Bureau of Consumer Financial Protection et al v. Consumer Advocacy Center Inc. et al, No. 8:2019cv01998 - Document 218 (C.D. Cal. 2020)

Court Description: STIPULATED FINAL JUDGMENT AND ORDER AS TO RELIEF DEFENDANTS HOLD THE DOOR, CORP. AND MICE AND MEN LLC by Judge Michael W. Fitzgerald. Settling Relief Defendant Hold the Door, Corp. shall be jointly and severally liable for the amount of $1,638, 687, such amount being for the purpose of providing redress to Affected Consumers; and Settling Relief Defendant Mice and Men LLC shall be jointly and severally liable for the amount of $5,041,069, such amount being for the purpose of providing redress to Affected Consumers. SEE JUDGMENT FOR DETAILS. (iv)

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Bureau of Consumer Financial Protection et al v. Consumer Advocacy Center Inc. et al Doc. 218 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 RELIEF DEFENDANTS HOLD THE DOOR, CORP. AND MICE AND MEN LLC 16 17 Consumer Advocacy Center Inc., d/b/a Premier Student Loan Center, et al., 18 19 Court: Hon. Michael W. Fitzgerald Courtroom 5A Defendants. 20 21 STIPULATED FINAL JUDGMENT AND ORDER AS TO RELIEF DEFENDANTS HOLD THE DOOR, CORP. AND MICE AND MEN LLC 22 Plaintiffs the Bureau of Consumer Financial Protection (Bureau), the State 23 of Minnesota, the State of North Carolina, and the People of the State of California 24 (collectively, Plaintiffs) commenced this civil action on October 21, 2019, and 25 filed an amended complaint on February 24, 2020 (Amended Complaint), to obtain 26 permanent injunctive relief, damages, rescission or reformation of contracts, 27 28 1 STIPULATED FINAL JUDGMENT AND ORDER Dockets.Justia.com 1 refunds of moneys paid, restitution, disgorgement or compensation for unjust 2 enrichment, civil money penalties, and other monetary and equitable relief from: 3 (1) Defendants Consumer Advocacy Center Inc. d/b/a Premier Student Loan 4 Center; True Count Staffing Inc. d/b/a SL Account Management; Prime Consulting 5 LLC d/b/a Financial Preparation Services; TAS 2019 LLC d/b/a Trusted Account 6 Services; Horizon Consultants LLC; First Priority LLC d/b/a Priority Account 7 Management; Albert Kim; Kaine Wen; and Tuong Nguyen; and (2) Relief 8 Defendants Infinite Management Corp., f/k/a Infinite Management Solutions Inc.; 9 Hold the Door, Corp.; TN Accounting Inc.; Mice and Men LLC; Sarah Kim; 1st 10 Generation Holdings, LLC; and Anan Enterprise, Inc. 11 The Amended Complaint alleges violations of sections 1031(a) and 1036(a) 12 of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531(a), 13 5536(a); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 14 15 U.S.C. § 6102(c)(2) (Telemarketing Act), based on alleged violations of the 15 Telemarketing Sales Rule (TSR), 16 C.F.R. pt. 310; the Minnesota Prevention of 16 Consumer Fraud Act (MNCFA), Minn. Stat. §§ 325F.68-.694; the Minnesota 17 Uniform Deceptive Trade Practices Act (MNDTPA), Minn. Stat. §§ 325D.43-.48; 18 the North Carolina Debt Adjusting Act (NCDAA), N.C. Gen. Stat. § 14-423 et 19 seq.; the North Carolina Telephonic Seller Registration Act (NCTSRA), N.C. Gen. 20 Stat. § 66-260 et seq.; the North Carolina Unfair and Deceptive Practices Act 21 (NCUDPA), N.C. Gen. Stat. § 75-1.1; and the California Business and Professions 22 Code 17200 et seq. (the Unfair Competition Law or UCL) in connection with the 23 above-named defendants’ marketing and sale of debt-relief services. 24 The (1) Plaintiffs and (2) Relief Defendants Hold the Door, Corp. and Mice 25 and Men LLC (Settling Relief Defendants) agree to entry of this Stipulated Final 26 Judgment and Order (Order), without adjudication of any issue of fact or law, to 27 28 2 STIPULATED FINAL JUDGMENT AND ORDER 1 settle and resolve all matters in dispute between them arising from the conduct 2 alleged in the Amended Complaint. 3 THEREFORE, IT IS ORDERED: 4 5 6 7 FINDINGS 1. This Court has jurisdiction over the parties and the subject matter of this action. 2. Settling Relief Defendants neither admit nor deny the allegations in 8 the Amended Complaint, except as specifically stated herein. For purposes of this 9 Order, Settling Relief Defendants admit the facts necessary to establish the Court’s 10 11 jurisdiction over them and the subject matter of this action. 3. Settling Relief Defendants waive all rights to seek judicial review or 12 otherwise challenge or contest the validity of this Order and any claim they may 13 have under the Equal Access to Justice Act, 28 U.S.C § 2412, concerning the 14 prosecution of this action to the date of this Order. Each Party agrees to bear its 15 own costs and expenses, including, without limitation, attorneys’ fees. 16 4. 17 18 19 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 20 or their officers, agents, servants, employees, or attorneys for any Debt-Relief 21 Service from November 2, 2015, to October 23, 2019. 22 6. “Assets” means any legal or equitable interest in, right to, or claim to 23 any real, personal, or intellectual property owned or controlled by, or held, in 24 whole or in part for the benefit of, or subject to access by any Defendant, wherever 25 located, whether in the United States or abroad. This includes, but is not limited to, 26 chattel, goods, instruments, equipment, fixtures, general intangibles, effects, 27 28 3 STIPULATED FINAL JUDGMENT AND ORDER 1 leaseholds, contracts, mail or other deliverables, shares of stock, commodities, 2 futures, inventory, checks, notes, accounts, credits, receivables (as those terms are 3 defined in the Uniform Commercial Code), funds, cash, and trusts. 4 7. “Bureau” means the Bureau of Consumer Financial Protection. 5 8. “Defendants” means Corporate Defendants and Individual 6 Defendants, individually, collectively, or in any combination, and each of them by 7 whatever names each might be known; 8 a. 9 Inc., True Count Staffing Inc., Prime Consulting LLC, TAS 2019 “Corporate Defendants” means Consumer Advocacy Center 10 LLC, Horizon Consultants LLC, and First Priority LLC, collectively, 11 or in any combination, and their successors and assigns, and each of 12 them by any other names by which they might be known, including 13 South Coast Financial Center, Direct Account Services, Financial 14 Loan Advisors, Account Preparation Services, Administrative 15 Financial, Tangible Savings Solutions, Coastal Shores Financial 16 Group, First Choice Financial Centre (a/k/a First Choice Financial 17 Center), Administrative Account Services, Primary Account 18 Solutions, Prime Document Services, Financial Accounting Center, 19 Doc Management Solutions, First Priority LLC, ALW Loans, 20 Administrative Accounting Center, Best Choice Financial Center, 21 First Document Services, Global Direct Accounting Solutions, 22 Keystone Document Center, Pacific Palm Financial Group, Pacific 23 Shores Advisory, Sequoia Account Management, Signature Loan 24 Solutions, Yellowstone Account Services, ClearStudentLoanDebt, 25 Clear Student Loan Debt, Trusted Account Services, Premier Student 26 Loan Center, and Priority Account Management; 27 28 4 STIPULATED FINAL JUDGMENT AND ORDER 1 b. 2 Kaine Wen, a/k/a Wenting Kaine Dai, Wen-Ting Dai, Wen Ting Dai, 3 Kaine Dai, and Kaine Wen Dai; and Tuong Nguyen, a/k/a Tom 4 Nelson, collectively, or in any combination, and each of them by any 5 other names by which they might be known; 6 c. 7 Prime Consulting LLC, TAS 2019 LLC, Horizon Consultants LLC, 8 and First Priority LLC, collectively, or in any combination, and their 9 successors and assigns; 10 d. “Individual Defendants” means Albert Kim, a/k/a Albert King; “Receivership Defendants” means True Count Staffing Inc., “Relief Defendants” means: 11 i. 12 Solutions Inc.; Hold the Door, Corp.; TN Accounting Inc.; Mice 13 and Men LLC; 1st Generation Holdings, LLC; and Anan 14 Enterprise, Inc., collectively, or in any combination, and their 15 successors and assigns, and each of them by any other names by 16 which they might be known; and 17 ii. 18 known. Infinite Management Corp., f/k/a Infinite Management Sarah Kim, and any other names by which she might be 19 e. 20 Mice and Men LLC, and their successors and assigns, and each of 21 them by any other names by which they might be known. 22 9. “Settling Relief Defendants” means Hold the Door, Corp. and “Debt-Relief Service” means any program or service represented, 23 directly or by implication, to renegotiate, settle, or in any way alter the terms of 24 payment or other terms of the debt between a consumer and one or more unsecured 25 creditors or debt collectors, including but not limited to, a reduction in the balance, 26 interest rate, or fees owed by a consumer to an unsecured creditor or debt collector. 27 28 5 STIPULATED FINAL JUDGMENT AND ORDER 1 2 3 10. “Effective Date” means the date on which this Order is entered by the 11. “Enforcement Director” means the Assistant Director of the Office of Court. 4 Enforcement for the Bureau of Consumer Financial Protection, or his or her 5 delegate. 6 12. “Person” means an individual, partnership, company, corporation, 7 association (incorporated or unincorporated), trust, estate, cooperative 8 organization, or other entity; 9 13. “Plaintiffs” means the Bureau of Consumer Financial Protection, the 10 State of Minnesota, the State of North Carolina, and the People of the State of 11 California, collectively, or in any combination. 12 14. “Receiver” means Thomas W. McNamara. 13 15. “Related Consumer Action” means a private action by or on behalf of 14 one or more consumers or an enforcement action by another governmental agency 15 brought against any Settling Relief Defendant based on substantially the same facts 16 as described in the Amended Complaint. 17 18 16. “States” means the State of Minnesota, the State of North Carolina, and the People of the State of California. 19 MONETARY PROVISIONS 20 I 21 Order to Pay Redress 22 23 24 It is FURTHER ORDERED that: 17. A judgment for monetary relief is entered in favor of Plaintiffs and against Settling Relief Defendants as set forth below: 25 26 27 28 6 STIPULATED FINAL JUDGMENT AND ORDER 1 a. 2 and severally liable for the amount of $1,638,687, such amount being 3 for the purpose of providing redress to Affected Consumers; and 4 b. 5 and severally liable for the amount of $5,041,069, such amount being 6 for the purpose of providing redress to Affected Consumers. 7 18. Settling Relief Defendant Hold the Door, Corp. shall be jointly Settling Relief Defendant Mice and Men LLC shall be jointly However, full payment of each Settling Relief Defendant’s portion of 8 this judgment set forth in Paragraph 17 will be suspended, based on each Settling 9 Relief Defendant’s inability to pay, upon each Settling Relief Defendant’s 10 satisfaction of the obligations in Paragraphs 19-22 of this Section, Paragraph 33 of 11 Section III, and subject to Section II of this Order. 12 19. Settling Relief Defendants hereby grant to the Bureau all rights and 13 claims they have to all Assets subject to the asset freeze imposed by the 14 Preliminary Injunction entered on November 15, 2019 (ECF 103), and all Assets 15 identified in Attachment A and Attachment B. Within 10 business days from 16 receipt of a copy of this Order by any means, including but not limited to via 17 facsimile or email, the financial institutions identified in Attachment A shall 18 transfer to the Bureau or its designated agent all funds held in the accounts listed in 19 Attachment A by wire transfer to the Bureau or the Bureau’s agent according to the 20 Bureau’s wiring instructions. 21 20. To the extent they have not already done so, Settling Relief 22 Defendants are ordered to transfer and relinquish to the Receiver, or to its 23 designated agent, possession, custody, and control of the following Assets within 7 24 days of entry of this Order, unless otherwise stated: dominion and all legal and 25 equitable right, title, and interest in, as well as any accounts receivable from, the 26 following entities: Settling Relief Defendants, including their successors, assigns, 27 28 7 STIPULATED FINAL JUDGMENT AND ORDER 1 affiliates, or subsidiaries, and each of them by whatever names each might be 2 known. 3 21. Settling Relief Defendants shall cooperate fully with the Receiver and 4 shall execute any instrument or document presented by the Receiver, and take any 5 other actions the Receiver deems necessary or appropriate to effect the transfers 6 required by Paragraph 20. All property set forth in Paragraph 20 shall constitute 7 Assets of the receivership estate. 8 9 22. Settling Relief Defendants hereby grant to the Bureau all rights and claims they have to any Assets not subject to Paragraph 19 that are currently in the 10 possession, custody, or control of the Receiver, including but not limited to any 11 such Assets identified in Paragraph 20, and shall forfeit any rights and claims to 12 the funds in the receivership estate, including but not limited to: all funds held, 13 obtained, or to be obtained by the Receiver since the inception of the receivership 14 whether through this Order or otherwise. 15 23. The suspension of the monetary judgment in Paragraph 18 shall not 16 affect the Receiver’s ability to pursue recovery of funds from any third parties, 17 including family members of Defendants, to satisfy all or a portion of the full 18 monetary judgment entered in Paragraph 17. Settling Relief Defendants shall 19 remain jointly and severally liable for full payment of this judgment to the extent 20 that funds to satisfy all or a portion of this judgment are able to be recovered from 21 third parties by the Receiver acting on behalf of the Receivership Defendants. 22 24. With regard to any redress that Settling Relief Defendants pay under 23 this Section, if Settling Relief Defendants receive, directly or indirectly, any 24 reimbursement or indemnification from any source, including but not limited to 25 payment made under any insurance policy, or if Settling Relief Defendants secure 26 a tax deduction or tax credit with regard to any federal, state, or local tax, Settling 27 28 8 STIPULATED FINAL JUDGMENT AND ORDER 1 Relief Defendants must: (a) immediately notify the Enforcement Director and 2 States in writing, and (b) within 10 days of receiving the funds or monetary 3 benefit, Settling Relief Defendants must transfer the full amount of such funds or 4 monetary benefit (Additional Payment) to the Bureau or to the Bureau’s agent 5 according to the Bureau’s wiring instructions. After the Bureau receives the 6 Additional Payment, the amount of the suspended judgment referenced in 7 Paragraph 18 will be reduced by the amount of the Additional Payment and the 8 Additional Payment will be applied toward satisfaction of the monetary judgment 9 entered in Paragraph 17. 10 25. Any funds received by the Bureau in satisfaction of this judgment will 11 be deposited into a fund or funds administered by the Bureau or to the Bureau’s 12 agent according to applicable statutes and regulations to be used for redress for 13 Affected Consumers, including but not limited to refund of moneys, restitution, 14 damages or other monetary relief, and for any attendant expenses for the 15 administration of any such redress. 16 26. If the Bureau determines, in its sole discretion, that providing redress 17 to consumers is wholly or partially impracticable or if funds remain after the 18 administration of redress is completed, the Bureau will deposit any remaining 19 funds in the U.S. Treasury as disgorgement. Settling Relief Defendants will have 20 no right to challenge the Bureau’s choice of remedies under this Section, and will 21 have no right to contest the manner of distribution chosen by the Bureau. 22 23 27. Payment of redress to any Affected Consumer under this Order may not be conditioned on that Affected Consumer waiving any right. 24 25 26 27 28 9 STIPULATED FINAL JUDGMENT AND ORDER 1 II 2 Misrepresentation or Omission Regarding Financial Condition or Non- 3 Compliance with Order to Pay Redress 4 5 It is FURTHER ORDERED that: 28. The suspension of the monetary judgment entered in Section I of this 6 Order is expressly premised on the truthfulness, accuracy, and completeness of 7 Settling Relief Defendants’ sworn financial statements and supporting documents, 8 which each Settling Relief Defendant asserts are truthful, accurate, and complete, 9 and which include: 10 a. 11 attachments, signed on November 1, 2019, and submitted to the 12 Bureau on or about November 4, 2019, and supplemented on 13 December 5, 2019, and August 20, 2020; and 14 b. 15 attachments, signed on June 22, 2020, and submitted to the Bureau on 16 or about June 25, 2020. 17 29. Financial Statement of Hold the Door, Corp., including all Financial Statement of Mice and Men LLC, including all If upon motion by any Plaintiff, the Court determines that any Settling 18 Relief Defendant has failed to disclose any material Asset or that any of their 19 financial statements contain any material misrepresentation or omission, including 20 materially misstating the value of any Asset, the Court shall terminate the 21 suspension of the monetary judgment for that Settling Relief Defendant entered in 22 Section I and without further adjudication, shall reinstate the judgment entered in 23 Section I of this Order and the full judgment set forth in that Section with respect 24 to that Settling Relief Defendant shall be immediately due and payable, less any 25 amounts paid to the Bureau under Section I of this Order by that Settling Relief 26 Defendant. 27 28 10 STIPULATED FINAL JUDGMENT AND ORDER 1 30. If the Court terminates the suspension of the monetary judgment 2 under this Section, the Bureau will be entitled to interest on the judgment, 3 computed from the date of entry of this Order, at the rate prescribed by 28 U.S.C. 4 § 1961, as amended, on any outstanding amounts not paid. 5 31. Provided, however, that in all other respects this Order shall remain in 6 full force and effect unless otherwise ordered by the Court; and, provided further, 7 that proceedings instituted under this Section would be in addition to, and not in 8 lieu of any other civil or criminal remedies as may be provided by law, including 9 any other proceedings that Plaintiffs may initiate to enforce this Order. 10 III 11 Additional Monetary Provisions 12 13 It is FURTHER ORDERED that: 32. In the event of any default on Settling Relief Defendants’ obligations 14 to make payment under this Order, interest, computed under 28 U.S.C. § 1961, as 15 amended, will accrue on any outstanding amounts not paid from the date of default 16 to the date of payment, and will immediately become due and payable by the 17 defaulting Settling Relief Defendant. 18 33. Settling Relief Defendants relinquish all dominion, control, and title 19 to the funds and all other Assets transferred or paid under this Order to the fullest 20 extent permitted by law and no part of the funds or other Assets may be returned to 21 any Settling Relief Defendant. 22 34. The facts alleged in the Amended Complaint will be taken as true and 23 given collateral estoppel effect, without further proof, in any proceeding based on 24 the entry of the Order, or in any subsequent civil litigation by or on behalf of the 25 Plaintiffs, including in a proceeding to enforce their rights to any payment or 26 monetary judgment under this Order, such as a non-dischargeability complaint in 27 28 11 STIPULATED FINAL JUDGMENT AND ORDER 1 2 any bankruptcy case. 35. The facts alleged in the Amended Complaint establish all elements 3 necessary to sustain an action by the Plaintiffs under section 523(a)(2)(A) of the 4 Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and for such purposes this Order will 5 have collateral estoppel effect against each Settling Relief Defendant, even in such 6 Defendant’s capacity as debtor-in-possession. 7 36. Under 31 U.S.C. § 7701, Settling Relief Defendants, unless they 8 already have done so, must furnish to Plaintiffs any taxpayer-identifying numbers 9 associated with them or their Assets, which may be used for purposes of collecting 10 11 and reporting on any delinquent amount arising out of this Order. 37. Within 30 days of the entry of a final judgment, order, or settlement in 12 a Related Consumer Action, Settling Relief Defendants must notify the 13 Enforcement Director of the final judgment, order, or settlement in writing. That 14 notification must indicate the amount of redress, if any, that the Settling Relief 15 Defendant paid or is required to pay to consumers and describe the consumers or 16 classes of consumers to whom that redress has been or will be paid. 17 IV 18 Lifting of Asset Freeze 19 20 It is FURTHER ORDERED that: 38. The freeze on the Assets of Settling Relief Defendants is modified to 21 permit the payments and other transfers of Assets identified in Sections I and III of 22 this Order. Upon completion of all payments and other obligations identified in 23 Sections I and III of this Order, the freeze of the Settling Relief Defendants’ Assets 24 pursuant to the Preliminary Injunction entered on November 15, 2019 (ECF 103), 25 shall be dissolved. 26 27 28 12 STIPULATED FINAL JUDGMENT AND ORDER 1 COMPLIANCE PROVISIONS 2 V 3 Notices 4 5 It is FURTHER ORDERED that: 39. Unless otherwise directed in writing by the Bureau, Settling Relief 6 Defendants must provide all submissions, requests, communications, or other 7 documents relating to this Order in writing, with the subject line, “CFPB, et al., v. 8 CAC, et al., Case No. 8:19-cv-01998-MWF-KS” and send them by overnight 9 courier or first-class mail to the below address and contemporaneously by email to 10 Enforcement_Compliance@cfpb.gov: 11 Assistant Director for Enforcement 12 Bureau of Consumer Financial Protection 13 ATTENTION: Office of Enforcement 14 1700 G Street, N.W. 15 Washington, D.C. 20552 16 40. Unless otherwise directed by a representative of the State of 17 Minnesota in writing, all submissions to the State of Minnesota pursuant to this 18 Order must be sent by overnight courier or first-class mail to the below address and 19 contemporaneously by email to evan.romanoff@ag.state.mn.us: 20 Evan Romanoff, Assistant Attorney General 21 Office of the Minnesota Attorney General 22 445 Minnesota Street, Suite 1200 23 St. Paul, Minnesota 55101 24 25 41. 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 26 27 28 13 STIPULATED FINAL JUDGMENT AND ORDER 1 Order must be sent by overnight courier or first-class mail to the below address and 2 contemporaneously by email to lweaver@ncdoj.gov: 3 M. Lynne Weaver, Special Deputy Attorney General 4 North Carolina Department of Justice 5 114 W. Edenton Street 6 Raleigh, North Carolina 27603 7 42. Unless otherwise directed by the State of California in writing, all 8 submissions to the State of California pursuant to this Order must be sent by 9 overnight courier or first-class mail to the below address and contemporaneously 10 by email to christina.tusan@lacity.org: 11 Christina Tusan 12 Supervising Deputy City Attorney 13 Los Angeles City Attorney’s Office 14 200 N. Main Street, 5th Floor 15 Los Angeles, CA 90012 16 43. The Enforcement Director may, in his or her discretion, modify any 17 non-material requirements of this Order (e.g., reasonable extensions of time and 18 changes to reporting requirements) if he or she determines good cause justifies the 19 modification. Any such modification by the Enforcement Director must be in 20 writing. 21 VI 22 Cooperation with Plaintiffs 23 24 It is FURTHER ORDERED that: 44. Settling Relief Defendants must cooperate fully to help Plaintiffs 25 determine the identity, location, and contact information of any Defendant and any 26 Person who might have contact information for any Defendant. Settling Relief 27 28 14 STIPULATED FINAL JUDGMENT AND ORDER 1 Defendants 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 45. Settling Relief Defendants must cooperate fully to help Plaintiffs 4 determine the identity and location of, and the amount of injury sustained by, each 5 Affected Consumer. Settling Relief Defendants must provide such information in 6 their or their agents’ possession or control within 14 days of receiving a written 7 request from any Plaintiff. 8 VII 9 Compliance Monitoring 10 It is FURTHER ORDERED that, to monitor Settling Relief Defendants’ 11 compliance with this Order, including the financial representations upon which 12 part of the judgment was suspended: 13 46. Within 14 days of receipt of a written request from any Plaintiff, each 14 Settling Relief Defendant must submit additional Compliance Reports or other 15 requested information, which must be made under penalty of perjury; provide 16 sworn testimony; or produce documents. 17 47. For purposes of this Section, Plaintiffs may communicate directly 18 with each Settling Relief Defendant, unless the Settling Relief Defendant retains 19 counsel related to these communications. 20 48. Each Settling Relief Defendant must permit Plaintiffs’ representatives 21 to interview any employee or other Person affiliated with the Settling Relief 22 Defendant who has agreed to such an interview. The Person interviewed may have 23 counsel present. Nothing in this Order will limit the Bureau’s lawful use of civil 24 investigative demands under 12 C.F.R. § 1080.6 or any Plaintiff’s use of other 25 compulsory process. 26 /// 27 28 15 STIPULATED FINAL JUDGMENT AND ORDER 1 VIII 2 Receivership 3 It is FURTHER ORDERED that: 4 49. 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 IV, 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 Court. 11 50. The Receiver shall promptly take all steps necessary to liquidate any 12 of Settling Relief Defendants’ Assets transferred under Paragraph 20 using any 13 commercially reasonable means, including auction and/or private sale, and all such 14 sales shall be deemed authorized and approved under 28 U.S.C. § 2004 without 15 further notice, hearing, or court order. After such liquidation, the Receiver shall 16 remit the net proceeds to the Bureau or its designated representative as payment 17 toward the monetary judgments entered against Settling Relief Defendants within 18 21 days of each such sale or liquidation. 19 51. The Receiver and his representatives shall continue to be entitled to 20 reasonable compensation for the performance of their duties pursuant to this Order 21 from the Assets of the Receivership Defendants. The Receiver and his 22 representatives shall not increase their hourly rates without prior approval of the 23 Court. 24 /// 25 /// 26 /// 27 28 16 STIPULATED FINAL JUDGMENT AND ORDER 1 IX 2 Retention of Jurisdiction 3 4 It is FURTHER ORDERED that: 52. The Court will retain jurisdiction of this matter for the purpose of 5 enforcing this Order. 6 It is SO ORDERED, this eighth day of September, 2020. 7 8 9 ____________________________________ Michael W. Fitzgerald United States District Judge 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 17 STIPULATED FINAL JUDGMENT AND ORDER ATTACHMENT A Attachment A to Order List of Assets Transferred Pursuant to Paragraph 19 of the Order Any and all Assets at the following financial institutions and in the following accounts: 1. UBS Financial Services Inc.: a. account number ending in 5783 in the name of Mice and Men, LLC; and 2. Wells Fargo Bank, N.A.: a. account number ending in 7284 in the name of Hold the Door Corp. Attachment A to Order ATTACHMENT B Attachment B to Order Relief Defendant Hold the Door, Corp. grants to the Bureau all rights and claims it has to the following Assets pursuant to Paragraph 19 of the Order: 1. The following vehicle: a. 2017 Lexus GS-F, white, VIN ending in 2471, owned by Hold the Door, Corp. and Defendant Kaine Wen, and registered to Judy Dai. 2. The following Assets: a. All Assets identified at item no. 23 on the Financial Statement of Hold the Door, Corp., including all attachments, signed on November 1, 2019, and submitted to the Bureau on or about November 4, 2019, and supplemented on December 5, 2019, and August 20, 2020, including but not limited to the following items: i. Audemars Piguet Royal Oak Offshore watch in black ($28,500 acquisition cost), owned by Hold the Door, Corp. and Defendant Kaine Wen; ii. Audemars Piguet Royal Oak Offshore watch in white ($58,000 acquisition cost), owned by Hold the Door, Corp. and Defendant Kaine Wen; iii. 3.584 carats round brilliant diamond AGS 104098736001 ($240,000 acquisition cost), owned by Hold the Door, Corp. and Defendant Kaine Wen; iv. Three Maurits Cornelis Escher prints (acquisition value of about $32,500, $32,500, and $39,500, respectively), owned by Hold the Door, Corp. and Defendant Kaine Wen; and v. All furniture, electronics, and artwork owned by Hold the Door, Corp. and Defendant Kaine Wen. Attachment B to Order

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