Source: https://www.scribd.com/doc/23911116/2004-06-17-Jordan-Maxwell-Default-Judgment-for-Fraud
Timestamp: 2016-02-07 00:25:18
Document Index: 310325208

Matched Legal Cases: ['§ 53', '§ 45', '§ 1679', '§ 45', '§ 45', '§ 1679', '§ 44', '§ 4', '§ 1679', '§ 1679', '§ 1679', '§ 1961', '§ 7701', '§ 49']

2004-06-17 Jordan Maxwell - Default Judgment for Fraud
UploadSign inJoinBooksAudiobooksComicsSheet MusicScribd Selects BooksHand-picked favorites from our editorsScribd Selects AudiobooksHand-picked favorites from our editorsScribd Selects ComicsHand-picked favorites from our editorsScribd Selects Sheet MusicHand-picked favorites from our editorsTop BooksWhat's trending, bestsellers, award-winners & moreTop AudiobooksWhat's trending, bestsellers, award-winners & moreTop ComicsWhat's trending, bestsellers, award-winners & moreTop Sheet MusicWhat's trending, bestsellers, award-winners & moreCategoriesArts & IdeasBiography & MemoirBusiness & LeadershipChildren'sComputers & TechnologyCooking & FoodCrafts & HobbiesFantasyFiction & LiteratureHappiness & Self-HelpHealth & WellnessHistoryHome & GardenHumorLGBTMystery, Thriller & CrimePolitics & EconomyReferenceReligionRomanceScience & NatureScience FictionSociety & CultureSports & AdventureTravelYoung AdultCategoriesArts & IdeasBiography & MemoirBusiness & LeadershipChildren'sComputers & TechnologyCooking & FoodFantasyFiction & LiteratureHappiness & Self-HelpHealth & WellnessHistoryHome & GardenHumorLGBTMystery, Thriller & CrimePolitics & EconomyReferenceReligionRomanceScience & NatureScience FictionSociety & CultureSports & AdventureTravelYoung AdultCategoriesAdaptationsChildren’sCrime & MysteryFictionHumorMangaNonfictionRomanceSciFi, Fantasy & HorrorSuperheroesYoung AdultPublishersArcanaArchie ComicsBOOM! StudiosDynamiteIDW PublishingKingstone ComicsMarvel ComicsSpace Goat ProductionsTop Cow ComicsTop Shelf ProductionsValiant Comics ZenescopeDifficultyBeginnerIntermediateAdvancedMixedInstrumentBrassDrums & PercussionGuitar, Bass, and FrettedPianoStringsVocalWoodwindsGenreClassicalCountryFolkJazz & BluesMovies & MusicalsPop & RockReligious & HolidayStandardsP. 12004-06-17 Jordan Maxwell - Default Judgment for Fraud2004-06-17 Jordan Maxwell - Default Judgment for Fraud|Views: 165|Likes: 6Published by aeuoi789euo6i809More info:Categories:Types, Business/Law, FinancePublished by: aeuoi789euo6i809 on Dec 10, 2009Copyright:Attribution Non-commercialAvailability:Read on Scribd mobile: iPhone, iPad and Android.download as PDF, TXT or read online from ScribdFlag for inappropriate content|Add to collectionSee moreSee lesshttps://www.scribd.com/doc/23911116/2004-06-17-Jordan-Maxwell-Default-Judgment-for-Fraud05/26/2013pdftextoriginal﻿J' 23 ................ -- -~ ~- 2 FILED _ CLERK, U S DISTRICT COURT 1 WILLIAM E. KOVACIC General Counsel KATHERINE ROMANO SCHNACK 3 TODD M. KOSSOW 4 5 i-LJ KENNETH H. ABBE (CA Bar #1 724~) 2 3 2004 Federal Trade Commissio 10877 .Wilshire Bouleva ~NTMf:i~~Rft,[)OFCAUFORNIA Los Artgeles, California EPU~ 310-824-4343 (telephone) 310-824-4380 (facsimile) 6 7 8 9 10 Attorneys for Plaintiff FEDERAL TRADE COMMISSION __ Priority ~~nd _Clsd »: ~nter _~/JS-6 _ JS-2/JS-3 11 12 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA WESTERN DIVISION 13 ) 14 FEDERAL TRADE COMMISSION, ) ) 15 Plainti ff, ) ) 16 v. ) ) 17 JORDAN MAXWELL, also known as ) RUSSELL PINE, individually and ) 18 doing business as BBCOA aka ) BBC OF AMERICA aka BETTER BOOKS AND) 19 CASSETTES OF AMERICA; and ) VIC VARJABEDIAN aka VICTOR ) 20 VARJABEDIAN aka VAROUJ VARJABEDIAN,) individually, ) 21 ) Defendants. ) 22 ) --------------------------------) Civ No. 03 0128 NM (CWx) 24 Plaintiff, the Federal Trade Commission ("Commission"), 25 pursuant to Section 13(b) of the Federal Trade Commission Act 26 ("FTC Act"), 15 U.S.C. § 53(b), filed a Complaint for Injunctive 27 and Other Equitable Relief ("Complaint"), including consumer 28 redress, charging that Defendants Jordan Maxwell, also known as :, ,. 1 Russell Pine, individually and doing business as BBCOA, aka BBC 2 of America, aka Better Books and Cassettes of America, and Vic 3 Varjabedian, aka Victor Varjabedian, aka Varouj Varjabedian, with 5 4 violations of Sections 5(a) and 19 of the FTC Act, 15 U.S.C. 5 §§ 45(a) and S7b, and Sections 404(a) & (b) and Section 405(a) of 6 the Credit Repair Organizations Act, lS U.S.C. §§ 1679b and 7 1679c, in connection with the advertising, promotion, offering 8 for sale, and sale of their international driver's permits, 9 credit repair services, and debt termination programs. 10 Defendant Varjabedian was personally served with the Summons 11 and Complaint for this action at his home on January 13, 2003. 12 Pursuant to this Court's November 4, 2003 Order, Defendant 13 Maxwell was served with process by publication in the Los Angeles 14 Times on November 14, 2003, November 21, 2003, November 28, 2003, IS· and December S,. 2003. Neither Defendant has filed an answer or _. 16 other responsive pleading to the ·Commission's Complaint. 17 Pursuant to Rule 55(a) of the Federal Rules of Civil Procedure, 18 the Clerk of Court entered a default against Defendant 19 Varjabedian on November S, 2003 and entered a default against 20 Defendant Maxwell on January 28, 2004. The Commission now has 21 moved this Court for entry of a default judgment against both 22 Defendants pursuant to Rule 55(b) (2) of the Federal Rules of 23 Civil Procedure. Having considered the memorandum and exhibits 24 filed in support of the Commission'S motion, and the entire 25 record in this matter, and now being fully advised in the 26 premises, the Court hereby grants the Commission's motion for a 27 default judgment. 28 II 2 ~1 UJ 2 5. The activities of Defendants, as alleged in the 1 IT IS THEREFORE ORDERED, ADJUDGED AND DECREED as follows: FINDINGS 3 1. This is an action by the Commission instituted under 4 Sections 5 and 13(b) of the FTC Act, 15 U.S.C. §§ 45 and 53(b). 5 The Commission's Complaint seeks permanent injunctive relief 6 against Defendants in connection with the advertising, promotion, 7 offering for sale, and sale of their international driver's 8 permits, credit repair services, and debt cancellation services, 9 and equitable monetary relief in the form of consumer redress 10 and/or disgorgement. Pursuant to these sections of the FTC Act, 11 the Commission has the authority to seek the relief contained 12 herein. 13 2 . This Court has jurisdiction over the subject matter of 14 this action and the parties. 15 3. Venue is proper as to all parties in the Central . 16 District of California. 17 4. Plaintiff's Complaint states a claim upon which relief 18 may be granted against Defendants under Sections 5(a) I 13(b), and 19 19 of the FTC Act, 15 U.S.C. §§ 45, 53(b) & 57b, and Sections 20 404(a) & (b) and Section 405(a) of the Credit Repair 21 Organizations Act, 15 U.S.C. §§ 1679b & 1679c. 22 23 Complaint, are in or affecting commerce, as defined in Section 4 24 of the FTC Act, 15 U.S.C. § 44. 25 6. Defendants were properly served with process in this 26 matter. Defendant Varjabedian was served with the Summons and 27 Complaint personally, while Defendant Maxwell was served with the 28 Summons by publication. Defendants failed to answer or otherwise 3 • 3 Accordingly, Defendants 1 defend against the Commission's claims. 2 are in default. 7 . The Clerk of Court, pursuant to Fed. R. Civ. P. 55(a), 4 entered a default against Defendant Varjabedian on November S, 5 2003, and entered a default against Defendant Maxwell on January 6 28, 2004. 7 8. To the best of this Court's information and knowledge, 8 Defendants are not infants, have not been declared incompetent, 9 nor are currently in the military or otherwise exempted from 10 default judgment under the Soldiers' and Sailors' Civil Relief 11 Act of 1940. 12 9. The factual allegations in the Commission's Complaint 13 are taken as true against Defendants. Those allegations and the 14 evidence supporting them establish that Defendants violated is Section 5(a) of the FTC Act, 1S U.S.C. § 4S(a), and Sections 16 404(a) & (b) and Section 405(a) of the Credit Repair 17 Organizations Act, is U.S.C. §§ 1679b & 1679c. 18 10. Defendants are likely to continue to engage in the acts 19 and practices alleged in the Complaint unless they are 20 permanently enjoined from such acts and practices. 21 11. The Commission is entitled to equitable monetary relief 22 against Defendants in the amount of $444,554.66. 23 12. This Order is in addition to, and not in lieu of, any 24 other civil or criminal remedies that may be provided by law. 25 13. Entry of this Order is in the public interest. 26 14. Pursuant to Federal Rule of Civil Procedure 6S(d) I the 27 provisions of this Order are binding upon Defendants, their 28 officers, agents, servants, employees, attorneys, corporations, 4 • 1 successors and assigns, and upon those persons or entities in 7 2. "Customer" means any person who is, has been, or may be 2 active concert or participation with them who receive actual 3 notice of this Order by personal service or otherwise. 4 DEFINITIONS 5 For purposes of this Order, the following definitions shall 6 apply: 1. "Assets" means any legal or equitable interest in, 8 right to, or claim to, any real or personal property, including 9 but not limited to chattels, goods, instruments, money, funds, 10 equipment, fixtures, general intangibles, effects, leaseholds, 11 mail or other deliveries, inventory, checks, notes, accounts, 12 credits, receivables (as those terms are defined in the Uniform 13 Commercial Code), and all cash, wherever located. 14 1~:1 required to pay for goods or services offered for sale or sold by 16 any Defendant. 17 3. "Defendants" means Jordan Maxwell, also known as 18 Russell Pine, individually and doing business as BBCOA, aka BBC 19 of America, aka Better Books and Cassettes of America; and Vic 20 Varjabedian, aka Victor Varjabedian, aka Varouj Varjabedian, and 21 each of them, by whatever names each may be known. 22 4. "Document(s)" or "record(s)" is synonymous in meaning 23 and equal in scope to the usage of the term in Federal Rule of 24 Civil Procedure 34(a) and means: 25 A. The original or a true copy of any written, typed, 26 printed, electronically stored, transcribed, taped, recorded, 27 filmed, punched, or graphic matter or other data compilations of 28 any kind, including, but not limited to, letters, e-mail or other 5 o llJ --------- • 6 7 . "Identification document" means a document made or 1 correspondence, messages, memoranda, interoffice communications, 2 notes, reports, summaries, manuals, magnetic tapes or discs, 3 tabulations, books, records, checks, invoices, work papers, 4 journals, ledgers, statements, returns, reports, schedules, or 5 files; and B. Any information stored on any desktop personal 7 computer ("PC") and workstations, laptops, notebooks, and other 8 portable computers, whether assigned to individuals or in pools 9 of computers available for shared usei and home computers used 10 for work-related purposesi backup disks and tapes, archive disks 11 and tapes, and other forms of offline storage, whether stored 12 onsite with the computer used to generate them, stored offsite in 13 another company facility or stored offsite by a third-party, such 14 as in a disaster recovery center; and computers and related 15 offline storage used by Defendants' participating associates, 16, which may include persons who are not employees of the company or 17 who do. not work on company premises. 18 5. "Material" means likely to affect a person's choice of, 19 or conduct regarding, goods or services. 20 6. "International driving permit" means any document 21 called an international driving permit, international driver's 22 permit, international driver's license, or any variation thereof. 23 24 issued by or under the authority of the United States Government, 25 a State, political subdivision of a State, a foreign government, 26 political subdivision of a foreign government, an international 27 governmental or international quasi governmental organization 28 which, when completed with information concerning a particular 6 £~ 6 (1) improving any consumer's 1 individual, is of a type intended or commonly accepted for the 2 purpose of identification of individuals, including, but not 3 limited to, driver's licenses, birth certificates, social 4 security cards, work permitsl diplomas, school transcripts I 5 identification cardsl and passports. 8 . "False identification document" means any document that 7 could reasonably be confused for an identification document. 8 9. "Identification template" means any implement I 9 impression, electronic device or computer hardware or software 10 that is specifically configured or primarily used for making an 11 identification document or false identification document. 12 10. "Credit repair organization" means any person who uses 13 any instrumentality of interstate commerce or the mails to sell, 14 provide, or perform (or represent that such person can or will 15 selll provide, or perform) any servicel in return for the payment 16' of money or other valuable considerationl for the express or 17 implied purpose of: (1) improving any consumer's credit record, 18 credit history, or credit ratingi or (2) providing advice or 19 assistance to any consumer with regard to any activity or service 20 the purpose of which is to improve a consumer's credit record, 21 credit history, or credit rating. See 15 U.S.C. § 1679a(3). 22 11. "Credit repair service" means any servicel in return 23 for the payment of money or other valuable consideration, for the 24 express or implied purpose of: 25 credit record, credit historYI or credit rating; or (2) providing 26 advice or assistance to any consumer with regard to any activity 27 or service the purpose of which is to improve a consumer's credit 28 recordl credit history, or credit rating. 7 ,--. 1·,-' LU :z: Z 0.( U v) 1 I. BAN ON CERTAIN ACTIVITIES 12. "Assisting others" means providing any of the following 2 goods or services to any person or entity: (a) performing 3 customer service functions, including but not limited to 4 receiving or responding to consumer complaints; (b) formulating 5 or providing, or arranging for the formulation or provision of, 6 any telephone sales script or any other written marketing 7 material, including, but not limited to, the text of any Internet 8 website, email or other electronic communication; (c) providing 9 names of, or assisting in the generation of, potential customers; 10 (d) performing marketing services of any kind; (e) acting as an 11 officer or director of a business entity; or (f) supplying an 12 international driving permit, identification document, false 13 identification document, identification template, or related 14 material or information, whether denoted as a real or novelty 15 i cern . .,~ 16 .. 13. "Person" means a natural person, an organization or 17 other legal entity, including a corporation, 'partnership, sole 18 proprietorship, limited liability company, association, 19 cooperative, or any other group or combination acting as an 20 entity. 21 14. "Plaintiff" means the Federal Trade Commission. 22 23 IT IS THEREFORE ORDERED that Defendants, whether acting 24 directly or through any person or entity, are hereby permanently 25 restrained and enjoined from (A) marketing, advertising, 26 promoting, offering for sale, distributing, or selling any 27 international driving permit, or any other identification 28 document, false identification document, identification template, 8 u w 1 or related material or information, whether denoted as a real or 10 1 . Misrepresenting or assisting others in 2 novelty item; and (B) assisting others who Defendant knows or 3 consciously avoids knowing are engaged in the marketing, 4 advertising, promotion, offering for sale, distributing, or 5 selling of any international driving permit, or any other 6 identification document, false identification document, 7 identification template, or related material or information, 8 whether denoted as a real or novelty item. Nothing in this Order 9 shall be read as an exception to this Section. II. PROHIBITED BUSINESS ACTIVITIES 11 IT IS FURTHER ORDERED that, in connection with the 12 advertising, promotion, offer for sale, or sale of any item, 13 product, good, service, investment opportunity, business 14 opportunity, partnership interest, trust interest, or other 15 beneficial interest, Defendants and any entity through which they . 1 16 do business, and their successors, assigns,l.officers, agents, 17 servants, employees, attorneys, and those other persons or 18 entities in active concert or participation with them who receive 19 actual notice of this Order by personal service or otherwise, are 20 hereby permanently restrained and enjoined from: 21 A. Making, or assisting others in making, directly or by 22 implication, any false or misleading oral or written statement or 23 representation in connection with the advertising, marketing, 24 promotion, offering for sale, distribution, or sale of any 25 international driving permit or other identification document, 26 including but not limited to: 27 28 misrepresenting, directly or by implication, that any 9 o w 20 misrepresenting, directly or by implication, that any 21 international driving permit or other identification document has 22 been issued by or under the authority of the United States 23 Government, a State, political subdivision of a State, a foreign 24 government, political subdivision of a foreign government, an 25 international governmental or international quasi governmental 26 organization; 28 misrepresenting, directly or by implication, any information 27 1 international driving permit or other identification document Cl 2 authorizes consumers to drive legally in the United States or any LU ;~~ 4 6. Misrepresenting or assisting others in 3 other country; 2 . Misrepresenting or assisting others in 5 misrepresenting, directly or by implication, that consumers who 6 purchase any international driving permit or other identification 7 document may use it to avoid points for traffic violations; 8 3 . Misrepresenting or assisting others in 9 misrepresenting, directly or by implication, that consumers who 10 purchase any international driving permit or other identification 11 document may use it to avoid sanctions for driving with a 12 suspended or revoked government-issued driver's license; 13 4. Misrepresenting or assisting others in 14 misrepresenting, directly or by implication, that any 15. international driving permit or other identification document can 16 be used in the United States or any ot.he r country as an 17 identification document in the same ways a person can use a 18 government-issued photo identification document; 19 5 . Misrepresenting or assisting others in 10 20 bankruptcies, late payments, foreclosures, or other negative 21 information from consumers' credit reports, even where such 26 to purchase or use Defendants' credit repair or debt cancellation 27 products or services. 28 1 relating to any holder of any international driving permit or D 2 other identification document, including, but not limited to, the ~ .II':;_.. 5 c. Making, or assisting others in making, directly or by 3 identity, name, address, nationality, citizenship, or vital 4 statistic of the holder; and 7. Misrepresenting or assisting others in 6 misrepresenting, directly or by implication, any other fact 7 material to a consumer's decision to purchase any international 8 driving permit or any other identification document, false 9 identification document, identification template, or related 10 material or information, whether denoted as a real or novelty 11 item. 12 B. Making, or assisting others in making, directly or by 13 implication, any false or misleading oral or written statement or 14 representation in connection with the advertising, marketing, 15 promotion, offe~ing for sale, distribution, or sale of any credyt 16 repair or debt cancellation product or service, including but not 17 limited to, the following: 18 1. That consumers can improve substantially 19 consumers' credit reports or profiles by permanently removing 22 information is accurate and not obsolete; 23 2 . That Defendants can legally terminate consumers' 24 credit card or loan debt; and 25 3 . Any other fact material to a consumer's decision 11 0-.[: L} v' 7 III. PROHIBITIONS REGARDING CONSUMER INFORMATION 1 implication, any false or misleading oral or written statement or 2 representation, or taking any action in connection with the 3 advertising, marketing, promotion, offering for sale, 4 distribution, or sale of any credit repair product or service 5 which violates any provision of the Credit Repair Organizations 6 Act, including but not limited to, the following: 1. The charging or receiving of any money or other 8 valuable consideration for the performance of any service which 9 the credit repair organization has agreed to perform for any 10 consumer before such service is fully performed; 11 2. Failing to provide the written statement required 12 by Section 405(a) of the Credit Repair Organizations Act, 15 13 U.S.C. § 1679c(a), in the form and manner required by that Act, 14 to each consumer before any contract or agreement between the 15 consumer and Defendants is executed; and -, 16 3. Representing~that Defendants can lmprove 17 substantially most consumers' credit reports or profiles by 18 permanently removing bankruptcies, liens, judgments, charge-offs, 19 late payments, foreclosures, repossessions, or other negative 20 information from consumers' credit reports, even where such 21 information is accurate and not obsolete. 22 D. Misrepresenting or assisting others in misrepresenting, 23 directly or by implication, any material fact regarding any item, 24 product, good, or service sold or offered for sale. 25 26 IT IS FURTHER ORDERED that Defendants, their officers, 27 agents, servants, employees, attorneys, corporations, successors 28 and assigns, and any other person or entity through which they do 12 CI LU "7 Z « U Vl 2 B. Defendants shall make the payment required by 1 business, and any other person or entity in active concert or participation with them who receives actual notice of this Order 3 by personal service or otherwise, are hereby permanently 4 restrained and enjoined from selling, renting, leasing, 5 transferring, or otherwise disclosing the name, address, 6 telephone number, social security number, credit card number, 7 bank account number, e-mail address, or other identifying 8 information of any person who paid money to any Defendant at any 9 time prior to the entry date of this Order in connection with the 10 sale of the products or services referenced in the Commission's 11 Complaint, or whose identifying information was obtained for the 12 purpose of soliciting them to pay money to any Defendant in 13 connection with the sale of the products or services referenced 14 in the Commission's Complaint; provided, however, that Defendants 15 may -d i ac l.oae such identifying information (i) with the express 16 written consent of th~ person whose information is disclosed, 17 (ii) to a law enforcement agency, or (iii) as required or 18 authorized by any law, regulation, or court order. 19 IV. MONETARY RELIEF 20 IT IS FURTHER ORDERED that: 21 A. Judgment is hereby entered against Defendants jointly 22 and severally in the amount of four hundred forty-four thousand, 23 five hundred fifty-four dollars and sixty-six cents 24 ($444,554.66). This amount shall become immediately due and 25 payable by Defendants upon entry of this Order, and interest 26 computed at the rate prescribed under 28 U.S.C. § 1961, as 27 amended, shall immediately begin to accrue on the unpaid balance; 28 13 Cl IJ.I z 22 U.S.C. § 7701, to furnish to the Commission their Social Security 23 Numbers and/or taxpayer identification numbers, which shall be 24 used for purposes of collecting and reporting on any delinquent 25 amount arising out of this Order; and 27 Section for equitable monetary relief is solely remedial in 28 nature and is not a fine, penalty, punitive assessment, or 26 1 Subsection A of this Section in United States funds by certified D 2 or cashier's check, made payable to the Federal Trade Commission, LU ..,::. z 3 and delivered to the Regional Director, Federal Trade Commission, ~ 5 E. The judgment entered pursuant to Subsection A of this 4 55 East Monroe Street, Suite 1860, Chicago, Illinois 60603; C. The funds paid pursuant to this Section shall be 6 deposited into a redress fund, administered by the Commission or 7 its agent, to be used for equitable relief, including but not 8 limited to, consumer redress and any attendant expenses for the 9 administration of any redress fund. In the event that direct 10 redress to consumers is wholly or partially impracticable or 11 funds remain after redress is completed, the Commission may apply 12 any remaining funds for such other equitable relief (including 13 consumer information remedies) as it determines to be reasonably 14 related to the Defendants' practices alleged in the Complaint. 15) Any funds not used for such equitable relief shall be deposited 16 to the Treasury as disgorgement. Defendants shall have no right .G 17 to challenge the Commission's choice of remedies or the manner of 18 distribution under this Section. The Commission, in its sale 19 discretion, may use a designated agent to administer consumer 20 redress; 21 D. Defendants are hereby required, in accordance with 31 14 9 BBC of America, aka Better Books and Cassettes of America -P\xrv(e. S :l 10 ("BBCOA" ), l:FKlltteHn9 all furniture, equipment, and O'tfier cOl"l:teI1t~,..J ~ ~O~~ 11 ~BBCOA' s premises 19512 Ventura Boulevard, Suite 102, ~\ ~(\ 12 Tarzana, California 91356, 19510 Ventura Boulevard, Suite 206, (~~r~ ~\ ~' , ~~, or 13 Tarzana, California 91356, and 19562 Ventura Boulevard, SUIte . ~ ,--------------- C.~\s"\\~ 0 14 213, Tarzana, California 91335,'1( The proceeds of said liquidation bvol<-s Qr\a , . ~~""'\ i~ ~. 15 shall be included in the receivership estate along WIth all other . ~" Rec.t.\'it, rshi f 16 assets of BBCOA. Upon liquidation of the assets of BBCOA, the ~te.'f'64.b. 2 B. Upon the filing of the Receiver's report, the Court's 1 forfeiture. v. RECEIVERSHIP 3 IT IS FURTHER ORDERED that the appointment of Robb Evans as 4 Receiver pursuant to the Preliminary Injunction Order entered by 5 the Court on January 23, 2003, is hereby continued as modified by 6 this Section. 7 A. The Receiver shall complete the liquidation authorized 8 by the Court's May 27, 2003 order of all tHS a6se~ of BBCOA, aka 17 Receiver shall submit a report and application for fees -and 18 expenses, and upon approval of the same shall pay: 19 1. To the Receiver the amounts allowed by the Court 20 pursuant to the Receiver's application for fees and expenses; and 21 2. Any remaining funds to the Commission for deposit 22 into the consumer redress fund. Any funds transferred to the 23 Commission pursuant to this Section shall be applied against the 24 amounts owed to the Commission under Section IV. 25 26 approval of the same, and the Receiver's fulfillment of his 27 payment obligations under this Section, the Receivership over 28 BBCOA pursuant to the Preliminary Injunction Order entered by the 15 • 1 Court on January 23, 2003, shall be terminated. Defendants shall 5 B. In addition, the Commission is authorized to monitor 2 indemnify and hold harmless the Receiver for any claim made 3 against the Receiver arising out of the Receiver's activities 4 pursuant to this Order or previous orders of the Court. VI. DISSOLUTION OF ASSET FREEZE 6 IT IS FURTHER ORDERED that: 7 A. Upon payment to the Commission of the amount required 8 by Section IV of this Order, the freeze against the assets of 9 Defendants pursuant to Section II of the Preliminary Injunction 10 Order entered by the Court on January 23, 2003, shall be lifted 11 permanently: and 12 13 14 15 B. The freeze against the assets of BBCOA pursuant to Section II of the Preliminary Injunction Order entered by the Court on January 23, 2003, shall be lifted permanently upon V termination of the Receivership pursuant to Section~~'f this 16 Or de r., 17 VII. COMPLIANCE MONITORING 18 IT IS FURTHER ORDERED that, for the purpose of monitoring 19 and investigating compliance with any provision of this Order: 20 A. Within ten (10) days of receipt of written notice from 21 a representative of the Commission, Defendants shall submit 22 additional written reports, sworn to under penalty of perjury; 23 produce documents for inspection and copying; appear for 24 deposition; and/or provide entry during normal business hours to 25 any business location in such Defendant's possession or direct or 26 indirect control to inspect the business operation; 28 compliance with this Order by all other lawful means, including 27 16 o ill " 16 a. Any changes in Defendant's residence, mailing 1 but not limited to the following: c.:, 2 1. obtaining discovery from any person, without Ll1 z 3 further leave of court, using the procedures prescribed by Fed. Z <1': L,\ 4 R. Civ. P. 30, 31, 33, 34, 36, and 45; (i) 5 2 . Posing as consumers and suppliers to Defendants, 6 Defendants' employees, or any other entity managed or controlled 7 in whole or in part by any'Defendant, without the necessity of 8 identification or prior notice; 9 Provided that nothing in this Order shall limit the 10 Commission's lawful use of compulsory process, pursuant to 11 Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49 & 57b-l, to 12 obtain any documentary material, tangible things, testimony, or 13 information relevant to unfair or deceptive acts or practices in 14 or affecting commerce (within the meaning of 15 U.S.C. 15 § -45(a) (1)). _r C. Defendants shall permit representatives, of the -17 Commission to interview any employer, consultant, independent 20 this Order. The person interviewed may have counsel present. 22 IT IS FURTHER ORDERED that, in order that compliance with 23 the provisions of this Order may be monitored: 25 of this Order, 27 following: 21 24 26 28 18 contractor, representative, agent, or employee who has agreed to 19 such an interview, relating in any way to any conduct subject to VIII. COMPLIANCE REPORTING BY DEFENDANTS A. For a period of five (5) years from the date of entry 1. Defendants shall notify the Commission of the 17 10 1 addresses, and telephone numbers, within ten (10) days of the 2 B. One hundred eighty (180) days after the date of entry date of such change; 3 b. Any changes in Defendant's employment status 4 (including self-employment) within ten (10) days of the date of 5 such change. Such notice shall include the name and address of . 6 each business that Defendant is affiliated with, employed by, or 7 performs services fori a statement of the nature of the business; 8 and a statement of Defendant's duties and responsibilities in 9 connection with the business; and c. Any changes in Defendant's name or use of any 11 aliases or fictitious names; and 12 2 . Defendants shall notify the Commission of any 13 changes in corporate structure that may affect compliance 14 obligations arising under this Order, including but not limited 15 to a dissolution, assignment, salel merger, or other action that 16 would result in the emergence of a successor corporation; the 17 creation or dissolution of a subsidiary~ parent, or affiliate 18 that engages in any acts or practices subject to this Order; the 19 filing of a bankruptcy petition; or a change in the corporate 20 name or address, at least thirty (30) days prior to such change, 21 provided that, with respect to any proposed change in the 22 corporation about which the Defendant learns less than thirty 23 (30) days prior to the date such action is to take place, 24 Defendant shall notify the Commission as soon as is practicable 25 after obtaining such knowledge. 27 of this Order, Defendants shall provide a written report to the 28 Commission, sworn to under penalty of perjury, setting forth in 26 18 o u: __,. ~. (":( U (/) 20 21 22 23 24 25 26 27 28 1 detail the manner and form in which they have complied and are 6 A. Accounting records that reflect the cost of goods or 2 complying with this Order. CI This report shall include, but not be U.l 2: 3 limited to: 4 1. Any changes required to be reported pursuant to 5 Subsection A above; and 2. A copy of each acknowledgment of receipt of this 7 Order obtained by Defendant pursuant to Section XI of this Order; 8 C. For the purposes of this Order, Defendants shall, 9 unless otherwise directed by the Commission's authorized 10 representatives, mail all written notifications to the Commission 11 to: 12 Regional Director Federal Trade Commission 13 55 East Monroe Street, Suite 1860 Chicago, Illinois 60603 14 Re: FTC v. Jordan Maxwell, et al., Civ. No. 03 0128 NM (CWx) 15 D. For purposes of the compliance reporting required-by 16 this Section, the Commission is authorized to communicate 17 directly with Defendants. 18 IX. RECORD KEEPING PROVISIONS 19 IT IS FURTHER ORDERED that, for a period of eight (8) years from the date of entry of this Order, in connection with any business where a Defendant is the majority owner of the business or directly or indirectly manages or controls the business, Defendant and his agents, employees, officers, corporations, successors, and assigns, and those persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, are hereby restrained and enjoined from failing to create and retain the following records: 19 r .. 2 X. DISTRIBUTION OF ORDER BY DEFENDANTS 1 services sold, revenues generated, and the disbursement of such revenues; 3 B. Personnel records accurately reflecting: the name, 4 address, and telephone number of each person employed in any 5 capacity by such business, including as an independent 6 contractor; that person's job title or position; the date upon 7 which the person commenced work; and the date and reason for the 8 person's termination, if applicable; 9 C. Customer files containing the names, addresses, phone 10 numbers, dollar amounts paid, quantity of items or services 11 purchased, and description of items or services purchased, to the 12 extent such information is obtained in the ordinary course of 13 business; 14 16 17 15 D. Complaints and refund requests (whether received directly, indirectly or through any third party) and any ,:::- 1 responses to those complaints or ,requests; and E. Copies of all sales scripts, training materials, 18 advertisements, or other marketing materials. 19 20 IT IS FURTHER ORDERED that, for a period of five (5) years 21 from the date of entry of this Order, Defendants shall deliver a 22 copy of this Order to the principals, officers, directors, 23 managers, and employees under Defendant's control for any 24 business that (1) employs or contracts for personal services from 25 Defendant and (2) has responsibilities with respect to the 26 subject matter of this Order. Defendants shall secure from each 27 such person a signed and dated statement acknowledging receipt of 28 the Order within thirty (30) days after the date of service of 20 CI U.I Z ..... L ~ . . " 2 1 the Order or the commencement of the employment relationship. XI. ACKNOWLEDGMENT OF RECEIPT OF ORDER BY DEFENDANTS 3 IT IS FURTHER ORDERED that Defendants, within five (5) 4 business days of receipt of this Order as entered by the Court, 5 must submit to the Commission a truthful sworn statement, in the 6 form shown at Appendix A, acknowledging receipt of this Order. 7 XII. FEES AND COSTS 8 IT IS FURTHER ORDERED that each party to this Order shall 9 bear its own costs and attorney's fees in connection with this 10 action. 11 XIII. RETENTION OF JURISDICTION 12 IT IS FURTHER ORDERED that this Court shall retain 13 jurisdiction over this matter for purposes of construction, 14 modification, and enforcement of this Order. 15 s: <. 16 SO ORDERED, this 2/1b day of -,4-4r..=;o~~'e:___---- 17 18 ~~-- .. UNITED STATES DISTRICT JUDGE Dated: 19 20 21 Presented By: 22 l~~~!~d.._ 23 KATHERINE ROMANO SCHNACK TODD M. KOSSOW 24 Federal Trade Commission 55 East Monroe Street, Suite 1860 25 Chicago, Illinois 60603 (312 ) 960-5634 [Ph. ] 26 (312 ) 960-5600 [Fax] 27 Attorneys for Plaintiff FEDERAL TRADE COMMISSION 28 21 o w (/", 1 On _________________ , I received a copy of the Default APPENDIX A 2 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA 3 Case No. 03 0128 NM (Cwx) 4 5 ) FEDERAL TRADE COMMISSION, ) 6 ) Plaintiff, ) 7 ) v. ) 8 } JORDAN MAXWELL, also known as } 9 RUSSELL PINE, individually and ) doing business as BBCOA aka ) 10 BBe OF AMERICA aka BETTER BOOKS AND) CASSETTES OF AMERICAi and ) 11 VIC VARJABEDIAN aka VICTOR ) VARJABEDIAN aka VAROUJ VARJABEDIAN,) 12 individually, ) ) 13 Defendants.) ) 14 ) AFFIDAVIT ATTESTING TO RECEIPT OF ORDER 15 16 I, ______________________ , being duly sworn, hereby state and 17 affirm as fo l Lows » My name is I am a defendant in the 18 1. 19 above-captioned civil action. I am a citizen of 20 and am over the age of eighteen. I have , 21 personal knowledge of the facts set forth in this Affidavit. My current business address is 22 2. My current business telephone number is 23 My 24 current residential address is 25 My current residential telephone number is 26 3. 27 Judgment and Order for Permanent Injunction ("Order"), which 28 was signed by the Honorable Nora M. Manella and entered by 22 Cl 1..LJ .;::.. ..;( i.__1 VI ,~ 1 the Court on A true and correct copy 2 of the Order that I received is appended to this Affidavit. 3 4 5 I declare under penalty of perjury under the laws of the 6 United States that the foregoing is true and correct. Executed 7 on , at 8 [City, State] 9 10 [Full Name of Defendant) 11 _____________________ , City of 12 State of 13 Subscribed and sworn to before me this day of 14 15 16 Notary_Public My Commission Expires: 17 18 19 20 21 22 23 24 25 26 27 28 23 o w 1 2 3 Katherine Romano Schnack Attorney for Plaintiff Federal Trade Commission ! CERTIFICATE OF SERVICE I, Katherine Romano Schnack, hereby certify as follows: ~_?:r I am over the age of eighteen and am employed by the Federal q \_ 4 Trade Commission. My business address 1S 55 East Monroe Street, 5 Suite 1860, Chicago, Illinois 60603. On this day, I caused to be 6 served true copies of the Federal Trade Commission's: (1) Motion 7 for Default Judgment; (2) Memorandum of Points and Authorities in 8 Support of Plaintiff's Motion for Default Judgment and Exhibits 9 Thereto; and (3) [Proposed] Default Judgment and Order for 10 Permanent Injunction on the following via Federal Express: 11 Jordan Maxwell 12 19525 Ventura Blvd., Suite C Tarzana, California 91356 13 DEFENDANT Vic Varjabedian 6343 Geyser Ave Tarzana, California 91335 DEFENDANT 14 Brick Kane Robb Evans & Associates 15 11450 Sheldon Street Sun Valley, CA 91352 16 RECEIVER Byron Z. Moldo Rein Evans & Sestanovich 1925 Century Park East, 16th Fl. Los Angeles, CA 90025 ATTORNEY FOR RECEIVER 17 18 19 20 21 22 23 24 25 26 27 28 I declare under penalty of perjury that the foregoing is true and correct. Dated: M.~ 2.1. 2@O\.( • C Ll More From This UserLight-Bearers of Darkness - By Christina Stoddard Aka Inquire Within - Scanned Page Images - OCR Faultyaeuoi789euo6i809Light-Bearers of Darkness - By Christina Stoddard Aka Inquire Within - Scanned Page Images - OCR FaultyMind Control and Abductions - Martin Cannonaeuoi789euo6i809Mind Control and Abductions - Martin Cannon2004-06-17 Jordan Maxwell - Fraud Memorandum - US District Courtaeuoi789euo6i8092004-06-17 Jordan Maxwell - Fraud Memorandum - US District Court2009-11-02 "What's Going on With Jordan Maxwell?" by Louis Turiaeuoi789euo6i8092009-11-02 "What's Going on With Jordan Maxwell?" by Louis Turi