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Case 2:18-cv-00030-JCM-BNW Document 320 Filed 12/05/19 Page 1 of 29 

ALDEN F. ABBOTT 

General Counsel 

GREGORY A. ASHE 

JASON SCHALL 

Federal Trade Commission 

600 Pennsylvania Avenue NW 

Washington, DC 20580 

Telephone: 202-326-3719 (Ashe) 

Telephone: 202-326-2251 (Schall) 

Facsimile: 202-326-3768 

Email: gashe@ftc.gov, jschall@ftc.gov 

NICHOLAS A. TRUTANICH 

United States Attorney 

BLAINE T. WELSH 

Assistant United States Attorney 

Nevada Bar No. 4790 

501 Las Vegas Blvd. South, Suite 1100 

Las Vegas, Nevada 89101 

Phone: (702) 388-6336 

Facsimile: (702) 388-6787 

Attorneys for Plaintiff 

UNITED STATES DISTRICT COURT 

DISTRICT OF NEVADA 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

CONSUMER DEFENSE, LLC, et al., 

Defendants. 

Case No. 2:18-cv-00030-JCM-BNW 

[proposed] 

ORDER FOR PERMANENT 

INJUNCTION AND MONETARY 

JUDGMENT 

Plaintiff, Federal Trade Commission (“FTC”), commenced this civil action on January 8, 

2018, by filing its Complaint (ECF No. 1) seeking a permanent injunction and other equitable 

relief pursuant to Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), and the 2009 Omnibus 

Appropriations Act, Public Law 111-8, Section 626, 123 Stat. 524, 678 (Mar. 11, 2009), as 

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clarified by the Credit Card Accountability Responsibility and Disclosure Act of 2009, Public 

Law 111-24, Section 511, 123 Stat. 1734, 1763-64 (May 22, 2009), and amended by the DoddFrank Wall Street Reform and Consumer Protection Act, Public Law 111-203, Section 1097, 124 

Stat. 1376, 2102-03 (July 21, 2010), 12 U.S.C. § 5538). On motion by the FTC, on January 10, 

2018, the Court entered an ex parte temporary restraining order with asset freeze, appointment of 

a receiver, and other equitable relief. (ECF No. 12.) On February 20, 2018, after a hearing held 

on February 15, 2018, the Court entered a preliminary injunction continuing the terms of the 

temporary restraining order. (ECF No. 55.) On July 15, 2019, the FTC filed its motion for 

summary judgment against Defendants. 

This Court, having considered the arguments, memoranda and exhibits filed in support of 

the FTC’s motion for summary judgment, and all other pleadings and files in this action, and 

now being fully advised in the premises, hereby GRANTS the FTC’s motion for summary 

judgment and makes the following findings of law and fact: 

FINDINGS OF LAW AND FACT 

1. This is an action by the FTC instituted under Section 13(b) of the FTC Act, 15 U.S.C. § 

53(b), and the 2009 Omnibus Appropriations Act, Public Law 111-8, Section 626, 123 Stat. 

524, 678 (Mar. 11, 2009), as clarified by the Credit Card Accountability Responsibility and 

Disclosure Act of 2009, Public Law 111-24, Section 511, 123 Stat. 1734, 1763-64 (May 22, 

2009), and amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, 

Public Law 111-203, Section 1097, 124 Stat. 1376, 2102-03 (July 21, 2010), 12 U.S.C. § 

5538). The Complaint seeks both permanent injunctive relief and disgorgement for 

Defendants’ deceptive and unlawful acts or practices in connection with the marketing and 

sale of mortgage assistance relief services. 

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2. The FTC has the authority under Section 13(b) of the FTC Act to seek the relief it has 

requested, and the Complaint states a claim upon which relief can be granted against 

Defendants. 

3. This Court has jurisdiction over the subject matter of this case and personal jurisdiction over 

Defendants pursuant to 28 U.S.C. §§ 1331, 1337(a), and 1345, and 15 U.S.C. §§ 45(a) and 

53(b). This action arises under 15 U.S.C. § 45(a). 

4. Venue in the District of Nevada is proper under 15 U.S.C. § 53(b) and 28 U.S.C. §§ 1391(b) 

and (c). 

5. The FTC is an independent agency of the United States Government created by statute. 15 

U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), which 

prohibits unfair or deceptive acts or practices in or affecting commerce. Pursuant to 12 

U.S.C. § 5538, the FTC also enforces Regulation O, 12 C.F.R. Part 1015, which requires 

mortgage assistance relief services providers to make certain disclosures, prohibits certain 

misrepresentations, and generally prohibits the collection of an advance fee. Section 13(b) of 

the FTC Act, 15 U.S.C. § 53(b), and § 626, 123 Stat. 678, as clarified by § 511, 123 Stat. 

1763-64, and amended by § 1097, 124 Stat. 2102-03, 12 U.S.C. § 5538, authorize the FTC, 

through its own attorneys, to initiate federal district court proceedings to enjoin violations of 

the FTC Act and Regulation O and to secure such equitable relief as may be appropriate in 

each case, including rescission or reformation of contracts, restitution, the refund of monies 

paid, and the disgorgement of ill-gotten monies. 

6. Defendant Consumer Defense, LLC (Nevada) is a Nevada limited liability company and 

transacts or has transacted business in this district and throughout the United States. 

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7. Defendant Consumer Link, Inc. is a Nevada corporation and transacts or has transacted 

business in this district and throughout the United States. 

8. Defendant Consumer Defense, LLC (Utah) is a Utah limited liability company and transacts 

or has transacted business in this district and throughout the United States. 

9. Defendant Preferred Law, PLLC is a Utah professional limited liability company and 

transacts or has transacted business in this district and throughout the United States. 

10. Defendant American Home Loan Counselors is a Utah corporation and transacts or has 

transacted business in this district and throughout the United States. 

11. Defendant Consumer Defense Group, LLC is a Utah limited liability company and transacts 

or has transacted business in this district and throughout the United States. 

12. Defendant American Home Loans, LLC is a Utah limited liability company and transacts or 

has transacted business in this district and throughout the United States. 

13. Defendant AM Property Management, LLC is a Utah limited liability company and transacts 

or has transacted business in this district and throughout the United States. 

14. Defendant FMG Partners, LLC is a Utah limited liability company and transacts or has 

transacted business in this district and throughout the United States. 

15. Defendant Brown Legal, Inc. is a Utah corporation and transacts or has transacted business in 

this district and throughout the United States. 

16. Defendant Zinly, LLC is a Utah limited liability company and transacts or has transacted 

business in this district and throughout the United States 

17. At all times material to this Complaint, acting alone or in concert with others, Defendant 

Jonathan Hanley has formulated, directed, controlled, had the authority to control, or 

participated in the acts and practices of Defendants. He had actual knowledge of the 

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violative acts and practices set forth in Findings 22–38 below. Defendant Jonathan Hanley 

transacts or has transacted business in this district and throughout the United States. 

18. At all times material to this Complaint, acting alone or in concert with others, Defendant 

Sandra Hanley has formulated, directed, controlled, had the authority to control, or 

participated in the acts and practices of Defendants. She had actual knowledge of the 

violative acts and practices set forth in Findings 22–38 below. Defendant Sandra Hanley 

transacts or has transacted business in this district and throughout the United States. 

19. Defendants Consumer Defense, LLC (Nevada), Consumer Link, Inc., Consumer Defense, 

LLC (Utah), Preferred Law, PLLC, American Home Loan Counselors, Consumer Defense 

Group, LLC, American Home Loans, LLC, AM Property Management, LLC, FMG Partners, 

LLC, Brown Legal, Inc., and Zinly, LLC have operated as a common enterprise while 

engaging in the deceptive and unlawful acts and practices set forth in Findings 22–38 below. 

Defendants have conducted the business practices described below through an interrelated 

network of companies that have common ownership, managers, business functions, and that 

commingle funds. Because Defendants have operated as a common enterprise, each of them 

is jointly and severally liable for the acts and practices set forth in Findings 22–38 below. 

20. Defendant Jonathan Hanley has formulated, directed, controlled, had the authority to control, 

or participated in the acts and practices of the Corporate Defendants that constitute the 

common enterprise. 

21. Defendant Sandra Hanley has formulated, directed, controlled, had the authority to control, 

or participated in the acts and practices of the Corporate Defendants that constitute the 

common enterprise. 

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22. The activities of Defendants are in or affecting commerce, as defined in Section 4 of the FTC 

Act, 15 U.S.C. § 44. 

23. Since at least 2011, Defendants have marketed mortgage assistance relief services online and 

through telemarketing. Defendants have preyed on financially distressed homeowners by 

luring them into signing contracts for mortgage assistance relief services with promises that 

Defendants will modify consumers’ mortgage loans to make their payments more affordable. 

Defendants have touted a perfect or nearly perfect track record of success in obtaining 

modifications, including with particular lenders, and in many instances have provided a 

guarantee that they will not fail to obtain modifications for their customers. Defendants have 

often claimed that these modifications will reduce homeowners’ interest rates and monthly 

payments by substantial amounts. 

24. Defendants have typically charged $3,900 in monthly installments of $650, depending on 

how much the consumer is willing to pay. Defendants have explicitly told consumers that 

they will not start working on their files until they receive payment. Defendants have 

charged these fees before they have obtained any modification or settlement offers from 

lenders and consumers have agreed to such offers. 

25. In numerous instances, Defendants have failed to obtain any relief for their customers. In 

numerous instances, consumers have learned from their lenders that Defendants failed to 

provide complete modification documents, submitted irrelevant requests for information that 

would not lead to getting a modification, or never even contacted the lenders at all. Many 

consumers have incurred substantial interest charges and other penalties from paying 

Defendants instead of their mortgages, and some have fallen into foreclosure and lost their 

homes. 

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26. In numerous instances, in connection with the advertising, marketing, promotion, offering for 

sale or sale or performance of mortgage assistance relief services, Defendants have 

represented, directly or indirectly, expressly or by implication, that Defendants generally will 

obtain mortgage loan modifications for consumers that will make their payments 

substantially more affordable, substantially lower their interest rates, or help them avoid 

foreclosure. In truth and in fact, in numerous instances in which Defendants have made these 

representations, such representations were false or not substantiated at the time Defendants 

made them. Therefore, the making of these representations constitutes a deceptive act or 

practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

27. In numerous instances, in connection with the advertising, marketing, promotion, offering for 

sale or sale of mortgage assistance relief services, Defendants have represented, directly or 

indirectly, expressly or by implication, that Defendants are affiliated with, endorsed or 

approved by, or are otherwise associated with the maker, holder, or servicer of the 

consumer’s dwelling loan, including claiming that Defendants have a special relationship or 

special agreements with the maker, holder, or servicer of the consumer’s dwelling loan. In 

truth and in fact, in numerous instances in which Defendants have made these 

representations, Defendants were not affiliated with, endorsed or approved by, or were 

otherwise associated with the maker, holder, or servicer of the consumer’s dwelling loan. 

Therefore, Defendants’ representations are false and misleading and constitute a deceptive 

act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

28. In numerous instances, in connection with the advertising, marketing, promotion, offering for 

sale or sale of mortgage assistance relief services, Defendants have represented, directly or 

indirectly, expressly or by implication, that Defendants are part of or affiliated with, endorsed 

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or approved by, or are otherwise associated with the federal government or federal 

government programs. In truth and in fact, in numerous instances in which Defendants have 

made these representations, Defendants were not part of or affiliated with, endorsed or 

approved by, or were otherwise associated with the federal government or federal 

government programs. Therefore, Defendants’ representations are false and misleading and 

constitute a deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 

45(a). 

29. In numerous instances, in connection with the advertising, marketing, promotion, offering for 

sale or sale of mortgage assistance relief services, Defendants have represented, directly or 

indirectly, expressly or by implication, that the consumer is not obligated to, or should not, 

make scheduled periodic payments or any other payments pursuant to the terms of the 

consumer’s dwelling loan. In truth and in fact, in numerous instances in which Defendants 

have made these representations, the consumer was obligated to make scheduled periodic 

payments or any other payments pursuant to the terms of the consumer’s dwelling loan. 

Therefore, Defendants’ representations are false and misleading and constitute a deceptive 

act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

30. In numerous instances, in the course of providing, offering to provide, or arranging for others 

to provide mortgage assistance relief services, Defendants have asked for or received 

payment before consumers have executed a written agreement between the consumer and the 

loan holder or servicer that incorporates the offer obtained by Defendants, in violation of 

Section 1015.5(a) of Regulation O, 12 C.F.R. § 1015.5(a). 

31. In numerous instances, in the course of providing, offering to provide, or arranging for others 

to provide mortgage assistance relief services, Defendants have represented, expressly or by 

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implication, that a consumer cannot or should not contact or communicate with his or her 

lender or servicer, in violation of Section 1015.3(a) of Regulation O, 12 C.F.R. § 1015.3(a). 

32. In numerous instances, in the course of providing, offering to provide, or arranging for others 

to provide mortgage assistance relief services, Defendants have misrepresented, expressly or 

by implication, material aspects of their services, including, but not limited to, Defendants’ 

likelihood of obtaining mortgage loan modifications for consumers that will make their 

payments substantially more affordable, substantially reduce their interest rates, and avoid 

foreclosure, in violation of Section 1015.3(b) of Regulation O, 12 C.F.R. § 1015.3(b). 

33. In numerous instances, in the course of providing, offering to provide, or arranging for others 

to provide mortgage assistance relief services, Defendants have misrepresented, expressly or 

by implication, material aspects of their services, including, but not limited to, Defendants 

are affiliated with, endorsed or approved by, or otherwise associated with (i) the United 

States government, (ii) any governmental homeowner assistance plan, (iii) any Federal 

government agency, unit, or department; or (iv) the maker, holder, or servicer of the 

consumer’s dwelling loan, in violation of Section 1015.3(b) of Regulation O, 12 C.F.R. 

§ 1015.3(b). 

34. In numerous instances, in the course of providing, offering to provide, or arranging for others 

to provide mortgage assistance relief services, Defendants have misrepresented, expressly or 

by implication, material aspects of their services, including, but not limited to, the 

consumer’s obligation to make scheduled periodic payments or any other payments pursuant 

to the terms of the consumer’s dwelling loan, in violation of Section 1015.3(b) of Regulation 

O, 12 C.F.R. § 1015.3(b). 

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35. In numerous instances, in the course of providing, offering to provide, or arranging for others 

to provide mortgage assistance relief services, Defendants have failed to clearly and 

prominently make the following disclosures in all general commercial communications: (a) 

“[Name of Company] is not associated with the government, and our service is not approved 

by the government or your lender,” and (b) “Even if you accept this offer and use our service, 

your lender may not agree to change your loan,” in violation of Section 1015.4(a) of 

Regulation O, 12 C.F.R. § 1015.4(a). 

36. In numerous instances, in the course of providing, offering to provide, or arranging for others 

to provide mortgage assistance relief services, Defendants have failed to clearly and 

prominently make the following disclosures in all consumer-specific commercial 

communications: (a) “You may stop doing business with us at any time. You may accept or 

reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject 

the offer, you do not have to pay us. If you accept the offer, you will have to pay us [insert 

amount or method for calculating the amount] for our services,” (b) “[Name of company] is 

not associated with the government, and our service is not approved by the government or 

your lender,” and (c) “Even if you accept this offer and use our service, your lender may not 

agree to change your loan,” in violation of Section 1015.4(b) of Regulation O, 12 C.F.R. 

§ 1015.4(b). 

37. In numerous instances, in the course of providing, offering to provide, or arranging for others 

to provide mortgage assistance relief services, Defendants have failed to clearly and 

prominently make the following disclosures in all general and consumer-specific commercial 

communications: “If you stop paying your mortgage, you could lose your home and damage 

your credit,” in violation of Section 1015.4(c) of Regulation O, 12 C.F.R. § 1015.4(c). 

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38. Defendants have received revenues less refunds and chargebacks of at least $18,428,370 

since January 8, 2013, as a direct result of their violations of Section 5 of the FTC Act and 

Regulation O. 

39. Consumers have suffered and will continue to suffer substantial injury as a result of 

Defendants’ violations of the FTC Act of Regulation O. In addition, Defendants have been 

unjustly enriched as a result of their unlawful acts or practices. Absent injunctive relief by 

this Court, Defendants are likely to continue to injure consumers, reap unjust enrichment, and 

harm the public interest. 

40. Based on the record before this Court, the Court finds that there is no genuine issue as to any 

material fact, and the FTC is entitled to judgment as a matter of law against Defendants 

pursuant to Federal Rule of Civil Procedure 56. 

41. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court to grant injunctive and 

such other relief as the Court may deem appropriate to halt and redress violations of any 

provision of law enforced by the FTC. The Court, in the exercise of its equitable jurisdiction, 

may award ancillary relief, including rescission or reformation of contracts, restitution, the 

refund of monies paid, and the disgorgement of ill-gotten monies, to prevent and remedy any 

violation of any provision of law enforced by the FTC. 

42. This Court is persuaded that the danger of future violations by Defendants justifies the 

issuance of injunctive relief. Specifically, it is proper in this case to issue a permanent 

injunction that: (a) bans Defendants from marketing or selling any secured or unsecured debt 

relief product or service; (b) prohibits Defendants from making various misrepresentations 

regarding financial-related products and services or any other product or service; (c) requires 

Defendants to have substantiation for claims regarding any product or service; (d) prohibits 

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Defendants from disclosing, using, or benefitting from customer information of any person 

that any Defendant obtained before the entry of this Order in connection with their marketing 

and sale of mortgage assistance relief services; and (e) provides such other ancillary relief as 

is necessary to assist the FTC and the Court in monitoring Defendants’ compliance with such 

a permanent injunction 

43. It is proper in this case to enter a monetary judgment against Defendants, jointly and 

severally, for their violations of Section 5 of the FTC Act and Regulation O. The FTC is 

entitled to judgment against Defendants, jointly and severally, in the amount of $18,428,370, 

the total gross revenues received by them less refunds and chargebacks, even though this 

amount may exceed their unjust enrichment. 

44. This action and the relief awarded herein are in addition to, and not in lieu of, other remedies 

as may be provided by law, including both civil and criminal remedies. 

45. Pursuant to Federal Rule of Civil Procedure 65(d) the provisions of this Order are binding 

upon each Defendant, their successors and assigns, and their officers, agents, employees and 

attorneys, and upon those persons or entities in active concert or participation with them who 

receive actual notice of this Order by personal service or otherwise. 

46. Entry of this Order is in the public interest. 

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; 

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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 

B. “Defendants” means the Individual Defendants and the Corporate Defendants, individually, 

collectively, or in any combination. “Corporate Defendants” means Consumer Defense, 

LLC (a Nevada LLC), Consumer Link, Inc., Consumer Defense, LLC (a Utah LLC), 

Preferred Law, PLLC, American Home Loan Counselors, Consumer Defense Group, LLC 

(f/k/a Modification Review Board, LLC), American Home Loans, LLC, AM Property 

Management, LLC, FMG Partners, LLC, Brown Legal, Inc., and Zinly, LLC, and their 

successors and assigns and any other entity marketing or selling Secured or Unsecured Debt 

Relief Products or Services that is owned or controlled, in whole or in part, by any 

Defendant. “Individual Defendants” means Jonathan P. Hanley and Sandra X. Hanley, and 

any other names by which they might be known. 

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

expressly or by implication, to: 

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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 a natural person, organization, or other legal entity, including a corporation, 

partnership, proprietorship, association, cooperative, or any other group or combination 

acting as an entity. 

E. “Receivership Entities” means the Corporate Defendants, as well as any other business 

related to Defendants’ mortgage assistance relief services business and which the Receiver 

has reason to believe is owned or controlled in whole or in part by any Defendant, including 

but not limited to any other mortgage assistance relief services business operated by the 

Individual Defendants. 

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 

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collateral, or otherwise save a Person’s dwelling or other collateral from foreclosure 

or repossession; 

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

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

creditors or debt collectors, any product, service, 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. 

ORDER 

BAN ON SECURED AND UNSECURED DEBT RELIEF PRODUCTS AND SERVICES 

I. IT IS THEREFORE ORDERED that Defendants are permanently restrained and 

enjoined from advertising, marketing, promoting, offering for sale, 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. 

PROHIBITED MISREPRESENTATIONS REGARDING FINANCIAL PRODUCTS AND 

SERVICES 

II. IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, 

and attorneys, and all other Persons in active concert or participation with any of them, 

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

connection with 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; 

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

or other payment terms; 

3. the interest rate(s), annual 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 cash to be disbursed to the borrower out of the proceeds, or 

the amount of cash 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 

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 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; 

C. that a consumer will receive legal representation; or 

D. any other fact material to consumers concerning any good or service, such as: the 

total costs; any material restrictions, limitations, or conditions; or any material 

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

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PROHIBITED MISREPRESENTATIONS REGARDING ANY PRODUCTS OR 

SERVICE 

III. IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, 

and attorneys, and all other Persons in active concert or participation with any of them, 

who receive actual notice of this Order, 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; 

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. the Person who will provide any product, service, plan, or program to any 

consumer; 

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

product, service, plan, or program; 

F. 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 

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

advertisement; or 

G. any other fact material to consumers concerning any good or service, such as: the 

total costs; any material restrictions, limitations, or conditions; or any material 

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

PROHIBITION AGAINST UNSUBSTANTIATED CLAIMS 

IV. IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, 

and attorneys, and all other Persons in active concert or participation with any of them, 

who receive actual notice of this Order, in connection with the sale of any product or 

service, are permanently restrained and enjoined from making any representation or 

Assisting Others in making any representation, expressly or by implication, about the 

benefits, performance, or efficacy of such product or service, unless the representation is 

non-misleading, and, at the time such representation is made, Defendants possess and 

rely 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. 

CUSTOMER INFORMATION 

V. IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, 

and attorneys, and all other Persons in active concert or participation with any of them, 

who receive actual notice of this Order, are permanently restrained and enjoined from 

directly or indirectly: 

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A. failing to provide sufficient customer information to enable the FTC to efficiently 

administer consumer redress. If a representative of the FTC requests in writing any 

information related to redress, Defendants must provide it, in the form prescribed by the 

FTC, within 14 days; 

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

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

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

account, or other financial account), that any Defendant obtained prior to entry of this 

Order in connection with the marketing or sale of Secured or Unsecured Debt Relief 

Products or 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 FTC. 

D. 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. 

MONETARY JUDGMENT 

VI. IT IS FURTHER ORDERED that: 

A. Judgment in the amount of EIGHTEEN MILLION, FOUR HUNDRED TWENTY 

EIGHT THOUSAND, THREE HUNDRED AND SEVENTY DOLLARS ($18,428,370) 

is entered in favor of the FTC against Defendants, jointly and severally, with postjudgment interest at the legal rate, as equitable monetary relief. 

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B. The monetary judgment set forth in this Section VI is enforceable against any asset, real 

or personal, whether located within the United States or outside the United States, owned 

jointly or singly by, on behalf of, for the benefit of, in trust by or for, or as a deposit for 

future goods or services to be provided to, any Defendant, whether held as tenants in 

common, joint tenants with or without the right of survivorship, tenants by the entirety, 

and/or community property. 

C. All financial or brokerage institution, escrow agent, title company, commodity trading 

company, business entity, or Person, whether located within the United States or outside 

the United States, that holds, controls, or maintains accounts or assets of, on behalf of, or 

for the benefit of, any Receivership Entity, whether real or personal, whether located 

within the United States or outside the United States, shall, within ten (10) business days 

from receipt of a copy of this Order, turn over such account or asset to the Receiver or his 

designated agent, including, but not limited to: 

1. E*TRADE Securities LLC shall, within ten (10) business days of receipt of a copy of 

this Order, liquidate all holdings in account number xxxx6352 in the name of Brown 

Legal, Inc. and transfer the proceeds of such liquidation to the Receiver or his 

designated agent; 

2. Wells Fargo Bank shall, within ten (10) business days of receipt of a copy of this 

Order, transfer to the Receiver or his designated agent all funds, if any, in account 

number xxxx9414 in the name of FMG Partners LLC; 

3. JP Morgan Chase Bank shall, within ten (10) business days of receipt of a copy of 

this Order, transfer to the Receiver or his designated agent all funds, if any, in (a) 

account number xxxx9282 in the name of Consumer Defense LLC, (b) account 

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number xxxx0861 in the name of Preferred Law PLLC, (c) account number 

xxxx5805 in the name of AM Property Management LLC, (d) account number 

xxxx2192 in the name of Preferred Law PLLC, (e) account number xxxx8202 in the 

name of American Home Loans, LLC, (f) account number xxxx0958 in the name of 

Modification Review Board, LLC, and (g) account number xxxx3556 in the name of 

Modification Review Board, LLC; 

4. YapStone shall, within ten (10) business days of receipt of a copy of this Order, 

transfer to the Receiver or his designated agent all funds, if any, in account number 

xxxx8119 in the name of Jonathan Hanley and/or Sandra Hanley; 

5. Airbnb shall, within ten (10) business days of receipt of a copy of this Order, transfer 

to the Receiver or his designated agent all funds, if any, in the account in the name of 

AM Property Management, LLC; 

6. Authorize.net shall, within ten (10) business days of receipt of a copy of this Order, 

transfer to the Receiver or his designated agent all funds, if any, in merchant account 

number xxxx1617 in the name of AM Property Management LLC; 

7. Intuit Payment Solutions LLC shall, within ten (10) business days of receipt of a copy 

of this Order, transfer to the Receiver or his designated agent all funds, if any, in (a) 

merchant account number xxxx7065 in the name of AM Property Management LLC, 

(b) merchant account number xxxx3533 in the name of AM Property Management 

LLC, and (c) merchant account number xxxx9747 in the name of Preferred Law 

PLLC. 

D. In partial satisfaction of the judgment against Defendants in Section VI.A, any financial 

or brokerage institution, escrow agent, title company, commodity trading company, 

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business entity, or person, whether located within the United States or outside the United 

States, that holds, controls, or maintains accounts or assets of, on behalf of, or for the 

benefit of, any Individual Defendant, whether real or personal, whether located within the 

United States or outside the United States, shall, within ten (10) business days from 

receipt of a copy of this Order, turn over such account or asset to the FTC or its 

designated agent, including, but not limited to: 

1. E*TRADE Securities LLC shall, within ten (10) business days of receipt of a copy of 

this Order, liquidate all holdings in account number xxxx3682 in the name of Sandra 

Hanley and transfer the proceeds of such liquidation to the FTC or its designated 

agent; 

2. JP Morgan Chase Bank shall, within ten (10) business days of receipt of a copy of 

this Order, transfer to the FTC or its designated agent all cash currently being held in 

safe deposit box number xxxx3127 in the name of Sandra Hanley. 

E. The asset freeze is modified to permit the transfers identified in this Section. Upon 

completion of those transfers, the asset freeze as to Defendants is dissolved. 

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

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

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

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

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

If a representative of the FTC decides that direct redress to consumers is wholly or 

partially impracticable or money remains after redress is completed, the FTC may apply 

any remaining money for such other equitable relief (including consumer information 

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remedies) as it determines to be reasonably related to Defendants’ practices alleged in the 

Complaint. Any money not used for such equitable relief is to be deposited to the U.S. 

Treasury as disgorgement. Defendants have no right to challenge any actions the FTC or 

its representatives may take pursuant to this Subsection. 

CONTINUATION OF RECEIVERSHIP 

VII. IT IS FURTHER ORDERED that Thomas McNamara, Esq., shall continue as a 

permanent receiver over the Receivership Entities with full powers of a permanent 

receiver, including but not limited to those powers set forth in the Preliminary Injunction 

(ECF No. 55), and including full liquidation powers. The Receiver is directed to wind up 

the Receivership Entities and liquidate all assets within 365 days after entry of this Order, 

including but not limited to the following assets: (a) the real property located at 41 West 

9000 South, Sandy, Utah, (b) the real property located at 8165 Royal Street East, #9, Park 

City, Utah, (c) the 2008 Mercedes Benz S550 identified in the Preliminary Report of 

Temporary Receiver (ECF No. 26), (d) the 2014 Porsche Carrera 4S identified in the 

Preliminary Report of Temporary Receiver (ECF No. 26), and (e) the 2015 Forest River 

Viking V-Trec Camping Trailer identified in the Preliminary Report of Temporary 

Receiver (ECF No. 26). Any party or the Receiver may request that the Court extend the 

Receiver’s term for good cause. Upon termination of the receivership and final payment 

to the Receiver of all approved fees, costs, and expenses, the Receiver shall turn over to 

the FTC or its designated agent all remaining assets in the receivership estate. 

ORDER ACKNOWLEDGMENTS 

VIII. IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of 

this Order: 

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

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

B. For 5 years after entry of this Order, each Individual Defendant for any business that 

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

majority owner or controls directly or indirectly, and each Corporate Defendant, 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 

conduct related to the subject matter of the Order; and (3) any business entity 

resulting from any change in structure as set forth in the Section titled Compliance 

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

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

responsibilities. 

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

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

receipt of this Order. 

COMPLIANCE REPORTING 

IX. IT IS FURTHER ORDERED that Defendants make timely submissions to the FTC: 

A. One year after entry of this Order, each Defendant must submit a compliance report, 

sworn under penalty of perjury: 

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

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

the FTC may use to communicate with Defendant; (b) identify all of that 

Defendant’s businesses by all of their names, telephone numbers, and physical, 

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postal, email, and Internet addresses; (c) describe the activities of each business, 

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

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

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

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

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

Acknowledgment obtained pursuant to this Order, unless previously submitted to 

the FTC. 

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

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

identify all business activities, including any business for which such Defendant 

performs services whether as an employee or otherwise and any entity in which 

such Defendant has any ownership interest; and (c) describe in detail such 

Defendant’s involvement in each such business, including title, role, 

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

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

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

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

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

any ownership interest in or controls directly or indirectly that may affect 

compliance obligations arising under this Order, including: creation, merger, sale, 

or dissolution of the entity or any subsidiary, parent, or affiliate that engages in 

any acts or practices subject to this Order. 

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

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

business activity, including any business for which such Defendant performs 

services whether as an employee or otherwise and any entity in which such 

Defendant has any ownership interest, and identify the name, physical address, 

and any Internet address of the business or entity. 

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

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

within 14 days of its filing. 

D. Any submission to the FTC 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 FTC representative in writing, all submissions to the 

FTC 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. Consumer Defense, 

X180017. 

RECORDKEEPING 

X. IT IS FURTHER ORDERED that Defendants must create certain records for 20 years 

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

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Corporate Defendant and each Individual Defendant for any business that such 

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

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

A. accounting records showing the revenues from all products and 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 FTC; and 

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

COMPLIANCE MONITORING 

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

compliance with this Order and any failure to transfer any assets as required by this 

Order: 

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

Defendant must: submit additional compliance reports or other requested 

information, which must be sworn under penalty of perjury; appear for depositions; 

and produce documents for inspection and copying. The FTC 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. 

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Case 2:18-cv-00030-JCM-BNW Document 320 Filed 12/05/19 Page 29 of 29 

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

with each Defendant. Defendants must permit representatives of the FTC to 

interview any employee or other Person affiliated with any Defendant who has agreed 

to such an interview. The Person interviewed may have counsel present. 

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

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

or any individual or entity affiliated with Defendants, without the necessity of 

identification or prior notice. Nothing in this Order limits the FTC’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 FTC, any consumer reporting 

agency must furnish consumer reports concerning the Individual Defendant, pursuant 

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

RETENTION OF JURISDICTION 

XII. 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: 

________________________________________ 

JAMES C. MAHAN 

UNITED STATES DISTRICT JUDGE 

DATED:______________________________ 

December 5, 2019

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