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Case 8:14-cv-01033-JLS-RNB Document 203 Filed 05/29/19 Page 1 of 19 Page ID #:3642

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

FEDERAL TRADE COMMISSION,

Plaintiff,

v.

CD CAPITAL INVESTMENTS, LLC, 

et al., 

Defendants.

Case No. 8:14-cv-01033-JLS-RNB

 

STIPULATED MODIFIED 

PERMANENT INJUNCTION 

AND ORDER FOR EQUITABLE 

MONETARY RELIEF AS TO 

DEFENDANT TUAN D. DUONG

This matter comes before the Court on Plaintiff Federal Trade Commission’s 

(“FTC” or “Commission”) stipulated motion to modify the Permanent Injunction 

and Order for Equitable Monetary Relief entered on August 22, 2016 (“Original 

Final Order”) [D.E. #172]. The FTC requests that the Court modify the Original 

Final Order as to Defendant Tuan D. Duong (“Duong”). Upon due consideration, 

the Court hereby GRANTS the FTC’s motion. IT IS ORDERED as follows:

FINDINGS

1. The Commission and Defendant Duong have stipulated to the entry of this 

Modified Permanent Injunction and Order for Equitable Monetary Relief 

(“Modified Final Order”), specifically including but not limited to these 

findings. 

2. The Court has jurisdiction of this matter for purposes of modification of the

Original Final Order, among other purposes. D.E. #172 at 16 ¶ XII.

3. Defendant Tuan D. Duong received actual notice of the Original Final Order 
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on or about August 22, 2016, when the Court issued it and caused it to be 

served upon his counsel of record.

4. The Original Final Order was clear and definite. 

5. Defendant Duong did not move for clarification of the Original Final Order

after its entry. 

6. After receiving actual notice of the Original Final Order, Defendant Duong 

violated its clear and definite terms in numerous respects. 

7. First, directly or through Impetus Enterprise, Inc., Defendant Duong violated 

Paragraph I of the Original Final Order by promoting secured or unsecured 

debt relief services, directing the promotion and sale of such services, and 

assisting others engaged in promoting and selling such services. 

8. Second, in promoting, telemarketing, and selling a service, directly or 

through Impetus Enterprise, Inc., Defendant Duong misrepresented that 

consumers who pay for debt relief services would have their student loan 

payments reduced or forgiven or were likely to do so. Defendant Duong 

also assisted others in making this misrepresentation. 

9. This misrepresentation was material to consumers, false and unsubstantiated, 

and a deceptive practice. 

10. Third, Defendant Duong violated Paragraph IV of the Original Final Order 

by failing to pay $1,784,864 to the FTC within seven days of entry of the 

Original Final Order, i.e., by August 29, 2016. 

11. Fourth, Defendant Duong violated Paragraph VII of the Original Final Order

by failing to submit a sworn acknowledgment of receipt of the Original Final 

Order to the FTC within seven days of entry of the Order, i.e., by August 29, 

2016.

12. Fifth, Defendant Duong violated Paragraph VIII of the Original Final Order 

by failing to submit a sworn report disclosing his businesses’ marketing 

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activities to the FTC one year after entry of the Original Final Order, i.e., on

August 22, 2017.

13. Additionally, after the entry of the Original Final Order, Defendant Duong 

engaged in acts or practices that violated the FTC Act, 15 U.S.C. § 41 et 

seq., as well as the Telemarketing Sales Rule (“TSR”), 16 C.F.R. Part 310.

14. On November 6, 2018, the FTC filed a Complaint in this Court in the case of 

FTC v. Impetus Enterprise, Inc., Case No. 8:18-cv-01987-JLS-KES (C.D. 

Cal.) (“Complaint”), charging Defendant Duong and others with violating 

both the FTC Act and the TSR in connection with the deceptive marketing 

and sale of student loan debt relief services.

15. Defendant Duong’s acts or practices in connection with the marketing and 

telemarketing of debt relief services described in Paragraphs 8-9 above were

abusive telemarketing acts or practices that violated Section 5(a) of the FTC 

Act, 15 U.S.C. § 45(a), and Section 310.3(a)(2)(x) of the TSR, 16 C.F.R. § 

310.3(a)(2)(x), as alleged in the Complaint.

16. Moreover, in numerous instances, directly or through Impetus Enterprise, 

Inc., Defendant Duong requested and received payment of a fee or 

consideration for debt relief services before: (a) Duong or Impetus 

Enterprise, Inc. renegotiated, settled, reduced, or otherwise altered the terms 

of at least one debt pursuant to a settlement agreement, debt management 

plan, or other such valid contractual agreement executed by the customer; 

and (b) the customer made at least one payment pursuant to that settlement 

agreement, debt management plan, or other valid contractual agreement 

between the customer and the creditor.

17. Defendant Duong’s acts or practices described in Paragraph 16 above, 

challenged in the Complaint, were abusive telemarketing acts or practices 

that violated Section 310.4(a)(5)(i) of the TSR, 16 C.F.R. § 310.4(a)(5)(i), as 

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alleged in the Complaint.

18. Pursuant to Section 3(c) of the Telemarketing Act, 15 U.S.C. § 6102(c), and 

Section 18(d)(3) of the FTC Act, 15 U.S.C. § 57a(d)(3), Defendant Duong’s 

violations of the TSR constitute unfair or deceptive acts or practices in or 

affecting commerce violating Section 5(a) of the FTC Act, 15 U.S.C. § 

45(a), as alleged in the Complaint. 

19. Directly or through Impetus Enterprise, Inc., Defendant Duong’s unlawful 

marketing and sale of debt relief services resulted in at least $11,000,215.25

in injury to consumers.

20. The Original Final Order has not achieved its purpose of protecting 

consumers from Defendant Duong’s deceptive marketing practices. His 

violations of the Original Final Order, the FTC Act, and the TSR present 

sufficient changed circumstances to warrant entry of this Modified Final 

Order pursuant to Federal Rule of Civil Procedure 60(b).

21. Banning Defendant Duong from participating or Assisting Others in 

Telemarketing is necessary to protect consumers.

22. Absent modification, Defendant Duong will likely violate the Original Final 

Order and Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), in the future.

23. The equities weigh in favor of granting a modified permanent injunction, 

and that such an injunction is in the public interest.

24. Because there is no just reason for delay, the Court expressly directs entry of 

this Stipulated Modified Permanent Injunction and Order for Equitable 

Monetary Relief.

25. This Stipulated Modified Permanent Injunction and Order for Equitable 

Monetary Relief is in addition to, and not in lieu of, any other civil or 

criminal remedies that may be provided by law.

26. Defendant Duong waives and releases any claim that he may have against 

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the Commission, the Receiver, and their agents that relates to this action. 

Defendant Duong waives and releases any claim that he may have under the 

Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution 

of this action through the date of this Order, and agrees to bear his own costs 

and attorney fees.

27. Defendant Duong and the Commission waive all rights to appeal or 

otherwise challenge or contest the validity of this Order.

DEFINITIONS

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

A. “Assisting Others” includes:

1. performing customer service functions, including receiving or 

responding to consumer complaints;

2. formulating or providing, or arranging for the formulation or 

provision of, any advertising or marketing material, including any 

telephone sales script, direct mail solicitation, or the design, text, or 

use of images of any Internet website, email, or other electronic 

communication;

3. formulating or providing, or arranging for the formulation or 

provision of, any marketing support material or service, including web 

or Internet Protocol addresses or domain name registration for any 

Internet websites, affiliate marketing services, or media placement 

services;

4. providing names of, or assisting in the generation of, potential 

customers;

5. performing marketing, billing, or payment services of any kind; or

6. acting or serving as an owner, officer, director, manager, or principal 

of any entity.

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B. “Defendant” means Tuan Dinh Duong, also known as Thomas Duong or 

Thomas Dinh.

C. “Financial Product or Service” means any product, service, plan, or 

program represented, expressly or by implication, to:

1. provide any consumer, arrange for any consumer to receive, or assist 

any consumer in receiving, a loan or other extension of credit;

2. provide any consumer, arrange for any consumer to receive, or assist 

any consumer in receiving, credit, debit, or stored value cards; 

3. improve, repair, or arrange to improve or repair, any consumer’s 

credit record, credit history, or credit rating; or

4. provide advice or assistance to improve any consumer’s credit record, 

credit history, or credit rating.

D. “Person” means any individual, group, unincorporated association, limited 

or general partnership, corporation, or other business entity.

E. “Receiver” means Krista L. Freitag, whom this Court appointed as Receiver

in this case on November 13, 2018.

F. “Secured or Unsecured Debt Relief Product or Service” means: 

1. with respect to any mortgage, loan, debt, or obligation between a 

Person and one or more secured or unsecured creditors or debt 

collectors, any product, service, plan, or program represented, 

expressly or by implication, to:

a. stop, prevent, or postpone any mortgage or deed of foreclosure 

sale for a Person’s dwelling, any other sale of collateral, any 

repossession of a Person’s dwelling or other collateral, or 

otherwise save a Person’s dwelling or other collateral from 

foreclosure or repossession;

b. negotiate, obtain, or arrange a modification, or renegotiate, 

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settle, or in any way alter any terms of the mortgage, loan, debt, 

or obligation, including a reduction in the amount of interest, 

principal balance, monthly payments, or fees owed by a Person 

to a secured or unsecured creditor or debt collector;

c. obtain any forbearance or modification in the timing of 

payments from any secured or unsecured holder or servicer of 

any mortgage, loan, debt, or obligation;

d. negotiate, obtain, or arrange any extension of the period of time 

within which a Person may (i) cure his or her default on the 

mortgage, loan, debt, or obligation, (ii) reinstate his or her 

mortgage, loan, debt, or obligation, (iii) redeem a dwelling or 

other collateral, or (iv) exercise any right to reinstate the 

mortgage, loan, debt, or obligation or redeem a dwelling or 

other collateral;

e. obtain any waiver of an acceleration clause or balloon payment 

contained in any promissory note or contract secured by any 

dwelling or other collateral; or

f. negotiate, obtain, or arrange (i) a short sale of a dwelling or 

other collateral, (ii) a deed-in-lieu of foreclosure, or (iii) any 

other disposition of a mortgage, loan, debt, or obligation other 

than a sale to a third party that is not the secured or unsecured 

loan holder.

The foregoing shall include any manner of claimed assistance, 

including auditing or examining a Person’s application for the 

mortgage, loan, debt, or obligation.

2. With respect to any loan, debt, or obligation between a Person and one 

or more unsecured creditors or debt collectors, any product, service, 

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plan, or program represented, expressly or by implication, to: 

a. repay one or more unsecured loans, debts, or obligations; or

b. combine unsecured loans, debts, or obligations into one or more 

new loans, debts, or obligations.

G. “Telemarketing” means any plan, program, or campaign which is 

conducted to induce the purchase of goods or services by use of one or more 

telephones, and which involves a telephone call, whether or not covered by 

the TSR.

ORDER

I. MODIFICATION OF ORIGINAL FINAL ORDER

IT IS THEREFORE ORDERED that, solely as to Defendant Duong, this 

Modified Final Order supersedes the Original Final Order, i.e., the Permanent 

Injunction and Order for Equitable Monetary Relief as to Defendants CD Capital 

Investments, LLC, CD Capital, LLC, GDS Information Services, Inc., Christian D. 

Quezada, and Tuan D. Duong, entered on August 22, 2016 [D.E. #172], except for 

Sections IV (“Restitution”) and V (“Additional Monetary Provisions”) thereof, 

which shall remain in full force and effect. The entirety of the Original Final 

Order shall remain in full force and effect as to CD Capital Investments, LLC, CD 

Capital, LLC, GDS Information Services, Inc., and Christian D. Quezada.

II. BAN ON TELEMARKETING

IT IS FURTHER ORDERED that Defendant Duong is permanently 

restrained and enjoined from participating or Assisting Others in Telemarketing, 

whether directly or through an intermediary.

III. BAN ON SECURED AND UNSECURED 

DEBT RELIEF PRODUCTS AND SERVICES

IT IS FURTHER ORDERED that Defendant Duong is permanently

restrained and enjoined from advertising, marketing, promoting, offering for sale, 

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or selling, or Assisting Others in the advertising, marketing, promoting, offering 

for sale, or selling, of any Secured or Unsecured Debt Relief Product or Service.

IV. PROHIBITION AGAINST MISREPRESENTATIONS 

RELATING TO FINANCIAL PRODUCTS AND SERVICES

IT IS FURTHER ORDERED that Defendant Duong, Defendant’s agents, 

employees, and attorneys, and all other Persons in active concert or participation 

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

or indirectly, in connection with the advertising, marketing, promoting, offering for 

sale, or selling of any Financial Product or Service, are permanently restrained and 

enjoined from misrepresenting, or Assisting Others in misrepresenting, expressly 

or by implication:

A. the terms or rates that are available for any loan or other extension of credit, 

including:

1. closing costs or other fees;

2. the payment schedule, monthly payment amount(s), any 

balloon 

payment, or other payment terms; 

3. the interest rate(s), percentage rate(s), or finance charge(s), and 

whether they are fixed or adjustable; 

4. the loan amount, credit amount, draw amount, or outstanding balance; 

the loan term, draw period, or maturity; or any other term of credit; 

5. the amount of funds to be disbursed to the borrower out of the 

proceeds, or the amount of funds to be disbursed on behalf of the 

borrower to any third parties;

6. whether any specified minimum payment amount covers both interest 

and principal, and whether the credit has or can result in negative 

amortization; or

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7. that the credit does not have a prepayment penalty or whether 

subsequent refinancing may trigger a prepayment penalty and/or other 

fees; 

B. the savings associated with the loan or other extension of credit;

C. the ability to improve or otherwise affect a consumer’s credit record, credit 

history, credit rating, or ability to obtain credit, including that a consumer’s 

credit record, credit history, credit rating, or ability to obtain credit can be 

improved by permanently removing current, accurate negative information 

from the consumer’s credit record or history; 

D. that a consumer will receive legal representation; 

E. its total costs; any material restrictions, limitations, or conditions; or any 

material aspect of its performance, efficacy, nature, or central 

characteristics; or

F. any other fact material to consumers concerning any good or service.

V. PROHIBITION AGAINST MISREPRESENTATIONS 

RELATING TO ANY PRODUCTS OR SERVICES

IT IS FURTHER ORDERED that Defendant Duong, Defendant’s agents, 

employees, and attorneys, and all other Persons in active concert or participation 

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

or indirectly, in connection with the advertising, marketing, promoting, offering for 

sale, or selling of any product, service, plan, or program, are permanently 

restrained and enjoined from misrepresenting, or Assisting Others in 

misrepresenting, expressly or by implication:

A. any material aspect of the nature or terms of any refund, cancellation, 

exchange, or repurchase policy, including the likelihood of a consumer 

obtaining a full or partial refund, or the circumstances in which a full or 

partial refund will be granted to the consumer;

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B. that any Person is affiliated with, endorsed or approved by, or otherwise 

connected to any other Person; government entity; public, non-profit, or 

other non-commercial program; or any other program; 

C. the nature, expertise, position, or job title of any Person who provides any 

product, service, plan, or program;

D. that any Person providing a testimonial has purchased, received, or used the 

product, service, plan, or program; 

E. that the experience represented in a testimonial of the product, service, plan, 

or program represents the Person’s actual experience resulting from the use 

of the product, service, plan, or program under the circumstances depicted in 

the advertisement; 

F. its total costs; any material restrictions, limitations, or conditions; or any 

material aspect of its performance, efficacy, nature, or central 

characteristics; or

G. any other fact material to consumers concerning any good or service. 

VI. PROHIBITION AGAINST UNSUBSTANTIATED CLAIMS

IT IS FURTHER ORDERED that Defendant Duong, Defendant’s agents, 

employees, and attorneys, and all other Persons in active concert or participation 

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

or indirectly, in connection with the sale of any product or service, are permanently 

restrained and enjoined from making any representation, expressly or by 

implication, about the benefits, performance, or efficacy of any product or service, 

unless the representation is non-misleading, and, at the time such representation is 

made, Defendant possesses and relies upon competent and reliable evidence that is 

sufficient in quality and quantity based on standards generally accepted in the 

relevant fields, when considered in light of the entire body of relevant and reliable

evidence, to substantiate that the representation is true.

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VII. MONETARY JUDGMENT

IT IS FURTHER ORDERED that judgment in the amount of Eleven Million 

Two Hundred and Fifteen Dollars and Twenty-Five Cents ($11,000,215.25) is 

entered in favor of the Commission against Defendant Duong as compensatory 

contempt relief. Defendant Duong is ordered to pay the FTC this amount 

immediately upon the entry of this Order.

VIII. ADDITIONAL MONETARY PROVISIONS

IT IS FURTHER ORDERED that: 

A. Defendant relinquishes dominion and all legal and equitable right, title, and 

interest in all assets transferred pursuant to this Order and may not seek the 

return of any assets.

B. The facts alleged in the Complaint in the case of FTC v. Impetus Enterprise, 

Inc., Case No. 8:18-cv-01987-JLS-KES (C.D. Cal.), will be taken as true, 

without further proof, in any subsequent civil litigation by or on behalf of 

the Commission, including in a proceeding to enforce its rights to any 

payment or monetary judgment pursuant to this Order, such as a 

nondischargeability complaint in any bankruptcy case.

C. The facts alleged in the Complaint in the case of FTC v. Impetus Enterprise, 

Inc., Case No. 8:18-cv-01987-JLS-KES (C.D. Cal.) establish all elements 

necessary to sustain an action by the Commission pursuant to Section

523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this 

Order will have collateral estoppel effect for such purposes. 

D. Defendant acknowledges that his Taxpayer Identification Numbers (Social 

Security Numbers or Employer Identification Numbers), which Defendant

must submit to the Commission, may be used for collecting and reporting on 

any delinquent amount arising out of this Order, in accordance with 31 

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U.S.C. §7701.

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

into a fund administered by the Commission or its designee to be used for 

equitable relief, including consumer redress and any attendant expenses for 

the administration of any redress fund. If a representative of the 

Commission decides that direct redress to consumers is wholly or partially 

impracticable or money remains after redress is completed, the Commission 

may apply any remaining money for such other equitable relief (including 

consumer information remedies) as it determines to be reasonably related to 

Defendant’s practices alleged in the Complaint. Any money not used for 

such equitable relief is to be deposited to the U.S. Treasury as disgorgement. 

Defendant has no right to challenge any actions the Commission or its 

representatives may take pursuant to this Subsection.

F. The asset freeze as to Defendant Duong existing pursuant to the Court’s 

April 2, 2019 Superseding Second Preliminary Injunction is dissolved. 

IX. CUSTOMER INFORMATION

IT IS FURTHER ORDERED that Defendant Duong, Defendant’s agents, 

employees, and attorneys, and all other Persons in active concert or participation 

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

or indirectly, are permanently restrained and enjoined from directly or indirectly: 

A. failing to provide sufficient customer information to enable the Commission 

to efficiently administer consumer redress. If a representative of the 

Commission requests in writing any information related to redress, 

Defendant must provide it, in the form prescribed by the Commission, 

within 14 days. 

B. disclosing, using, or benefitting from customer information, including the 

name, address, telephone number, email address, social security number, 

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other identifying information, or any data that enables access to a customer’s 

account (including a credit card, bank account, or other financial account), 

that Defendant Duong or any of his co-defendants obtained prior to entry of 

this Order in connection with the marketing and sale of debt relief services; 

and 

C. failing to destroy such customer information in all forms in their possession, 

custody, or control within 30 days after receipt of written direction to do so 

from a representative of the Commission. 

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

may be disclosed, to the extent requested by a government agency or required by 

law, regulation, or court order. 

X. COOPERATION

IT IS FURTHER ORDERED that Defendant Duong must fully cooperate 

with representatives of the Commission and the Receiver in this case and in any 

investigation related to or associated with the transactions or the occurrences that 

are the subject of the Complaint. Defendant Duong must provide truthful and 

complete information, evidence, and testimony. Defendant Duong must appear

and cause his employees, representatives, or agents to appear for interviews,

discovery, hearings, trials, and any other proceedings that a Commission 

representative may reasonably request upon 5 days written notice, or other 

reasonable notice, at such places and times as a Commission representative may 

designate, without the service of a subpoena.

XI. ORDER ACKNOWLEDGMENT

IT IS FURTHER ORDERED that Defendant Duong obtain 

acknowledgments of receipt of this Order:

A. within 7 days of entry of this Order, Defendant Duong must submit to the 

Commission an acknowledgment of receipt of this Order sworn under 

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penalty of perjury.

B. for 20 years after entry of this Order, Defendant Duong, for any business 

that he, individually or collectively with any other co-defendants in this case, 

is the majority owner or controls directly or indirectly, must deliver a copy 

of this Order to: 

1. all principals, officers, directors, and LLC managers and members; 

2. all employees having managerial responsibilities for promoting or 

offering for sale any good or service, and all agents and 

representatives who participate in promoting or offering for sale any 

good or service; and 

3. any business entity resulting from any change in structure as set forth 

in the Section titled Compliance Reporting. Delivery must occur 

within 7 days of entry of this Order for current Personnel. For all 

others, delivery must occur before they assume their responsibilities.

C. In any other business, such as one in which Defendant Duong is an 

employee without any ownership or control, Defendant must deliver a copy 

of this Order to all principals and managers of the business before 

participating in promoting or offering for sale any good or service;

D. from each individual or entity to which Defendant Duong delivered a copy 

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

acknowledgment of receipt of this Order.

XII. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Defendant Duong make timely 

submissions to the Commission:

A. One year after entry of this Order, Defendant Duong must submit a 

compliance report, sworn under penalty of perjury:

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

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address and telephone number, as designated points of contact, which 

representatives of the Commission may use to communicate with 

Defendant; (b) identify all of Defendant’s businesses by all of their 

names, telephone numbers, and physical, postal, email, and Internet 

addresses; (c) describe the activities of each business, including the 

goods and services offered, the means of advertising, marketing, and 

sales, and the involvement of any co-defendants in this case (which 

Defendant must describe if he knows or should know due to his own 

involvement); (d) describe in detail whether and how Defendant is in 

compliance with each Section of this Order; and (e) provide a copy of 

each Order Acknowledgment obtained pursuant to this Order, unless 

previously submitted to the Commission. 

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

all physical, postal, email and Internet addresses, including all 

residences; (b) identify all business activities, including any business 

for which Defendant performs services whether as an employee or 

otherwise and any entity in which Defendant has any ownership 

interest; and (c) describe in detail Defendant’s involvement in each 

such business, including title, role, responsibilities, participation, 

authority, control, and any ownership.

B. For 20 years after entry of this Order, Defendant must submit a compliance 

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

following: 

1. Defendant must report any change in: (a) any designated point of 

contact; or (b) the structure of any entity that Defendant has any 

ownership interest in or controls directly or indirectly that may affect 

compliance obligations arising under this Order, including: creation, 

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merger, sale, or dissolution of the entity or any subsidiary, parent, or 

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

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

including aliases or fictitious name, or residence address; or (b) title or 

role in any business activity, including any business for which 

Defendant performs services whether as an employee or otherwise 

and any entity in which Defendant has any ownership interest, and 

identify the name, physical address, and any Internet address of the 

business or entity.

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

bankruptcy petition, insolvency proceeding, or similar proceeding by or 

against him within 14 days of its filing.

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

penalty of perjury must be true and accurate and comply with 28 U.S.C. § 

1746, such as by concluding: “I declare under penalty of perjury under the 

laws of the United States of America that the foregoing is true and correct. 

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

applicable), and signature.

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

submissions to the Commission pursuant to this Order must be emailed to 

DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) 

to: Associate Director for Enforcement, Bureau of Consumer Protection, 

Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, 

DC 20580. The subject line must begin: FTC v. Duong, x140035.

XIII. RECORDKEEPING

IT IS FURTHER ORDERED that Defendant Duong must create certain 

records for 20 years after entry of the Order, and retain each such record for 5 

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years. Specifically, for any business that Defendant, individually or collectively 

with any other co-defendants in this case, is a majority owner or controls directly 

or indirectly, must create and retain the following records:

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

B. Personnel records showing, for each Person providing services, whether as 

an employee or otherwise, that Person’s: name; addresses; telephone 

numbers; job title or position; dates of service; and (if applicable) the reason 

for termination;

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

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

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

this Order, including all submissions to the Commission; and

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

XIV. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendant

Duong’s compliance with this Order:

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

Commission, Defendant Duong must: submit additional compliance reports 

or other requested information, which must be sworn under penalty of 

perjury; appear for depositions; and produce documents for inspection and 

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

further leave of court, using any of the procedures prescribed by Federal 

Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 

34, 36, 45, and 69.

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

communicate directly with Defendant. Defendant must permit 

representatives of the Commission to interview any employee or other 

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Person affiliated with Defendant who has agreed to such an interview. The 

Person interviewed may have counsel present.

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

its representatives as consumers, suppliers, or other individuals or entities, to 

Defendant or any individual or entity affiliated with Defendant, without the 

necessity of identification or prior notice. Nothing in this Order limits the 

Commission’s lawful use of compulsory process, pursuant to Sections 9 and 

20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.

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

consumer reporting agency must furnish consumer reports concerning 

Defendant Duong, pursuant to Section 604(1) of the Fair Credit Reporting 

Act, 15 U.S.C. §1681b(a)(1).

XV. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of this 

matter for purposes of construction, modification, and enforcement of this Order.

IT IS SO ORDERED. 

Date: May 29, 2019

 __________________________________

 THE HONORABLE JOSEPHINE L. STATON

 UNITED STATES DISTRICT JUDGE

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