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UNDERSEA 

1 ALDEN F. ABBOTT 

General Counsel 

STEPHEN T. FAIR CHILD 

WA Bar No. 41214; sfairchild@ftc.gov 

RICHARD MCKEWEN 

WA Bar No. 45041; rmckewen@ftc.gov 

FEDERAL TRADE COMMISSION 

915 Second Avenue, Suite 2896 

Seattle, WA 98174 

Tel. : (206) 220-6350; Fax: (206) 220-6366 

ROBERT J. QUIGLEY, Local Counsel 

CA Bar No. 302879; rquigley@ftc.gov 

FEDERAL TRADE COMMISSION 

10990 Wilshire Boulevard, Suite 400 

Los Angeles, CA 90024 

Tel.: (310) 824-4300; Fax: (310) 824-4380 

Attorneys for Plaintiff 

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FILED 

CLERK, U.S. DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORJ<IA 

DY: LB DEPUTY 

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UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

17 FEDERAL TRADE COMMISSION, 

Plaintiff, 

V. 

MERICAN FINANCIAL SUPPORT 

SERVICES INC., et al., 

Defendants. 

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Civ. No. SACV 19-02109NS(ADSx)

EXPARTETEMPORARY 

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 

FILED UNDER SEAL 

Case 8:19-cv-02109-JVS-ADS Document 41 Filed 11/04/19 Page 1 of 32 Page ID #:2342 
Plaintiff, the Federal Trade Commission, has filed its Complaint for 

Permanent Injunction and Other Equitable Relief pursuant to Sections 13(b) and 19 

of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 53(b), 57b, and 

the Telemarketing and Consumer Fraud and Abuse Prevention Act 

(“Telemarketing Act”), 15 U.S.C. §§ 6101–6108, and has moved, pursuant to Fed. 

R. Civ. P. 65(b), for a temporary restraining order, asset freeze, other equitable 

relief, and an order to show cause why a preliminary injunction should not issue 

against Defendants. 

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Case 8:19-cv-02109-JVS-ADS Document 41 Filed 11/04/19 Page 2 of 32 Page ID #:2343 

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FINDINGS OF FACT 

The Court, having considered the Complaint, the ex parte Application for a 

Temporary Restraining Order, declarations, exhibits, and the Memorandum of 

Points and Authorities filed in support thereof, and being otherwise advised, finds 

that: 

A. This Court has jurisdiction over the subject matter of this 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. In numerous instances, Defendants misrepresent the nature of the student 

loan debt relief services they offer, including that they are affiliated or 

work directly with the U.S. Department of Education or its authorized 

loan servicers; that consumers who purchase Defendants’ services will 

have their monthly student loan payments reduced to a lower, specific 

amount or have their loan balances forgiven in whole or in part; that most

or all of consumers’ monthly payments to Defendants will be applied 

toward consumers’ student loans; and that Defendants will assume 

responsibility for servicing consumers’ student loans. In addition, 

Defendants charge or attempt to charge unlawful upfront fees for their 

services. 

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 – 1 
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Case 8:19-cv-02109-JVS-ADS Document 41 Filed 11/04/19 Page 3 of 32 Page ID #:2344 

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C. There is good cause to believe that Defendants 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), and the FTC’s Telemarketing Sales Rule 

(“TSR”), 16 C.F.R. pt. 310, and that Plaintiff is therefore likely to prevail 

on the merits of this action. As demonstrated by the consumer 

declarations, consumer complaints, and the additional documentation 

filed by the FTC, the FTC has established a likelihood of success in 

showing that Defendants have made deceptive representations in the 

marketing and sale of student loan debt relief services and collected 

unlawful advance fees from consumers. 

D. There is good cause to believe that immediate and irreparable harm will 

result from Defendants’ ongoing violations of the FTC Act and the TSR 

unless Defendants are restrained and enjoined by order of this Court. 

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 by order of this Court; and that, in accordance 

with Fed. R. Civ. P. 65(b) and Local Rule 7-19.2, the interests of justice 

require that this Order be granted without prior notice to Defendants. 

Thus, there is good cause for relieving Plaintiff of the duty to provide 

Defendants with prior notice of its ex parte application for temporary 

restraining order, and the notice requirement of Local Rule 7-19.1 is 

hereby waived. 

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

Receivership Entities, freezing Defendants’ assets, permitting the 

Receiver and the Plaintiff immediate access to the Defendants’ business 

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 – 2 
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Case 8:19-cv-02109-JVS-ADS Document 41 Filed 11/04/19 Page 4 of 32 Page ID #:2345 

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premises, and permitting the Receiver and the Plaintiff to take expedited 

discovery.

G. Weighing the equities and considering Plaintiff’s likelihood of ultimate 

success on the merits, a temporary restraining order with an asset freeze, 

the appointment of a temporary receiver, immediate access to business 

premises, expedited discovery, and other equitable relief is in the public 

interest. 

H. This Court has authority to issue this Order pursuant to Sections 13(b) 

and 19 of the FTC Act, 15 U.S.C. §§ 53(b), 57b; 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 shall apply:

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

any property, wherever located and by whomever held. 

B. “Corporate Defendants” means: 

• American Financial Support Services Inc.; 

• Arete Financial Group, also d/b/a Arete Financial Freedom; 

• Arete Financial Group LLC; 

• CBC Conglomerate LLC, also d/b/a 1file.org; 

• Diamond Choice Inc., also d/b/a Interest Rate Solutions;

• J&L Enterprise LLC, also d/ba Premier Solutions Servicing;

• La Casa Bonita Investments, Inc., f/k/a La Casa Bonita Investments LLC, 

 also d/b/a Education Loan Network, also d/b/a Edunet; 

• US Financial Freedom Center, Inc.; 

and each of their subsidiaries, affiliates, successors, and assigns. 

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 – 3 
 

 

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C. “Debt Relief Service” means any program or service represented, 

directly or by implication, to renegotiate, settle, or in any way alter the terms of 

payment or other terms of the debt between a person and one or more unsecured 

creditors or debt collectors, including, but not limited to, a reduction in the balance, 

interest rate, or fees owed by a person to an unsecured creditor or debt collector. 

D. “Defendant(s)” means Corporate Defendants, Individual Defendants, 

and Relief Defendant, 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), 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 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 non-identical copy is a 

separate document within the meaning of the term.

F. “ED” means the United States Department of Education. 

G. “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. 

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

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

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 – 4 
 

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any brokerage house, trustee, broker-dealer, escrow agent, title company, 

commodity trading company, or precious metal dealer. 

I. “Individual Defendant(s)” means Carey G. Howe, Anna C. Howe, 

Shunmin “Mike” Hsu, Ruddy Palacios a/k/a Ruddy Barahona, Oliver Pomazi, and 

Jay Singh, individually, collectively, or in any combination. 

J. “Receiver” means the temporary receiver appointed in Section XI of 

this Order and any deputy receivers that shall be named by the temporary receiver. 

K. “Receivership Entities” means (1) the Corporate Defendants and (2) 

any other entity that has conducted any business related to Defendants’ marketing 

and sale of Debt Relief Services, 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. 

L. “Relief Defendant” means MJ Wealth Solutions, LLC. 

ORDER 

I. PROHIBITED BUSINESS ACTIVITIES 

IT IS THEREFORE ORDERED that Defendants, Defendants’ officers, 

agents, employees, and attorneys, and all other persons in active concert or 

participation with them, who receive actual notice of this Order by personal service 

or otherwise, 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: 

A. misrepresenting or assisting others in misrepresenting, expressly or by 

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

1. consumers who purchase Defendants’ Debt Relief Services will

have their monthly student loan payments reduced to a lower, 

specific amount or have their loan balances forgiven in whole 

or in part; 

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 – 5 
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Case 8:19-cv-02109-JVS-ADS Document 41 Filed 11/04/19 Page 7 of 32 Page ID #:2348 

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2. most or all of consumers’ monthly payments to Defendants will 

be applied toward consumers’ student loans;

3. Defendants will assume responsibility for servicing consumers’ 

student loans;

4. Defendants are affiliated or work directly with ED or one of 

ED’s authorized loan servicers; 

5. 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; 

and, 

B. requesting or receiving payment of a fee or consideration for Debt 

Relief Services before (a) Defendants have renegotiated, settled, 

reduced, or otherwise altered the terms of at least one debt pursuant to 

a settlement agreement, debt management plan, or other such valid 

contractual agreement executed by the customer; and (b) the customer 

has made at least one payment pursuant to that settlement agreement, 

debt management plan, or other valid contractual agreement between 

the customer and the creditor. 

II. 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 

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 – 6 
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Case 8:19-cv-02109-JVS-ADS Document 41 Filed 11/04/19 Page 8 of 32 Page ID #:2349 

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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, 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. 

III. 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, 

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 – 7 
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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 any 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 bank card or corporate credit card account 

for which any Defendant is, or was on the date that this Order was 

signed, an authorized signor; or 

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 shall 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. 

IV. DUTIES OF ASSET HOLDERS AND OTHER THIRD PARTIES 

IT IS FURTHER ORDERED that any Financial Institution, Electronic 

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

bank, independent sales organization, third party processor, payment gateway, 

insurance company, business entity, or person who receives actual notice of this 

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 – 8 
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Order (by personal 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, 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 

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

account, shall: 

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 preexisting 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 

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 – 9 
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any Defendant, either individually or jointly, or otherwise subject to 

access by any Defendant; 

C. 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; and 

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, 

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 account covered by this 

Section or Asset, 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 

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 – 10 
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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. 

V. FINANCIAL DISCLOSURES 

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

service of this Order upon them, shall prepare and deliver to Plaintiff’s counsel and 

the Receiver: 

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

Attachment A (Financial Statement of Individual Defendant) for each

Individual Defendant, and Attachment B (Financial Statement of 

Corporate Defendant) for each Corporate Defendant; and 

B. completed Attachment C (IRS Form 4506, Request for Copy of a 

Tax Return) for each Individual and Corporate Defendant. 

VI. FOREIGN ASSET REPATRIATION 

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

service of this Order, each Defendant shall: 

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) 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 

 

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 – 11
 

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located outside of the territorial United States of America, including 

signing the Consent to Release of Financial Records appended to this 

Order as Attachment D; 

C. transfer to the territory of the United States all Documents and Assets 

located in foreign countries which 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. 

VII. 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 occurred under the terms of a foreign 

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 – 12 
 

 

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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. 

VIII. 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 shall provide them to 

Plaintiff.

IX. 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, spoliating, 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 

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 – 13 
 

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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. 

X. 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. 

XI. TEMPORARY RECEIVER 

IT IS FURTHER ORDERED that Thomas W. McNamara, Esq. is 

appointed as temporary receiver of the Receivership Entities with full powers of an

equity receiver. The Receiver shall be solely the agent of this Court in acting as 

Receiver under this Order. 

XII. 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 

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 – 14 
 

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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 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 shall 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 

shall 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 shall 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 shall: divert 

mail; preserve all Documents of the Receivership Entities that are 

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 – 15 
 

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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, 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 

shall 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, including but not limited to: 

 1261 East Dyer Road, Suites 100 & 250, Santa Ana, CA 92705; 

 5772 Bolsa Avenue, Suite 220, Huntington Beach, CA 92649; 

 18001 Sky Park Circle, Suites L–M, Irvine, CA 92614; and 

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 – 16 
 

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 500 Ygnacio Valley Road, Suite 430, Walnut Creek, CA 94596. 

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 page 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; 

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 – 17 
 

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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; 

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 shall deposit all funds of 

the Receivership Entities in such designated accounts and shall make 

all payments and disbursements from the receivership estate from 

such accounts. The Receiver shall serve copies of monthly account 

statements on all parties; 

P. maintain accurate records of all receipts and expenditures incurred as 

Receiver;

Q. allow the Plaintiffs’ 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 shall be to inspect and copy any and all books, 

records, Documents, accounts, and other property owned by, or in the 

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 – 18 
 

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possession of, the Receivership Entities or their agents. The Receiver 

shall have the discretion to determine the time, manner, and 

reasonable conditions of such access; 

R. allow the Plaintiffs’ 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;

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 

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 – 19 
 

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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. 

XIII. 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 shall, 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 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, 

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 – 20 
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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.

XIV. PROVISION OF INFORMATION TO RECEIVER 

IT IS FURTHER ORDERED that Defendants shall 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. 

XV. 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 shall fully cooperate 

with and assist the Receiver. This cooperation and assistance shall include, but is 

not limited to, providing information to the Receiver that the Receiver deems 

 

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 – 21 
 

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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. 

XVI. 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. interfering with the Receiver’s efforts to determine whether any 

computers, electronic devices, mobile devices, and machines located 

onsite at the time of the immediate access are Assets belonging to the 

Receivership Entities; 

C. transacting any of the business of the Receivership Entities; 

D. 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 

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 – 22 
 

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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. 

XVII. 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; and 

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. 

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 – 23 
 

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 or proceeding by a 

governmental unit to enforce such governmental unit’s police or regulatory power. 

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XVIII. COMPENSATION OF RECEIVER 

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

the Receiver as herein authorized, including counsel to the Receiver and 

accountants, are entitled to reasonable compensation for the performance of duties 

pursuant to this Order and for the cost of actual out-of-pocket expenses incurred by 

them, from the Assets now held by, in the possession or control of, or which may 

be received by, the Receivership Entities. The Receiver shall file with the Court 

and serve on the parties periodic requests for the payment of such reasonable 

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

the date of entry of this Order. The Receiver shall not increase the hourly rates 

used as the bases for such fee applications without prior approval of the Court. 

XIX. RECEIVER’S BOND 

IT IS FURTHER ORDERED that the Receiver shall file with the Clerk of 

this Court a bond in the sum of $5,000 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.

XX. IMMEDIATE ACCESS TO BUSINESS PREMISES AND RECORDS

IT IS FURTHER ORDERED that:

A. in order to allow Plaintiff and the Receiver to preserve Assets and 

evidence relevant to this action and to expedite discovery, Plaintiff 

and the Receiver, and their representatives, agents, contractors, and 

assistants, shall have immediate access to the business premises and 

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 – 24 
 

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storage facilities, owned, controlled, or used by the Receivership 

Entities. Such locations include, but are not limited to: 

• 1261 East Dyer Road, Suites 100 & 250, Santa Ana, CA 92705; 

• 5772 Bolsa Avenue, Suite 220, Huntington Beach, CA 92649; 

• 18001 Sky Park Circle, Suites L–M, Irvine, CA 92614;

• 500 Ygnacio Valley Road, Suite 430, Walnut Creek, CA 94596, 

and any offsite location or commercial mailbox used by the 

Receivership Entities. The Receiver may exclude Defendants, 

Receivership Entities, and their employees from the business premises 

during the immediate access; 

B. Plaintiff and the Receiver, and their representatives, agents, 

contractors, and assistants, are authorized to remove Documents from

the Receivership Entities’ premises in order that they may be 

inspected, inventoried, and copied. Plaintiff shall return any removed 

materials to the Receiver within five (5) business days of completing 

inventorying and copying, or such time as is agreed upon by Plaintiff 

and the Receiver;

C. Plaintiff’s access to the Receivership Entities’ documents pursuant to 

this Section shall not provide grounds for any Defendant to object to 

any subsequent request for documents served by Plaintiff;

D. Plaintiff and the Receiver, and their representatives, agents, 

contractors, and assistants, are authorized to obtain the assistance of 

federal, state and local law enforcement officers as they deem 

necessary to effect service and to implement peacefully the provisions 

of this Order; 

E. if any Documents, computers, or electronic storage devices containing 

information related to the business practices or finances of the 

Receivership Entities are at a location other than those listed herein, 

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 – 25 
 

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including personal residence(s) of any Defendant, then, immediately 

upon receiving notice of this Order, Defendants and Receivership 

Entities shall produce to the Receiver all such Documents, computers, 

and electronic storage devices, along with any codes or passwords 

needed for access. In order to prevent the destruction of computer 

data, upon service of this Order, any such computers or electronic 

storage devices shall be powered down in the normal course of the 

operating system used on such devices and shall not be powered up or 

used until produced for copying and inspection; and 

F. if any communications or records of any Receivership Entity are

stored with an Electronic Data Host, such Entity shall, immediately 

upon receiving notice of this Order, provide the Receiver with the 

username, passwords, and any other login credential needed to access 

the communications and records, and shall not attempt to access, or 

cause a third-party to attempt to access, the communications or

records. 

XXI. DISTRIBUTION OF ORDER BY DEFENDANTS 

IT IS FURTHER ORDERED that Defendants shall 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 

shall, 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 shall 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 shall not take any action that would 

encourage officers, agents, members, directors, employees, salespersons, 

independent contractors, attorneys, subsidiaries, affiliates, successors, assigns or 

EX PARTE TEMPORARY RESTRAINING ORDER WITH ASSET FREEZE, APPOINTMENT

OF A TEMPORARY RECEIVER, AND OTHER EQUITABLE RELIEF, AND ORDER TO

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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. 

XXII.EXPEDITED DISCOVERY 

IT IS FURTHER ORDERED that, notwithstanding the provisions of Fed. 

R. Civ. P. 26(d) & (f) and 30(a)(2)(A)(iii), and pursuant to Fed. R. Civ. P. 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 shall proceed as follows: 

A. Plaintiff and the Receiver may take the deposition of parties and nonparties. Seventy-two (72) hours’ notice shall 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 shall not apply to 

individuals whose depositions are taken pursuant to this Section. Any 

such deposition taken pursuant to this Section shall 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 Any such requests for 

production of Documents or inspection served pursuant to this Section 

shall not be counted towards any subsequent limitation on requests for 

production or inspection ordered in this case; 

EX PARTE TEMPORARY RESTRAINING ORDER WITH ASSET FREEZE, APPOINTMENT

OF A TEMPORARY RECEIVER, AND OTHER EQUITABLE RELIEF, AND ORDER TO

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

require response within five (5) days after Plaintiff serves such 

interrogatories. Any such interrogatories served pursuant to this 

Section shall not be counted towards the interrogatory limit set forth 

in Rule 33(a)(1);

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

direct production or inspection within five (5) days of service; 

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

Section, shall 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) & (f) of 

the Federal Rules of Civil Procedure; and 

G. the Parties are exempted from making initial disclosures under Fed. R. 

Civ. P. 26(a)(1) until further order of this Court. 

XXIII. SERVICE OF THIS ORDER 

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

Motion 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 

EX PARTE TEMPORARY RESTRAINING ORDER WITH ASSET FREEZE, APPOINTMENT

OF A TEMPORARY RECEIVER, AND OTHER EQUITABLE RELIEF, AND ORDER TO

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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 shall effect service upon the entire entity. 

XXIV. CORRESPONDENCE AND SERVICE ON PLAINTIFF 

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

correspondence and service of pleadings on Plaintiff shall be addressed to:

 

 Stephen T. Fairchild Federal Trade Commission 915 Second Avenue, Suite 2896 Seattle, WA 98174 Tel.: (206) 220-4476 Fax: (206) 220-6366 Email: sfairchild@ftc.gov 

XXV.

IT IS FURTHER ORDERED that, pursuant to Fed. R. Civ. P. 65(b), 

Defendants shall appear before this Court on the 18th day of November , 2019, at 

3:00 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. 

PRELIMINARY INJUNCTION HEARING 

XXVI. BRIEFS AND AFFIDAVITS CONCERNING PRELIMINARY 

INJUNCTION 

IT IS FURTHER ORDERED that:

A. Defendants shall 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 five (5) court days prior to the order to show cause 

hearing scheduled pursuant to this Order. 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 two (2) court days prior to 

 

EX PARTE TEMPORARY RESTRAINING ORDER WITH ASSET FREEZE, APPOINTMENT

OF A TEMPORARY RECEIVER, AND OTHER EQUITABLE RELIEF, AND ORDER TO

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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. An evidentiary hearing on Plaintiff’s request for a preliminary

injunction is not necessary unless Defendants demonstrate that they have, and 

intend to introduce, evidence that raises a genuine and material factual issue. The

question of whether this Court should enter a preliminary injunction shall be 

resolved on the pleadings, declarations, exhibits, and memoranda filed by, and oral

argument of, the parties. Live testimony shall be heard only on further order of 

this Court. Any motion to permit such testimony shall be filed with the Court and 

served on counsel for the other parties at least five (5) days prior to the preliminary

injunction hearing in this matter. Such motion shall set forth the name, address, 

and telephone number of each proposed witness, a detailed summary or affidavit 

revealing the substance of each proposed witness’s expected testimony, and an 

explanation of why the taking of live testimony would be helpful to this Court. 

Any papers opposing a timely motion to present live testimony or to present live 

testimony in response to another party’s timely motion to present live testimony 

shall be filed with this Court and served on the other parties at least three (3) days 

prior to the order to show cause hearing. Provided, however, that service shall be 

performed by personal or overnight delivery, facsimile or email, and Documents 

shall be delivered so that they shall be received by the other parties no later than 

5:00 p.m. (Pacific Time) on the appropriate dates provided in this Section. 

XXVII. DURATION OF THE ORDER 

IT IS FURTHER ORDERED that this Order shall 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 Fed. R. Civ. P. 65(b)(2).

EX PARTE TEMPORARY RESTRAINING ORDER WITH ASSET FREEZE, APPOINTMENT

OF A TEMPORARY RECEIVER, AND OTHER EQUITABLE RELIEF, AND ORDER TO

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XXVIII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of 

this matter for all purposes. 

SO ORDERED, this 4th day of November, 2019, at 3:05 p.m.

________________________________ 

UNITED STATES DISTRICT JUDGE 

JAMES V SELNA 

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 – 31