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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 1 of 37 Page ID #:1 

MICHAEL E. TANKERSLEY 

mtankersley@ftc.gov; (202) 326-2991

DANIEL O. HANKS 

dhanks@ftc.gov; (202) 236-2472

Federal Trade Commission 

600 Pennsylvania Avenue NW

Washington, DC 20580 

Fax: (202) 326-3768 

MATTHEW H. FINE (Local Counsel) (CA Bar. No. 300808) 

mfine@ftc.gov

Federal Trade Commission 

10990 Wilshire Blvd, Suite 400 

Los Angeles, CA 90024 

Tel: (310) 824-4300 

Fax: (310) 824-4380 

ATTORNEYS FOR PLAINTIFF 

FEDERAL TRADE COMMISSION 

UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

vs. 

ITMEDIA SOLUTIONS LLC, 

DEV.XYZ LLC, TEAM.XYZ LLC, 

123 LLC, XYZ LLC, GREAT LLC, 

General LLC, MEDIA LLC, 

ADV MARKET DIRECT LLC, 

Direct Ad Sales LLC, 

MARKETING SOLUTIONS 33 LLC, 

DEC MKT LLC, Ads Full3 LLC, 

Sunset Marketing Services LLC,

Arrow Eagle, LLC,Arrow Hawk, LLC,

Gen Ads, LLC, Michael Ambrose, Daniel Negari, Jason Ramin, Grant 

Carpenter, Anisha Hancock, and 

Sione Kaufusi, 

Defendants. 

Case Number: 2:22-CV-00073 

COMPLAINT FOR CIVIL 

PENALTIES, PERMANENT 

INJUNCTION, AND OTHER 

RELIEF 
 

 

 

 

 

 

 

 

 

 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 2 of 37 Page ID #:2 

Plaintiff, the Federal Trade Commission (“FTC”), for its complaint alleges: 

1. Plaintiff brings this action under Sections 5(a), 13(b), and 16(a) of the 

Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 45(a), 53(b), and 

56(a)(1), and Section 621(a) of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. 

§ 1681s(a), to obtain civil penalties, preliminary and permanent injunctive relief, 

and other equitable relief for Defendants’ acts or practices in violation of Section 

5(a) of the FTC Act, 15 U.S.C. § 45(a), and Sections 604 and 607 of the FCRA, 15 

U.S.C. §§ 1681b and 1681e. 

JURISDICTION AND VENUE 

2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. 

§§ 1331, 1337(a), 1345, and 1355. 

3. Venue is proper in this District under 28 U.S.C. § 1391(b)(2) and 15 

U.S.C. § 53(b). 

PLAINTIFF 

4. The FTC is an independent agency of the United States Government 

created by statute, which authorizes the FTC to commence this district court civil 

action by its own attorneys. 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. The FTC also enforces the FCRA, which 

protects the privacy of consumer financial information by limiting the provision 

and use of consumer credit reports. 15 U.S.C. §§ 1681-1681x. 

DEFENDANTS 

Corporate Defendants 

5. Defendant ITMEDIA SOLUTIONS LLC (“ITMedia Solutions”) is a 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 3 of 37 Page ID #:3 

California Limited Liability Company with its principal place of business at 2800 

Olympic Blvd., Santa Monica, CA 90404. Defendant ITMedia Solutions is the 

successor to California corporations IT Media, Inc., and Cash Now, Inc. IT Media, 

Inc., absorbed Cash Now, Inc., by merger in December 2014, and ITMedia 

Solutions took over the merged corporations when IT Media, Inc., was dissolved in 

December 2018. ITMedia Solutions (through IT Media, Inc.) and co-Defendants 

TEAM.XYZ LLC and DEV.XYZ, LLC, are successors to Cyber2Media, Inc., a 

California corporation that was dissolved in September 2016. 

6. Defendant DEV.XYZ LLC is a California Limited Liability Company 

with its principal place of business at 2800 Olympic Blvd., Santa Monica, CA 

90404. 

7. Defendant TEAM.XYZ LLC is a California Limited Liability 

Company with its principal place of business at 2800 Olympic Blvd., Santa 

Monica, CA 90404. 

8. Defendant 123 LLC is a Nevada Limited Liability Company with its 

principal place of business at 2800 Olympic Blvd., Santa Monica, CA 90404, and a 

registered address at 318 North Carson Street, Suite 208, Carson City, NV 89701. 

Defendant 123 LLC is a holding company that is the sole owner of Defendants 

ITMedia Solutions, DEV.XYZ LLC, and TEAM.XYZ LLC. 

9. Defendant XYZ LLC is a Nevada Limited Liability Company with its 

principal place of business at 2800 Olympic Blvd., Santa Monica, CA 90404 and a 

registered address at 2121 E. Tropicana Ave, Suite 2, Las Vegas, NV 89119. 

Defendant XYZ LLC is a holding company that is the sole owner Defendant 123 

LLC. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 4 of 37 Page ID #:4 

10. Defendants ITMedia Solutions, DEV.XYZ LLC, TEAM.XYZ LLC, 

123 LLC, and XYZ LLC are collectively referenced in this Complaint as 

“ITMedia.” At all times material to this Complaint, Defendants XYZ LLC, 123 

LLC, and their wholly owned subsidiaries, ITMedia Solutions, DEV.XYZ LLC, 

and TEAM.XYZ LLC, or their predecessors, acting alone or in concert with others, 

advertised online loan-finding services to consumers throughout the United States, 

and marketed and sold lead generation services to businesses throughout the 

United States. 

11. In the course of the activities described in this Complaint, ITMedia 

controlled and used the following twelve limited liability companies as 

instrumentalities to acquire information about consumers, to market lead 

generation services to businesses throughout the United States, and to collect 

payments in exchange for leads and information about consumers: Defendants 

GREAT LLC, General LLC, MEDIA LLC, ADV MARKET DIRECT LLC, Direct 

Ad Sales LLC, MARKETING SOLUTIONS 33, LLC, DEC MKT LLC, Ads Full3 

LLC, Sunset Marketing Services LLC, Arrow Eagle, LLC, Arrow Hawk, LLC, and 

Gen Ads, LLC (referred to collectively herein as the “ITMedia-Controlled LLCs”). 

All business performed in the name of the ITMedia-Controlled LLCs, including 

website design, data transmission, and buying and selling consumer information, 

has been conducted by ITMedia as agent of an ITMedia-Controlled LLC or of a 

principal of an ITMedia-Controlled LLC. 

a. Defendant GREAT LLC (“Great LLC”) is a Nevada Limited Liability 

Company that has registered its address as 3315 Hwy 50, Silver Springs, 

NV, 89429. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 5 of 37 Page ID #:5 

b. Defendant General LLC is a Nevada Limited Liability Company that has 

registered its address as 560 East 200 North, Suite 18, Roosevelt, UT 

84066. 

c. Defendant MEDIA LLC (“Media LLC”) is a Nevada Limited Liability 

Company that has registered its address as 560 East 200 North, Suite 18, 

Roosevelt, UT 84066. 

d. Defendant ADV MARKET DIRECT LLC (“Adv Market Direct LLC”) is 

a Utah Limited Liability Company that has registered its address as 560 

East 200 North, Suite 18, Roosevelt, UT 84066. 

e. Defendant Direct Ad Sales LLC is a Utah Limited Liability Company 

that has registered its address as 560 East 200 North, Suite 18, Roosevelt, 

UT 84066. 

f. Defendant MARKETING SOLUTIONS 33 LLC (“Marketing Solutions 

33”) is a Utah Limited Liability Company that has registered its address 

as 560 East 200 North, Suite 18, Roosevelt, UT 84066. 

g. Defendant DEC MKT LLC (“Dec Mkt LLC”) is a Utah Limited Liability 

Company that has registered its address as 72 North 300 East, Suite A, 

Roosevelt, UT 84066. 

h. Defendant Ads Full3 LLC is a Utah Limited Liability Company that has 

registered its address as 72 North 300 East, Suite A, Roosevelt, UT 

84066. 

i. Defendant Sunset Marketing Services LLC is a Utah Limited Liability 

Company that has registered its address as 72 North 300 East, Suite A, 

Roosevelt, UT 84066. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 6 of 37 Page ID #:6 

j. Defendant Arrow Eagle, LLC, is a Limited Liability Company organized 

under the laws of the Ute Indian Tribe and registered in Utah with the 

address 278 East 1875 South, Roosevelt, UT 84066. 

k. Defendant Arrow Hawk, LLC, is a Limited Liability Company organized 

under the laws of the Ute Indian Tribe and registered in Utah with the 

address 278 East 1875 South, Roosevelt, UT 84066. 

l. Defendant Gen Ads, LLC, is a Limited Liability Company organized 

under the laws of the Ute Indian Tribe and registered in Utah with the 

address 278 East 1875 South, Roosevelt, UT 84066. 

Individuals 

12. Defendant Michael Ambrose, as owner of one-half interest in 

Defendant XYZ LLC, owns a one-half interest in its subsidiaries, Defendants 123 

LLC, ITMedia Solutions, DEV.XYZ LLC, and TEAM.XYZ LLC. He is co-owner 

of Defendant Great LLC, was Chief Operating Officer of ITMedia Solutions and 

its predecessor, ITMedia, Inc., and was a co-owner of ITMedia, Inc. Defendant 

Ambrose was a founder, member, and managing officer of Defendants General 

LLC and Media LLC, and, until 2015, a co-owner of these companies. At all times 

material to this Complaint, acting alone or in concert with others, he has 

formulated, directed, controlled, had the authority to control, or participated in the 

acts and practices set forth in this Complaint. Defendant Ambrose, in connection 

with the matters alleged herein, transacts or has transacted business in this District 

and throughout the United States. 

13. Defendant Daniel Negari, as owner of one-half interest in Defendant 

XYZ LLC, owns a one-half interest in its subsidiaries Defendants 123 LLC, 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 7 of 37 Page ID #:7 

ITMedia Solutions, DEV.XYZ LLC, and TEAM.XYZ LLC. He is co-owner of 

Defendant Great LLC, was a co-owner and Chief Executive Officer of ITMedia 

Solutions and its predecessor, ITMedia, Inc., and was a co-owner of ITMedia, Inc. 

Defendant Negari was a founder, member, and managing officer of Defendants 

General LLC and Media LLC, and, until 2015, a co-owner of these companies. At 

all times material to this Complaint, acting alone or in concert with others, he has 

formulated, directed, controlled, had the authority to control, or participated in the 

acts and practices set forth in this Complaint. Defendant Negari, in connection 

with the matters alleged herein, transacts or has transacted business in this District 

and throughout the United States. 

14. Defendant Jason Ramin has been Chief Executive Officer of 

Defendant ITMedia Solutions since August 2019. Prior to August 2019, 

Defendant Ramin was the Vice President for Business Operations of Defendant 

ITMedia Solutions and its predecessor, IT Media, Inc. Defendant Ramin has also 

acted as an officer of Defendant General LLC. At all times material to this 

Complaint, acting alone or in concert with others, he has formulated, directed, 

controlled, had the authority to control, or participated in the acts and practices set 

forth in this Complaint. Defendant Ramin, in connection with the matters alleged 

herein, transacts or has transacted business in this District and throughout the 

United States. 

15. Defendant Grant Carpenter is the sole manager of Defendant ITMedia 

Solutions and, as its chief officer, is responsible for its day-to-day operations. 

Defendant Carpenter is also general counsel and chief compliance officer for 

Defendants ITMedia Solutions, DEV.XYZ LLC, TEAM.XYZ LLC, 123 LLC, and 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 8 of 37 Page ID #:8 

XYZ LLC. Defendant Carpenter also manages Great LLC and is responsible for 

authorizing ITMedia Solutions LLC to conduct business in the name of Great LLC. 

Defendant Carpenter is responsible for approving lead sales contracts in the name 

of Defendants Anisha Hancock and Sione Kaufusi for Defendants General LLC, 

Media LLC, Ads Full3 LLC, Adv Market Direct LLC, Dec Mkt LLC, Direct Ad 

Sales LLC and Gen Ads, LLC, including by executing agreements on their behalf. 

At all times material to this Complaint, acting alone or in concert with others, he 

has formulated, directed, controlled, had the authority to control, or participated in 

the acts and practices set forth in this Complaint. Defendant Carpenter, in 

connection with the matters alleged herein, transacts or has transacted business in 

this District and throughout the United States. 

16. Defendant Anisha Hancock is the owner of Defendants General LLC, 

Media LLC, Ads Full3 LLC, Adv Market Direct LLC, Dec Mkt LLC, Direct Ad 

Sales LLC, Marketing Solutions 33, and Sunset Marketing Services LLC. 

Defendant Hancock has given ITMedia unqualified authority to conduct lead 

generation operations in her name and the name of the limited liability companies 

that she owns. Since 2015, acting alone or in concert with others, she has had the 

authority to control the acts and practices set forth in this Complaint. Defendant 

Hancock, in connection with the matters alleged herein, transacts or has transacted 

business in this District and throughout the United States. 

17. Defendant Sione Kaufusi is the owner of Arrow Eagle, LLC, Arrow 

Hawk, LLC, and Gen Ads, LLC. Defendant Kaufusi has given ITMedia 

unqualified authority to conduct lead generation operations in his name and the 

name of Arrow Eagle, LLC, Arrow Hawk, LLC, and Gen Ads, LLC. Since 2016, 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 9 of 37 Page ID #:9 

he has had the authority to control the acts and practices set forth in this 

Complaint. Defendant Kaufusi, in connection with the matters alleged herein, 

transacts or has transacted business in this District and throughout the United 

States. 

Common Enterprise 

18. ITMedia and the ITMedia-Controlled LLCs (collectively, “Corporate 

Defendants”) have operated as a common enterprise while engaging in the 

deceptive, unfair, and unlawful acts and practices alleged below. Corporate 

Defendants have conducted the business practices described below through an 

interrelated network of companies. The companies that comprise ITMedia have 

common ownership, managers, business functions, employees, and office 

locations. The ITMedia-Controlled LLCs have common control, and have shared 

contracting, business practices, funds, and assets. Because the Corporate 

Defendants have operated as a common enterprise, each of them is liable for the 

acts and practices alleged below. 

COMMERCE 

19. At all times material to this Complaint, Defendants maintained a 

substantial course of trade in or affecting commerce, as “commerce” is defined in 

Section 4 of the FTC Act, 15 U.S.C. § 44. 

DEFENDANTS’ BUSINESS ACTIVITIES 

20. ITMedia creates and operates websites that urge consumers to 

complete detailed online loan applications, including social security information. 

To induce consumers to submit their data, ITMedia has represented that the loan 

applications it solicits from them will be circulated to a “trusted network of 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 10 of 37 Page ID #:10 

lenders” to secure loan offers. In reality, ITMedia distributes and sells information 

from these loan applications as “leads” to a variety of entities without regard to 

whether these entities are lenders or use the consumers’ data to make loans. 

ITMedia also has enticed loan applicants with misleading representations that its 

service will provide loans that involve no consideration of credit history. 

Additionally, ITMedia has used and has permitted others to use consumers’ credit 

scores for impermissible purposes. 

ITMedia Solicits Consumer Loan Applications 

21. Since December 2012, ITMedia has operated at least 200 Internet 

sites where it posts advertising that targets consumers seeking online payday loans, 

consumers with poor credit, and consumers seeking personal and installment loans 

for as much as $35,000. The domains that ITMedia has used to operate these sites 

include: 

badcreditloans.com borrowspot.com mobileloans.com 

personalloans.com burstloans.com mypaydayloans.com 

cashadvance.com cashnow.com onlinepaydayloans.com 

cashusa.com cashtoday.com paydayadvance.com 

signatureloan.com fast-loans.net paydayloannow.com 

badcredit.com fastmoney.com paydayloans.com. 

22. ITMedia’s Internet sites represent that they find loans for consumers 

who complete an online form that ITMedia has described as a loan application or 

request. Appendices 1-6 contain examples of ITMedia’s Internet sites. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 11 of 37 Page ID #:11 

ITMedia Represents that the Information Consumers Provide Will Be Shared

With Trusted Lenders to Secure Loans 

23. To induce consumers to complete loan applications, ITMedia has 

published websites that assure consumers that it will share the information 

provided by each consumer with qualified and trustworthy loan providers, and that 

it only shares consumers’ information to find a loan for the consumer. ITMedia 

has conveyed these messages through the following statements and similar 

statements on its websites: 

• We only share your information with our network of trusted 

lenders, lending partners and financial service providers, in 

an attempt to connect you with a lender or lending partner 

that can offer you a loan. (signatureloan.com, 2020) 

• Customers simply fill out our secure online form, then hit the 

SUBMIT button. From there, your protected data will only be 

shared with qualified lenders. (cashadvance.com, FAQ, 2017) 

• [W]e serve as a connector between potential online loan 

borrowers and the skilled members of our trusted nationwide 

lending network. The PaydayAdvance.com affiliate lenders 

have been carefully chosen on the basis of their reputability 

and trustworthiness, as well as their ability to provide people 

with quick and easy access to needed funds. 

(PaydayAdvance.com 2017, Rates & Fees) 

• MobileLoans.com connects consumers with an entire 

network of lenders who offer a variety of loans. We present 

your information to our vast network of trusted lenders and 

allow you to decide if the loan offer presented suits your 

needs. (Mobileloans.com 2020, How it Works) 

• SignatureLoan.com only works with professional lenders and 

lending partners who engage in responsible lending 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 12 of 37 Page ID #:12 

practices and are authorized to lend money in the form of 

signature loans to consumers. (signatureloan.com 2020, bestlending-practices) 

24. ITMedia’s loan forms reinforce these website representations that 

ITMedia conveys the details requested in its loan forms to loan providers only. For 

example, personalloans.com contained the following representations next to the 

boxes seeking detailed information from consumers regarding their application or 

request for a loan: 

Why do we need this information? 

Don't worry - our lenders and lending partners review 

requests for all credit and loan types. We simply ask for 

this information to help ensure that you are connected 

with a lender or lending partner that can work for you! 

Providing us with accurate, up-to-date information is 

essential to being considered for a loan. 

Contact Information 

We collect this information because, if you are approved, 

lenders or lending partners will often reach out to you 

quickly to confirm your loan. 

Employment Information 

Our lenders and lending partners require this information 

to consider you for a loan. 

Identity and Bank Information 

Lenders and lending partners must be able to verify your 

identity when reviewing your request. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 13 of 37 Page ID #:13 

ITMedia Has Represented that Loans are Available

Regardless of Credit Rating or History 

25. At certain sites, ITMedia has also represented that loans are available 

without regard for credit scores or history to consumers who complete ITMedia’s 

loan forms. For example, ITMedia has stated: 

• We're Here For You 

Every day, we help people like you secure loans regardless 

of your credit rating. We’re here to help you find solutions to 

your financial needs. 

(badcreditloans.com, 2020;Burstloans.com, 2020) 

• In the past, gaining access to loan funds required a pile of 

paperwork and a stellar credit history. Bad credit personal 

loans, however, can now be obtained quickly and without 

any credit score requirements. (badcreditloans.com/personalloans, 2020) 

• MobileLoans.com [Burstloans.com/CashUSA.com] lenders 

do not require credit scores and do not ask applicants to 

provide credit score details. Your credit score will not affect 

the fees and terms of your loan in any way. (Mobileloans.com 

2020, Rates and Fees; burstloans.com; Rates and Fees, 2020; 

CashUSA.com 2020, Rates and Fees) 

• Your credit history will neither hurt you chances of getting a 

cash advance nor have a negative effect on the interest 

rates and fees that you are charged. If you have poor credit 

or even no credit, then you still have the opportunity to get 

the cash you need. (DirectDepositLoans.com 2019, Why Cash 

Advance Payday Loans May Help with Your Emergency Cash 

Needs) 

Examples of advertising with these representations appear in Appendices 5 and 6. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 14 of 37 Page ID #:14 

ITMedia’s Representations to Consumers About Its Use of Consumer

Information Are Deceptive 

26. At sites that have made the representations set forth above, ITMedia 

has collected consumers’ Internet protocol address and online tracking data, and 

urges consumers to complete loan forms that require the following information: 

a) contact information, including names, residential addresses, email 

addresses, and telephone numbers; 

b) consumers’ birthdates, Social Security numbers, bank-routing and 

account numbers, and driver’s license and state identification 

numbers; 

c) information regarding the consumers’ resources, including whether 

and where consumers are employed, how long they have been 

employed, whether they own a home or a car, monthly income, and 

how frequently they are paid; 

d) consumers’ job titles and whether they are active members of the 

military; and 

e) consumers’ credit score range and reason for borrowing. 

27. ITMedia’s representations regarding the manner in which information 

required by its online forms will be distributed and used are important to 

consumers deciding whether to share their information because of concerns 

regarding unwanted marketing, invasion of privacy, and identity theft. 

28. Rather than connect consumers to lenders as promised, ITMedia 

distributes the consumer information it collects on these loan forms to a variety of 

entities in a lead marketplace in which the consumer data—including sensitive 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 15 of 37 Page ID #:15 

personal and financial information—is transmitted to prospective buyers. Entities 

participating in this marketplace bid against each other to purchase the opportunity 

to use the consumer information. 

29. Although ITMedia represents that it provides consumers’ information 

to entities that will offer loans to consumers, ITMedia in fact does not require that 

the entities that receive and bid to purchase consumer information, including 

complete loan applications, be loan providers. Furthermore, ITMedia does not 

require that these entities use the information they receive to offer loans. 

30. When ITMedia does not succeed in selling consumer information to 

prospective buyers in its lead marketplace, it offers information about such 

“declined” consumers to other entities seeking leads, marketing lists, or other 

compilations of consumer data from the loan applications. ITMedia also directs 

some of these declined consumers to online advertising for loans and non-loan 

product and services, in exchange for compensation from the entities advertising 

those products and services. 

31. ITMedia distributes leads, marketing information and other data with 

consumer information to entities that are not loan providers. Furthermore, 

ITMedia does not require that these entities use the information they receive to 

offer loans. 

32. Because ITMedia does not require that the recipients of the 

information collected on its loan forms be lenders, it has provided consumer 

information collected from loan applications to: 

a. businesses that are not lenders but illegally market loan products, 

including Lead Express, Inc., Camel Coins, Inc., and Sea Mirror, Inc., as 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 16 of 37 Page ID #:16 

described in Federal Trade Commission v. Lead Express, Inc., No. 20-

cv-00840 (D. Nev.); 

b. debt negotiation and credit repair servicers that do not provide loans; 

c. pre-paid debit card sellers; 

d. marketers that license the information to advertise to consumers through 

email, text messages and telemarketing, and are not required to use the 

information to offer loans; 

e. entities whose business and interest in the data is not known to ITMedia; 

and 

f. marketers and lead aggregators that share the consumer information with 

other entities whose identity, business, and interest in the information is 

not known to ITMedia. 

33. ITMedia seldom sells the information consumers submit in their loan 

applications to lenders. Since January 2016, for the overwhelming majority of 

consumers (i.e., more than 84%) who have submitted loan applications at an 

ITMedia website, ITMedia has either (i) sold the consumers’ information to 

entities that are not lenders (including non-lender aggregators, marketers, and 

companies whose use of the information is unspecified); (ii) used the consumers’ 

loan applications to create targeted marketing data for telemarketers, email 

advertisers, and other entities, or (iii) directed the consumers to online 

advertisements. 

34. Even when ITMedia provides information from consumers’ loan 

applications to entities that are loan providers, ITMedia does not require that they 

use the information to make loan offers. To the contrary, ITMedia permits and 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 17 of 37 Page ID #:17 

sometimes expressly authorizes such entities to use the information ITMedia 

collects through its loan forms to market non-loan products or services. 

35. Additionally, although ITMedia has made representations that loans 

are available without regard to credit history, ITMedia’s contracts do not require 

that the recipients of consumer information or downstream entities offer loans 

regardless of consumers’ credit history. ITMedia sells leads to entities without 

regard for whether they or downstream entities check and evaluate consumers’ 

credit history. 

36. Since at least 2012, the online lending trade organization to which 

ITMedia belongs has warned that online lenders and advertisers promoting online 

lending services should not represent to consumers that loans are available without 

credit checks because doing so is misleading. Lenders considering an online loan 

application may run credit checks through a major consumer reporting agency or a 

specialized consumer reporting agency to check a consumer’s background before 

extending credit. 

37. ITMedia has posted inconspicuous fine-print disclaimers, terms and 

conditions, and privacy policies that are inconsistent with the representations they 

have made to induce consumers to complete loan forms. For example, some 

websites contain statements that application information might be shared with 

entities that are not loan providers or that will offer products and services other 

than loans and that credit history may be a factor in lending decisions. These 

statements have not appeared on all the websites operated by ITMedia and, even 

when they have appeared, have been buried in lengthy paragraphs at the bottom of 

web pages or in online terms that are not as prominent as the advertising that they 

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contradict or qualify. Appendices 2–4 contain examples of paragraphs that 

include such statements. 

38. Similarly, ITMedia has published Internet pages that name non-lender 

entities to which ITMedia gives consumer information, but ITMedia has kept this 

information from consumers by not including links to these pages in most of its 

Internet sites and by placing any links that do appear in locations where consumers 

are unlikely to view them. On pages entitled “Third Parties,” ITMedia has listed 

“marketing partners” to which it transmits information about consumers’ loan 

requests. In some instances, these pages also state that additional, unnamed 

entities may contact the consumer or pull the consumers’ credit information. 

Appendix 7 is an example of one of these “Third Parties” pages. Most of 

ITMedia’s sites have contained no link to these “Third Parties” lists. During 

certain periods, some of ITMedia’s sites have contained a link to a “Third Parties” 

list, but these links have not been displayed as consumers begin or proceed through 

the multi-step loan forms, or on pages that describe how the service operates. 

Instead, the links to the names of “Third Parties” have appeared, if at all, in places 

where consumers are not likely to notice or open the link − in site maps for a given 

domain or small print at the last step in completing ITMedia’s loan forms. 

ITMedia Indiscriminately Shares Sensitive Consumer Information 

39. When ITMedia distributes consumers’ loan application information to 

prospective buyers in its lead marketplace, it does not mask or otherwise restrict 

access to sensitive personal and financial information, such as social security 

numbers and financial account information. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 19 of 37 Page ID #:19 

40. ITMedia transmits loan applications to entities that have not 

purchased the consumers’ information. ITMedia could selectively mask or 

withhold information in the applications so that only entities that purchase an 

application receive sensitive information, but it chooses not to do so. Indeed, 

because of the way ITMedia distributes consumer information, it sends most loan 

applications—unmasked—to multiple entities that have not committed to purchase 

the information, much less offer a loan to the consumer. 

41. Beginning in or about 2015, ITMedia authored a document described 

as a policy for safeguarding sensitive information that it collects from consumers, 

and it subsequently authored documents that purport to be revised or updated 

policies for protecting such information. 

42. ITMedia’s policies and procedures do not require that an entity that 

obtains leads from ITMedia certify that it uses such information solely to respond 

to the consumer’s loan request. 

43. ITMedia’s policies and procedures lack any provision for assessing 

whether purchasers and prospective purchasers safeguard information they 

received from ITMedia or use such information for purposes other than offering a 

loan. 

44. Additionally, ITMedia has no program for investigating whether 

sensitive consumer information it furnishes to potential purchasers is safeguarded 

or used for purposes other than offering a loan. For example, “seeding” data by 

adding unique dummy data is a common technique to detect leaks or breaches in 

data security, and to monitor how data is being used. ITMedia has the capability to 

“seed” the consumer information it distributes. Nonetheless, ITMedia has not 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 20 of 37 Page ID #:20 

implemented a program to regularly seed leads to test for security breaches, or to 

detect how leads are being used by their direct and indirect recipients. 

45. Some entities that receive consumer information from ITMedia 

represent to ITMedia that they have policies and procedures to ensure that such 

information is securely processed, stored, transmitted, and disposed. ITMedia has 

no program for assessing the content of such policies and procedures, whether such 

policies and procedures have been implemented, or whether such policies and 

procedures are effective. 

46. ITMedia has shared loan applications that include consumers’ 

sensitive information with entities that have not disclosed the physical location of 

their business, whose business is unknown to ITMedia, that have contracted on 

behalf of unnamed businesses, and that have not stated for what purpose, or with 

whom, they share leads. 

47. The types of personal, financial, and credit details about consumers 

that ITMedia collects and disseminates are often used to commit identity theft and 

fraud. For example, identity thieves use stolen names, addresses, and Social 

Security numbers to apply for credit cards in the victim’s name. When the identity 

thief fails to pay credit card bills, the victim’s credit suffers. Stolen personal 

information is also used to create phantom debt records used by debt collectors to 

harass consumers and demand payment for debts the consumers do not owe. 

Misappropriated bank account information can be used for unauthorized billing or 

fraudulent check scams. Identity thieves also use Social Security numbers and 

bank account information to intercept consumers’ tax refunds fraudulently. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 21 of 37 Page ID #:21 

48. ITMedia’s practice of broadly disseminating consumer information, 

including to entities that share information with others whose identities and use of 

the information are unknown to ITMedia, exposes consumers to the risk of 

substantial harm from identity theft, imposter scams, unauthorized billing, 

phantom debt collection, and other misuse of the consumers’ information. Some 

consumers have complained that, shortly after submitting loan applications to 

ITMedia, they have received communications using the names of ITMedia 

websites to present sham loan offers or demands for repayment of counterfeit debt. 

49. The harms from ITMedia’s failure to assess and evaluate whether the 

information that it disseminates is securely processed, stored, transmitted, and 

disposed, and its practice of disseminating consumer’s sensitive personal and 

financial information to entities whose identities and use of the information are 

unknown to ITMedia are not outweighed by benefits to consumers or competition 

from these practices. 

50. In most, if not all, instances, the consumers who have submitted 

sensitive information on ITMedia’s loan forms do not know about and have not 

consented to ITMedia sharing their sensitive personal and financial information 

with entities that are not using the information solely to respond to the consumer’s 

request for a loan. Consumers cannot reasonably avoid the harms and potential 

harms that the disclosures of their information cause, including possible identity 

theft and account fraud. Insofar as ITMedia has posted statements that consumers’ 

information is shared with entities that are not using the information to respond to 

the consumer’s request for a loan, it has done so in pages separate from its loan 

forms, and has not required that consumers view such pages before submitting the 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 22 of 37 Page ID #:22 

information. Even if consumers were to have clicked on the hyperlinks that lead to 

such pages, they would be unlikely to have seen the statements regarding the use of 

consumers’ information because this information has been buried in dense text, in 

small font, and in single space type. 

ITMedia Has Impermissibly Used Credit Scores for Marketing 

51. ITMedia has acquired additional data about consumers who submit 

loan applications at personalloans.com by purchasing the credit scores of such 

consumers from a national consumer reporting agency. 

52. Since 2014, ITMedia has purchased credit score information on 

millions of consumers. ITMedia has acquired these credit scores pursuant to a 

contract in Defendant General LLC’s name. 

53. When disseminating leads to potential buyers, ITMedia has: 

a. used credit scores as a factor in its strategy for maximizing sales, such as 

evaluating which entities are most likely to purchase the leads; 

b. set lead prices based on credit scores, demanding a higher price for the 

ability to market to consumers with higher scores; 

c. sent consumer information to potential buyers with codes that identify the 

range into which each consumer’s credit score − as reported by the 

consumer reporting agency − falls, thereby communicating the score with 

ranges as narrow as 10 to 20 points; and 

d. used credit scores to filter consumer information transmitted for 

evaluation based on credit score ranges selected by the potential buyers, 

thereby selling targeted leads and communicating the consumer report 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 23 of 37 Page ID #:23 

information ITMedia obtained from the consumer reporting agency to 

potential buyers. 

54. ITMedia has not required that each entity to which it sells credit 

score-based leads certify that it will use such leads solely to respond to the 

consumer’s loan request. In particular, ITMedia has not required that each entity 

to which credit score-based leads are sold (a) identify each recipient or end-user of 

such leads, or (b) certify that the entity and anyone that receives leads through the 

entity use such leads solely to respond to the consumer’s loan application or 

request. 

55. ITMedia represents to the consumer reporting agency from which it 

has procured credit scores that Defendant General LLC uses the scores to “prequalify” the consumer to whom the report relates (i.e., check to see if the consumer 

qualifies for certain credit terms). But ITMedia does not (a) acknowledge that 

ITMedia uses the scores to price and filter leads for marketing; (b) provide the 

consumer reporting agency with the identities of the entities to which ITMedia has 

furnished credit-score based consumer information by using credit scores to filter 

or code leads; or (c) provide the consumer reporting agency with the purposes for 

which such entities use such information. 

Participation and Knowledge of Individual Defendants 

56. Defendants Ambrose, Negari, Ramin, and Carpenter have reviewed 

ITMedia’s representations to consumers, negotiated or signed contracts for the sale 

of consumer information, and participated in formulating and implementing 

policies and practices for lead distribution. Among other activities: 

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a. Defendant Ambrose executed contracts in which Defendants agreed to 

distribute consumers’ sensitive personal and financial information to 

entities that were not lenders, entities that were sharing information with 

unidentified lead buyers, and entities whose business and interest in 

obtaining sensitive information on consumers is unknown to Defendants. 

Defendant Ambrose authorized the distribution of consumer information 

to, among others, Lead Express, Inc., Camel Coins, Inc., and Sea Mirror, 

Inc., debt negotiation marketers, and telemarketers, even though 

distribution of consumers’ information to these entities was contrary to 

the representations ITMedia made to induce consumers to complete loan 

forms. Defendant Ambrose also executed agreements to procure credit 

scores of consumers who completed loan forms for use in marketing and 

to sell credit-score based leads to entities purchasing leads from ITMedia. 

b. Defendant Negari executed contracts in the name of Defendant General 

LLC to distribute consumers’ sensitive personal and financial 

information to marketers and lead aggregators that do not offer loans, but 

shop consumers’ information to other entities whose identity, business, 

and interest in the information is not known to ITMedia. Defendant 

Negari also participated in securing and using consumer credit scores to 

filter leads for sale and augment the marketing of information from 

consumers’ loan forms to participants in ITMedia’s marketplace. 

c. Defendant Ramin operated and supervised the operation of the ITMedia 

marketplace in which loan applications are distributed to potential buyers 

without withholding sensitive personal or financial information, and 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 25 of 37 Page ID #:25 

negotiated and executed contracts in which Defendants agreed to 

distribute such information to entities that were not lenders, entities that 

were sharing information with unidentified lead buyers, and entities that 

made no commitment to use the consumer information distributed by 

ITMedia to make loans. Defendant Ramin also participated in the 

purchase of credit scores of consumers who completed loan forms, 

offered and distributed credit score information to potential buyers, 

filtered leads based on credit scores to create marketing lists, and used 

the credit scores in ITMedia’s marketing to potential buyers. 

d. Defendant Carpenter approves potential buyers participating in 

ITMedia’s lead marketplace, including approving entities that are not 

lenders, but debt relief services, pre-paid debit card sellers, marketers, 

lead aggregators, and other entities whose identity, business, and interest 

in the information is not known to ITMedia. He is the sole manager of 

ITMedia Solutions, is the chief officer of the company, and has full 

power to direct and manage the business affairs of the company. He is 

responsible for day-to-day operations, and the negotiation and 

performance of all contracts of ITMedia Solutions. Defendant Carpenter 

also reviewed and approved ITMedia’s purchase of credit scores, all the 

contracts under which ITMedia has disseminated consumers’ 

information, and supervised the representations made on ITMedia’s 

websites to induce consumers to submit sensitive information. 

Through these activities and their positions as officers or managers of various 

Defendants, these individuals have actual knowledge of ITMedia’s deceptive, 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 26 of 37 Page ID #:26 

unfair, and unlawful conduct, have been recklessly indifferent to such conduct, or 

intentionally avoid knowledge or such conduct. 

57. Defendants Hancock and Kaufusi intentionally avoid knowledge of 

ITMedia’s conduct and the truth of its representations, and are aware that it is 

highly probable that ITMedia, when conducting business in their names, is 

engaged in deceptive, unfair, and unlawful conduct, including making 

misrepresentations to consumers or misusing information obtained from consumers 

for profit. 

58. Based on the facts and violations of law alleged in this Complaint, the 

FTC has reason to believe that Defendants are violating or are about to violate laws 

enforced by the Commission because, among other things: the websites operated 

by ITMedia continue to convey misleading representations that consumers’ 

information is used only for the purpose of obtaining the loans requested and that 

such information is shared only with loan providers. Moreover, ITMedia continues 

to distribute consumers’ loan application information indiscriminately to the types 

of entities described above without policies and procedures to assure that these 

entities safeguard information they receive from ITMedia and use such information 

only to offer loans. Finally, Defendants’ business relationships, contracts, and 

experience in collecting and selling consumer data for profit give them the means, 

ability and incentive to continue the unlawful conduct described in this Complaint. 

VIOLATIONS OF THE FTC ACT 

59. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or 

deceptive acts or practices in or affecting commerce.” 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 27 of 37 Page ID #:27 

60. Misrepresentations or deceptive omissions of material fact are 

deceptive acts or practices prohibited by Section 5(a) of the FTC Act. Acts or 

practices are unfair under Section 5 of the FTC Act if they cause or are likely to 

cause substantial injury to consumers that consumers cannot reasonably avoid 

themselves and that is not outweighed by countervailing benefits to consumers or 

competition. 15 U.S.C. § 45(n). 

Count I 

Deceptive Representations 

61. In numerous instances in connection with soliciting consumers for 

information, Defendants, through ITMedia’s actions, represent or have 

represented, directly or indirectly, expressly or by implication, that: 

a. They will only share information consumers submit on loan forms to 

connect the consumer with a loan offer; 

b. Information consumers submit on loan forms will be given to loan 

providers only; and 

c. Consumers who submit loan forms will be able to receive a loan without 

regard for their credit score or history. 

62. The representations set forth in Paragraph 61 are false and misleading, 

or were not substantiated at the time the representations were made. 

63. Therefore, the making of the representations as set forth in 

Paragraph 61 constitute deceptive acts or practices in violation of Section 5(a) of 

the FTC Act, 15 U.S.C. § 45(a). 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 28 of 37 Page ID #:28 

Count II 

Unfair Distribution of Sensitive Information 

64. In numerous instances, Defendants, through ITMedia’s actions, have 

shared and sold sensitive personal and financial information from consumers’ loan 

forms—including consumers’ full names, addresses, email addresses, phone 

numbers, birthdates, Social Security numbers, bank routing and account numbers, 

driver’s license and state identification numbers, income, status and place of 

employment, military status, homeownership status, and approximate credit 

scores—without consumers’ knowledge or consent and without regard for whether 

the recipients are lenders or otherwise had a legitimate need for the information. 

65. The acts or practices as set forth in Paragraph 64 cause or are likely to 

cause substantial injury to consumers that consumers could not reasonably avoid 

themselves and that are not outweighed by countervailing benefits to consumers or 

competition. 

66. Therefore, the acts or practices as set forth in Paragraph 64 constitute 

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

and 45(n). 

VIOLATIONS OF THE FAIR CREDIT REPORTING ACT 

67. The FCRA was enacted in 1970, became effective on April 25, 1971, 

and has been in force since that date. The Fair and Accurate Credit Transactions 

Act (“FACT Act”) amended the FCRA in December 2003, and the Dodd-Frank 

Act amended the FCRA in July 2010. 

68. Section 621 of the FCRA provides that, for the purpose of the exercise 

by the FTC of its functions and powers under the FTC Act, a violation of any 

requirement or prohibition imposed under the FCRA shall constitute an unfair or 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 29 of 37 Page ID #:29 

deceptive act or practice in commerce, in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a). 15 U.S.C. § 1681s(a). 

69. Section 621 of the FCRA, 15 U.S.C. § 1681s, authorizes the 

Commission to use all of its functions and powers under the FTC Act to enforce 

compliance with the FCRA by all persons subject thereto except to the extent that 

enforcement specifically is committed to some other governmental agency under 

subparagraphs (A) through (G) of 15 U.S.C. § 1681s(b)(1), irrespective of whether 

the person is engaged in commerce or meets any other jurisdictional tests set forth 

by the FTC Act. In the event of a knowing violation of the FCRA, the FTC may 

commence an action to recover civil penalties. Id. § 1681s(a)(2). 

70. Enforcement of the FCRA with respect to Defendants is not 

specifically committed to a governmental agency under subparagraphs (A) through 

(G) of 15 U.S.C. § 1681s(b)(1). 

71. Section 603(d) of the FCRA, 15 U.S.C. § 1681a(d), defines a 

“consumer report” as: 

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

consumer reporting agency bearing on a consumer’s creditworthiness, 

credit standing, credit capacity, character, general reputation, personal 

characteristics, or mode of living which is used or expected to be used 

or collected in whole or in part for the purpose of serving as a factor 

in establishing the consumer’s eligibility for (A) credit or insurance to 

be used primarily for personal, family, or household purposes; 

(B) employment purposes; or (C) any other purpose authorized under 

Section 604. 

72. Credit scores—numerical scores or categorizations that are assigned 

to consumers based on risk models designed to predict the likelihood of certain 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 30 of 37 Page ID #:30 

credit behaviors—are “consumer reports” as defined in Section 603(d) of the 

FCRA. 

73. Marketing data or lists that identify consumers with a specified credit 

score, credit score range, or other credit-related characteristics are “consumer 

reports” as defined in Section 603(d) of the FCRA. 

FCRA Restrictions on Permissible Use (§ 604) 

74. Section 604(f)(1) of the FCRA, 15 U.S.C. § 1681b(f)(1), prohibits 

persons from using or obtaining a consumer report for any purpose unless it is for a 

purpose authorized under Section 604. The circumstances enumerated in Section 

604 are referred to as the “permissible purposes” of consumer reports. 

75. Section 604(f)(2), 15 U.S.C. § 1681b(f)(2), further provides that a 

person shall not use or obtain a consumer report unless the prospective user has 

certified the purpose for which the report will be used in accordance with 

Section 607, 15 U.S.C. § 1681e. To fulfill this requirement, a prospective user 

must identify themselves and certify both the purposes for which the information is 

sought and that the information will be used for no other purpose. 15 U.S.C. 

§ 1681e(a). 

76. Obtaining or using a credit score or other consumer report to filter, 

price, market, or evaluate leads for marketing is not a permissible purpose under 

Section 604 of the FCRA. 

77. Obtaining or using a credit score or other consumer report to solicit 

consumers to initiate a transaction, outside the context of a credit or insurance 

transaction that satisfies Section 604(c), 15 U.S.C. § 1681b(c), is not a permissible 

purpose under Section 604 of the FCRA. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 31 of 37 Page ID #:31 

78. As described in Paragraph 53.a through 53.d, ITMedia obtains and 

uses credit scores for purposes that are not permissible purposes under Section 604 

of the FCRA. 

79. Since at least 2013, Defendants, directly or through Defendant 

Carpenter or other agents, have known of the requirements of the FCRA, that the 

FCRA permits the use of consumer report information solely for a permissible 

purpose, and that it is unlawful to use credit scores procured from a consumer 

reporting agency for any reason other than the permissible purpose certified to the 

consumer reporting agency. 

80. Section 621(a)(2)(A) of the FCRA, 15 U.S.C. § 1681s(a)(2)(A), as 

adjusted by 16 C.F.R. § 1.98(m), authorizes the Court to award monetary civil 

penalties of not more than $4,111 for each knowing violation of the FCRA that 

constitutes a pattern or practice of violations of the statute. 

81. Each instance in which Defendants have violated Section 604(f) of the 

FCRA, 15 U.S.C. § 1681b(f), constitutes a separate violation of the FCRA for the 

purpose of assessing monetary civil penalties. 

Count III 

Obtaining and Using Consumer Reports without a Permissible Purpose 

82. As described in Paragraphs 51 through 53 and 76 through 79, 

Defendants, through ITMedia’s actions, have obtained and used consumer reports 

without a permissible purpose. 

83. By and through the acts and practices described in Paragraphs 51 

through 53 and 76 through 79, Defendants have violated Section 604(f) of the 

FCRA, 15 U.S.C. § 1681b(f). 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 32 of 37 Page ID #:32 

84. Pursuant to Section 621(a)(1) of the FCRA, 15 U.S.C. § 1681s(a)(1), 

the acts and practices alleged in Paragraphs 51 through 53 and 76 through 79, also 

constitute unfair or deceptive acts or practices in violation of Section 5(a) of the 

FTC Act, 15 U.S.C. § 45(a). 

85. The acts and practices described in Paragraphs 51 through53 and 76 

through 79, constitute a pattern or practice of knowing violations of the FCRA 

under Section 621(a)(2)(A) of the FCRA, 15 U.S.C. § 1681s(a)(2)(A). 

FCRA Requirements for Persons Reselling (§ 607(e)) 

86. Section 607(e)(2)(A), of the FCRA, 15 U.S.C. §1681e(e)(2)(A), 

requires persons who procure consumer reports for purposes of reselling the 

reports (or any information in the reports) to “establish and comply with 

reasonable procedures designed to ensure that the report (or information) is resold 

by the person only for a purpose for which the report may be furnished under 

Section 604.” These procedures must include requirements that each person to 

which the report (or information) is resold identify each user of the resold report 

(or information), certify the purposes for which the report (or information) is 

sought, and certify that the report (or information) will be used for no other 

purpose. 

87. Section 607(e)(2)(B) of the FCRA, 15 U.S.C. § 1681e(e)(2)(B), 

requires that persons who procure consumer reports for purposes of reselling the 

report (or information in the report) must, before reselling the report, make 

reasonable efforts to verify the identifications and certifications made by end-users 

to demonstrate that the report (or information in the report) will be used for a 

permissible purpose, and used for no other purpose. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 33 of 37 Page ID #:33 

88. Section 607(e)(1) of the FCRA, 15 U.S.C. § 1681e(e)(1), requires 

persons who procure consumer reports for purposes of reselling the reports (or any 

information in the report) to disclose to the credit reporting agency that originally 

furnishes the report the identity of the end-user of the report and the permissible 

purpose for which the report is furnished. 

89. ITMedia has procured credit scores for the purpose of selling 

consumer information that includes information from credit scores. ITMedia has 

conveyed information from credit scores to prospective purchasers when it has 

filtered consumer loan applications by credit score or has tagged the information it 

sells with price codes based on credit scores. 

90. ITMedia has not instituted or maintained procedures to identify the 

persons that use information from the consumer reports that it has procured for 

resale. In particular, ITMedia’s lead sale contracts do not identify all the entities 

that may receive leads pursuant to the agreement, and explicitly or implicitly 

contemplate that leads will be shared with unnamed entities. Furthermore, 

ITMedia has sold leads that convey consumer report information to entities that 

seek information for the use of others, without requiring that the user or users of 

the report information be identified. 

91. ITMedia has not established or complied with procedures to limit 

prospective purchasers’ use of information from the consumer reports that it has 

procured for resale. In particular, ITMedia does not require that recipients of such 

information provide any certification specifying the purposes for which the 

recipients use consumer report information, or certify that information will be used 

for specified purposes and no other. In numerous instances, ITMedia does not 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 34 of 37 Page ID #:34 

require recipients to identify the purposes for which they use the consumer 

information, accepts vague descriptions of the purpose, and/or accepts 

representations that do not state that the consumer information will not be used for 

other purposes. 

92. ITMedia has not instituted or maintained procedures to verify 

prospective purchasers’ representations regarding their use of information from 

consumer reports it has furnished. In particular, ITMedia has sold consumer report 

information without making a reasonable effort to verify the identity of a recipient 

or the purposes for which a recipient is using the consumer report information. 

93. Each instance in which Defendants have procured credit scores for 

resale without establishing and complying with procedures to limit the use of 

consumer report information to the end users and purposes permitted by the FCRA, 

or did not disclose to the consumer reporting agency that furnishes the scores the 

identity of the end-user of consumer report information and each purpose for 

which consumer report information will be used, constitutes a separate violation of 

the FCRA for the purpose of assessing monetary civil penalties. 

Count IV 

Failure to Establish and Comply with Procedures to Avoid Impermissible

Use of Consumer Report Information Obtained for Resale 

94. As described in Paragraphs 54 and 89 through 92, Defendants have 

failed to establish or comply with reasonable procedures designed to limit the sale 

of consumer report information purchased for resale to the users and purposes 

permitted by the FCRA, and no other. For example, they have failed to require 

that purchasers and end-users identify themselves, certify the purposes for which 

the information is sought, and certify that the information will be used for no other 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 35 of 37 Page ID #:35 

purpose. Defendants have also failed to make reasonable efforts to verify the 

identity of each purchaser and the purposes for which each purchaser or end-user is 

using consumer report information sold by ITMedia. 

95. By and through the acts and practices described in Paragraphs 54 and 

89 through 92, Defendants have violated Section 607(e)(2) of the FCRA, 15 U.S.C. 

§ 1681e(e)(2). 

96. Pursuant to Section 621(a)(1) of the FCRA, 15 U.S.C. § 1681s(a)(1), 

the acts and practices alleged in Paragraphs 54 and 89 through 92, also constitute 

unfair or deceptive acts or practices in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a). 

97. The acts and practices described in Paragraphs 54 and 89 through 92 

constitute a pattern or practice of knowing violations of the FCRA under Section 

621(a)(2)(A) of the FCRA, 15 U.S.C. § 1681s(a)(2)(A). 

Count V 

Reselling Consumer Reports to Unidentified Users 

98. As described in Paragraphs 51 through 55, Defendants, through 

ITMedia’s actions, have procured credit scores for the purpose of selling leads 

filtered by credit score but have not disclosed to the consumer reporting agency 

that furnishes the consumer report the identity of the end-users to which 

Defendants furnish credit score information or the purposes for which these endusers use such information. 

99. By and through the acts and practices described in Paragraphs 51 

through 55, Defendants have violated Section 607(e)(1) of the FCRA, 15 U.S.C. 

§ 1681e(e)(1). 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 36 of 37 Page ID #:36 

100. Pursuant to Section 621(a)(1) of the FCRA, 15 U.S.C. § 1681s(a)(1), 

the acts and practices alleged in Paragraphs 51 through 55 also constitute unfair or 

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

§ 45(a). 

101. The acts and practices described in Paragraphs 51 through 55 

constitute a pattern or practice of knowing violations of the FCRA under Section 

621(a)(2)(A) of the FCRA, 15 U.S.C. § 1681s(a)(2)(A). 

CONSUMER INJURY 

102. Consumers are suffering, have suffered, and will continue to suffer 

substantial injury as a result of Defendants’ violations of the FTC Act and the 

FCRA. Absent injunctive relief by this Court, Defendants are likely to continue to 

injure consumers and harm the public interest. 

PRAYER FOR RELIEF 

Wherefore, Plaintiff requests that the Court: 

A. Award Plaintiff such preliminary injunctive and ancillary relief as 

may be necessary to avert the likelihood of consumer injury during the pendency 

of this action and to preserve the possibility of effective final relief; 

B. Enter a permanent injunction to prevent future violations of the FTC 

Act and the FCRA by Defendants; 

C. Award Plaintiff monetary civil penalties from each Defendant for 

every separate violation of the FCRA; and 

D. Award Plaintiff the costs of bringing this action, as well as any 

additional relief the Court determines to be just and proper. 

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Case 2:22-cv-00073 Document 1 Filed 01/05/22 Page 37 of 37 Page ID #:37 

Dated: January 5, 2022 Respectfully submitted, 

FEDERAL TRADE COMMISSION 

Michael E. Tankersley 

mtankersley@ftc.gov; (202) 326-2991 

Daniel O. Hanks 

dhanks@ftc.gov; (202) 326-2472 

Federal Trade Commission 

600 Pennsylvania Avenue NW 

Washington, DC 20580 

Facsimile: 202-326-3768 

/s/Matthew H. Fine 

Matthew H. Fine (CA Bar. No. 300808) 

mfine@ftc.gov 

Federal Trade Commission 

10990 Wilshire Blvd, Suite 400 

Los Angeles, CA 90024 

Tel: (310) 824-4300 

Fax: (310) 824-4380 

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Case 2:22-cv-00073 Document 1-1 Filed 01/05/22 Page 1 of 1 Page ID #:38 

Appendix 1 

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Case 2:22-cv-00073 Document 1-2 Filed 01/05/22 Page 1 of 1 Page ID #:39 

Appendix 2 

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Case 2:22-cv-00073 Document 1-3 Filed 01/05/22 Page 1 of 1 Page ID #:40 

Appendix 3 

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Case 2:22-cv-00073 Document 1-4 Filed 01/05/22 Page 1 of 1 Page ID #:41 

Appendix 4 

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Case 2:22-cv-00073 Document 1-5 Filed 01/05/22 Page 1 of 1 Page ID #:42 

Appendix 5 

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Case 2:22-cv-00073 Document 1-6 Filed 01/05/22 Page 1 of 1 Page ID #:43 

Appendix 6 

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Case 2:22-cv-00073 Document 1-7 Filed 01/05/22 Page 1 of 1 Page ID #:44 

Appendix 7 

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