Bureau of Consumer Financial Protection et al v. Consumer Advocacy Center Inc. et al, No. 8:2019cv01998 - Document 210 (C.D. Cal. 2020)
Court Description: STIPULATED FINAL JUDGMENT AND ORDER AS TO DEFENDANT TUONG NGUYEN AND RELIEF DEFENDANT TN ACCOUNTING INC. by Judge Michael W. Fitzgerald. Settling Defendant and Settling Relief Defendant neither admit nor deny the allegations in the Amended Complaint, except as specifically stated herein. For purposes of this Order, Settling Defendant and Settling Relief Defendant admit the facts necessary to establish the Court's jurisdiction over them and the subject matter of this action. (iv)
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Bureau of Consumer Financial Protection et al v. Consumer Advocacy Center Inc. et al Doc. 210 Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 1 of 35 Page ID #:5973 1 2 3 4 5 6 7 8 9 10 UNITED STATES DISTRICT COURT 11 CENTRAL DISTRICT OF CALIFORNIA 12 13 14 15 Bureau of Consumer Financial Protection, et al., Plaintiffs, v. CASE NO. 8:19-cv-01998 MWF (KS) STIPULATED FINAL JUDGMENT AND ORDER AS TO DEFENDANT TUONG NGUYEN AND RELIEF DEFENDANT TN ACCOUNTING INC. 16 17 Consumer Advocacy Center Inc., d/b/a Premier Student Loan Center, et al., 18 19 Defendants. Court: Hon. Michael W. Fitzgerald Courtroom 5A 20 21 22 23 24 STIPULATED FINAL JUDGMENT AND ORDER AS TO DEFENDANT TUONG NGUYEN AND RELIEF DEFENDANT TN ACCOUNTING INC. Plaintiffs the Bureau of Consumer Financial Protection (Bureau), the State 25 of Minnesota, the State of North Carolina, and the People of the State of California 26 (collectively, Plaintiffs) commenced this civil action on October 21, 2019, and 27 28 1 STIPULATED FINAL JUDGMENT AND ORDER Dockets.Justia.com Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 2 of 35 Page ID #:5974 1 filed an amended complaint on February 24, 2020 (Amended Complaint), to obtain 2 permanent injunctive relief, damages, rescission or reformation of contracts, 3 refunds of moneys paid, restitution, disgorgement or compensation for unjust 4 enrichment, civil money penalties, and other monetary and equitable relief from: 5 (1) Defendants Consumer Advocacy Center Inc. d/b/a Premier Student Loan 6 Center; True Count Staffing Inc. d/b/a SL Account Management; Prime Consulting 7 LLC d/b/a Financial Preparation Services; TAS 2019 LLC d/b/a Trusted Account 8 Services; Horizon Consultants LLC; First Priority LLC d/b/a Priority Account 9 Management; Albert Kim; Kaine Wen; and Tuong Nguyen; and (2) Relief 10 Defendants Infinite Management Corp., f/k/a Infinite Management Solutions Inc.; 11 Hold The Door, Corp.; TN Accounting Inc.; Mice and Men LLC; Sarah Kim; 1st 12 Generation Holdings, LLC; and Anan Enterprise, Inc. 13 The Amended Complaint alleges violations of sections 1031(a) and 1036(a) 14 of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531(a), 15 5536(a); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 16 15 U.S.C. § 6102(c)(2) (Telemarketing Act), based on alleged violations of the 17 Telemarketing Sales Rule (TSR), 16 C.F.R. pt. 310; the Minnesota Prevention of 18 Consumer Fraud Act (MNCFA), Minn. Stat. §§ 325F.68-.694; the Minnesota 19 Uniform Deceptive Trade Practices Act (MNDTPA), Minn. Stat. §§ 325D.43-.48; 20 the North Carolina Debt Adjusting Act (NCDAA), N.C. Gen. Stat. § 14-423 et 21 seq.; the North Carolina Telephonic Seller Registration Act (NCTSRA), N.C. Gen. 22 Stat. § 66-260 et seq.; the North Carolina Unfair and Deceptive Practices Act 23 (NCUDPA), N.C. Gen. Stat. § 75-1.1; and the California Business and Professions 24 Code 17200 et seq. (the Unfair Competition Law or UCL) in connection with the 25 above-named defendants’ marketing and sale of debt-relief services. 26 27 28 The (1) Plaintiffs, (2) Defendant Tuong Nguyen (Settling Defendant), and 2 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 3 of 35 Page ID #:5975 1 (3) Relief Defendant TN Accounting Inc. (Settling Relief Defendant) agree to 2 entry of this Stipulated Final Judgment and Order (Order), without adjudication of 3 any issue of fact or law, to settle and resolve all matters in dispute between them 4 arising from the conduct alleged in the Amended Complaint. 5 THEREFORE, IT IS ORDERED: 6 FINDINGS 7 8 1. This Court has jurisdiction over the parties and the subject matter of this action. 9 2. Settling Defendant and Settling Relief Defendant neither admit nor 10 deny the allegations in the Amended Complaint, except as specifically stated 11 herein. For purposes of this Order, Settling Defendant and Settling Relief 12 Defendant admit the facts necessary to establish the Court’s jurisdiction over them 13 and the subject matter of this action. 14 3. Settling Defendant and Settling Relief Defendant waive all rights to 15 seek judicial review or otherwise challenge or contest the validity of this Order and 16 any claim they may have under the Equal Access to Justice Act, 28 U.S.C § 2412, 17 concerning the prosecution of this action to the date of this Order. Each Party 18 agrees to bear its own costs and expenses, including, without limitation, attorneys’ 19 fees. 20 4. 21 22 23 Entry of this Order is in the public interest. DEFINITIONS The following definitions apply to this Order: 5. “Affected Consumers” includes any consumer who paid Defendants 24 or their officers, agents, servants, employees, or attorneys for any Debt-Relief 25 Service from November 2, 2015, to October 23, 2019. 26 27 28 3 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 4 of 35 Page ID #:5976 1 6. “Assets” means any legal or equitable interest in, right to, or claim to 2 any real, personal, or intellectual property owned or controlled by, or held, in 3 whole or in part for the benefit of, or subject to access by any Defendant, wherever 4 located, whether in the United States or abroad. This includes, but is not limited to, 5 chattel, goods, instruments, equipment, fixtures, general intangibles, effects, 6 leaseholds, contracts, mail or other deliverables, shares of stock, commodities, 7 futures, inventory, checks, notes, accounts, credits, receivables (as those terms are 8 defined in the Uniform Commercial Code), funds, cash, and trusts, including but 9 not limited to any trust held for the benefit of Settling Defendant’s minor children, 10 11 or any of Settling Defendant’s spouses. 7. “Assist[ing] Others” includes, but is not limited to: 12 a. consulting in any form whatsoever; 13 b. providing paralegal or administrative support services; 14 c. performing customer service functions, including but not 15 limited to, receiving or responding to consumer complaints; 16 d. 17 provision of, any advertising or marketing material, including but not 18 limited to, any telephone sales script, direct mail solicitation, or the 19 text of any Internet website, email, or other electronic communication 20 or advertisement; 21 e. 22 provision of, any marketing support material or service, including but 23 not limited to, web or Internet Protocol addresses or domain name 24 registration for any Internet websites, affiliate marketing services, or 25 media placement services; formulating or providing, or arranging for the formulation or formulating or providing, or arranging for the formulation or 26 27 28 4 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 5 of 35 Page ID #:5977 1 f. 2 customers; 3 g. 4 and 5 h. 6 principal of any entity. 7 8. providing names of, or assisting in the generation of, potential performing marketing, billing, or payment services of any kind; acting or serving as an owner, officer, director, manager, or “Bankruptcy Proceeding” means In re Consumer Advocacy Center 8 Inc., Case No. 19-10655, currently pending in the United States Bankruptcy Court, 9 Southern District of Florida, Fort Lauderdale Division. 10 9. “Bureau” means the Bureau of Consumer Financial Protection. 11 10. “Consumer Financial Product or Service” is synonymous in meaning 12 and equal in scope to the definition of the term in the CFPA, 12 U.S.C. § 5481(5), 13 and, subject to applicable restrictions contained in the CFPA, includes but is not 14 limited to: 15 a. 16 individual consumer financial matters or relating to proprietary 17 financial products or services, including providing credit counseling 18 to any consumer or providing services to assist a consumer with debt 19 management or debt settlement, modifying the terms of any extension 20 of credit, or avoiding foreclosure; and 21 b. 22 exchanging funds, or otherwise acting as a custodian of funds or any 23 financial instrument for use by or on behalf of a consumer. 24 11. providing financial advisory services to consumers on engaging in deposit-taking activities, transmitting or “Defendants” means Corporate Defendants and Individual 25 Defendants, individually, collectively, or in any combination, and each of them by 26 whatever names each might be known; 27 28 5 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 6 of 35 Page ID #:5978 1 a. 2 Inc., True Count Staffing Inc., Prime Consulting LLC, TAS 2019 3 LLC, Horizon Consultants LLC, and First Priority LLC, collectively, 4 or in any combination, and their successors and assigns, and each of 5 them by any other names by which they might be known, including 6 South Coast Financial Center, Direct Account Services, Financial 7 Loan Advisors, Account Preparation Services, Administrative 8 Financial, Tangible Savings Solutions, Coastal Shores Financial 9 Group, First Choice Financial Centre (a/k/a First Choice Financial “Corporate Defendants” means Consumer Advocacy Center 10 Center), Administrative Account Services, Primary Account 11 Solutions, Prime Document Services, Financial Accounting Center, 12 Doc Management Solutions, First Priority LLC, ALW Loans 13 Administrative Accounting Center, Best Choice Financial Center, 14 First Document Services, Global Direct Accounting Solutions, 15 Keystone Document Center, Pacific Palm Financial Group, Pacific 16 Shores Advisory, Sequoia Account Management, Signature Loan 17 Solutions, Yellowstone Account Services, ClearStudentLoanDebt, 18 Clear Student Loan Debt, Trusted Account Services, Premier Student 19 Loan Center, and Priority Account Management; 20 b. 21 Kaine Wen, a/k/a Wenting Kaine Dai, Wen-Ting Dai, Wen Ting Dai, 22 Kaine Dai, and Kaine Wen Dai; and Tuong Nguyen, a/k/a Tom 23 Nelson, collectively, or in any combination, and each of them by any 24 other names by which they might be known; 25 c. 26 Prime Consulting LLC, TAS 2019 LLC, Horizon Consultants LLC, 27 28 “Individual Defendants” means Albert Kim, a/k/a Albert King; “Receivership Defendants” means True Count Staffing Inc., 6 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 7 of 35 Page ID #:5979 1 and First Priority LLC, collectively, or in any combination, and their 2 successors and assigns; 3 d. “Relief Defendants” means: 4 i. 5 Solutions Inc.; Hold The Door, Corp.; TN Accounting Inc.; 6 Mice and Men LLC; 1st Generation Holdings, LLC; and Anan 7 Enterprise, Inc., collectively, or in any combination, and their 8 successors and assigns, and each of them by any other names by 9 which they might be known; and Infinite Management Corp., f/k/a Infinite Management 10 ii. 11 known. Sarah Kim, and any other names by which she might be 12 e. 13 names by which he might be known; 14 f. 15 successors and assigns, and each of them by any other names by 16 which they might be known. 17 12. “Settling Defendant” means Tuong Nguyen, and any other “Settling Relief Defendant” means TN Accounting Inc., and its “Debt-Relief Service” means any program or service represented, 18 directly or by implication, to renegotiate, settle, or in any way alter the terms of 19 payment or other terms of the debt between a consumer and one or more unsecured 20 creditors or debt collectors, including but not limited to, a reduction in the balance, 21 interest rate, or fees owed by a consumer to an unsecured creditor or debt collector. 22 23 24 13. “Effective Date” means the date on which this Order is entered by the 14. “Enforcement Director” means the Assistant Director of the Office of Court. 25 Enforcement for the Bureau of Consumer Financial Protection, or his or her 26 delegate. 27 28 7 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 8 of 35 Page ID #:5980 1 15. “Person” means an individual, partnership, company, corporation, 2 association (incorporated or unincorporated), trust, estate, cooperative 3 organization, or other entity; 4 16. “Plaintiffs” means the Bureau of Consumer Financial Protection, the 5 State of Minnesota, the State of North Carolina, and the People of the State of 6 California, collectively, or in any combination. 7 17. “Receiver” means Thomas W. McNamara. 8 18. “Related Consumer Action” means a private action by or on behalf of 9 one or more consumers or an enforcement action by another governmental agency 10 brought against Settling Defendant or Settling Relief Defendant based on 11 substantially the same facts as described in the Amended Complaint. 12 13 14 19. “States” means the State of Minnesota, the State of North Carolina, and the People of the State of California. 20. “Service Provider” means any person that provides a material service 15 to a covered person, in connection with the offering or provision by such covered 16 person of a Consumer Financial Product or Service, including a person that—(i) 17 participates in designing, operating, or maintaining the Consumer Financial 18 Product or Service; or (ii) processes transactions relating to the Consumer 19 Financial Product or Service (other than unknowingly or incidentally transmitting 20 or processing financial data in a manner that such data is undifferentiated from 21 other types of data of the same form as the person transmits or processes). “Service 22 provider” does not include a person solely by virtue of such person offering or 23 providing to a covered person—(i) a support service of a type provided to 24 businesses generally or a similar ministerial service; or (ii) time or space for an 25 advertisement for a Consumer Financial Product or Service through print, 26 newspaper, or electronic media. 27 28 8 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 9 of 35 Page ID #:5981 1 CONDUCT RELIEF 2 I 3 Permanent Ban on Telemarketing and Offering or Selling Debt-Relief 4 Services 5 6 7 It is ORDERED that: 21. Settling Defendant, whether acting directly or indirectly, is permanently restrained from: 8 a. 9 telemarketing any Consumer Financial Product or Service; participating in telemarketing or Assisting Others engaged in 10 b. 11 promoting, offering for sale, selling, or providing any Debt-Relief 12 Service; 13 c. 14 holding any ownership interest in, providing services to, or working in 15 any capacity for any Person engaged in or assisting in advertising, 16 marketing, promoting, offering for sale, selling, or providing any 17 Debt-Relief Service. 18 participating in or Assisting Others in advertising, marketing, receiving any remuneration or other consideration from, Nothing in this Order shall be read as an exception to this Paragraph. 19 II 20 Prohibited Misrepresentations and Other Conduct 21 22 It is FURTHER ORDERED that: 22. Settling Defendant and his officers, agents, servants, employees, and 23 attorneys, and all other Persons in active concert or participation with them, who 24 have actual notice of this Order, whether acting directly or indirectly, in connection 25 with the advertising, marketing, promotion, offering for sale, sale, or performance 26 27 28 9 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 10 of 35 Page ID #:5982 1 of any Consumer Financial Product or Service, may not misrepresent, or Assist 2 Others in misrepresenting, expressly or impliedly: 3 a. 4 service, including but not limited to, the amount of savings a 5 consumer will receive from purchasing, using, or enrolling in the 6 Consumer Financial Product or Service; 7 b. 8 Financial Product or Service; 9 c. the benefits that a consumer will receive from the product or the time required to achieve benefits from the Consumer any aspect of the nature or terms of a refund, cancellation, 10 exchange, or repurchase policy of the Consumer Financial Product or 11 Service, including but not limited to, the likelihood of a consumer 12 obtaining a full or partial refund or the circumstances in which a full 13 or partial refund will be granted to the consumer; and 14 d. 15 limitation, or condition of the Consumer Financial Product or Service. the total costs or any other material term, fact, restriction, 16 III 17 State Injunctive Provisions 18 19 It is FURTHER ORDERED that: 23. Settling Defendant and his officers, agents, servants, employees, and 20 attorneys, and all other Persons in active concert or participation with them who 21 receive actual notice of this Order, shall be permanently restrained and enjoined 22 from violating: 23 a. 24 Stat. § 325D.44; 25 b. the Minnesota Consumer Fraud Act, Minn. Stat. § 325F.69; and 26 c. the Minnesota Debt Settlement Services Act, Minn. Stat. § 27 28 the Minnesota Uniform Deceptive Trade Practices Act, Minn. 10 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 11 of 35 Page ID #:5983 1 2 332B. 24. Settling Defendant and his officers, agents, servants, employees and 3 attorneys, and those Persons in active concert or participation with any of them 4 who receive actual notice of this Order, shall be permanently restrained and 5 enjoined from violating: 6 a. 7 423, et seq.; 8 b. 9 Gen. Stat. § 75-1.1; and the North Carolina Debt Adjusting Act, N.C. Gen. Stat. § 14- the North Carolina Unfair and Deceptive Practices Act, N.C. 10 c. 11 Gen. Stat. § 66-260, et seq. 12 25. the North Carolina Telephonic Seller Registration Act, N.C. Under the Court’s inherent equitable powers and as authorized by 13 California Business and Professions Code section 17203, this Court is empowered 14 to “make such orders or judgments . . . as may be necessary to prevent the use or 15 employment by any person of any practice which constitutes unfair 16 competition . . .” Cal. Bus & Prof Code § 17203. Accordingly, Settling Defendant 17 and his officers, agents, servants, employees, and attorneys, and all other persons 18 in active concert or participation with them, whether acting directly or indirectly, 19 are permanently restrained from any of the following: 20 a. 21 17200, et seq., through unlawful, fraudulent and/or unfair acts or 22 practices including but not limited to: violating California Business and Professions Code section 23 i. 24 seq., the California Check Sellers, Bill Payers and Proraters 25 Law, by acting as a check seller, bill payer, or prorater within 26 the State of California without first obtaining a license from the 27 28 Violating California Financial Code section 12000, et 11 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 12 of 35 Page ID #:5984 1 California Commissioner of Business Oversight; 2 ii. 3 seq., the California Student Loan Servicing Act, by engaging in 4 the business of servicing student loans in California without first 5 obtaining a license as required under the Act. Violating California Financial Code section 28100, et 6 IV 7 Customer Information 8 It is FURTHER ORDERED that: 9 26. Settling Defendant and his officers, agents, servants, employees, and 10 attorneys, and all other Persons in active concert or participation with any of them, 11 who receive actual notice of this Order, whether acting directly or indirectly, may 12 not: 13 a. 14 the name, address, telephone number, email address, social security 15 number, other identifying information, or any data that enables access 16 to a customer’s account (including a credit card, bank account, or 17 other financial account), that Defendants obtained before the 18 Effective Date in connection with the offering or providing of Debt- 19 Relief Services; 20 b. 21 collect payment from any consumer who purchased or agreed to 22 purchase a Debt-Relief Service from any Defendant. 23 24 27. disclose, use, or benefit from customer information, including attempt to collect, sell, assign, or otherwise transfer any right to However, customer information may be disclosed if requested by a government agency or required by law, regulation, or court order. 25 26 27 28 12 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 13 of 35 Page ID #:5985 1 MONETARY PROVISIONS 2 V 3 Order to Pay Redress 4 5 It is FURTHER ORDERED that: 28. A judgment for monetary relief is entered in favor of Plaintiffs and 6 against Settling Defendant and Settling Relief Defendant as set forth below. 7 Settling Defendant Tuong Nguyen is liable, jointly and severally, in the amount of 8 $95,057,757, for the purpose of providing redress to Affected Consumers. Of this 9 judgment for monetary relief: 10 a. 11 and severally liable for the amount of $444,563, such amount also 12 being for the purpose of providing redress to Affected Consumers. 13 29. Settling Relief Defendant TN Accounting Inc. shall be jointly However, full payment of Settling Defendant’s and Settling Relief 14 Defendant’s portion of this judgment set forth in Paragraph 28 will be suspended, 15 based on Settling Defendant’s and Settling Relief Defendant’s inability to pay, 16 upon Settling Defendant’s and Settling Relief Defendant’s satisfaction of the 17 obligations in Paragraphs 30-33 of this Section, Section VI, Paragraphs 42 and 44- 18 45 of Section VII, Paragraph 51 of Section IX, and subject to Section VIII of this 19 Order. 20 30. Except as necessary to effectuate the transfers required by Paragraph 21 85, Settling Defendant and Settling Relief Defendant hereby grant to the Bureau all 22 rights and claims they have to all Assets subject to the asset freeze imposed by the 23 Preliminary Injunction entered on November 15, 2019 (ECF 103), and all Assets 24 identified in Attachment A and Attachment B, except as set forth in Attachment B. 25 Within 10 business days from receipt of a copy of this Order by any means, 26 including but not limited to via facsimile or email, the financial institutions 27 28 13 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 14 of 35 Page ID #:5986 1 identified in Attachment A shall transfer to the Bureau or its designated agent all 2 funds held in the accounts listed in Attachment A by wire transfer to the Bureau or 3 the Bureau’s agent according to the Bureau’s wiring instructions. 4 31. To the extent they have not already done so, Settling Defendant and 5 Settling Relief Defendant are ordered to transfer and relinquish to the Receiver, or 6 to its designated agent, possession, custody, and control of the following Assets 7 within 7 days of entry of this Order, unless otherwise stated: 8 a. 9 as well as any accounts receivable from, the following entity: Settling dominion and all legal and equitable right, title, and interest in, 10 Relief Defendant, including its successors, assigns, affiliates, or 11 subsidiaries, and each of them by whatever names each might be 12 known; 13 b. 14 32. all Assets listed on Attachment B. Settling Defendant and Settling Relief Defendant shall cooperate fully 15 with the Receiver and shall execute any instrument or document presented by the 16 Receiver, and take any other actions the Receiver deems necessary or appropriate 17 to effect the transfers required by Paragraph 31. All property set forth in Paragraph 18 31 shall constitute Assets of the receivership estate. 19 33. Except as necessary to effectuate the transfers required by Paragraph 20 85, Settling Defendant and Settling Relief Defendant hereby grant to the Bureau all 21 rights and claims they have to any Assets not subject to Paragraph 30 that are 22 currently in the possession, custody, or control of the Receiver, including but not 23 limited to any such Assets identified in Paragraph 31, and shall forfeit any rights 24 and claims to the funds in the receivership estate, including but not limited to: all 25 funds held, obtained, or to be obtained by the Receiver since the inception of the 26 receivership whether through this Order or otherwise. 27 28 14 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 15 of 35 Page ID #:5987 1 34. The suspension of the monetary judgment in Paragraph 29 shall not 2 affect the Receiver’s ability to pursue recovery of funds from any third parties, 3 including family members of Settling Defendant and Settling Relief Defendant, to 4 satisfy all or a portion of the full monetary judgment entered in Paragraph 28. 5 Settling Defendant and Settling Relief Defendant shall remain jointly and severally 6 liable for full payment of this judgment to the extent that funds to satisfy all or a 7 portion of this judgment are able to be recovered from third parties by the Receiver 8 acting on behalf of the Receivership Defendants. 9 35. With regard to any redress that Settling Defendant and Settling Relief 10 Defendant pay under this Section, if Settling Defendant or Settling Relief 11 Defendant receive, directly or indirectly, any reimbursement or indemnification 12 from any source, including but not limited to payment made under any insurance 13 policy, or if Settling Defendant or Settling Relief Defendant secure a tax deduction 14 or tax credit with regard to any federal, state, or local tax, Settling Defendant or 15 Settling Relief Defendant must: (a) immediately notify the Enforcement Director 16 and States in writing, and (b) within 10 days of receiving the funds or monetary 17 benefit, Settling Defendant or Settling Relief Defendant must transfer the full 18 amount of such funds or monetary benefit (Additional Payment) to the Bureau or 19 to the Bureau’s agent according to the Bureau’s wiring instructions. After the 20 Bureau receives the Additional Payment, the amount of the suspended judgment 21 referenced in Paragraph 29 will be reduced by the amount of the Additional 22 Payment and the Additional Payment will be applied toward satisfaction of the 23 monetary judgment entered in Paragraph 28. 24 36. Any funds received by the Bureau in satisfaction of this judgment will 25 be deposited into a fund or funds administered by the Bureau or to the Bureau’s 26 agent according to applicable statutes and regulations to be used for redress for 27 28 15 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 16 of 35 Page ID #:5988 1 Affected Consumers, including but not limited to refund of moneys, restitution, 2 damages or other monetary relief, and for any attendant expenses for the 3 administration of any such redress. 4 37. If the Bureau determines, in its sole discretion, that providing redress 5 to consumers is wholly or partially impracticable or if funds remain after the 6 administration of redress is completed, the Bureau will deposit any remaining 7 funds in the U.S. Treasury as disgorgement. Settling Defendant and Settling Relief 8 Defendant will have no right to challenge the Bureau’s choice of remedies under 9 this Section, and will have no right to contest the manner of distribution chosen by 10 11 12 the Bureau. 38. Payment of redress to any Affected Consumer under this Order may not be conditioned on that Affected Consumer waiving any right. 13 VI 14 Order to Pay Civil Money Penalty to the Bureau 15 16 It is FURTHER ORDERED that: 39. Under section 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of 17 the violations of law alleged in the Amended Complaint and taking into account 18 the factors in 12 U.S.C. § 5565(c)(3), Settling Defendant must pay a civil money 19 penalty of $1 to the Bureau. This nominal civil penalty is based on Settling 20 Defendant’s limited ability to pay as attested to in all financial statements and 21 supporting documents listed in Section VIII. 22 40. Within 10 days of the Effective Date, Settling Defendant must pay the 23 civil money penalty by wire transfer to the Bureau or to the Bureau’s agent in 24 compliance with the Bureau’s wiring instructions. 25 26 27 28 41. 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, 16 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 17 of 35 Page ID #:5989 1 12 U.S.C. § 5497(d). 2 VII 3 Order to Pay Civil Money Penalties to the States 4 It is FURTHER ORDERED that: 5 42. Settling Defendant is liable to pay civil penalties in this Enforcement 6 Action under Minn. Stat. § 8.31 in the total amount of $5,000 to the State of 7 Minnesota, as provided in Paragraph 85. 8 9 43. The Minnesota Attorney General will remit these funds to the general fund of the State of Minnesota pursuant to Minn. Stat. §§ 8.31 and 16A.151. 10 44. Settling Defendant is liable to pay civil penalties in this Enforcement 11 Action under N.C. Gen. Stat. § 75-15.2 in the total amount of $5,000 to the State of 12 North Carolina, as provided in Paragraph 85. 13 45. Settling Defendant is liable to pay civil penalties in this Enforcement 14 Action under California Business and Professions Code section 17206 in the total 15 amount of $5,000 to the People of the State of California, as provided in Paragraph 16 85. 17 VIII 18 Misrepresentation or Omission Regarding Financial Condition or Non- 19 Compliance with Order to Pay Redress or Civil Money Penalty 20 21 It is FURTHER ORDERED that: 46. The suspension of the monetary judgment entered in Section V of this 22 Order is expressly premised on the truthfulness, accuracy, and completeness of 23 Settling Defendant’s and Settling Relief Defendant’s sworn financial statements 24 and supporting documents, which Settling Defendant and Settling Relief 25 Defendant assert are truthful, accurate, and complete, and which include: 26 27 28 a. Financial Statement of Tuong Nguyen, including all 17 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 18 of 35 Page ID #:5990 1 attachments, signed on July 30, 2020, and submitted to the Bureau on 2 or about July 30, 2020; and 3 b. 4 attachments, signed on October 31, 2019, and submitted to the Bureau 5 on or about November 5, 2019, and supplemented on November 7, 6 2019, December 19, 2019, July 14, 2020, and July 30, 2020. 7 47. Financial Statement of TN Accounting Inc., including all If upon motion by any Plaintiff, the Court determines that Settling 8 Defendant or Settling Relief Defendant has failed to disclose any material Asset or 9 that any of their financial statements contain any material misrepresentation or 10 omission, including materially misstating the value of any Asset, the Court shall 11 terminate the suspension of the monetary judgment for that Settling Defendant or 12 Settling Relief Defendant entered in Section V and without further adjudication, 13 shall reinstate the judgment entered in Section V of this Order and the full 14 judgment set forth in that Section with respect to that Settling Defendant or 15 Settling Relief Defendant shall be immediately due and payable, less any amounts 16 paid to the Bureau under Section V of this Order by that Settling Defendant or 17 Settling Relief Defendant. 18 48. If the Court terminates the suspension of the monetary judgment 19 under this Section, the Bureau will be entitled to interest on the judgment, 20 computed from the date of entry of this Order, at the rate prescribed by 28 U.S.C. 21 § 1961, as amended, on any outstanding amounts not paid. 22 49. Provided, however, that in all other respects this Order shall remain in 23 full force and effect unless otherwise ordered by the Court; and, provided further, 24 that proceedings instituted under this Section would be in addition to, and not in 25 lieu of any other civil or criminal remedies as may be provided by law, including 26 any other proceedings that Plaintiffs may initiate to enforce this Order. 27 28 18 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 19 of 35 Page ID #:5991 1 IX 2 Additional Monetary Provisions 3 4 It is FURTHER ORDERED that: 50. In the event of any default on Settling Defendant’s and Settling Relief 5 Defendant’s obligations to make payment under this Order, interest, computed 6 under 28 U.S.C. § 1961, as amended, will accrue on any outstanding amounts not 7 paid from the date of default to the date of payment, and will immediately become 8 due and payable by the defaulting Settling Defendant or Settling Relief Defendant. 9 51. Settling Defendant and Settling Relief Defendant relinquish all 10 dominion, control, and title to the funds and all other Assets transferred or paid 11 under this Order to the fullest extent permitted by law and no part of the funds or 12 other Assets may be returned to Settling Defendant or Settling Relief Defendant. 13 52. The facts alleged in the Amended Complaint will be taken as true and 14 given collateral estoppel effect, without further proof, in any proceeding based on 15 the entry of the Order, or in any subsequent civil litigation by or on behalf of the 16 Plaintiffs, including in a proceeding to enforce their rights to any payment or 17 monetary judgment under this Order, such as a non-dischargeability complaint in 18 any bankruptcy case. 19 53. The facts alleged in the Amended Complaint establish all elements 20 necessary to sustain an action by the Plaintiffs under section 523(a)(2)(A) of the 21 Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and for such purposes this Order will 22 have collateral estoppel effect against Settling Defendant and Settling Relief 23 Defendant, even in such Defendant’s capacity as debtor-in-possession. 24 54. Under 31 U.S.C. § 7701, Settling Defendant and Settling Relief 25 Defendant, unless they already have done so, must furnish to Plaintiffs any 26 taxpayer-identifying numbers associated with them or their Assets, which may be 27 28 19 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 20 of 35 Page ID #:5992 1 used for purposes of collecting and reporting on any delinquent amount arising out 2 of this Order. 3 55. Within 30 days of the entry of a final judgment, order, or settlement in 4 a Related Consumer Action, Settling Defendant and Settling Relief Defendant 5 must notify the Enforcement Director of the final judgment, order, or settlement in 6 writing. That notification must indicate the amount of redress, if any, that the 7 Settling Defendant or Settling Relief Defendant paid or is required to pay to 8 consumers and describe the consumers or classes of consumers to whom that 9 redress has been or will be paid. To preserve the deterrent effect of the civil money 10 penalty in any Related Consumer Action, Settling Defendant and Settling Relief 11 Defendant may not argue that they are entitled to, nor may Settling Defendant or 12 Settling Relief Defendant benefit by, any offset or reduction of any monetary 13 remedies imposed in the Related Consumer Action because of the civil money 14 penalty paid in this action or because of any payment that the Bureau makes from 15 the Civil Penalty Fund. If the court in any Related Consumer Action offsets or 16 otherwise reduces the amount of compensatory monetary remedies imposed 17 against Settling Defendant or Settling Relief Defendant based on the civil money 18 penalty paid in this action or based on any payment that the Bureau makes from the 19 Civil Penalty Fund, the Settling Defendant or Settling Relief Defendant must, 20 within 30 days after entry of a final order granting such offset or reduction, notify 21 the Bureau and pay the amount of the offset or reduction to the U.S. Treasury. 22 Such a payment will not be considered an additional civil money penalty and will 23 not change the amount of the civil money penalty imposed in this action. 24 56. Upon written request, any consumer reporting agency may furnish 25 consumer reports to any Plaintiff concerning Settling Defendant under section 26 604(a)(1) of the Fair Credit Reporting Act, 15 U.S.C.§ 1681b(a)(1), which may be 27 28 20 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 21 of 35 Page ID #:5993 1 used for purposes of collecting and reporting on any delinquent amount arising out 2 of this Order. 3 57. Settling Defendant must treat all civil money penalties paid under this 4 Order as a penalty paid to the government for all purposes. Regardless of how such 5 funds are used, Settling Defendant may not: 6 a. 7 other tax benefit for any civil money penalty paid under this Order; or 8 b. 9 indemnification from any source, including but not limited to payment claim, assert, or apply for a tax deduction, tax credit, or any seek or accept, directly or indirectly, reimbursement or 10 made under any insurance policy, with regard to any civil money 11 penalty paid under this Order. 12 58. Settling Defendant agrees that the civil penalties imposed by the 13 Order under Sections VI and VII represent penalties paid to the Bureau and the 14 States, respectively, not compensation for actual pecuniary loss, and, thus, as to the 15 Settling Defendant, are not subject to discharge under the Bankruptcy Code under 16 11 U.S.C. § 523(a)(7). 17 X 18 Lifting of Asset Freeze 19 20 It is FURTHER ORDERED that: 59. The freeze on the Assets of Settling Defendant and Settling Relief 21 Defendant is modified to permit the payments and other transfers of Assets 22 identified in Sections V, VI, VII and IX of this Order. Upon completion of all 23 payments and other obligations identified in Sections V, VI, VII and IX of this 24 Order, the freeze of the Settling Defendant’s and Settling Relief Defendant’s 25 Assets pursuant to the Preliminary Injunction entered on November 15, 2019 (ECF 26 103), shall be dissolved. 27 28 21 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 22 of 35 Page ID #:5994 1 COMPLIANCE PROVISIONS 2 XI 3 Reporting Requirements 4 5 It is FURTHER ORDERED that: 60. Settling Defendant must notify Plaintiffs of any development that may 6 affect compliance obligations arising under this Order, including but not limited to, 7 a dissolution, assignment, sale, merger, or other action that would result in the 8 emergence of a successor company; the creation or dissolution of a subsidiary, 9 parent, or affiliate that engages in any acts or practices subject to this Order; the 10 filing of any bankruptcy or insolvency proceeding by or against Settling 11 Defendant; or a change in Settling Defendant’s name or address. Settling 12 Defendant must provide this notice at least 30 days before the development or as 13 soon as practicable after learning about the development, whichever is sooner. 14 61. Within 7 days of the Effective Date, Settling Defendant must: 15 a. 16 and postal address as points of contact, which Plaintiffs may use to 17 communicate with Settling Defendant; 18 b. 19 majority owner, or that such Settling Defendant directly or indirectly 20 controls, by all of their names, telephone numbers, and physical, 21 postal, email, and Internet addresses; 22 c. 23 products and services offered, and the means of advertising, 24 marketing, and sales; 25 d. 26 Internet, physical, and postal addresses, including all residences; and 27 28 designate at least one telephone number and email, physical, identify all businesses for which Settling Defendant is the describe the activities of each such business, including the identify Settling Defendant’s telephone numbers and all email, 22 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 23 of 35 Page ID #:5995 1 e. 2 business for which he performs services in any capacity or which he 3 wholly or partially owns, including his title, role, responsibilities, 4 participation, authority, control, and ownership. 5 62. describe in detail Settling Defendant’s involvement in any Settling Defendant must report any change in the information required 6 to be submitted under Paragraph 61 above at least 30 days before the change or as 7 soon as practicable after learning about the change, whichever is sooner. 8 63. Within 90 days of the Effective Date, and again one year after the 9 Effective Date, Settling Defendant must submit to the Enforcement Director an 10 accurate written compliance progress report sworn to under penalty of perjury 11 (Compliance Report), which, at a minimum: 12 a. 13 and describes in detail the manner and form in which Settling 14 Defendant has complied with each such paragraph and subparagraph 15 of this Order; and 16 b. 17 Section XII, unless previously submitted to the Bureau. lists each applicable paragraph and subparagraph of this Order attaches a copy of each Order Acknowledgment obtained under 18 XII 19 Order Distribution and Acknowledgment 20 21 It is FURTHER ORDERED that: 64. Within 7 days of the Effective Date, Settling Defendant must submit 22 to the Enforcement Director an acknowledgment of receipt of this Order, sworn 23 under penalty of perjury. 24 65. Within 30 days of the Effective Date, Settling Defendant, for any 25 business for which he is the majority owner or which he directly or indirectly 26 controls, must deliver a copy of this Order to each of its board members and 27 28 23 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 24 of 35 Page ID #:5996 1 executive officers, as well as to any managers, employees, Service Providers, or 2 other agents and representatives who have responsibilities related to the subject 3 matter of the Order. 4 66. For 5 years from the Effective Date, Settling Defendant, for any 5 business for which he is the majority owner or which he directly or indirectly 6 controls, must deliver a copy of this Order to any business entity resulting from 7 any change in structure referred to in Section XI, any future board members and 8 executive officers, as well as to any managers, employees, Service Providers, or 9 other agents and representatives who will have responsibilities related to the 10 11 subject matter of the Order before they assume their responsibilities. 67. Settling Defendant must secure a signed and dated statement 12 acknowledging receipt of a copy of this Order, ensuring that any electronic 13 signatures comply with the requirements of the E-Sign Act, 15 U.S.C. § 7001 et 14 seq., within 30 days of delivery, from all Persons receiving a copy of this Order 15 under this Section. 16 68. Within 90 days of the Effective Date, Settling Defendant must provide 17 the Bureau with a list of all persons and their titles to whom this Order was 18 delivered through that date under Paragraphs 65-66 and a copy of all signed and 19 dated statements acknowledging receipt of this Order under Paragraph 67. 20 XIII 21 Recordkeeping 22 23 It is FURTHER ORDERED that: 69. Settling Defendant must create, for at least 10 years from the Effective 24 Date, the following business records for any business for which the Settling 25 Defendant, individually or collectively with any other Defendant, is a majority 26 owner or which Settling Defendant directly or indirectly controls: all documents 27 28 24 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 25 of 35 Page ID #:5997 1 and records necessary to demonstrate full compliance with each provision of this 2 Order, including all submissions to any Plaintiff. Settling Defendant must retain 3 these documents for at least 10 years after creation and make them available to 4 Plaintiffs upon any Plaintiff’s request. 5 6 70. Settling Defendant must maintain, for at least 10 years from the Effective Date or 5 years after creation, whichever is longer: 7 a. 8 websites; and other marketing materials, including any such materials 9 used by a third party on Settling Defendant’s behalf, relating to any copies of all sales scripts; training materials; advertisements; 10 Consumer Financial Product or Service; 11 b. 12 enrollment in that Consumer Financial Product or Service: the 13 consumer’s name, address, phone number, email address; amount 14 paid, quantity of Consumer Financial Products or Services purchased, 15 description of the Consumer Financial Product or Service purchased, 16 the date on which the Consumer Financial Product or Service was 17 purchased, a copy of any promotional or welcome materials provided, 18 and, if applicable, the date and reason the consumer left the program; 19 c. 20 records showing the gross and net revenues generated by the 21 Consumer Financial Product or Service; 22 d. 23 directly or indirectly, such as through a third party) relating to a 24 Consumer Financial Product or Service, and any responses to those 25 complaints or requests; 26 e. 27 28 for each individual Affected Consumer and his or her for all Consumer Financial Products or Services, accounting all consumer complaints and refund requests (whether received records showing, for each employee providing services related 25 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 26 of 35 Page ID #:5998 1 to a Consumer Financial Product or Service, that person’s name, 2 telephone number, email, physical, and postal address, job title or 3 position, dates of service, and, if applicable, the reason for 4 termination; and 5 f. 6 related to a Consumer Financial Product or Service, the name of a 7 point of contact, and that Person’s telephone number, email, physical, 8 and postal address, job title or position, dates of service, and, if 9 applicable, the reason for termination. 10 11 71. records showing, for each Service Provider providing services Settling Defendant must make these materials available to Plaintiffs upon any Plaintiff’s request. 12 XIV 13 Notices 14 15 It is FURTHER ORDERED that: 72. Unless otherwise directed in writing by the Bureau, Settling 16 Defendant and Settling Relief Defendant must provide all submissions, requests, 17 communications, or other documents relating to this Order in writing, with the 18 subject line, “CFPB, et al., v. CAC, et al., Case No. 8:19-cv-01998-MWF-KS” and 19 send them by overnight courier or first-class mail to the below address and 20 contemporaneously by email to Enforcement_Compliance@cfpb.gov: 21 Assistant Director for Enforcement 22 Bureau of Consumer Financial Protection 23 ATTENTION: Office of Enforcement 24 1700 G Street, N.W. 25 Washington, D.C. 20552 26 27 28 73. Unless otherwise directed by a representative of the State of 26 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 27 of 35 Page ID #:5999 1 Minnesota in writing, all submissions to the State of Minnesota pursuant to this 2 Order must be sent by overnight courier or first-class mail to the below address and 3 contemporaneously by email to evan.romanoff@ag.state.mn.us: 4 Evan Romanoff, Assistant Attorney General 5 Office of the Minnesota Attorney General 6 445 Minnesota Street, Suite 1200 7 St. Paul, Minnesota 55101 8 9 74. Unless otherwise directed by a representative of the State of North Carolina in writing, all submissions to the State of North Carolina pursuant to this 10 Order must be sent by overnight courier or first-class mail to the below address and 11 contemporaneously by email to lweaver@ncdoj.gov: 12 M. Lynne Weaver, Special Deputy Attorney General 13 North Carolina Department of Justice 14 114 W. Edenton Street 15 Raleigh, North Carolina 27603 16 75. Unless otherwise directed by the State of California in writing, all 17 submissions to the State of California pursuant to this Order must be sent by 18 overnight courier or first-class mail to the below address and contemporaneously 19 by email to christina.tusan@lacity.org: 20 Christina Tusan 21 Supervising Deputy City Attorney 22 Los Angeles City Attorney’s Office 23 200 N. Main Street, 5th Floor 24 Los Angeles, CA 90012 25 26 27 28 76. The Enforcement Director may, in his or her discretion, modify any non-material requirements of this Order (e.g., reasonable extensions of time and 27 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 28 of 35 Page ID #:6000 1 changes to reporting requirements) if he or she determines good cause justifies the 2 modification. Any such modification by the Enforcement Director must be in 3 writing. 4 XV 5 Cooperation with Plaintiffs 6 7 It is FURTHER ORDERED that: 77. Settling Defendant must cooperate fully with Plaintiffs in this matter 8 and in any investigation or litigation related to or associated with the conduct 9 described in the Amended Complaint, including related to the Bankruptcy 10 Proceeding. Settling Defendant must provide truthful and complete information, 11 evidence, and testimony. Settling Defendant must appear for interviews, discovery, 12 hearings, trials, and any other proceedings that any Plaintiff may reasonably 13 request upon 10 days written notice, or other reasonable notice, at such places and 14 times as Plaintiff may designate, without the service of compulsory process. 15 78. Settling Defendant and Settling Relief Defendant must cooperate fully 16 to help Plaintiffs determine the identity, location, and contact information of any 17 Defendant and any Person who might have contact information for any Defendant. 18 Settling Defendant and Settling Relief Defendant must provide such information in 19 their or their agents’ possession or control within 14 days of receiving a written 20 request from any Plaintiff. 21 79. Settling Defendant and Settling Relief Defendant must cooperate fully 22 to help Plaintiffs determine the identity and location of, and the amount of injury 23 sustained by, each Affected Consumer. Settling Defendant and Settling Relief 24 25 26 27 28 28 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 29 of 35 Page ID #:6001 1 Defendant must provide such information in their or their agents’ possession or 2 control within 14 days of receiving a written request from any Plaintiff. 3 XVI 4 Compliance Monitoring 5 It is FURTHER ORDERED that, to monitor Settling Defendant’s and Settling 6 Relief Defendant’s compliance with this Order, including the financial 7 representations upon which part of the judgment was suspended: 8 9 80. Within 14 days of receipt of a written request from any Plaintiff, Settling Defendant or Settling Relief Defendant must submit additional 10 Compliance Reports or other requested information, which must be made under 11 penalty of perjury; provide sworn testimony; or produce documents. 12 81. For purposes of this Section, Plaintiffs may communicate directly 13 with Settling Defendant or Settling Relief Defendant, unless the Settling Defendant 14 or Settling Relief Defendant retains counsel related to these communications. 15 82. Settling Defendant and Settling Relief Defendant must permit 16 Plaintiffs’ representatives to interview any employee or other Person affiliated with 17 Settling Defendant who has agreed to such an interview. The Person interviewed 18 may have counsel present. Nothing in this Order will limit the Bureau’s lawful use 19 of civil investigative demands under 12 C.F.R. § 1080.6 or any Plaintiff’s use of 20 other compulsory process. 21 83. Plaintiffs are authorized by this Order to use all other lawful means, 22 including posing, through representatives, as consumers, suppliers, or other 23 individuals or entities, to the Settling Defendant or any individual or entity 24 affiliated with Settling Defendant, without the necessity of identification or prior 25 notice, and may record any communications that occur in the course of such 26 contacts. 27 28 29 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 30 of 35 Page ID #:6002 1 XVII 2 Receivership 3 It is FURTHER ORDERED that: 4 84. The receivership imposed by this Court shall continue in the manner 5 set forth in the Preliminary Injunction issued on November 15, 2019 (ECF 103), as 6 to all Defendants and Relief Defendants, except as modified by this Section and 7 Section X, and the Receiver shall continue to have the full powers of an equity 8 receiver, as an agent of the Court, pursuant to Sections XIV and XV of the 9 Preliminary Injunction, which shall remain in effect until further order of the 10 11 Court. 85. Within 14 days of liquidating Settling Defendant’s Assets transferred 12 pursuant to Paragraph 31, the Receiver shall transfer $5,000 to the State of 13 Minnesota, $5,000 to the North Carolina Attorney General, and $5,000 to the 14 People of the State of California from the Settling Defendant’s Assets maintained 15 in the Receiver’s account. These transfers shall be made to satisfy the civil money 16 penalties to each State as set forth in Section VII. 17 86. The Receiver shall promptly take all steps necessary to liquidate the 18 Settling Defendant’s and Settling Relief Defendant’s Assets using any 19 commercially reasonable means, including auction and/or private sale, and all such 20 sales shall be deemed authorized and approved under 28 U.S.C. § 2004 without 21 further notice, hearing, or court order. After such liquidation, the Receiver shall 22 remit the net proceeds to the Bureau or its designated representative as payment 23 toward the monetary judgments entered against Settling Relief Defendant and 24 Settling Relief Defendant within 21 days of each such sale or liquidation, subject 25 to Paragraph 85. 26 27 28 30 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 31 of 35 Page ID #:6003 1 87. The Receiver and his representatives shall continue to be entitled to 2 reasonable compensation for the performance of their duties pursuant to this Order 3 from the Assets of the Receivership Defendants. The Receiver and his 4 representatives shall not increase their hourly rates without prior approval of the 5 Court. 6 XVIII 7 Retention of Jurisdiction 8 9 It is FURTHER ORDERED that: 88. The Court will retain jurisdiction of this matter for the purpose of 10 enforcing this Order. 11 It is SO ORDERED, this 28th day of August, 2020. 12 13 ____________________________ 14 Michael W. Fitzgerald 15 United States District Judge 16 17 18 19 20 21 22 23 24 25 26 27 28 31 STIPULATED FINAL JUDGMENT AND ORDER Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 32 of 35 Page ID #:6004 ATTACHMENT A Attachment A to [Proposed] Order Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 33 of 35 Page ID #:6005 List of Assets Transferred Pursuant to Paragraph 30 of the Order Any and all Assets at the following financial institutions and in the following accounts: 1. Charles Schwab & Co., Inc. and Charles Schwab Bank: a. account number ending in 7450 in the name of Tuong Nguyen; 2. JP Morgan Chase Bank, N.A.: a. account number ending in 7163 in the name of TN Accounting Inc.; 3. Preferred Bank: a. account number ending in 1184 in the name of Tuong T. Nguyen or Thi My Tien Nguyen; 4. Wells Fargo Bank, N.A.: a. account number ending in 0206 in the name of Mytien T. Nguyen or Tuong Nguyen; and b. account number ending in 9982 in the name of Mytien T. Nguyen or Tuong Nguyen. Attachment A to [Proposed] Order Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 34 of 35 Page ID #:6006 ATTACHMENT B Attachment B to [Proposed] Order Case 8:19-cv-01998-MWF-KS Document 210 Filed 08/28/20 Page 35 of 35 Page ID #:6007 List of Assets Transferred Pursuant to Paragraphs 30-31 of the Order 1. The following vehicle and, for the vehicle, the certificate of title and all documents evidencing purchase and ownership: a. 2018 Tesla Model 3, VIN ending in 3912, in the name of Tuong Nguyen. 2. The following Assets and, for each Asset, all documents evidencing purchase and ownership, including all original packaging: a. All Assets identified at item nos. 20 and 23 on the Financial Statement of Tuong Nguyen, including all attachments, signed on July 30, 2020, and submitted to the Bureau on or about July 30, 2020, including the following items: i. Chanel J12 watch; ii. 8.26 Bitcoin, 10.9 Ethereum, 1.39 Bitcoin, and 1.28 Bitcoin Cash. Provided that the following Assets shall be released to Mr. Nguyen: all Assets not identified above or on Attachment A that are listed at item nos. 10, 12, 20, 21, and 23 of the above-referenced Financial Disclosure. b. All Assets identified at item no. 23 on the Financial Statement of TN Accounting Inc., including all attachments, signed on October 31, 2019, and submitted to the Bureau on or about November 5, 2019, and resubmitted and supplemented on November 7, 2019, December 19, 2019, July 14, 2020, and July 30, 2020: i. Rolex Datejust Watch, serial number 930002E7, acquisition cost $10,400. Provided that the following Assets shall be released to TN Accounting Inc.: all electronics as identified on the above-referenced Financial Statement. Attachment B to [Proposed] Order
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