Re\jueot.tng o r rooolvlng paymout 

of any foe or conaidera.tlon for goods 01• 

am•vlces a·epreseut.ed to remove derogatory lnformatlon from, or lmprovo, a person'li oredlt hleto1·y, credit a•ocord, 

01· credit, raLb1g until: 

(I) l'he time frame 111 wbloh the eoller 

has 1·ep1·ostmLod a ll of the goods 01• 

services will bo )ll'OYlded to tlll\l. POl'SOn 

hM c"plred: and 

(II) 'l'he uelloi· ht1.11 Pl'ovlded the person 

with documentation In the form of a aousomer report n·om a co11sume,· repo1·t.lng ngo11oy demonstr aLlntr that t he 

promised l'esults have been acblevod, such repo1•t, bnvlng been Issued more tha.n six months after the re6Ults wet·e 

aobleved. Nothing 1u t.hls Rule should 

be constt·ued t.o affeot the requirement 

In the Fair Cl'edlt Reporting- Act, l!J 

U.S.C. 1681, I.hat a. consumer t·eport 

may only be obt.&lned for a speel!led 

pormJssll>l.o pu1·poso: 

(3) Requostlng 01· t•ocei vlnll' paymunt 

of nny tee or conslderat.iou n-om a pers011 for goods or services ropi•esen Lea to 

l'CCOVCl' 01' 01.bOJ'WISB assist In the return of money or any other Item of 

value paid for by, or m·ornl11ed to, Umt 

}JRrnon l.u a l)l'OVIOIIB tel OmQl'koLI ng 

Lr1111sactlon, until soven (7) buslnuss 

doys afl,or 1.uch money or oLher ltom is 

CleHvcrecJ t.o WtM person. Thia p1·ovlelon 

aha.II not a.pply to itoode or services 

))rovlded to a ~rson bl• a l1eense<1 o.tton 10y; 

('1) Requesting or rocelvh11 J>a,yment 

of 11n~, foo or oot,sidorJ1.tion In e.dva11ce 

of ol>talnlJl!f a Joan or ott1er extension of credit when the seller or tele• 

ma,1•kete1· has guaranteed or 1•ep• 

rosented II high likelihood of BUCC888 In 

obta.inln~ or ananglng a Joan 01· otlior 

exte11slon of oredl t for a pe1•aon; 

(5)(1) RoquoeUng or receiving pa.yment of any fee or oonsldel'atlon for 

any debt, relief service w1tll and unless: 

(A) 'l'he seller or tel om1ll'lceter hns re­ negot.lnticd, set.Wea, reduced, or o~lrnr­ wlse a ltere11 the terms of at lee.et one 

16 CFR Ch. I (l-l-J.4 Edition) 

debt, pursunnt. to 11, settlement agreemeut., del>L mana(lomen~ J)ia.11, or 0U1e1· 

sucl1 valid contractual a1n10ement, exe­ cuted by tl\o customer; 

(B) The ouotomer bas made n,L l en111, 

one 1>11,ymont pw·auo.nt Lo that settlement ag-reement., deb~ management 

pla.11, or other valid contl'actua.J agreement botwoen t.he ouetomo1· and Lho 

01·edltor or debt collector: and 

(C) To the ext ent, tho.L debts enr olled 

1n a servioe are 1'11llegoLla1,ed, settled, 

l'ed11 ced, 01· otherwise alLered lndlvld· 

ually, the fee or oonetderMiou either: 

(J) Bears t.h o same propo1·t.lont\l 1·eln1.10nshlp ~o tho tote.I fee for renegotiating, settling, reducing, or n,Jtel'lng 

I.ho tel'lnB of Lbe ontlre 08l>t balance as t.he Individual debt amoont bears to 

the entire debt amount. The lncllv1duo.l 

debt amou.nt and tlio entire debt 

amount are those owed 11t the t.lme the 

deb\, was enrolled In the sorvfoe; or 

(Z) ls a peroen t.age of !Jle amount 

saved a.s a, result of the renerotllltlon, 

settlement, reduction, or a.lteratlon. 

Tbe J.)8roent.nge oho.1•ged c&l!not ohauge 

fl"om one tndlvJ(lua,J (lebt. to another. 

The a.mount saved Is t he d1!!erence bot,waon I.he amount owed a.t t ho time tlle 

debt. was onrolled In the service and the 

amopnt aotuaJJy pa.Id to so.tlafy the 

debt. 

(II) NoLhlng ln §310."4(1.)(ll)(i) J)l'Ollibl ts 

rnque11tlllC' 01· rcqull'lng I.ho customer 

to 1>laoe funds In 11,11 account to be useO 

for I.he debt, relief Pl'OVlde1·'s fees 1111d 

for payments to credlt.01•3 or dobt oolJecto'1·t1 In oonneotlon wl 1,h tho 1·onogo­ Uatlon, se ttlement, reduct.ton, or other 

alteration of the terms of payment or other terms of a debt, provided that: 

(A) The funds ru-e held In an account 

at an Insured rtnnnolal lnst.lt,utlon; 

(B) Tho 01:astomel' owns l,he r-unds held 

In tho a.ccouni; aud ls pa.id accrued lntel'eet on the account., If any; 

(C) The entity admlni~Lol'ing the account Is not owned 01· con trolled by, or 

In any way amUated with, the debt re­ lief se1°vloo; 

(D) Tho entity ncJminletorlng the accoont. does not give or accept. any mon oy 01• otller compw1uo.Llon 1u exohang-e fo1• referrals of business Involving t.he debt, relief service; and 

(E) '1'110 cueLomer may wlt.hclrnw from 

Lhe clcl)t; 1·01tof ee!'vlce 11,t, an:,, timo 

wlt.houL penalty, and must r eceive all 

386 

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Federal Trade Commission 

funds 1n the aocount, other than funds 

earned by the debt relief service In 

complia.uoe wl th § 310.4(a)(6)(1){.A) 

thl'Olllrh (C), within seven (7) business 

(la.ys of the customer's request. 

(6) Disclosing or receiving, for oon­ t!lderatiou, unencrypted consumer aooount numbers fo1· use In telemal'ketlng; provided, however, that 

this parag1·apll shall not apply to the 

dlsolosu1·e or receipt of a ouetomer's or donot•'s b1lling Information to process a 

payment for goods 01· ae1•vioes or a, 

charitable contribution pursuant to a 

transaot1on; 

('I) Causing b1lllng info1·mation to be 

submitted fol' payment, dh'eotly or Indirectly, without the express lnfo1med 

consent of ~he custome1· or donor. In 

any telemarketing tr&nBa-Otlou, the 

seller or telemarketer must obtain the 

express Informed consent of the oaa­ tomer or donor to be oho.rged for the 

goods 01· services or charitable con• c1·1butlon and to be charged ueiug the 

Identified account. In a.ny telema.rketlng tranea.ctlon involving 

p1•eo.cqulred account Information, the 

requh·ements In paragro.pbe (o.)(7)(1) 

thl'ougb (U) of tble section must be met 

to evidence· express !nfonnecJ consent. 

(l) In auy t elemarketing traneaotfon 

involving preo.cqulred a.ccount lnforma­ &ion and a, fl'ee-to-pay conversion fest,ure, the seller or telemarketer must: (A) Obtain from tho oustomel', at a minimum, the last foul' (4) dtglts of tbe 

account numbe1• to be charged: 

(B) Oht,aln from the oustomer his ot• 

he1· exoress agreement to be charged for the goods or se1·v1oes and to be 

ohal'ged using the account number pursuant to paragraph (o.)(7)(1XA) of this 

section: and, (C) Make a.nd mo.lntaln 11n audio re­ co1·dlng of the entlt·e telemarlsetlng 

transaction. (H} In any other telemarketing transaction Involving preacqulred account 

lnfo1·matlon not desol'lbed in po.ragl'aph 

(a)(7)(J) of this section, the seller oi· 

telemarketer must: (A) At a minimum, Identify the ac­ count to be chal'ged wlth euffio\ent 

specificity for the customer or donor to 

understand what account wm be 

clla1•ged; and 

(B) Obtain from the oustome1· or donol' hie 01· het· express agreement to 

§310.4 

be charged for t,he goods 01· services 

a.nd to be charged using the account. 

numbe1· ldentlftecl pursuant to p11,ra­ graph (a)(7)(1l)(A) of this eectlon: or 

(8) Falling to transmit or cause to be 

transmitted the telephone number, 

and, when made avall&ble by the telemarltet-er's ca,rrler, tlle name of the 

telemarketer, to a.ny ca.lier ide11tlflc1v 

tlon servloe in use by a recipient of a. telemarketing call; provtdea that It 

shall not be a violation to eubat!tute 

(for the name and phone number used 

in, or billed f01•, making tho call) the name of the seller or cba.rltable organization on behalf of which a tele• ma.rketlng call Is placed, and the sell­ er's or oharl table or!fa.nlzatlon'e cus­ tomer or donor service telephone num­ ber, wbloh 1s anewe1•ed du.ring regular 

business bo\ll's. 

(b) Pattern of calls. (1) It te a.n o.buslve 

telemarketing act or practice a.nd a violation of tWs Rule for a telemarketer to engage In, or for a seller 

to cause e. telemarketel' to eng-nge ln, 

the following conduct: 

(i) Causing any telephone to ring, 01• 

engagtng any person In teJepl>one con­ ve1·satlon, repeatedly or continuously 

wlth Intent to aDJ1oy, abuse, or har~s 

any pel'son at the co.lied number: 

(11) Denying or lnter!erlng In any 

way, directly or Indirectly, with a pe1·­

son's 1•ight to bo pl11,Ced on any registry 

of names and/or telephone numbers of 

1>ersons who do not wleh to reoelve outbound telephone calls established to 

comply wlth §310.4(b)(l)(t11}; 

(111) · Initiating any outbound telephone call to a person when: 

{A) That person previously has stated 

tbe.t ho or she does not wish to receive an outbound telephone call made by or on behalf of the sells>· whoso goods or 1;e1·vloes are being offered or ma.de on behalf of the oha.rltable organization 

for whloh a charitable contribution ls 

being sol1o1ted; or (B) That parson'& telephone mnnber 

ls on the "do-not-call" registry, ,na.tn­ talned by the Commission, of persons who do not wish to receive outbound 

telephone calls to Induce the purcha.se 

of goods or services unless the seller: 

(1 ) Has obtained the exp1-ess agi·eement, in Wl'lt1ng, of such person ~o place calls to that person. Such written 

ag,•eemeut sha.ll olearly evidence such 

387 

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§310.4 

person's authorization that ca.lie made 

by or on behalf of a speolf1o party may 

be placed to tha.t veraon, and shall lnolude the· telephone number to which 

the ca.Ile may be placed a.nd the signature6G4 of that person: 01· 

(ti) Has an established business relationship with such person, and that, 

person has not et,ated Lhat. he or she 

does not wish to receive outbound t.elepbone calls under paragraph 

(b)(l)(lU)(A) of this eeot1O11: or (iv) Abandoning- a.uy outbound telepbo.ne call. An out.bound telephone call 

ls "abandoned" under this section if a person answers It and tbe telemarketer 

does not connect the call to a. sales rep. 

reeentatlve within two (2) seconds o! 

the person's completed greeting-. 

(v) lnltla-ting any outbound telephone 

call that delivers a prerecorded mes­ sage, otlier than a prel'eool'ded message 

permlt.t,ed for complla.nce with the call 

abandonment. safe hat'bor In 

§310.4(b)(4)(111), unless: 

(A) In any such call to Induce t11e 

purohaee of any good or service, the 

selle1· has obtained f)•om the recipient 

of the ca.II a.n exp!'ess agreernen~. In 

writbig, that: 

(J) The eellor obtained only afte1· a, 

olear and conspicuous disclosure tba.t 

the purpose of the agreement ls to au­ thol'ize the seller to place p1·erecorded 

calls to such person: 

(II) The seller obtained without re­ quiring, dlroct.ly or lndlrectly, tha,t the 

agreement be executed ae a condition 

of purchasing any good 01· service; 

(lll) Jllvldences the willingness of the 

roolplont of the oall to receive ca.lls 

t.hn.t dellvef p1•ereco1·ded messages by 01• on behalf of a specific seller: a.nd 

(Iv) Includes such person's telephone 

number and slgnature;6Gs and 

(B) In nny such call t.o Induce the 

purohnse of any good or so1·\•loe, or to 

604 Fo1· purposes o! this Rule, ~he term 

"slBnature" shall Include an clcou·onlc 01• 

dlglt,Rl fOl'l'l'l or lllgnatUl'D, to I.be ex Lent thAt 

such Corm of elen,tuf" Is rocognlzod as n vnlid slgne.turo under applicable tede1'al law 

01· state contract law. ' "' Fo1· purposes of this Rule, Llle ~1·m 

"elgnatu1'11" sliall Include 11n electronlc or dlglta.l fOl'lll of slgnatw-e, to ~he extent tl1Rt 

such form ol elll'natm·e le recognlred llS e valid Jlgnat,111·0 undel' 11pplloablo federal law 

01· stal,o contl'act law. 

16 CFR Ch. I (1-1-14 Edition) 

Induce a oha.1•itable oontrlbutlon fl'om a member of, or previous donOJ' to, a. Mn• 

profit charlta.ble organlzMlon on whose 

behalf tbe call Is made, the seller or 

telemal'keter: 

(I) Allows the telephone to 1·tng for at 

least fifteen (}6) seoonda 01· !our (~) 

rings before disconnecting an unan­ swered oo.Jl; and 

(11) Wltbl11 two (2) seconds after the 

completed greeUng of the J>&1'son 

called, plays a. prerecorded message 

that promptly provides the disclosures 

required bY § 310.4(d) or (e), followed 

Immediately by a dlsolosw·e of one or 

botll of tho followlng: 

(A) In the case of a. call that could be 

a-nswered 1n ))01·son by a. oonsumei-, that 

the person called can use an a.u Lomated 

interactive vo!oe o.nd/or keypress-11,ctlva.ted opt-out mechanism to assert a. Do Not Ca.II 1·cquest pursuant to 

§310.4(b)())(tll)(A) M any time (\Ul'lng 

the message. The mechanism must: 

(1). Automatically ad<l tbe numlle1· 

ca.lied to tile sellel''s entlt~•-speciflc Do 

Not Oa.11 list; 

(2) Once invoked, Immediately disconnect the call: and 

(3) Be avnlla.ble fol' use at MY time 

during tho messnge: and 

(B) In the ca.ee or a call that. could be 

auswe1'8d by an a.nswerlng machine or 

volcema.11 service. that the person 

called ca.n use a, toll-free telephone 

numbe1• t.o assert 11, Do Not. Call 1'f1quest 

pursuant to §810.4(b)(l)(1ii)(A), The 

number provided must connect d1J'eotly 

to an a.utoma.tad Interactive voice or keypi-ess-aot1vated opt-out; meoha.nlsm 

tliat: 

(l) Automatlcally a.d<ls the number 

ca.lled to tho so1le1•'s e11tlty-speolf1c Do 

Not can list; 

(2) Immediately thereafter dlsconnocts the call: a.ud 

(3) Is accessible a.t any time thl'ougbout tbe d111'a.tlou of tho tolomarkotlng 

campaign: a.ud 

(Iii) Complies with all other 1·oqult•omonts of this pa.rt and otbe1· applicable 

!odera.l a.nd state la.we. 

(C) Any ca.H that complies with a.JI 

a ppllca.ble requirements of· this pa.rag1•aph (v) Shall not be deemed to violate 

§910.4(b)())(lv) of thlB pa.i•t. 

388 

Attachment A 
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Federal Trade Commission 

(D) Tbls pa.ragraph (v) shall not apply 

to any outbound telephone oa.11 that delivers a J)I'ereoorded healthoa.l'& mes­ eago mo.de by, or on bohi.lf or, a. covered 

entity or Its buslness associate, as 

those terms are defined In t11e HIPAA 

P1·1va0y Rule, 46 OJi'R, 160.IOS, 

(2) J~ le an abuelve telemarketing act or pre.otlce and a violation of Lbia Rule 

for any person to sell, 1·ent, lease, purchase, 01· uee a.ny 11st esta.bllahed to 

comply with § 310.4(b)(l)(lll)(A), or maintained by the OommJeslon pursuant to § S10.4(b)(l )(lll)(B), for any purpose except oompltanoe with the provisions or this Rulo or othe1·wl86 to prevent t11lephone oa.lls to telephone num­ bers on suoh lists. 

(3) A seller or telema.rketer will not 

be liable for vlolathl&' §310.4(b)(l)(11) 

a.i1d (lll) if It oa.11 demonetro.te that, as 

pal't of the seller's or telemarketer's routlne business pra.ctlce: 

(l) It ba.s estabUshed and fmplemeutcd written prooedures to comply 

with§ 810.4(b)(lX11) and (IU); 

(II) It has trained Its personnel, and 

II.DY ent.lty assisting In Its oompllanoe, 

In the 1:>1·ooedw-es establlshca PUl'IIUDJJt 

to §310.4(b)(3)(1); 

(111) 'l'hc seller, or a telemarketer or another per11on acting on behalf of the 

seller or cha.rltablo organization, has 

maintained a.nd recorded a Us~ of telephono numbers the seJler 01· oha.rltable 01,ra.nlzatlon ma.y not contact, In com­ pliance with §310.4(b)(l)(lll)(A); 

(lv) The i;tiller or a. telemarketer usee 

a 11rooess to prevent tolemarkotl11g to 

l\ny t elephone numbe1· on a.ny list established pursuant to §310.4(b)(8)(111) or 310.4(b)(l)(iU)(B), employing a. version of tho "do-not-o&ll " registry obtained 

from the Commission no mo1·e than 

thirty-ouo (Sl ) days p1fo1• to tho date 

a.ny ca.U is ni11de, and m11-lntalns reoorde dooumentlnr this prooeea; 

(v) 'rhe seller or o. telemarketer or 

anothel' person acting on b ehl\U of the 

seller or oharita.ble orga.ulza.tlon, mon­ itors and enforce! oomplle.noe with the 

procedures established pu1•saant to 

§310.4(bXS)(1); &lld 

(vi) Any subsequent call otherwise 

viola.bing §310.4(b)(J)(ll) or (111) is tho 

result or error. 

(4) A seller 01· tolema.r.kete1• will not. 

be liable for vlolat.log §31M(b)(l)(lv) lf: 

§310.4 

(l) The selle1· or telemarketer em­ ploys technology thn.t ensures abandonment of no more than three (3) per­ cent of all calla answer ed by a person, moaeured over the dura.tton of a single 

oalllng oampa.lgn, 11 less t,)Ja.n 30 d&ys, or separately over ea.ch successive 80-

da.y period or portion thereof that the 

campaign continues. (11) The seller or telemarkete1·. for eaoh telemarketing call pla.oed, a.llowe 

the telephone to rlng for a.t least fift een (16) seconds or foui· (4) rings before 

dfsconneotlng a.n unanswe1•8d oa.11; 

(Ill) Whenever a ea.Jes 1•epresontatlve 

la not ava.1lable to speak with the per­ son answering the call wit.bin two (2) 

eeocnds after t he person's completed 

greetlng, the seller or telemarketer 

promptly plays a recorded meesa.ge 

tba.t eta.tee the name and telephone 

number of the seller on whose beha.lf 

tbe call wu pla.ced6"; and 

(lv) Tlie selle1• or telema.rkete1•, In ao­ co1•da.nce with §310.ti(b)-(d), retains 

J'eoorde eetablishlng compliance with 

§ 310. 4(b)( 4)(1)-(111). 

(o) Callfng t1111e restrfctlont. Without 

the prlor ooneont o! a. pe1·son, lt le .an 

abualve t.elemarketlng act or practice 

and a. violation of this Rule for a. tale• marketer to e11111.ge In outbound telophone ca.Ile to a. person's rosldenoe at 

any time othe1• tha.n between 8:00 a .m. and 9:00 p.m. loca.1 time at tbe called 

person's Jooa.tlon. (d) ~quired oral disclosures f11 the sale 

of goods or 3er11lce.,. It Is an abusive tele­ m&J'ketlng act o.r practice and a violat ion of this Rulo for a telemal'keter tu · an outbound t elepbone call or Internal or extemal upaell to lnduce the pur­ chase of goods or services to fall to dla­ olose trathflllly, promptly, and in a oloar and 0011eJ>lcuous manner to the 

pol'soo receiving the call , the follow!nr 

Information: 

Cl ) The identity of the seller; 

(2) That the purpose of t.he call ls to 

sell goods OJ' 881'VIC88: 

(8) 'rhe na.ture of the goods or se1'vlcse; aud 

(4) Tha.t no purchase 01· payment le 

noooBSa.ry to be able to win a prize ox 

"" 'nllS p1•0vtston does not afftil~ any aeller's or telema1·kete1·'e obllga.Uon to comply 

wlth rolev,mt etatA and fede!'al laws, Including but not limited to the TCPA, 4? U.S.C. 227, and 41 OFR pa.rL 64.1200. 

389 

Attachment A 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 12 of 15 

§310.5 

pe.rtlclpat.o in a, prlze pt•omotlon It a prl:1.e promotion Is offered and that any 

purchaae or payment will not Increase 

the person's obances of winning. TbJs 

disclosure must be made before or In 

conjunction witl1 the desorlpUon of the 

prize to the person calla(), If requested 

by that person, the telemarketer must 

disclose the uo-pul'chueh10-payment. 

entry method for the prize promotion; 

provided, however, that, In a.ny inLerna.l upsell for the SAie of goods or serv• Ices, the seller or telemarketer must 

provide the d1sclosu1-es listed In this 

sectlon only Lo, the extent that the lnformaUon In the upsell differs f1•om tho 

dlsolosru·es p1•ovlded 111 the Initial t ele­ ma.rketing transaction. (e) Required oral disclosures 111 cluu·t• 

table solicitations. lt is an abusive tole• 

market111g act or practice and a viola• 

tlo11 of this Rule for a: telemarketer, In an outbound t.elephoue call to Induce a oharitaQle contrlbut!on, to fall to ells• 

close truthfully, prom1>tly, and in a 

olear and conspicuous ma.nnel' to the 

person reoelvlng the call. the following 

lnfonna.tlon: (]) The Identity of the char1tabls organization on behalf of which the t·equest Is being made; a.nd 

(2) That the J)Ul'l)OSe or tho call Ill t,o 

solicit a, chat•lta.ble ooritrlbutlon. 

[?6 FR 48610, Aug. 10, 2010, ae amended ~~ 76 

FR 68716, Sept. 22, 2011) 

§ 810.6 Recordkeeplng requirements. 

(a.) Ally seller or telemarket.el' shall 

keep, fot· a period of 24 montl1s from 

the d11,to the 1·eco1·d Is produced, the fo l­ lowing l'eoords rela.t111g to It.a ~elemarkettug a,otlvtttes: 

(]) All substantially different adver· 

tisiug, b1·oollures, telema1·keting 

scl'lp\.S, and p1•omot.Jo11al materials; 

(2) The name and last, known address 

of each pt1ze r ecipient, and the prize 

awarded fo1• prlzes that at•e rep• resent ed, dh·ectly or by impl1cat.lon, to 

have a value of $25.00 01• more; 

(3) The name and last kuown add1·ees of each customer, the l(OOds or set'Vlces 

purchased, Wle date such goQds 01· ee1•vlces were shipped or provide<\, and the 

amount })aid by the customer fo1• the 

goods or services;-

'"" For offers of cou~umel' cl'e<llt pro<lucte 

sullJect l.o the Truth in Lending Act, 16 

16 CFR Ch, I (1-1-14 Edlllon) 

(4) The name, any fictiti ous name 

used, the !Mt known home address and 

telephone number, and the job tltle(s) 

for all cunent and former employees 

dlreotJy Involved In telephone sales or sollolta.tlons; provided, however, that If 

the seller or telemarkete1· permits flotltlous names to be used by employees, 

ea.oh fictitious name must be traceable 

to only one spec1fic employee: and 

(5) All verifiable aut.horlza.tlons or records of expl'ess Informed consent or e:¥press agreement a·equlred to be pro• 

vlded or a•eoeived under tllls Rule. 

(b) A selle1· 01· telema1·kete1' ma.y 

keep the records required by §310.5(&) 

In any Corm, and in these.me manner. 

format, or place as they keep such 

records In the 01·dlnary course of business. Fa11ure to keep a.ll records re­ quh·ed by §310.5(a) sha11 be a violation 

of this Rule. 

(o) The seller and the telernarketor 

calling on behalf of the seller ma,y, by 

Wl'ltten agreement, alloca.te responsl• 

blllty between themselves lor the reo­ ordkeeplng required by tble Section. When a. sellel' and telemarketer have 

entered into suoh an agreement, the 

torms of that agreement shall govern. a.nd the sollel' 01· telemarketer, as the oase may be, need not 1teep 1·ecords 

tba~ duplicat e those or ~lie other. lf the 

agreement Is unolear as to who must 

ma.lntaln any 1·equl!·ed 1·eoo1•d(e), or If 

no suoh agreement e"Jsts, the seller shall be respone!ble fo1• complying with 

§§3l0,5(a)Cl)·(3) and (Ii); tho tele• 

marketer shall be responsible for com­ plying wltb §310.6(a.)(4), · 

(d) In tho event o.f any dissolution or ter m ina.t.1O11 of tbe seller's or tolemarketer's bualnese, the principal of 

that seller or telemarketer shall ma,intaln all recordJ!. as required uncl01· this 

section. In the event of any sale, as­ signment, or other change In ownership 

of tile seller's or telemal'keter's busl• 

nes:;, the suooca11or business slmll ma.In· 

taln a.11 reool'de required under this sect ion. 

u.s.c. 1601 et seq., and Regul&IJOII z. l:I CFR 

228, compllnnce with the l'tlco1·dkeepln1r re­ qulremtnt.a undor the TJ•utll In Lendlnc- Act 

and Regula.tlon Z, eha.11 coneUtute 001npllance with §310.6Ca)(3) ol this ftule. 

390 

Attachment A 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 1,3 of 15 

Federal Trade Commission 

§ SI 0.6 Exemptions. 

(a) Solicitations to Induce cha.rita.ble 

contributions via outbound telephone 

calls l\.l'e not cove1•ed by 

§31M(b)(1)(!11)(B) of this Rule. 

(b) The following aots or praotloes are exempt from this Rule: 

(l} The sale of pay•per•call services 

subject to the Oommlsslon'a Rule entt• 

tled "Trade Regulation Rule Pursua.nt 

to the Telepl1one Dlsolo&ure and Dis• 

pute Resolution Act of 1992," 16 CFR 

pa.rt 808, provided, hoVt'.ever, that this 

exemption does not apply to tbe re­ quirements of §§3l0.4(a)(l), (1\)(7), (b), 

and (c); 

(2) The ea.le or rranch!ses subject to 

the Commission's Rule enUl,led '

1Dlsclosure Requirements a.nd Prohibitions 

Concerning Franchtstng," ("Franchise 

Rule") 16 01rn. part 486, and the sale of 

business opportunities subject to the 

Commission's Rule entitled "Dlsolo­ eure Requil'ements and Prohibitions Concerning Business Opportunities," 

("Business Opportunity Rule") 16 CFR 

pa.rt 437, provided, howeve1·, that this 

exemption does not apply to the re• qu!remeuts of §§8l0.1(a.Xl ), (a)(7), (b), 

and (o}: 

(S) Telephone calls Ill wblcb the sale 

of goods or services 01· oharltable solic• 

ita.tlon le not completed. and pe.yment or authol'iza.tlon of payment Is not re­ quired, until arter a faoe-to,face sales 

or.donation presentation by the seller or charita.ble organization, provided, 

however, tlia,t this exemptlon does not 

apply l.o the requirements of 

§§310.1(a)(l), (a)('1), (b), and (o); 

(4) •relophone calls Initiated l>Y a, cus­ tome1· or donol' that are not tbe result 

o! any solloltatlon by a seller, clla.rit.able 01'ga.nlzatlon, or telemarketer, provided, however, that this exemption 

does not apply to any Instances of 

upselling Included In such telephone 

ca,lls; 

(5) Telephone calls lnlt!a.ted by a, CUB• 

tomer or donor in response to au a.dver• 

ttsement thro·ugb a.ny medium, otbe1· 

than direct mail solicitation, provided, 

however, that this exempt.ton does not 

apply to oalls lnltla.ted by a customer · or dono1· In response to an a.dvertlse­ m en t 1·elat1ng to Investment opportunl• 

ties, debL 1•ellef servf ces, buslnoss Ol)­

portun1tles other tha.n buslne:is 8.1'" 

ra.ugements covered by the Fra.nchlse 

§310.7 

Rule or Buetness Oppol'tunity Rule, or advertisements Involving goods or services desol'ibed In §§ 310.S(a)(l)(vl) 01· 

310.4(a.)(2)-(4); or to any insta.noes of 

upselllng Included in such telephone 

calls; 

(6) Telephone ca.Ile lnitia.ted by a customer or donor In response to a. direct 

mall sollcita.t!on, including sollclta· 

tlone via the U.S. Postal Service, fa.cslmlle transmission, eleotronio mail, 

and other similar methoda of delivery 

In wblch a. solicitation ls dil'eoted to 

speolfio a.ddress(es) 01· 1>erson(s), that 

clearly, ooDsplcuoue}y, and truthfully 

discloses a.11 ma.terlal Information listed In §310.3(a)(l) of this Rule, for 11,ny 

goods 01· servtces offered in tbe direct 

mall solloita.tlon, and that contains no material mlsrepresenta.tlon regarding 

any Item contained In §810.S(d) of this 

Rule for a.uy l'equested obarltable con­ tribution; provided, however, tllo.L this 

exemption does not n.J)ply to cnJ111 lnltl­ .ated by a customer In· respouse to a. direct mall sol!clta,Uon relating liO prize 

promotions, Investment opportunities, 

debt relief services. business oppo'rtunlt!ee othel' than business arrangements 

covered by the F1·a.nchlee Rule 01· Busi­ ness Opportunity Rule, or goods 01• 

se1·vicee described In §§810.3(a)(l)(v1) 01• 

310.4(a}(2)·(4); 01· to a.ny instances of 

upselllng Included in such telepl1one 

ca.lie; a.nd 

(7) Telephone ca.Ila between a telemal'k&t.er a.nd any business, except 

calls to h1duce the retail sale of non• durable office or oleanlnir supplies; 1>rovided, howeve1•, tbat §310.4(b)(l)(lil)(B) 

and §310.6 of this Rule shall not apply 

to sellers 01· telerna.rkete1'8 of non­ durable office or clea,ning supplies. 

§310.7 Actions by states and private 

persons. 

(a) Any aLtorney general or other of• 

ricer of a stats authorized by the state 

to bring a.n action under the •relema.rketing and Consumer 1''1•aud a.nd 

Abuse Prevention Act. 11.nd any prlv11,te 

person who brings an action under that 

Act, sha.11 serve written notice of its 

action on the· Comm1sslon, if feasible , 1>1·101• to its Initiating an 11,ction under 

thle Rule. 'l'he notice shall bo sent to 

the Office of the Director. Bureau of 

Consumer P1·oteotion, Federal Tl'ade 

Commission, WIU!htngton, DC 20580, a.nd 

391 

Attachment A 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 14 of 15 

§310,8 

&ha.ll include a. copy of t;he ata.te•s or 

11rlvMo l)el'son 's complaint nnd any 

oth0I' pleadings t,o l.le flled Wltll the 

court,, If p1'101· n oLloe Is not l'eulble, 

the state 01• prlva.l.e person aha.JI serve 

the Comml~lon with the required not!oe lmmelllateJy upon Instit uting Its 

action. 

(b) Nothing contained In thl• Section 

shall prohibit; any atto1•ney c-enere.l or 

other authorized ste.te orfiola.1 from 

proceeding Jn et.ate court. on the bat1ls of an a.Jlegod violation of any olvll or 

orlmlnal statute of euob sta.to. 

§810.8 Fee for acceu to the National 

Do Not CaU Regiatry. 

(a ) n ls a violation of this Rule for 

any seller to lnlt.lat.o, or oauss any 

Lelom11.1·keter to lnltla.t;e, an outl.lOW)d 

telephone call to ~ny person whoso 

telephone number la within n given 

area. code unless 5uch seller, o!Ll1er di· 

1·ectly or Lh1•ough 11.not.her persou, n1·st 

hn& paid tho annual fee, requll'ed by 

§310.S(c), for aocees to telephone numbers within that. a.rea code tha t a.re lncludod In the Ne.tion11.I Do Not Call 

Registry maintained by ~b o Oomm.1seio11 under §310.4(b)O)(lll)(B); m·ovlded, 

however, tha,t such payment ls not necesea1-y if t.be se ller lnl Ua.tes, or 08.1168 8 

a telema.rkoto1· to Initiate, ca.lie solely 

to pe1•son,t pursuant. to 

§§310.1(\.))(l)(IUXB)(i) 0 1' (ll), a nd the 

seller does 11ot access t,bo Na.tlonal Do 

Not Ca.II Registry for any other pu1~ 

pose. 

(b) ft, IS I\ VJO)a&lon of Ulls lt\lle for 

o n ~• lelem,u•ltot.er, on l>ohaJ( of a.r1y seller. t,o lnltla.t.e a11 outbound ~elephono call to any Jlerso11 whose telephone 

number ls within a glvo11 area oode llllJeae that selle1•, either directly or 

through another J)e1·eon , first. ba.s paid 

the a.nnual fee, requll'ed by § 310.B(o), 

!01· access t,o ~he telephone nmnbere 

witJ1ln that al'ea code tha.t a.re included 

i.n t he No.tlonal Do Not, Call Registry; 

provlded, however, Lha.t suoh payment 

is not, neoes11l'l.1·y if the solle1· lnitJa.t.es, or ca.uees a telemarketel' to lnltla.te, 

ca.Ila eolely to pareons J>ill'SUAnt Lo 

§§3J0.4(l>)Cl)(lil)(BJ(1) or (Ii), and the selle1· does uot access the No.tlonn.l Do 

Not Ca.JI Regist1•y for any otllo1· purpose. (o) The 1u111ua.J fee, whioh muet; be 

1>alcl by any person 11rlor to obtalnlng 

16 CFR Ch, I (1-1-14 Edition) 

aooese t,o the National Do Not Call 

Reglst1·y, Is $59 for each area. code of 

dat.a. aooossed, up to a. mn,ximum of 

$16,228; provided, however, that there 

sba..ll l>o no charge to any pe1·son for ac­ oessJng the f11•st five area codes of d11.la, 

and provided /11Tther, that thei•e el10.ll be 

no chru·go to a.ny person an!l'aglng In 01· 

oauslng others to enga.1:0 In outbound 

telephone crule to oonsumors and who 

le a.ocosslng area, oodes of data In the 

N11.tlona.1 Do Not. Call Registry If the 

parson h1 permi tted t.o o,oooss, liut Is 

not. reoulred to acoese, the Natlona.J Do 

Not C&ll Registry und11s- tbls Rule, 47 

CFR 64.1200, 01· any ot;he1· Federal reg11-

la.tlon 01· 111.w • .Any person aoceee1ng t.he 

National Do Not Call Registry ma.y noL 

partlolpate In any arrangement to 

el1a.re tho oost of a.cces11!11g the registry, b1oludin,r a,ny ai•1·angemen L with 

a,1,1y t.elamarkete1· or service provlcle1· Lo 

dlvldo t.he coate Lo a.coess tl1e reglst.ry 

among va.i•Jous clients of that teleme.rl<et.e1· or service provider. 

(d) Ba.oh person who pnys, eJt.h!lr 1Ureotly 01• through anotb111· pe111011, t,he 

annual fee sot fol"th In § 3l0.8(c). each 

person excepted uode1· § 3l0.8{c) from 

paying l,J10 annual foe. and each pe1•eon 

exceptlld from pa)•lng an annual fee 

under §310.~(b)(J)(lll){B), will be provided a unique account number that 

will a.llow that person to access the 

registry data. !01· the selected 1\rea 

codes at a.ny time for the twelve month 

porlod beginning on tbe first. day of tbe 

month In which the 1,e1•son paid the roe 

("the rumun,J pe1•l o(I"), To obta.in 0.000&1; 

Lo ntldltlona.l ·area oodee of dn~a. du1'ing 

the fil•e t six monLhe of the annual pe• 

1·1od, e1wh person required t.o pay t he 

rea undal' §310.0(c) must fh'St 1,ay $69 

for each additional area. code or dMa 

not lnltlal!y seleot.ed. To obt,11,ln access 

to addl tlona.l area oodes or data, durJntr 

tl1e seoond six months of tl1e annual pe- 1•lod. ench ll8l'so11 requll'ed to pay the 

fee undor §3l0.8(o) must, rtreL p11,y iao 

for ea.oh a.dditiona.1 area oocle of da.ta 

not Initially selected. The payment ot 

tbe a.ddlt.lona.l foe wm permit the pel'­

son to access the additional al'8a oodee of data. for tile 1>ema.Jmler of the annua.l 

pe11oc1. 

(o) Aocoss to t he National Do Not, 

CnU Reg-ls\ry Is limited to telo­ markete1'8, selle1·e, othera engaged In 01· 

on.using others to engage In tel ephone 

392 

Auachment A 
Case 3:19-cv-00196-KC Document 84-1 *SEALED* Filed 12/03/19 Page 15 of 15 

Federal Trade Commission 

oa.lls to consumers, service providers 

acting on behalf of SU.Ch parsons, and 

any govermncnt, agency Uui,t has Jaw 

enfo1·cement authority. Prior to accessIng tile National Do Not Call RegJ13try, a )lCJ-son must, provide tile ldenU{ylng 

!nrormntlon raqull'ed by t,he O}Jemtor of 

the l'eglstry to collect the fee, and 

must cei•tlfy, unde1· pene.lty of law, 

tba.t the persou le acoesslng the reg• 

lst.ry solely to comply with the prov1• 

slons of this Rule or to otherwise pre• 

vent telephone calls to telephone num• be1·s on the l'eglstry. If the person Is ao• cessing tbe registry on behalf of sell­ ers, tba.t po1·oon also must ldent.ify 

ea.ch of the sellers on whose behalf tt ls 

accceslug the registry, must provide 

eaoh seller's unique account number 

tor acce58 to the nat!ona.1 r!!g-letry, and 

must corttfy, undM 11enalty of law, 

tba-t the selle1·s will be using the lnfOI'• 

ma.tlon ga.tbercd from the registry 

solely to comply with tbe provjslons of 

thls Rule or otl1erwise to preve11 t telephone ca.lls to tel!!phone nwnbers on the registry. 

l76 FR 48516. A\lg. 10, 2010: '16 FR 61934. Aug. 24, 2010, all ameJHled at '17 FR 61697. Aug. 27, 

20111; 78 FR 5SGt3, Aug. 30, 2013) 

§310.9 Severability. 

'l'he provisions of this Jtule are sepa.­ ra.te and severable from one anotller. If 

any provision Is stayed 01• dete1·m111ed 

to be Snvn.lld, It le the Commlssfon 's intention tbat tho remaining provls!ons 

shall oontluue 111 effect. 

393 

§311.4 

Attachment A 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 1 of 16 

ATTACHMENT B 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 2 of 16 

FEDERAL TRADE COMMISSION 

FINANCIAL STATEMENT OF CORPORATE DEFENDANT 

Instructlons: 

I. Complete all items. Enter "None" or "N/A'1 ("Not Applicable") where appropriate. If you cannot fully answer a 

question, explain why. 

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

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

predecessors that are not named defendants in this action. 

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

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

benefit of the corporation. 

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

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

6. Type 01· print legibly. 

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

eacb page in the space provided in the lower right corner. 

Penalty for False Information: 

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

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

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

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

same to contain any false, fictitious or fraudulent statement or enhy" ( I 8 U.S.C. § I 00 I); 

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

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

(3) "in any(. , . statement under penalty of pe1jury as permitted under section 1746 of title 28, United States 

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

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

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

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

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

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

18 u.s.c. § 3571. 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 3 of 16 

BACKGROUND INFORMATION 

Item 1. General Information 

Corporntion's Full Name _ ________________ ______________ _ 

Primary Business Address ___ _ ______ ____ _ _ _______ From (Date) ___ _ 

Telephone No. _________ ___ Fax No. ___________ _ 

E-Mail Address Internet Home Page _ ________ _ 

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

Address. _ ______ ________ __________ From/Until. ________ _ 

Address _____ _____ ______________ _ From/Until. ________ _ 

Address From/Until ________ _ _ 

All predecessor companies for past five years: 

Name & Address ______ __________________ From/Until _____ _ 

Name & Address From/Until _____ _ 

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

Item 2. Legal Information 

Federal Taxpayer ID No. ___________ State & Date ofincorporation __________ _ 

State Tax ID No. _________ State _______ Pr.ofit or Not For Profit _ _______ _ 

Corporation's Present Status: Active _______ Inactive ______ Dissolved _______ _ 

If Dissolved: Date dissolved __________ _ By Whom _ _ _ ______ ______ _ 

Reasons _____________________________________ _ 

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

Item 3. Registered Agent 

Name of Registered Agent ____ __________________________ _ 

Address ___ ________________ ____ __ Telephone No. _______ _ 

Page 2 Initials ___ _ 

!. 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 4 of 16 

Item4, Principal Stockholders 

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

Name & Address 3⁄4Owned 

Item 5. Board Members 

List al) members of the corporation's Board of Directors. 

Name & Address % Owned Term (From/Until) 

ltem-6. Officers 

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

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

Name & Address 3⁄4Owned 

Page 3 Initials _ _ _ _ 

• I 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 5 of 16 

Item 7. BusJnesses Relate(j to the Corporation 

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

Name & Address Business Activities % Owned 

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

Item 8. Businesses Related to Individuals 

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

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

Indjvidual's Name Business Name & Address Business Acli.vities % Owned 

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

Item 9, Related Individuals 

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

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

stock11olders, board members, and officers (i.e., the individuals listed in Items 4 - 6 above). 

Name and Address Relationship Business Actjvjtjes 

Page 4 Initials _ __ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 6 of 16 

Item 10, Outside Accountants 

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

Firm Name Address CPA/PA? 

Item 11. Corporation's Recordkeeping 

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

the last three years. 

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

Item 12, Attorneys 

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

Firm Name Address 

Page 5 Initials ___ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 7 of 16 

Item 13. Pending Lawsuits Filed by the Corporation 

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

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

Opposing Party's Name & Address ______ ___________ __________ _ 

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

Docket No .. _______ Relief Requested _______ __ Nature of Lawsuit. _______ _ _ 

_______________ Status. ______ ____________ _ _ __ _ 

Opposing Party's Name & Address. _________ __________________ _ 

Cou1i's Name & Address _ __________________________ ____ _ 

Docket No. ____ ___ Relief Requested ______ ___ Nature of Lawsuit. ________ _ 

_ _____ _________ Status,_ _ _ ___________ ________ _ 

Opposing Party's Name & Address _ ____ _ _____________________ _ 

Cou1t's Name & Address. _ _ ____ _ ______ _____________ _____ _ 

Docket No .. _______ Relief Requested. _________ Nature of Lawsuit;..._ _ ______ _ 

_ ___ ___________ Status. ____ ________ __________ _ 

Opposing Party's Name & Address. ______________ _ _ ___________ _ 

Court's Name & Address. _______________ ________________ _ 

Docket No. _______ ReliefRequested _________ Nature of Lawsuit _ ____ _ __ _ 

Status -------------- - ·-----------------------

Opposing Party's Name & Address ________ _ 

Court's Name & Address_~------------- - ----------------

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

________ _ ______ Status,_ __________ ___________ _ 

Opposing Party's Name & Address ____ ____ _ ___________________ _ 

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

Docket No. _ ______ Relief Requested ______ ___ Nature of Lawsuit ________ _ 

________ _______ Status. ______________________ _ 

Page 6 hlitials ___ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 8 of 16 

Item 14. Current Lawsuits Filed Against the Col'poration 

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

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

Opposing Party's Name & Address _ _ ___ ___________ ___ ______ _ _ _ 

Cou11's Name & Address. ________ _ _ ___ _ _ ________________ _ 

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

_ _ __________ _ __ Status. _ _____________________ _ 

Opposing Party's Name & Address __________________________ _ _ 

Court's Name & Address _ _______ _____ __________________ _ 

Docket No. _______ Relief Requested ____ _____ Nature of Lawsuit _ _______ _ 

_______________ Status ______________________ _ 

Opposing Party's Name & Address ________________ ___ _ _______ _ 

Cou11's Name & Address. ________ _____ ________ ______ ___ _ _ 

Docket No .. ___ ____ Relief Requested _ ________ Nature of Lawsuit. ____ ____ _ 

____ ____ _______ Status. _______________________ , 

Opposing Party's Name & Address. _ __________________________ _ 

Court's Name & Address. _____________ _______ _ _____ _____ _ 

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

_ ______________ · Status. ______________________ _ 

Opposing Party's Name & Address. _ _________ ______________ _ __ _ 

Couit's Name & Address. _________________________ _ _____ _ 

Docket No. _ ______ Relief Requested. _ ____ _ ___ Narure of Lawsuit. _ _______ _ 

_ ___ _ __________ Status. _____ _ _______________ _ _ 

Opposing Party's Name & Address. ___________________________ _ 

Court's Name & Address. _ ____ _____ ____ _ _ _____________ _ _ _ 

Docket No. _______ Relief Requested ______ ___ Nature of Lawsuit. _ _______ _ 

__________ _ ____ ·starus. ______________________ _ 

Page 7 Initials ___ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 9 of 16 

Item 15, Banlu·uptcy Information 

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

Co1wnencement Date ______ _ Tennination Date _______ Docket No. _ ______ _ 

If State Court: Court & County ____ ______ If Federal Court: District _ _ ________ _ 

Disposition _________________ _ ___________ _ _____ _ 

Item 16. Safe Deposit Boxes 

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

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

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

FINANCIAL INFORMATION 

REMINDER: When an Item asks for information about assets or liabilities "held by the corpo1·ation," include 

ALL such assets and liabilities, located within the United States 01· elsewhere, held by the co1·po1·ation or held by 

others for the benefit of the corporation. 

Item 17. Tax Returns 

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

Federal/ Tax Yem· Tax.Due Ta~ ~aid TaxD~1e Tax Paid Preparer's Name 

StateiBoth · Federal Federal State State 

$ $ $ $ 

$ $ $ $ 

$ $ $ $ 

Page 8 Initials ___ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 10 of 16 

Item 18. Financial Statements 

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

fisca I year-to-date. Affach copies of all statements, providing audited statements if avaifoble. 

Balance Sheet Profit & Loss Statement Cash Flow Statement Cl~anges in Owner's Eguity Audited? 

Item 19. Financial Summary 

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

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

information. 

Gross Revenue 

Expenses 

Current Year-to-Date 

$ _ _____ _ 

$ ______ _ 

Net Profit After Taxe~ $ _______ _ 

Payables $ ____ __ _ 

Receivables $ ___ ____ _ 

1 Year Ago 

$ _ _____ _ 

$ _____ _ 

Item 20. Cash, Bank, and Money Market Accounts 

2 Years Ago 

$ 

- - -----

$ _____ _ 

3 Years Ago 

$ 

------- $ ___ __ _ 

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

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

Cash on Hand$ Cash Held for the Corporation's Benefit$ ----------- --- -------

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

$ 

CUITClll 

Balance 

--- - - - - - - ---- ---- - --- ------- ---- - - - - - -----

_ ___ _____________________ _ ___________ $ ____ _ 

_ ____________________________________ $ ____ _ 

_________________ _ _ _ _______ ___ _______ $ _ ___ _ 

Page 9 Initials ----
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 11 of 16 

Item 21. Government Obligations and Publicly Traded Securities 

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

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

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

Issuer ________ _ ______ Type of Security/Obligation _ ____________ _ 

No. of Units Owned ____ Current Fair Market Value$ _ _______ Maturity Date _ _____ _ 

Issuer _________ _ _ ___ Type of Security/Obligation _____________ _ 

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

Item 22. Real Estate 

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

Type of Property _______ ___ _ _ __ Prope11y's Location ___ ___________ _ 

Name(s) on Title and Ownership Percentages _ _ _________ _____________ _ 

Current Value$ _ _______ Loan or Account No. _ ___ ___ ___ _ 

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

CuITent Balance On First Mortgage $ ______ Monthly Payment$ _ _ ___ _ 

Other Loan(s) (describe) ___ __________ _ _ ___ _ Cun-ent Balance$ ______ _ 

Monthly Payment$ ____ _ ___ Rental Unit? _______ Monthly Rent Received $ _____ _ 

Type of Properly _ ___________ __ Propetfy's Location ____________ _ _ _ 

Name(s) on Title and Ownership Pel'centages. _____________________ ___ _ 

Current Value$. ________ Loan or Account No. _ ____ _____ _ 

Lender's Name and Address. _______________________________ . 

Cun·ent Balance On First Mortgage $. ______ Monthly Payment$ _____ _ 

Other Loan(s) (describe), ___________________ Cun-ent Balance$ ______ _ 

Monthly Payment$ ________ Rental Unit? _ ______ Monthly Rent Received $ _ ____ _ 

Page IO Initials ___ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 12 of 16 

Item 23. Other Assets 

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

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

intellectual properly. 

Property Category Property Location Acguisition Current 

Cost ~ 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

$ $ 

Item 24. Trusts and Escrows 

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

Trustee or Escrow Agent's 

Name & Address 

Description and Lucalion of Assets Present Market 

Value of Assets 

- - - ---- - --- - ---- -------,--------------$ _ ______ _ 

------------~---------------- - - ---- $ _ ______ _ 

___ ___________________ _ _ _____ ___ ___ $ _______ _ 

_ _ _ _______ ___ _ _ ____________________ $ ____ _ __ _ 

___ _ _ ____________________ _ ____ _ _ __ $ _ _ _ ____ _ 

_________________ ____ _ _ _ _ ___ _______ $ _______ _ 

_ _ _ ______ _ _ ___ _ _ ___________________ $ _ ______ _ 

Page 11 Initials _ _ _ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 13 of 16 

Item 25, Monetary Judgments and Settlements Owed To the Corporation 

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

Opposing Party's Name & Address:_ _ _________ ________________ _ 

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

Nature of Lawsuit. _ ______ ____ __ Date of Judgment. _ ____ ....;__ Amount$ ____ _ 

Opposing Party's Name & Address. _ _ ___________ _____ _______ __ _ 

Court's Name & Addl'ess. __________________ ____ Docket No. ____ _ _ 

Nature of Lawsuit. _ _________ _ __ Date of Judgment _ ______ Amount$ ___ _ _ 

Item 26. Monetal'y Judgments and Settlements Owed By the Corpo1·atlon 

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

Opposing Pai1y's Name & Address. ____ ___ _____ _______________ _ 

Court's Name & Address. _____________________ _ Docket No .. _ ____ _ 

Nature of Lawsuit. _ ________ ________ Date. _____ _ Amount$ _ ____ _ 

Opposing Party's Name & Address. _ ____________________ ______ _ 

Cou1t's Name & Address. _____________ _________ Docket No .. _____ _ 

Nature of Lawsuit'--------- ------Date of Judgment _ ______ Amouot $. ____ _ 

Opposing Party's Name & Address. ______________ _____ ________ _ 

Comt's Name & Address. ____________________ _ _ Docket No .. ___ __ _ 

Nah1re of Lawsuit _ _ _____ ___ ___ Date of Judgment. _ ______ Amount$ _ ___ _ 

Opposing Party's Name & Address. _ _ _____ ___ ______ _ __________ _ 

Court's Name & Address. ____________ __________ Docket No .. _____ _ 

Nature of Lawsuit. _ ___ ______ _ _ _ Date of 1ud!:,•ment _______ Amount$. ____ _ 

Opposing Party's Name & Address. _________ _ _ ________________ _ 

Cou1t's Name & Address ______________________ Docket No. _ _ ___ _ 

Nature of Lawsuit. ______ _____ __ Date of Judgment _______ Amount$. _ ___ _ 

Page 12 Initials ___ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 14 of 16 

Item 27. Government Orde1·s and Settlements 

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

Name of Agency ___ _ _ _ _ ____________ Contact Person _________ __ _ 

Address _ ____ _____ _ _ _ ____ _ ___ _ ___ _ Telephone No. _____ _ 

Agreement Date _ ____ _ Nature of Agreement _ _ ____ _ ______________ _ 

Item 28, Credit Cards 

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

Name of Credit Card or Store Names of Authorized Users and P ositions Held 

Item 29. Compensation of Employees 

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

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

fiscal years and current fiscal year-to-date. "Compe1isation" includes, but is not limited to, salaries, commissions, 

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

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

individuals, or paid to others on their behalf. 

Name/Position Current Fiscal 1 Year Ago 2 Years Ago 

Year-to-Date 

Compensation or 

Type 6f Benefits 

_ ____________ $ ___ __ $ _____ $ _ ___ ____________ _ 

_ ___ _ _ ___ _ ___ $ _ ____ $ _____ $ ____ _ _ __________ _ 

_ _ ____ _____ __ $ _ _ _ _ __ $ _ _ _ __ ~------- - - ---- - - --

________ _____ $ _____ $ ___ __ $ ________________ _ 

____________ $ _ _ ___ $ _ ____ · $ _ ___ _______ _ ____ _ 

Page 13 Initials ___ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 15 of 16 

Item 30. Compensation of Board Members and Officers 

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

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

commissions, consulting fees, dividends, distributions, royalties, pensions, and profit shal'ing plans. "Other benefits" 

include, but are uot limited to, loans, loan payments, rent, car payments, and insurance premiums, whether paid directly to 

the individuals, or paid to others on their behalf. 

Name/Position Current Fiscal 1 Year Ago 2 Years Ago 

Year-to-Date 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

$ $ $ 

Jt~m 31. Transfers of Assets Including Cash and Property 

Compensation or 

Type of Benefits 

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

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

Transferee's Name. Address, & Relationship Property 

Transfen-ed 

Aggregate 

Value 

Transfer 

Dale 

Type of Transfer 

(e.g., Loan, Gill) 

____ __________________ ___ $ __________ _ ______ _ _ 

_____ ___ _________________ $ ___ _ ______ __ _____ _ 

_ _______ ____ _ ____ ___ ____ _ $ _____ _ _______ _ ___ _ 

_________________________ $ _______ __________ _ 

- --- ----------- - ~ · _______ $ _ _ ____ _ _ ______ _ _ _ _ 

Page 14 Initials ___ _ 
Case 3:19-cv-00196-KC Document 84-2 *SEALED* Filed 12/03/19 Page 16 of 16 

Item 32. Documents Attached to the Financial Statement 

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

Item No. Document Description of Document 

Relates To 

I am submitting this financial statement wit11 the understanding that it may affect action by the Federal Trade 

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

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

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

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

and/or fines). I certify under penalty of pe1jury under the laws of the United States that the foregoing is true and correct. 

Executed on: 

(Date) Signature 

Corporate Position 

Page 15 Initials _ __ _ 
Case 3:19-cv-00196-KC Document 84-3 *SEALED* Filed 12/03/19 Page 1 of 3 

ATTACHMENT C 
Case 3:19-cv-00196-KC Document 84-3 *SEALED* Filed 12/03/19 Page 2 of 3 

fom,•4506 

{March 2019} 

Depi;rtment of the Treasury 

lntemal Reveruo setvlce 

Request for Copy of Tax Return 

 Do not sign this form unless all applicable lines have been completed. 

 Request may be rejected if the form is incomplete or illeglble. 

 For more Information about Form 4506, visit www.lrs.gov/form4506. 

0MB No. 15 45-0429 

Tip. You may be able to get your tax return or return Information rrom other sources. If you had your tax return completed by a paid prep1a1ror, they 

should be able to provide you a copy of the return. The IRS can provide a Tax Raturn Transcript for many returns free ot charge. The transcript 

provides most oi the line entries from the original tax return and usually contains the Information that a third party (such as a mortgage company) 

requires. See Form 4506-T, Request for Transcript of Tax Return, or you can quickly request transcripts by using our automated self-help service 

tools. Please visit us at IRS.gov and click on "Get a Tax Transcript..." or coll 1-800-908-9946. 

1a Name shown on tax return. If a joint return, enter the name shown first. 1 b First social securit y number on tax return, 

Individual taxpayer identification number, or 

employer identification number (see instructions) 

2a 11 a joint return. enter spouse's name shown on tax return. 2b Second social security number or individual 

taxpayer Identification number if joint tax return 

3 Current narne, addrel;S (including apt., room, or suite no.), city, state, and ZIP code (see instructions) 

4 Previous address shown on the last return filed If different from line 3 (see Instructions) . 

5 If the tax return Is to be mailed to a third party (such as a mortgage company), enter the third party's name, address, and telephone number. 

Caution: If the tax return Is being malled to a third party, ensure that you have filled In lines 6 and 7 before signing. Sign and date the form once you 

have filled in these lines. Completing these steps helps to protect your privacy. Once the IRS discloses your tax return to the third party listed on line 

6, the IRS has no control over what the third party does with the Information. If you would like to limit the third party's authority to disclose your return 

information; you can specify this limltatlon in your written agreement with the third party. 

6 Tax return requested. Form 1040, 1120, 941 , etc. and all attachments as originally subrnitted to the IRS, including Fonn(s) W-2, 

schedules, or amende<I returns. Coples of Forms 1040, 1040A, and 1040EZ are generally avallable tor 7 years from filing before they are destroyed by law. Other returns may be available for a longer period of time. Enter only one return number. If you need more than one 

type of return, you must complete another Form 4508.  ______________ _ Note: If the copies_ must be certified for court or administrative proceedings, check here . 

7 Year or period requested. Enter the ending date of the year or period, using the mm/ckJ/yyyy format. If you are requesting more than 

eight years or periods, you must attach another Form 4508. 

8 Fee. There is a $50 fee for each return requested . Full payment must be included with your request or it wlll 

be rejected. Make your check or money order payable to "United States Treasury." Enter your SSN, ITIN, 

or EIN and "Form 4506 request" on your check or money order. 

D 

a Cost for each return . ~$ ____ 5_0_.0_0 __ _ 

b Number of returns requested on line 7 . 

c Total cost. Multlply llne Sa by line 8b . $ 

9 If we cannot find the ta:,t return, we will refund the fee. If the refund should go to the third party Hsted on line 5, check here D 

Caution: Do not sign this form unless all applicable tines have been completed. 

Signature of taxpayer(s). I declare that I am either the taxpayer whose name Is shown on line 1a or 2a, or a person authorized to obtain the tax return 

requested. If the request applies to a joint return, at least one spouse must sign. If signed by a corporate officer, 1 percent or more shareholder, partner, 

managing member, guardian, tax matters partner, executor, receiver, administrator, trustee, or party other than the taxpayer, I cenify that I have the authority to 

execute Form 4506·on behalf of the taxpayer. Note: This form must be received by IRS within 120 days of the signature date. 

O Signatory attests that he/she has read the attestation clause and upon so reading 

declares that he/she has the authority to sign the Form 4506. See instructions. 

Sign 

Here 

 Signature (see Instructions) 

 Title (11 llne 1a above Is a corporation, partnership, estate, or trust) 

 Spou8e's algnoluro 

For Privacy Act and Paperwork Reduction Act Notice, see page 2. 

Date 

Onie 

Cal. No. 41721E 

Phone number of taxpayer on line 

1a or 2a 

Form 450~ {Rev. 3-2019) 
Case 3:19-cv-00196-KC Document 84-3 *SEALED* Filed 12/03/19 Page 3 of 3 

_For_m_~_s_o6_(_Re_v_. _3-_20_1_s_) _______________________________________ ....:._P,:ag:!:e~2 

Section references are to the Internal Revenue COde 

unless otherwise noted. 

Future Developments 

For the latest Information about Form 4606 and its 

l11sIruclions, go to www.lts.gov/form4506. 

Information about any recef'lt developments ~lfecting 

Form 4506. Form 450fl·T and Form 4500T·EZ will be 

posted on that page. 

General Instructions 

Caution: Do not sign this form unless all applicable 

lines have been completed. 

Purpose of form. Use Form 4506 to request a copy 

of your lax retum. You can also designate (on line 5) 

a third patty to recaiw, the tax return. 

How long will It take? ti may take up to 75 

calendar days for us to process your request. 

Tip. Use Form 4606-T, Request for Transcript of Tax 

Return, to f'Q(\uoct tax return lnmscripts, tax account 

Information, W-2 lnfor111allon, 1099 lnforrnatlon, 

verification of nonftling, and records of account. 

Automated transcript request. You can quickly 

request transcripts by using our automated sell-help 

service tools. Please visit us at IRS.gov and click on 

"Get a Tax Transcript. .. • or call 1·600·908-9946. 

Whore t.o Ille. Attach payment and mail Form 4506 

to the address below for lhe slate you lived in, or !he 

Slnlo yoi.x business was if!, wh8n thal rotum was 

~ed. Thero ale two address charts: one lor 

individual relurns (Form 1040 series) and one for all 

other returns. 

If you are requesting a return for more than one 

year or period and the chart below shows two 

different addresses, send your request to the 

address based on the address of your most recent 

return, 

Chart for individual re1urns 

(Form 1040 series) 

If you filed an 

individual retum 

and lived in: 

Alabama, Kentucky, 

Louisiana. Mississippi, 

Tennessee, Texas, a foreign country, American 

Samoa, Puerto Rico, 

Guam, the 

Commonwealth of the 

Northern Mariana Islands, 

the U.S. Virgin Islands. or 

AP.O. or F.P.O. address 

Alaska, Arizona. 

Ar1<ansas, California, 

Colorado, Hawaii, Idaho, 

Illinois, Indiana, Iowa, 

Kansas, Michigan. 

Minnesota, Montana, 

Nebraska, Nevada, New 

Mexico, North 0-dkota, 

Oklahoma, Oregoo, 

Soulh Dakota, Utah, 

Washington. Wisconsin, 

Wyoming 

Connecticut, 

Delaware, District of 

Columbia. Florida, 

Georgia, Maine, 

Maryland, 

Massachusetts, 

Missouri. New 

Hampshire, New Jersey, 

New York, North 

Carottna, Ohio, 

PeMsylvanla, Rhode 

Island, South Carolina, 

Vennont, Virginia, West 

Virginia 

Mail to: 

Internal Revenue Service 

RAIVSTeam 

Stop6716AUSC 

Austin, TX 73301 

lntema.I Revenue Service 

RAIVSTeam 

Stop 37106 

Fresno, CA 93888 

Internal Revenue Se,vlce 

RAlVSTeam 

Stop 6705 S-2 

Kansas City, MO 

64999 

Chart for all other returns 

If you lived in 

or your business 

was In: 

Alabama. Alaska, Arizona, Arkansas, 

California, Colorado, 

COnnectlcut, Delaware, 

District or Columbia, 

Florida, Georgia, Hawaii, 

Idaho, lltinols, Indiana, 

Iowa, Kansas, Kentucky, 

Loulslana. Maine. 

Maryland, 

Massachusells, 

Michigan, Minnesota, 

Mississippi, 

Missouri, Montane, 

Nebraska, Nevada, New 

Hampshire, New Jersey, 

New Mexico. New Yoll<, 

North Carolina. 

North Dakota, Ohio, 

Oklahoma, Oregon, 

Pennsylvania. Rhode 

Island, South Carolina, 

South Dakota, 

Tennessee, Texas, Utah, 

Vermont. Virginia, 

Washington, West 

Virginia, Wisconsin, 

Wyoming, a forelgn 

country, American 

Samoa, Puerto Rico; 

Guam, the 

Commonwealth of the 

Northern Mariana 

Islands, the U.S. Virgin 

Islands, or A.P.O. or F.P.O. address 

Mail to: 

Internal Revenue Seivlce 

RAIVSTeam 

P.O. Box 9941 

Mafl Stop 6734 

Ogden. UT 84409 

Specific Instructions 

Line 1b. Entor your omployer Identification number 

(EIN) Ir you are requesting a copy of a business 

return. Othorw;se, enter the first social socurily 

number (SSN) or your lndMdual taxpayer 

Identification number (mN) shown on the relum. For 

example, if you are requesting Form 1040 that 

includes SChedule C (Form 1040}, enter your SSN. 

Line 3: Enter your current address. If you use a P.O. 

box, please include it on tills line :i. 

Lino 4. Enter !he address shown on the last ·return 

flied if different from tha address entered on line 3. 

Note: If the addresses on lines 3 and 4 are different 

and you have not changed your address with the 

IRS, fffe Form 8822. Change of Address. For a business address, file Form 8822-B. Change of 

Address or Responsible Party - Business. 

Signature and date. Form 4506 must bo signed and 

dated by the taxpayer listed on &ne 1.a or 2a, The 

IRS must receive Form 4506 wilhin 120 days of lhe 

date signed by the taxpayer or It will be rejected. 

Ensure that au appllcabla tines are completed before 

signing. 

m You must check the box In the 

sigr!llltlle area lo acknowledge you 

have the aulbority lo sign and request 

t/ie infor,ru,uon. The form wYI not be 

processed and returned to you If the box is 

unchecked. 

lndivfduals. Coples of jointly filed lax returns may 

be furnished to either spouse. Only one signature is 

required. Sign Form 4506 exactly as yolJI name 

appeared on the original return. If yoo changed your 

name, also sign your current name. 

Corporations. Generally, Form 4506 can be 

signed by: (1) an officor having legal authority to bind 

Iha corporation, (2) any person designated by lhe 

board of directors or other governing body, or (3) 

any offtc.er or employee on written request by any 

prtnclpal officer.and attested lo by lhe secretary or 

other officer. A bona Ode shareholder of record 

owning 1 percent or more of the outstanding stock 

of the corporation may submit a Form 4506 but must 

provide documentation to support !he requester's 

right to receive the inlormaUon. 

Pannersll/ps. Generally, Forrn 4506 can be 

signed by any person who was a member of the 

partnership during any part of the tax period 

requested on line 7. 

All others. See section 6103(e) if the taxpayer has 

died, Is insolvent, is a dissolved corporation, or if a 

trustee. guardian, executor, receiver. or administmlor is acUng for the taxpayer. 

Note: If you are Heir at law, Next of kin, or Beneficiary you must be able to es1abtish a material 

interest In the estate or trust. 

Documentation. For entitles other than Individuals. 

you must attach the authorization document. For 

example. this could be the letter from the principal 

officer authorizing an employee of the corporation or 

the letters testamenlary aulhorlzlng an lndMdual to 

act for an estate. 

Signature bye representative. A representative 

can sign Form 4506 for a ta•payer only if this 

authority has been specifically delegated to the 

ropr-esentaUve on Form 2848, line 6a. Form 2848 

showing the delegation must be attached to Form 

4506. 

Privacy Aot and Paperwork Reduction Act 

Notice. We ask for the Information on this form to 

establish your right to gain access to the requested 

return(s} under Ille lnlerhal Revenue Code. We need 

!his informallon to properly ldentlfy the roturn(s) and 

respond to your request. If you request a copy of a 

tax return, sections 6103 and 6109 require you to 

provide this Information. lncloding your SSN or EIN, 

to process your request. If you do not provide this 

information, we may not be able to process your 

request. Providing false or fraudulent information 

may subject you to penallles. 

Routine uses of this information Include giving it to 

Iha Department of Justice for civil and criminal 

litigation, and clues, states, lhe District of Columtiia, 

and U.S. commonwealths and possessions for use 

In admlnlster1ng their tax laws. We may also 

disclose this Information to other countries under a 

tax lfeaty, to federal and state agencies to enforce 

federal nontax criminal laws. or to federal law 

enforcement and lntetllgence agencies to combat 

terrorl&m. 

You are not required lo provide the Information 

requested on a form that Is subject to the Paparwolk 

Reduction Act unless the lorm displays a valid 0MB 

control number. Books or records relating to a form 

or Its Instructions must be retained as long as their 

contents may become material In the administration 

of any Internal Revenus law. Generally, tax returns 

and return information are confldentlat. as required 

by section 6103. 

The time needed to complete and file Form 4506 

will vary depending on individual circumstances. The 

estimated avetage lime Is: Learning about the law 

or the form, 10 min.; Preparing tho form, 16 min.; 

and Copying, asaembllng, and sending !he form 

to the IRS, 20 min. 

If you have comments concerning 1he accuracy of 

these time esltmates or suggestions for making 

Form 4506 slmpl81', we would be happy to hear from 

yoo. You can write to: 

lntemaf Revenue Smvice 

Ta>< Forms ond Publications OiVision 

1111 Constitution Ave. NW, IR~526 

Washington. oc 20224. 

Do not send the form to this address. Instead. see 

Where io file on this page. 
Case 3:19-cv-00196-KC Document 84-4 *SEALED* Filed 12/03/19 Page 1 of 2 

ATTACHMENT D 
I. 

I 

Case 3:19-cv-00196-KC Document 84-4 *SEALED* Filed 12/03/19 Page 2 of 2 

CONSENT TO RELEASE FINANCIAL RECORDS 

l, _________ of _ _____ ~_, (City, 

State), do hereby direct any bank, saving and loan association, credit union, 

depository institution, finance company, commercial lending company, credit card 

processor, credit card processing entity, automated clearing house, network 

transaction processor, bank debit processing entity, automated clearing house, 

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

es_crow agent, money market or mutual fund, title company, commodity trading 

company, trustee, or person that holds, controls, or maintains custody of assets, 

wherever located, that are owned or controlled by me or at which there is an 

account of any kind upon which I am authorized to draw, and its officers, 

employees, and agents, to disclose all information and deliver copies of all 

documents of every nature in its possession or control which relate to the said 

accounts to any attorney of the Federal Trade Commission, and to give evidence 

relevant thereto, in the matter of FTC et al. v. Educare Centre Services, Inc., et al., 

No. 3: 19-cv-00196-KC, now pending in the United States District Court for the 

Western District of.Texas, and this shall be irrevocable authority for so doing. 

This direction is intended to apply to the laws of cm;mtries other than the 

United States of America which restdct or prohibit disclosure of bank or other 

financial information without the consent of the holder of the account, and shall be 

construed as consent with respect hereto, and the same shall apply to any of the 

accounts for which I may be a relevant principal. 

Dated: ------- Signature: _______ _ ____ _ 

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