Bureau of Consumer Financial Protection v. Chou Team Realty LLC et al, No. 8:2020cv00043 - Document 181 (C.D. Cal. 2021)

Court Description: STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR by Judge Stanley Blumenfeld, Jr.: Upon Stipulation 167 , it is ORDERED that Defendant, whether acting directly or indirectly, is permanently restrained and enjoined from participating in, adverti sing, marketing, promoting, offering for sale, selling, or providing any Debt-Relief Service, telemarketing any Consumer Financial Product or Service, and using or obtaining Prescreened Consumer Reports. A judgment for monetary relief is entered in f avor of the Bureau and against Defendant, in the amount of $7,000,000 for the purpose of providing redress to Affected Consumers; however, full payment of this judgment will be suspended upon satisfaction of the obligations in Paragraphs 14 thro ugh 18 of this Section and Paragraphs 27 through 31 and 33 of Section IX and subject to Section VII of this Order. Within ten days of the Effective Date, Defendant must pay to the Bureau, by wire transfer to the Bureau or to the Bureau's agent, and according to the Bureau's wiring instructions, $3,000.00, in partial satisfaction of the judgment referenced in Paragraph 13 of this Section. Defendant must pay a civil money penalty of $1.00 to the Bureau. Each party agrees to bear its own costs and expenses, including, without limitation, attorneys' fees. See document for further details. See document for further details. (gk)

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Bureau of Consumer Financial Protection v. Chou Team Realty LLC et al Doc. 181 May 4, 2021 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA Bureau of Consumer Financial Protection, ) ) Case No.: 8-20-cv-00043-SB-ADS Plaintiff, ) ) STIPULATED FINAL JUDGMENT AND vs. ) ORDER AS TO DAVID SKLAR ) Chou Team Realty, LLC, et al., ) ) Defendants. ) ) ) The Bureau of Consumer Financial Protection (Bureau) commenced this civil action on January 9, 2020, to obtain injunctive relief, redress, civil penalties, and disgorgement. The Complaint alleges that, in connection with providing Debt-Relief Services to consumers with student loans, certain entities and individuals, including Defendant David Sklar, violated the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681; the Telemarketing Sales Rule (TSR), 16 C.F.R. Part 310; and the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531(a), 5536(a)(1)(A). The Bureau and Defendant Sklar agree to entry of this Stipulated Final Judgment and Order (Order), without adjudication of any issue of fact or law, to settle and resolve all matters in dispute between these parties. 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 1 Dockets.Justia.com 1 THEREFORE, it is ORDERED: FINDINGS 2 3 1. 4 of this action. 5 2. Venue is proper in this district under 12 U.S.C. § 5564(f). 6 3. The relief provided in this Order is appropriate and available under 7 8 9 This Court has jurisdiction over the parties and the subject matter sections 1054 and 1055 of the CFPA, 12 U.S.C. §§ 5564, 5565. 4. Defendant neither admits nor denies any allegations in the Complaint, except as specified in this Order. For purposes of this Order, 10 Defendant admits the facts necessary to establish the Court’s jurisdiction over 11 him and the subject matter of this action. 12 5. Defendant waives all rights to seek judicial review or otherwise 13 challenge or contest the validity of this Order and any claim he may have under 14 the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution 15 of this action to the date of this Order. Each Party agrees to bear its own costs 16 and expenses, including, without limitation, attorneys’ fees. 17 6. DEFINITIONS 18 19 Entry of this Order is in the public interest. 7. The following definitions apply to this Order: 20 a. “Affected Consumers” includes all consumers who, since 21 January 1, 2015, were charged fees by Docu Prep Center. 22 23 b. “Assisting Others” includes, but is not limited to: i. formulating or providing, or arranging for the 24 formulation or provision of, any advertising or marketing 25 material, including, but not limited to, any telephone 26 sales script, direct mail solicitation, or the text of any 27 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 2 1 Internet website, email, or other electronic 2 communication; 3 ii. providing names of, or contributing to the generation of, potential customers; 4 5 iii. participating in or providing services related to the 6 offering, sale, or servicing of a product, or the collection 7 of payments for a product; 8 iv. acting or serving as an owner, officer, director, manager, principal, partner, or limited partner of any entity; 9 10 v. investing or loaning money; and 11 vi. renting or otherwise providing office space. 12 c. “Consumer Financial Product or Service” is synonymous in 13 meaning and equal in scope to the definition of the term in the 14 CFPA, 12 U.S.C. § 5481(5), and, subject to applicable 15 restrictions contained in the CFPA, includes but is not limited 16 to: 17 i. extending credit and servicing loans, including acquiring, 18 purchasing, selling, brokering, or other extensions of 19 credit (other than solely extending commercial credit to a 20 person who originates consumer credit transactions); 21 ii. providing financial advisory services to consumers on 22 individual consumer financial matters or relating to 23 proprietary financial products or services, including 24 providing credit counseling to any consumer or providing 25 services to assist a consumer with debt management or 26 debt settlement, modifying the terms of any extension of 27 credit, or avoiding foreclosure; and 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 3 1 iii. engaging in deposit-taking activities, transmitting or 2 exchanging funds, or otherwise acting as a custodian of 3 funds or any financial instrument for use by or on behalf 4 of a consumer. 5 d. “Consumer Report” means a “consumer report,” as that term is 6 defined in Section 603(d) of FCRA, 15 U.S.C. § 1681a(d). 7 e. “Consumer Reporting Agency” means a “consumer reporting 8 agency,” as that term is defined in Section 603(f) of FCRA, 15 9 U.S.C. § 1681a(f). 10 f. “Debt-Relief Service” means any product, service, plan, or 11 program represented, directly or by implication, to renegotiate, 12 settle, or in any way alter the terms of payment or other terms 13 of the debt, including but not limited to a student loan debt, 14 mortgage loan debt, credit card debt, or tax debt or obligation, 15 between a person and one or more creditors or debt collectors, 16 including, but not limited to, a reduction in the balance, 17 interest rate, or fees owed by a person to a creditor or debt 18 collector. 19 20 21 g. “Defendant” means David Sklar, and any other name by which he might be known. h. “Docu Prep Center” means Docu Prep Center, Inc., d/b/a 22 DocuPrep Center, d/b/a Certified Document Center; Document 23 Preparation Services, LP, d/b/a DocuPrep Center, d/b/a 24 Certified Document Center; and their successors and assigns, 25 individually, collectively, or in any combination. 26 i. “Effective Date” means the date on which the Order is issued. 27 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 4 1 j. “Enforcement Director” means the Assistant Director of the 2 Office of Enforcement for the Bureau of Consumer Financial 3 Protection, or his or her delegate. 4 k. “Prescreened Consumer Reports” means Consumer Reports 5 relating to consumers furnished by a Consumer Reporting 6 Agency in connection with credit or insurance transactions that 7 are not initiated by the consumers, pursuant to 15 U.S.C. 8 § 1681b(c). 9 l. “Related Consumer Action” means a private action by or on 10 behalf of one or more consumers or an enforcement action by 11 another governmental agency brought against Defendant based 12 on substantially the same facts as described in the Complaint. 13 m. “Student Loan Debt Relief Companies” means Docu Prep 14 Center, Inc., d/b/a DocuPrep Center, d/b/a Certified Document 15 Center; Document Preparation Services, LP, d/b/a DocuPrep 16 Center, d/b/a Certified Document Center; Certified Doc Prep, 17 Inc.; Certified Doc Prep Services, LP; Assure Direct Services, 18 Inc.; Assure Direct Services, LP; Direct Document Solutions, 19 Inc.; Direct Document Solutions, LP; Secure Preparation 20 Services, Inc.; Secure Preparation Services, LP, and their 21 successors and assigns, individually, collectively, or in any 22 combination. 23 n. “Telemarketing” means a plan, program, or campaign which is 24 conducted to induce the purchase of goods or services or a 25 charitable contribution, by use of one or more telephones and 26 which involves more than one interstate phone call. 27 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 5 1 ORDER 2 CONDUCT RELIEF 3 I. 4 Permanent Ban on Offering or Providing Debt-Relief Services 5 6 7 IT IS ORDERED that: 8. Defendant, whether acting directly or indirectly, is permanently restrained and enjoined from: a. participating in, advertising, marketing, promoting, offering for 8 sale, selling, or providing any Debt-Relief Service; or 9 b. Assisting Others in, or receiving any remuneration or other 10 11 consideration from, the provision, advertising, marketing, 12 promoting, offering for sale, sale or production of any Debt- 13 Relief Service. 14 Nothing in this Order shall be read as an exception to this Paragraph. 15 II. 16 Permanent Ban on Telemarketing Consumer 17 Financial Products or Services 18 9. Defendant, whether acting directly or indirectly, is permanently 19 restrained and enjoined from participating in Telemarketing or Assisting Others 20 engaged in Telemarketing any Consumer Financial Product or Service. Nothing 21 in this Order shall be read as an exception to this Paragraph. 22 III. 23 Permanent Ban on Using or Obtaining Prescreened Consumer Reports 24 25 26 IT IS ORDERED that: 10. Defendant, whether acting directly or indirectly, is permanently restrained and enjoined from using, obtaining, offering, providing, selling, or 27 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 6 1 arranging for others to use or obtain Prescreened Consumer Reports for any 2 purpose. Nothing in this Order shall be read as an exception to this Paragraph. 3 IV. 4 Prohibition on Using or Obtaining Consumer Reports 5 for Any Business Purpose 6 7 IT IS ORDERED that: 11. Defendant, and his officers, agents, servants, employees, and 8 attorneys, and all other persons in active concert or participation with them, 9 who receive actual notice of this Order, whether acting directly or indirectly, 10 are permanently restrained and enjoined from using, obtaining, offering, 11 providing, selling, or arranging for others to use or obtain Consumer Reports 12 for any business purpose. Nothing in this Order shall be read as an exception to 13 this Paragraph. 14 V. 15 Consumer Information 16 17 IT IS ORDERED that: 12. Defendant and his officers, agents, servants, employees, and 18 attorneys, and all other persons in active concert or participation with them, 19 who receive actual notice of this Order, whether acting directly or indirectly, 20 may not: 21 a. disclose, use, or benefit from consumer information, including 22 the name, address, or any information about the consumer’s 23 student loans, contained in or derived from Prescreened 24 Consumer Reports obtained for use in marketing Debt-Relief 25 Services; or 26 b. disclose, use, or benefit from consumer information, including 27 the name, address, telephone number, email address, social 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 7 1 security number, other identifying information, or any data that 2 enables access to a customer’s account (including a credit card, 3 bank account, or other financial account), obtained from or 4 through the activities of the Student Loan Debt Relief 5 Companies. 6 However, this Order does not prohibit the disclosure of consumer 7 information if lawfully requested by a government agency or required by law, 8 regulation, or court order. 9 MONETARY PROVISIONS 10 VI. 11 Order to Pay Redress 12 13 IT IS FURTHER ORDERED that: 13. A judgment for monetary relief is entered in favor of the Bureau 14 and against Defendant, in the amount of $7,000,000 for the purpose of 15 providing redress to Affected Consumers; however, full payment of this 16 judgment will be suspended upon satisfaction of the obligations in Paragraphs 17 14 through 18 of this Section and Paragraphs 27 through 31 and 33 of Section 18 IX and subject to Section VII of this Order. 19 14. Within 10 days of the Effective Date, Defendant must pay to the 20 Bureau, by wire transfer to the Bureau or to the Bureau’s agent, and according 21 to the Bureau’s wiring instructions, $3,000.00, in partial satisfaction of the 22 judgment referenced in Paragraph 13 of this Section. 23 15. With regard to any redress that Defendant pays under this Section, 24 if Defendant, directly or indirectly, receives any reimbursement or 25 indemnification from any source, including but not limited to payment made 26 under any insurance policy, or if Defendant secures a tax deduction or tax credit 27 with regard to any federal, state, or local tax, Defendant must: (a) immediately 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 8 1 notify the Enforcement Director in writing, and (b) within 10 days of receiving 2 the funds or monetary benefit, Defendant must transfer to the Bureau the full 3 amount of such funds or monetary benefit (Additional Payment) to the Bureau 4 or to the Bureau’s agent according to the Bureau’s wiring instructions. After the 5 Bureau receives the Additional Payment, the amount of the suspended judgment 6 referenced in Paragraph 13 will be reduced by the amount of the Additional 7 Payment and the Additional Payment will be applied toward satisfaction of the 8 monetary judgment entered in Paragraph 13. 9 16. Any funds received by the Bureau in satisfaction of this judgment 10 will be deposited into a fund or funds administered by the Bureau or to the 11 Bureau’s agent according to applicable statutes and regulations to be used for 12 redress for Affected Consumers, including, but not limited to, refund of 13 moneys, restitution, damages or other monetary relief, and for any attendant 14 expenses for the administration of any such redress. 15 17. If the Bureau determines, in its sole discretion, that redress to 16 consumers is wholly or partially impracticable or if funds remain after redress is 17 completed, the Bureau will deposit any remaining funds in the U.S. Treasury as 18 disgorgement. Defendant will have no right to challenge any actions that the 19 Bureau or its representatives may take under this Section. 20 21 18. Payment of redress to any Affected Consumer under this Order may not be conditioned on that Affected Consumer waiving any right. 22 VII. 23 Effect of Misrepresentation or Omission Regarding Financial Condition 24 25 IT IS FURTHER ORDERED that: 19. The suspension of the monetary judgment entered in Section VI of 26 this Order is expressly premised on the truthfulness, accuracy, and 27 completeness of Defendant’s financial statements and supporting documents 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 9 1 submitted to the Bureau, which Defendant asserts are truthful, accurate, and 2 complete, and which include the Financial Statement of Defendant, including 3 the attachments, executed on September 8, 2020, and submitted to the Bureau 4 on or about September 29, 2020. 5 20. If upon motion by the Bureau, the Court determines that Defendant 6 has failed to disclose any material asset, or that his Financial Statement 7 identified in Paragraph 19 contains any material misrepresentations or 8 omissions, including materially misstating the value of any asset, the Court 9 shall terminate the suspension of the monetary judgment entered in Section VI 10 of this Order and the full judgment of $7,000,000 entered shall be immediately 11 due and payable, less any amounts paid to the Bureau under Section VI of this 12 Order. 13 21. If the Court terminates the suspension of the monetary judgment 14 under this Section, the Bureau will be entitled to interest on the Order, 15 computed from the date of entry of this Order, at the rate prescribed by 28 16 U.S.C. § 1961, as amended, on any outstanding amounts not paid; provided, 17 however, that in all other respects this Order shall remain in full force and effect 18 unless otherwise ordered by the Court; and, provided further, that proceedings 19 instituted under this provision would be in addition to, and not in lieu of any 20 other civil or criminal remedies as may be provided by law, including any other 21 proceedings that the Bureau may initiate to enforce this Order. 22 VIII. 23 Order to Pay Civil Money Penalties 24 25 IT IS FURTHER ORDERED that: 22. Under section 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by 26 reason of the violations of law alleged against Defendant in the Complaint, and 27 taking into account the factors in 12 U.S.C. § 5565(c)(3), Defendant must pay a 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 10 1 civil money penalty of $1.00 to the Bureau. This nominal penalty is based on 2 Defendant’s limited ability to pay as attested to in its financial statements 3 identified in Section VII above. 4 23. Within 10 days of the Effective Date, Defendant must pay the civil 5 money penalties in Paragraph 22 by wire transfer to the Bureau or to the 6 Bureau’s agent in compliance with the Bureau’s wiring instructions. 7 24. The civil money penalty paid under this Order will be deposited in 8 the Civil Penalty Fund of the Bureau, as required by section 1017(d) of the 9 CFPA, 12 U.S.C. § 5497(d). 10 25. Defendant must treat the civil money penalties paid under this 11 Order as a penalty paid to the government for all purposes. Regardless of how 12 the Bureau ultimately uses those funds, Defendant may not: 13 a. claim, assert, or apply for a tax deduction, tax credit, or any 14 other tax benefit for any civil money penalty paid under this 15 Consent Order; or b. seek or accept, directly or indirectly, reimbursement or 16 17 indemnification from any source, including but not limited to 18 payment made under any insurance policy, with regard to any 19 civil money penalty paid under this Order. 20 26. Defendant agrees that the civil penalty imposed by the Order 21 represents a civil penalty owed to the United States Government, is not 22 compensation for actual pecuniary loss, and, thus that it is not subject to 23 discharge under the Bankruptcy Code under 11 U.S.C. § 523(a)(7). 24 IX. 25 Additional Monetary Provisions 26 27 27. In the event of any default on Defendant’s obligations to make payment under this Order, interest, computed under 28 U.S.C. § 1961, as 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 11 1 amended, will accrue on any outstanding amounts not paid from the date of 2 default to the date of payment, and will immediately become due and payable. 3 28. Defendant relinquishes all dominion, control, title to the funds paid 4 under this Order to the fullest extent permitted by law. No part of the funds may 5 be returned to Defendant. 6 29. The facts alleged in the Complaint will be taken as true and be 7 given collateral estoppel effect, without further proof, in any proceeding based 8 on the entry of the Order, or in any subsequent civil litigation by, or on behalf 9 of the Bureau, including in a proceeding to enforce its rights to any payment or 10 monetary judgment under this Order, such as a nondischargeability complaint in 11 any bankruptcy case. 12 30. The facts alleged in the Complaint establish all elements necessary 13 to sustain an action by the Bureau under to Section 523(a)(2)(A) of the 14 Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A). For such purposes, this Order will 15 have collateral estoppel effect against Defendant, even in Defendant’s capacity 16 as debtor-in-possession. 17 31. Under 31 U.S.C. § 7701, Defendant, unless he already has done so, 18 must furnish to the Bureau his taxpayer-identification numbers, which may be 19 used for purposes of collecting and reporting on any delinquent amount arising 20 out of this Order. 21 32. Within 30 days of the entry of a final judgment, order, or 22 settlement in a Related Consumer Action, Defendant must notify the 23 Enforcement Director of the final judgment, order, or settlement in writing. 24 That notification must indicate the amount of redress, if any, that Defendant 25 paid or is required to pay to consumers, and it must describe the consumers or 26 classes of consumers to whom that redress has been or will be paid. To preserve 27 the deterrent effect of the civil money penalty in any Related Consumer Action, 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 12 1 Defendant may not argue that Defendant is entitled to, nor may Defendant 2 benefit by, any offset or reduction of any monetary remedies imposed in the 3 Related Consumer Action because of the civil money penalty paid in this 4 action, or because of any payment that the Bureau makes from the Civil Penalty 5 Fund. If the court in any Related Consumer Action offsets or otherwise reduces 6 the amount of compensatory monetary remedies imposed against Defendant 7 based on the civil money penalty paid in this action, or based on any payment 8 that the Bureau makes from the Civil Penalty Fund, Defendant must, within 30 9 days after entry of a final order granting such offset or reduction, notify the 10 Bureau and pay the amount of the offset or reduction to the U.S. Treasury. Such 11 a payment will not be considered an additional civil money penalty and will not 12 change the amount of the civil money penalty imposed in this action. 13 33. Under Section 604(a)(I) of FCRA, 15 U.S.C.§ 168l b(a)(1), any 14 Consumer Reporting Agency may furnish a Consumer Report concerning 15 Defendant to the Bureau, which may be used for purposes of collecting and 16 reporting on any delinquent amount arising out of this Order. 17 COMPLIANCE PROVISIONS 18 X. 19 Reporting Requirements 20 21 IT FURTHER ORDERED that: 34. Defendant must notify the Bureau of any development that may 22 affect compliance obligations arising under this Order, including but not limited 23 to, a dissolution, assignment, sale, merger, or other action that would result in 24 the emergence of a successor company; the creation or dissolution of a 25 subsidiary, parent, or affiliate that engages in any acts or practices subject to 26 this Order; the filing of any bankruptcy or insolvency proceeding by or against 27 Defendant; or a change in Defendant’s name or address. Defendant must 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 13 1 provide such notice at least 30 days before the development, or as soon as 2 practicable after learning of the development, whichever is sooner. 3 35. Within 7 days of the Effective Date, Defendant must: a. designate at least one telephone number and email, physical, 4 5 and postal address as points of contact, which the Bureau may 6 use to communicate with Defendant; b. identify all businesses for which Defendant is the majority 7 8 owner, or that Defendant directly or indirectly controls, by all 9 of their names, telephone numbers, and electronic, physical, and postal addresses; 10 c. describe the activities of each such business, including the 11 12 products and services offered, and the means of advertising, 13 marketing, and sales; d. identify Defendant’s telephone numbers and all electronic, 14 15 physical, and postal addresses, including all residences; and 16 e. describe in detail Defendant’s involvement in any business for 17 which he performs services in any capacity or which he wholly 18 or partially owns, including his title, role, responsibilities, 19 participation, authority, control, and ownership. 20 36. Defendant must report any change in the information required to 21 be submitted under Paragraph 35 at least 30 days before the change, or as soon 22 as practicable after learning about the change, whichever is sooner. 23 37. Within 90 days of the Effective Date, and again one year after the 24 Effective Date, Defendant must submit to the Enforcement Director an accurate 25 written compliance progress report sworn to under penalty of perjury 26 (“Compliance Report”), which, at a minimum: 27 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 14 1 a. lists each applicable paragraph and subparagraph of this Order 2 and describes in detail the manner and form in which such 3 Defendant has complied with each such paragraph and 4 subparagraph of this Order; b. describes in detail the manner in which and purposes for which 5 Defendant has used or obtained Consumer Reports; and 6 c. attaches a copy of each Order Acknowledgment obtained under 7 Section XI, unless previously submitted to the Bureau. 8 9 XI. 10 Order Distribution and Acknowledgment 11 12 IT IS FURTHER ORDERED that, 38. Within 7 days of the Effective Date, Defendant must submit to the 13 Enforcement Director an acknowledgment of receipt of this Order, sworn under 14 penalty of perjury. 15 39. Within 30 days of the Effective Date, Defendant, for any business 16 for which he is the majority owner or which he directly or indirectly controls, 17 must deliver a copy of this Order to each of its owners, board members, 18 officers, LLC members and managers, and general and limited partners, as well 19 as any managers, employees, or other agents and representatives who have 20 responsibilities related to Consumer Reports. 21 40. Defendant, for any business for which he is the majority owner or 22 which he directly or indirectly controls, must deliver a copy of this Order to any 23 business entity resulting from any change in structure referred to in Section X, 24 any future owners, board members, officers, LLC members and managers, and 25 general and limited partners, as well as any managers, employees, or other 26 agents and representatives who will have responsibilities related to Consumer 27 Reports before they assume their responsibilities. 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 15 1 41. Defendant must secure a signed and dated statement 2 acknowledging receipt of a copy of this Order, ensuring that any electronic 3 signatures comply with the requirements of the E-Sign Act, 15 U.S.C. § 7001 et 4 seq., within 30 days of delivery, from all persons receiving a copy of this Order 5 under this Section. 6 42. Within 90 days of the Effective Date, Defendant must provide the 7 Bureau with a list of all persons and their titles to whom this Order was 8 delivered through that date under Paragraphs 39 and 40 and a copy of all signed 9 and dated statements acknowledging receipt of this Order under Paragraph 41. 10 XII. 11 Recordkeeping 12 13 IT IS FURTHER ORDERED that, 43. Defendant, for any business for which he is the majority owner or 14 which he directly or indirectly controls, must create all documents and business 15 records necessary to demonstrate full compliance with each provision of this 16 Order, including all submissions to the Bureau. Defendant must retain these 17 documents for at least 10 years after creation and make them available to the 18 Bureau upon the Bureau’s request. 19 44. Defendant, for any business for which he is the majority owner or 20 which he directly or indirectly controls, must maintain, for 10 years from the 21 Effective Date, or 10 years after creation, whichever is longer: 22 a. all records concerning Consumer Reports used or obtained; and 23 b. all consumer complaints and refund requests (whether received 24 directly or indirectly, such as through a third party), and any 25 responses to those complaints or requests. 26 Defendant must make these materials available to the Bureau upon the Bureau’s 27 request. 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 16 1 XIII. 2 Notices 3 4 IT IS FURTHER ORDERED that: 45. Unless otherwise directed in writing by the Bureau, Defendant 5 must provide all submissions, requests, communications, or other documents 6 relating to this Order in writing, with the subject line, “CFPB v. Chou Team 7 Realty, LLC, et al., Case No. 8:20-cv-00043-SB-ADS,” and send them by 8 overnight courier or first-class mail to the below address, and 9 contemporaneously by email to Enforcement Compliance@cfpb.gov: 10 Assistant Director for Enforcement 11 Bureau of Consumer Financial Protection 12 ATTENTION: Office of Enforcement 13 1700 G Street, N.W. 14 Washington D.C. 20552 15 46. The Enforcement Director may, in his or her discretion, modify 16 any non-material requirements of this Order (e.g., reasonable extensions of time 17 and changes to reporting requirements) if he or she determines good cause 18 justifies the modification. Any such modification by the Enforcement Director 19 must be in writing. 20 XIV. 21 Cooperation with the Bureau 22 23 IT IS FURTHER ORDERED that: 47. Defendant must cooperate fully to help the Bureau determine the 24 identity and location of, and the amount of injury sustained by, each Affected 25 Consumer. Defendant must provide such information in his agents’ possession 26 or control within 14 days of receiving a written request from the Bureau. 27 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 17 1 48. Defendant must cooperate fully with the Bureau in this lawsuit, 2 CFPB v. Chou Team Realty, LLC, et al., Case No. 8:20-cv-00043-SB-ADS 3 (C.D. Cal.), and in any investigation related to or associated with the conduct 4 described in the Complaint. Defendant must provide truthful and complete 5 information, evidence, and testimony. Defendant must appear for interviews, 6 discovery, hearings, trials, and any other proceedings that the Bureau may 7 reasonably request upon 10 days written notice, or other reasonable notice, at 8 such places and times as the Bureau may designate, without the service of 9 compulsory process. 10 XV. 11 Compliance Monitoring 12 IT IS FURTHER ORDERED that, to monitor Defendant’s compliance with 13 this Order, including the financial representations upon which part of the 14 judgment was suspended: 15 49. Within 14 days of receipt of a written request from the Bureau, 16 Defendant must submit additional compliance reports or other requested 17 information, which must be sworn under penalty of perjury; provide testimony; 18 or produce documents. 19 50. For purposes of this Section, the Bureau may communicate directly 20 with the Defendant, unless the Defendant retains counsel related to these 21 communications. 22 51. Defendant must permit Bureau representatives to interview any 23 employee or other person affiliated with Defendant who has agreed to such an 24 interview. The person interviewed may have counsel present. 25 26 52. Nothing in this Order will limit the Bureau’s lawful use of compulsory process, under 12 C.F.R. § 1080.6. 27 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 18 1 XVI. 2 Retention of Jurisdiction 3 4 5 IT IS FURTHER ORDERED that: 53. The Court will retain jurisdiction of this matter for the purpose of enforcing this Order. 6 7 IT IS SO ORDERED. 8 9 10 11 Dated: May 4, 2021 12 Stanley Blumenfeld, Jr. United States District Judge 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STIPULATED FINAL JUDGMENT AND ORDER AS TO DAVID SKLAR 19

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