Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 1 of 25 

UNITED STATES DISTRICT COURT 

FOR THE SOUTHERN DISTRICT OF FLORIDA 

Case No. 1:22-cv-23760 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

DK AUTOMATION LLC, a limited liability 

company, 

AMZ AUTOMATION LLC, a limited liability 

company, 

THATLIFESTYLENINJA LLC, a limited liability 

company, 

PROFICIENT SUPPLY LLC, a limited liability 

company, 

DIGITAL NINJAZ LLC, a limited liability 

company, 

ZONBASE, INC., a Delaware corporation, 

KEVIN DAVID HULSE, a/k/a Kevin David, 

individually and as an officer of DK 

AUTOMATION LLC, AMZ AUTOMATION 

LLC, THATLIFESTYLENINJA LLC, DIGITAL 

NINJAZ LLC, and ZONBASE, INC., and 

DAVID SHAWN ARNETT, individually and as 

an officer of DK AUTOMATION LLC, AMZ 

AUTOMATION LLC, and PROFICIENT 

SUPPLY LLC, 

Defendants. 

STIPULATED ORDER FOR PERMANENT INJUNCTION, 

MONETARY JUDGMENT, AND OTHER RELIEF 

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

Permanent Injunction, Monetary Relief, Civil Penalties, and Other Relief (“Complaint”), for a 

permanent injunction, monetary relief, civil penalties, and other relief in this matter, pursuant to 

Sections 5(m)(1)(A)-(B), 13(b), and 19 of the Federal Trade Commission Act (“FTC Act”), 15 

U.S.C. §§ 45(m)(1)(A)-(B), 53(b), and 57b. The Commission and Defendants stipulate to the 

entry of this Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief 

(“Order”) to resolve all matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive and 

unfair acts or practices in violation of Section 5 of the FTC Act, 15 

U.S.C. § 45, the FTC’s Trade Regulation Rule entitled “Disclosure 

Requirements and Prohibitions Concerning Business Opportunities,” 

16 C.F.R. Part 437, as amended, the Consumer Review Fairness Act of 

2016 (“CRFA”), 15 U.S.C. § 45b, and prior Commission 

determinations concerning unfair and deceptive acts or practices in 

commerce in connection with the marketing, distribution, promotion, 

and sale of goods and services, including business opportunities and 

training programs. 

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

Complaint, except as specifically stated in this Order. Only for 

purposes of this action, Defendants admit the facts necessary to 

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establish jurisdiction. 

4. Defendants waive and release any claims that they may have against 

the Commission that relate to this action, and they agree to bear their 

own costs and attorney fees. 

5. Defendants and the Commission waive all rights to appeal or 

otherwise challenge or contest the validity of this Order. 

DEFINITIONS 

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

A. “Business Coaching Program” means any product or service, including any 

program or plan, that is represented, expressly or by implication, to train or teach a 

consumer how to establish, operate, or improve a business. 

B. “Business Opportunity” means a commercial arrangement in which: 

1. A Seller solicits a prospective Purchaser to enter into a new business; and 

2. The prospective Purchaser makes a required payment; and 

3. The Seller, expressly or by implication, orally or in writing, represents that the 

Seller or one or more Designated Persons will: 

(i) Provide locations for the use or operation of equipment, displays, vending 

machines, or similar devices, owned, leased, controlled, or paid for by the 

Purchaser; or 

(ii) Provide outlets, accounts, or customers, including, but not limited to, 

Internet outlets, accounts, or customers, for the Purchaser’s goods or services; or 

(iii) Buy back any or all of the goods or services that the Purchaser makes, 

produces, fabricates, grows, breeds, modifies, or provides, including but not 

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limited to providing payment for such services as, for example, stuffing envelopes 

from the Purchaser’s home. 

C. “Covered Communication” means a written, oral, or Pictorial review, performance 

assessment, or other similar analysis of goods or services, including conduct related 

to the goods or services. 

D. “Defendants” means all of the Individual Defendants and the Corporate Defendants, 

individually, collectively, or in any combination. 

1. “Corporate Defendants” means DK Automation, LLC, Amz 

Automation, LLC, THATLifeStyleNinja, LLC, Digital Ninjaz LLC, Zonbase, Inc., and 

Proficient Supply LLC and their successors and assigns. 

2. “Individual Defendants” means Kevin David Hulse, a/k/a Kevin David, 

and David Shawn Arnett. 

E. “Designated Person” means any person, other than the Seller, whose goods or 

services the Seller suggests, recommends, or requires that the Purchaser use in 

establishing or operating a new business. 

F. “Earnings Claim(s)” means any oral, written, or visual representation to a 

prospective Purchaser that conveys, expressly or by implication, a specific level or 

range of actual or potential sales, or gross or net income or profits. Earnings claims 

include, but are not limited to: (a) any chart, table, or mathematical calculation that 

demonstrates possible results based upon a combination of variables; and (b) any 

statements from which a prospective Purchaser can reasonably infer that he or she 

will earn a minimum level of income (e.g., “earn enough money to buy a Porsche,” 

“earn a six-figure income,” or “earn your investment back within one year”). 

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G. “EHR” means Ecom Honors Reinsurance Co. Ltd., a non-party that is one-hundred 

percent (100%) owned by Individual Defendant David Shawn Arnett. EHR is a 

signatory to this Order solely for the purpose of stipulating to Sections V.C, VI.A, 

VI.D, and VI.E below. 

H. “General Media” means all print, electronic, internet, social networking, radio and 

other media outlets. 

I. “Pictorial” includes pictures, photographs, video, illustrations, and symbols. 

J. “Prohibited Contract Provision” means a contract provision used in the course of 

selling or leasing goods or services that: 

1. prohibits or restricts the ability of a person who is a party to the contract to 

engage in a Covered Communication; 

2. imposes a penalty or fee against a person who is a party to the contract for 

engaging in a Covered Communication; or 

3. transfers, or requires a person who is a party to the contract to transfer, to 

any other person any intellectual property rights in a Covered 

Communication, with the exception of a non-exclusive license to lawfully 

use a covered communication about a Defendants’ goods, services, or 

conduct. 

K. “Providing locations, outlets, accounts, or customers” means furnishing the 

prospective Purchaser with existing or potential locations, outlets, accounts, or 

customers; requiring, recommending, or suggesting one or more locators or lead 

generating companies; providing a list of locator or lead generating companies; 

collecting a fee on behalf of one or more locators or lead generating companies; 

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offering to furnish a list of locations; or otherwise assisting the prospective Purchaser 

in obtaining his or her own locations, outlets, accounts, or customers. 

L. “Purchaser” means a person who buys a Business Opportunity or Business 

Coaching Program. 

M. “Seller” means a person who offers for sale or sells a Business Opportunity or 

Business Coaching Program. 

ORDER 

I. PROHIBITION CONCERNING EARNINGS CLAIMS 

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

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

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

offering for sale any good or service are permanently restrained and enjoined from making any 

Earnings Claims or assisting others in making any Earnings Claims, expressly or by implication, 

unless: 

A. The Earnings Claims are non-misleading; 

B. At the time the Earnings Claims are made, Defendants: 

1. have a reasonable basis for the claim; 

2. have in their possession written materials that substantiate the claimed 

earnings and that the claimed earnings are typical for consumers 

similarly situated to those to whom the claim is made; and 

3. make the written substantiation available upon request to the 

consumer, potential purchaser, and the FTC; and 

C. Any earnings of the Defendants that form the basis for the Earnings Claims were 

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achieved in compliance with the law. 

II. PROHIBITION AGAINST MISREPRESENTATIONS 

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 

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

permanently restrained and enjoined from misrepresenting or assisting others in misrepresenting, 

expressly or by implication: 

A. The description of the good or service; 

B. That any past performance referenced in Defendants’ advertising, marketing, 

promoting, offering for sale, or selling of any good or service is indicative of future 

results; 

C. That any testimonials Defendants use in the advertising, marketing, promoting, 

offering for sale, or selling of any good or service reflect the experience that 

consumers are likely to have using Defendants’ products or services; 

D. That purchasers or users of Defendants’ products or services will or are likely to 

achieve substantial profits or earnings; 

E. The risk, liquidity, earnings potential, or profitability of goods or services that are the 

subject of a sales offer; 

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

policy for the good or service; or 

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

total costs; any material restrictions; limitations; conditions; or any material aspect of 

its performance, efficacy, nature, or central characteristics. 

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A. 

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III. PROHIBITIONS RELATING TO THE SALE AND MARKETING OF BUSINESS 

COACHING PROGRAMS AND BUSINESS OPPORTUNITIES 

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 Business Coaching Program or Business Opportunity, are permanently restrained and 

enjoined from: 

Failing to disclose, or disclose adequately in writing, material information 

pertaining to any Business Coaching Program or Business Opportunity at least 

seven (7) days before the consumer signs a contract or makes a payment in 

connection with that Business Coaching Program or Business Opportunity 

including: 

1. Basic identifying information of the Seller, including the Seller’s name, 

business address, and telephone number; 

2. Any civil or criminal actions against the Seller or affiliates of the Seller 

for misrepresentation, fraud, or unfair or deceptive acts or practices within 

the 10 years preceding the date that the Business Coaching Program or 

Business Opportunity is offered; 

3. Material terms and conditions of any cancellation or refund policy; 

4. A list of Purchasers and contact information of individuals who purchased 

the Business Coaching Program or Business Opportunity within the last 3 

years; or 

5. Any claim of actual or potential earnings that Purchasers of the Business 

Coaching Program or Business Opportunity may experience. 

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B. 

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Making any Earnings Claim in the General Media unless Defendants state in 

immediate conjunction with the claim the beginning and ending dates when the 

represented earnings were achieved, and the number and percentage of all persons 

who purchased Defendants’ Business Coaching Program or Business Opportunity 

prior to that ending date who achieved at least the stated level of earnings. 

IV. PROHIBITION AGAINST CONSUMER COMPLAINT SUPPRESSION 

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 permanently 

restrained and enjoined from: 

1. Prohibiting or restricting the ability of Purchasers of Defendants’ goods or 

services, Business Opportunities, or Business Coaching Programs from providing 

reviews of those goods and services; 

2. Suppressing the availability of truthful or non-defamatory negative comments or 

reviews of any Defendant, or the Defendant’s goods, services, agents, or 

employees through any means, including threats, intimidation, non-disparagement 

clauses, conditioning refunds, and suppression of online content. If otherwise 

compliant with this Order, a request, made after resolution of a customer’s 

complaint or issue, that the customer post additional truthful information to 

update a review or comment would not comprise suppression of that prior review 

or comment; 

3. Offering to any prospective customer a contract, or offering to any 

customer a renewal contract, that includes a Prohibited Contract Provision; 

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A. 

B. 

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4. Requiring that a customer accept a Prohibited Contract Provision as 

a condition of a Defendant’s fulfillment of its obligations under a customer 

contract; or 

5. Representing, including through any notice, warning, threat to 

enforce, or attempt to enforce, to any purchaser of any good or service — 

regardless of when purchased — that any contract: 

a. Prohibits purchasers from speaking about or publishing truthful or 

non- defamatory negative comments or reviews about any Defendant, or 

the Defendant’s goods, services, agents, or employees; or 

b. Imposes any precondition, penalty, or fee on purchasers speaking 

about or publishing any comments or reviews about any Defendant, or the 

Defendant’s goods, services, agents, or employees. 

Nothing in this Section shall require Defendants to publish or host the content provided by any 

person, affect any other legal duty of a party to a contract, or affect any cause of action arising 

from the breach of such duty. 

V. JUDGMENT FOR MONETARY RELIEF 

IT IS FURTHER ORDERED that: 

Judgment in the amount of fifty-two million, nine-hundred twenty-nine thousand, 

six-hundred twenty-one dollars and seventy-four cents ($52,929,621.74) is entered in favor of 

the Commission against Defendants, jointly and severally, as monetary relief. 

Defendants are ordered to pay to the Commission two million, six hundred 

thousand ($2,600,000), which, as Defendants stipulate, their undersigned counsel holds in 

escrow for no purpose other than payment to the Commission. Such payment must be made 

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C. 

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within 7 days of entry of this Order by electronic fund transfer in accordance with instructions 

previously provided by a representative of the Commission. 

Individual Defendants and EHR are ordered to assign to the Commission sixty 

percent (60%) of right, title, and interest in any claim or right they may have to receive payments 

pursuant to Proprietary Trading Relationship Agreements signed by (1) Individual Defendant 

David Shawn Arnett on December 7, 2021 (as referenced in the email identified in Section 

V.E.12 below), (2) EHR on January 20, 2022, and (3) EHR on March 2, 2022 as well as the 

terms of trading accounts opened pursuant to these agreements in the names of Individual 

Defendant David Shawn Arnett and EHR. Individual Defendants and EHR have signed an 

“Assignment of Contractual Rights to Payments” (“Assignment”) and it shall take effect upon 

the date of entry of this Order. Individual Defendants and EHR shall cooperate fully in such 

Assignment and shall promptly execute all other documents and take all other actions necessary 

or appropriate to affect the assignment of any claim or right they may have to receive such 

payments. Pursuant to this Assignment: 

a. Individual Defendants and EHR must transfer sixty percent (60%) of each 

payment received pursuant to this subsection by the Individual Defendants 

and EHR to the Commission within three (3) business days of the time 

that it is made; 

b. Individual Defendants and EHR must notify the Commission every fifteen 

(15) days in writing on the status of the payments received and provide 

documentation showing any payments received and payments made to the 

Commission; and 

c. Individual Defendants and EHR are responsible for their own attorneys’ 

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D. 

E. 

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fees associated with the Assignment and payments under this subsection. 

Upon the completion of the payments as set forth in Subsections B-C above, the 

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

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

expressly premised upon the truthfulness, accuracy, and completeness of Defendants’ sworn 

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

to the Commission, namely: 

1. the Financial Statement of Individual Defendant Kevin David Hulse 

signed on August 19, 2022, including the attachments; 

2. the Financial Statement of Individual Defendant David Shawn Arnett 

signed on August 5, 2022, including the attachments; 

3. the Financial Statement of Corporate Defendants Amz Automation LLC 

and DK Automation LLC signed by Kevin David Hulse, co-owner, on August 19, 2022, 

including the attachments; 

4. the Financial Statement of Corporate Defendant THATLifestyleNinja 

LLC, signed by Kevin David Hulse, CEO, on August 10, 2022, including the 

attachments; 

5. The Financial Statement of Corporate Defendant Digital Ninjaz LLC 

signed by Kevin David Hulse, CEO, on August 19, 2022, including the attachments; 

6. The Financial Statement of Corporate Defendant Proficient Supply LLC 

signed by David Arnett, Chief Operations Officer, on July 29, 2022, including the 

attachments and an addendum dated August 15, 2022; 

7. The Financial Statement of subsidiary Zonbase, Inc. signed by Kevin 

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David Hulse, CEO, on August 25, 2022, including the attachments; 

8. The additional information and documentation submitted by email from 

Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia 

Siddiqui, and Thomas Harris dated August 6, 2022, attaching Financial Statements and 

additional financial records; 

9. The additional information and documentation submitted by email from 

Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia 

Siddiqui, and Thomas Harris dated August 12, 2022, attaching supplements to some of the 

Financial Statements listed above and additional financial records; 

10. The additional documentation submitted by email from Defendants’ 

counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia Siddiqui, and 

Thomas Harris dated August 16, 2022, attaching additional financial records; 

11. The additional documentation submitted by email from Defendants’ 

counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia Siddiqui, and 

Thomas Harris dated August 18, 2022, attaching additional financial records; 

12. The additional information and documentation submitted by email from 

Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia 

Siddiqui, and Thomas Harris dated August 19, 2022, attaching additional financial 

records; 

13. The additional information and documentation submitted by email from 

Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia 

Siddiqui, and Thomas Harris dated August 22, 2022, attaching supplements to some of 

the Financial Statements listed above and additional financial records; 

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14. The additional information and documentation submitted by email from 

Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia 

Siddiqui, and Thomas Harris dated August 26, 2022, attaching supplements to some of 

the Financial Statements listed above and additional financial records; 

15. The additional information and documentation submitted by email from 

Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia 

Siddiqui, and Thomas Harris dated August 30, 2022, attaching supplements to some of 

the Financial Statements listed above and additional financial records; 

16. The additional documentation submitted by email from Defendants’ 

counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia Siddiqui, and 

Thomas Harris dated September 21, 2022, attaching additional financial records; 

17. The additional documentation submitted by email from Defendants’ 

counsel Greg Christiansen to Commission counsel Colleen Robbins and Sophia Siddiqui 

dated September 27, 2022, attaching additional financial records; 

18. The additional documentation submitted by email from Defendants’ 

counsel Greg Christiansen to Commission counsel Colleen Robbins and Sophia Siddiqui 

dated October 3, 2022, attaching additional financial records; 

19. The additional documentation submitted by email from Defendants’ 

counsel Greg Christiansen to Commission counsel Colleen Robbins dated October 4, 

2022, attaching additional financial records; and 

20. The additional documentation submitted by email from Defendants’ 

counsel Greg Christiansen to Commission counsel Colleen Robbins and Sophia Siddiqui 

dated October 5, 2022, attaching updated Financial Disclosure Statements for Corporate 

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F. 

G. 

A. 

B. 

C. 

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Defendant Proficient Supply LLC signed by David Shawn Arnett, COO, on September 

29, 2022 and for Individual Defendant David Shawn Arnett signed on September 29, 

2022. 

The suspension of the judgment will be lifted as to any Defendant if, upon motion 

by the Commission, the Court finds that Defendant failed to disclose any material asset, 

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

in the financial representations identified above. 

If the suspension of the judgment is lifted, the judgment becomes immediately 

due as to that Defendant in the amount specified in Subsection A above which the parties 

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

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

from the date of entry of this Order. 

VI. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

Defendants and EHR relinquish dominion and all legal and equitable right, title, 

and interest in all assets transferred pursuant to this Order and may not seek the return of any 

assets. 

The facts alleged in the Complaint will be taken as true, without further proof, in 

any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to 

enforce its rights to any payment or monetary judgment pursuant to this Order, such as a 

nondischargeability complaint in any bankruptcy case. 

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

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

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D. 

E. 

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

Defendants and EHR acknowledge that their Taxpayer Identification Numbers 

(Social Security Numbers or Employer Identification Numbers), which Defendants must submit 

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

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

All money received by the Commission pursuant to this Order may be deposited 

into a fund administered by the Commission or its designee to be used for consumer relief, such 

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

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

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

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

determines to be reasonably related to Defendants’ practices alleged in the Complaint. Any 

money not used for relief is to be deposited to the U.S. Treasury. Defendants and EHR have no 

right to challenge any actions the Commission or its representatives may take pursuant to this 

Subsection. 

VII. CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Defendants, 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, are permanently restrained and enjoined from directly or indirectly: 

A. failing to provide sufficient customer information to enable the Commission to 

efficiently administer consumer redress. If a representative of the Commission requests in 

writing any information related to redress, Defendants must provide it, in the form prescribed by 

the Commission, within 14 days; and 

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B. disclosing, using, or benefitting from customer information, including the name, 

address, telephone number, email address, social security number, other identifying information, 

or any data that enables access to a customer’s account (including a credit card, bank account, or 

other financial account), that any Defendant obtained prior to entry of this Order in connection 

with any activity involving or related to the sale of any Business Coaching Program or Business 

Opportunity. 

Provided, however, that customer information need not be disposed of, and may be 

disclosed, to the extent requested by a government agency or required by law, regulation, or 

court order. 

VIII. COOPERATION 

IT IS FURTHER ORDERED that Defendants must fully cooperate with representatives 

of the Commission in this case and in any investigation related to or associated with the 

transactions or the occurrences that are the subject of the Complaint. Defendants must provide 

truthful and complete information, evidence, and testimony. Individual Defendants must appear, 

and such Corporate Defendants must cause their officers, employees, representatives, or agents 

to appear for interviews, discovery, hearings, trials, and any other proceedings that a 

Commission representative may reasonably request upon 5 days written notice, or other 

reasonable notice, at such places and times as a Commission representative may designate, 

without the service of a subpoena. 

IX. NOTICE TO CUSTOMERS 

IT IS FURTHER ORDERED that, within 7 days of entry of this Order, Defendants 

shall email notice in the form shown in Attachment A to all persons who purchased Defendants’ 

goods or services of any type at any time between May 10, 2019 and the date of the entry of this 

Order with the subject line “What the FTC Settlement Means for Kevin David and DK 

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A. 

B. 

C. 

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Automation’s Customers.” Within 15 days of entry of this Order, Defendants shall mail the form 

shown in Attachment A via first-class mail, postage prepaid with address forwarding requested, 

to the last known mailing address of any intended email recipient whose emailed message 

delivery fails. No information other than that contained in Attachment A shall be included in or 

added to the notice required by this Section, nor shall any other materials be transmitted with the 

notice. 

X. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of 

this Order: 

Each Defendant, within 7 days of entry of this Order, must submit to the 

Commission an acknowledgment of receipt of this Order sworn under penalty of perjury. 

For 10 years after entry of this Order, each Individual Defendant for any business 

that such Defendant, individually or collectively with any other Defendants, is the majority 

owner or controls directly or indirectly, and each Corporate Defendant, must deliver a copy of 

this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all 

employees having managerial responsibilities for conduct related to the subject matter of the 

Order and all agents and representatives who participate in conduct related to the subject matter 

of the Order; and (3) any business entity resulting from any change in structure as set forth in the 

Section titled Compliance Reporting. Delivery must occur within 7 days of entry of this Order 

for current personnel. For all others, delivery must occur before they assume their 

responsibilities. 

From each individual or entity to which a Defendant delivered a copy of this 

Order, that Defendant must obtain, within 30 days, a signed and dated acknowledgment of 

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A. 

B. 

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receipt of this Order. 

XI. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

Commission: 

One year after entry of this Order, each Defendant must submit a compliance 

report, sworn under penalty of perjury: 

1. Each Defendant must: (a) identify the primary physical, postal, and email 

address and telephone number, as designated points of contact, which representatives of 

the Commission may use to communicate with Defendant; (b) identify all of that 

Defendant’s businesses by all of their names, telephone numbers, and physical, postal, 

email, and Internet addresses; (c) describe the activities of each business, including the 

goods and services offered, the means of advertising, marketing, and sales, and the 

involvement of any other Defendant (which Individual Defendants must describe if they 

know or should know due to their own involvement); (d) describe in detail whether and 

how that Defendant is in compliance with each Section of this Order; and (e) provide a 

copy of each Order Acknowledgment obtained pursuant to this Order, unless previously 

submitted to the Commission. 

For 10 years after entry of this Order, each Defendant must submit a compliance 

notice, sworn under penalty of perjury, within 14 days of any change in the following: 

1. Each Defendant must report any change in: (a) any designated point of 

contact; or (b) the structure of any Corporate Defendant or any entity that Defendant has 

any ownership interest in or controls directly or indirectly that may affect compliance 

obligations arising under this Order, including: creation, merger, sale, or dissolution of 

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C. 

D. 

E. 

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the entity or any subsidiary, parent, or affiliate that engages in any acts or practices 

subject to this Order. 

2. Additionally, each Individual Defendant must report any change in: (a) 

name, including aliases or fictitious name, or residence address; or (b) title or role in any 

business activity, including any business for which such Defendant performs services 

whether as an employee or otherwise and any entity in which such Defendant has any 

ownership interest, and identify the name, physical address, and any Internet address of 

the business or entity. 

Each Defendant must submit to the Commission notice of the filing of any 

bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant 

within 14 days of its filing. 

Any submission to the Commission required by this Order to be sworn under 

penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: “I declare under penalty of perjury under the laws of the United States of America 

that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s 

full name, title (if applicable), and signature. 

Unless otherwise directed by a Commission representative in writing, all 

submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or 

sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

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

Washington, DC 20580. The subject line must begin: FTC v. DK Automation, LLC, Matter 

No. 2223010. 

20 
A. 

B. 

C. 

D. 

E. 

Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 21 of 25 

XII. RECORDKEEPING 

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

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

Defendant and each Individual Defendant for any business that such Defendant, individually or 

collectively with any other Defendants, is a majority owner or controls directly or indirectly, 

must create and retain the following records: 

accounting records showing the revenues from all goods or services sold; 

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

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

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

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

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

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

Order, including all submissions to the Commission; and 

a copy of each unique advertisement or other marketing material. 

XIII. COMPLIANCE MONITORING 

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

compliance with this Order: 

A. Within 14 days of receipt of a written request from a representative of the 

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

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

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

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

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

21 
 

_______________________________ 

Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 22 of 25 

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

directly with each Defendant. Defendant must permit representatives of the Commission to 

interview any employee or other person affiliated with any Defendant who has agreed to such an 

interview. The person interviewed may have counsel present. 

C. The Commission may use all other lawful means, including posing, through its 

representatives as consumers, suppliers, or other individuals or entities, to Defendants or any 

individual or entity affiliated with Defendants, without the necessity of identification or prior 

notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, 

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

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

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

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

XIV. RETENTION OF JURISDICTION 

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

purposes of construction, modification, and enforcement of this Order. 

SO ORDERED this day of , 202__. 

UNITED STATES DISTRICT JUDGE 

22 
Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 23 of 25 

SO STIPULATED AND AGREED: 

FOR PLAINTIFF: 

FEDERAL TRADE COMMISSION 

 Date: 

November 16, 2022

 

Colleen Robbins 

Sophia Siddiqui 

Thomas Harris 

Attorneys 

Federal Trade Commission 

600 Pennsylvania Ave., N.W. 

Washington, DC 20580 

202-326-2548 (Robbins) 

202-326-2230 (Siddiqui) 

202-326-3395 facsimile 

crobbins@ftc.gov (Robbins) 

ssiddiqui@ftc.gov (Siddiqui) 

FOR DEFENDANTS: 

 Date: 

October 7, 2022

 

G. James Christiansen 

Guardian Law 

833 E. Pioneer Road, Suite 102 

Draper, Utah 84020 

844-409-1122 

Greg@guardianlaw.com 

COUNSEL FOR DK Automation LLC, AMZ Automation LLC, THATLifestyleNinja LLC, 

Digital Ninjaz LLC, Zonbase, Inc., Proficient Supply LLC, Kevin David Hulse, a/k/a Kevin 

David, individually and as an officer of DK Automation LLC, AMZ Automation LLC, 

THATLifestyleNinja LLC, Digital Ninjaz LLC, and Zonbase, Inc., and David Shawn Arnett, 

individually and as an officer of DK Automation LLC, AMZ Automation LLC, and Proficient 

Supply LLC 

DEFENDANTS: DK Automation LLC, AMZ Automation LLC, THATLifestyleNinja 

LLC, Digital Ninjaz LLC, Zonbase, Inc., Proficient Supply LLC, Kevin David Hulse, and 

David Shawn Arnett 

/s/ Kevin David Hulse

 Date: 

October 7, 2022

 

Kevin David Hulse, a/k/a Kevin David, individually and as an officer of DK Automation LLC, 

AMZ Automation LLC, THATLifestyleNinja LLC, Digital Ninjaz LLC, and Zonbase, Inc. 

23 
/s/ David Shawn Arnett

 Date: 

October 7, 2022

 

David Shawn Arnett, individually and as an officer of DK Automation LLC, AMZ Automation 

LLC, and Proficient Supply LLC 

Ecom Honors Reinsurance Co. Ltd. 

/s/ David Shawn Arnett

 Date: 

October 7, 2022

 

David Shawn Arnett, as an officer of Ecom Honors Reinsurance Co. Ltd. 

Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 24 of 25 

24 
 

 

 

 

 

 

 

 

 

 

 

Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 25 of 25 

ATTACHMENT A – Notice to Consumers 

The notice must be in the following form, appearing on Defendants’ letterhead, email, and 

defendants’ websites with the underlined text completed as directed: 

Your Right to Receive Information About Business Opportunities and Earnings Claims, Post 

Honest Reviews Online and File Complaints 

Dear Client: 

The Federal Trade Commission (FTC), the nation’s consumer protection agency, sued us and 

said we broke the law by: 

1. making claims about how much money buyers could earn with our programs — DK 

Automation, AMZ Automation, Zonbase, Digital Ninjaz, and THATLifestyleNinja — 

without the required proof; 

2. failing to give buyers the required disclosure document and earnings claims statement 

that give important details about the opportunity; and 

3. using manipulation, threats, and intimidation to discourage buyers from publishing their 

honest opinions about our programs. 

We reached an agreement with the FTC to settle the lawsuit and must pay a monetary 

judgment of $2.6 million. We also agreed to: 

• stop making earnings claims without evidence, and 

• stop discouraging buyers from sharing their honest opinions about our programs. 

Learn more about the settlement on the FTC’s website. 

About Your Rights 

The Business Opportunity Rule puts safeguards in place to make sure you have the information 

you need to evaluate a business opportunity. Before you sign on the dotted line or send money 

to buy a business opportunity, read the FTC’s guidance about the Business Opportunity Rule. 

The FTC also has advice about the Consumer Review Fairness Act, which protects consumers’ 

ability to share their honest opinions about a business’s products and services. 

If you suspect a business opportunity seller is fraudulent, report it to the FTC at 

ReportFraud.ftc.gov.