United States of America v. Internet Transaction Services, Inc., No. 2:2021cv06582 - Document 76 (C.D. Cal. 2021)
Court Description: STIPULATED ORDER FOR PERMANENT INJUNCTION AND FINAL JUDGMENT AS TO DEFENDANT JENNY SULLIVAN filed by Judge John F. Walter. IT IS ORDERED that Defendant, her agents and attorneys, and all other persons in active concert or participation with her, who receive actual notice of this Order by personal service or otherwise, are permanently restrained and enjoined. SEE ORDER FOR DETAILS. (iv)
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United States of America v. Internet Transaction Services, Inc. Doc. 76 1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 CENTRAL DISTRICT OF CALIFORNIA 9 WESTERN DIVISION 10 11 12 13 14 15 16 UNITED STATES OF AMERICA, Plaintiff, v. INTERNET TRANSACTION SERVICES, INC., et al., Civil Case No. 21-6582-JFW (KSx) STIPULATED ORDER FOR PERMANENT INJUNCTION AND FINAL JUDGMENT AS TO DEFENDANT JENNY SULLIVAN Defendants. 17 18 19 20 21 22 23 24 25 26 27 28 Dockets.Justia.com On August 13, 2021, the United States of America filed its Complaint for 1 2 Temporary Restraining Order, Preliminary and Permanent Injunctions, and Other 3 Equitable Relief (the “Complaint”) against Defendant Jenny Sullivan 4 (“Defendant”) and other named Defendants, pursuant to 18 U.S.C. § 1345, based 5 on Defendants’ alleged violations of 18 U.S.C. §§ 1343, 1344, and 1349. On 6 August 20, 2021, the Court issued its Order granting the United States’ Ex Parte 7 Application for a Temporary Restraining Order. On September 2, 2021, the Court 8 issued a Preliminary Injunction. The United States and Defendant stipulated to the entry of this Stipulated 9 10 Order for Permanent Injunction (“Order”). Defendant, pro se, entered into the 11 Stipulation freely and without coercion. Defendant further acknowledged that she 12 has read the provisions of the Stipulation and this Order, understands them, and is 13 prepared to abide by them. Per the parties’ agreement, the Stipulation and this 14 Order resolve only the claims against Defendant in the above-captioned civil 15 lawsuit. They do not prevent the United States from pursuing criminal penalties 16 against Defendant in relation to the conduct alleged in the Complaint, nor does 17 Defendant’s Stipulation constitute evidence that Defendant committed the acts 18 alleged in the Complaint, or in any way prejudice Defendant’s ability to contest the 19 allegations in the Complaint in a future proceeding. Accordingly, it is hereby ORDERED, ADJUDGED, AND DECREED that: 20 FINDINGS 21 A. 22 This Court has jurisdiction over the subject matter of this case and 23 there is good cause to believe that it will have jurisdiction over all parties hereto 24 and that venue in this district is proper. B. 25 26 The United States seeks injunctive relief pursuant to 18 U.S.C. § 1345. 27 28 1 1 C. Defendant neither admits nor denies any of the allegations in the 2 Complaint. Only for purposes of this action, Ms. Sullivan admits the facts 3 necessary to establish jurisdiction. DEFINITIONS 4 5 For the purpose of this Order: 6 A. 7 8 9 10 “Asset” means any legal or equitable interest in, right to, or claim to, any property, wherever located and by whomever held. B. “Corporate Entities” means Defendants Internet Transaction Services, Inc., Intertrans.com, Inc., and each of the “Shell Entities” defined below. C. “Payment Processing Services” means handling credit card 11 transactions, debit card transactions, Automated Clearing House (ACH) 12 transactions, check transactions, money orders, or cash transactions. 13 14 15 16 17 D. “Person” means any individual, corporation, a partnership, or any other entity. E. “Receiver” means Thomas W. McNamara, and any deputy receivers that shall be named by him. F. “Receivership Entities” means Defendants Internet Transaction 18 Services, Inc.; Intertrans.com, Inc.; as well as any other entity that has conducted 19 any business related to Intertrans’ participation in the scheme that is the subject of 20 the Complaint in this matter, including receipt of Assets derived from any activity 21 that is the subject of the Complaint in this matter, and that the Receiver 22 determines is controlled or owned by Intertrans. 23 G. “Shell Entities” means Defendants Be a Kloud LLC; Blue Water 24 LLC; CBX International Inc. (Delaware); CBX International, Inc. (Florida); Delta 25 Cloud LLC; Dollar Web Sales LLC; ECloud Secure LLC; Eastgate View LLC; I- 26 Support Group LLC; My Kloud Box LLC; Newagecloudservices LLC; NRG 27 Support LLC; Silver Safe Box LLC; Silver Safe Box Inc.; Storage VPN LLC; and 28 VPN Me Now LLC. 2 ORDER 1 2 I. PROHIBITED ACTIVITIES IT IS ORDERED that Defendant, her agents and attorneys, and all other 3 4 persons in active concert or participation with her, who receive actual notice of this 5 Order by personal service or otherwise, are permanently restrained and enjoined 6 from: 7 8 9 10 11 12 13 A. Committing or conspiring to commit wire fraud, as defined by 18 U.S.C. §§ 1343 and 1349; B. Committing or conspiring to commit bank fraud, as defined by 18 U.S.C. §§ 1344 and 1349; C. Charging or debiting any person or entity on behalf of any Shell Entities or for the purported purchase of any Shell Entities’ services; D. Debiting funds from consumers’ bank accounts without their prior 14 authorization; 15 E. Engaging in any tactics to avoid fraud and risk monitoring programs 16 established by any financial institution, payment processors, or the operators of any 17 payment system, including by using sham transactions, such as the “micro 18 transactions” described in the Complaint, to reduce a bank account’s return or 19 chargeback rate, or by using shell corporations to open bank accounts; 20 21 22 F. Incorporating or creating any corporate entity for the purpose of debiting funds from consumers’ bank accounts without their prior authorization; G. Selling, renting, leasing, transferring, or otherwise disclosing, the 23 name, address, birth date, telephone number, email address, credit card number, 24 bank account number, Social Security number, IP address, or other financial or 25 identifying information of any person that any Defendant obtained in connection 26 with any activity that pertains to the subject matter of this Order; and 27 28 H. Providing any support or substantial assistance to any Person that Defendant knows is engaged in any of the above activities. 3 1 II. COOPERATION WITH RECEIVER AND ASSET FREEZE For any Corporate Entities’ or Receivership Entities’ Assets within the 2 3 control of Defendant, her agents and attorneys, and/or all other persons in active 4 concert or participation with her, Defendant shall: A. 5 Hold, preserve, and retain within her control and prohibit the 6 withdrawal, removal, alteration, assignment, transfer, pledge, encumbrance, 7 disbursement, dissipation, relinquishment, conversion, sale, or other disposal of 8 any Asset, as well as all Documents or other property related to such Assets, 9 except by further order of this Court or by direction of the Receiver; B. 10 11 Fully cooperate with and assist the Receiver in taking and maintaining possession, custody, or control of the Receivership Entities’ Assets; and C. 12 To the extent she has not done so already, provide the United States, 13 within seven (7) days after entry of this Order or of obtaining direct or indirect 14 control over the Assets: (1) a list of all accounts, including savings, checking, 15 investment, and merchant accounts held in the name of a Corporate Entity or 16 Receivership Entity, for which the Defendant is an accountholder, signatory, 17 beneficiary, or over which the Defendant otherwise has control; (2) a list of any 18 other Assets held or controlled by the Defendant in the name of a Corporate Entity 19 or Receivership Entity; and (3) the balance of each such account, or a description 20 of the nature and value of each such Asset. 21 III. 22 23 24 COMPLIANCE MONITORING For a period of five (5) years after the date of entry of this Order, Defendant must notify the United States if she: A. Creates, operates, is employed by, or otherwise becomes involved in 25 any business or entity that provides, or consults or provides advice regarding 26 Payment Processing Services; 27 28 B. Creates, operates, is employed by, or otherwise becomes involved in any business or entity that monitors return or chargeback rates for any other 4 1 business or corporate entity; and/or provides advice or consulting on how to lower 2 or manage return or chargeback rates for any business or corporate entity; C. 3 Creates, operates, is employed by, or otherwise becomes involved in 4 any business or entity that purports to offer cloud computing services, identity theft 5 protection services, or technology support services; and/or D. 6 Creates, operates, or exercises control over any business entity, 7 whether newly formed or previously inactive. Defendant must also provide the 8 United States with a written statement disclosing: (1) the name of the business 9 entity; (2) the address and telephone number of the business entity; (3) the names 10 of the business entity’s officers, directors, principals, managers, and employees; 11 and (4) a detailed description of the business entity’s intended activities. 12 IV. ORDER ACKNOWLEDGMENTS It is further ordered that within fifteen (15) days after entry of this Order, the 13 14 Defendant is ordered to submit to Postal Inspector Ashlea Bowens a written 15 acknowledgement of receipt of this Order sworn under penalty of perjury. The 16 statement shall be addressed to: 17 Postal Inspector Ashlea Bowens 18 U.S. Postal Inspection Service 19 P.O. Box 7404 20 Washington, DC 20044-7404 21 V. MODIFICATION OF ORDER This Order shall not be modified except in writing by the United States and 22 23 Defendant and approved by the Court. 24 /// 25 /// 26 /// 27 /// 28 /// 5 1 2 IV. RETENTION OF JURISDICTION IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this 3 matter for all purposes. 4 SO ORDERED 5 6 DATED this 15th day of October, 2021 7 8 ________________________ 9 United States District Judge 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6
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