SETTLEMENT AND RELEASE AGREEMENT 

This Settlement and Release Agreement ("Agreement") is made by, between, 

and among the following undersigned parties: 

Federal Deposit Insurance Corporation as Receiver for Washington Mutual 

Bank ("FDIC-R'') and American Financial Network, Inc. ("AFN") (individually, 

FDIC-R and AFN may be referred to herein as "Party" and collectively as the 

"Parties"). This Settlement Agreement shall be effective as of the date last executed 

by any Party ("Effective Date"). 

RECITALS 

WHEREAS: 

Prior to September 25, 2008, Washington Mutual Bank ("WaMu") was a 

depository institution organized and existing under the laws of the United States; 

On September 25, 2008, the Office of Thrift Supervision closed the Bank and 

pursuant to 12 U.S.C. § 1821(c), Federal Deposit Insurance Corporation was 

appointed Receiver. In accordance with 12 U.S.C. § 1821(d), FDIC-R succeeded to 

all rights, titles, powers and privileges of W aMu, including those with respect to its 

assets; 

Among the assets to which FDIC-R succeeded were all of WaMu's claims, 

demands, and causes of action against mortgage brokers; 

On February 22, 2022, FDIC-R filed a complaint for money damages against 

AFN. Those claims for damages are now pending in the United States District 

Court for the Central District of California in FDIC-R v. AFN, No. 8:22-cv-281 

("Action"). AFN has denied liability in the Action; and 

The undersigned Parties deem it in their best interests to enter into this 

Agreement to avoid the uncertainty and expense of further litigation; 

NOW, THEREFORE, in consideration of the promises, undertakings, 

payments, and releases stated herein, the sufficiency of which consideration is 
hereby acknowledged, the undersigned Parties agree, each with the other, as 

follows: 

SECTION I: Payment to FDIC-R 

A. As an essential covenant and condition to this Agreement, AFN 

shall pay FDIC-R the sum of Six Hundred Fifty Thousand Dollars ($650,000.00) 

("the Settlement Payment") in the following installments: 

1. One Hundred Fifty Thousand Dollars ($150,000.00) to be paid on or 

before August 1, 2023 ("Initial Payment"); and 

2. Five Hundred Thousand Dollars ($500,000.00) payable in 20 

monthly installments of Twenty-Five Thousand Dollars 

($25,000.00) per month, due on the first of each month, commencing 

on September 1, 2023 ("Installment"). 

The Settlement Payment shall constitute a debt due and owing to FDIC-R, an 

instrumentality, agency and/or other entity of the United States, on the Effective 

Date. The debt shall be discharged by payment in full to FDIC-R. 

B. AFN shall deliver the Initial Payment and each Installment to 

FDIC-R by electronic funds transfer pursuant to written instructions including a 

tax identification number to be provided by FDIC-R, contemporaneous with signing 

the Agreement. 

C. If FDIC-R does not receive the Initial Payment or any Installment 

in full on or before its due date, then AFN shall be in default of its payment 

obligations ("Default"). Upon Default, FDIC-R may declare the entire unpaid 

portion of the Settlement Payment immediately due and payable, and interest shall 

accrue thereon at the rate of five percent (5%) per annum or the rate calculated in 

accordance with 26 U.S.C. § 6621(a)(2), whichever rate is higher ("Default Interest 

Rate"), on the unpaid total until paid in full, and FDIC-R, in its sole discretion, shall 

have the right to: 

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1. Waive the Default and extend the period of time for the payment 

of the Initial Payment or any Installment in writing, including 

interest at the Default Interest Rate accruing from the date 

determined by subsection A above; 

2. Enforce this Agreement, in which case AFN agrees to exclusive 

jurisdiction and venue in United States District Court in the 

Central District of California; 

3. Enforce the Stipulation for Entry of Judgment pursuant to 

Section I.D., below; and/or 

4. Seek any other relief available to it in law or equity. 

Any decision by FDIC-R to extend the time, and any extension of time, under 

Section I.C.1 for delivery of the Initial Payment or any Installment or any decision 

by FDIC-R to accept a portion of the Settlement Payment, and any acceptance of a 

portion of the Settlement Payment, shall not prejudice FDIC-R's rights to take any 

of the actions set forth in Section I.C.1 through I.C.4 at any time prior to receipt of 

Settlement Payment (including all accrued interest) in full; provided, however, that 

in the event FDIC-R terminates this Agreement by declaring it null and void, FDICR will return to AFN any and all amounts paid to FDIC-R under this Settlement 

Agreement. 

D. Simultaneously with the full execution of this Agreement by all 

Parties, the Parties agree to execute the Stipulation for Entry of Judgment for the 

full amount of the Settlement Payment. If AFN defaults on the Initial Payment or 

any Installment, FDIC-R may seek to enforce the Stipulation for Entry of Judgment 

in the United States District Court for the Central District of California on an ex 

parte basis, subject to the Federal Rules of Civil Procedure and the Local Rules of 

the United States District Court for the Central District of California; provided, 

however, that prior to seeking to enforce the Stipulation for Entry of Judgment, 

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FDIC-R shall provide AFN with notice of a default of a payment due under the 

Settlement Payment and allow AFN a ten (10) day opportunity to cure the default. 

Notice of default is required solely to enforce the Stipulation for Entry of Judgment 

and shall not otherwise impact any of FDIC-R's rights and/or remedies under this 

Agreement in any way. If any portions of the Settlement Payment are received prior 

to default, FDIC-R shall file a Notice of Partial Satisfaction of Judgment 

concurrently with the Stipulation for Entry of Judgment, to set forth the amount of 

the Settlement Payment already paid. FDIC-R shall be entitled to recover 

reasonable attorneys' fees and costs incurred in connection with enforcing the 

Stipulation for Entry of Judgment. 

SECTION H: Stipulation and Dismissal 

Within ten (10) business days after the latter of 1) full execution of this 

Agreement by all of the Parties and 2) receipt of the initial Installment, FDIC-R 

shall file a stipulation of dismissal and joint motion for order of dismissal retaining 

jurisdiction pursuant to Federal Rule of Civil Procedure 41, executed by the 

attorneys for all Parties hereto, in the form attached as Exhibit A. 

SECTION HI: Releases 

A. FDIC-R's Releases. 

Upon receipt of the Settlement Payment in full and except as provided in 

Section III.C., FDIC-R, for itself and its successors and assigns, hereby releases and 

discharges AFN and its respective parents, subsidiaries, and affiliates, and their 

respective officers, agents, representatives, successors, and assigns from any and all 

claims, demands, obligations, damages, actions, and causes of action, direct or 

indirect, in law or in equity, belonging to FDIC-R, that arise from or relate to AFN's 

mortgage broker activities for WaMu, including without limitation the claims 

alleged in the Action. 

B. AFN's Reciprocal Release. 

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Effective simultaneously with the release granted in Section III.A. above, 

AFN and its respective parents, subsidiaries, and affiliates, and their respective 

successors and assigns hereby releases and discharges FDIC-R, and its employees, 

officers, directors, representatives, attorneys, successors and assigns, from any and 

all claims, demands, obligations, damages, actions, and causes of action, direct or 

indirect, in law or in equity, that arise from or relate to AFN's mortgage broker 

activities for WaMu, including without limitation the claims alleged in the Action. 

C. Exceptions from Releases by FDIC-R. 

1. Notwithstanding any other provision of this Agreement, FDIC, 

in any capacity, does not release, and expressly preserves fully and 

to the same extent as if this Agreement had not been executed, any 

claims or causes of action: 

a. Against AFN or any other person or entity for liability, if 

any, incurred as the maker, endorser or guarantor of any 

promissory note or indebtedness payable or owed by them 

to FDIC-R, WaMu, other financial institutions, or any 

other person or entity, including without limitation any 

such claims acquired by FDIC-Ras successor in interest 

to WaMu or any person or entity other than WaMu; 

b. by FDIC in any capacity other than as Receiver for 

WaMu; and 

c. Against any person or entity not expressly released by 

FDIC-R in this Agreement. 

2. Notwithstanding any other provision of this Agreement, nothing 

in this Agreement shall be construed or interpreted as limiting, 

waiving, releasing, or compromising the jurisdiction and authority 

of Federal Deposit Insurance Corporation in the exercise of its 

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supervisory or regulatory authority or to diminish its ability to 

institute administrative enforcement or other proceedings seeking 

removal, prohibition, or any other relief it is authorized to seek 

pursuant to its supervisory or regulatory authority against any 

person or entity. 

3. Notwithstanding any other provision of this Agreement, this 

Agreement shall not be construed or interpreted as waiving, or 

intending to waive, any claims that could be brought by the United 

States or any department, agency or instrumentality thereof (other 

than FDIC-R), including, but not limited to, through the United 

States Department of Justice or any United States Attorney's 

Office. 

SECTION V: Representations and Acknowledgements 

A. Authorized Signatories. All of the undersigned persons represent and 

warrant that they are Parties hereto or are authorized to sign this Agreement on 

behalf of the respective Party, and that they have the full power and authority to 

bind such Party to each and every provision of this Agreement. This Agreement 

shall be binding upon and inure to the benefit of the undersigned Parties and their 

respective heirs, executors, trustees, administrators, representatives, successors 

and assigns. 

B. Advice of Counsel. Each Party hereby acknowledges that it has 

consulted with and obtained the advice of counsel prior to executing this 

Agreement, and that this Agreement has been explained to that Party by its 

counsel. 

SECTION VI: Reasonable Cooperation 

The Parties agree to cooperate in good faith to effectuate all the terms and 

conditions of this Agreement, including doing, or causing their agents and attorneys 

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to do, whatever is reasonably necessary to effectuate the signing, delivery, 

execution, filing, recording, and entry, of any documents necessary to conclude the 

Action and to otherwise perform the terms of this Agreement. 

SECTION VU: Other Matters 

A. No Admission of Liability. The Parties each acknowledge and agree 

that the matters set forth in this Agreement constitute the settlement and 

compromise of disputed claims and defenses, that this Agreement is not an 

admission or evidence of liability or infirmity by any of them regarding any claim or 

defense, and that the Agreement shall not be offered or received in evidence by or 

against any Party except to enforce its terms. 

B. Counterparts and Digital Signatures. This Agreement may be executed 

digitally by DocuSign or similar services which use public key cryptography or by 

hand, in any number of counterparts, and delivered electronically or physically, 

each original or electronic copy thereof will be deemed an original, and all of which 

when taken together constitute one and the same Agreement. 

C. Choice of Law/Jurisdiction. This Agreement shall be interpreted, 

construed and enforced according to applicable federal law, or in its absence, the 

laws of the State of California. For purposes of construing this Agreement, this 

Agreement shall be deemed to have been drafted by all Parties to this Agreement 

and shall not, therefore, be construed against any Party for that reason in any 

subsequent dispute. All Parties hereto submit to the personal jurisdiction of the 

United States District Court for the Central District of California for purposes of 

implementing and enforcing the settlement embodied in this Agreement. 

D. Notices. Any notices required hereunder shall be sent by nationally 

recognized overnight delivery service (e.g. FedEx or UPS), and by email, to the 

following: 

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If to FDIC-R: Stuart Tonkinson 

Federal Deposit Insurance Corp. 

3501 Fairfax Drive 

Arlington, Virginia 22226 

(214) 673-7549 

jtonkinson@fdic.gov 

Ifto AFN: Andy Kalyviaris 

American Financial Network, Inc. 

10 Pointe Drive, Suite 330 

Brea, California 92821 

(714) 831-4443 

andy@afncorp.com 

E. Entire Agreement and Amendments. This Agreement, including 

exhibits, constitutes the entire agreement and understanding between and among 

the Parties concerning the matters set forth herein and supersedes any prior 

agreements or understandings. This Agreement may not be amended or modified, 

nor may any of its provisions be waived, except in writing signed by the Parties 

bound thereby, or by their respective authorized attorney(s), or other 

representative(s). 

F. Titles and Captions. All section titles and captions contained in this 

Agreement are for convenience only and shall not affect the interpretation of this 

Agreement. 

G. No Confidentiality. The Parties acknowledge that this Agreement 

shall not be confidential and will be disclosed pursuant to Federal Deposit 

Insurance Corporation's applicable policies, procedures, and other legal 

requirements. 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to 

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be executed by each of them or their duly authorized representatives on the dat(,s 

hereinafter subscribed, 

FEDERAL DEPOSIT INSURANCE 

CORPORATION AS RECEIVER FOR 

Wi\SHINGTON l\:1UTUAL BANK b6 

PRINT NAJ\!IE: J.S, Tonkinson 

Datt< 6/8/2023 .A-11ERICAN_ FI}~ANCIAL_ NETWORK, INC. 

BY: ! 

TITj 

PR.I] b6 

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EXHIBIT A 

MORTGAGE RECOVERY LAW GROUP, LLP 

PAUL A. LEVIN (State Bar No. 229077) 

LAUREN M. GIBBS (State Bar No. 251569) 

550 North Brand Boulevard, Suite 1100 

Glendale, California 91203 

Telephone: (818) 630-7900 Facsimile: (818) 630-7920 

e-mail: plevin@themrlg.com, lgibbs@themrlg.com 

Attorneys for Plaintiff Federal Deposit 

Insurance Corporation as Receiver 

for Washington Mutual Bank 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

STUART TONKINSON 

3501 Fairfax Drive 

Arlington, VA 22226 

Telephone: (7214) 673-7549 

e-mail: jtonkinson@fdic.gov 

Co-Counsel for Plaintiff 

UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

FEDERAL DEPOSIT INSURANCE Case No. 8:22-cv-281-JVS-KES 

CORPORATION AS RECEIVER FOR 

WASHINGTON MUTUAL BANK, STIPULATION AND JOINT MOTION TO 

DISMISS WITHOUT PREJUDICE 

Plaintiff, PURSUANT TO FED.R. CIV.P. 41 WITH 

RETAINED JURISDICTION 

vs. 

AMERICAN FINANCIAL 

NETWORK, INC., a California 

corporation 

Defendant. 

JOINT MOTION TO DISMISS 
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Pursuant to Federal Rule of Civil Procedure 41(a), Plaintiff Federal 

Deposit Insurance Corporation as Receiver for Washington Mutual Bank 

and Defendant American Financial Network, Inc. agree to and jointly 

move for entry of an order (1) dismissing this case without prejudice 

pursuant to the Settlement Agreement attached to this stipulation, (2) 

incorporating this stipulation and the attached Settlement Agreement 

into the dismissal order, and (3) retaining the Court's jurisdiction to 

enforce the terms of the Settlement Agreement. This dismissal without 

prejudice by the parties is conditioned upon the court agreeing to retain 

jurisdiction over the Settlement Agreement. 

For the aforementioned reasons, this case is DISMISSED in 

accordance with the parties' stipulated settlement agreement, with the 

Court retaining jurisdiction over this case for the purpose of enforcing 

the terms of the attached Settlement Agreement, which is incorporated 

into this Order and each party to bear its/their own costs and attorneys' 

fees. If reopening of the action to enforce settlement becomes necessary, 

it shall be reopened as though it had never been closed. 

It is SO ORDERED. 

U.S. District Judge 

WE SO MOVE WE SO MOVE 

Counsel for Plaintiff Counsel for Defendant 

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JOINT MOTION TO DISMISS 
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l EXHIBIT B 

MORTGAGE RECOVERY LAW GROUP, LLP 

PAUL A. LEVIN (State Bar No. 229077) 

LAUREN M. GIBBS (State Bar No. 251569) 

550 North Brand Boulevard, Suite 1100 

Glendale, California 91203 

Telephone: (818) 630-7900 Facsimile: (818) 630-7920 

e-mail: plevin@themrlg.com, lgibbs@themrlg.com 

Attorneys for Plaintiff Federal Deposit 

Insurance Corporation as Receiver 

for Washington Mutual Bank 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

STUART TONKINSON 

3501 Fairfax Drive 

Arlington, VA 22226 

Telephone: (7214) 673-7549 

e-mail: jtonkinson@fdic.gov 

Co-Counsel for Plaintiff 

UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

FEDERAL DEPOSIT INSURANCE Case No. 8:22-cv-281-JVS-KES 

CORPORATION AS RECEIVER FOR 

WASHINGTON MUTUAL BANK, STIPULATION FOR ENTRY OF 

JUDGMENT 

Plaintiff, 

vs. 

AMERICAN FINANCIAL 

NETWORK, INC., a California 

corporation 

Defendant. 

STIPULATION FOR ENTRY OF JUDGMENT 
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l 1. PARTIES 

This Stipulation for Entry of Judgment ("Stipulation") is entered 

into by and between plaintiff Federal Deposit Insurance Corporation as 

Receiver for Washington Mutual Bank ("FDIC-R") and defendant 

American Financial Network, Inc. ("AFN"). The persons and entities 

entering into this Stipulation are at times referred to individually as a 

"Party" and collectively as the "Parties." 

2. RECITALS: 

The Parties enter into this Stipulation with reference to and in 

acknowledgment of the following facts: 

2.1 On February 22, 2022, FDIC-R filed a complaint in the 

United States District Court, Central District of California, 

Case No. 8:22-cv-281 (the "Action"), alleging certain claims 

against AFN. 

2.2 Subsequent to the filing of the Action, the parties 

entered into a Settlement Agreement contemplating entry of 

judgment on the terms stated herein, upon the satisfaction of 

certain conditions. 

2.3 The conditions for entry of judgment set forth in the 

Settlement Agreement have been satisfied. 

3. STIPULATED JUDGMENT. 

3.1 AFN stipulates to the entry of judgment in the sum of 

Six Hundred Fifty Thousand Dollars ($650,000.00) in favor of 

FDIC-R. 

3.2 Any amounts paid by AFN to FDIC-R under the 

Settlement Agreement shall be set forth in a Notice of Partial 

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STIPULATION FOR ENTRY OF JUDGMENT 
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l Satisfaction of Judgment, to be filed concurrently herewith by 

FDIC-R. 

3.3 Interest shall accrue at the legal rate of 10 percent per 

annum from the date of entry of judgment. 

3.4 FDIC-R shall be entitled to recover its reasonable 

attorneys' fees incurred in connection with the Action. 

5. ENFORCEMENT 

The United States District Court for the Central District of 

California, shall retain jurisdiction after entry of the Stipulated 

Judgment to hear and determine all matters related to this action and to 

enforce this Stipulation. 

7. UNDERSTANDING OF TERMS 

The parties represent that they have read this Stipulation, that its 

terms have been fully explained to them by their attorneys, and that 

they understand and agree with its terms. 

8. AUTHORITY TO ENTER INTO STIPULATION. 

Each signatory to this Stipulation represents that he or she is fully 

authorized by the party he or she represents to enter into this 

Stipulation, to execute it on behalf of the party represented, and to 

legally bind that party. 

9. EXECUTION IN COUNTERPARTS. 

This Stipulation may be executed in counterparts, each of which 

shall be deemed an original. Said counterparts shall constitute but one 

and the same document, and when a copy is signed by an authorized 

representative of each party, the Stipulation shall be effective as if a 

single document were signed by all parties. 

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STIPULATION FOR ENTRY OF JUDGMENT 
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Counsel for Plaintiff Counsel for Defendant 

Date: Date: 

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STIPULATION FOR ENTRY OF JUDGMENT