UNITED STATES DISTRICT COURT 

DISTRICT OF MASSACHUSETTS 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

ALLIANCE SECURITY INC., a Massachusetts 

corporation fonnerly known as Versatile 

Marketing Solutions, Inc., VMS Alarms, VMS, 

Alliance Security, and Alliance Home Protection, 

JASJIT G()TRA, a/k/a Jay Gotra, individually 

and as an officer or owner of Alliance Security, 

Inc., formerly known as Versatile M:arketing 

Solutions~ Inc., VMS Alarms, VMS, Alliance 

Security, Alliance Home Protection, and AH 

Protection, · ~ 

DEFEND AMERICA LLC, a Florida Limited 

Liability Company, 

JESSICA :MERRICK, a/k/a Jessica Bright a/k/a 

Jessica Dudlicek, individually and as an officer of 

Defend America LLC 

POWER MARKETING PROMOTIONS LLC, 

a North Carolina Limited Liability Company, also 

d/b/a J Tele Alarms, and 

KEVIN KLINK, individually and as an officer or 

owner of Power Marketing Promotions LLC, 

Defendants. 

CASE NO. l:18-CV-10548 (GAO) 

STIPUL:ATED FINAL ORDER FOR PERMANENT INJUNCTION 

AND CIVIL PENALTY JUDGMENT 

AS TO DEFENDANT ALLIANCE SECURITY INC. 

Plaintiff, the Federal Trade Commission ("Commission" or "·FI'C"), flied its Complaint 

for Civil Penalties, Permanent Injunction, and Other Relief ("Complaint") in this matter 

pursuant to Sections S(a), S(m)(l)(A), 13(b), and 16(a) of the Federal Trade Commission Act 

("FTC Act"), 15 U.S.C. §§ 45(a), 45(m)(l)(A), 53(b), and 56(a); Section 6 of the Telemarketing 

and Consumer Fraud and Abuse Prevention Act (the "Telemarketing Act"), 15 U.S.C. § 6105; 

Case 1:18-cv-10548-GAO Document 77 Filed 07/31/19 Page 1 of 12 
and Section 621(a) of the Fair Credit Reporting Act, 1S U.S.C. § 1681s(a). The Commission and 

Defendant Alliance Security Inc. stipulate to the entry of this Stipulated. Final Order for 

Permanent Injunction and Civil Penalty Judgment ("Ordet) to resolve all matters in dispute in 

this action between them, but not as to any other person, such as an indemnitee. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. Toe Complaint charges that Defendant Alliance Security Inc. participated in 

deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C § 4S(a), and has 

engaged in acts or practices that violate the FrC's Telemarketing Sales Rule (the "TSR" or 

"Rule"), as amended, 16 C.F .R. Part 310, in the Telemarketing of their products and services or 

the Telemarketing of his clients' products and services by, among other things, initiating and 

causing the initiation of telemarketing calls to consumers whose telephone numbers were on the 

National Do Not Call ("DNC'') Registry. The Complaint also charges that Defendant Alliance 

Security participated in acts and practices in violation of Section 62l(a) of the Fair Credit 

Reporting Act, 15 U.S.C. § 168l(s)(a), by obtaining consumer reports from consumer reporting 

agencies without a permissible purpose. 

3. The Commission's action against Defendant is not stayed by the Defendant's 

banlauptcy filing under 11 U.S.C. § 362{a) because it is an exercise of the Commission's police 

or regulatory power as a governmental unit pursuant to 11 U.S.C. § 362(b)(4) and thus falls 

within an exemption to the automatic stay. 

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4. Defendant Alliance Security Inc. neither admits nor denies any of the allegations 

in the Complaint, except as specifically stated in this Order. Only for purposes of this action, 

Defendant Alliance Security Inc. admits the facts necessary to establish jurisdiction. 

5. Defendant Alliance Security Inc. waives any claim that it 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 its own costs and attorneys' fees. Defendant Alliance 

Security Inc. waives and releases any claims that it may have against the Commission and its 

agents that relate to this action. 

6. Defendant Alliance Security Inc. 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. "Consumer Reporting Agency" means any person which, for monetary fees, 

dues, or on a cooperative nonprofit basts, regularly engages in whole or in part in the practice of 

assembling or evaluating consumer credit information or other information on consumers for the 

purpose of furnishing consumer reports to third parties, and which uses any means or facility of 

interstate commerce for the purpose of preparing or furnishing consumer reports. Consumer 

Reporting Agencies include, among others, Trans Union, Equifax.., and Experian. 

B. "Consumer Report" means consumer credit reports, consumer credit scores, or 

any other written, oral, or other communication of any information by a Consumer Reporting 

Agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, 

general reputation, personal characteristics, or mode of living. 

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C. "Defendant" means Al1iance Security Inc., a Delaware Corporation formerly 

known as Versatile Marketing Solutions, Inc., VMS Alarms, VMS. Alliance Security, and 

Alliance Home Protection, and its successors and assigns, individually, collectively, or in any 

combination. 

D. "Telemarketing'' means a plan, program. or campaign which is conducted to 

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

telephones and which involves more than one interstate telephone call. 

E. "Written Authorization" means an email, facsimilet or signed letter from a 

consumer sent to Defendants or their agents, employees, or representatives permitting 

Defendants to obtain or use a Consumer Report containing information about that consumer. 

Written Authorization does not include verbal or oral statements made by a consumer during a 

telephone call or in-person meeting. 

ORDER 

I. Permanent Ban on Telemarketing 

IT IS ORDERED that Defendant, whether acting directly or through an intermediary, is 

permanently restrained and enjoined from engaging in, or assisting others to engage in, 

Telemarketing. 

II. Ban on Obtaining or Using Consumer Reports Without Written Authorization 

IT IS FURTHER ORDERED that Defendant, whether acting directly or through an 

intennediary, is permanently restrained and enjoined from: 

A. Obtaining any Consumer Report from any Consumer Reporting Agency or from 

any other person, unless Defendant proves it had Written Authorization to obtain such Consumer 

Report from the consumer before obtaining the Consumer Report; 

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B. Using any Consumer Report for any purpose unless Defendant proves it had prior 

Written Authorization from the consumer authorizing Defendants to use such Consumer Report 

for the designated purpose before using it. 

Ill. Prohibition Against Misrepresentations 

IT IS FURTHER ORDERED that Defendant, Defendant's officers, agents, employees, 

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

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

promoting or offering for sale any good or service, are permanently restrained and enjoined from 

misrepresenting, or assisting others in misrepresenting, expressly or by implication: 

A. Defendant's affiliation or association with ADT, another competitor alarm 

installation or monitoring company, or any other business; 

B. Defendant's purchase or acquisition of ADT, another competitor alarm 

installation or monitoring company, or any other business; or 

C. The name of Defendant's business. 

IV. Monetary Judgment for Civil Penalty and Suspension 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of Nine Million. Eight Hundred Forty-Five Thousand, 

and Twenty-One dollars ( $9,845,021) is entered in favor of the Commission against Defendant 

as a civil penalty, which is suspended based upon the truthfulness and accuracyofDefendant's 

initial disclosures and monthly operating reports, sworn to under penalty of perjury, filed in its 

Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Rhode Island 111 

re Alliance Security Inc., Case No. l:17-bk-11190 (Bankr. D. R.l.). 

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B. The suspension of the judgment will be lifted if, upon motion by the Commission, 

the Court finds that Defendant failed to disclose any material asset, materially misstated the 

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

or monthly operating reports Defendant filed in connection with its chapter 11 bankruptcy 

proceeding, In re Alliance Securi'ty Inc., Case No. 1: 17-bk-11190 (Bankr. D. R.I. ). 

C. If the suspension of the judgment is lifted, the judgment becomes immediately 

due in the amount specified in Subsection A above (which the parties stipulate only for purposes 

of this Section represents the amount of the civil penalty for the violations alleged in the 

Complaint), less any payment previously made pursuant to this Section, plus interest computed 

from the date of entry of this Order. 

V. Addidonal 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 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. 

C. Defendant agrees that the judgment against it represents a civil penalty owed to 

the government of the United States, is not compensation for actual pecuniary loss, and, 

therefore, as to Defendant, is not subject to discharge under the Banlauptcy Code pursuant to 11 

U.S.C. § 114l(d}(3) or 11 U.S.C. § 727(a). 

D. Defendant acknowledges that its Employer Identification Number, which 

Defendant previously submitted in connection with the bankruptcy proceeding in Section IV• 

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

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

YI. Customer Information 

IT IS FURTHER ORDERED that Defendant, Defendant's 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 disclosing, using, or benefitting from customer information, including the name, 

address, telephone number, email address, social security number, credit score, other identifying 

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

bank account, or other financia1 account), that Defendant obtained prior to entry of this Order. 

Provided, however, that Defendant may disclose information about its cU1Tent customers to any 

person that purchases Defendants' assets in connection with a sale approved by the Bankruptcy 

Court in In re Alliance Security Inc., Case No. 1: 17-bk-11190 (Bankr. D. R.I.). 

VII. Cooperation 

IT IS FURTHER ORDERED that Defendant must fully cooperate with representatives of 

the Commission in this case and in any investigation related to or associated with the 

transactions or the occU1Tences that are the subject of the Complaint Defendant must provide 

truthful and complete information, evidence, and testimony. Defendant must cause its officers, 

employees, representatives, or agents to appear for interviews, discovery, hearings, trials, and 

any other proceedings that a Commission representative may reasonably request upon five days 

written notice, at such places and times that a Commission representative may designate, without 

requiring the service of a subpoena. Further, to assist the Commission with any investigation and 

with monitoring Defendant's compliance with this order, Defendant consents, for pwposes of 

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Sections 2701-2712 of the Electronic Communications Privacy Act, to the disclosure of the 

contents and records of its auto-dialed, Telemarketing communications or other information 

pertaining to its auto-dialed, Telemarketing communications by electronic communications 

service providers and remote computing service providers. Defendant further agrees to execute, 

within fourteen ( 14) days of a request from the Commission, any forms or other documents 

evidencing its consent that may be required by such electronic communications service providers 

or remote computing service providers. 

VIII. Order Acknowledgments 

IT IS FURTHER ORDERED that Defendant obtain acknowledgments ofreceipt of this 

Order: 

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

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

B. For five years after entry of this Order, Defendant must deliver a copy of this 

Order, including Appendix A, to: (1) all principals, officers, directors, and LLC managers and 

members; (2) all employees, agents, and other representatives who participate in 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 

seven 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 Defendant delivered a copy of this Order, 

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

Order. 

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IX. Compliance Reporting 

IT IS FURTHER ORDERED that Defendant make timely submissions to the 

Commission: 

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

sworn under penalty of perjury: 

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

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

representatives of the Commission may use to communicate with 

Defendant; (b) identify all ofthat 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, and the means of advertising, marketing, and sales; 

( 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. 

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

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

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

or (b) the structure of 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. 

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

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

fourteen days of its filing. 

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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. Alliance Security Inc., et al., 

Matter Number X140022. 

X. Record keeping 

IT IS FURTHER ORDERED that Defendant must create certain records for twenty years 

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

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

owner or control 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 whether received directly or indirectly, such 

as through a third party, and any response; and 

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

Order, including all submissions to the Commission. 

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XI. Compliance Monitoring 

IT IS FURTHER ORDERED that, for the pwpose of monitoring Defendant Alliance 

Security's compliance with this Order, including the :financial representations upon which part of 

the judgment was suspended and any failure to transfer any assets as required by this Order: 

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

Commissio~ Defendant must: (1) submit additional compliance reports or other requested 

information, which must be sworn under penalty of perjury; (2) appear for depositions; and (3) 

produce documents for inspection and copying. The Commission is also authorized to obtain 

discovery, without further leave of court, using any of the procedures prescnoed 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 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 either 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-l. 

31st July SO ORDERED, this __ day of ___ __, 2019. 

Isl Honorable George A. O'Toole, Jr. 

United States District Judge 

Hon. George A. O'Toole, Jr. 

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Case 1:18-cv-10548-GAO Document 77 Filed 07/31/19 Page 11 of 12 
SO STIPULATED AND AGREED: 

FEDERAL TRADE COMMlSSION 

7/23/2019 

Ian L. Barlow DATE Tejasvi Srimushnam 

Attorneys 

Federal Trade Commission 

600 Pennsylvania Avenue, NW 

Washington, DC 20580 

(202) 326-3120 (Barlow) 

(202) 326-2959 (Srimushnam) 

(202) 326-3395 (facsimile) 

ibarlow@ftc.gov; tsrimushnam@ftc.gov 

FOR DEFENDANT ALLIANCE 

SECURITY INC. 

ro/1L1 /~o,7 

DATE 

0 Providence Street 

West Warwick, RI 02893 

(401) 222-9374 

james.atchison@gmail.com 

Attorney for Defendant Alliance Securily Inc. 

J asjit otraa/k/aJay Gotra 

DATE In his capacity as CEO and Majority Owner 

of Defendant Alliance Securily Inc. 

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