Federal Trade Commission v. Seed Consulting, LLC et al, No. 2:2021cv00154 - Document 8 (D. Nev. 2021)

Court Description: ORDER granting 2 Motion for Permanent Injunction and Monetary Judgment. Defendants are ordered to pay to the Commission Two Million One Hundred Thousand Dollars ($2,100,000), which, as Defendants stipulate, their undersigned counsel holds in escrow for no purpose other than payment to the Commission. Such payment must be made within 7 days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of the Commission. See Order for additional instruction and detail. Signed by Judge James C. Mahan on 2/1/2021. (Copies have been distributed pursuant to the NEF - DRS)

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Federal Trade Commission v. Seed Consulting, LLC et al Doc. 8 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 1 of 28 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 1 2 3 4 Plaintiff, 5 6 7 8 9 Case No. 2:21-cv-154 FEDERAL TRADE COMMISSION, v. SEED CONSULTING, LLC, also doing business as SEED CAPITAL and FOUNDATION FUNDING, a Nevada limited liability company, [PROPOSED] STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONETARY JUDGMENT 10 11 CREDIT NAVIGATOR, LLC, a Nevada limited liability company, 12 15 ERIK GANTZ, individually, and as a principal and owner of SEED CONSULTING, LLC and CREDIT NAVIGATOR, LLC, and 16 RANDY LANG, individually, 13 14 17 18 19 Defendants. Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its 20 Complaint for Permanent Injunction and Monetary Judgment in this matter 21 (“Complaint”), for a permanent injunction and other equitable relief in this matter, 22 pursuant to Sections 13(b) and 19 and of the Federal Trade Commission Act (“FTC 23 Act”), 15 U.S.C. §§ 53(b) and 57b, Section 6(b) of the Telemarketing and 24 Consumer Fraud and Abuse Prevention Act (“Telemarketing Act”), 15 U.S.C. 25 § 6105, Section 410(b) of the Credit Repair Organizations Act (“CROA”), 15 26 U.S.C. § 1679h, and Section 2(d) of the Consumer Review Fairness Act of 2016 27 (“CRFA”), 15 U.S.C. § 45b. The Commission and Defendants Seed Consulting, 28 LLC, Credit Navigator, LLC, Erik Gantz, and Randy Lang stipulate to the entry of 1 Dockets.Justia.com Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 2 of 28 1 this [Proposed] Stipulated Order for Permanent Injunction and Monetary Judgment 2 (“Order”) to resolve all matters in dispute in this action between them. 3 THEREFORE, IT IS ORDERED as follows: FINDINGS 4 5 1. This Court has jurisdiction over this matter. 6 2. The Complaint charges that Defendants participated in deceptive and 7 unfair acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. 8 § 45(a), Section 310.3(b) of the FTC’s Trade Regulation Rule entitled 9 Telemarketing Sales Rule (“TSR”), 16 C.F.R. § 310.3(b), Section 404 of CROA, 10 15 U.S.C. § 1679b, and Section 2(c) of the CRFA, 15 U.S.C. § 45b, in connection 11 with their business of applying for and obtaining credit cards on behalf of 12 consumers in exchange for a fee. 13 3. Defendants neither admit nor deny any of the allegations in the 14 Complaint, except as specifically stated in this Order. Only for purposes of this 15 action, Defendants admit the facts necessary to establish jurisdiction. 16 4. Defendants waive any claim that they may have under the Equal 17 Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action 18 through the date of this Order, and agree to bear their own costs and attorney fees. 19 20 5. Defendants and the Commission waive all rights to appeal or otherwise challenge or contest the validity of this Order. DEFINITIONS 21 22 For the purpose of this Order, the following definitions apply: 23 A. “Clearly and Conspicuously” means that a required disclosure is 24 difficult to miss (i.e., easily noticeable) and easily understandable by ordinary 25 consumers, including in all of the following ways: 26 1. In any communication that is solely visual or solely audible, the 27 disclosure must be made through the same means through which the 28 communication is presented. In any communication made through both visual and 2 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 3 of 28 1 audible means, such as a television advertisement, the disclosure must be presented 2 simultaneously in both the visual and audible portions of the communication even 3 if the representation requiring the disclosure is made in only one means. 2. 4 A visual disclosure, by its size, contrast, location, the length of 5 time it appears, and other characteristics, must stand out from any accompanying 6 text or other visual elements so that it is easily noticed, read, and understood. 3. 7 An audible disclosure, including by telephone or streaming 8 video, must be delivered in a volume, speed, and cadence sufficient for ordinary 9 consumers to easily hear and understand it. 4. 10 11 In any communication using an interactive electronic medium, such as the Internet or software, the disclosure must be unavoidable. 5. 12 The disclosure must use diction and syntax understandable to 13 ordinary consumers and must appear in each language in which the representation 14 that requires the disclosure appears. 6. 15 The disclosure must comply with these requirements in each 16 medium through which it is received, including all electronic devices and face-to- 17 face communications. 7. 18 19 The disclosure must not be contradicted or mitigated by, or inconsistent with, anything else in the communication. 8. 20 When the representation or sales practice targets a specific 21 audience, such as children, the elderly, or the terminally ill, “ordinary consumers” 22 includes reasonable members of that group. 23 24 25 B. “Consumer Credit” means credit advanced to a consumer for the purchase of goods or services, including by a credit card. C. “Consumer Credit Service” means an arrangement where a Person 26 assists a consumer in applying for or obtaining Consumer Credit in exchange for a 27 fee or other financial compensation. Consumer Credit Service does not include 28 mortgage brokerage services. 3 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 4 of 28 1 D. “Consumer Financial Account Information” means any 2 information that is identified with a consumer concerning a financial account, 3 including account numbers, credit card account balances or limits, depository bank 4 account balances, mortgage or automobile balances, or any other financial account 5 balance or limit. 6 E. “Corporate Defendants” means Seed Consulting, LLC (also doing 7 business as Seed Capital and Foundation Funding) and Credit Navigator, LLC, and 8 each of their subsidiaries, affiliates, successors, and assigns. 9 F. “Covered Communication” means a written, oral, or Pictorial 10 review, performance assessment, or other similar analysis of goods or services, 11 including conduct related to the goods or services. 12 G. “Credit Repair Service” means any service, in return for payment of 13 money or other consideration, for the express or implied purpose of: (1) improving 14 any consumer’s credit report, credit record, credit history, credit profile, credit 15 score, or credit rating; or (2) providing advice or assistance to any consumer with 16 regard to any activity or service the purpose of which is to improve any 17 consumer’s credit report, credit record, credit history, credit profile, credit score, or 18 credit rating. 19 20 H. “Defendants” means the Individual Defendants and the Corporate Defendants, individually, collectively, or in any combination. 21 I. “Including” means including but not limited to. 22 J. “Individual Defendants” means Erik Gantz and Randy Lang. 23 K. “Person” means any natural person, organization, or legal entity, 24 including a corporation, limited liability company, partnership, proprietorship, 25 association, cooperative, government or governmental subdivision or agency, or 26 any other group or combination acting as an entity. 27 L. 28 symbols. “Pictorial” includes pictures, photographs, video, illustrations, and 4 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 5 of 28 1 M. 2 term that: 1. 3 4 prohibits or restricts the ability of a Person who is a party to the contract to engage in a Covered Communication; 2. 5 6 “Review-Limiting Contract Term” means a standardized contract imposes a penalty or fee against a Person who is a party to the contract for engaging in a Covered Communication; or 3. 7 transfers, or requires a Person who is a party to the contract to 8 transfer, to any other Person any intellectual property rights in a Covered 9 Communication, with the exception of a non-exclusive license to lawfully use a 10 Covered Communication about a Defendant’s goods, services, or conduct. 11 I. 12 BAN ON SELLING CONSUMER CREDIT SERVICES 13 IT IS ORDERED that Defendants are permanently restrained and enjoined 14 from advertising, marketing, promoting, or offering for sale, or assisting in the 15 advertising, marketing, promoting, or offering for sale of, any Consumer Credit 16 Service. 17 II. 18 PROHIBITED BUSINESS ACTIVITIES 19 IT IS FURTHER ORDERED that Defendants, Defendants’ officers, 20 agents, employees, and attorneys, and all other Persons in active concert or 21 participation with any of them, who receive actual notice of this Order, whether 22 acting directly or indirectly, in connection with the advertising, marketing, 23 promotion, or offering for sale of any good or service, other than those banned by 24 Section I of this Order, are permanently restrained and enjoined from: 25 A. Misrepresenting, or assisting others in misrepresenting, expressly or 26 by implication: 27 28 5 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 6 of 28 1 1. The financial status of any customer, including the customer’s 2 income or assets, in connection with any submission to a financial institution or 3 credit bureau; 4 5 6 7 8 9 10 11 12 2. That consumers are likely to earn substantial income, or a specific level or range of actual or potential income; 3. The impact of any service provided by Defendants on a consumer’s credit record, credit history, or credit rating; 4. The extent to which and the manner in which Defendants will use, transfer, share, or disclose Consumer Financial Account Information; 5. Any Person’s ability to improve or otherwise affect a consumer’s credit record, credit history, or credit rating or ability to obtain credit; 6. That any Person can improve any consumer’s credit record, 13 credit history, or credit rating by permanently removing negative information from 14 the consumer’s credit record, credit history, or credit rating, even where such 15 information is accurate and not obsolete; 16 7. The terms or rates that are available for any loan or other 17 extension of credit, including, but not limited to: (a) the type of credit (such as a 18 credit card, line of credit, or loan); (b) closing costs or other fees and how such 19 costs or fees will be assessed; (c) the payment schedule, monthly payment 20 amount(s), any balloon payment, or other payment terms; (d) the interest rate(s), 21 annual percentage rate(s), or finance charge(s), and whether they are fixed or 22 adjustable; (e) the loan amount, credit amount, draw amount, or outstanding 23 balance; the loan term, draw period, or maturity; or any other term of credit; (f) the 24 amount of cash to be disbursed to the borrower out of the proceeds, or the amount 25 of cash to be disbursed on behalf of the borrower to any third parties; (g) whether 26 any specified minimum payment amount covers both interest and principal, and 27 whether the credit has or can result in negative amortization; or (h) that the credit 28 6 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 7 of 28 1 does not have a prepayment penalty or whether subsequent refinancing may trigger 2 a prepayment penalty and/or other fees; or 8. 3 Any other fact material to consumers concerning any good or 4 service, such as: the total costs; any material restrictions, limitations, or 5 conditions; or any material aspect of its performance, efficacy, nature, or central 6 characteristics; and 7 B. Failing to disclose Clearly and Conspicuously, in connection with any 8 representation regarding the availability of any loan or other extension of credit: 9 (1) the type of credit (such as a credit card, line of credit, or loan); (2) all costs 10 associated with such extension of credit and how such costs shall be assessed; 11 (3) the interest rate(s), annual percentage rate(s), or finance charge(s), and whether 12 they are fixed or adjustable; and (4) the loan amount, credit amount or limit, draw 13 amount, or outstanding balance. 14 III. 15 PROHIBITIONS REGARDING CREDIT REPAIR SERVICES 16 IT IS FURTHER ORDERED that Defendants, Defendants’ officers, 17 agents, employees, and attorneys, and all other Persons in active concert or 18 participation with any of them, who receive actual notice of this Order, whether 19 acting directly or indirectly, in connection with the advertising, marketing, 20 promotion, or offering for sale of any Credit Repair Service, other than those 21 banned by Section I of this Order, are permanently restrained and enjoined from: 22 A. Engaging in any act, practice, or course of business that constitutes or 23 results in the commission of, or an attempt to commit, a fraud or deception on any 24 Person in connection with the offer or sale of a Credit Repair Service; 25 B. Making any statement or advising any consumer to make any 26 statement, which is untrue or misleading or should be known to be untrue or 27 misleading, with respect to any consumer’s credit worthiness, credit standing, or 28 credit capacity to: (A) any consumer reporting agency (as defined in section 15 7 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 8 of 28 1 U.S.C. § 1681a(f)); or (B) any person— (i) who has extended credit to the 2 consumer; or (ii) to whom the consumer has applied or is applying for an extension 3 of credit; 4 C. Failing to provide any Person with a written statement of “Consumer 5 Credit File Rights Under State and Federal Law,” in the form and manner required 6 by Section 405(a) of CROA, 15 U.S.C. § 1679c(a); 7 D. Failing to include in contracts for any Credit Repair Service a 8 conspicuous statement in bold face type, in immediate proximity to the space 9 reserved for the consumer’s signature on the contract, regarding the consumer’s 10 right to cancel the contracts without penalty or obligation at any time before the 11 third business day after the date on which consumers signed the contracts, in the 12 form and manner required by Section 406(b)(4) of CROA, 15 U.S.C. 13 § 1679d(b)(4); 14 E. Failing to provide any Person with a separate form with the heading 15 “Notice of Cancellation,” in the form and manner required by Section 407(b) of 16 CROA, 15 U.S.C. § 1679e(b); 17 F. Charging or receiving any money or other consideration for the 18 performance of any Credit Repair Service before such Credit Repair Service is 19 fully performed; or 20 21 G. Violating CROA, 15 U.S.C. §§ 1679-1679j, a copy of which is attached as Attachment A. 22 IV. 23 PROHIBITION AGAINST DISCLOSURE OF CONSUMER 24 FINANCIAL ACCOUNT INFORMATION 25 IT IS FURTHER ORDERED that Defendants, Defendants’ officers, 26 agents, and employees, and all other Persons in active concert or participation with 27 any of them who receive actual notice of this Order, whether acting directly or 28 indirectly, are permanently restrained and enjoined from selling, transferring, or 8 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 9 of 28 1 disclosing any consumer’s Consumer Financial Account Information without the 2 consumer’s express informed consent to the sale, transfer, or disclosure. 3 V. 4 PROHIBITION AGAINST ASSISTING AND FACILITATING 5 IT IS FURTHER ORDERED that Defendants, Defendants’ officers, 6 agents, and employees, and all other Persons in active concert or participation with 7 any of them who receive actual notice of this Order, whether acting directly or 8 indirectly, are permanently restrained and enjoined from providing substantial 9 assistance or support to any Person that they know, or should know, is engaged in: 10 11 12 13 14 15 16 17 A. Misrepresenting, directly or by implication, any material aspect of the performance, efficacy, nature, or central characteristics of any goods and services; B. Misrepresenting, directly or by implication, any material aspect of the nature or terms of any refund, cancellation, exchange, or repurchase policies; C. The unauthorized debiting or charging of consumer bank or credit card accounts; or D. Any deceptive, unfair, or abusive act or practice prohibited by Section 5 of the FTC Act or by the TSR. 18 VI. 19 PROHIBITED USE OF REVIEW-LIMITING CONTRACT TERMS 20 IT IS FURTHER ORDERED that Defendants, Defendants’ officers, 21 agents, and employees, and all other Persons in active concert or participation with 22 any of them, who receive actual notice of this Order, whether acting directly or 23 indirectly, in connection with the sale of any good or service, must not: 24 25 26 A. Offer to any prospective customer a contract, or offer to any customer a renewal contract, that includes a Review-Limiting Contract Term; B. Require that a customer accept a Review-Limiting Contract Term as a 27 condition of Defendants’ fulfillment of its obligations under a customer contract 28 that Defendants entered into before the effective date of this Order; or 9 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 10 of 28 1 C. Attempt to enforce or assert the validity of any Review-Limiting 2 Contract Term in any customer contract that Defendants entered into before the 3 effective date of this Order. 4 Nothing in this Paragraph shall require Defendants to publish or host the 5 content provided by any Person, affect any other legal duty of a party to a contract, 6 or affect any cause of action arising from the breach of such duty. 7 VII. 8 MONETARY JUDGMENT 9 10 IT IS FURTHER ORDERED that: A. Judgment in the amount of Two Million One Hundred Thousand 11 Dollars ($2,100,000) is entered in favor of the Commission against Defendants, 12 jointly and severally, as equitable monetary relief. 13 B. Defendants are ordered to pay to the Commission Two Million One 14 Hundred Thousand Dollars ($2,100,000), which, as Defendants stipulate, their 15 undersigned counsel holds in escrow for no purpose other than payment to the 16 Commission. Such payment must be made within 7 days of entry of this Order by 17 electronic fund transfer in accordance with instructions previously provided by a 18 representative of the Commission. 19 C. Defendants relinquish dominion and all legal and equitable right, title, 20 and interest in all assets transferred pursuant to this Order and may not seek the 21 return of any assets. 22 D. The facts alleged in the Complaint will be taken as true, without 23 further proof, in any subsequent civil litigation by or on behalf of the Commission, 24 in a proceeding to enforce its rights to any payment or monetary judgment pursuant 25 to this Order, such as a nondischargeability complaint in any bankruptcy case. 26 27 E. The facts alleged in the Complaint establish all elements necessary to sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the 28 10 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 11 of 28 1 Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral 2 estoppel effect for such purposes. 3 F. Defendants acknowledge that their Taxpayer Identification Numbers 4 (Social Security Numbers or Employer Identification Numbers), which Defendants 5 must submit to the Commission, may be used for collecting and reporting on any 6 delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701. 7 G. All money paid to the Commission pursuant to this Order may be 8 deposited into a fund administered by the Commission or its designee to be used 9 for equitable relief, including consumer redress and any attendant expenses for the 10 administration of any redress fund. If a representative of the Commission decides 11 that direct redress to consumers is wholly or partially impracticable or money 12 remains after redress is completed, the Commission may apply any remaining 13 money for such other equitable relief (including consumer information remedies) 14 as it determines to be reasonably related to Defendants’ practices alleged in the 15 Complaint. Any money not used for such equitable relief is to be deposited to the 16 U.S. Treasury as disgorgement. Defendants have no right to challenge any actions 17 the Commission or its representatives may take pursuant to this Subsection. 18 VIII. 19 CUSTOMER INFORMATION 20 IT IS FURTHER ORDERED that Defendants and Defendants’ officers, 21 agents, and employees, and all other Persons in active concert or participation with 22 any of them, who receive actual notice of this Order, whether acting directly or 23 indirectly, are hereby permanently restrained and enjoined from directly or 24 indirectly: 25 A. Failing to provide sufficient customer information to enable the 26 Commission to efficiently administer consumer redress. If a representative of the 27 Commission requests in writing any information related to redress, Defendants 28 must provide it, in the form prescribed by the Commission, within 14 days; 11 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 12 of 28 1 B. Disclosing, using, or benefitting from customer information, including 2 the name, address, telephone number, email address, social security number, other 3 identifying information, or any data that enables access to a customer’s account 4 (including a credit card, bank account, or other financial account), that any 5 Defendant obtained prior to entry of this Order in connection with their business of 6 applying for and obtaining credit cards on behalf of consumers in exchange for a 7 fee; and 8 9 10 11 C. Failing to destroy such customer information in all forms in their possession, custody, or control within 30 days after receipt of written direction to do so from a representative of the Commission. Provided, however, that customer information need not be disposed of, and 12 may be disclosed, to the extent requested by a government agency or required by 13 law, regulation, or court order. 14 IX. 15 COOPERATION 16 IT IS FURTHER ORDERED that Defendants must fully cooperate with 17 representatives of the Commission in this case and in any investigation related to 18 or associated with the transactions or the occurrences that are the subject of the 19 Complaint. Such Defendants must provide truthful and complete information, 20 evidence, and testimony. Such Individual Defendants must appear and such 21 Corporate Defendants must cause Defendants’ officers, employees, 22 representatives, or agents to appear for interviews, discovery, hearings, trials, and 23 any other proceedings that a Commission representative may reasonably request 24 upon 5 days written notice, or other reasonable notice, at such places and times as a 25 Commission representative may designate, without the service of a subpoena. 26 27 28 12 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 13 of 28 1 X. 2 ORDER ACKNOWLEDGMENTS 3 4 5 IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of this Order: A. Each Defendant, within 7 days of entry of this Order, must submit to 6 the Commission an acknowledgment of receipt of this Order sworn under penalty 7 of perjury. 8 B. For 5 years after entry of this Order, each Individual Defendant for 9 any business that such Defendant, individually or collectively with any other 10 Defendant, is the majority owner or controls directly or indirectly, and each 11 Corporate Defendant, must deliver a copy of this Order to: (1) all principals, 12 officers, directors, and LLC managers and members; (2) all employees having 13 managerial responsibilities for conduct related to the subject matter of the Order 14 and all agents and representatives who participate in conduct related to the subject 15 matter of this Order; and (3) any business entity resulting from any change in 16 structure as set forth in the Section titled Compliance Reporting. Delivery must 17 occur within 7 days of entry of this Order for current personnel. For all others, 18 delivery must occur before they assume their responsibilities. 19 C. From each individual or entity to which a Defendant delivered a copy 20 of this Order, that Defendant must obtain, within 30 days, a signed and dated 21 acknowledgment of receipt of this Order. 22 XI. 23 COMPLIANCE REPORTING 24 25 26 27 IT IS FURTHER ORDERED that Defendants make timely submissions to the Commission: A. One year after entry of this Order, each Defendant must submit a compliance report, sworn under penalty of perjury: 28 13 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 14 of 28 1. 1 Each Defendant must: (a) identify the primary physical, postal, 2 and email address and telephone number, as designated points of contact, which 3 representatives of the Commission may use to communicate with Defendant; 4 (b) identify all of that Defendant’s businesses by all of their names, telephone 5 numbers, and physical, postal, email, and Internet addresses; (c) describe the 6 activities of each business, including the goods and services offered, the means of 7 advertising, marketing, and sales, and the involvement of any other Defendant 8 (which Individual Defendants must describe if they know or should know due to 9 their own involvement); (d) describe in detail whether and how that Defendant is in 10 compliance with each Section of this Order; and (e) provide a copy of each Order 11 Acknowledgment obtained pursuant to this Order, unless previously submitted to 12 the Commission. 2. 13 Additionally, each Individual Defendant must: (a) identify all 14 telephone numbers and all physical, postal, email and Internet addresses, including 15 all residences; (b) identify all business activities, including any business for which 16 such Defendant performs services whether as an employee or otherwise and any 17 entity in which such Defendant has any ownership interest; and (c) describe in 18 detail such Defendant’s involvement in each such business, including title, role, 19 responsibilities, participation, authority, control, and any ownership. 20 B. For 10 years after entry of this Order, each Defendant must submit a 21 compliance notice, sworn under penalty of perjury, within 14 days of any change 22 in the following: 23 1. Each Defendant must report any change in: (a) any designated 24 point of contact; or (b) the structure of any Corporate Defendant or any entity that 25 Defendant has any ownership interest in or controls directly or indirectly that may 26 affect compliance obligations arising under this Order, including: creation, 27 merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that 28 engages in any acts or practices subject to this Order. 14 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 15 of 28 2. 1 Additionally, each Individual Defendant must report any 2 change in: (a) name, including aliases or fictitious name, or residence address; or 3 (b) title or role in any business activity, including any business for which such 4 Defendant performs services whether as an employee or otherwise and any entity 5 in which such Defendant has any ownership interest, and identify the name, 6 physical address, and any Internet address of the business or entity. 7 C. Each Defendant must submit to the Commission notice of the filing of 8 any bankruptcy petition, insolvency proceeding, or similar proceeding by or 9 against such Defendant within 14 days of its filing. 10 D. Any submission to the Commission required by this Order to be 11 sworn under penalty of perjury must be true and accurate and comply with 28 12 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under 13 the laws of the United States of America that the foregoing is true and correct. 14 Executed on: _____” and supplying the date, signatory’s full name, title (if 15 applicable), and signature. 16 E. Unless otherwise directed by a Commission representative in writing, 17 all submissions to the Commission pursuant to this Order must be emailed to 18 DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: 19 Associate Director for Enforcement, Bureau of Consumer Protection, Federal 20 Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580. The 21 subject line must begin: FTC v. Seed Consulting, LLC, et al. 22 XII. 23 RECORDKEEPING 24 IT IS FURTHER ORDERED that Defendants must create certain records 25 for 10 years after entry of the Order, and retain each such record for 5 years. 26 Specifically, Corporate Defendants and each Individual Defendant for any business 27 that such Defendant, individually or collectively with any other Defendants, is a 28 15 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 16 of 28 1 majority owner or controls directly or indirectly, must create and retain the 2 following records: 3 4 5 A. accounting records showing the revenues from all goods or services B. personnel records showing, for each person providing services, sold; 6 whether as an employee or otherwise, that person’s: name; addresses; telephone 7 numbers; job title or position; dates of service; and (if applicable) the reason for 8 termination; 9 10 11 12 C. records of all consumer complaints and refund requests, whether received directly or indirectly, such as through a third party, and any response; and D. all records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission. 13 XIII. 14 COMPLIANCE MONITORING 15 IT IS FURTHER ORDERED that, for the purpose of monitoring 16 Defendants’ compliance with this Order, including any failure to transfer any 17 assets as required by this Order: 18 A. Within 14 days of receipt of a written request from a representative of 19 the Commission, each Defendant must: submit additional compliance reports or 20 other requested information, which must be sworn under penalty of perjury; appear 21 for depositions; and produce documents for inspection and copying. The 22 Commission is also authorized to obtain discovery, without further leave of court, 23 using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 24 (including telephonic depositions), 31, 33, 34, 36, 45, and 69. 25 B. For matters concerning this Order, the Commission is authorized to 26 communicate directly with each Defendant. Defendants must permit 27 representatives of the Commission to interview any employee or other Person 28 16 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 17 of 28 1 affiliated with any Defendant who has agreed to such an interview. The Person 2 interviewed may have counsel present. 3 C. The Commission may use all other lawful means, including posing, 4 through its representatives as consumers, suppliers, or other individuals or entities, 5 to Defendants or any individual or entity affiliated with Defendants, without the 6 necessity of identification or prior notice. Nothing in this Order limits the 7 Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of 8 the FTC Act, 15 U.S.C. §§ 49, 57b-1. 9 D. Upon written request from a representative of the Commission, any 10 consumer reporting agency must furnish consumer reports concerning Individual 11 Defendants, pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. 12 §1681b(a)(1). 13 XIV. 14 RETENTION OF JURISDICTION 15 16 IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order. 17 18 DATED February 1, 2021. SO ORDERED this ______ day of _______________________. 19 20 _______________________________ UNITED STATES DISTRICT JUDGE 21 22 23 24 25 26 27 28 17 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 18 of 28 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 19 of 28 10-12 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 20 of 28 Attachment A 012314343 Case 2:21-cv-00154-JCM-VCF Document 2-1 Filed 01/29/21 Page 21 of 28 78ÿ ÿ ÿ 7 ÿ ÿ ÿ ÿ ÿ !ÿ "#$%ÿ78& '' ÿ ÿ ()*+,-.ÿ051(23456-.ÿ(.-78,ÿ+.2,-(,823 ÿ 9 & ÿ ÿ :7;<=>ÿ "?@"?ABÿC?@ÿDE D B%B FCGÿ "?@"?AB ,HIÿ(JKLMINNÿOPQINÿRHIÿSJTTJUVKLÿSVKWVKLNX Y5Zÿ(JKN[OIMNÿHP\IÿPÿ\VRPTÿVKRIMINRÿVKÿINRP]TVNHVKLÿPKWÿOPVKRPVKVKLÿRHIVMÿ^MIWVRÿUJMRHVKINNÿPKWÿ^MIWVRÿNRPKWVKLÿVK JMWIMÿRJÿJ]RPVKÿPKWÿ[NIÿ^MIWVR_ÿ*NÿPÿMIN[TR`ÿ^JKN[OIMNÿUHJÿHP\IÿIabIMVIK^IWÿ^MIWVRÿbMJ]TIONÿOPcÿNIIQÿPNNVNRPK^I SMJOÿ^MIWVRÿMIbPVMÿJMLPKVdPRVJKNÿUHV^HÿJSSIMÿRJÿVObMJ\IÿRHIÿ^MIWVRÿNRPKWVKLÿJSÿN[^Hÿ^JKN[OIMN_ Y4Zÿ(IMRPVKÿPW\IMRVNVKLÿPKWÿ][NVKINNÿbMP^RV^INÿJSÿNJOIÿ^JObPKVINÿIKLPLIWÿVKÿRHIÿ][NVKINNÿJSÿ^MIWVRÿMIbPVM NIM\V^INÿHP\IÿUJMQIWÿPÿSVKPK^VPTÿHPMWNHVbÿ[bJKÿ^JKN[OIMN`ÿbPMRV^[TPMTcÿRHJNIÿJSÿTVOVRIWÿI^JKJOV^ÿOIPKNÿPKWÿUHJ PMIÿVKIabIMVIK^IWÿVKÿ^MIWVRÿOPRRIMN_ FeGÿ E D B%B ,HIÿb[MbJNINÿJSÿRHVNÿN[]^HPbRIMÿPMI1 Y5ZÿRJÿIKN[MIÿRHPRÿbMJNbI^RV\Iÿ][cIMNÿJSÿRHIÿNIM\V^INÿJSÿ^MIWVRÿMIbPVMÿJMLPKVdPRVJKNÿPMIÿbMJ\VWIWÿUVRHÿRHI VKSJMOPRVJKÿKI^INNPMcÿRJÿOPQIÿPKÿVKSJMOIWÿWI^VNVJKÿMILPMWVKLÿRHIÿb[M^HPNIÿJSÿN[^HÿNIM\V^INfÿPKW Y4ZÿRJÿbMJRI^RÿRHIÿb[]TV^ÿSMJOÿ[KSPVMÿJMÿWI^IbRV\IÿPW\IMRVNVKLÿPKWÿ][NVKINNÿbMP^RV^INÿ]cÿ^MIWVRÿMIbPVMÿJMLPKVdPRVJKN_ Y+[]_ÿg_ÿ03h245`ÿRVRTIÿ8i`ÿj034`ÿPNÿPWWIWÿ+[]_ÿg_ÿ530h436`ÿWV\_ÿ*`ÿRVRTIÿ88`ÿj40k5`ÿ4IbR_ÿ23`ÿ500l`ÿ553ÿ4RPR_ÿ2330h0kk_Z mnomÿ mopnqnorq *ÿbMVJMÿRVRTIÿ8iÿJSÿ+[]_ÿg_ÿ03h245`ÿ6Pcÿ40`ÿ50l6`ÿ64ÿ4RPR_ÿ5l0`ÿPNÿPOIKWIWÿ]cÿ+[]_ÿg_ÿ05h200`ÿs[Tcÿ43` 50t3`ÿ60ÿ4RPR_ÿ003fÿ+[]_ÿg_ÿ04h245`ÿs[KIÿ23`ÿ50t4`ÿ6lÿ4RPR_ÿ264`ÿUHV^HÿUPNÿNIRÿJ[RÿPNÿPÿKJRIÿ[KWIMÿNI^RVJK 5l35ÿJSÿRHVNÿRVRTI`ÿINRP]TVNHIWÿPÿ]VbPMRVNPKÿ3PRVJKPTÿ(JOOVNNVJKÿJKÿ(JKN[OIMÿuVKPK^IÿRJÿNR[WcÿRHI S[K^RVJKVKLÿPKWÿNRM[^R[MIÿJSÿRHIÿ^JKN[OIMÿSVKPK^IÿVKW[NRMcÿPNÿUITTÿPNÿ^JKN[OIMÿ^MIWVRÿRMPKNP^RVJKN LIKIMPTTc_ÿ,HIÿ(JOOVNNVJKÿUPNÿRJÿN[]OVRÿPÿSVKPTÿMIbJMRÿ]cÿ7I^_ÿ25`ÿ50t4`ÿPKWÿUPNÿRJÿ^IPNIÿRJÿIaVNR RHIMIPSRIM_ vvwxynpwÿ zyw +[]_ÿg_ÿ03h245`ÿRVRTIÿ8i`ÿj052`ÿPNÿPWWIWÿ]cÿ+[]_ÿg_ÿ530h436`ÿWV\_ÿ*`ÿRVRTIÿ88`ÿj40k5`ÿ4IbR_ÿ23`ÿ500l`ÿ553ÿ4RPR_ 2330h0l4`ÿbMJ\VWIWÿRHPRXÿ{,HVNÿRVRTIÿ|IKP^RVKLÿRHVNÿN[]^HPbRIM}ÿNHPTTÿPbbTcÿPSRIMÿRHIÿIKWÿJSÿRHIÿl~OJKRH bIMVJWÿ]ILVKKVKLÿJKÿRHIÿWPRIÿJSÿRHIÿIKP^ROIKRÿJSÿRHIÿ(MIWVRÿ.IbPVMÿ2MLPKVdPRVJKNÿ*^Rÿ|4IbR_ÿ23`ÿ500l}` Ia^IbRÿUVRHÿMINbI^RÿRJÿ^JKRMP^RNÿIKRIMIWÿVKRJÿ]cÿPÿ^MIWVRÿMIbPVMÿJMLPKVdPRVJKÿ]ISJMIÿRHIÿIKWÿJSÿN[^H bIMVJW_{ omyÿ ny w ,HVNÿN[]^HPbRIMÿQKJUKÿPNÿRHIÿ{(MIWVRÿ.IbPVMÿ2MLPKVdPRVJKNÿ*^R{`ÿNIIÿ4HJMRÿ,VRTIÿKJRIÿNIRÿJ[Rÿ[KWIM NI^RVJKÿ5l35ÿJSÿRHVNÿRVRTI_ :7;<=C>ÿ % "?"#"?B uJMÿb[MbJNINÿJSÿRHVNÿN[]^HPbRIM`ÿRHIÿSJTTJUVKLÿWISVKVRVJKNÿPbbTcX F7Gÿ ?BE!% ,HIÿRIMOÿ{^JKN[OIM{ÿOIPKNÿPKÿVKWV\VW[PT_ F Gÿ ?BE!% ÿ %@"#ÿ# C?BC #"? ,HIÿRIMOÿ{^JKN[OIMÿ^MIWVRÿRMPKNP^RVJK{ÿOIPKNÿPKcÿRMPKNP^RVJKÿVKÿUHV^Hÿ^MIWVRÿVNÿJSSIMIWÿJMÿIaRIKWIWÿRJÿPK VKWV\VW[PTÿSJMÿbIMNJKPT`ÿSPOVTc`ÿJMÿHJ[NIHJTWÿb[MbJNIN_ F Gÿ %@"#ÿ %DC" ÿ AC?" 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