UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF FLORIDA 

CASE NO. 19-81419-CIV-ALTMAN/Brannon 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

DEVUMI, LLC, et al., 

Defendants. 

_________________________________/ 

STIPULATED ORDER FOR PERMANENT INJUNCTION 

AND MONETARY JUDGMENT 

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its Complaint for 

Permanent Injunction and Other Equitable Relief (“Complaint”), for a permanent injunction and 

other equitable relief in this matter, pursuant to Section 13(b) of the Federal Trade Commission 

Act (“FTC Act”), 15 U.S.C. § 53(b). The Commission and Defendants stipulate to the entry of this 

Stipulated Order for Permanent Injunction and Monetary Judgment (“Order”) to resolve all matters 

in dispute in this action between them. 

Accordingly, the Court hereby ORDERS AND ADJUDGES as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive acts or practices 

in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), in connection with the sale of fake 

indicators of social media influence. 

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3. Defendants neither admit nor deny any of the allegations in the Complaint, except 

as specifically stated in this Order. Only for purposes of this action, Defendants admit the facts 

necessary to establish jurisdiction. 

4. Defendants waive any claim that they 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 agree to bear their own costs and attorney fees. 

5. Defendants 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. “Defendants” means the Individual Defendant and the Corporate Defendant, 

individually, collectively, or in any combination. 

1. “Corporate Defendant” means Devumi, LLC, and its successors and 

assigns. 

2. “Individual Defendant” means German Calas, Jr. 

B. “Indicators of Social Media Influence” means any metrics used to assess an 

individual’s or entity’s social media influence, such as followers, friends, connections, subscribers, 

views, plays, likes, reposts, and comments. 

ORDER 

I. BAN ON SELLING SOCIAL MEDIA INFLUENCE 

IT IS ORDERED that Defendants, and Defendants’ officers, agents, 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, whether acting directly or indirectly, must not sell, or assist others in 

selling, Indicators of Social Media Influence to users of third-party social media platforms. 

II. PROHIBITION AGAINST MISREPRESENTATIONS REGARDING SOCIAL 

MEDIA INFLUENCE, REVIEWS, OR ENDORSEMENTS 

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 promoting or 

offering for sale any product or service, must not make any misrepresentation, or assist others in 

making any misrepresentation, expressly or by implication: 

A. About the social media influence of any person or entity; or 

B. In or about any review or endorsement of any person, entity, product, or service. 

III. MONETARY JUDGMENT 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of $2.5 million is entered in favor of the Commission 

against Individual Defendant, as equitable monetary relief. 

B. Individual Defendant is ordered to pay to the Commission $250,000 as follows: 

1. $50,000 dollars on or before July 22, 2019 or within 7 days of entry of this 

Order, whichever is later; and 

2. $200,000 dollars within 365 days of entry of this Order. 

C. Such payments to the Commission must be made by electronic fund transfer in 

accordance with instructions previously provided by a representative of the Commission. 

D. Upon Individual Defendant’s making all payments pursuant to Subsection B. 

above, the remainder of the judgment is suspended, subject to the Subsections below. 

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E. In the event Individual Defendant fails to make any payment required by this 

Subsection B. above within the time for such payment specified in that Subsection, Individual 

Defendant shall be in default and the full amount of the judgment shall immediately become due, 

plus interest from the date of entry of this judgment pursuant to 28 U.S.C. § 1961, less any 

payments already made. Provided, however, that in the event of default, the judgment amount set 

forth in Subsection A. above shall not become due if the Individual Defendant cures such default 

within 21 calendar days. 

F. After the expiration of the time to cure the default, the Commission shall be entitled 

to immediately exercise any and all rights and remedies against the Individual Defendant and his 

property to collect the full amount of the judgment amount set forth in Subsection A. above and 

interest thereon, less any payments already made. 

G. The Commission’s agreement to the suspension of part of the judgment is expressly 

premised upon the truthfulness, accuracy, and completeness of Individual Defendant’s sworn 

financial statements and related documents (collectively, “financial representations”) submitted to 

the Commission, namely: 

1. the Financial Statement of Individual Defendant German Calas, Jr., signed 

on April 1, 2018, together with Attachments A through E and 24A through 

24E; and 

2. the representations and additional documentation submitted by Defendants’ 

counsel Jeffrey Alberts to Commission Counsel Richard Cleland and 

Michael Ostheimer dated April 16, 2019, and April 24, 2019. 

H. The suspension of the judgment will be lifted as to Individual Defendant if, upon 

motion by the Commission, the Court finds that he failed to disclose any material asset, materially 

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

financial representations identified above. 

J. If the suspension of the judgment is lifted, the judgment becomes immediately due 

as to Individual Defendant in the amount specified in Subsection A. above (which the parties 

stipulate only for purposes of this Section represents the consumer injury alleged in the 

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

from the date of entry of this Order. 

IV. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. 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. 

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, such as a 

nondischargeability complaint in any bankruptcy case. 

C. The facts alleged in the Complaint establish all elements necessary to sustain an 

action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. 

§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes. 

D. Defendants acknowledge that their Taxpayer Identification Numbers (Social 

Security Numbers or Employer Identification Numbers), which Defendants previously submitted 

to the Commission, may be used for collecting and reporting on any delinquent amount arising out 

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

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

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

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

representative of the Commission decides that direct redress to consumers is wholly or partially 

impracticable or money remains after redress is completed, the Commission may apply any 

remaining money for such other equitable relief (including consumer information remedies) as it 

determines to be reasonably related to 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 Commission or its representatives may take 

pursuant to this Subsection. 

V. CUSTOMER INFORMATION 

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: 

A. 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 in connection with Corporate Defendant’s 

advertising, marketing, distribution, or sale of Indicators of Social Media Influence; and 

B. failing to destroy such customer information in all forms in his possession, custody 

or control within 30 days after receipt of written direction to do so from a representative of the 

Commission. 

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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. 

VI. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of this 

Order: 

A. Each Defendant, within 7 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 3 years after entry of this Order, 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 Corporate Defendant, must deliver a copy of this Order to: (1) 

all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and 

representatives having managerial responsibilities for the conduct specified in Sections I and II; 

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. 

VII. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

Commission: 

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A. Ninety days 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 Commission may use to communicate with Defendant; (b) 

identify all of that Defendant’s businesses by all of their names, telephone numbers, 

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

each business, including the goods and services offered, the means of advertising, 

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

Individual Defendant 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 Commission. 

2. Additionally, 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 10 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: 

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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. 

2. Additionally, 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 Commission 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 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, 

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Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Washington, DC 20580. The subject line must begin: FTC v. Devumi, LLC. 

VIII. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for 10 years after 

entry of the Order, and retain each such record for 5 years. Specifically, Corporate Defendant in 

connection with any activity subject to this Order and 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 goods or services sold; 

B. personnel records showing, for each person providing services, whether as an 

employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; 

dates of service; and (if applicable) the reason for termination; 

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

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

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

Order, including all submissions to the Commission; and 

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

IX. COMPLIANCE MONITORING 

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

with this Order, including 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 

Commission, each Defendant must: submit additional compliance reports or other requested 

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

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

without further leave of court, using any of the procedures prescribed by Federal Rules of Civil 

Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

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

directly with each Defendant. Defendant must permit representatives of the Commission 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 Commission 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 Commission’s lawful use of compulsory process, pursuant 

to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

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

reporting agency must furnish consumer reports concerning Individual Defendant, pursuant to 

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

X. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes 

of construction, modification, and enforcement of this Order. 

DONE AND ORDERED in Fort Lauderdale, Florida this 22nd day of October 2019. 

_________________________________ 

ROY K. ALTMAN 

UNITED STATES DISTRICT JUDGE 

cc: counsel of record 

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