Bureau of Consumer Financial Protection v. Certified Forensic Loan Auditors, LLC et al, No. 2:2019cv07722 - Document 93 (C.D. Cal. 2020)

Court Description: STIPULATED FINAL JUDGMENT AND ORDER AS TO CERTIFIED FORENSIC LOAN AUDITORS, LLC(CA), CERTIFIED FORENSIC LOAN AUDITORS (TX) AND ANDREW P. LEHMAN 88 by Judge Otis D. Wright, II: Defendants CFLA and Lehman, whether acting directly or indirectly, or ass isting others are permanently restrained RE any Mortgage Assistance Relief Services or Financial Advisory Services. A judgment for monetary relief is entered in favor of the Bureau and against Defendants CFLA and Lehman, jointly and severally, in the amount of $3 million for thepurpose of providing redress to Affected Consumers; however, full payment of this judgment will be suspended upon satisfaction of the obligations (SEE DOCUMENT FOR SPECIFICS ). Defendants CFLA and and Lehman, joi ntly and severally, must pay a civil money penalty of $40,000.00 to the Bureau. The civil money penalty paid under this Order will be deposited in the Civil Penalty Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U.S.C. 5497(d) . Defendants CFLA and Lehman must treat the civil money penalty paid under this Order as a penalty paid to the government for all purposes. If the Court terminates the suspension of the order to pay redress under this Section, the Bureau will be entitled to interest on the order to pay redress, on any outstanding amounts not paid. (SEE DOCUMENT FOR OTHER SPECIFICS, COMPLIANCE REQUIREMENTS AND DEADLINES)(MD JS-6, Case Terminated). (lc)

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Bureau of Consumer Financial Protection v. Certified Forensic Loan Auditors, LLC et al Doc. 93 JS-6 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA 9 10 11 12 Bureau of Consumer Financial Protection, Plaintiff, 13 14 15 16 17 18 v. Certified Forensic Loan Auditors, LLC, (CA); Certified Forensic Loan Auditors, LLC (TX); Andrew P. Lehman; and Michael Carrigan, Case No. CV 19-07722-ODW (JEMx) STIPULATED FINAL JUDGMENT AND ORDER AS TO CERTIFIED FORENSIC LOAN AUDITORS, LLC (CA), CERTIFIED FORENSIC LOAN AUDITORS (TX) AND ANDREW P. LEHMAN Defendants. 19 20 21 22 23 24 25 26 27 28 The Bureau of Consumer Financial Protection (“Bureau”) commenced this civil action on September 6, 2019 and filed an Amended Complaint on November 13, 2019 to obtain injunctive relief, restitution, and civil penalties from Certified Forensic Loan Auditors, LLC (CA), Certified Forensic Loan Auditors, LLC (TX) (collectively “CFLA”), Andrew P. Lehman, and Michael Carrigan. The Amended Complaint alleges violations of sections 1031(a) and 1036(a) of the Consumer Financial Protection Act of 2010 (“CFPA”), 12 U.S.C. §§ 5531(a) and 5536(a)(1)(A), and Regulation O, 12 C.F.R. 1 Dockets.Justia.com 1 §§ 1015.3(c) and 1015.5(a) (2011), against CFLA and Lehman in connection with their 2 offering, advertising, marketing, and selling of purported financial-advisory and 3 mortgage-assistance-relief services, and against Defendant Michael Carrigan in 4 connection with his substantial assistance in furtherance of CFLA’s and Lehman’s 5 unlawful conduct. 6 The Bureau and Defendants CFLA and Lehman, agree to entry of this Stipulated 7 Final Judgment and Order (“Order”), without adjudication of any issue of fact or law, to 8 settle and resolve all matters in dispute arising from the conduct alleged in the Amended 9 Complaint. 10 THEREFORE, it is ORDERED: FINDINGS 11 12 1. This Court has jurisdiction over the parties and the subject matter of this 13 action and venue is proper in this jurisdiction under 28 U.S.C. § 1391(b) and (c), and 12 14 U.S.C. § 5564(f). 15 2. The Amended Complaint alleges claims upon which relief may be granted. 16 3. The relief provided in this Order is appropriate and available pursuant to 17 18 sections 1054 and 1055 of the CFPA, 12 U.S.C. §§ 5564 and 5565. 4. Defendants CFLA and Lehman waive all rights to seek judicial review or 19 otherwise challenge or contest the validity of this Order and any claim they may have 20 under the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of 21 this action to the date of this Order. Each Party agrees to bear its own costs and expenses, 22 including, without limitation, attorneys’ fees. 23 5. Defendants CFLA and Lehman neither admit nor deny any allegations in the 24 Amended Complaint, except as specified in this Order. For purposes of this Order, 25 Defendants CFLA and Lehman admit the facts necessary to establish the Court's 26 jurisdiction over Defendant CFLA and Lehman and the subject matter of this action. 27 28 2 1 6. Entry of this Order is in the public interest. 2 3 4 DEFINITIONS 7. The following definitions apply to this Order: a. “Affected Consumers” includes any consumer who, since July 1, 2014, 5 purchased a Securitization Audit and/or a Quiet Title Package from 6 CFLA. 7 8 9 10 b. “Assisting Others” means helping, aiding, training, or providing support to others, including but not limited to: i. consulting in any form whatsoever; ii. formulating or providing, or arranging for the formulation or 11 provision of, any advertising or marketing material, including, but 12 not limited to, any telephone sales script, direct mail solicitation, or 13 the text of any Internet website, email, or other electronic 14 communication; 15 16 iii. providing names of, or contributing to the generation of, potential customers; and 17 iv. participating in or providing services related to the offering, sale, 18 or servicing of a product, or the collection of payments for a 19 product. 20 21 22 23 24 25 c. “CFLA” means Certified Forensic Loan Auditors, LLC, and its successors and assigns. d. “Defendant Carrigan” means Michael Carrigan, and any other names by which he might be known; e. “Defendant Lehman” means Andrew P. Lehman, and any other names by which he might be known; 26 27 28 3 1 2 3 f. “Effective Date” means the date on which the Order is entered by the Court. g. “Enforcement Director” means the Assistant Director of the Office of 4 Enforcement for the Consumer Financial Protection Bureau, or his or her 5 delegate. 6 h. “Financial Advisory Service” includes the meaning of the term 7 “financial advisory services,” as of the Effective Date, in Section 8 1002(15)(viii) of the Consumer Financial Protection Act, 12 U.S.C. § 9 5481(15)(viii), and, subject to applicable limitations on the Bureau’s 10 enforcement authority, includes, but is not limited to: 11 i. providing financial advisory services to consumers on individual 12 financial matters or relating to proprietary financial products or 13 services; 14 ii. providing credit counseling to any consumer; 15 iii. providing services to assist a consumer with debt management or 16 debt settlement, modifying the terms of any extension of credit, or 17 avoiding foreclosure; and 18 19 iv. auditing, reviewing, or analyzing the origination, transfer, or securitization of residential mortgages. 20 i. “Mortgage Assistance Relief Services” is synonymous in meaning and 21 equal in scope to the definition of the term, as of the Effective Date, in 22 Regulation O, 12 C.F.R. 1015.2, and, subject to applicable limitations on 23 the Bureau’s enforcement authority, includes, but is not limited to: 24 i. Any service, plan, or program, offered or provided to the consumer 25 in exchange for consideration, that is represented, expressly or by 26 27 28 4 1 implication, to assist or attempt to assist the consumer with any of 2 the following: 1. Stopping, preventing, or postponing any mortgage or deed 3 4 of trust foreclosure sale for the consumer's dwelling, any 5 repossession of the consumer's dwelling, or otherwise saving 6 the consumer's dwelling from foreclosure or repossession; 7 2. Negotiating, obtaining, or arranging a modification of any 8 term of a dwelling loan, including a reduction in the amount 9 of interest, principal balance, monthly payments, or fees; and 10 11 ii. Obtaining any forbearance or modification in the timing of 12 payments from any dwelling loan holder or servicer on any 13 dwelling loan. 14 j. “Related Consumer Action” means a private action by or on behalf of 15 one or more consumers or an enforcement action by another 16 governmental agency brought against Defendants based on substantially 17 the same facts as described in the Complaint. 18 19 k. “Relevant Period” includes the period from July 1, 2014 to the Effective Date. 20 l. “Securitization Audit” means the audits of residential mortgages that 21 CFLA marketed and sold from July 1, 2014 to the Effective Date. For 22 purposes of this Order a “Securitization Audit” is a “Financial Advisory 23 Service” as that term is defined in subparagraph (h), and a “Mortgage 24 Assistance Relief Service” as that term is defined in subparagraph (i). 25 26 m. “Quiet Title Package” means the package of Securitization Audit and supporting litigation documents that CFLA marketed and sold from July 27 28 5 1 1, 2014 to the effective date. For purposes of this Order a “Quiet Title 2 Package” is a “Financial Advisory Service” as that term is defined in 3 subparagraph (h), and a “Mortgage Assistance Relief Service” as that 4 term is defined in subparagraph (i). 5 ORDER 6 CONDUCT RELIEF 7 I. 8 Permanent Ban on Offering or Providing Mortgage Assistance Relief Services and 9 Financial Advisory Services 10 IT IS ORDERED that: 11 12 8. Defendants CFLA and Lehman, whether acting directly or indirectly, are permanently restrained from: 13 a. providing, advertising, marketing, promoting, offering for sale, selling, or 14 producing any Mortgage Assistance Relief Services or Financial 15 Advisory Services; and 16 b. Assisting Others in, or receiving any remuneration or other consideration 17 from, the provision, advertising, marketing, promoting, offering for sale, 18 sale or production of any Mortgage Assistance Relief Services or 19 Financial Advisory Services. 20 Nothing in this Order shall be read as an exception to this Paragraph. 21 II. 22 Customer Information 23 IT IS FURTHER ORDERED that: 24 25 9. Defendants CFLA and Lehman whether acting directly or indirectly, may not: 26 27 28 6 1 a. disclose, use, or benefit from customer information, including the name, 2 address, telephone number, email address, Social Security number, other 3 identifying information, or any data that enables access to a customer’s 4 account (including a credit card, bank account, or other financial 5 account), that Defendant CFLA or Lehman obtained before the Effective 6 Date in connection with providing Mortgage Assistance Relief Services 7 and Financial Advisory Services; 8 b. attempt to collect, sell, assign, or otherwise transfer any right to collect 9 payment from any consumer who purchased or agreed to purchase 10 Mortgage Assistance Relief Services or Financial Advisory Services 11 from CFLA or Lehman. 12 13 However, customer information may be disclosed if requested by a government agency or required by law, regulation, or court order. 14 MONETARY PROVISIONS 15 III. 16 Order to Pay Redress 17 10. A judgment for monetary relief is entered in favor of the Bureau and against 18 Defendants CFLA and Lehman, jointly and severally, in the amount of $3 million for the 19 purpose of providing redress to Affected Consumers; however, full payment of this 20 judgment will be suspended upon satisfaction of the obligations in Section VI, Additional 21 Monetary Provisions; and subject to Section V, Effect of Misrepresentation or Omission 22 of Financial Condition, of this Order. 23 11. With regard to any redress that Defendant CFLA or Lehman pays under this 24 Section, if Defendant CFLA or Lehman receives, directly or indirectly, any 25 reimbursement or indemnification from any source, including but not limited to payment 26 made under any insurance policy, or if Defendant CFLA or Lehman secures a tax 27 28 7 1 deduction or tax credit with regard to any federal, state, or local tax, the relevant 2 defendant must: (a) immediately notify the Enforcement Director in writing, and (b) 3 within ten (10) days of receiving the funds or monetary benefit, the relevant defendant 4 must transfer to the Bureau the full amount of such funds or monetary benefit (Additional 5 Payment) to the Bureau or to the Bureau’s agent according to the Bureau’s wiring 6 instructions. 7 12. Any funds received by the Bureau in satisfaction of this judgment will be 8 deposited into a fund or funds administered by the Bureau or the Bureau’s agent 9 according to applicable statutes and regulations to be used for redress for injured 10 consumers, including, but not limited to, refund of moneys, restitution, damages or other 11 monetary relief, and for any attendant expenses for the administration of any such 12 redress. 13 13. If the Bureau determines, in its sole discretion, that providing redress to 14 consumers is wholly or partially impracticable or if funds remain after the administration 15 of redress is completed, the Bureau will deposit any remaining funds in the U.S. Treasury 16 as disgorgement. Defendants CFLA and Lehman will have no right to challenge the 17 Bureau’s choice of remedies under this Section and will have no right to contest the 18 manner of distribution chosen by the Bureau. 19 20 14. Payment of redress to any Affected Consumer under this Order may not be conditioned on that Affected Consumer waiving any right. 21 IV. 22 Order to Pay Civil Money Penalty 23 24 IT IS FURTHER ORDERED that: 15. Under Section 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of the 25 violations of law alleged in the Amended Complaint and continuing until the Effective 26 Date, and taking into account the factors in 12 U.S.C. § 5565(c)(3), Defendants CFLA 27 28 8 1 and Lehman, jointly and severally, must pay a civil money penalty of $40,000 to the 2 Bureau. The Bureau may exercise immediately any post-judgment remedies available to 3 it to collect this civil money penalty from Defendants CFLA and Lehman. 4 16. The civil money penalty paid under this Order will be deposited in the Civil 5 Penalty Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U.S.C. § 6 5497(d). 7 17. Defendants CFLA and Lehman must treat the civil money penalty paid 8 under this Order as a penalty paid to the government for all purposes. Regardless of how 9 the Bureau ultimately uses those funds, Defendants CFLA and Lehman may not: a. Claim, assert, or apply for a tax deduction, tax credit, or any other tax 10 benefit for any civil money penalty paid under this Order; or 11 b. Seek or accept, directly or indirectly, reimbursement or indemnification 12 13 from any source, including but not limited to payment made under any 14 insurance policy, with regard to any civil money penalty paid under this 15 Order. 16 18. Defendants CFLA and Lehman agree that the civil penalty imposed by the 17 Order represents a civil penalty owed to the United States Government, is not 18 compensation for actual pecuniary loss, and, thus, as to CFLA and Lehman, it is not 19 subject to discharge under the Bankruptcy Code under 11 U.S.C. § 523(a)(7). 20 V. 21 Effect of Misrepresentation or Omission Regarding Financial Condition 22 23 IT IS FURTHER ORDERED that: 19. The suspensions of the order to pay redress in Section III is expressly 24 premised on the truthfulness, accuracy, and completeness of Defendants CFLA’s and 25 Lehman’s sworn financial statements and supporting documents submitted to the Bureau 26 on or about June 30, 2019 and supplemented on August 12 and 19, 2019, and on June 4, 27 28 9 1 2020 and supplement on June 8, 2020 and June 19, 2020, which Defendants CFLA and 2 Lehman assert are truthful, accurate, and complete, and which include: a. 3 Financial Statements of Defendants CFLA and Lehman, including the 4 attachments, signed on June 30, 2019 and submitted to the Bureau on or about June 30, 5 2019; 6 7 b. Defendant Lehman’s oral testimony provided on or about November 13 and 14, 2018. 8 c. CFLA’s payroll records provided on or about August 12, 2019. 9 d. Bank statements provided on or about August 19, 2019. 10 e. Financial Statements of Defendants CFLA and Lehman, including the 11 attachments, signed on June 2, 2020 and submitted to the Bureau on or about June 4, 12 2020, and which were then supplemented with tax re3turns for 2017, 2018 and 2019 on 13 June 8, 2020 and supplemented with additional account statements on June 19, 2020. 14 20. If upon motion by the Bureau, the Court determines that Defendant CFLA or 15 Lehman has failed to disclose any material asset or that any of their financial statements 16 or oral testimony contain any material misrepresentation or omission, including 17 materially misstating the value of any asset, the Court shall terminate the suspension of 18 the order to pay redress entered in Section III and, without further adjudication, shall 19 reinstate the order to pay redress entered in Section III and the full order to pay redress of 20 $3,000,000 shall be immediately due and payable, less any amounts paid to the Bureau 21 under Section III of this Order. 22 21. If the Court terminates the suspension of the order to pay redress under this 23 Section, the Bureau will be entitled to interest on the order to pay redress computed from 24 the date of entry of this Order, at the rate prescribed by 28 U.S.C. § 1961, as amended, on 25 any outstanding amounts not paid. 26 27 28 10 1 22. Provided, however, that in all other respects this Order shall remain in full 2 force and effect unless otherwise ordered by the Court; and, provided further, that 3 proceedings instituted under this provision would be in addition to, and not in lieu of any 4 other civil or criminal remedies as may be provided by law, including any other 5 proceedings that the Bureau may initiate to enforce this Order. 6 VI. 7 Additional Monetary Provisions 8 9 IT IS FURTHER ORDERED that: 23. In the event of any default on Defendants CFLA’s or Lehman’s obligation to 10 make payment under this Order, interest, computed under 28 U.S.C. § 1961, as amended, 11 will accrue on any outstanding amounts not paid from the date of default to the date of 12 payment, and will immediately become due and payable. 13 24. Defendants CFLA and Lehman relinquish all dominion, control, and title to 14 the funds paid under this Order to the fullest extent permitted by law and no part of the 15 funds may be returned to Defendants CFLA or Lehman. 16 25. The facts alleged in the Amended Complaint will be taken as true and be 17 given collateral estoppel effect, without further proof, in any proceeding based on the 18 entry of the Order, or in any subsequent civil litigation by or on behalf of the Bureau in a 19 proceeding to enforce its rights to any payment or monetary judgment under this Order, 20 such as a nondischargeability complaint in any bankruptcy case. 21 26. The facts alleged in the Amended Complaint establish all elements 22 necessary to sustain an action by the Bureau under Section 523(a)(2)(A) of the 23 Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and for such purposes this Order will have 24 collateral estoppel effect against each Defendant, even in such Defendant’s capacity as 25 debtor-in-possession. 26 27 28 11 1 27. Under 31 U.S.C. § 7701, Defendants CFLA and Lehman, unless they 2 already have done so, must furnish to the Bureau their taxpayer identifying numbers, 3 which may be used for purposes of collecting and reporting on any delinquent amount 4 arising out of this Order. 5 28. Within 30 days of the entry of a final judgment, Order, or settlement in a 6 Related Consumer Action, the affected defendant must notify the Enforcement Director 7 of the final judgment, Order, or settlement in writing. That notification must indicate the 8 amount of redress, if any, that Defendants CFLA or Lehman paid or is required to pay to 9 consumers and describe the consumers or classes of consumers to whom that redress has 10 11 been or will be paid. 29. To preserve the deterrent effect of the civil money penalty in any Related 12 Consumer Action, neither Defendant CFLA nor Lehman may argue that they are entitled 13 to, nor may either Defendant CLFA or Lehman benefit by, any offset or reduction of any 14 monetary remedies imposed in the Related Consumer Action because of the redress or 15 civil money penalty paid in this action or because of any payment that the Bureau makes 16 from the Civil Penalty Fund. If the court in any Related Consumer Action offsets or 17 otherwise reduces the amount of compensatory monetary remedies imposed against either 18 Defendants CLFA or Lehman based on the civil money penalty paid in this action or 19 based on any payment that the Bureau makes from the Civil Penalty Fund, either 20 Defendant CFLA or Lehman, as applicable, must, within 30 days after entry of a final 21 order granting such offset or reduction, notify the Bureau and pay the amount of the 22 offset or reduction to the U.S. Treasury. Such a payment will not be considered an 23 additional civil money penalty and will not change the amount of the civil money penalty 24 imposed in this action. 25 26 30. Under Section 604(a)(I) of the Fair Credit Reporting Act, 15 U.S.C.§ 168l b(a)(1), any consumer reporting agency may furnish a consumer report concerning any 27 28 12 1 Defendant to the Bureau, which may be used for purposes of collecting and reporting on 2 any delinquent amount arising out of this Order. 3 COMPLIANCE PROVISIONS 4 VII. 5 Reporting Requirements 6 7 IT IS FURTHER ORDERED that: 31. Defendant CFLA or Lehman or both, as applicable, must notify the Bureau 8 of any development that may affect compliance obligations arising under this Order, 9 including but not limited to, the filing of any bankruptcy or insolvency proceeding by or 10 against Defendant CFLA or Lehman; or a change in Defendant CFLA or Lehman’s name 11 or address. Defendant CFLA or Lehman or both, as applicable, must provide this notice 12 at least 30 days before the development or as soon as practicable after the learning about 13 the development, whichever is sooner. 14 15 32. Within 7 days of the Effective Date, both Defendants CFLA and Lehman must each: 16 a. Designate at least one telephone number and email, physical, and postal 17 address as points of contact, which the Bureau may use to communicate 18 with Defendants CFLA and Lehman; 19 b. Identify all businesses for which Defendant CFLA or Lehman is the 20 majority owner, or that Defendant CFLA or Lehman directly or indirectly 21 controls, by all of their names, telephone numbers, and physical, postal, 22 email, and Internet addresses; 23 c. Describe the activities of each such business, including the products and 24 services offered, and the means of advertising, marketing, and sales. 25 d. Identify Defendants CFLA and Lehman’s telephone numbers and all 26 email, Internet, physical, and postal addresses, including all residences; 27 28 13 1 e. Describe in detail Defendant CFLA’s or Lehman’s involvement in any 2 business for which either performs services in any capacity or which 3 either wholly or partially owns, including Defendant CFLA’s or 4 Lehman’s title, role, responsibilities, participation, authority, control, and 5 ownership. 6 33. Defendants CFLA and Lehman must report any change in the information 7 required to be submitted under Paragraph 31 at least 30 days before the change or as soon 8 as practicable after learning about the change, whichever is sooner. 9 34. Within 90 days of the Effective Date, and again one year after the Effective 10 Date, both Defendant CFLA and Lehman must each submit to the Enforcement Director 11 an accurate written compliance progress report sworn to under penalty of perjury 12 (Compliance Report), which, at a minimum: a. Lists each applicable paragraph and subparagraph of the Order and 13 14 describes in detail the manner and form in which each Defendant has 15 complied with each such paragraph and subparagraph of this Order; 16 b. Attaches a copy of each Order Acknowledgment obtained under Section VIII, unless previously submitted to the Bureau. 17 18 After the one-year period, both Defendant CFLA and Lehman must each submit to the 19 Enforcement Director additional Compliance Reports within 14 days of receiving a 20 written request from the Bureau. 21 VIII. 22 Order Distribution and Acknowledgment 23 24 IT IS FURTHER ORDERED that, 35. Within 7 days of the Effective Date, Defendants CFLA and Lehman must 25 submit to the Enforcement Director an acknowledgment of receipt of this Order, sworn 26 under penalty of perjury. 27 28 14 1 36. For 5 years from the Effective Date, both Defendant CFLA and Lehman, for 2 any business for which either is the majority owner or which either directly or indirectly 3 controls, must each deliver a copy of this Order to any business entity resulting from any 4 change in structure referred to in Section VII, Reporting Requirements, any future board 5 members and executive officers, as well as to any managers, employees, Service 6 Providers, or other agents and representatives who will have responsibilities related to the 7 subject matter of the Order before they assume their responsibilities. 8 37. Both Defendant CFLA and Lehman must each secure a signed and dated 9 statement acknowledging receipt of a copy of this Order, ensuring that any electronic 10 signatures comply with the requirements of the E-Sign Act, 15 U.S.C. § 7001 et seq., 11 within 30 days of delivery, from all persons receiving a copy of this Order under this 12 Section. 13 IX. 14 Recordkeeping 15 16 IT IS FURTHER ORDERED that 38. Both Defendant CFLA and Lehman, for any business for which either is a 17 majority owner or which either directly or indirectly controls, must each create, for at 18 least 5 years from the Effective Date, the following business records: All documents and 19 records necessary to demonstrate full compliance with each provision of this Order, 20 including all submissions to the Bureau. 21 39. Both Defendant CFLA and Lehman must each retain these documents for at 22 least 5 years after creation and make them available to the Bureau upon the Bureau’s 23 request. 24 25 26 27 28 15 1 X. 2 Notices 3 4 IT IS FURTHER ORDERED that: 40. Unless otherwise directed in writing by the Bureau, Defendants CFLA and 5 Lehman must provide all submissions, requests, communications, or other documents 6 relating to this Order in writing, with the subject line, “CFPB v. Certified Forensic Loan 7 Auditors, et al., Case No. CV 19-07722,” and send them by overnight courier or first- 8 class mail to the below address and contemporaneously by email to 9 Enforcement_Compliance@cfpb.gov: 10 Assistant Director for Enforcement 11 Bureau of Consumer Financial Protection 12 ATTENTION: Office of Enforcement 13 1700 G Street, N.W. 14 Washington D.C. 20552 15 XI. 16 Cooperation with the Bureau 17 18 IT IS FURTHER ORDERED that: 41. Defendants CFLA and Lehman must cooperate fully to help the Bureau 19 determine the identity and location of, and the amount of injury sustained by, each 20 Affected Consumer. Defendants CFLA and Lehman must provide such information in its 21 or its agents’ possession or control within 14 days of receiving a written request from the 22 Bureau. 23 42. Defendants CFLA and Lehman must cooperate fully with the Bureau in this 24 matter and in any investigation related to or associated with the conduct described in the 25 Amended Complaint, including the identification of CFLA’s current and former 26 employees and contractors and current and former customers. Defendants CFLA and 27 28 16 1 Lehman must provide truthful and complete information, evidence, and testimony. 2 Defendants CFLA and Lehman must appear for interviews, discovery, hearings, trials, 3 and any other proceedings that the Bureau may reasonably request upon 10 days written 4 notice, or other reasonable notice, at such places and times as the Bureau may designate, 5 without the service of compulsory process. 6 XII. 7 Compliance Monitoring 8 IT IS FURTHER ORDERED that, to monitor Defendants CFLA’s and Lehman’s 9 compliance with this Order, including the financial representations upon which the order 10 to pay redress and part of the civil money penalty was suspended: 11 43. Within 14 days of receipt of a written request from the Bureau, either 12 Defendant CFLA, Lehman or both, as applicable, must submit additional compliance 13 reports or other requested non-privileged information, related to requirements of this 14 Order, which must be sworn under penalty of perjury; provide sworn testimony related to 15 requirements of this Order and Defendants CFLA’s and Lehman’s compliance with those 16 requirements; or produce non-privileged documents related to requirements of this Order 17 and Defendants CFLA’s and Lehman’s compliance with those requirements. 18 44. For purposes of this Section, the Bureau may communicate directly with 19 Defendants CFLA and Lehman, unless Defendants CFLA or Lehman or counsel they 20 retain notifies the Bureau that they have retained counsel related to these 21 communications. 22 45. Defendants CFLA and Lehman must permit Bureau representatives to 23 interview about the requirements of this Order and Defendants CFLA’s and Lehman’s 24 compliance with those requirements any employee or other person affiliated with 25 Defendants CFLA or Lehman who has agreed to such an interview. The person 26 interviewed may have counsel present. 27 28 17 1 2 46. Nothing in this Order will limit the Bureau’s lawful use of compulsory process, under 12 C.F.R. § 1080.6. 3 XIII. 4 Retention of Jurisdiction 5 6 7 IT IS FURTHER ORDERED that: 47. The Court will retain jurisdiction of this matter for the purpose of enforcing this Order. 8 XIV. 9 Pending Motions 10 48. All pending motions are hereby denied as moot. 11 XV. 12 Service 13 14 IT IS FURTHER ORDERED that: 49. This Order may be served upon Defendants CFLA and Lehman by 15 electronic mail, certified mail, or United Parcel Service, either by the United States 16 Marshal, the Clerk of the Court, or any representative or agent of the Bureau. 17 18 IT IS SO ORDERED. 19 20 DATED this 20th day of July, 2020. 21 22 23 ____________________________ 24 25 Otis D. Wright, II United States District Judge 26 27 28 18

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