Bureau of Consumer Financial Protection et al v. Consumer Advocacy Center Inc. et al, No. 8:2019cv01998 - Document 359 (C.D. Cal. 2022)

Court Description: STIPULATED FINAL JUDGMENT AND ORDER AS TO DEFENDANT TAS 2019 LLC 357 by Judge Michael W. Fitzgerald. A judgment for monetary relief is entered in favor of Plaintiffs andagainst Settling Defendant. Settling Defendant is liable, jointly and severally, in the amount of $2,866,314.24, for the purpose of providing redress to Affected Consumers. (iv)

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Bureau of Consumer Financial Protection et al v. Consumer Advocacy Center Inc. et al Doc. 359 1 2 3 4 5 6 7 8 9 10 UNITED STATES DISTRICT COURT 11 CENTRAL DISTRICT OF CALIFORNIA 12 13 Bureau of Consumer Financial Protection, et al., 14 Plaintiffs, 15 16 17 18 19 CASE NO. 8:19-cv-01998 MWF (KSx) STIPULATED FINAL JUDGMENT AND ORDER AS TO DEFENDANT TAS 2019 LLC v. Consumer Advocacy Center Inc., d/b/a Premier Student Loan Center, et al., Court: Hon. Michael W. Fitzgerald Courtroom 5A Defendants. 20 21 22 23 STIPULATED FINAL JUDGMENT AND ORDER AS TO DEFENDANT TAS 2019 LLC Plaintiffs the Bureau of Consumer Financial Protection (Bureau), the State 24 of Minnesota, the State of North Carolina, and the People of the State of California 25 (collectively, Plaintiffs) commenced this civil action on October 21, 2019, filed an 26 amended complaint on February 24, 2020, a second amended complaint on April 27 28 1 STIPULATED FINAL JUDGMENT AND ORDER Dockets.Justia.com 1 20, 2021, and a third amended complaint (Third Amended Complaint) on August 2 5, 2021, to obtain permanent injunctive relief, damages, rescission or reformation 3 of contracts, refunds of moneys paid, restitution, disgorgement or compensation for 4 unjust enrichment, civil money penalties, and other monetary and equitable relief 5 from: (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 7 Consulting LLC, d/b/a Financial Preparation Services; TAS 2019 LLC, d/b/a 8 Trusted Account Services; Horizon Consultants LLC; First Priority LLC, d/b/a 9 Priority Account Management; Albert Kim; Kaine Wen in his individual capacity 10 and as trustee of the Kaine Wen 2017 Trust; and Tuong Nguyen; and (2) Relief 11 Defendants Infinite Management Corp., f/k/a Infinite Management Solutions Inc.; 12 Hold the Door, Corp.; TN Accounting Inc.; Mice and Men LLC; Sarah Kim; 1st 13 Generation Holdings, LLC; Anan Enterprise, Inc.; and Judy Dai in her individual 14 capacity and as trustee of the Judy Dai 2017 Trust. 15 The Third Amended Complaint alleges violations of sections 1031(a) and 16 1036(a) of the Consumer Financial Protection Act of 2010, 12 U.S.C. §§ 5531(a), 17 5536(a); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 18 15 U.S.C. § 6102(c)(2), based on alleged violations of the Telemarketing Sales 19 Rule, 16 C.F.R. pt. 310; the Minnesota Prevention of Consumer Fraud Act, Minn. 20 Stat. §§ 325F.68-.694; the Minnesota Uniform Deceptive Trade Practices Act, 21 Minn. Stat. §§ 325D.43-.48; the North Carolina Debt Adjusting Act, N.C. Gen. 22 Stat. § 14-423 et seq.; the North Carolina Telephonic Seller Registration Act, N.C. 23 Gen. Stat. § 66-260 et seq.; the North Carolina Unfair and Deceptive Practices Act, 24 N.C. Gen. Stat. § 75-1.1; and the California Unfair Competition Law, Cal. Bus. & 25 Prof. Code § 17200 et seq. in connection with the above-named defendants’ 26 marketing and sale of debt-relief services. The Third Amended Complaint also 27 28 2 STIPULATED FINAL JUDGMENT AND ORDER 1 includes claims for avoidance of fraudulent transfers under the Federal Debt 2 Collection Procedures Act, 28 U.S.C. §§ 3001-3308, and the California Uniform 3 Voidable Transactions Act, Cal Civ. Code §§ 3439-3439.14. 4 The Plaintiffs and Defendant TAS 2019 LLC (Settling Defendant) agree to 5 entry of this Stipulated Final Judgment and Order (Order), without adjudication of 6 any issue of fact or law, to settle and resolve all matters in dispute between them 7 arising from the conduct alleged against Settling Defendant in the Third Amended 8 Complaint. 9 THEREFORE, IT IS ORDERED: 10 FINDINGS 11 12 1. This Court has jurisdiction over the parties and the subject matter of this action. 13 2. Settling Defendant neither admits nor denies the allegations in the 14 Third Amended Complaint, except as specifically stated herein. For purposes of 15 this Order, Settling Defendant admits the facts necessary to establish the Court’s 16 jurisdiction over Settling Defendant and the subject matter of this particular action, 17 Bureau of Consumer Financial Protection, et al., v. Consumer Advocacy Center 18 Inc., et al., Case No. 8:19-cv-01998 MWF(KS). 19 3. Settling Defendant waives all rights to seek judicial review or 20 otherwise challenge or contest the validity of this Order and any claim Settling 21 Defendant may have under the Equal Access to Justice Act, 28 U.S.C § 2412, 22 concerning the prosecution of this action to the date of this Order. Each Party 23 agrees to bear its own costs and expenses, including, without limitation, attorneys’ 24 fees. 25 4. Entry of this Order is in the public interest. 26 27 28 3 STIPULATED FINAL JUDGMENT AND ORDER 1 2 3 DEFINITIONS The following definitions apply to this Order: 5. “Affected Consumers” includes any consumer who paid or transferred 4 funds to Settling Defendant or its officers, agents, servants, employees, or 5 attorneys from September 1, 2019, to October 23, 2019, for or related to any Debt- 6 Relief Service offered by Defendants. 7 6. “Assets” means any legal or equitable interest in, right to, or claim to 8 any real, personal, or intellectual property owned or controlled by, or held, in 9 whole or in part for the benefit of, or subject to access by any Defendant or Relief 10 Defendant, wherever located, whether in the United States or abroad. This 11 includes, but is not limited to, chattel, goods, instruments, equipment, fixtures, 12 general intangibles, effects, leaseholds, contracts, mail or other deliverables, shares 13 of stock, commodities, futures, inventory, checks, notes, accounts, credits, 14 receivables (as those terms are defined in the Uniform Commercial Code), funds, 15 cash, and trusts. 16 7. “Assist[ing] Others” includes, but is not limited to: 17 a. consulting in any form whatsoever; 18 b. providing paralegal or administrative support services; 19 c. performing customer service functions, including but not limited to, 20 21 receiving or responding to consumer complaints; d. formulating or providing, or arranging for the formulation or 22 provision of, any advertising or marketing material, including but not 23 limited to, any telephone sales script, direct mail solicitation, or the 24 text of any Internet website, email, or other electronic communication 25 or advertisement; 26 27 28 4 STIPULATED FINAL JUDGMENT AND ORDER 1 e. formulating or providing, or arranging for the formulation or 2 provision of, any marketing support material or service, including but 3 not limited to, web or Internet Protocol addresses or domain name 4 registration for any Internet websites, affiliate marketing services, or 5 media placement services; 6 f. providing names of, or assisting in the generation of, potential 7 customers; 8 g. performing marketing, billing, or payment services of any kind; 9 and 10 h. acting or serving as an owner, officer, director, manager, or principal 11 12 of any entity. 8. “Bankruptcy Proceeding” means In re Consumer Advocacy Center 13 Inc., Case No. 19-10655, currently pending in the United States Bankruptcy Court, 14 Southern District of Florida, Fort Lauderdale Division. 15 9. “Bureau” means the Bureau of Consumer Financial Protection. 16 10. “Consumer Financial Product or Service” is synonymous in meaning 17 and equal in scope to the definition of the term in the CFPA, 12 U.S.C. § 5481(5), 18 and, subject to applicable restrictions contained in the CFPA, includes but is not 19 limited to: 20 a. providing financial advisory services to consumers on individual 21 consumer financial matters or relating to proprietary financial 22 products or services, including providing credit counseling to any 23 consumer or providing services to assist a consumer with debt 24 management or debt settlement, modifying the terms of any 25 extension of credit, or avoiding foreclosure; and 26 27 28 5 STIPULATED FINAL JUDGMENT AND ORDER 1 b. engaging in deposit-taking activities, transmitting or exchanging 2 funds, or otherwise acting as a custodian of funds or any financial 3 instrument for use by or on behalf of a consumer. 4 11. “Defendants” means Corporate Defendants and Individual 5 Defendants, individually, collectively, or in any combination, and each of them by 6 whatever names each might be known; 7 a. 8 Inc., True Count Staffing Inc., Prime Consulting LLC, TAS 2019 9 LLC, Horizon Consultants LLC, and First Priority LLC, collectively, 10 or in any combination, and their successors and assigns, and each of 11 them by any other names by which they might be known, including 12 South Coast Financial Center, Direct Account Services, Financial 13 Loan Advisors, Account Preparation Services, Administrative 14 Financial, Tangible Savings Solutions, Coastal Shores Financial 15 Group, First Choice Financial Centre (a/k/a First Choice Financial 16 Center), Administrative Account Services, Primary Account 17 Solutions, Prime Document Services, Financial Accounting Center, 18 Doc Management Solutions, ALW Loans, Administrative Accounting 19 Center, Best Choice Financial Center, First Document Services, 20 Global Direct Accounting Solutions, Keystone Document Center, 21 Pacific Palm Financial Group, Pacific Shores Advisory, Sequoia 22 Account Management, Signature Loan Solutions, Yellowstone 23 Account Services, ClearStudentLoanDebt, Clear Student Loan Debt, 24 Trusted Account Services, Premier Student Loan Center, and Priority 25 Account Management; “Corporate Defendants” means Consumer Advocacy Center 26 27 28 6 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, in his individual capacity and as 4 trustee of the Kaine Wen 2017 Trust; and Tuong Nguyen, a/k/a Tom 5 Nelson, collectively, or in any combination, and each of them by any 6 other names by which they might be known; 7 c. 8 Prime Consulting LLC, TAS 2019 LLC, Horizon Consultants LLC, 9 and First Priority LLC, collectively, or in any combination, and their “Individual Defendants” means Albert Kim, a/k/a Albert King; “Receivership Defendants” means True Count Staffing Inc., 10 successors and assigns; 11 d. “Relief Defendants” means: 12 i. 13 Solutions Inc.; Hold the Door, Corp.; TN Accounting Inc.; Mice 14 and Men LLC; 1st Generation Holdings, LLC; and Anan 15 Enterprise, Inc., collectively, or in any combination, and their 16 successors and assigns, and each of them by any other names by 17 which they might be known; and 18 ii. 19 as trustee of the Judy Dai 2017 Trust, and any other names by 20 which each of them might be known. Infinite Management Corp., f/k/a Infinite Management Sarah Kim and Judy Dai, in her individual capacity and 21 e. “Settling Defendant” means TAS 2019 LLC, d/b/a Trusted Account 22 Services, and its successors and assigns, and each of them by any 23 other names by which they might be known. 24 12. “Debt-Relief Service” means any program or service represented, 25 directly or by implication, to renegotiate, settle, or in any way alter the terms of 26 payment or other terms of the debt between a consumer and one or more 27 28 7 STIPULATED FINAL JUDGMENT AND ORDER 1 unsecured creditors or debt collectors, including but not limited to, a reduction in 2 the balance, interest rate, or fees owed by a consumer to an unsecured creditor or 3 debt collector. 4 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 5 6 Court. 7 Enforcement for the Bureau of Consumer Financial Protection, or his or her 8 delegate. 9 15. “Person” means an individual, partnership, company, corporation, 10 association (incorporated or unincorporated), trust, estate, cooperative 11 organization, or other entity. 12 16. “Plaintiffs” means the Bureau of Consumer Financial Protection, the 13 State of Minnesota, the State of North Carolina, and the People of the State of 14 California, collectively, or in any combination. 15 17. “Receiver” means Thomas W. McNamara. 16 18. “Related Consumer Action” means a private action by or on behalf of 17 one or more consumers or an enforcement action by another governmental agency 18 brought against Settling Defendant based on substantially the same facts as 19 described in the Third Amended Complaint. 20 CONDUCT RELIEF 21 I 22 Permanent Ban on Telemarketing and Offering or Selling Debt-Relief 23 Services 24 25 It is ORDERED that: 19. Settling Defendant, whether acting directly or indirectly, is 26 27 28 8 STIPULATED FINAL JUDGMENT AND ORDER 1 permanently restrained from: 2 a. 3 telemarketing any Consumer Financial Product or Service; 4 b. 5 promoting, offering for sale, selling, or providing any Debt-Relief 6 Service; and 7 c. 8 holding any ownership interest in, providing services to, or working in 9 any capacity for any Person engaged in or assisting in advertising, 10 marketing, promoting, offering for sale, selling, or providing any 11 Debt-Relief Service. 12 participating in telemarketing or Assisting Others engaged in 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. 13 II 14 Prohibited Misrepresentations and Other Conduct 15 16 It is FURTHER ORDERED that: 20. Settling Defendant and its officers, agents, servants, employees, and 17 attorneys, and all other Persons in active concert or participation with them, who 18 have actual notice of this Order, whether acting directly or indirectly, in connection 19 with the advertising, marketing, promotion, offering for sale, sale, or performance 20 of any Consumer Financial Product or Service, may not misrepresent, or Assist 21 Others in misrepresenting, expressly or impliedly: 22 a. 23 service, including but not limited to, the amount of savings a the benefits that a consumer will receive from the product or 24 25 26 27 28 9 STIPULATED FINAL JUDGMENT AND ORDER 1 consumer will receive from purchasing, using, or enrolling in the 2 Consumer Financial Product or Service; 3 b. 4 Financial Product or Service; 5 c. 6 exchange, or repurchase policy of the Consumer Financial Product or 7 Service, including but not limited to, the likelihood of a consumer 8 obtaining a full or partial refund or the circumstances in which a full 9 or partial refund will be granted to the consumer; and the time required to achieve benefits from the Consumer any aspect of the nature or terms of a refund, cancellation, 10 d. 11 limitation, or condition of the Consumer Financial Product or Service. the total costs or any other material term, fact, restriction, 12 III 13 State Injunctive Provisions 14 15 It is FURTHER ORDERED that: 21. Settling Defendant and its officers, agents, servants, employees, and 16 attorneys, and all other Persons in active concert or participation with them who 17 receive actual notice of this Order, shall be permanently restrained and enjoined 18 from violating: 19 a. 20 Stat. § 325D.44; 21 b. the Minnesota Consumer Fraud Act, Minn. Stat. § 325F.69; and 22 c. the Minnesota Debt Settlement Services Act, Minn. Stat. § 23 332B. 24 25 22. the Minnesota Uniform Deceptive Trade Practices Act, Minn. Settling Defendant and its officers, agents, servants, employees and attorneys, and those Persons in active concert or participation with them who 26 27 28 10 STIPULATED FINAL JUDGMENT AND ORDER 1 receive actual notice of this Order, shall be permanently restrained and enjoined 2 from violating: 3 a. 4 423, et seq.; 5 b. 6 Gen. Stat. § 75-1.1; and 7 c. 8 Gen. Stat. § 66-260, et seq. 9 23. the North Carolina Debt Adjusting Act, N.C. Gen. Stat. § 14- the North Carolina Unfair and Deceptive Practices Act, N.C. the North Carolina Telephonic Seller Registration Act, N.C. Under the Court’s inherent equitable powers and as authorized by 10 California Business and Professions Code section 17203, this Court is empowered 11 to “make such orders or judgments . . . as may be necessary to prevent the use or 12 employment by any person of any practice which constitutes unfair 13 competition . . .” Cal. Bus & Prof Code § 17203. Accordingly, Settling Defendant 14 and its officers, agents, servants, employees, and attorneys, and all other persons in 15 active concert or participation with them, whether acting directly or indirectly, are 16 permanently restrained from any of the following: 17 a. 18 17200, et seq., through unlawful, fraudulent and/or unfair acts or 19 practices including but not limited to: violating California Business and Professions Code section 20 i. 21 seq., the California Check Sellers, Bill Payers and Proraters 22 Law, by acting as a check seller, bill payer, or prorater within 23 the State of California without first obtaining a license from the 24 California Commissioner of Business Oversight; and 25 ii. 26 seq., the California Student Loan Servicing Act, by engaging in Violating California Financial Code section 12000, et Violating California Financial Code section 28100, et 27 28 11 STIPULATED FINAL JUDGMENT AND ORDER 1 the business of servicing student loans in California without first 2 obtaining a license as required under the Act. 3 IV 4 Customer Information 5 6 It is FURTHER ORDERED that: 24. Settling Defendant and its officers, agents, servants, employees, and 7 attorneys, and all other Persons in active concert or participation with them, who 8 receive actual notice of this Order, whether acting directly or indirectly, may not: 9 a. disclose, use, or benefit from customer information, including 10 the name, address, telephone number, email address, social security 11 number, other identifying information, or any data that enables access 12 to a customer’s account (including a credit card, bank account, or 13 other financial account), that Defendants obtained before the 14 Effective Date in connection with the offering or providing of Debt- 15 Relief Services; and 16 b. 17 collect payment from any consumer who purchased or agreed to 18 purchase a Debt-Relief Service from any Defendant. 19 20 25. 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. 21 MONETARY PROVISIONS 22 V 23 Order to Pay Redress 24 25 26 It is FURTHER ORDERED that: 26. A judgment for monetary relief is entered in favor of Plaintiffs and against Settling Defendant. Settling Defendant is liable, jointly and severally, in 27 28 12 STIPULATED FINAL JUDGMENT AND ORDER 1 the amount of $2,866,314.24, for the purpose of providing redress to Affected 2 Consumers. 3 27. Within 14 days of the Effective Date and as set forth in Paragraph 61, 4 Settling Defendant must pay to the Bureau $2,866,314.24 in full satisfaction of the 5 judgment as ordered in Paragraph 26 of this Section. 6 28. Except as necessary to effectuate the transfers required by Paragraph 7 62, Settling Defendant hereby grants to the Bureau all rights and claims it has to all 8 Assets subject to the asset freeze imposed by the Preliminary Injunction entered on 9 November 15, 2019 (ECF 103), including all Assets that Settling Defendant has 10 held in the name of TAS 2019 LLC at HSBC Bank, USA, NA, in account nos. 11 ending in 3327, 0413, and 2079. Settling Defendant shall forfeit any rights and 12 claims to the funds in the receivership estate, including but not limited to: all funds 13 held, obtained, or to be obtained by the Receiver since the inception of the 14 receivership whether through this Order or otherwise. 15 29. To the extent it has not already done so, Settling Defendant is ordered 16 to transfer and relinquish to the Receiver, or to its designated agent, possession, 17 custody, and control within 7 days of entry of this Order, unless otherwise stated, 18 dominion and all legal and equitable right, title, and interest in all of Settling 19 Defendant’s Assets, including but not limited to all Assets that Settling Defendant 20 has held in the name of TAS 2019 LLC at HSBC Bank, USA, NA, in account nos. 21 ending in 3327, 0413, and 2079. 22 30. Settling Defendant shall cooperate fully with the Receiver and shall 23 execute any instrument or document presented by the Receiver, and take any other 24 actions the Receiver deems necessary or appropriate to effect the transfers required 25 by Paragraphs 27-29 and 61-62. All property described in Paragraph 29 shall 26 constitute Assets of the receivership estate. 27 28 13 STIPULATED FINAL JUDGMENT AND ORDER 1 31. Any funds received by the Bureau in satisfaction of this judgment will 2 be deposited into a fund or funds administered by the Bureau or to the Bureau’s 3 agent according to applicable statutes and regulations to be used for redress for 4 Affected Consumers, including, but not limited to refund of moneys, restitution, 5 damages or other monetary relief, and for any attendant expenses for the 6 administration of any such redress. 7 32. If the Bureau determines, in its sole discretion, that providing redress 8 to consumers is wholly or partially impracticable or if funds remain after the 9 administration of redress is completed, the Bureau will deposit any remaining 10 funds in the U.S. Treasury as disgorgement. Settling Defendant will have no right 11 to challenge any actions that the Bureau or its representatives may take under this 12 paragraph. 13 14 33. Payment of redress to any Affected Consumer under this Order may not be conditioned on that Affected Consumer waiving any right. 15 VI 16 Order to Pay Civil Money Penalty to the Bureau 17 18 It is FURTHER ORDERED that: 34. Under section 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of 19 the violations of law alleged in the Third Amended Complaint and taking into 20 account the factors in 12 U.S.C. § 5565(c)(3), Settling Defendant must pay a civil 21 money penalty of $1 to the Bureau. This nominal civil penalty is based on Settling 22 Defendant’s limited ability to pay. 23 35. Within 10 days of the Effective Date, Settling Defendant must pay the 24 civil money penalty by wire transfer to the Bureau or to the Bureau’s agent in 25 compliance with the Bureau’s wiring instructions. 26 36. The civil money penalty paid under this Order will be deposited in the 27 28 14 STIPULATED FINAL JUDGMENT AND ORDER 1 Civil Penalty Fund of the Bureau as required by section 1017(d) of the CFPA, 2 12 U.S.C. § 5497(d). 3 VII 4 Order to Pay Civil Money Penalties to the States 5 It is FURTHER ORDERED that: 6 37. Settling Defendant is liable to pay civil penalties in this Enforcement 7 Action under Minn. Stat. § 8.31 in the total amount of $5,000 to the State of 8 Minnesota, as provided in Paragraph 62. 9 10 38. 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. 11 39. Settling Defendant is liable to pay civil penalties in this Enforcement 12 Action under N.C. Gen. Stat. § 75-15.2 in the total amount of $5,000 to the State of 13 North Carolina, as provided in Paragraph 62. 14 40. Settling Defendant is liable to pay civil penalties in this Enforcement 15 Action under California Business and Professions Code section 17206 in the total 16 amount of $5,000 to the People of the State of California, as provided in Paragraph 17 62. 18 VIII 19 Additional Monetary Provisions 20 21 It is FURTHER ORDERED that: 41. In the event of any default on Settling Defendant’s obligations to 22 make payment under this Order, interest, computed under 28 U.S.C. § 1961, as 23 amended, will accrue on any outstanding amounts not paid from the date of default 24 to the date of payment, and will immediately become due and payable. 25 26 42. Settling Defendant relinquishes all dominion, control, and title to the funds and all other Assets transferred or paid under this Order to the fullest extent 27 28 15 STIPULATED FINAL JUDGMENT AND ORDER 1 permitted by law and no part of the funds or other Assets may be returned to 2 Settling Defendant. 3 43. The facts alleged against Settling Defendant in the Third Amended 4 Complaint will be taken as true and given collateral estoppel effect, without further 5 proof, in any proceeding based on the entry of the Order, or in any subsequent civil 6 litigation by or on behalf of the Plaintiffs, including in a proceeding to enforce 7 their rights to any payment or monetary judgment under this Order, such as a non- 8 dischargeability complaint in any bankruptcy case. 9 44. The facts alleged in the Third Amended Complaint establish all 10 elements necessary to sustain an action by the Plaintiffs under section 523(a)(2)(A) 11 of the Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and for such purposes this 12 Order will have collateral estoppel effect against Settling Defendant, even in its 13 capacity as a debtor-in-possession. 14 45. Under 31 U.S.C. § 7701, Settling Defendant, unless it has already 15 done so, must furnish to Plaintiffs any taxpayer-identification numbers associated 16 with it, which may be used for purposes of collecting and reporting on any 17 delinquent amount arising out of this Order. 18 46. Within 30 days of the entry of a final judgment, order, or settlement in 19 a Related Consumer Action, Settling Defendant must notify the Enforcement 20 Director of the final judgment, order, or settlement in writing. That notification 21 must indicate the amount of redress, if any, that the Settling Defendant paid or is 22 required to pay to consumers and describe the consumers or classes of consumers 23 to whom that redress has been or will be paid. To preserve the deterrent effect of 24 the civil money penalty in any Related Consumer Action, Settling Defendant may 25 not argue that it is entitled to, nor may Settling Defendant benefit by, any offset or 26 reduction of any monetary remedies imposed in the Related Consumer Action 27 28 16 STIPULATED FINAL JUDGMENT AND ORDER 1 because of the civil money penalty paid in this action or because of any payment 2 that the Bureau makes from the Civil Penalty Fund. If the court in any Related 3 Consumer Action offsets or otherwise reduces the amount of compensatory 4 monetary remedies imposed against Settling Defendant based on the civil money 5 penalty paid in this action or based on any payment that the Bureau makes from the 6 Civil Penalty Fund, the Settling Defendant must, within 30 days after entry of a 7 final order granting such offset or reduction, notify the Bureau and pay the amount 8 of the offset or reduction to the U.S. Treasury. Such a payment will not be 9 considered an additional civil money penalty and will not change the amount of the 10 11 civil money penalty imposed in this action. 47. Settling Defendant must treat all civil money penalties paid under this 12 Order as a penalty paid to the government for all purposes. Regardless of how 13 such funds are used, Settling Defendant may not: 14 a. claim, assert, or apply for a tax deduction, tax credit, or any other tax 15 benefit for any civil money penalty paid under this Order; or 16 b. seek or accept, directly or indirectly, reimbursement or 17 indemnification from any source, including but not limited to 18 payment made under any insurance policy, with regard to any civil 19 money penalty paid under this Order. 20 IX 21 Lifting of Asset Freeze 22 23 It is FURTHER ORDERED that: 48. The freeze on the Assets of Settling Defendant is modified to permit 24 the payments and other transfers of Assets identified in Sections V, VI, VII and 25 VIII of this Order. Upon completion of all payments and other obligations 26 identified in Sections V, VI, VII and VIII of this Order, the freeze of the Settling 27 28 17 STIPULATED FINAL JUDGMENT AND ORDER 1 Defendant’s Assets pursuant to the Preliminary Injunction entered on November 2 15, 2019 (ECF 103), shall be dissolved. 3 COMPLIANCE PROVISIONS 4 X 5 Notices 6 7 It is FURTHER ORDERED that: 49. Unless otherwise directed in writing by the Bureau, Settling 8 Defendant must provide all submissions, requests, communications, or other 9 documents relating to this Order in writing, with the subject line, “CFPB, et al., v. 10 CAC, et al., Case No. 8:19-cv-01998-MWF-KS” and send them by overnight 11 courier or first-class mail to the below address and contemporaneously by email to 12 Enforcement_Compliance@cfpb.gov: 13 Assistant Director for Enforcement 14 Bureau of Consumer Financial Protection 15 ATTENTION: Office of Enforcement 16 1700 G Street, N.W. 17 Washington, D.C. 20552 18 50. Unless otherwise directed by a representative of the State of 19 Minnesota in writing, all submissions to the State of Minnesota pursuant to this 20 Order must be sent by overnight courier or first-class mail to the below address and 21 contemporaneously by email to evan.romanoff@ag.state.mn.us: 22 Evan Romanoff, Assistant Attorney General 23 Office of the Minnesota Attorney General 24 445 Minnesota Street, Suite 1200 25 St. Paul, Minnesota 55101 26 27 28 18 STIPULATED FINAL JUDGMENT AND ORDER 1 51. Unless otherwise directed by a representative of the State of North 2 Carolina in writing, all submissions to the State of North Carolina pursuant to this 3 Order must be sent by overnight courier or first-class mail to the below address and 4 contemporaneously by email to lweaver@ncdoj.gov: 5 M. Lynne Weaver, Special Deputy Attorney General 6 North Carolina Department of Justice 7 114 W. Edenton Street 8 Raleigh, North Carolina 27603 9 52. Unless otherwise directed by the State of California in writing, all 10 submissions to the State of California pursuant to this Order must be sent by 11 overnight courier or first-class mail to the below address and contemporaneously 12 by email to christina.tusan@lacity.org: 13 Christina Tusan 14 Supervising Deputy City Attorney 15 Los Angeles City Attorney’s Office 16 200 N. Main Street, 5th Floor 17 Los Angeles, CA 90012 18 XI 19 Cooperation with Plaintiffs 20 21 It is FURTHER ORDERED that: 53. Settling Defendant must cooperate fully with Plaintiffs in this matter 22 and in any investigation or litigation related to or associated with the conduct 23 described in the Third Amended Complaint, including related to the Bankruptcy 24 Proceeding. Settling Defendant must provide truthful and complete information, 25 evidence, and testimony. Settling Defendant must cause its officers, employees, 26 representatives, or agents to appear for interviews, discovery, hearings, trials, and 27 28 19 STIPULATED FINAL JUDGMENT AND ORDER 1 any other proceedings that any Plaintiff may reasonably request upon 10 days 2 written notice, or other reasonable notice, at such places and times as Plaintiff may 3 designate, without the service of compulsory process. 4 54. Settling Defendant must cooperate fully to help Plaintiffs determine 5 the identity, location, and contact information of any Defendant and any Person 6 who might have contact information for any Defendant. Settling Defendant must 7 provide such information in their or their agents’ possession or control within 14 8 days of receiving a written request from any Plaintiff. 9 55. Settling Defendant must cooperate fully to help Plaintiffs determine 10 the identity and location of, and the amount of injury sustained by, each Affected 11 Consumer. Settling Defendant must provide such information in its or its agents’ 12 possession or control within 14 days of receiving a written request from any 13 Plaintiff. 14 XII 15 Compliance Monitoring 16 It is FURTHER ORDERED that, to monitor Settling Defendant’s compliance 17 with this Order, including the financial representations upon which part of the 18 judgment was suspended: 19 56. Within 14 days of receipt of a written request from any Plaintiff, 20 Settling Defendant must submit any requested information, which must be made 21 under penalty of perjury; provide sworn testimony; or produce documents. 22 57. For purposes of this Section, Plaintiffs may communicate directly 23 with Settling Defendant, unless Settling Defendant retains counsel related to these 24 communications. 25 58. 26 Settling Defendant must permit Plaintiffs’ representatives to interview any employee or other Person affiliated with Settling Defendant who has agreed to 27 28 20 STIPULATED FINAL JUDGMENT AND ORDER 1 such an interview. The Person interviewed may have counsel present. Nothing in 2 this Order will limit the Bureau’s lawful use of civil investigative demands under 3 12 C.F.R. § 1080.6 or any Plaintiff’s use of other compulsory process. 4 59. Plaintiffs are authorized by this Order to use all other lawful means, 5 including posing, through representatives, as consumers, suppliers, or other 6 individuals or entities, to Settling Defendant or any individual or entity affiliated 7 with Settling Defendant, without the necessity of identification or prior notice, and 8 may record any communications that occur in the course of such contacts. 9 XIII 10 Receivership 11 It is FURTHER ORDERED that: 12 60. The receivership imposed by this Court shall continue in the manner 13 set forth in the Preliminary Injunction issued on November 15, 2019 (ECF 103), as 14 to all Defendants and Relief Defendants, except as modified by this Section and 15 Section IX, and the Receiver shall continue to have the full powers of an equity 16 receiver, as an agent of the Court, pursuant to Sections XIV and XV of the 17 Preliminary Injunction, which shall remain in effect until further order of the 18 Court. 19 61. The Receiver shall take all necessary steps to wind down the affairs of 20 Settling Defendant. Subject to the transfers detailed in Paragraph 62, within 14 21 days of entry of this Order, the Receiver shall transfer $2,866,314.24 of Settling 22 Defendant’s Assets currently maintained in the Receiver’s account to the Bureau in 23 full satisfaction of the judgment identified in Paragraph 26. 24 62. Within 14 days of entry of this Order, the Receiver shall transfer 25 $5,000 to the State of Minnesota, $5,000 to the North Carolina Attorney General, 26 and $5,000 to the People of the State of California from the Settling Defendant’s 27 28 21 STIPULATED FINAL JUDGMENT AND ORDER 1 Assets maintained in the Receiver’s account. These transfers shall be made to 2 satisfy the civil money penalties to each State as set forth in Section VII. 3 63. The Receiver and his representatives shall continue to be entitled to 4 reasonable compensation for the performance of their duties pursuant to this Order 5 from the Assets of the Receivership Defendants. The Receiver and his 6 representatives shall not increase their hourly rates without prior approval of the 7 Court. 8 XIV 9 Retention of Jurisdiction 10 11 12 It is FURTHER ORDERED that: 64. The Court will retain jurisdiction of this matter for the purpose of enforcing this Order. 13 14 It is SO ORDERED, this 22nd day of March, 2022. 15 16 ____________________________ 17 MICHAEL W. FITZGERALD 18 United States District Judge 19 20 21 22 23 24 25 26 27 28 22 STIPULATED FINAL JUDGMENT AND ORDER

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