UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

)

FEDERAL TRADE COMMISSION, )

)

Plaintiff, ) Case No. 17-cv-194

)

v. ) Judge Kennelly

)

CREDIT BUREAU CENTER, LLC, ) 

a limited liability company, formerly known as )

MYSCORE LLC, also doing business as )

EFREESCORE.COM, CREDITUPDATES.COM, )

and FREECREDITNATION.COM, )

)

MICHAEL BROWN, )

individually and as owner and manager of )

CREDIT BUREAU CENTER, LLC, )

)

DANNY PIERCE, individually, and )

)

ANDREW LLOYD, individually, )

)

Defendants. )

 )

PRELIMINARY INJUNCTION AS TO DEFENDANTS

CREDIT BUREAU CENTER, LLC AND MICHAEL BROWN 

Plaintiff, Federal Trade Commission (“FTC” or “Commission”), pursuant to Section 

13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b), Section 5 of the 

Restore Online Shoppers’ Confidence Act (“ROSCA”), 15 U.S.C. § 8404, and Section 621(a)(1) 

of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681s(a)(1), filed a Complaint for 

Permanent Injunction and Other Equitable Relief, and applied ex parte for a Temporary 

Restraining Order with Asset Freeze, Appointment of a Receiver, Other Equitable Relief, and 

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Order to Show Cause Why a Preliminary Injunction Should Not Issue (“TRO”) pursuant to Rule 

65 of the Federal Rules of Civil Procedure, Fed. R. Civ. P. 65.

The TRO having been granted (Dkt. No. 16) and notice thereof having been provided to 

Defendants, and the Court having considered all pleadings, memoranda, declarations, and other 

exhibits filed herein, and being fully advised in the premises, it is now ORDERED, 

ADJUDGED AND DECREED as follows:

FINDINGS

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

Defendants Credit Bureau Center, LLC, and Michael Brown (“CBC Defendants”);

2. Venue in this district is proper, and the CBC Defendants have been properly 

served with process under Federal Rule of Civil Procedure 4;

3. The Court has found, in its Memorandum Opinion and Order dated February 21, 

2017, that the FTC has shown a reasonable likelihood of success on its claims that the CBC 

Defendants have engaged in and are likely to engage in acts or practices that violate Section 5(a) 

of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 45(a), Section 4(1) and (2) of 

the Restore Online Shoppers’ Confidence Act (“ROSCA”), 15 U.S.C. § 8403(1) & (2), Section 

612(g) of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681j(g), and the Free Annual 

File Disclosures Rule (“Free Reports Rule”), 12 C.F.R. §§ 1022.130-1022.138;

4. The Court has further found in its Memorandum Opinion and Order dated 

February 21, 2017 that, having weighed the equities and considering the FTC's likelihood of 

success on the merits, entry of a preliminary injunction against the CBC Defendants is 

appropriate and in the public interest;

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5. There is a reasonable basis to believe that immediate and irreparable harm will 

result from the CBC Defendants’ ongoing violations of Section 5(a) of the FTC Act, 15 U.S.C. § 

45(a), Section 4(1) and (2) of ROSCA, 15 U.S.C. § 8403(1) & (2), Section 612(g) of the FCRA, 

15 U.S.C. § 1681j(g), and the Free Reports Rule, 12 C.F.R. §§ 1022.130-1022.138, unless the 

CBC Defendants are restrained and enjoined by Order of this Court;

6. There is a reasonable basis to believe that immediate and irreparable damage to 

the Court’s ability to grant effective final relief for consumers, including monetary restitution, 

rescission, disgorgement, or refunds, will occur from the sale, transfer, or other disposition or 

concealment by the CBC Defendants of their assets or records, unless the CBC Defendants are 

restrained and enjoined by Order of this Court. Therefore, there is good cause for an asset freeze

and the appointment of a permanent receiver over the Receivership Defendant, as that term in 

defined herein; and

7. The FTC is an independent agency of the United States of America and no 

security is required of any agency of the United States for the issuance of a preliminary 

injunction. Fed. R. Civ. P. 65(c).

DEFINITIONS

For purposes of this Order, the following definitions shall apply:

1. “Asset” or “Assets” means any legal or equitable interest in, right to, or claim to, 

any real or personal property, including, but not limited to, “goods,” “instruments,” “equipment,” 

“fixtures,” “general intangibles,” “inventory,” “checks,” or “notes,” (as these terms are defined 

in the Uniform Commercial Code), lines of credit, chattels, leaseholds, contracts, mail or other 

deliveries, shares of stock, lists of consumer names, accounts, credits, premises, receivables, 

funds, and all cash, wherever located.

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2. “Assisting Others” includes, but is not limited to: (1) providing administrative 

services, including, but not limited to, filing business registrations with federal, state, or local 

government entities; (2) acting as an officer, director, or registered agent of a business entity; 

(3) establishing bank and/or merchant accounts; (4) handling banking transactions; 

(5) establishing mail accounts and/or mail receiving boxes; (6) forwarding mail received from 

consumers; (7) performing customer service functions, including, but not limited to, receiving or 

responding to consumer complaints; (8) formulating or providing, or arranging for the 

formulation or provision of, any sales script or other marketing material; (9) providing names of, 

or assisting in the generation of, potential customers; or (11) performing or providing marketing 

or billing services of any kind.

3. “Corporate Defendant” means Credit Bureau Center, LLC, a Delaware limited 

liability company, formerly known as MyScore LLC, and also doing business as 

eFreeScore.com, CreditUpdates.com, and FreeCreditNation.com, and its successors and assigns, 

as well as any subsidiaries, and any fictitious business entities or business names created or used 

by these entities, or any of them.

4. “Credit Monitoring Service” means any service, plan, program or membership 

that includes, or is represented to include, alerts or monitoring of changes to consumers’ credit 

files, credit reports, or credit scores.

5. “Defendant(s)” means all of the Individual Defendants and the Corporate 

Defendant, individually, collectively, or in any combination.

6. “Document(s)” is equal in scope and synonymous in meaning to the usage of the 

term in Federal Rule of Civil Procedure 34(a), and includes writings, drawings, graphs, charts, 

photographs, audio and video recordings, computer records, and any other data compilations 

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from which information can be obtained and translated, if necessary, through detection devices 

into reasonably usable form. A draft or non-identical copy is a separate document within the 

meaning of the term.

7. “Financial Institution” means any bank, savings and loan institution, credit 

union, or any financial depository of any kind, including, but not limited to, any brokerage 

house, trustee, broker-dealer, escrow agent, title company, commodity trading company, or 

precious metal dealer.

8. “Individual Defendants” means Michael Brown, Danny Pierce, and Andrew 

Lloyd, and by whatever other names each may be known.

9. “Negative Option Feature” means, in an offer or agreement to sell or provide 

any goods or services, a provision under which the customer’s silence or failure to take an 

affirmative action to reject goods or services or to cancel the agreement is interpreted by the 

seller or provider as acceptance of the offer.

10. “Person(s)” means a natural person, organization, or other legal entity, including 

a corporation, limited liability company, partnership, sole proprietorship, association, 

cooperative, or any other group or combination acting as an entity.

11. “Plaintiff” means the Federal Trade Commission.

12. “Receiver” means the receiver appointed in Section VII of this Order and any 

deputy receivers that shall be named by the receiver.

13. “Receivership Defendant” means Credit Bureau Center, LLC, a Delaware 

limited liability company, formerly known as MyScore LLC, and also doing business as 

eFreeScore.com, CreditUpdates.com, and FreeCreditNation.com, and its successors and assigns, 

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as well as any subsidiaries, affiliates, divisions, or sales or customer service operations, and any 

fictitious business entities or business names created or used by these entities.

14. “TRO” means the Ex Parte Temporary Restraining Order With Asset Freeze, 

Appointment of a Receiver, Other Equitable Relief, and Order to Show Cause Why a 

Preliminary Injunction Should Not Issue, entered in this matter on January 11, 2017.

I.

PROHIBITED BUSINESS ACTIVITIES

IT IS ORDERED that the CBC Defendants, and their officers, agents, servants, 

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

who receive actual notice of this Order by personal service or otherwise, whether acting directly 

or through any trust, corporation, subsidiary, division, or other device, in connection with the 

advertising, marketing, promoting, offering for sale, sale, or provision of any good or service, are 

hereby restrained and enjoined from: 

A. Misrepresenting, or assisting others in misrepresenting, either orally or in writing, 

expressly or by implication, any material fact, including, but not limited to:

1. That a residential property described in an online ad is currently available 

for rent from someone consumers can contact through that ad; or

2. That a residential property will be shown to consumers who obtain their 

credit reports and scores through any Defendant’s website;

B. Failing to disclose, or disclose adequately, material terms and conditions of any 

offer of any product or service, including, but not limited to:

1. That consumers will be automatically enrolled in a negative option 

continuity plan with additional charges;

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2. That consumers must affirmatively cancel the negative option continuity 

plan before the end of a trial period to avoid additional charges;

3. That consumers’ credit or debit card information will be used to charge 

consumers monthly for the negative option continuity plan;

4. The costs associated with the negative option continuity plan; and

5. The means consumers must use to cancel the negative option continuity 

plan to avoid additional charges.

C. Violating or assisting others in violating, any provision of ROSCA, 15 U.S.C. 

§§ 8401 et seq., including, but not limited to:

1. Section 4(1) of ROSCA, 15 U.S.C. § 8403(1), by charging, attempting to 

charge, or continuing to charge consumers through a negative option feature without having

clearly and conspicuously disclosed all material terms of the transaction before obtaining 

consumers’ billing information; and

2. Section 4(2) of ROSCA, 15 U.S.C. § 8403(2), by charging, attempting to 

charge, or continuing to charge consumers through a negative option feature without having 

obtained their express informed consent; and

D. Operating any website offering free credit reports without displaying across the 

top of each page that mentions free credit reports, and across the top of each page of the ordering 

process, the prominent disclosure required by the Free Reports Rule, 12 C.F.R. § 1022.138, to 

inform consumers of their right to obtain a free credit report from AnnualCreditReport.com or 

(877) 322-8228.

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II.

ASSET FREEZE

IT IS FURTHER ORDERED that the CBC Defendants, and their officers, agents, 

servants, employees, attorneys, and all other persons in active concert or participation with any 

of them, who receive actual notice of this Order by personal service or otherwise, whether acting 

directly or through any trust, corporation, subsidiary, division, or other device, except as 

provided herein, as stipulated by the parties, or as directed by further order of the Court, are 

hereby restrained and enjoined from:

A. Transferring, liquidating, converting, encumbering, pledging, loaning, selling, 

concealing, dissipating, disbursing, assigning, spending, withdrawing, granting a lien or security 

interest or other interest in, or otherwise disposing of any funds, real or personal property, 

accounts, contracts, shares of stock, lists of consumer names, or other assets, or any interest 

therein, wherever located, including outside the United States, that are:

1. Owned, controlled or held by, in whole or in part, for the benefit of, or 

subject to access by, or belonging to, any Defendant;

2. In the actual or constructive possession of any Defendant; or

3. In the actual or constructive possession of, or owned, controlled, or held 

by, or subject to access by, or belonging to, any other corporation, partnership, trust, or any other 

entity directly or indirectly owned, managed, or controlled by, or under common control with, 

any Defendant, including, but not limited to, any assets held by or for any Defendant in any 

account at any bank or savings and loan institution, or with any credit card processing agent, 

automated clearing house processor, network transaction processor, bank debit processing agent, 

customer service agent, commercial mail receiving agency, or mail holding or forwarding 

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company, or any credit union, retirement fund custodian, money market or mutual fund, storage 

company, trustee, or with any broker-dealer, escrow agent, title company, commodity trading 

company, precious metal dealer, or other financial institution or depository of any kind, either 

within or outside the territorial United States;

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

or storage facilities titled in the name of any Defendant, or subject to access by any Defendant or 

under any Defendant’s control, without providing the FTC prior notice and an opportunity to 

inspect the contents in order to determine that they contain no assets covered by this Section;

C. Cashing any checks or depositing or processing any payments from customers of 

Defendants;

D. Incurring charges or cash advances on any credit card issued in the name, singly 

or jointly, of any Defendant; or

E. Incurring liens or encumbrances on real property, personal property, or other 

assets in the name, singly or jointly, of any Defendant or of any corporation, partnership, or other 

entity directly or indirectly owned, managed, or controlled by any Defendant.

Notwithstanding the asset freeze provisions of Section II.A through E above, and subject 

to prior written agreement with the Commission, Individual Defendants may, upon compliance 

with Section IV (Financial Statements) infra, pay from their individual personal funds 

reasonable, usual, ordinary, and necessary living expenses.

The funds, property, and assets affected by this Section shall include both existing assets 

and assets acquired after the effective date of this Order.

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III. 

DUTIES OF THIRD PARTIES HOLDING DEFENDANTS’ ASSETS

IT IS FURTHER ORDERED that any financial institution, business entity, or person 

maintaining or having custody or control of any account or other asset of any CBC Defendant, or 

any corporation, partnership, or other entity directly or indirectly owned, managed, or controlled 

by, or under common control with any CBC Defendant, which is served with a copy of this 

Order, or otherwise has actual or constructive knowledge of this Order, shall:

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

assignment, transfer, pledge, hypothecation, encumbrance, disbursement, dissipation, 

conversion, sale, liquidation, or other disposal of any of the assets, funds, documents, or other 

property held by, or under its control:

1. On behalf of, or for the benefit of, any CBC Defendant or any other party 

subject to Section II above;

2. In any account maintained in the name of, or for the benefit of, or subject 

to withdrawal by, any CBC Defendant or other party subject to Section II above; and

3. That are subject to access or use by, or under the signatory power of, any

CBC Defendant or other party subject to Section II above;

B. Deny the CBC Defendants access to any safe deposit boxes or storage facilities 

that are either:

1. Titled in the name, individually or jointly, of any CBC Defendant, or other 

party subject to Section II above; or

2. Subject to access by any CBC Defendant or other party subject to Section 

II above;

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C. Unless previously submitted in full compliance with the TRO, provide the FTC, 

within five (5) days of the date of service of this Order, a sworn statement setting forth:

1. The identification number of each account or asset titled in the name, 

individually or jointly, of any CBC Defendant, or held on behalf of, or for the benefit of, any 

CBC Defendant or other party subject to Section II above, including all trust accounts managed 

on behalf of any CBC Defendant or subject to any CBC Defendant’s control;

2. The balance of each such account, or a description of the nature and value 

of such asset;

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

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

Defendant, or is otherwise subject to access or control by any CBC Defendant or other party 

subject to Section II above, whether in whole or in part; and

4. If the account, safe deposit box, storage facility, or other asset has been 

closed or removed, the date closed or removed and the balance on said date;

D. Within five (5) days of a request from the FTC, provide the FTC with copies of 

all records or other documents pertaining to each such account or asset, including, but not limited 

to, originals or copies of account applications, account statements, corporate resolutions, 

signature cards, checks, drafts, deposit tickets, transfers to and from the accounts, all other debit 

and credit instruments or slips, currency transaction reports, 1099 forms, and safe deposit box 

logs; and

E. The FTC may properly serve this Order on any financial or brokerage institution, 

business entity or person that holds, controls or maintains custody of any account or asset of any 

CBC Defendant or has held, controlled or maintained custody of any account or asset of any 

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CBC Defendant at any time since January 2014, by facsimile transmission, hand delivery or 

overnight carrier. This Section shall apply to existing accounts and assets, assets deposited or 

accounts opened after the effective date of this Order, and any accounts or assets maintained, 

held or controlled since January 2014. This Section shall not prohibit transfers in accordance 

with any provision of this Order, any further order of the Court, or by written agreement of the 

parties.

IV.

FINANCIAL STATEMENTS

IT IS FURTHER ORDERED that, unless previously submitted in full compliance with 

the TRO, each CBC Defendant shall serve upon counsel for the FTC, no later than five (5) 

business days after service of this Order, a completed financial statement accurate as of the date 

of entry of this Order, on the forms served on Defendants with the TRO for Individual 

Defendants and for Corporate Defendants, as the case may be, signed under penalty of perjury. 

The financial statements shall include assets held outside the territory of the United 

States, shall be accurate as of the date of the entry of this Order, and shall be verified under oath. 

The CBC Defendants shall attach to these completed financial statements copies of all local, 

state, provincial, and federal income and property tax returns, with attachments and schedules, as 

called for by the instructions to the financial statements.

V.

MAINTAIN RECORDS AND REPORT NEW BUSINESS ACTIVITY

IT IS FURTHER ORDERED that the CBC Defendants, and their officers, agents, 

servants, employees, attorneys, and all other persons in active concert or participation with any 

of them, who receive actual notice of this Order by personal service or otherwise, whether acting 

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directly or through any trust, corporation, subsidiary, division, or other device, are hereby 

restrained and enjoined from:

A. Failing to make and keep books, records, accounts, bank statements, current 

accountants’ reports, general ledgers, general journals, cash receipts ledgers, cash disbursements 

ledgers and source documents, documents indicating title to real or personal property, and any 

other data which, in reasonable detail, accurately and fairly reflect the incomes, disbursements, 

transactions, dispositions, and uses of the CBC Defendants’ assets;

B. Destroying, erasing, mutilating, concealing, altering, transferring, or otherwise 

disposing of, in any manner, directly or indirectly, any documents, including electronically 

stored materials, that relate in any way to the business practices or business or personal finances 

of Defendants; to the business practices or finances of entities directly or indirectly under the 

control of Defendants; or to the business practices or finances of entities directly or indirectly 

under common control with any other Defendant; and

C. Creating, operating, or exercising any control over any new business entity, 

whether newly formed or previously inactive, including any partnership, limited partnership, 

joint venture, sole proprietorship or corporation, without first providing the FTC with a written 

statement disclosing: (1) the name of the business entity; (2) the address, telephone number, email address, and website address of the business entity; (3) the names of the business entity’s 

officers, directors, principals, managers, and employees; and (4) a detailed description of the 

business entity’s intended activities.

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VI.

PROHIBITION ON DISCLOSING CUSTOMER INFORMATION

IT IS FURTHER ORDERED that the CBC Defendants, and their officers, agents, 

servants, employees, attorneys, and all other persons or entities in active concert or participation 

with any of them, who receive actual notice of this Order by personal service or otherwise, 

whether acting directly or through any trust, corporation, subsidiary, division, or other device, 

are hereby restrained and enjoined from:

A. Selling, renting, leasing, transferring, or otherwise disclosing the name, address, 

birth date, telephone number, e-mail address, Social Security number, credit card number, bank 

account number, or other financial or identifying personal information of any person from whom 

or about whom any Defendant obtained such information in connection with activities alleged in 

the FTC’s Complaint; and

B. Benefiting from or using the name, address, birth date, telephone number, e-mail 

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

identifying personal information of any person from whom or about whom any Defendant 

obtained such information in connection with activities alleged in the FTC’s Complaint;

Provided, however, that the CBC Defendants may disclose such financial or identifying 

personal information to a law enforcement agency or as required by any law, regulation, or court 

order.

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VII.

PERMANENT RECEIVER

A. APPOINTMENT OF PERMANENT RECEIVER

IT IS FURTHER ORDERED that Robb Evans & Associates LLC is appointed 

Permanent Equity Receiver for Receivership Defendant and any of its affiliates, subsidiaries, 

divisions, or sales or customer service operations, wherever located, with the full power of an 

equity receiver. The Receiver shall be the agent of this Court, and solely the agent of this Court, 

in acting as Receiver under this Order. The Receiver shall be accountable directly to this Court. 

The Receiver shall comply with all Local Rules of this Court governing receivers.

B. RECEIVERSHIP DUTIES

IT IS FURTHER ORDERED that the Receiver is directed and authorized to 

accomplish the following:

1. Assume full control of the Receivership Defendant by removing, as the 

Receiver deems necessary or advisable, any director, officer, employee, independent contractor, 

or agent of the Receivership Defendant, including any Individual Defendant, from control of, 

management of, or participation in, the affairs of the Receivership Defendant;

2. Take exclusive custody, control, and possession of all assets and 

documents of, or in the possession, custody, or under the control of, the Receivership Defendant, 

wherever situated. The Receiver shall have full power to divert mail and to sue for, collect, 

receive, take in possession, hold, and manage all assets and documents of the Receivership 

Defendant and other persons or entities whose interests are now held by or under the direction, 

possession, custody, or control of the Receivership Defendant. Provided, however, that the 

Receiver shall not collect any amount from a consumer or allow the Receivership Defendant to 

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continue to debit or otherwise charge a consumer’s account, if the Receiver believes the 

consumer was a victim of the unfair or deceptive acts or practices alleged in the Complaint in 

this matter;

3. Use any means necessary to take possession of and to secure all areas of 

the business premises of the Receivership Defendant. Such steps may include, but are not 

limited to, the following as the Receiver deems necessary or advisable: (a) serving this Order; 

(b) completing a written inventory of all receivership assets; (c) obtaining pertinent information 

from all employees and other agents of the Receivership Defendant, including, but not limited to, 

the name, home address, Social Security number, job description, method of compensation, and 

all accrued and unpaid commissions and compensation of each such employee or agent; (d) 

videotaping all portions of the locations; (e) securing the locations by changing the locks and 

disconnecting any computer modems or other means of access to the computer or other records 

maintained at the locations; (f) requiring any persons present on the premises at the time this 

Order is served to leave the premises, to provide the Receiver with proof of identification, or to 

demonstrate to the satisfaction of the Receiver that such persons are not removing from the 

premises documents or assets of the Receivership Defendant; and/or (g) employ the assistance of 

law enforcement officers as the Receiver deems necessary to implement the provisions of this 

Order;

4. Conserve, hold, and manage all receivership assets, and perform all acts 

necessary or advisable to preserve the value of those assets, in order to prevent any irreparable 

loss, damage, or injury to consumers or to creditors of the Receivership Defendant, including, 

but not limited to, obtaining an accounting of the assets and preventing transfer, withdrawal, or 

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misapplication of assets, and including the authority to liquidate or close out any open securities 

or commodity futures positions of the Receivership Defendant;

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

6. Prevent the inequitable distribution of assets and determine, adjust, and 

protect the interests of consumers and creditors who have transacted business with the 

Receivership Defendant;

7. Manage and administer the business of the Receivership Defendant until 

further order of this Court by performing all incidental acts that the Receiver deems to be 

advisable or necessary, which includes retaining, hiring, or dismissing any employees, 

independent contractors, or agents;

8. With prior notice to all parties and upon approval by the Court, choose, 

engage, and employ attorneys, accountants, appraisers, and other independent contractors and 

technical specialists, as the Receiver deems advisable or necessary in the performance of duties 

and responsibilities under the authority granted by this Order;

9. Make payments and disbursements from the receivership estate that are 

necessary or advisable for carrying out the directions of, or exercising the authority granted by, 

this Order. The Receiver shall apply to the Court for prior approval of any payment of any debt 

or obligation incurred by the Receivership Defendant prior to the date of entry of this Order, 

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except payments that the Receiver deems necessary or advisable to secure assets of the 

Receivership Defendant, such as rental payments;

10. Determine and implement the manner in which the Receivership 

Defendant will comply with, and prevent violations of, this Order and all other applicable laws;

11. Institute, compromise, adjust, appear in, intervene in, or become party to 

such actions or proceedings in state, federal or foreign courts that the Receiver deems necessary 

and advisable to preserve or recover the assets of the Receivership Defendant or that the 

Receiver deems necessary and advisable to carry out the Receiver’s mandate under this Order;

12. Defend, compromise, adjust, or otherwise dispose of any or all actions or 

proceedings instituted in the past or in the future against the Receiver in his or her role as 

Receiver, or against the Receivership Defendant that the Receiver deems necessary and 

advisable to preserve the assets of the Receivership Defendant or that the Receiver deems 

necessary and advisable to carry out the Receiver’s mandate under this Order;

13. Continue and conduct the business of the Receivership Defendant in such 

manner, to such extent, and for such duration as the Receiver may in good faith deem to be 

necessary or appropriate to operate the business profitably and lawfully, if at all; provided, 

however, that the continuation and conduct of the business shall be conditioned upon the 

Receiver’s good faith determination that the business can be lawfully operated at a profit using 

the assets of the receivership estate;

14. Issue subpoenas to obtain documents and records pertaining to the 

receivership, and conduct discovery in this action on behalf of the receivership estate;

15. Open one or more bank accounts as designated depositories for funds of 

the Receivership Defendant. The Receiver shall deposit all funds of the Receivership Defendant 

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in such a designated account and shall make all payments and disbursements from the 

receivership estate from such an account;

16. Maintain accurate records of all receipts and expenditures that he or she 

makes as Receiver;

17. Cooperate with reasonable requests for information or assistance from any 

state or federal law enforcement agency, including the FTC; and

18. File reports with the Court on a timely and reasonable basis.

C. COOPERATION WITH THE RECEIVER

IT IS FURTHER ORDERED that:

1. The CBC Defendants and their officers, agents, servants, employees, and 

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

actual notice of this Order by personal service or otherwise, whether acting directly or through 

any trust, corporation, subsidiary, division, or other device, shall fully cooperate with and assist 

the Receiver. This cooperation and assistance shall include, but not be limited to:

a. Providing any information to the Receiver that the Receiver deems 

necessary to exercising the authority and discharging the responsibilities of the Receiver under 

this Order;

b. Providing any password required to access any computer, 

electronic file, or telephonic data in any medium; or

c. Advising all persons who owe money to the Receivership 

Defendant that all debts should be paid directly to the Receiver.

2. The CBC Defendants and their officers, agents, servants, employees, and 

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

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actual notice of this Order by personal service or otherwise, whether acting directly or through 

any trust, corporation, subsidiary, division, or other device, are hereby restrained and enjoined 

from directly or indirectly:

a. Transacting any of the business of the Receivership Defendant;

b. Destroying, secreting, defacing, transferring, or otherwise altering 

or disposing of any documents of the Receivership Defendant, including, but not limited to, 

books, records, accounts, writings, drawings, graphs, charts, photographs, audio and video 

recordings, computer records, and other data compilations, electronically-stored records, or any 

other records of any kind or nature;

c. Transferring, receiving, altering, selling, encumbering, pledging, 

assigning, liquidating, or otherwise disposing of any assets owned, controlled, or in the 

possession or custody of, or in which an interest is held or claimed by, the Receivership 

Defendant, or the Receiver;

d. Excusing debts owed to the Receivership Defendant;

e. Failing to notify the Receiver of any asset, including accounts, of 

the Receivership Defendant held in any name other than the name of the Receivership 

Defendant, or by any person or entity other than the Receivership Defendant, or failing to 

provide any assistance or information requested by the Receiver in connection with obtaining 

possession, custody, or control of such assets;

f. Doing any act or refraining from any act whatsoever to interfere 

with the Receiver’s taking custody, control, possession, or managing of the assets or documents 

subject to this receivership; or to harass or interfere with the Receiver in any way; or to interfere 

in any manner with the exclusive jurisdiction of this Court over the assets or documents of the 

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Receivership Defendant; or to refuse to cooperate with the Receiver or the Receiver’s duly 

authorized agents in the exercise of their duties or authority under any Order of this Court; or

g. Filing, or causing to be filed, any petition on behalf of the 

Receivership Defendant for relief under the United States Bankruptcy Code, 11 U.S.C. § 101 et 

seq., without prior permission from this Court.

D. DELIVERY OF RECEIVERSHIP PROPERTY

IT IS FURTHER ORDERED that:

1. Immediately upon service of this Order upon them, or within such period 

as may be permitted by the Receiver, the CBC Defendants or any other person or entity shall 

transfer or deliver possession, custody, and control of the following to the Receiver:

a. All assets of the Receivership Defendant, including assets subject 

to repatriation pursuant to Section IX, infra;

b. All documents of the Receivership Defendant, including, but not 

limited to, books and records of accounts, all financial and accounting records, balance sheets, 

income statements, bank records (including monthly statements, canceled checks, records of wire 

transfers, and check registers), client lists, title documents and other papers;

c. All assets belonging to members of the public now held by the 

Receivership Defendant; and

d. All keys, codes, and passwords necessary to gain or to secure 

access to any assets or documents of the Receivership Defendant, including, but not limited to, 

access to their business premises, means of communication, accounts, computer systems, mail 

boxes, or other property. This includes providing the necessary means to gain access to 

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commercial mail boxes, including, but not limited to 8605 Santa Monica Boulevard, #81601, Los 

Angeles, California 90069, and 340 S. Lemon Avenue, #8881, Walnut, California 91789.

2. In the event any person or entity fails to deliver or transfer any 

receivership asset or document or otherwise fails to comply with any provision of this Section, 

the Receiver may file an Affidavit of Non-Compliance regarding the failure. Upon filing of the 

affidavit, the Court may authorize, without additional process or demand, Writs of Possession or 

Sequestration or other equitable writs requested by the Receiver. The writs shall authorize and 

direct the United States Marshal or any sheriff or deputy sheriff of any county, or any other 

federal or state law enforcement officer, to seize the asset, document, or other thing and to 

deliver it to the Receiver.

E. TRANSFER OF FUNDS TO THE RECEIVER

IT IS FURTHER ORDERED that, upon service of a copy of this Order, all financial 

institutions, finance companies, commercial lending companies, credit card processing agents or 

agents providing electronic funds transfer services or automated clearing house processing, 

brokerage houses, escrow agents, money market or mutual funds, title companies, commodity 

futures merchants, commodity trading companies, precious metal dealers, trustees, or other 

financial institutions or depositories of any kind, shall cooperate with all reasonable requests of 

the Receiver relating to implementation of this Order, including transferring funds at his or her 

direction and producing records related to the assets of the Receivership Defendant.

F. STAY OF ACTIONS

IT IS FURTHER ORDERED that:

1. Except by leave of this Court, during pendency of the receivership ordered 

herein, the CBC Defendants and all other persons and entities be and hereby are stayed from 

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taking any action to establish or enforce any claim, right, or interest for, against, on behalf of, in, 

or in the name of, the Receivership Defendant, any of its subsidiaries, affiliates, partnerships, 

assets, documents, or the Receiver or the Receiver’s duly authorized agents acting in their 

capacities as such, including, but not limited to, the following actions:

a. Commencing, prosecuting, continuing, entering, or enforcing any 

suit or proceeding, except that such actions may be filed to toll any applicable statute of 

limitations;

b. Accelerating the due date of any obligation or claimed obligation; 

filing, perfecting or enforcing any lien; taking or attempting to take possession, custody, or 

control of any asset; attempting to foreclose, forfeit, alter, or terminate any interest in any asset, 

whether such acts are part of a judicial proceeding, are acts of self-help, or otherwise, or setoff of 

any debt owing to the Receivership Defendant that arose before the date of this Order against any 

claim against the Receivership Defendant;

c. Executing, issuing, serving, or causing the execution, issuance or 

service of, any legal process, including, but not limited to, attachments, garnishments, 

subpoenas, writs of replevin, writs of execution, or any other form of process whether specified 

in this Order or not; or

d. Doing any act or thing whatsoever to interfere with the Receiver 

taking custody, control, possession, or management of the assets or documents subject to this 

receivership, or to harass or interfere with the Receiver in any way, or to interfere in any manner 

with the exclusive jurisdiction of this Court over the assets or documents of the Receivership 

Defendant.

2. This Order does not stay:

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a. The commencement or continuation of a criminal action or 

proceeding;

b. The commencement or continuation of an action or proceeding by 

a governmental unit to enforce such governmental unit’s police or regulatory power; or

c. The enforcement of a judgment, other than a money judgment, 

obtained in an action or proceeding by a governmental unit to enforce such governmental unit’s 

police or regulatory power.

3. Except as otherwise provided in this Order, all persons and entities in need 

of documentation from the Receiver shall in all instances first attempt to secure such information 

by submitting a formal written request to the Receiver, and, if such request has not been 

responded to within thirty (30) days of receipt by the Receiver, any such person or entity may 

thereafter seek an Order of this Court with regard to the relief requested.

G. COMPENSATION OF RECEIVER

IT IS FURTHER ORDERED that the Receiver and all personnel hired by the Receiver 

as herein authorized, including counsel to the Receiver and accountants, are entitled to 

reasonable compensation for the performance of duties pursuant to this Order and for the cost of 

actual out-of-pocket expenses incurred by them, from the assets now held by, or in the 

possession or control of, or which may be received by the Receivership Defendant. The 

Receiver shall file with the Court and serve on the parties periodic requests for the payment of 

such reasonable compensation, with the first such request filed no more than sixty (60) days after 

the date of this Order. The Receiver shall not increase the hourly rates used as the bases for such 

fee applications without prior approval of the Court.

H. RECEIVER’S BOND

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IT IS FURTHER ORDERED that the Receiver, unless previously filed pursuant to the 

TRO, shall file with the Clerk of this Court a bond in the sum of $10,000.00 with sureties to be 

approved by the Court, conditioned that the Receiver will well and truly perform the duties of the 

office and abide by and perform all acts the Court directs.

VIII.

ACCESS TO BUSINESS PREMISES

IT IS FURTHER ORDERED that the CBC Defendants, and their officers, agents, 

servants, employees, and attorneys, and all other persons in active concert or participation with 

any of them, who receive actual notice of this Order by personal service or otherwise, whether 

acting directly or through any trust, corporation, subsidiary, division, or other device, and the 

Receiver, shall allow the FTC’s representatives, agents, and assistants, as well as the 

Receivership Defendant’s representatives, and the Individual Defendants themselves, reasonable 

access to all of the Receivership Defendant’s business premises, or any other premises where the 

Receivership Defendant conducts business or customer service operations.

The purpose of this access shall be to inspect and copy any and all books, records, 

documents, accounts, and other property owned by, or in the possession of, the Receivership 

Defendant or its agents. The Receiver shall have the discretion to determine the time, manner, 

and reasonable conditions of such access. The FTC may remove materials from the 

Receivership Defendant’s business premises to inspect, inventory, and copy such materials. The 

FTC shall return materials so removed within five (5) business days of completing said inventory 

and copying. The FTC’s access to Defendants’ documents pursuant to this Section shall not 

provide grounds for any Defendant to object to any subsequent request for documents served by 

any Plaintiff.

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IX.

REPATRIATION OF ASSETS AND DOCUMENTS

IT IS FURTHER ORDERED that the CBC Defendants shall:

A. Unless previously completed in full compliance with the TRO, within three (3) 

business days following service of this Order, take such steps as are necessary to repatriate to the 

territory of the United States of America all documents and assets that are located outside such 

territory and are held by or for the CBC Defendants or are under the CBC Defendants’ direct or 

indirect control, jointly, severally, or individually;

B. Unless previously completed in full compliance with the TRO, within three (3) 

business days following service of this Order, provide the FTC with a full accounting of all 

documents and assets that are located outside of the territory of the United States of America or 

that have been transferred to the territory of the United States of America pursuant to Subsection 

A above and are held by or for any CBC Defendant or are under any CBC Defendant’s direct or 

indirect control, jointly, severally, or individually, including the names and addresses of any 

foreign or domestic financial institution or other entity holding the documents and assets, along 

with the account numbers and balances;

C. Hold and retain all such documents and assets and prevent any transfer, 

disposition, or dissipation whatsoever of any such documents or assets; and

D. Unless previously completed in full compliance with the TRO, within three (3) 

business days following service of this Order, provide the FTC access to the CBC Defendants’ 

records and documents held by financial institutions or other entities outside the territory of the 

United States of America, by signing and delivering to FTC counsel the Consent to Release of 

Financial Records attached to the TRO as Attachment A.

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X.

INTERFERENCE WITH REPATRIATION

IT IS FURTHER ORDERED that the CBC Defendants are hereby restrained and 

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

dissipation of foreign assets, or in the hindrance of the repatriation required by the preceding 

Section IX of this Order, including, but not limited to:

A. Sending any statement, letter, facsimile, e-mail or wire transmission, or 

telephoning or engaging in any other act, directly or indirectly, that results in a determination by 

a foreign trustee or other entity that a “duress” event has occurred under the terms of a foreign 

trust agreement, until such time that assets have been fully repatriated pursuant to the preceding 

Section of this Order; and

B. Notifying any trustee, protector or other agent of any foreign trust or other related 

entities of either the existence of this Order, or of the fact that repatriation is required pursuant to 

a Court Order, until such time as assets have been fully repatriated pursuant to the preceding 

Section of this Order.

XI.

DISTRIBUTION OF ORDER BY THE CBC DEFENDANTS

IT IS FURTHER ORDERED that the CBC Defendants shall immediately provide a 

copy of this Order to each of their corporations, subsidiaries, affiliates, partners, divisions, sales 

entities, successors, assigns, members, officers, directors, employees, independent contractors, 

agents, servants, attorneys, spouses, representatives, and any other persons in active concert or 

participation with them. Within five (5) calendar days following service of this Order, the CBC 

Defendants shall file with this Court and serve on the FTC an affidavit identifying the name, 

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title, addresses, telephone numbers, date of service, and manner of service of the persons and 

entities the CBC Defendants have served with a copy of this Order in compliance with this 

provision.

XII.

SERVICE OF THIS ORDER

IT IS FURTHER ORDERED that copies of this Order may be distributed by United 

States First Class Mail, overnight delivery, facsimile, electronic mail, or personally, by agents or 

employees of the FTC, by agents or employees of the Receiver, by any law enforcement agency, 

or by private process server, upon any person, financial institution, or other entity that may have 

possession or control of any property, property right, document, or asset of any CBC Defendant, 

or that may be subject to any provision of this Order. Service upon any branch or office of any 

financial institution or entity shall effect service upon the entire financial institution or entity.

XIII.

CONSUMER REPORTING AGENCIES

IT IS FURTHER ORDERED that, pursuant to Section 604 of the Fair Credit Reporting 

Act, 15 U.S.C. § 1681b, any consumer reporting agency may furnish a consumer or credit report 

concerning any CBC Defendant to the FTC.

XIV.

SERVICE UPON PLAINTIFF

IT IS FURTHER ORDERED that the CBC Defendants shall serve all pleadings, 

memoranda, correspondence, affidavits, declarations, or other documents related to this Order or 

the FTC’s motion for a preliminary injunction by: (1) e-mail at gward@ftc.gov and 

slevine1@ftc.gov; and (2) facsimile transmission to the FTC at (312) 960-5600, hand delivery to 

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the offices of the FTC at 55 West Monroe Street, Suite 1825, Chicago, Illinois 60603, to the 

attention of Guy G. Ward and Samuel A.A. Levine, or overnight shipment through a third-party 

commercial carrier for delivery at the address listed above.

XV.

RETENTION OF JURISDICTION

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

all purposes.

SO ORDERED, this 21st day of February, 2017.

__________________________________

Honorable Matthew F. Kennelly

United States District Judge

Northern District of Illinois

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