Professional Documents
Culture Documents
Gov Uscourts NVD 109469 56 0
Gov Uscourts NVD 109469 56 0
Case2:15-cv-01512-JCM-CWH
2:15-cv-01512-JCM-CWH Document
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DAVID C. SHONKA
Acting General Counsel
GREGORY A. ASHE
BRIAN S. SHULL
Federal Trade Commission
600 Pennsylvania Avenue NW
Washington, DC 20850
Telephone: 202-326-3719 (Ashe)
Telephone: 202 -326-3720 (Shull)
Facsimile: 202-326-3768
Email: [email protected], [email protected]
DANIEL G. BOGDEN
United States Attorney
BLAINE T. WELSH
Assistant United States Attorney
Nevada Bar No. 4790
333 Las Vegas Blvd. South, Suite 5000
Las Vegas, Nevada 89101
Phone: (702) 388-6336
Facsimile: (702) 388-6787
Attorneys for Plaintiff
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
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v.
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Defendants.
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Plaintiff, the Federal Trade Commission (FTC), filed its Complaint for Permanent
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Injunction and Other Equitable Relief (Complaint) for a permanent injunction and other
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equitable relief in this matter, pursuant to Section 13(b) of the Federal Trade Commission Act
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(FTC Act), 15 U.S.C. 53(b). Pursuant to Federal Rule of Evidence 408 and the protections
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afforded therein, the FTC and Defendant Jason Kotzker stipulate to the entry of a Final Order for
Permanent Injunction and Settlement of Claims (Order) to resolve all matters in dispute in this
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FINDINGS
By stipulation of the parties, the Court finds as follows:
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1. This is an action by the FTC instituted under Section 13(b) of the FTC Act, 15 U.S.C.
53(b). The Complaint alleges that Defendants participated in unfair acts or practices in
violation of Section 5 of the FTC Act, 15 U.S.C. 45, in connection with the disclosure
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injunctive relief and equitable monetary relief for Defendants alleged unfair acts or
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3. The Stipulating Defendant neither admits nor denies any of the allegations in the
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Complaint, except as specifically stated in this Order. Only for purposes of this action,
the Stipulating Defendant admits the facts necessary to establish jurisdiction.
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4. The Stipulating Defendant waives all rights to appeal or otherwise challenge or contest
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the validity of this Order. The Stipulating Defendant also waives any claim that he may
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have held under the Equal Access to Justice Act, 28 U.S.C. 2412, concerning the
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prosecution of this action to the date of this Order. The FTC and the Stipulating
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Defendant each shall bear its own costs and attorneys fees.
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DEFINITIONS
For the purpose of this Order, the following definitions apply:
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1. Corporate Defendants means Sequoia One, LLC and Gen X Marketing Group, LLC,
and their successors and assigns.
2. Defendants means all of the Individual Defendants and the Corporate Defendants,
individually, collectively, or in any combination.
3. Financial product or service means any product, service, plan, or program
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represented, expressly or by implication, to: (a) provide any consumer, arrange for any
credit; (b) provide any consumer, arrange for any consumer to receive, or assist any
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consumer in receiving, credit, debit, or stored value cards; (c) improve, repair, or arrange
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to improve or repair, any consumers credit record, credit history, or credit rating; or (d)
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provide advice or assistance to improve any consumers credit record, credit history, or
credit rating.
4. Individual Defendants means Jason A. Kotzker, John E. Bartholomew, Jr., Theresa D.
Bartholomew, and Paul T. McDonnell.
5. Lender means any Person who provides or issues loans or other extensions of credit.
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7. Sensitive Personal Information means any of the following about a consumer: (a)
Social Security number; (b) financial institution account number; (c) credit or debit card
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information; or (d) any other information by which a consumers financial account can be
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known.
ORDER
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restrained and enjoined from, or assisting others engaged in, selling, transferring, or
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otherwise disclosing the Sensitive Personal Information of a consumer (other than the
Stipulating Defendant and his immediate family) to any Person; provided, however, that
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this Section I shall not prohibit the Stipulating Defendant from transferring or otherwise
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payment for any product or service sold by that Stipulating Defendant directly to that
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consumer and for which that Stipulating Defendant has the consumers express, informed
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II.
IT IS FURTHER ORDERED that the Stipulating Defendant and his officers, agents,
employees, and attorneys, and those Persons or entities in active concert or participation
with any of them who receive actual notice of this Order by personal service, facsimile
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with the advertising, marketing, promotion, offering for sale, or selling of any Financial
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product or service, are hereby permanently restrained and enjoined from misrepresenting
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A. The likelihood that any Person will obtain a loan or other extension of credit; and
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B. The terms or rates that are available for any loan or other extension of credit.
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III.
IT IS FURTHER ORDERED that the Stipulating Defendant and his officers, agents,
employees, and attorneys, and those Persons or entities in active concert or participation
with any of them who receive actual notice of this Order by personal service, facsimile
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transmission, email, or otherwise, whether acting directly or indirectly, in connection
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with the advertising, marketing, promotion, offering for sale, or selling of any product or
service, are hereby permanently restrained and enjoined from misrepresenting or assisting
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or service;
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including, but not limited to, the likelihood of a consumer obtaining a full or partial
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refund, or the circumstances in which a full or partial refund will be provided to the
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consumer; and
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D. Any other fact material to consumers concerning any product or service, such as: the
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total costs; any material restrictions, limitations, or conditions; or any material aspect
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CONSUMER INFORMATION
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IV.
IT IS FURTHER ORDERED that the Stipulating Defendant and his officers, agents,
employees, and attorneys, and those Persons or entities in active concert or participation
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with any of them who receive actual notice of this Order by personal service, facsimile
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information related to redress, the Stipulating Defendant must provide it, in the form
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address, telephone number, email address, social security number, other identifying
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credit card, bank account, or other financial account) that any Defendant obtained
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prior to entry of this Order in connection with the marketing or offering of payday
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C. Failing to destroy such customer information in all forms in their possession, custody,
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or control within thirty (30) days after receipt of written direction to do so from a
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representative of the FTC.
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D. Provided, however, that customer information need not be disposed of, and may be
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V.
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entered in favor of the FTC against the Stipulating Defendant, jointly and severally
with any other Defendant in this action against whom judgment may be entered, as
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submitted to the FTC, namely the Financial Statement of Individual Defendant Jason
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E. The suspension of the judgment will be lifted as to the Stipulating Defendant if, upon
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motion by the FTC, the Court finds that the Stipulating Defendant failed to disclose
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any material asset, materially misstated the value of any asset, or made any other
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F. If the suspension of the judgment is lifted, the judgment becomes immediately due as
to the Stipulating Defendant in the amount specified in Subsection A above (which
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the parties stipulate only for purposes of this Section represents the consumer injury
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alleged in the Complaint), less any payment previously made pursuant to this Section,
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G. All money paid to the FTC pursuant to this Order may be deposited into a fund
administered by the FTC or its designee to be used for equitable relief, including
consumer redress and any attendant expenses for the administration of any redress
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FTC may apply any remaining money for such other equitable relief (including
the Defendants practices alleged in the Complaint. Any money not used for such
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disgorgement. Defendants have no right to challenge any actions the FTC or its
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title, and interest in all assets transferred pursuant to this Order and may not seek the
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I. The facts alleged in the Complaint will be taken as true, without further proof, in any
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J. The facts alleged in the Complaint establish all elements necessary to sustain an
action by the FTC pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11
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U.S.C. 523(a)(2)(A), and this Order will have collateral estoppel effect for such
purposes.
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Stipulating Defendant previously submitted to the FTC, may be used for collecting
and reporting on any delinquent amount arising out of this Order, in accordance with
31 U.S.C. 7701.
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L. Upon written request from a representative of the FTC, any consumer reporting
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agency may furnish consumer reports concerning the Stipulating Defendant, pursuant
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ORDER ACKNOWLEDGMENTS
VI.
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B. For five 5 years after entry of this Order, the Stipulating Defendant for any business
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that such Defendant, individually or collectively with any other Defendants, is the
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majority owner or controls directly or indirectly, must deliver a copy of this Order to:
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(1) all principals, officers, directors, and LLC managers and members; (2) all
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subject matter of the Order; and (3) any business entity resulting from any change in
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structure as set forth in the Section titled Compliance Reporting. Delivery must occur
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within 7 days of entry of this Order for current personnel. For all others, delivery
must occur before they assume their responsibilities.
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C. From each individual or entity to which the Stipulating Defendant delivered a copy of
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this Order, the Stipulating Defendant must obtain, within 30 days, a signed and dated
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COMPLIANCE REPORTING
VII.
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to the FTC:
A. One year after entry of this Order, the Stipulating Defendant must submit a
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1. The Stipulating Defendant must: (a) identify the primary physical, postal, and
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Defendant; (b) identify all of the Stipulating Defendants businesses by all of their
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names, telephone numbers, and physical, postal, email, and Internet addresses; (c)
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describe the activities of each business, including the goods and services offered,
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the means of advertising, marketing, and sales, and the involvement of any other
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know due to his own involvement); (d) describe in detail whether and how the
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Stipulating Defendant is in compliance with each Section of this Order; and (e)
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2. Additionally, the Stipulating Defendant must: (a) identify all telephone numbers
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and all physical, postal, email and Internet addresses, including all residences; (b)
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identify all business activities, including any business for which the Stipulating
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in which the Stipulating Defendant has any ownership interest; and (c) describe in
B. For 10 years following entry of this Order, the Stipulating Defendant must submit a
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compliance notice, sworn under penalty of perjury, within 14 days of any change in
the following:
1. The Stipulating Defendant must report any change in: (a) any designated point of
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contact; or (b) any entity that the Stipulating Defendant has any ownership
interest in or controls directly or indirectly that may affect compliance obligations
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arising under this Order, including: creation, merger, sale, or dissolution of the
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entity or any subsidiary, parent, or affiliate that engages in any acts or practices
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2. Additionally, the Stipulating Defendant must report any change in: (a) name,
including aliases or fictitious name, or residence address; or (b) title or role in any
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business activity, including any business for which the Stipulating Defendant
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the Stipulating Defendant has any ownership interest, and identify the name,
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C. The Stipulating Defendant must submit to the FTC notice of the filing of any
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D. Any submission to the FTC required by this Order to be sworn under penalty of
perjury must be true and accurate and comply with 28 U.S.C. 1746, such as by
concluding: I declare under penalty of perjury under the laws of the United States of
America that the foregoing is true and correct. Executed on:_____ and supplying
the date, signatorys full name, title (if applicable), and signature.
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courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau
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Washington, DC 20580. The subject line must begin: FTC v. Sequoia One, et al.
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RECORDKEEPING
VIII. IT IS FURTHER ORDERED that the Stipulating Defendant must create certain records
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for 10 years after entry of the Order, and retain each such record for 5 years.
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Specifically, the Stipulating Defendant for any business that the Stipulating Defendant,
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transferred or disclosed, which includes the consumers name, phone number, and
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address; and the manner, time, place, and method of the authorization;
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B. Accounting records showing the revenues from all goods or services sold, all costs
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incurred in generating those revenues, and the resulting net profit or loss;
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employee or otherwise, that persons: name, addresses, and telephone numbers; job
title or position; dates of service; and, if applicable, the reason for termination;
D. Records of all consumer complaints and refund requests, whether received directly or
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E. All records necessary to demonstrate full compliance with each provision of this
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COMPLIANCE MONITORING
IX.
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Defendants compliance with this Order, including the financial representations upon
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which part of the judgment was suspended and any failure to transfer any assets as
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A. Within 14 days of receipt of a written request from a representative of the FTC, the
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information, which must be sworn under penalty of perjury; appear for depositions;
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and produce documents, for inspection and copying. The FTC is also authorized to
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obtain discovery, without further leave of Court, using any of the procedures
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B. For matters concerning this Order, the FTC is authorized to communicate directly
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representatives of the FTC to interview any employee or other person affiliated with
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the Stipulating Defendant who has agreed to such an interview. The person
C. The FTC may use all other lawful means, including posing, through its
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Defendant, without the necessity of identification or prior notice. Nothing in this
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Order limits the FTCs lawful use of compulsory process, pursuant to Sections 9 and
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ENTRY OF JUDGMENT
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IT IS FURTHER ORDERED that there is no just reason for delay of entry of this
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judgment, and that, pursuant to Federal Rule of Civil Procedure 54(b), the Clerk
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immediately shall enter this Order as a final judgment as to defendant Jason A. Kotzker.
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RETENTION OF JURISDICTION
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XI.
IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for
purposes of construction, modification, and enforcement of this Order.
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IT IS SO ORDERED:
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________________________________________
UNITED STATES DISTRICT JUDGE
November 2, 2016
DATED:______________________________
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