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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

The Federal Trade Commission (“FTC”) filed a complaint for a permanent injunction and 

other equitable relief under Sections 13(b) and 19 of the Federal Trade Commission Act (“FTC 

Act”), 15 U.S.C. § 53(b), and an ex parte application for a temporary restraining order and 

ancillary relief under Fed. R. Civ. P. 65(b) pending a hearing on a preliminary injunction. Sealed 

Dkt. Nos. 1, 12. The respondent defendants are the AH Media Group, LLC, Henry Block, and 

Alan Schill. 

FEDERAL TRADE COMMISSION,

 Plaintiff,

 vs.

AH MEDIA GROUP, LLC, a Delaware Limited 

Liability Company,

HENRY BLOCK, individually, and as an officer 

of AH MEDIA GROUP, LLC,

ALAN SCHILL, individually, and as an owner of 

AH MEDIA GROUP, LLC,

 Defendants,

 and

ZANELO, LLC, a Puerto Rico Limited Liability 

Company,

 Relief Defendant.

Case No. 19-cv-04022-JD

FILED UNDER SEAL

EX PARTE TEMPORARY 

RESTRAINING ORDER WITH 

ASSET FREEZE, APPOINTMENT 

OF A TEMPORARY RECEIVER, 

AND OTHER EQUITABLE RELIEF, 

AND ORDER TO SHOW CAUSE 

WHY A PRELIMINARY 

INJUNCTION SHOULD NOT ISSUE 

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BACKRGOUND AND FINDINGS

The FTC filed a substantial volume of declarations and exhibits in support of the TRO 

application, in addition to the detailed allegations in the complaint. The Court makes the 

following findings on the basis of these materials. Because this is an expedited ex parte 

application, defendants may challenge them before the preliminary injunction hearing. The 

preliminary injunction hearing is set for August 1, 2019, at 2:00 p.m. 

A. The Court has subject matter jurisdiction over the case, and there is good cause to 

believe that it will have jurisdiction over all parties hereto and that venue in this district is proper.

B. The FTC has made a prima facie showing that defendants: (1) misrepresented the 

price associated with “trial offers” of their products; (2) misrepresented that clicking on a 

“complete checkout” button would complete just the purchase of the trial offer, when in fact it 

added upsell products and associated charges; (3) did not clearly and conspicuously disclose to 

consumers that they would be charged the full amount for the product and enrolled in continuity 

plans resulting in additional charges to their credit cards or withdrawals from their debit 

accounts; (4) did not obtain consumers’ express informed consent before imposing these charges, 

or provide a clear way to stop the recurring charges; (5) did not clearly and conspicuously 

disclose their return, cancelation, and refund policies; (6) used fraudulent documentation to 

contest consumer disputes over unauthorized charges; and (7) engaged in credit card laundering, 

through which they unlawfully used shell companies and shell owners to obtain access to 

merchant accounts needed to accept consumers’ credit and debit card payments. A reasonable 

inference from this conduct is that defendants unfairly injured consumers by charging them 

without their authorization. 

C. The current record shows that defendants AH Media Group, LLC, Henry Block, 

and Alan Schill have engaged in and are likely to engage in acts or practices that violate Section 

5(a) of the FTC Act, 15 U.S.C. § 45(a), Section 4 of the Restore Online Shoppers’ Confidence 

Act (ROSCA), 15 U.S.C. § 8403, Section 907(a) of the Electronic Funds Transfer Act (EFTA), 

15 U.S.C. § 1693e(a), and Section 1005.10(b) of Regulation E, 12 C.F.R. § 1005.10(b), and that 

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the FTC is likely to prevail on the merits of this action. Specifically, the FTC has proffered web 

captures, records of undercover purchases, consumer declarations, transcripts of calls, consumer 

complaints, chargeback files, corporate and financial records, and similar materials that 

demonstrate a likelihood of success in establishing that defendants have misrepresented the price 

associated with purported trial offers of their products, misrepresented the effect of webpages 

that purported to merely complete the checkout process, failed to adequately disclose the 

material terms of their purported trial offers, failed to clearly and conspicuously disclose material 

terms of the continuity plans before collecting consumers’ billing information, charged 

consumers’ credit and debit cards without their authorization, unfairly injured consumers by 

engaging in credit card laundering, and deceptively contested chargeback disputes using 

fraudulent documentation. 

D. These materials also establish that immediate and irreparable harm is likely to 

result from defendants’ ongoing violations of the FTC Act, ROSCA, EFTA and Regulation E, 

unless defendants are restrained and enjoined. 

E. There is good cause 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, destruction or other 

disposition or concealment by defendants of their assets or records, unless defendants are 

immediately restrained and enjoined; and that, in accordance with Federal Rule of Civil 

Procedure 65(b) and Local Rule 65-1, the interests of justice require that this Order be granted 

without prior notice to defendants. Consequently, the FTC is excused from providing defendants 

with prior notice of the TRO application.

F. Good cause exists for appointing a temporary receiver over the Receivership 

Entities (defined infra), freezing defendants’ assets, and permitting the FTC and the Receiver to 

take expedited discovery.

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G. Weighing the equities and considering the FTC’s likelihood of success on the 

merits, a temporary restraining order with an asset freeze, the appointment of a temporary 

receiver, expedited discovery, and other equitable relief is in the public interest.

H. The Court has authority to issue this Order under Sections 13(b) and 19 of the 

FTC Act, 15 U.S.C. § 53(b); Federal Rule of Civil Procedure 65; and the All Writs Act, 28 

U.S.C. § 1651.

I. No security is required of any agency of the United States for issuance of a 

temporary restraining order. Fed. R. Civ. P. 65(c).

DEFINITIONS

For the purpose of this Order, the following definitions apply:

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

property, wherever located and by whomever held.

B. “Clear and Conspicuous” or “Clearly and Conspicuously” means that a 

required disclosure is difficult to miss (i.e., easily noticeable) and easily understandable by 

ordinary consumers, including in all of the following ways:

1. In any communication that is solely visual or solely audible, the disclosure 

must be made through the same means through which the communication is 

presented. In any communication made through both visual and audible means, 

such as a television advertisement, the disclosure must be presented simultaneously 

in both the visual and audible portions of the communication even if the 

representation requiring the disclosure is made in only one means;

2. A visual disclosure, by its size, contrast, location, the length of time it 

appears, and other characteristics, must stand out from any accompanying text or 

other visual elements so that it is easily noticed, read, and understood;

3. An audible disclosure, including by telephone or streaming video, must be 

delivered in a volume, speed, and cadence sufficient for ordinary consumers to 

easily hear and understand it;

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4. In any communication using an interactive electronic medium, such as the 

Internet or software, the disclosure must be unavoidable;

5. On a product label, the disclosure must be presented on the principal 

display panel;

6. The disclosure must use diction and syntax understandable to ordinary 

consumers and must appear in each language in which the representation that 

requires the disclosure appears;

7. The disclosure must comply with these requirements in each medium 

through which it is received, including all electronic devices and face-to-face 

communications;

8. The disclosure must not be contradicted or mitigated by, or inconsistent 

with, anything else in the communication; and

9. When the representation or sales practice targets a specific audience, such 

as children, the elderly, or the terminally ill, “ordinary consumers” includes 

reasonable members of that group.

C. “Corporate Defendant” means AH Media Group, LLC, and each of its

subsidiaries, affiliates, successors, and assigns.

D. “Defendant(s)” means Corporate Defendant, Henry Block and Alan Schill, 

individually, collectively, or in any combination. 

E. “Document” is synonymous in meaning and equal in scope to the usage of 

“document” and “electronically stored information” in Federal Rule of Civil Procedure 34(a), 

Fed. R. Civ. P. 34(a), and includes writings, drawings, graphs, charts, photographs, sound and 

video recordings, images, Internet sites, web pages, websites, electronic correspondence, 

including e-mail and instant messages, contracts, accounting data, advertisements, FTP Logs, 

Server Access Logs, books, written or printed records, handwritten notes, telephone logs, 

telephone scripts, receipt books, ledgers, personal and business canceled checks and check 

registers, bank statements, appointment books, computer records, customer or sales databases 

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and any other electronically stored information, including Documents located on remote servers 

or cloud computing systems, and other data or data compilations from which information can be 

obtained directly or, if necessary, after translation into a reasonably usable form. A draft or nonidentical copy is a separate document within the meaning of the term. 

F. “Electronic Data Host” means any person or entity in the business of storing, 

hosting, or otherwise maintaining electronically stored information. This includes, but is not 

limited to, any entity hosting a website or server, and any entity providing “cloud based” 

electronic storage.

G. “Individual Defendant(s)” means Henry Block and Alan Schill, individually, 

collectively, or in any combination.

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

any good or service, a provision under which the consumer’s silence or failure to take affirmative 

action to reject a good or service or to cancel the agreement is interpreted by the seller or 

provider as acceptance or continuing acceptance of the offer.

I. “Receiver” means the temporary receiver appointed in Section XIV of this Order 

and any deputy receivers that are named by the temporary receiver.

J. “Receivership Entities” means Corporate Defendant, the Wyoming Related 

Companies, as well as any other entity that has conducted any business related to Defendants’ 

online marketing of trial offers, including receipt of Assets derived from any activity that is the 

subject of the Complaint in this matter, and that the Receiver determines is controlled or owned 

by any Defendant.

K. “Wyoming Related Companies” means the companies identified in Attachment 

A to this Order and each of their subsidiaries, affiliates, successors, and assigns.

ORDER

I. PROHIBITED BUSINESS ACTIVITIES

IT IS ORDERED that Defendants, Defendants’ officers, agents, employees, and 

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

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notice of this Order, whether acting directly or indirectly, in connection with the advertising, 

marketing, promoting, or offering for sale of any goods or services, are temporarily restrained 

and enjoined from misrepresenting or assisting others in misrepresenting, expressly or by 

implication, any material fact, including, but not limited to: 

A. Any cost to the consumer to purchase, receive, use, or return the initial good or 

service;

B. That the consumer will not be charged for any good or service;

C. That a good or service is offered on a “free,” “trial,” “sample,” “bonus,” “gift,” 

“no commitment,” “discounted” basis, or words of similar import, denoting or implying the 

absence of an obligation on the part of the recipient of the offer to affirmatively act in order to 

avoid charges, including where a charge will be assessed pursuant to the offer unless the 

consumer takes affirmative steps to prevent or stop such a charge;

D. That the consumer can obtain a good or service for a processing, service, 

shipping, handling, or administrative fee with no further obligation;

E. That a transaction has been authorized by the consumer; 

F. Any material aspect of the nature or terms of websites that are presented as part of 

the process of completing a purchase, including “complete checkout” buttons;

G. Any material aspect of the nature or terms of a refund, cancellation, exchange, or 

repurchase policy for the good or service; or

H. Any other fact material to consumers concerning any good or service, such as: 

the total costs; any material restrictions, limitations, or conditions; or any material aspect of its 

performance, efficacy, nature, or central characteristics.

II. PROHIBITION AGAINST UNFAIR AND DECEPTIVE 

NEGATIVE OPTION MARKETING PRACTICES

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, are temporarily 

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restrained and enjoined from charging, causing to be charged, assisting others in charging, or 

attempting to charge any consumer in any sale of a good or service with a Negative Option 

Feature without:

A. Clearly and Conspicuously disclosing all material terms of the Negative Option 

Feature before obtaining the consumer’s billing information;

B. Obtaining a consumer’s express informed consent, written or similarly authorized, 

to the Negative Option Feature before making any charge; and

C. Providing a simple mechanism for a consumer to stop recurring charges from 

being placed on the consumer’s credit card, debit card, or other financial account.

III. PROHIBITION AGAINST DEBITING CONSUMERS’ 

BANK ACCOUNTS WITHOUT AUTHORIZATION

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

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

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

sale of any good or service, are temporarily restrained and enjoined from:

A. Failing to timely obtain written authorization signed or similarly authenticated by 

the consumer for any Preauthorized Electronic Fund Transfer from a consumer’s account before 

initiating any Preauthorized Electronic Fund Transfer; and

B. Failing to provide the consumer a copy of a valid written authorization signed or 

similarly authenticated by the consumer for any Preauthorized Electronic Fund Transfer.

IV. PROHIBITION RELATED TO OBTAINING MERCHANT ACCOUNTS 

AND RESPONDING TO CHARGEBACKS

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, are hereby temporarily 

restrained and enjoined from: 

A. Failing to disclose to any bank, payment processor, credit card processor, 

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independent sales organization, third party processor, payment gateway, or other financial 

institution any material fact relating to obtaining a merchant account, including, but not limited 

to, the identity of the bona fide owner, manager, director, or officer of an entity applying for or 

holding a merchant account, and whether such owner, manager, director, or officer:

1. Has been or is placed in a merchant account monitoring program;

2. Has had a merchant account terminated by a bank, payment processor, or 

other financial institution; or

3. Has been fined or otherwise disciplined by a bank, payment processor, or 

other financial institution, in connection with a merchant account. 

B. Making, or causing, or assisting others in making, directly or by implication, any 

false or misleading statements in order to obtain a merchant account or respond to a chargeback.

V. PROHIBITION ON RELEASE OF 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, whether acting directly or indirectly, are hereby temporarily 

restrained and enjoined from:

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

birth date, telephone number, email address, credit card number, bank account number, Social 

Security number, or other financial or identifying information of any person that any Defendant 

obtained in connection with any activity that pertains to the subject matter of this Order; and

B. Benefitting from or using the name, address, birth date, telephone number, email 

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

identifying information of any person that any Defendant obtained in connection with any 

activity that pertains to the subject matter of this Order.

Provided, however, that Defendants may disclose such identifying information to a law 

enforcement agency, to their attorneys as required for their defense, as required by any law, 

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regulation, or court order, or in any filings, pleadings or discovery in this action in the manner 

required by the Federal Rules of Civil Procedure and by any protective order in the case.

VI. ASSET FREEZE

IT IS FURTHER ORDERED that Defendants and their 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, are hereby temporarily 

restrained and enjoined from:

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

concealing, dissipating, disbursing, assigning, relinquishing, spending, withdrawing, granting a 

lien or security interest or other interest in, or otherwise disposing of any Assets that are:

1. owned or controlled, directly or indirectly, by any Defendant;

2. held, in part or in whole, for the benefit of any Defendant;

3. in the actual or constructive possession of any Defendant; or

4. owned or controlled by, in the actual or constructive possession of, or 

otherwise held for the benefit of, any corporation, partnership, asset 

protection trust, or other entity that is directly or indirectly owned, 

managed or controlled by any Defendant.

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, 

except as necessary to comply with written requests from the Receiver acting pursuant to its 

authority under this Order;

C. Incurring charges or cash advances on any credit, debit, or ATM card issued in

the name, individually or jointly, of Corporate Defendant or any corporation, partnership, or 

other entity directly or indirectly owned, managed, or controlled by any Defendant or of which 

any Defendant is an officer, director, member, or manager. This includes any corporate 

bankcard or corporate credit card account for which any Defendant is, or was on the date that this 

Order was signed, an authorized signor; or

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D. Cashing any checks or depositing any money orders or cash received from 

consumers, clients, or customers of any Defendant.

The Assets affected by this Section include: (1) all Assets of Defendants as of the time 

this Order is entered; and (2) Assets obtained by Defendants after this Order is entered if those 

Assets are derived from any activity that is the subject of the Complaint in this matter or that is 

prohibited by this Order. This Section does not prohibit any transfers to the Receiver or 

repatriation of foreign Assets specifically required by this order.

VII. DUTIES OF ASSET HOLDERS AND OTHER THIRD PARTIES

IT IS FURTHER ORDERED that any financial or brokerage institution, Electronic Data 

Host, credit card processor, payment processor, merchant bank, acquiring bank, independent 

sales organization, third party processor, payment gateway, insurance company, currency 

exchange or cryptocurrency exchange or service provider, business entity, or person who 

receives actual notice of this Order (by service or otherwise) that:

(a) has held, controlled, or maintained custody, through an account or 

otherwise, of any Document on behalf of any Defendant or any Asset that has been: owned or 

controlled, directly or indirectly, by any Defendant; held, in part or in whole, for the benefit of 

any Defendant; in the actual or constructive possession of any Defendant; or owned or controlled 

by, in the actual or constructive possession of, or otherwise held for the benefit of, any 

corporation, partnership, asset protection trust, or other entity that is directly or indirectly owned, 

managed or controlled by any Defendant; 

(b) has held, controlled, or maintained custody of any email account set forth 

in Attachment B to this Order;

(c) has held, controlled, or maintained custody, through an account or 

otherwise, of any Document or Asset associated with credits, debits, or charges made on behalf 

of any Defendant, including reserve funds held by payment processors, credit card processors, 

merchant banks, acquiring banks, independent sales organizations, third party processors, 

payment gateways, insurance companies, or other entities; or

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(d) has extended credit to any Defendant, including through a credit card 

account, will:

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

alteration, assignment, transfer, pledge, encumbrance, disbursement, dissipation, relinquishment, 

conversion, sale, or other disposal of any such Document or Asset, as well as all Documents or 

other property related to such Assets, except by further order of this Court; provided, however, 

that this provision does not prohibit an Individual Defendant from incurring charges on a 

personal credit card established prior to entry of this Order, up to the pre-existing credit limit;

B. Deny any person, except the Receiver, access to any safe deposit box, commercial 

mail box, or storage facility that is titled in the name of any Defendant, either individually or 

jointly, or otherwise subject to access by any Defendant;

C. To the extent applicable, provide Plaintiff’s counsel and the Receiver, within 

three (3) days of receiving a copy of this Order, a sworn statement setting forth, for each Asset or 

account covered by this Section:

1. The identification number of each such account or Asset;

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

of each such Asset as of the close of business on the day on which this 

Order is served, and, if the account or other Asset has been closed or 

removed, the date closed or removed, the total funds removed in order to 

close the account, and the name of the person or entity to whom such 

account or other Asset was remitted; 

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

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

any Defendant, or is otherwise subject to access by any Defendant; and

4. The cryptographic hash value, time stamp, transaction data, public 

addresses or other information sufficient to identify, locate, and track 

cryptocurrency in any blockchain or distributed ledger technology system 

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that is belonging to, for the use or benefit of, under the control of, or 

subject to access by any Defendant; and 

D. Upon the request of Plaintiff’s counsel or the Receiver, promptly provide 

Plaintiff’s counsel and the Receiver with copies of all records or other Documents pertaining to 

each Asset or account covered by this Section, including originals or copies of account 

applications, account statements, signature cards, checks, drafts, deposit tickets, transfers to and 

from the accounts, including wire transfers and wire transfer instructions, all other debit and 

credit instruments or slips, currency transaction reports, 1099 forms, and all logs and records 

pertaining to safe deposit boxes, commercial mail boxes, and storage facilities.

Provided, however, that this Section does not prohibit any transfers to the Receiver or 

repatriation of foreign Assets specifically required by this Order.

VIII. FINANCIAL DISCLOSURES

IT IS FURTHER ORDERED that each Defendant, within five (5) days of service of 

this Order upon them, will prepare and deliver to Plaintiff’s counsel and the Receiver:

A. Completed financial statements on the forms attached to this Order as 

Attachment C (Financial Statement of Individual Defendant) for each Individual Defendant, and 

Attachment D (Financial Statement of Corporate Defendant) for each Corporate Defendant; 

B. Completed cryptocurrency financial statement on the form attached to this Order 

as Attachment E; and

C. Completed Attachment F (IRS Form 4506, Request for Copy of a Tax Return) 

for each Individual and Corporate Defendant.

IX. FOREIGN ASSET REPATRIATION

IT IS FURTHER ORDERED that within five (5) days following the service of this 

Order, each Defendant will:

A. Provide Plaintiff’s counsel and the Receiver with a full accounting, verified under 

oath and accurate as of the date of this Order, of all Assets, Documents, and accounts outside of 

the United States which are: (1) titled in the name, individually or jointly, of any Defendant; (2) 

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held by any person or entity for the benefit of any Defendant or for the benefit of, any 

corporation, partnership, asset protection trust, or other entity that is directly or indirectly owned, 

managed or controlled by any Defendant; or (3) under the direct or indirect control, whether 

jointly or singly, of any Defendant; 

B. Take all steps necessary to provide Plaintiff’s counsel and Receiver access to all 

Documents and records that may be held by third parties located outside of the territorial United 

States of America, including signing the Consent to Release of Financial Records appended to 

this Order as Attachment G.

C. Transfer to the territory of the United States all Documents and Assets located in 

foreign countries that are: (1) titled in the name, individually or jointly, of any Defendant; (2) 

held by any person or entity for the benefit of any Defendant or for the benefit of, any 

corporation, partnership, asset protection trust, or other entity that is directly or indirectly owned, 

managed or controlled by any Defendant; or (3) under the direct or indirect control, whether 

jointly or singly, of any Defendant; and

D. The same business day as any repatriation, (1) notify the Receiver and counsel for 

Plaintiff of the name and location of the financial institution or other entity that is the recipient of 

such Documents or Assets; and (2) serve this Order on any such financial institution or other 

entity.

X. NON-INTERFERENCE WITH REPATRIATION

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, are hereby temporarily 

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 

this Order, including, but not limited to:

A. Sending any communication 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 

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occurred under the terms of a foreign trust agreement until such time that all Defendants’ Assets 

have been fully repatriated pursuant to this Order; or

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 that all Defendants’ Assets have been fully repatriated pursuant to 

this Order.

XI. CONSUMER CREDIT REPORTS

IT IS FURTHER ORDERED that Plaintiff may obtain credit reports concerning any 

Defendant pursuant to Section 604(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. 

§ 1681b(a)(1), and that, upon written request, any credit reporting agency from which such 

reports are requested will provide them to Plaintiff.

XII. PRESERVATION OF RECORDS

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, are hereby temporarily 

restrained and enjoined from:

A. Destroying, erasing, falsifying, writing over, mutilating, concealing, altering, 

transferring, or otherwise disposing of, in any manner, directly or indirectly, Documents that 

relate to: (1) the business, business practices, Assets, or business or personal finances of any 

Defendant; (2) the business practices or finances of entities directly or indirectly under the 

control of any Defendant; or (3) the business practices or finances of entities directly or 

indirectly under common control with any other Defendant; and

B. Failing to create and maintain Documents that, in reasonable detail, accurately, 

fairly, and completely reflect Defendants’ incomes, disbursements, transactions, and use of 

Defendants’ Assets.

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XIII. REPORT OF NEW BUSINESS ACTIVITY

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, are hereby temporarily 

restrained and enjoined from creating, operating, or exercising any control over any business 

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

partnership, joint venture, sole proprietorship, or corporation, without first providing Plaintiff’s 

counsel and the Receiver with a written statement disclosing: (1) the name of the business 

entity; (2) the address and telephone number 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.

XIV. TEMPORARY RECEIVER

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

appointed as temporary Receiver of the Receivership Entities with full powers of an equity 

receiver. The Receiver will be solely the agent of this Court in acting as Receiver under this 

Order.

XV. DUTIES AND AUTHORITY OF RECEIVER

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

the following:

A. Assume full control of Receivership Entities by removing, as the Receiver deems 

necessary or advisable, any director, officer, independent contractor, employee, attorney, or 

agent of any Receivership Entity from control of, management of, or participation in the affairs 

of the Receivership Entity;

B. Take exclusive custody, control, and possession of all Assets and Documents of, 

or in the possession, custody, or under the control of, any Receivership Entity, wherever situated;

C. Take exclusive custody, control, and possession of all Documents or Assets 

associated with credits, debits, or charges made on behalf of any Receivership Entity, wherever 

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situated, including reserve funds held by payment processors, credit card processors, merchant 

banks, acquiring banks, independent sales organizations, third party processors, payment 

gateways, insurance companies, or other entities; 

D. Conserve, hold, manage, and prevent the loss of all Assets of the Receivership 

Entities, and perform all acts necessary or advisable to preserve the value of those Assets. The 

Receiver will assume control over the income and profits therefrom and all sums of money now 

or hereafter due or owing to the Receivership Entities. The Receiver will have full power to sue 

for, collect, and receive, all Assets of the Receivership Entities and of other persons or entities 

whose interests are now under the direction, possession, custody, or control of, the Receivership 

Entities. Provided, however, that the Receiver will not attempt to collect any amount from a 

consumer if the Receiver believes the consumer’s debt to the Receivership Entities has resulted 

from the deceptive acts or practices or other violations of law alleged in the Complaint in this 

matter, without prior Court approval;

E. Obtain, conserve, hold, manage, and prevent the loss of all Documents of the 

Receivership Entities, and perform all acts necessary or advisable to preserve such Documents. 

The Receiver will: divert mail; preserve all Documents of the Receivership Entities that are 

accessible via electronic means (such as online access to financial accounts and access to 

electronic Documents held onsite or by Electronic Data Hosts, by changing usernames, 

passwords or other log-in credentials; take possession of all electronic Documents of the 

Receivership Entities stored onsite or remotely; take whatever steps necessary to preserve all 

such Documents; and obtain the assistance of the FTC’s Digital Forensic Unit for the purpose of 

obtaining electronic Documents stored onsite or remotely.

F. 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;

G. 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, 

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and to incur, or authorize the making of, such agreements as may be necessary and advisable in 

discharging his or her duties as Receiver. The Receiver will apply to the Court for prior approval 

of any payment of any debt or obligation incurred by the Receivership Entities prior to the date 

of entry of this Order, except payments that the Receiver deems necessary or advisable to secure 

Assets of the Receivership Entities, such as rental payments;

H. Take all steps necessary to secure and take exclusive custody of each location 

from which the Receivership Entities operate their businesses. Such steps may include, but are 

not limited to, any of the following, as the Receiver deems necessary or advisable: (1) securing 

the location by changing the locks and alarm codes and disconnecting any Internet access or 

other means of access to the computers, servers, internal networks, or other records maintained at 

that location; and (2) requiring any persons present at the location to leave the premises, to 

provide the Receiver with proof of identification, and/or to demonstrate to the satisfaction of the 

Receiver that such persons are not removing from the premises Documents or Assets of the 

Receivership Entities. Law enforcement personnel, including, but not limited to, police or 

sheriffs, may assist the Receiver in implementing these provisions in order to keep the peace and 

maintain security. If requested by the Receiver, the United States Marshal will provide 

appropriate and necessary assistance to the Receiver to implement this Order and is authorized to 

use any necessary and reasonable force to do so;

I. Take all steps necessary to prevent the modification, destruction, or erasure of any 

web page or website registered to and operated, in whole or in part, by any Defendants, and to 

provide access to all such web pages or websites to Plaintiff’s representatives, agents, and 

assistants, as well as Defendants and their representatives; 

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

K. Prevent the inequitable distribution of Assets and determine, adjust, and protect 

the interests of consumers who have transacted business with the Receivership Entities;

L. Make an accounting, as soon as practicable, of the Assets and financial condition 

of the receivership and file the accounting with the Court and deliver copies thereof to all parties;

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M. Institute, compromise, adjust, appear in, intervene in, defend, dispose of, or 

otherwise become party to any legal action in state, federal or foreign courts or arbitration 

proceedings as the Receiver deems necessary and advisable to preserve or recover the Assets of 

the Receivership Entities, or to carry out the Receiver’s mandate under this Order, including but 

not limited to, actions challenging fraudulent or voidable transfers;

N. Issue subpoenas to obtain Documents and records pertaining to the Receivership, 

and conduct discovery in this action on behalf of the receivership estate, in addition to obtaining 

other discovery as set forth in this Order;

O. Open one or more bank accounts at designated depositories for funds of the 

Receivership Entities. The Receiver will deposit all funds of the Receivership Entities in such 

designated accounts and will make all payments and disbursements from the receivership estate 

from such accounts. The Receiver will serve copies of monthly account statements on all 

parties;

P. Maintain accurate records of all receipts and expenditures incurred as Receiver;

Q. Allow the Plaintiff’s representatives, agents, and assistants, as well as

Defendants’ representatives and Defendants themselves, reasonable access to the premises of the 

Receivership Entities, or any other premises where the Receivership Entities conduct business. 

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

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

agents. The Receiver will have the discretion to determine the time, manner, and reasonable 

conditions of such access;

R. Allow the Plaintiff’s representatives, agents, and assistants, as well as Defendants 

and their representatives reasonable access to all Documents in the possession, custody, or 

control of the Receivership Entities; 

S. Cooperate with reasonable requests for information or assistance from any state or 

federal civil or criminal law enforcement agency;

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T. Suspend business operations of the Receivership Entities if in the judgment of the 

Receiver such operations cannot be continued legally and profitably; 

U. If the Receiver identifies a nonparty entity as a Receivership Entity, promptly 

notify the entity as well as the parties, and inform the entity that it can challenge the Receiver’s 

determination by filing a motion with the Court. Provided, however, that the Receiver may delay 

providing such notice until the Receiver has established control of the nonparty entity and its 

Assets and records, if the Receiver determines that notice to the entity or the parties before the 

Receiver establishes control over the entity may result in the destruction of records, dissipation 

of Assets, or any other obstruction of the Receiver’s control of the entity; and

V. If in the Receiver’s judgment the business operations cannot be continued legally 

and profitably, take all steps necessary to ensure that any of the Receivership Entities’ web pages 

or websites relating to the activities alleged in the Complaint cannot be accessed by the public, or 

are modified for consumer education and/or informational purposes, and take all steps necessary 

to ensure that any telephone numbers associated with the Receivership Entities cannot be 

accessed by the public, or are answered solely to provide consumer education or information 

regarding the status of operations.

XVI. TRANSFER OF RECEIVERSHIP PROPERTY TO RECEIVER

IT IS FURTHER ORDERED that Defendants and any other person with possession, 

custody or control of property of, or records relating to, the Receivership Entities will, upon 

notice of this Order by personal service or otherwise, fully cooperate with and assist the Receiver 

in taking and maintaining possession, custody, or control of the Assets and Documents of the 

Receivership Entities and immediately transfer or deliver to the Receiver possession, custody, 

and control of, the following:

A. All Assets held by or for the benefit of the Receivership Entities;

B. All Documents or Assets associated with credits, debits, or charges made on 

behalf of any Receivership Entity, wherever situated, including reserve funds held by payment 

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processors, credit card processors, merchant banks, acquiring banks, independent sales 

organizations, third party processors, payment gateways, insurance companies, or other entities; 

C. All Documents of or pertaining to the Receivership Entities;

D. All computers, electronic devices, mobile devices and machines used to conduct 

the business of the Receivership Entities;

E. All Assets and Documents belonging to other persons or entities whose interests 

are under the direction, possession, custody, or control of the Receivership Entities; and

F. All keys, codes, user names and passwords necessary to gain or to secure access 

to any Assets or Documents of or pertaining to the Receivership Entities, including access to 

their business premises, means of communication, accounts, computer systems (onsite and 

remote), Electronic Data Hosts, or other property.

In the event that any person or entity fails to deliver or transfer any 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 and a motion seeking compliance or a 

contempt citation.

XVII. PROVISION OF INFORMATION TO RECEIVER

IT IS FURTHER ORDERED that Defendants will immediately provide to the Receiver:

A. A list of all Assets and accounts of the Receivership Entities that are held in any 

name other than the name of a Receivership Entity, or by any person or entity other than a 

Receivership Entity;

B. A list of all agents, employees, officers, attorneys, servants and those persons in 

active concert and participation with the Receivership Entities, or who have been associated or 

done business with the Receivership Entities; and

C. A description of any Documents covered by attorney-client privilege or attorney 

work product, including files where such Documents are likely to be located, authors or 

recipients of such Documents, and search terms likely to identify such electronic Documents.

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XVIII. COOPERATION WITH THE RECEIVER

IT IS FURTHER ORDERED that Defendants; Receivership Entities; Defendants’ or 

Receivership Entities’ officers, agents, employees, and attorneys, all other persons in active 

concert or participation with any of them, and any other person with possession, custody, or 

control of property of or records relating to the Receivership Entities who receive actual notice 

of this Order will fully cooperate with and assist the Receiver. This cooperation and assistance 

will include, but is not limited to, providing information to the Receiver that the Receiver deems 

necessary to exercise the authority and discharge the responsibilities of the Receiver under this 

Order; providing any keys, codes, user names and passwords required to access any computers, 

electronic devices, mobile devices, and machines (onsite or remotely) and any cloud account 

(including specific method to access account) or electronic file in any medium; advising all 

persons who owe money to any Receivership Entity that all debts should be paid directly to the 

Receiver; and transferring funds at the Receiver’s direction and producing records related to the 

Assets and sales of the Receivership Entities.

XIX. NON-INTERFERENCE WITH THE RECEIVER

IT IS FURTHER ORDERED that Defendants; Receivership Entities; Defendants’ or 

Receivership Entities’ officers, agents, employees, attorneys, and all other persons in active 

concert or participation with any of them, who receive actual notice of this Order, and any other 

person served with a copy of this Order, are hereby restrained and enjoined from directly or 

indirectly:

A. Interfering with the Receiver’s efforts to manage, or take custody, control, or 

possession of, the Assets or Documents subject to the receivership;

B. Transacting any of the business of the Receivership Entities;

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 Entities; or

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D. Refusing 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.

XX. STAY OF ACTIONS

IT IS FURTHER ORDERED that, except by leave of this Court, during the pendency of 

the receivership ordered herein, Defendants, Defendants’ officers, agents, employees, attorneys, 

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

notice of this Order, and their corporations, subsidiaries, divisions, or affiliates, and all investors, 

creditors, stockholders, lessors, customers and other persons seeking to establish or enforce any 

claim, right, or interest against or on behalf of Defendants, and all others acting for or on behalf 

of such persons, are hereby enjoined from taking action that would interfere with the exclusive 

jurisdiction of this Court over the Assets or Documents of the Receivership Entities, including, 

but not limited to: 

A. Filing or assisting in the filing of a petition for relief under the Bankruptcy Code, 

11 U.S.C. § 101 et seq., or of any similar insolvency proceeding on behalf of the Receivership 

Entities;

B. Commencing, prosecuting, or continuing a judicial, administrative, or other action 

or proceeding against the Receivership Entities, including the issuance or employment of process 

against the Receivership Entities, except that such actions may be commenced if necessary to toll 

any applicable statute of limitations;

C. Filing or enforcing any lien on any Asset of the Receivership Entities, taking or 

attempting to take possession, custody, or control of any Asset of the Receivership Entities; or 

attempting to foreclose, forfeit, alter, or terminate any interest in any Asset of the Receivership 

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

Provided, however, that this Order does not stay: (1) the commencement or continuation 

of a criminal action or proceeding; (2) the commencement or continuation of an action or 

proceeding by a governmental unit to enforce such governmental unit’s police or regulatory 

power; or (3) the enforcement of a judgment, other than a money judgment, obtained in an action 

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or proceeding by a governmental unit to enforce such governmental unit’s police or regulatory 

power.

XXI. 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 outof-pocket expenses incurred by them, from the Assets now held by, in the possession or control 

of, or which may be received by, the Receivership Entities. The Receiver will 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 entry of this Order. The 

Receiver will not increase the hourly rates used as the bases for such fee applications without 

prior approval of the Court.

XXII. RECEIVER’S BOND

IT IS FURTHER ORDERED that the Receiver will file with the Clerk of this Court a 

bond in the sum of ten thousand dollars ($10,000) 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. 28 U.S.C. § 754.

XXIII. DISTRIBUTION OF ORDER BY DEFENDANTS

IT IS FURTHER ORDERED that Defendants will immediately provide a copy of this 

Order to each affiliate, telemarketer, marketer, sales entity, successor, assign, member, officer, 

director, employee, agent, independent contractor, client, attorney, spouse, subsidiary, division, 

and representative of any Defendant, and will, within ten (10) days from the date of entry of this 

Order, provide Plaintiff and the Receiver with a sworn statement that this provision of the Order 

has been satisfied, which statement will include the names, physical addresses, phone number, 

and email addresses of each such person or entity who received a copy of the Order. 

Furthermore, Defendants will not take any action that would encourage officers, agents, 

members, directors, employees, salespersons, independent contractors, attorneys, subsidiaries, 

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affiliates, successors, assigns or other persons or entities in active concert or participation with 

them to disregard this Order or believe that they are not bound by its provisions.

XXIV. EXPEDITED DISCOVERY

IT IS FURTHER ORDERED that, notwithstanding the provisions of Federal Rules of 

Civil Procedure 26(d) and (f) and 30(a)(2)(A)(iii), and pursuant to Federal Rules of Civil

Procedure 30(a), 34, and 45, Plaintiff and the Receiver are granted leave, at any time after 

service of this Order, to conduct limited expedited discovery for the purpose of discovering: 

(1) the nature, location, status, and extent of Defendants’ Assets; (2) the nature, location, and 

extent of Defendants’ business transactions and operations; (3) Documents reflecting 

Defendants’ business transactions and operations; or (4) compliance with this Order. The limited 

expedited discovery set forth in this Section will proceed as follows:

A. Plaintiff and the Receiver may take the deposition of parties and non-parties. 

Forty-eight (48) hours’ notice will be sufficient notice for such depositions. The limitations and 

conditions set forth in Rules 30(a)(2)(B) and 31(a)(2)(B) of the Federal Rules of Civil Procedure 

regarding subsequent depositions of an individual will not apply to depositions taken pursuant to 

this Section. Any such deposition taken pursuant to this Section will not be counted towards the 

deposition limit set forth in Rules 30(a)(2)(A) and 31(a)(2)(A) and depositions may be taken by 

telephone or other remote electronic means. 

B. Plaintiff and the Receiver may serve upon parties requests for production of 

Documents or inspection that require production or inspection within five (5) days of service, 

provided, however, that three (3) days of notice will be deemed sufficient for the production of 

any such Documents that are maintained or stored only in an electronic format.

C. Plaintiff and the Receiver may serve upon parties interrogatories that require 

response within five (5) days after Plaintiff serves such interrogatories.

D. The Plaintiff and the Receiver may serve subpoenas upon non-parties that direct 

production or inspection within five (5) days of service.

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E. Service of discovery upon a party to this action, taken pursuant to this Section, 

will be sufficient if made by facsimile, email, or by overnight delivery.

F. Any expedited discovery taken pursuant to this Section is in addition to, and is not 

subject to, the limits on discovery set forth in the Federal Rules of Civil Procedure and the Local 

Rules of this Court. The expedited discovery permitted by this Section does not require a 

meeting or conference of the parties, pursuant to Rules 26(d) and (f) of the Federal Rules of Civil 

Procedure.

G. The Parties are exempted from making initial disclosures under Federal Rule of 

Civil Procedure 26(a)(1) until further order of this Court.

XXV. SERVICE OF THIS ORDER

IT IS FURTHER ORDERED that copies of this Order as well as the Application for 

Temporary Restraining Order and all other pleadings, Documents, and exhibits filed 

contemporaneously with that Motion (other than the Complaint and summons), may be served by 

any means, including facsimile transmission, electronic mail or other electronic messaging, 

personal or overnight delivery, U.S. Mail or FedEx, by agents and employees of Plaintiff, by any 

law enforcement agency, or by private process server, upon any Defendant or any person 

(including any financial institution) that may have possession, custody or control of any Asset or 

Document of any Defendant, or that may be subject to any provision of this Order pursuant to 

Rule 65(d)(2) of the Federal Rules of Civil Procedure. For purposes of this Section, service upon 

any branch, subsidiary, affiliate or office of any entity will effect service upon the entire entity. 

XXVI. CORRESPONDENCE AND SERVICE ON PLAINTIFF

IT IS FURTHER ORDERED that, for the purpose of this Order, all correspondence and 

service of pleadings on Plaintiff will be addressed to:

Roberta Tonelli

Emily Burton

Colin Hector

Federal Trade Commission

901 Market Street, Suite 570

San Francisco, CA 94103

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Tel: (415) 848-5197, -5111, -5195

Fax: (415) 848-5184

Email: rtonelli@ftc.gov; eburton@ftc.gov; chector@ftc.gov

XXVII. PRELIMINARY INJUNCTION HEARING

IT IS FURTHER ORDERED that, pursuant to Federal Rule of Civil Procedure 65(b) and 

Local Rule 65-1, Defendants must appear before this Court on August 1, 2019, at 2:00 p.m. to 

show cause, if there is any, why this Court should not enter a preliminary injunction, pending 

final ruling on the Complaint against Defendants, enjoining the violations of the law alleged in 

the Complaint, continuing the freeze of their Assets, continuing the receivership, and imposing 

such additional relief as may be appropriate. 

XXVIII. PRELIMINARY INJUNCTION HEARING

IT IS FURTHER ORDERED that:

A. Defendants will file with the Court and serve on Plaintiff’s counsel any answering 

pleadings, affidavits, motions, expert reports or declarations, or legal memoranda no later than 

four (4) days prior to the injunction hearing. Plaintiff may file responsive or supplemental 

pleadings, materials, affidavits, or memoranda with the Court and serve the same on counsel for 

Defendants no later than one (1) day prior to the order to show cause hearing. Provided that such 

affidavits, pleadings, motions, expert reports, declarations, legal memoranda or oppositions must 

be served by personal or overnight delivery, facsimile or email, and be received by the other 

party or parties no later than 5:00 p.m. (Pacific Time) on the appropriate dates set forth in this 

Section. 

B. Defendants may request an evidentiary hearing and the presentation of live 

witnesses if they believe that is warranted. They will advise the Court and the FTC as early as 

possible with such a request, and will provide a statement explaining why they are making the 

request. Otherwise, and unless ordered differently by the Court, the injunction hearing will not 

include live witnesses or evidentiary proceedings. 

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XXIX. DURATION OF THE ORDER

This Order will expire fourteen (14) days from the date of entry noted below, unless

within such time, the Order is extended for an additional period pursuant to Federal Rule of Civil 

Procedure 65(b)(2).

XXX. RETENTION OF JURISDICTION

The Court retains jurisdiction of this matter for all purposes.

IT IS SO ORDERED.

DATED: July 18, 2019

_______________________________

JAMES DONATO

United States District Judge

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