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UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDA
Case No. 16-20122-CIV-MORENO
ROBB EVANS &ASSOCIATES LLC as Receiverfor WORLD LAW DEBT SERVICES, LLC andWORLD LAW PROCESSING, LLC, and theirsuccessors, assigns, affiliates, or subsidiaries, andeach of them, by whatever names each might beknown, and FAMILY CAPITAL INVESTMENT &MANAGEMENT LLC, and its successors, assigns,affiliates, or subsidiaries, and each of them, bywhatever names each might be known,
Plaintiff,
v.
AKSIBAN LLC, a Delaware limited liabilitycompany,
Defendant.
MOTION FOR ENTRY OF DEFAULT JUDGMENT AGAINST DEFENDANT
Plaintiff Robb Evans &Associates LLC as Receiver ("Receiver") over World Debt
Services, LLC and World Law Processing, LLC, and their successors, assigns, affiliates, or
subsidiaries, and each of them, by whatever names each might be known, and Family Capital
Investment &Management, LLC, and its successors, assigns, affiliates, or subsidiaries, and each
of them, by whatever names each might be known ("Plaintiff') hereby moves the Court for entry
of a judgment by default against defendant Aksiban LLC, a Delaware limited liability company
("Defendant" or "Aksiban"), pursuant to Rule 55(b) of the Federal Rules of Civil Procedure.
108656723.1
Case 1:16-cv-20122-FAM Document 25 Entered on FLSD Docket 08/29/2016 Page 1 of 6
Plaintiff submits the following in support of entry of a default judgment against Defendant
Aksiban.l
1. Defendant Aksiban is anon-natural person and is not subject to the potential
exceptions to entry of a default judgment applicable to an infant or incompetent or a person in
military service or otherwise exempted under the Servicemembers Civil Relief Act (50 U.S.C.
App. § 521).
2. Defendant has not appeared in this action despite having been duly served with
the Summons and Complaint in this matter. Defendant was required to file a responsive pleading
to the Complaint on or before February 12, 2016.
3. Defendant failed to file a response to the Complaint within the date by which its
responsive pleading was due or at any time thereafter, and Defendant Aksiban has not made an
appearance in this action.
4. The default of Aksiban was entered by the Clerk of the Court on February 26,
2016. A true and correct copy of the Clerk's Default is attached to the Declaration of Gary
Owen Canis ("Canis Declaration") as Exhibit 1.
5. Plaintiff seeks entry of a default judgment against Aksiban as follows:
A. On account of its first, second and third claims for relief, for avoidance of the
transfer of title to Aksiban to the following real property pursuant to Florida Stat. section
726.108 and granting Plaintiff Receiver recovery from Aksiban of (a) the legal and beneficial
ownership interest in the real property commonly described as 100 Birch Road, Apartment
2303F, Fort Lauderdale, Florida and legally described in Exhibit 4 to the Complaint ("Birch
Property"), a copy of which legal description is also set forth in Exhibit 5 to the Declaration of
Brick Kane ("Kane Declaration") filed in support of this Motion, and (b) the legal and beneficial
ownership interest in the real property commonly described as 100 N. Federal Hwy., Apartment
' On August 16, 2016, the Court conducted a status conference in this matter and directedPlaintiff to file a motion for entry of default judgment by 12 p.m. on August 30, 2016. Order onDefault Judgment, Doc. 22. This motion is timely filed pursuant to the Court's Order on DefaultJudgment.
2108656723.1
Case 1:16-cv-20122-FAM Document 25 Entered on FLSD Docket 08/29/2016 Page 2 of 6
1215, Fort Lauderdale, Florida 33301 and legally described in Exhibit 5 to the Complaint
("Federal Property"), a copy of which legal description is also set forth in Exhibit 6 to the Kane
Declaration;
B. On account of its fourth and fifth claims for relief, for judgment that the Birch
Property and the Federal Property constitute property of the receivership estate over which the
Receiver is appointed in a related action, that Aksiban holds the legal and beneficial ownership
interest in the Birch Property and the Federal Property in constructive trust for the benefit of the
receivership estate over which the Receiver is appointed in a related action, and that the Receiver
is entitled to recover from Aksiban the legal and beneficial ownership interest in the Birch
Property and the Federal Property.
6. This application is supported by Plaintiff's Request for Judicial Notice, the Canis
Declaration concerning the entry of default and non-appearance by Defendant, and by the Kane
Declaration establishing the Receiver's right to recover the legal and beneficial interest in the
Birch Property and Federal Property.
7. This Motion is further supported by the memorandum of points and authorities
filed concurrently herewith and proposed Judgment lodged herewith.
WHEREFORE, Plaintiff prays for entry of a default judgment against Aksiban as
follows:
A. On account of its first, second and third claims for relief, for avoidance of the
transfer of title to Aksiban to the Birch Property and Federal Property pursuant to Florida Stat.
section 726.108 and granting Plaintiff Receiver recovery from Aksiban of (a) the legal and
beneficial ownership interest in the Birch Property, and (b) the legal and beneficial ownership
interest in the Federal Property;
B. On account of its fourth and fifth claims for relief, for judgment that the Birch
Property and the Federal Property constitute property of the receivership estate over which the
Receiver is appointed in the related action Consumer Financial Protection Bureau v. Orion
Processing LLC, etc., et al., Case No. 15-23070-Civ-COOKE/TORRES pending in this Court,
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Case 1:16-cv-20122-FAM Document 25 Entered on FLSD Docket 08/29/2016 Page 3 of 6
that Aksiban holds the legal and beneficial ownership interest in the Birch Property and the
Federal Property in constructive trust for the benefit of Plaintiff and the receivership estate over
which the Receiver is appointed in a related action, and that the Receiver is entitled to recover
from Aksiban the legal and beneficial ownership interest in the Birch Property and the Federal
Property.
Dated August 29, 2016 Respectfully submitted,
By: /s/ Michael E. StrauchMerrick L. GrossFlorida Bar No. 716677Michael E. StrauchFlorida Bar No. 13988CARLTON FIELDSMiami Tower100 S.E. 2"d Street, Suite 4200Miami, Florida 33131Tel: (305) 530-0050Fax: (305) 530-0055E-mail: [email protected]
powers@carltonfields. [email protected]@carltonfields.com
Local Counsel for Plaintiff
By: /s/Gary Owen CarisGary Owen CarisAppearing Pro Hac ViceCalifornia Bar No. 088918Lesley Anne HawesAppearing Pro Hac ViceCalifornia Bar No. 117101DIAMOND MCCARTHY LLP1999 Avenue of the Stars, Suite 1100Los Angeles, CA 90067Tel: (310) 651-2997Fax: (424) 253-1101E-mail: [email protected]
lhawes@diamondmccarthy. comLead Counsel for Plaintiff
4108656723.1
Case 1:16-cv-20122-FAM Document 25 Entered on FLSD Docket 08/29/2016 Page 4 of 6
CERTIFICATE OF GOOD FAITH CONFERENCE; UNABLE TO CONFER
Pursuant to Local Rule 7.1(a)(3)(B), I hereby certify that Defendant Aksiban, LLC, the
only other party in this action, was defaulted by the Clerk of Court on February 26, 2016, has not
made an appearance in the case, has made no contact with Plaintiff and its current contact
information is iu~kuown to the undersigned. Accordingly, the undersigned has not been able to
confer with defendant Aksiban LLC regarding the relief sought in this motion.
Dated this 29`" day of August, 2016, at Los Angeles, California.
/s/ Gary Owen CarisGary Owen CarisAppearing Pro Hac ViceCalifornia Bar No. 088918Lesley Anne HawesAppearing Pro Hac ViceCalifornia Bar No. 117101DIAMOND MCCARTHY LLP1999 Avenue of the Stars, Suite 1100Los Angeles, CA 90067Tel: (310) 651-2997Fax: (424) 253-1101E-mail: [email protected]
lhawes@diamondmccarthy. com
5108656723.1
Case 1:16-cv-20122-FAM Document 25 Entered on FLSD Docket 08/29/2016 Page 5 of 6
UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDA
Case No. 16-20122-CIV-MORENO
ROBB EVANS &ASSOCIATES LLC as Receiverfor WORLD LAW DEBT SERVICES, LLC andWORLD LAW PROCESSING, LLC, and theirsuccessors, assigns, affiliates, or subsidiaries, andeach of them, by whatever names each might beknown, and FAMILY CAPITAL INVESTMENT &MANAGEMENT LLC, and its successors, assigns,affiliates, or subsidiaries, and each of them, bywhatever names each might be known,
Plaintiff,
v.
AKSIBAN LLC, a Delaware limited liabilitycompany,
Defendant.
MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR ENTRY OF DEFAULTJUDGMENT AGAINST DEFENDANT [F.R.C.P. 55(b)]
Plaintiff Robb Evans &Associates LLC as Receiver ("Receiver") over World Debt
Services, LLC and World Law Processing, LLC, and their successors, assigns, affiliates, or
subsidiaries, and each of them, by whatever names each might be known, and Family Capital
Investment &Management, LLC, and its successors, assigns, affiliates, or subsidiaries, and each
of them, by whatever names each might be known ("Plaintiff') hereby submits its Memorandum
of Law in support of entry of a judgment by default against defendant Aksiban LLC, a Delaware
limited liability company ("Defendant" or "Aksiban"), pursuant to Rule 55(b) of the Federal
Rules of Civil Procedure.
I. INTRODUCTION
Plaintiff filed a complaint against Aksiban on January 8, 2016 asserting five claims for
relief focused on the recovery for the receivership estate of two real properties titled to Aksiban
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Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 1 of 14
and paid for with receivership funds. Aksiban is a Delaware limited liability company.
Complaint, para.l0. Plaintiff served the summons and complaint on its registered agent for
service of process on January 22, 2016. Doc. No. 12. The proof of service was filed with the
Court on February 3, 2016. Doc. No.12. Aksiban has not responded to the complaint or made
an appearance in the action. Aksiban has not contacted Plaintiff since it was served with the
summons and Complaint. Declaration of Gary Owen Caris ("Caris Decl."), para. 5. Aksiban's
default was entered by the Clerk on February 26, 2016 pursuant to an order of the Court directing
the entry of the default. Doc. Nos. 13 and 14. Plaintiff Receiver now seeks entry of a default
judgment against Aksiban.
II. STATEMENT OF FACTS
The Receiver is a federal equity receiver appointed by this Court in the related action
brought by the Consumer Financial Protection Bureau styled as Consumer Financial Protection
Bureau v. Orion Processing, LLC, etc., et al., U.S.D.C., S. D. Fla. Case No.1:15-cv-23070-MGC
("CFPB Action"). Complaint, paras. 1-4. The Court in the CFPB Action issued multiple orders
pursuant to which the Receiver was appointed over various defendants and related entities,
including the Preliminary Injunction with Asset Freeze, Appointment of Receiver, Expedited
Discovery, and Other Equitable Relief as to Defendants Orion Processing, LLC, Bradley James
Haskins, World Law Debt Services, LLC and World Law Processing, LLC ("World Law
Preliminary Injunction ") attached as Exhibit 2 to the Complaint herein.
Pursuant to the World Law Preliminary Injunction, the Receiver was appointed receiver
over the entities World Law Debt Services, LLC ("WL Debt") and World Law Processing, LLC
("WL Processing") and their successors, assigns, affiliates, or subsidiaries, and each of them, by
whatever names each might be known, provided that the Receiver has reason to believe they are
owned or controlled in whole or in part by any of the defendants in the CFPB Action. Bradley
James Haskins ("Haskins") is one of the defendants in the CFPB Action, and he owns and
controls WL Debt and WL Processing. Complaint para. 11. The Complaint against Aksiban
alleges that the defendant is also owned and controlled by Haskins and that based on the
common ownership and control of WL Debt, WL Processing and Aksiban by Haskins, Aksiban
is an affiliate of WL Debt and WL Processing and a Receivership Defendant under the terms of
the World Law Preliminary Injunction. Complaint para. 11.
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Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 2 of 14
Another entity owned and controlled by Haskins and therefore also a Receivership
Defendant is WLD Price Global, Inc. ("WLD Price Global"). Complaint, para. 14. WLD Price
Global operated what purported to be a consortium of international law firms through World
Law Group. Complaint para. 14. WLD Price Global and various other entities affiliated with
WL Debt and WL Processing through the "World Law Group" consortium which were under the
ownership and control of Haskins purported to provide debt relief services and engaged in
practices that violated consumer protection laws, including without limitation the Telemarketing
Sales Rules ("TSR"), 16 C.F.R. section 310.3(a)(2)(II) and (x) and the Consumer Financial
Protection Act ("CFPA"), 12 U.S.C. sections 5531(a) and 5536(a)(1) and 15 U.S.C. section
6102(c)(2) and the laws of several states. These entities also engaged in deceptive and fraudulent
practices in violation of applicable law to the injury of consumers by (a) collecting advance fees
from consumers in connection with promises to provide consumers debt relief services and legal
representation by local attorneys in their state and not providing the promised legal
representation; and (b) engaging in deceptive marketing practices for the debt relief services and
legal representation services they promised to provide consumers (the "fraudulent scheme").
Complaint para. 15. WLD Price Global and other entities owned and controlled by Haskins
participated in the fraudulent scheme by, among other things, their receipt and transfer of funds
generated by the fraudulent scheme. Complaint para.l6. WLD Price Global received not less
than $6.8 million obtained from consumers as part of the fraudulent scheme. Complaint para.
22.
Since at least May 2013, the State of North Carolina and the State of Connecticut
commenced actions or proceedings against certain defendants in the CFPB Action including
Haskins, the World Law Group and WL Debt, alleging violations based on applicable state
consumer protection laws arising since in or about 2010 when Haskins and World Law Group
began their debt relief services and began perpetrating the fraudulent scheme. Complaint para.
17. Since at least 2010, state and federal government agencies and consumers who dealt with
WL Debt and WL Processing had potential claims against WL Debt and WL Processing and
their affiliate WLD Price Global for violation of applicable consumer protection laws. Though
the amount of the claims of such consumers and government agencies ("Consumer Injury
Claims") had not yet been finally determined at the outset of the instant action (Complaint para.
18), nn July 5, 2016, the CFPB filed a motion for entry of default judgments against certain of
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Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 3 of 14
the defendants in the CFPB Action, including WL Debt and WL Processing. See Doc. No. 97 in
the CFPB Action of which Plaintiff requests the Court take judicial notice. The Court in the
CFPB Action entered a default judgment for equitable monetary relief against WL Debt and WL
Processing in the amount of $106,813,049 on August 1, 2016. See Doc. No. 104 in the CFPB
Action of which Plaintiff requests the Court take judicial notice, and a copy of which is attached
to the Kane Declaration as Exhibit 1. In addition, defendants Derin Scott and David Klein have
recently stipulated to judgment in favor of the CFPB, jointly and severally, in the identical sum
of $106,813,049. See Joint Motion of Plaintiff and Defendants Derin Scott and David Klein and
Relief Defendant Shannon Scott to Enter Stipulated Final Judgment and Order filed July 19,
2016, Doc. No. 101 in the CFPB Action, and the Stipulated Final Judgment, Doc. No. 105, of
which Plaintiff requests the Court take judicial notice. A copy of the entered Stipulated Final
Judgment is attached to the Kane Declaration as Exhibit 2. ~ As a result, at all times relevant to
the relief sought in the Complaint, and since at least January 1, 2011, the Receivership
Defendants and WLD Price Global were and are presently insolvent. Complaint paras. 18 and
19.
Aksiban is the record title holder to two real properties located in Fort Lauderdale,
Florida. Complaint para. 13. One of the properties is commonly described as 100 Birch Road,
Apartment 2303F, Fort Lauderdale, FL 33316 ("Birch Property") and legally described in
Exhibit 4 to the Complaint. Complaint Para. 13. The other property is located at 100 N. Federal
Hwy., Apartment 1215, Fort Lauderdale, FL 33301 ("Federal Property") and legally described in
Exhibit 5 to the Complaint. Complaint para. 13.
All of the funds for Aksiban's payment of the purchase price of the Birch Property and
the Federal Property were provided by and transferred from Receivership Defendant WLD Price
Global. Specifically, on or about October 11, 2012, WLD Price Global transferred the sum of
$331,000.00 in cash to an escrow to pay the purchase price for the Federal Property on behalf of
Aksiban. Complaint para. 20. After payment of the purchase price by WLD Price Global,
Aksiban took title to the Federal Property on October 24, 2012 and has held title to the Federal
Property since that date. The transfer of funds from WLD Price Global and transfer of title to the
' The CFPB has been unable to locate Haskins and has recently filed a motion for authorizationto serve him by alternative means. See Doc. No. 108 in the CFPB Action. The CFPB believesHaskins fled to Europe after the CFPB Action commenced. Doc. No. 108 and supportingaffidavits, of which the Receiver requests the Court take judicial notice.
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Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 4 of 14
Federal Property to Aksiban are referred to for convenience as the "Federal Transfer."
Complaint para. 20.
In addition, on or about May 22, 2013, WLD Price Global transferred the sum of
$40,000.00 cash to an escrow to pay in part the purchase price for the Birch Property on behalf
of Aksiban. Complaint para. 21. Then, on or about May 29, 2013, WLD Price Global
transferred the sum of $600,000.00 cash to an escrow to pay the balance of the purchase price for
the Birch Property on behalf of Aksiban. Complaint para. 21. Aksiban took title to the Birch
Property on or about July 12, 2013 and has held title to the Birch Property since that date.
Complaint, para. 21. For convenience, the two transfers of funds from WLD Price Global for the
purchase of the Birch Property and the transfer of title to the Birch Property to Aksiban in
connection therewith are referred to as the "Birch Transfer." Complaint para. 21.
WLD Price Global received no consideration and received no reasonably equivalent
value in exchange for the Federal Transfer and the Birch Transfer. Complaint para. 24. Further,
the Federal Transfer and the Birch Transfer were made from funds the source of which were
funds obtained from consumers as part of the fraudulent scheme. Complaint para. 23. Aksiban
did not receive the Federal Transfer and the Birch Transfer in good faith and for a reasonably
equivalent value. Complaint para. 25.
Plaintiff has asserted five claims for relief against Aksiban, all of which seek recovery of
the Birch Property and Federal Property for the benefit of the receivership estate over which
Plaintiff is appointed in the CFPB Action. Plaintiff has asserted three claims for recovery of
actual and constructive fraudulent transfers to void the Federal and Birch Transfers and return
title to those properties to the Receiver on behalf of the receivership estate (Florida Uniform
Fraudulent Transfer Act, Florida Stat. § 726.101 et. seq.), a fourth claim for relief for turnover of
receivership property, and a fifth claim for relief for imposition of a constructive trust for the
turnover of the Federal Property and the Birch Property based on the unjust enrichment of
Aksiban in acquiring these properties without consideration by Aksiban and by using funds of
injured consumers wrongfully obtained by the Receivership Defendants prior to the Receiver's
appointment.
108656778.1
Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 5 of 14
III. PLAINTIFF IS ENTITLED TO A DEFAULT JUDGMENT FOR THE LEGAL
AND BENEFICIAL OWNERSHIP OF THE FEDERAL PROPERTY AND THE
BIRCH PROPERTY
Rule 55(b)(2) of the Federal Rules of Civil Procedure authorizes the Court to enter a
default judgment on application by a party when the defendant has failed to plead or defend the
action. In evaluating a motion for entry of default judgment, all well-pled allegations of the
Complaint are deemed to be admitted. Eagle Hospital Physicians v. SRG Consulting, 561 F. 3d
1298, 1307 (11th Cir. 2009); Buchanan v. Bowman, 820 F. 2d 359, 361(1 lth Cir. 1987). "A
`defendant, by his default, admits the plaintiff's well-pleaded allegations of fact, is concluded on
those facts by the judgment, and is barred from contesting on appeal the facts thus established."'
Eagle Hospital Physicians v. SRG Consulting, 561 F. 3d at 1307 (quoting Nishimatsu Const. Co.
v. Houston Nat'l Bank, 515 F. 2d 1200, 1206 (5th Cir. 1975) and citing Buchanan v. Bowman,
820 F.2d at 361). "A default judgment is unassailable on the merits" if it is supported by "well-
pleaded allegations." Nishimatsu Const. Co. v. Houston Nat'l Bank, 515 F. 2d at 1206.
Plaintiff is entitled to have a default judgment entered against Aksiban based on the well-
pled allegations of the Complaint which support the relief requested.
1. First Claim for Relief for Recovery of Fraudulent Transfers Made
with Actual Intent to Hinder, Delay and Defraud Creditors
Florida has enacted the Uniform Fraudulent Transfer Act which was in effect when the
transactions at issue occurred. Section 726.105(1)(a) of the Florida Statutes provides that a
transfer made by a debtor is fraudulent as to an existing or future creditor of the debtor if the
debtor "made the transfer . , . (a) with actual intent to hinder, delay or defraud any creditor of the
debtor."
The Eleventh Circuit as well as this District Court have held that federal equity receivers
can pursue recovery of fraudulent transfers on behalf of the receivership entities over which they
were appointed. See Wiand v. Lee, 753 F. 3d 1194 (l lt" Cir. 2014) (affirming fraudulent transfer
judgment in favor of receiver in federal receivership arising out of fraudulent investment
scheme); Sallah v. Worldwide ClearingLLC, 860 F. Supp. 2d 1329, 1334-1335 (S.D. Fla. 2011),
af~d 559 Fed. Appx. 988 (l l~h Cir. 2011) ("after a corporation has been placed into receivership,
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Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 6 of 14
it becomes a creditor with respect to assets which were fraudulently transferred away. In this
scenario, the principals, who were operating the illegal scheme, are debtors of the corporation for
their fraudulent activities. [Citation omitted.] Further, recipients of corporate assets are
transferees, regardless of whether they were aware of the wrongdoing of the principals"). See
also Obermaier v. Arnett, 2:02CV111FTM29DNF, 2002 WL 31654535 at *4 (M.D. Fla.
November 20, 2006), In re Sperry, 101 B.R. 763, 766 (Bankr. M.D. Fla. 1989) ("It is well settled
Florida law that where property is purchased by a debtor and title is taken in the name of another
to avoid creditors, the deed may be set aside as a fraudulent conveyance by all existing and
subsequent creditors"); Goldberg v. Chong, No. 07-20931—CIV, 2007 WL 2028792 at * 1 (S.D.
Fla. July 11, 2007) (concluding receiver could bring constructive fraudulent transfer claim on
behalf of receivership entities to recover fraudulently transferred assets of the receivership
entities). Numerous other courts have held that a federal equity receiver may recover assets
fraudulently transferred from the Receivership Defendants to third parties prior to the Receiver's
appointment under state fraudulent transfer statutes. See, e.g., Scholes v. Lehmann, 56 F. 3d 750
(7tn Cir. 1995); Janvey v. Democratic Senatorial Campaign Committee, Inc., 712 F. 3d 185 (Stn
Cir. 2013); Donell v. Kowell, 533 F. 3d 762 (9`" Cir. 2008); Commodity Futures Trading
Commission v. Chilcott Portfolio Management, Inc., 713 F. 2d 1477 (10 h Cir. 1983).
The Receiver's complaint alleges that Haskins is a principal of, and directly or indirectly
owns and controls, various World Law entities, including WL Debt, WL Processing and WLD
Price Global, and orchestrated a fraudulent scheme through the World Law Group consortium,
giving rise to Consumer Injury Claims against WL Debt, WL Processing and WLD Price Global.
Complaint pass. 14, 15, 16, 18. The Complaint alleges that Haskins also directly or indirectly
owned and controlled Aksiban, and that the assets of WLD Price Global were transferred to pay
the entire purchase price for the Federal Property and the Birch Property with title placed in the
name of Aksiban. Complaint pass. 20, 21, 23. As a result of Haskins' conduct, the sum of
$331,000 in funds from WLD Price Global was transferred to purchase and place in Aksiban's
name the Federal Property and a total of $640,000 in funds from WLD Price Global was
transferred to purchase and place in Aksiban's name the Birch Property. Complaint pass. 20,
21. The Federal Transfer and Birch Transfer were made with actual intent to hinder, delay and
defraud creditors of WLD Price Global and the other Receivership Defendants, within the
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Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 7 of 14
meaning of Florida Uniform Fraudulent Transfer Act, Florida Stat. § 726.105(1)(a). Complaint
para. 28.
Section 726.108 of the Florida Uniform Fraudulent Transfer Act provides various
remedies that a creditor may obtain in an action for relief against a fraudulent transfer, including
avoidance of the transfer to the extent necessary to satisfy the creditor's claim and "subject to
applicable principles of equity and in accordance with applicable rules of civil procedure .. .
[a]ny other relief the circumstances may require." Florida Stat. § 726.108(1)(a) and (1)(c)3.
The Receiver seeks relief by obtaining the legal and beneficial ownership of the Federal Property
and the Birch Property based on the avoidance of the Federal Transfer and Birch Transfer,
consistent with the relief authorized under the foregoing provisions of the Florida Uniform
Fraudulent Transfer Act. Complaint para. 30. See also First State Bank of Clermont v. Fitch,
105 Fla. 435, 141 So. 299 (Fla. Sup. Ct. 1932) ("The rule is well established in this state that
where property is purchased by a debtor, and the title is taken in the name of another to avoid
creditors, the deed to such grantee is subject to be set aside by the creditors").
2. Second Claim for Relief to Avoid the Federal Transfer and Birch
Transfer as Constructive Fraudulent Transfers
Section 726.105(1)(b) provides that a transfer is also avoidable as a fraudulent transfer by
an existing or future creditor of the debtor where the transfer is made without the debtor
receiving
a reasonably equivalent value in exchange for the transfer ..., andthe debtor:
1. Was engaged or was about to engage in a business ortransaction for which the remaining assets of the debtor wereunreasonably small in relation to the business or transaction; ar
2. Intended to incur, or believed or reasonably should havebelieved, that he or she would incur, debts beyond his or her abilityto pay as they became due.
Plaintiff has asserted a claim under section 726.105(1)(b) for avoidance of the Federal
Transfer and the Birch Transfer as constructive fraudulent transfers because they were made
without WLD Price Global receiving a reasonable equivalent value for the funds transferred
from WLD Price Global to pay the purchase prices for the Federal Property and the Birch
Property, and WLD Price Global was engaged in or about to engage in transactions for which its
8108656778. ]
Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 8 of 14
remaining assets were unreasonably small. in relation to the business or transactions, or that
WLD Price Global intended to incur, or believed or should have believed it would incur, debts
beyond its ability to pay as they came due, including debts to the federal and state agencies
asserting claims against the Receivership Defendants and the Consumer Injury Claims.
Complaint para. 32. Plaintiff has specifically asserted that the Receivership Defendants and
WLD Price Global were insolvent at all times since at least January 1, 2011 and remain
insolvent. Complaint para. 19. Therefore, WLD Price Global could not reasonable believe that
it could pay its debts as they were incurred. See CFPB Judgments, Kane Decl., Exhs. 1 and 2
and para. 8. The Federal Transfer and the Birch Transfer were made in 2012 and 2013,
respectively. The Receiver therefore also seeks judgment for the legal and beneficial ownership
of the Federal Property and the Birch Property based on the avoidance of the Federal Transfer
and Birch Transfer in its second claim for relief. Goldberg v. Chong, No. 07-20931—CIV, 2007
WL 2028792 at *S (S.D. Fla. July 11, 2007) (granting summary judgment on receiver's
constructive fraudulent transfer claim).
3. The Third Claim for Relief Seeks Avoidance of the Federal Transfer
and Birch Transfer Based on the Lack of Reasonably Equivalent
Value and Insolvency of the Transferor
Section 726.106(1) of the Florida Uniform Fraudulent Transfer Act states:
A transfer made ... by a debtor is fraudulent as to a creditorwhose claim arose before the transfer was made ... if the debtormade the transfer ...without receiving a reasonably equivalentvalue in exchange for the transfer ...and the debtor was insolventat the time or the debtor became insolvent as a result of the transfer
Plaintiff has alleged that WLD Price Global and the other Receivership Defendants were
insolvent at all times since January 1, 2011, which predates the date of the Federal Transfer and
the Birch Transfer. Complaint para. 19. In its Third Claim for Relief, Plaintiff alleges that the
Federal Transfer and the Birch Transfer were made without WLD Price Global receiving a
reasonably equivalent value in exchange for the transfer and that WLD Price Global was
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Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 9 of 14
insolvent when the transfers were made or became insolvent as a result of the transfers.
Complaint para. 35. See CFPB Judgments, Kane Decl., Exhs.l and 2 and para. 8. As a result,
the Federal Transfer and the Birch Transfer are avoidable under section 726.106(1), and Plaintiff
is entitled to avoidance of those transfers and to obtain the legal and beneficial ownership of the
Federal Property and the Birch Property as a result.
4. Plaintiffs Fourth Claim for Relief for Turnover of Receivership
Pro er
Plaintiff has also asserted two other equitable claims for relief as to which the Receiver is
indisputably entitled to a default judgment against Aksiban. The Complaint alleges that based on
the direct or indirect ownership and control of WL Debt, WL Processing and WLD Price Global
by Haskins and his direct or indirect ownership and control of Aksiban, Aksiban is a
Receivership Defendant as defined in the World Law Preliminary Injunction, which defines
Receivership Defendants to include subsidiaries, affiliates, successors, and assigns of WL Debt
and WL Processing. Corporate entities are generally considered affiliates if they are owned or
controlled by the same person. See, e.g., Fla. Stat. section 726.102(1)(b) and 11 U.S.C. section
101(2)(b) (affiliates include corporations as to which 20 percent of more of their ownership is
held by the same person, the debtor). The Federal Property and Birch Property constitute
receivership assets since they are assets nominally titled to Aksiban, a Receivership Defendant,
and also constitute receivership property as the proceeds of ill-gotten gains received by Aksiban
from WLD Price Global generated through the illegal and fraudulent activities of the
Receivership Defendants. Complaint paras. 38 and 39. Plaintiff, as Receiver over all assets of
the receivership estate under the World Law Preliminary Injunction, has the exclusive right to
possession and control of receivership property (Complaint, Exhibit 2, Section XIII.B). Plaintiff
is therefore entitled to relief under the Fourth Claim for Relief for turnover of receivership
property by Aksiban to the Receiver.
10108656778.1
Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 10 of 14
5. Plaintiff Is Entitled to Judgment under Its Fifth Claim for Relief
Seeking to Recover the Federal Property and Birch Property from
Aksiban Based on Aksiban's Uniust Enrichment
Plaintiff's Fifth Claim for Relief asserts a claim for unjust enrichment and constructive
trust. It alleges that Aksiban obtained title to the Federal Property and the Birch Property with
funds from WLD Price Global. In turn, funds were received by WLD Price Global from other
Receivership Defendants, including WL Debt and WL Processing, as part of the illegal and
fraudulent debt relief services scheme operated by the Receivership Defendants funded by
monies paid by holders of Consumer Injury Claims. Complaint paras. 14-18, 20, 21, 43 and 45.
The Federal Transfer and Birch Transfer are assets transferred to Aksiban that rightfully belong
to the receivership estate for the benefit of creditors of the receivership estate, and the retention
of the transferred assets by Aksiban would leave Aksiban unjustly enriched. Complaint para. 44.
A claim for unjust enrichment arises where the complaining party has conferred a benefit
on the defendant, the defendant accepted and retained the benefit, and the circumstances make it
inequitable for the defendant to retain the benefit. See Virgilio v. Ryland Group, Inc., 680 F. 3d
1329, 1337 (1 lt" Cir. 2012); Goldberg v. Chong, No. 07-20931—CIV, 2007 WL 2028792 at *10
(S.D. Fla. July 11, 2007) (granting summary judgment on receiver's unjust enrichment claim).
Based on the Receiver's unjust enrichment claim and the circumstances of this case as
alleged in the Complaint and summarized above, the Receiver seeks judgment granting the
Receiver the legal and beneficial ownership interest in the Federal Property and the Birch
Property which were acquired by Aksiban solely with receivership funds provided by WLD
Price Global and which assets it would be inequitable for Aksiban to retain under the
circumstances. See In re Financial Federated Title &Trust, Inc., 273 B.R. 706 (Bankr. S.D. Fla.
2001) (granting bankruptcy trustee's motion for summary judgment for imposition of
constructive trust based on unjust enrichment claim where funds used to purchase defendants'
residence came from monies fraudulently generated from corporate Ponzi scheme), aff'd 347
F.3d 880 (11`" Cir. 2003); Crawford v. Silette, 608 F. 3d 275 (St" Cir. 2010) (in which the
iosbsb~~s ~
Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 11 of 14
receiver obtained an order to take control of and sell a condominium in Florida owned by a third
party based on an equitable lien granted by the Court where. the mortgage on the condominium
was satisfied with receivership funds).
IV. PLAINTIFF IS ENTITLED TO JUDGMENT VESTING TITLE IN THE
FEDERAL PROPERTY AND THE BIRCH PROPERTY IN PLAINTIFF AS
RECEIVER PURSUANT TO F.R. CIV. P. 70(b)
For all the reasons detailed above, the Receiver is entitled to the legal and beneficial
ownership of the Federal Property and the Birch Property. Rule 70 of the Federal Rules of Civil
Procedure provides the means by which judgment for specific property may be enforced by the
Court. Rule 70(b) provides:
If the real or personal property is within the district, the court —instead of ordering a conveyance —may enter a judgment divestingany party's title and vesting it in others. That judgment has theeffect of a legally executed conveyance.
Based on the avoidance of the Federal Transfer and Birch Transfer, the status of the
properties as receivership property and the Receiver's claim for unjust enrichment and
imposition of a constructive trust, the legal and beneficial ownership interest of the Federal
Property and Birch Property belong to Plaintiff as Receiver. It is appropriate that the Court's
judgment divest tide to those properties from Aksiban and vest title to the properties in the name
of Plaintiff as Receiver.
12108656778.1
Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 12 of 14
V. CONCLUSION
Plaintiff respectfully submits that it is entitled to a default judgment against defendant
Aksiban as requested in the motion which this Memorandum supports.
Dated August 29, 2016
Respectfully submitted,
By: /s/ Michael E. StrauchMerrick L. GrossFlorida Bar No. 716677Michael E. StrauchFlorida Bar No. 13988CARLTON FIELDSMiami Tower100 S.E. 2"d Street, Suite 4200Miami, Florida 33131Tel: (305) 530 — 0050Fax: (305) 530 — 0055E-mail: [email protected]
[email protected]@[email protected]
Local Counsel for Plaintiff
By: /s/Gary Owen CarisGary Owen CarisAppearing Pro Hac ViceCalifornia Bar No. 088918Lesley Anne HawesAppearing Pro Hac ViceCalifornia Bar No. 117101DIAMOND MCCARTHY LLP1999 Avenue of the Stars, Suite 1100Los Angeles, CA 90067Tel: (310) 651-2997Fax: (424) 253-1101E-mail: [email protected]
lhawes@diamondmccarthy. com
Lead Counsel for Plaintiff
13108656778.1
Case 1:16-cv-20122-FAM Document 26 Entered on FLSD Docket 08/29/2016 Page 13 of 14
UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF' FLORIDA
Case Na 16-20122-CIV-MOR~NO
ROBB EVANS &ASSOCIATES LLC as Receiverfor WORLD LAW DEBT SERVICES, LLC andWORLD LAW PROCESSING, LLC, and theirsuccessors, assigns, affiliates, or subsidiaries, andeach of them, by whatever names each might beknown, and FAMILY CAPITAL INVESTMENT &MANAGEMENT' LLC, and its successors, assigns,affiliates, or subsidiaries, and each of them, bywhatever names each might be known,
Plaintiff,
v.
AKSIBAN LLC, a Delaware limited liabilitycompany,
Defendant.
DECLARATION OF GARY OWEN CARIS IN SUPPORT OF MOTION FOR ENTRYOF DEFAULT JUDGMENT AGAINST DEFENDANT [F.R.C.P. 55(b)]
I, Uary Owen Caris, declare:
I am attorney at law duly admitted to practice before the courts of the state of
California and have been admitted to practice pro hac vice before the Court in this case and in
the related case filed by the Consumer Financial Protection Bureau pending before the Court
styled as Consumer Financial Protection Bureau v. Orion Processing, LLC, et al., U.S.D.C.,
S.D. Fla, Case No. 15-23070-Civ-Cooke/Torres ("CFPB Action"). I am a Partner in the firm of
Diamond McCarthy LLP, the lead counsel for plaintiff Robb Evans &Associates LLC as
Receiver over World Debt Services, LLC and World Law Processing, LLC, and their successors,
assigns, affiliates, or subsidiaries, and each of them, by whatever names each might be known,
and Family Capital Investment &Management, LLC, and its successors, assigns, affiliates, or
y41 i~fi70t:`1
Case 1:16-cv-20122-FAM Document 27 Entered on FLSD Docket 08/29/2016 Page 1 of 6
subsidiaries, and each of them, by whatever names each might be known ("Receiver") and
counsel for Plaintiff in the CFPB Action. If called upon to testify as to the facts set forth in this
declaration, I could and would testify competently thereto as the facts are personally known to
me to be true.
2. I am lead counsel for the Receiver in this action and in t11e receivership
proceeding in the related CFPB Action. On January 8, 2016, the Receiver filed a Complaint
initiating this action against defendant Aksiban LLC, a Delaware limited liability company. On
January 22, 2016, Aksiban LLC was served with the summons, Complaint and related
documents by its registered agent for service of process in Delaware, as reflected in the proof of
service filed in this action on February 3, 2016 as Document 12.
3, Defendant Aksiban LLC ("Defendant") was required to file a responsive pleading
to the Complaint by no later than February 12, 2016. Aksiban failed to file a responsive pleading
on or before February 22, 2016. Therefore, on February 25, 201 h, the Court entered its Order
Directing Clerk to Enter Default, Document 13.
4. On February 26, 2016, the Clerk entexed the Clerk's Default, a true and correct
copy of which is attached hereto as Exhibit 1.
5. No appearance has been made by Defendant in this action as of the date of this
Declaration, and the Receiver has received no contact from Defendant since the commencement
of this action and service of the Complaint.
I declare under penalty of perjury that the foregoing is true and correct and that this
Declaration was executed this ,~4 day of August 201 h at Los Angeles, California.
G~~[~~ ~ ~ l:N CARIS
299334330\V•I
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Case 1:16-cv-20122-FAM Document 27 Entered on FLSD Docket 08/29/2016 Page 3 of 6
Case 1.16-cv-20122-FAM Document 14 Entered on FLSD Docket Q2/26I2016 Pa,~e~1 ~,~
UNITED STATES DISTRICT COURTSOUTHERN riTS'f1tICT OF FT..ORTDA
ROBE VANS &ASSOCIATES, LLC, et ~[, CASE NUMBER7 :16—cv-20 ] 22—FAM
PLAIN'i'IC'P(5)
V.
AKSIBAN LLC,
DEFAULT BY CLERK F.R.Civ.P.55(a)
I)I3FLNDAN7'(5).
[t appearing that the defendants) herein, is/are in defKult for failure to appear, answer, or otherwise plead
to the complaint filed herein within the time required by law.
Default is hereby entered against defendants)
Aksiban, C.LC
as of course, on the date l~ebruary 26, 2016,
cc: lodge Federico A. Morenoitobb Evans &Associates, LLC
STF,VrN M. LARTMOR~CT,ERK OP COURT
DEFAULT RY CLERK r,R,Civ,P.55(n)
CV 37{Yi3/Gi)
Case 1:16-cv-20122-FAM Document 27 Entered on FLSD Docket 08/29/2016 Page 4 of 6
UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDA
Case No. 16-20122-CIV-MORENO
ROBB EVANS &ASSOCIATES LLC as Receiverfor WORLD LAW DEBT SERVICES, LLC andWORLD LAW PROCESSING, LLC, and theirsuccessors, assigns, affiliates, or subsidiaries, andeach of them, by whatever names each might beknown, and FAMILY CAPITAL INVESTMENT &MANAGEMENT LLC, and its successors, assigns,affiliates, or subsidiaries, and each of them, bywhatever names each might be known,
Plaintiff,
v.
AKSIBAN LLC, a Delaware limited liabilitycompany,
Defendant.
DECLARATION OF BRICK KANE IN SUPPORT OF MOTION FOR ENTRY OFDEFAULT JUDGMENT AGAINST DEFENDANT [F.R.C.P. 55(b)]
I, Brick Kane, declare:
I am the President and Chief Operating Officer of Robb Evans &Associates LLC.
Robb Evans &Associates LLC has been appointed as Receiver over World Law Debt Services,
LLC and World Law Processing, LLC, and their successors, assigns, affiliates, or subsidiaries,
and each of them, by whatever names each might be known, and Family Capital Investment &
Management, LLC, and its successors, assigns, affiliates, or subsidiaries, and each of them, by
whatever names each might be known (the "Receiver") in the related case filed by the Consumer
Financial Protection Bureau pending before the Court styled as Consumer Financial Protection
Bureau v. Orion Processing, LLC, et al., U.S.D.C., S.D. Fla. Case No. 15-23070-Civ-
Cooke/Torres ("CFPB Action"). If called upon to testify as to the facts set forth in this
194334837AV-I
Case 1:16-cv-20122-FAM Document 28 Entered on FLSD Docket 08/29/2016 Page 1 of 7
Declaration, I could and would testify competently thereto as the facts are true and within my
personal knowledge.
2. I am one of the members of Robb Evans &Associates LLC primarily responsible
for the administration and supervision of the receivership estate in the CFPB Action. The Court
in the CFPB Action issued multiple orders pursuant to which the Receiver was appointed over
various defendants and related entities, including the Preliminary Injunction with Asset Freeze,
Appointment of Receiver, Expedited Discovery, and Other Equitable Relief as to Defendants
Orion Processing, LLC, Bradley James Haskins, World Law Debt Services, LLC and World Law
Processing, LLC ("World Law Preliminary Injunction ") attached as Exhibit 2 to the Complaint
filed in this case. Pursuant to the World Law Preliminary Injunction, the Receiver was appointed
receiver over the entities Warld Law Debt Services, LLC ("WL Debt") and World Law
Processing, LLC ("WL Processing") and their successors, assigns, affiliates, or subsidiaries, and
each of them, by whatever names each might be known, provided that the Receiver has reason to
believe they are owned or controlled in whole or in part by any of the defendants in the CFPB
Action.
3. I am one of the members of the Receiver responsible for the analysis and
investigation of the Receivership Defendants, their business and financial records and their assets
and liabilities. I have personally reviewed many of the books and records of the entities subject
to the receivership in the CFPB Action, including financial and banking records of the
receivership entities WL Debt and WL Processing, as well as the related and affiliated entity
WLD Price Global, Inc. ("WLD Price Global"). I personally participated in the preparation of
two reports by the Receiver filed in the CFPB Action detailing the assets and liabilities of the
Receivership Defendants and their prior operations and activities. I am one of the members of
the Receiver responsible for locating and administering assets of the Receivership Defendants for
the benefit of the receivership estate in the CFPB Action. The facts set forth in this declaration
are facts which I know to be true of my own personal knowledge or I have gained knowledge of
the facts through my work in investigating, supervising and administering the receivership estate
294334877VV-I
Case 1:16-cv-20122-FAM Document 28 Entered on FLSD Docket 08/29/2016 Page 2 of 7
under the World Law Preliminary Injunction. I regularly monitor filings and activities in the
CFPB Action, particularly as they affect the receivership estate.
4. Bradley Haskins ("Haskins") is named as a defendant in the CFPB Action.
Haskins is the principal and owner of named receivership entities WL Debt and WL Processing.
Haskins was listed as the CEO of WLD Price Global in its latest corporate filing.
5. The Receiver filed this action against defendant Aksiban LLC, a Delaware limited
liability company ("Aksiban"), in order to recover for the benefit of the receivership estate two
real properties, title to which is held in the name of Aksiban but which were paid for with funds
transferred by WLD Price Global without any consideration received by WLD Price Global for
the transfers. As a Receivership Defendant, all assets of Aksiban constitute receivership
property subject to the exclusive possession and control of the Receiver pursuant to Section XIII
of the World Law Preliminary Injunction.
6. Based on the Receiver's investigation of the banking, financial and other records
of the Receivership Defendants, the Receiver has determined that WLD Price Global operated
what purported to be a consortium of international law firms through World Law Group. WLD
Price Global and various other entities affiliated with WL Debt and WL Processing through the
"World Law Group" consortium which were under the ownership and control of Haskins
purported to provide debt relief services and engaged in practices that violated consumer
protection laws, including without limitation the Telemarketing Sales Rules ("TSR"), 16 C.F.R.
section 310.3(a)(2)(II) and (x) and the Consumer Financial Protection Act ("CFPA"), 12 U.S.C.
sections 5531(a) and 5536(a)(1) and 15 U.S.C. section 6102(c)(2) and the laws of several states.
The CFPB has also alleged that these entities also engaged in deceptive and fraudulent practices
in violation of applicable law to the injury of consumers by (a) collecting advance fees from
consumers in connection with promises to provide consumers debt relief services and legal
representation by local attorneys in their state and not providing the promised legal
representation; and (b) engaging in deceptive marketing practices for the debt relief services and
legal representation services they promised to provide consumers (the "fraudulent scheme").
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7. Since at least 2010, state and federal government agencies and consumers who
dealt with WL Debt and WL Processing had potential claims against WL Debt and WL
Processing and their affiliate WLD Price Global for violation of applicable consumer protection
laws. When the Receiver filed the Complaint initiating this action, the amount of the claims of
such consumers and government agencies ("Consumer Injury Claims") had not yet been finally
determined. However, on July 5, 2016, the CFPB filed a motion for entry of default judgments
against certain of the defendants in the CFPB Action, including WL Debt and WL Processing.
The Court in the CFPB Action entered a default judgment for equitable monetary relief against
WL Debt and WL Processing in the amount of $106,813,049 on August 1, 2016. A true and
correct copy of the default judgment, Document 104 in the CFPB Action, is attached hereto as
Exhibit 1. In addition, defendants Derin Scott and David Klein have recently stipulated to
judgment in favor of the CFPB, jointly and severally, in the identical sum of $106,813,049. A
true and correct copy of the Stipulated Final Judgment and Order Against Defendants Derin
Scott, David Klein and Relief Defendant Shannon Scott is attached hereto as Exhibit 2. Haskins
has not yet been served with the summons and complaint in the CFPB Action and the CFPB has
asked the Court in the CFPB Action to authorize service by alternative means since the CFPB
has been unable to locate Haskins and believes he has been living in Europe since the CFPB
Action was filed.
8. Based on the judgment of over $106 million, the World Law Receivership
Defendants have been insolvent at all times since at least January 1, 2011 have been insolvent, in
that their liabilities far exceed their assets. Since at least May 2013, the State of North Carolina
and the State of Connecticut commenced actions or proceedings against certain defendants in the
CFPB Action including Haskins, the World Law Group and WL Debt, alleging violations of
applicable consumer protection laws since in or about 2010 when Haskins and World Law Group
began their debt relief services and began perpetrating the fraudulent scheme. The Receiver has
investigated the assets of the receivership entities under the World Law Preliminary Injunction
and has located and gathered or is in the processing of gathering all available receivership assets
D94334833VV-I
Case 1:16-cv-20122-FAM Document 28 Entered on FLSD Docket 08/29/2016 Page 4 of 7
in which the Receivership Defendants have an interest, including the real properties that are the
subject of this lawsuit. The aggregate value of all receivership assets located and identified to
date is less than $13 million, an amount far less than the amount of creditor claims against the
Receivership Defendants, as evidenced by the judgments in excess of $106 million.
9. WLD Price Global and other entities owned and controlled by Haskins, including
WL Debt and WL Processing, participated in the fraudulent scheme by, among other things, their
receipt and transfer of funds generated by the fraudulent scheme. WLD Price Global received at
least $6.8 million from consumers as part of the fraudulent scheme.
10. The Receiver's investigation has also disclosed that defendant Aksiban is the
record title holder to two real properties located in Fort Lauderdale, Florida. One of the
properties is commonly described as 100 Birch Road, Apartment 2303F, Fort Lauderdale, FL
33316 ("Birch Property") and legally described in Exhibit 4 to the Complaint. A true and correct
copy of the recorded warranty deed granting title to the Birch Property to Aksiban is attached
hereto as Exhibit 3. The other property is located at 100 N. Federal Hwy., Apartment 1215, Fort
Lauderdale, FL 33301 ("Federal Property") and legally described in Exhibit 5 to the Complaint.
A true and correct copy of the recorded general warranty deed granting title to the Federal
Property to Aksiban is attached hereto as Exhibit 4. The Receiver obtained title reports for the
Birch Property and the Federal Property shortly before the Receiver commenced this action, and
the title reports attached hereto as Exhibits 5 (Birch Property) and 6 (Federal Property),
respectively, confirm title is held by Aksiban and there are no other liens other than ordinary
accruing liens for real property taxes.
11. Based on the Receiver's investigation, all of the funds for Aksiban's payment of
the purchase price of the Birch Property and the Federal Property were provided by and
transferred from Receivership Defendant WLD Price Global. Specifically, on or about October
11, 2012, WLD Price Global transferred the sum of $331,000.00 in cash to Ace Title Services to
pay the purchase price for the Federal Property on behalf of Aksiban. A true and correct copy of
the excerpt of the WLD Price Global bank account statement showing and confirming the wire
594334833\V-1
Case 1:16-cv-20122-FAM Document 28 Entered on FLSD Docket 08/29/2016 Page 5 of 7
transfer in that amount to the title company for the purchase of the Federal Property is attached
hereto as Exhibit 7. Ace Title Services is the title company listed on the warranty deed to the
Federal Property, Exhibit 4. A Lexis-Nexis records search of available public records obtained
by the Receiver, a true and correct copy of which is attached hereto as Exhibit 8, shows that the
property was purchased by Aksiban for $330,000. After payment of the purchase price by WLD
Price Global, Aksiban took title to the Federal Property on October 24, 2012 and has held title to
the Federal Property since that date.
12. In addition, on or about May 22, 2013, WLD Price Global transferred the sum of
$40,000.00 cash to Title Company of America to pay in part the purchase price for the Birch
Property on behalf of Aksiban. Then, on or about May 29, 2013, WLD Price Global transferred
the sum of $600,000.00 cash to Title Company of America to pay the balance of the purchase
price for the Birch Property on behalf of Aksiban. A true and correct copy of the excerpt of the
WLD Price Global bank account statement showing the transfer of these sums to the title
company for the purchase is attached hereto as Exhibit 9. The warranty deed to the Birch
Property, Exhibit 3, specifically recites the amount paid for the property by Aksiban was
$640,000. Aksiban took title to the Birch Property on or about July 12, 2013 and has held title
to the Birch Property since that date.
13. Though WLD Price Global paid for the purchase price of the Federal Property
and the Birch Property, it received no payment, title or other consideration in exchange for the
funds used to purchase these properties. Based on the Receiver's investigation, the Federal
Transfer and the Birch Transfer were made from funds the source of which were funds obtained
from consumers as part of the fraudulent scheme. Further, given the common ownership of
WLD Price Global and Aksiban by Haskins, and given Haskins' conduct in connection with the
World Law Group, including the other Receivership Defendants WL Debt and WL Processing,
Aksiban did not receive the funds and title to the Federal Property and the Birch Property in
good faith under the circumstances.
D94334833VV-1
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14. Assets of the receivership entity WLD Price Global were transferred without
consideration to purchase the Federal Property and the Birch Property. Those assets constitute
receivership assets because they were acquired solely with assets transferred by the Receivership
Defendant WLD Price Global and because Aksiban is a Receivership Defendant based. on its
common ownership and control by Haskins and. Haskins' ownership and control of other
Receivership Defendants, including WL Debt, WL Frocessing and WLD Price Global. 'the
conveyance of title to Aksiban when the purchase price for the Federal Property and Birch
Property was paid by WI,D Price C7lobal and when WLD Price Global received no consideration
for those payments also renders the properties receivership property based on the Receiver's
right to avoid the transfers as fraudulent conveyances. The Receiver therefore seeks a default
judgment against Aksiban in accordance with the Complaint and the motion which this
declaration supports.
I declare under penalty of perjury that the faregoing is true and correct and that this
Declaration was executed this~~ day of August 2016 at Sun Valley, California.
..._.~BRICK KANE
794734833\V-I
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Case 1:15-cv-23070-MGC Document 104 Entered on FLSD Docket 08(01/2016 Page 1 of 20
UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDA
Case No. 15-23070-Civ-COOKS/TORRES
Consumer Financial Protection Bureau,Plaintiff,
v,
ORION PROCESSING, LLC, a Texas limitedliability company, d/b/a World Law Processing,Wld Credit Repair, and World Law Debt; FAMILYCAPITAL INVESTMENT & MANAGEMENTLLC, a Delaware limited liability company, a/k/aFCIAM Property Management; WORLD LAWDEBT SERVICES, LLC, a Delaware limitedliability company; WORLD LAW PROCESSING,LLC, a Delaware limited liability company; DERINSCOTT, an individual; DAVID KLEIN, anindividual; and BRADLEY JAMES HASKINS,individually and d/b/a World Law Group, LLP,World Law Group America, LLP, WLD PriceGlobal, Inc., World Law Forms and Mediation, andWorld Law South;
Defendants,
Shannon Scott, an individual,
Relief Defendant.
DEFAULT JUDGMENT AND ORDER AGAINST WORLD LAW DEBTSERVICES, LLC, WORLD LAW PROCESSING, LLC, ANDFAMILY CAPITAL INVESTMENT &MANAGEMENT LLC
Plaintiff, the Consumer Financial Protection Bureau ("Bureau") commenced this
civil action on August 17, 2015 to obtain permanent injunctive relief, rescission or
reformation of contracts, the refund of moneys paid, restitution, disgorgement or
compensation for unjust enrichment, civil money penalties, and other equitable relief from
Defendants (a) Orion Processing, LLC, a Texas limited liability company, d/b/a World
Law Processing, Wld Credit Repair, and World Law Debt; (b) Family Capital Investment &
Management LLC, a Delaware limited liability company, a/k/a FCIAM Property
1.
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Case 1:15-cv-23070-MGC Document 104 Entered on FLSD Docket 08/01/2016 Page 2 of 20
Management; (c) World Law Debt Services, LLC, a Delaware limited liability company; (d)
World Law Processing, LLC, a Delaware limited liability company; (e) Derin Scott, an
individual; (fl David Klein, an individual; and (g) Bradley James Haskins, individually and
d/b/a as World Law Group, LLP, World Law Group America, LLP, WLD Price Global,
Inc., World Law Forms and Mediation, and World Law South. The Bureau brought this
Complaint under sections 1031(a), 1036(a), 1054, and 1055 of the Consumer Financial
Protection Act of 2010 ("CFPA"), 12 U.S.C. §§ 5531(a), 5536(a), SSb4(a), and 5565, and
the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§
6102(c)(2), 6105(d), alleging Defendants violated the CFPA and the Telemarketing Sales
Rule ("TSR"), 16 C.F.R. pt. 310 in connection with the marketing and sale of debt relief
services.
On August 18, 2015, this Court entered an ex pane temporary restraining order
("TRO"), finding good cause to believe the Bureau would prevail on the merits of its claims
and that immediate and irreparable harm would result from allowing Defendants'
operations to continue. Among other things, the TRO froze the Defendants' assets. On
September 2, 201 S, this Court entered a preluninary injunction ("September 2, 2015 PI")
against Defendants Orion Processing, LLC; Bradley James Haskins; World Law Debt
Services, LLC; and World Law Processing, LLC (ECF No. 28). On September 14, 2015, the
Court entered a similar preliminary injunction ("September 14, 2015 PI") against the
remaining Defendants—Derin Scott; David Klein; Family Capital Investment &
Management LLC; and Relief Defendant Shannon Scott (ECF No. 42). Among other
things, these PIs continued the asset freeze and appointed a Receiver over Defendants
World Law Debt Services, LLC, World Law Processing, LLC, and Family Capital
Investment &Management LLC ("Default Defendants").
Default Defendants failed to file an answer or otherwise defend in this action, and
the Clerk entered default against them on December 21, 2015 (ECF No. 75).
The court may enter default judgment when a defendant fails to respond to a
complaint and court orders and fails to participate in the litigation or cooperate in good faith
with the plaintiff, See Tara Prods., Inc. v. Hollywood Gadgets, Inc., 449 F. App'x 908, 910 — 12
(11th Cir. 2011); Eagle Hosp. Physicians, LLC v. SRG Consulting, Inc,, 561 F.3d 1298, 1307
(11th Cir. 2009); Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir. 1987). Granting a
2
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Case 1:15-cv-231770-MGC Document 104 Entered on FLSD Docket 08/0112016 Page 3 of 20
default judgment is within the court's discretion. See Tara Prods. 449 F. App'x at 910-912.
Under Federal Rule of Civil Procedure 55(b)(2), default judgment is appropriate here
against Default Defendants because they have failed to file answers or otherwise appear and
defend the claims bxought against them. Default Defendants' liability is well-pled in the
Complaint, and Default Defendants have failed to participate in the litigation in good faith.
Pursuant to Fed. R. Civ. P. 55(b)(2), upon application by Plaintiffs, the Court now
enters a default judgment against Default Defendants for violations of the CFPA and the
TSR.
Therefore, it is ORDERED and ADNDED as follows:
FINDINGS
1. This Court has jurisdiction over the parties and the subject matter of this action
pursuant to 12 U.S,C. § 5565(a)(1) and 28 U.S.C. §§ 1331, 1345, and 1367.
2. Venue in the Southern District of Florida is proper under 28 U.S.C. § 1391(b) and (c)
and 12 U.S.C. § 5564(fl.
3. Default Defendants have been properly served with the Summons and Complaint.
4. Default Defendants have failed to answer or otherwise defend this action.
5. The Clerk properly entered defaults against Default Defendants on December 21,
2015 (ECF No. 75).
6. The Complaint states claims upon which relief may be granted under the CFPA and
TSR. The relief provided in this Order is appropriate and available pursuant to
Sections 1054 and 1055 of the CFPA, 12 U.S.C. §§ 5564, 5565, and pursuant to the
Telemarketing and Consumer Fraud and Abuse and Prevention Act, 15 U.S.C. §
6102(c),
7. Because of Default Defendants' default, Default Defendants are deemed to have
admitted the well-pled facts of the complaint and the allegations are taken as true.
Eagle Hosp., 515 F.2d at 1307; Buchanan, 820 F.2d at 361.
8. During the Relevant Period, Defendants operated as a common enterprise while
engaging in the acts and practices described in the complaint. Defendants conducted
the business practices described in the complaint through an interrelated network of
companies that had common business functions, employees, and office locations.
Moreover, Defendants also commingled funds and shared operations and proceeds
3
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of the unlawful activity. Because Defendants have operated as a common enterprise,
each of them is jointly and severally liable for the acts and practices alleged in the
complaint.
9. Default Defendants are owned or controlled in whole or in part by Defendants
Bradley Haskins, David HIein, and/or Derin Scott.
10. Default Defendants are each a "covered person," "related person," and/or a "service
provider" as those terms are defined by the CFPA, 12 U.S.C. § 5481(6)(A), (19),
(25), and (26).
11. During the Relevant Period, Default Defendants offered or provided financial
advisory services, including services to assist consumers settle debts.
12. Default Defendants' business included inducing the purchase of financial advisory
services by use of one or more telephones and involved more than one interstate
telephone call. Default Defendants are "sellers" or "telemarketers" of a "debt relief
service," who engage in "telennarketing," as defined in the TSR. 16 C.F.R. § 310.2.
Default Defendants Violated the TSR
Count I of the Complaint
13. In the course of telemarketing debt relief services from October 27, 2010 to the
Effective Date, Defendants requested or received payment of fees or consideration
from consumers for debt relief services before: (1) they had renegoriated, settled,
reduced, or otherwise altered the terms of at least one debt pursuant to a settlement
agreement, debt management plan, or other such valid contractual agreement
executed by the consumer; and (2) the consumer had made at least one payment
pursuant to that agreement.
14. The Complaint contains well-pled factual allegations supporting a finding of liability
for violations of the TSR, 16 C.F.R. § 310.4(a)(5)(i), including as follows:
a. Defendants offered debt relief services to consumers, promising to negotiate their
unsecured debts with their creditors in exchange for a fees paid up-front. Compl.
¶¶ 1-2, 37.
b. Defendants withdrew hundreds of dollars in advance fees from consumer's
accounts each month, including "Initial Fees" in the amount of $199 (usually
collected from the consumers' account over the first three months of the
4
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program); "Bundled Legal Service Fees" that ranged from 10 to 15 percent of the
consumer's combined outstanding debts (usually collected over the first 13
months of the program); and "Attorney Monthly Service Fees" in the amount of
$84.95 (collected every month the consumer participates in the program). Compl.
¶¶ 2, 39-40, 51, 75.
c. These fees were all charged before any consumer's debts were negotiated and
settled. Compl. ¶ 39-40, 75.
d. Defendants have charged advance fees to 99% of the consumers, at least 21,000
consumers, before settling any of their debts. Compl. ¶ 2, 40, 58.
15. Therefore, Defendants' acts or practices violate the TSR, 16 C.F.R. § 310.4(a)(5)(i),
and are abusive acts or practices in telemarketing. Because Defendants are "covered
persons" their conduct is unlawful under sections 1031(a) and 1036(a)(1) of the
CFPA, 12 U.S.C. §§ 5531(a), 5536(a)(1). 15 U.S.C. § 6102(c)(2).
16. Given these well-pled allegations and Default Defendants' failure to answer or
defend, the Court enters a default judgment against Default Defendants for
violations of the TSR, 16 C.F.R. § 310.4(a)(5)(i). See, e.g., CFPB v, Harper, No.
14cv80931 (S.D. Fla, May 28, 2015) (awarding default judgment against corporate
defendants for violations of the CFPA and other consumer protection laws); CFPB v.
Talan, No. 12cv02088 (C.D. Cal. July 23, 2013) (awarding default judgment against a
corporation and rivo individual defendants for violations of Regulation O and other
consumer protection laws).
Default Defendants Violated the TSR and the CFPA
Counts II and III of the Complaint
17. In numerous instances, in connection with the advertising, marketing, promoting,
offering for sale, or sale of debt relief services, Defendants have falsely represented
that consumers who enroll in Defendants' debt relief program:
a. will receive legal representation;
b. will be represented by a local attorney; and/or
c. will have settlements of their debts negotiated with their creditors by an attorney.
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18. The Complaint contains well-pled factual allegations supporting a finding of liability
for violations of the TSR, 16 C.F.R. § 310.3(a)(2)(iii) and (x), and Sections 1031 and
1036 of the CFPA, 12 U.S.0 §§ 5531, 5536, including as follows:
a. Defendants promised consumers both debt relief services and legal
representation, including by a local attorney, claiming to employ lawyers in every
state. They also touted that consumers would receive the skill and expertise of a
licensed lawyer to negotiate with creditors regarding their unsecured debts.
Compl, ¶¶ 1, 37, ~1-42, 45, 50, 78, 84.
b. In fact, in numerous instances, consumers do not receive legal representation, are
not represented by a local attorney, and do not have settlements of their debts
negotiated with their creditors by an attorney. Compl. ~~~~ 38, 53-56, 79, 85.
19. Therefore, Defendants' representations as described herein violate the TSR, 16
C.F,R, § 310.3(a)(2)(iii) and (x), and are deceptive acts or practices in telemarketing.
Because Defendants are "covered persons" their conduct is unlawful under sections
1031(a} and 1036(a)(1) of the CFPA, 12 U.S.C. §§ 5531(a), 5536(a)(1). 15 U.S.C. §
6102{c)(2).
20. Defendants' representations described in the complaint and above are false and
misleading, and constitute deceptive acts or practices in violation of sections 1031
and 1036 of the CFPA, 12 U.S.0 § 5531, 5536.
21. Given these well-pled allegations and Default Defendants' failure to answer or
defend, the Court enters a default judgment against Default Defendants for
violations of the TSR, 16 C.F.R. § 310.3(a)(2)(iii) and (x) and for violations of
sections 1031(a) and 1036(a)(1) of the CFPA, 12 U.S.C. §§ 5531, 5536. See, e,g.,
CFPB v. Harper, No. 14cv80931 (S.D. Fla. May 28, 2015) (awarding default judgment
against corporate defendants for violations of the CFPA and other consumer
protection laws); CFPB v. Talan, No. 12cv02088 (C.D. Cal. July 23, 2013) (awarding
default judgment against a corporation and two individual defendants for violations
of Regulation O and other consumer protection laws).
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Dania es
22. Section 1055 of the CFPA, 12 U.S.C. § 5565, empowers this Court to order
injunctive and other relief, restitution, and civil money penalties.
23. Defendants are liable for the entire amount spent by consumers, regardless of
whether consumers received anything of value; the relevant factor is the "fraud in the
selling, not the value of the thing sold." McGregor v. Chierico, 206 F.3d 1378, 1389
(11th Cir, 2000) (quoting FTC v, Figgie Int'1, Inc., 994 F.2d 595, 606 (9th Cir. 1993)).
Because Defendants, including Default Defendants, have operated as a common
enterprise, each of them is jointly and severally liable for the acts and practices
alleged in the complaint.
24. Plaintiff bears the burden of proving damages and may do so through affidavits and
other documentary evidence showing the amount and calculation of damages. Tara
Prods,, 449 F. App'x at 911— 12.
25. Plaintiff has established, through competent evidence, that at least 21,900 consumers
were victimized by and paid money to Defendants and that these consumers paid at
least $106,813,049 during the Relevant Period.
26. As explained in the declaration of Timothy Hanson attached to Plaintiff's Motion,
these figures were derived from the Corporate Defendants' records, records of
Defendants' third-party payment processor and bank statements, as well as
information compiled by the Receiver.
27. The amount of $106,813,048 represents a reasonable approximation of consumer
loss.
28. The Bureau is entitled to an Order imposing permanent injunctive relief; requiring
Default Defendants to make restitution of $106,813,048; and requiring Default
Defendants to pay a civil money penalty in the amount of $40 million.
29. The Court, in its discretion, enters injunctive and monetary relief, without holding an
evidentiary hearing. Id.
30. This action and the relief awarded herein are in addition to, and not in lieu of, other
remedies as maybe provided by law, including both civil and criminal remedies.
31. Entry of this Order is in the public interest.
7
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DEFINITIONS
The following definitions apply to this Order:
32. "Advance Fee" means any fee or consideration requested or received by a Debt
Relief Service Provider from a consumer for any Debt Relief Service, whether
directly or indirectly, that occurs before;
a. the Debt Relief Service Provider has renegotiated, settled, reduced, or
otherwise altered the terms of a debt pursuant to a settlement agreement,
debt management plan, or other valid contractual agreement executed by
the Consumer; and
b. the Consumer has made at least one payment pursuant to that settlement
agreement, debt management plan, or other valid contractual agreement
between the Consumer and the creditor or debt collector.
33. "Affected Consumers" means any consumer who paid an Advance Fee or any
other fees to Defendants or their officers, agents, servants, employees, or attorneys
for Debt Relief Products or Services between July 1, 2010 and the Effective Date.
34. "Assets" means any legal or equitable interest in, right to, or claim to any real,
personal, or intellectual property owned or controlled by, or held, in whole or in part
for the benefit of, or subject to access by any Defendant or Relief Defendant,
wherever located, whether in the United States or abroad. This includes, but is not
limited to, chattel, goods, instruments, equipment, fixtures, general intangibles,
effects, leaseholds, contracts, mail or other deliveries, shares of stock, commodities,
futures, inventory, checks, notes, accounts, credits, receivables (as those terms are
defined in the Uniform Commercial Code), funds, cash, and trusts, including, but
not limited to any trust held for the benefit of any Defendant, Relief Defendant, any
of the Individual Defendants' minor children, or any of the Individual Defendants'
spouses.
35. "Assisting Others" includes, but is not limited to:
c. Consulting in any form whatsoever;
d. Providing paralegal or administrative support services;
e. performing customer service functions including, but not limited to,
receiving or responding to consumer complaints;
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f. formulating or providing, or arranging for the formulation or provision of,
any advertising or marketing material, including, but not limited to, any
telephone sales script, direct mail solicitation, or the text of any Internet
website, email, or other electronic communication;
g. formulating or providing, or arranging for the formulation or provision of,
any marketing support material or service, including but not limited to,
web or Internet Protocol addresses or domain name registration for any
Internet websites, affiliate marketing services, or media placement
services;
h. providing names of, or assisting in the generation of, potential customers;
i. performing marketing, billing, or payment services of any kind; and
j. acting or serving as an owner, officer, director, manager, or principal of
any entity,
36. 'Bankruptcy Proceeding" means In re Orion Processing LLC, Case No.. 15-10279
currently pending in the United States Bankruptcy Court, Western District of Texas,
Austin Division,
37. ~~Chapter 7 Tmstee" means the Trustee appointed over Defendant Orion
Processing, LLC by the United States Bankruptcy Court, Western District of Texas,
Austin Division in the Bankruptcy Proceeding.
38. "Consumer Financial Product or Service" is synonymous in meaning and equal in
scope to the definition of the term in Section 1002(5) of the CFPA, 12 U.S.C. §
5481(5), and, subject to applicable restrictions contained in the CFPA, includes, but
is not limited to;
a. Extending credit and servicing loans, including acquiring, purchasing,
selling, brokering, or other extensions of credit (other than solely
extending commercial credit to a person who originates consumer credit
transactions);
b. Providing financial advisory services to consumers on individual financial
matters or relating to proprietary financial products or services, including
providing credit counseling to any consumer or providing services to assist
E
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a consumer with debt management or debt settlement, modifying the
terms of any extension of credit, or avoiding foreclosure;
c. Collecting, analyzing, maintaining, or providing consumer report
information or other account information, including information relating
to the credit history of consumers, used or expected to be used in
connection with any decision regarding the of~'ering or provision of a
Consumer Financial Product or Service; or
d. Collecting debt related to any Consumer Financial Product or Service.
39. "Debt Relief Product or Service" means any program or service represented,
directly or by implication, to renegotiate, settle, or in any way alter the terms of
payment or other terms of the debt between a consumer and one or more creditors or
debt collectors, including but not limited to, a reduction in the balance, interest rate,
or fees owed by a person to a creditor or debt collector.
40. "Debt Relief Service Provider" means any Person that offers or provides any Debt
Relief Product or Service.
41. "Defendants" means the Individual Defendants and the Corporate Defendants,
individually, collectively, or in any combination, and each of them by whatever
names each might be known;
a. "Corporate Defendants" means: Orion Processing, LLC d/b/a Woxld
Law Processing, Wld Credit Repair and World Law Debt (collectively,
"Orion") and its successors and assigns; Family Capital Investment &
Management LLC a/k/a FCIAM Property Management ("FCIAM") and
its successors and assigns; World Law Debt Services, LLC and its
successors and assigns; and World Law Processing, LLC and its
successors and assigns.
b. "Individual Defendants" means Derin Scott, David Klein, and Bradley
Haskins, collectively, or in any combination, and each of them by any
other names by which they might be known;
c. "Default Defendants" means World Law Debt Services, LLC, World
Law Processing, LLC, and Family Capital Investment &Management
LLC a/k/a FCIAM Property Management;
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d. "Receivership Defendants" means World Law Debt Services, LLC,
World Law Processing, LLC, and Family Capital Investment &
Management LLC a/k/a FCIAM Property Management and their
successors, assigns, affiliates, or subsidiaries, and each of them, by
whatever names each might be known, provided that the Receiver has
reason to believe they are owned or controlled in whole or in part by any
of the Defendants, including but not limited to World Law Forms and
Mediation, Inc., World Law South Inc., and WLD Price Global, Inc.;
e. "Relief Defendant" means Shannon Scott individually and by any other
name by which she might be known;
42. "Effective Date" means the date on which the Order is issued.
43. "Enforcement Director" means the Assistant Director of the Of~'ice of Enforcement
for the Consumer Financial Protection Bureau, or his/her delegee,
44. "Receiver" means Robb Evans &Associates LLC.
45, "Related Consumer Action" means a private action by or on behalf of one or more
consumers or an enforcement action by another governmental agency brought
against Defendant based on substantially the same facts as described in the
Complaint.
46. "Relevant Period" includes the period from July 1, 2010 to the Effective Date.
47. "Telemarketing" means any plan, program, or campaign that is conducted to induce
the purchase of goods or services or a charitable contribution by use of one or more
telephones, whether or not covered by the Telemarketing Sales Rule, 16 C.F.R. Part
310.
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ORDER
I.
PERMANENT BAN ON TELEMARKETING AND DEBT RELIEF PRODUCTS ORSERVICES
It is ORDERED that:
48. Default Defendants and their officers, agents, servants, employees, and attorneys, and
all other persons in active concert or participation with them who have actual notice of
this Order, whether acting directly or indirectly, are permanently restrained from any of
the following:
a. Participating in telemarketing or assisting others engaged in telemarketing any
Consumer Financial Product or Service;
b. Advertising, marketing, promoting, offering for sale, selling, or providing any Debt
Relief Product or Service;
c. Assisting others in advertising, marketing, promoting, offering for sale, selling, or
providing any Debt Relief Product or Service; and
d. Receiving any remuneration or other consideration from, holding any ownership
interest in, providing services to, or working in any capacity for any person engaged
in or assisting others in advertising, marketing, promoting, offering for sale, selling,
or providing any Debt Relief Product or Service.
II.
PROHIBITION ON DECEPTIVE PRACTICES
It is FURTHER ORDERED that:
49. Default Defendants and their successors, assigns, officers, agents, servants, employees,
and attorneys, and those persons in active concert or participation with any of them,
who receive actual notice of this Order whether acting directly or indirectly, in
connection with the advertising, marketing, promotion, offering for sale, sale, or
performance of any Consumer Financial Product or Service may not misrepresent, or
assist others in misrepresenting, expressly or impliedly:
12
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a. Any aspect of any Consumer Financial Product or Service, including but not limited
to, the amount of savings a consumer will receive from purchasing, using, or
enrolling in such Consumer Financial Product or Service;
b. The total costs to purchase, receive, or use, or the quantity of any Consumer
Financial Product or Service, including that there will be no charge for all or a
portion of such service;
c. Any material restriction, limitation, or condition to purchase, receive, or use any
Consumer Financial Product or Service;
d. Any aspect of the nature or terms of a xefund, cancellation, exchange, or repurchase
policy for any Consumer Financial Product or Service, including but not limited to,
the likelihood of a consumer obtaining a full or partial refund, or the circumstances
in which a full or partial refund will be granted to the consumer;
e. The income, profits, sales, or savings likely to be achieved from any Consumer
Financial Product or Service;
f. The terms or rates that are available for any loan or other extension of credit;
g. Any person's ability to improve or otherwise affect a consumer's credit record, credit
history, or credit rating or ability to obtain credit;
h. That a consumer will receive legal representation or services from an attorney duly
licensed to practice law;
i. Any material aspect of the performance, efficacy, nature, or central characteristic of
any Consumer Financial Product or Service; and
j. Any other fact material tv consumers concerning any Consumer Financial Product
or Service.
S0. In addition, Default Defendants, whether acting directly or indirectly, in connection
with the advertising, marketing, promotion, offering for sale, or sale of any Consumer
Financial Product or Service, are hereby permanently restrained and enjoined from
making any representation or assisting others in making any representation, expressly or
by implication, about the benefits, performance, or efficacy of any Consumer Financial
Product or Service, unless, at the time such representation is made, such Default
Defendant possesses and relies upon competent and reliable evidence that substantiates
that the representation is true.
13
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51. In addition, Default Defendants, whether acting directly or indirectly, are permanently
restrained from offering or providing any Consumer Financial Product or Service for
which a state license, registration, permit, bonding or other regulatory authority is
required, unless such Default Defendant first obtains such authority.
III.
PROHIBITED USE OF CUSTOMER INFORMATION
It is FiJRTHER ORDERED that:
48. Default Defendants, and their officers, agents, servants, employees, and attorneys
who receive actual notice of this Order, whether acting directly or indirectly, may not
disclose, use, or benefit from customer information, including the name, address,
telephone number, email address, social security number, other identifying
information, or any data that enables access to a customer's account (including a
credit card, bank account, or other financial account), that Defendants obtained
before the Effective Date in connection with Consumer Financial Products or
Services or Debt Relief Products or Services offered by Defendants.
IT IS FURTHER ORDERED that:
49. The Default Defendants, and their officers, agents, servants, employees, attorneys,
and all other persons in active concert or participation with them who receive actual
notice of this Order by personal service, facsimile transmission, email, or otherwise,
whether acting directly or through any corporation, subsidiary, division, or other
device, are hereby permanently restrained and enjoined from attempting to collect,
collecting, selling, or assigning, ox otherwise transferring any right to collect payment
from any consumer who purchased or agreed to purchase debt relief products or
services from Defendants.
However, customer information may be disclosed if requested by a government
agency or required by law, regulation, or court order.
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IV,
ORDER TO PAY REDRESS
It is FURTHER ORDERED that:
50. A judgment for monetary relief is entered in favor of the Bureau and against Default
Defendants, jointly and severally, in the amount of $106,813,049 for the purpose of
providing redress to Affected Consumers. The monetary judgment set forth in this
Section is immediately due and payable upon entry of this Order and is enforceable
against any asset owned by, on behalf of, for the benefit of, or in trust by or for
Default Defendants.
51. This Order grants to the Bureau all rights and claims that Default Defendants have to
Default Defendants' frozen assets currently in the possession, custody, or control of
the Receiver or in the receivership estate, and Default Defendants shall forfeit any
rights to the funds in the receivership estate, including but not limited to:
a. Funds previously held in Account Numbers XXXXXX2473, XXXXXX9483, and
XXXXXXX9491 at TD Bank in the name of World Law Forms and Mediation
Inc.;
b. Funds previously held in Account Number XXXXXX3559 at Bank of America in
the name of WLD Price Global, Inc.;
c. Funds previously held in Account Numbers XXXXXX2571 and
XXXXXXX2584 at Bank of America in the name of World Law Forms and
Mediation Inc.;
d. Funds previously held in Account Numbers XXXXXX2067 and
XXXXXXX2075 at IBC Bank in the name of Family Capital Investment and
Management;
e. Funds previously held in Account Number XXXXXX2083 at IBC Bank in the
name of All Things Energy LLC; and
f. Funds previously held in Account Number XXXXXX2641 at Bank of America in
the name of Appz, LLC, d/b/a App Ventures.
52. Any financial or brokerage institution, escrow agent, title company, commodity
trading company, business entity, or person, whether located within the United
States or outside the United States, that holds, controls or maintains accounts or
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assets of, on behalf of, or for the benefit of, the Default Defendants shall turn over
such account or asset to the Receiver or its designated agent within ten (10) business
days of receiving notice of this Order by any means, including but not limited to via
facsimile or email. Any such funds must be paid to the Receiver, by wire transfer to
the Receiver or to the Receiver's agent, and according to the Receiver's wiring
instructions.
53. Any funds received by the Bureau pursuant to this Order wi11 be deposited into a
fund or funds administered by the Bureau or to the Bureau's agent according to
applicable statutes and regulations to be used to provide redress to Affected
Consumers, for the fees they paid Defendants, and for any attendant expenses for the
administration of any such redress.
54. If the Bureau determines, in its sole discretion, that redress to consumers is wholly or
partially impracticable or otherwise inappropriate, or if funds remain after redress is
completed, the Bureau will deposit any remaining funds in the U.S. Treasury as
disgorgement. Default Defendants will have no right to challenge any actions that
the Bureau or its representatives may take under this paragraph.
55. Payment of redress to any Affected Consumer under this Order may not be
conditioned on that Affected Consumer waiving any right.
V.
ORDER TO PAY CIVIL MONEY PENALTIES
It is FURTHER ORDERED that:
56. Under Section 1055(c) of the CFPA, 12 U.S.C, § 5565(c), by reason of the alleged
violations of law, and taking into account the factors in 12 U.S.C. § 5565(c)(3),
Default Defendants must pay a civil money penalty of $40 million to the Bureau.
57. Within 10 days of the Effective Date, Default Defendants must pay the civil money
penalty by wire transfer to the Bureau or to the Bureau's agent in compliance with
the Bureau's wiring instructions.
58. The civil money penalty paid under this Order will be deposited in the Civil Penalty
Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U.S.C. §
5497(d).
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59, Default Defendants must treat the civil money penalty paid under this Order as a
penalty paid to the government for all purposes. Regardless of how the Bureau
ultimately uses those funds, Default Defendants may not:
a, Claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit for
any civil money penalty paid under this Order; or
b. Seek or accept, directly or indirectly, reimbursement or indemnification from any
source, including but not limited to payment made under any insurance policy,
with regard to any civil money penalty paid under this Order.
60. To preserve the deterrent effect of the civil money penalty in any Related Consumer
Action, Default Defendants may not argue that they are entitled to, nor may Default
Defendants benefit by, any offset or reduction of any monetary remedies imposed in
the Related Consumer Action because of the civil money penalty paid in this action
or because of any payment that the Bureau makes from the Civil Penalty Fund
(Penalty Offset). If the court in any Related Consumer Action grants such a Penalty
Offset, Default Defendants must, within 30 days after entry of a final order granting
the Penalty Offset, notify the Bureau, and pay the amount of the Penalty Offset to
the U.S. Treasury. Such a payment will not be considered an additional civil money
penalty and will not change the amount of the civil money penalty imposed in this
action.
61, The civil penalty imposed by this Order represents a civil penalty owed to the United
States Government, is not compensation for actual pecuniary loss, and, thus, as to
each Default Defendant, it is not subject to discharge under the Bankruptcy Code
under 11 U.S.C. § 523(a)(7).
VI.
ADDITIONAL MONETARY PROVISIONS
It is FURTHER ORDERED that:
62. In the event of any default on Default Defendants' obligations to make payment
under this Order, interest, computed under 28 U.S.C, § 1961, as amended, will
accrue on any outstanding amounts not paid from the date of default to the date of
payment, and will immediately become due and payable.
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63. Default Defendants must relinquish all dominion, control, and title to the funds paid
to the fullest extent permitted by law and no part of the funds may be returned to
Default Defendants.
64. The facts alleged in the Bureau's Complaint will be taken as true and be given
collateral estoppel effect, without further proof, in any proceeding based on the entry
of the Order, or in any subsequent civil litigation by the Bureau to enforce this Order
or its rights to any payment or monetary judgment under the Order, such as a non-
dischargeability complaint in any bankruptcy case.
65. The facts alleged in the Complaint establish all elements necessary to sustain an
action by the Bureau pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11
U.S.C. § 523(a)(2)(A), and this Ordex will have collateral estoppel effect for such
purposes.
66. Under 31 U.S.C. § 7701, Default Defendants, unless they have already done so, must
furnish to the Bureau any taxpayer identifying numbers, which may be used for
purposes of collecting and reporting on any delinquent amount arising out of this
Order.
VII.
RECEIVERSHIPIt is FURTHER ORDERED that:
67. The appointment of Robb Evans &Associates LLC as Receiver for the Receivership
Defendants pursuant to the September 2, 2015 and September 14, 2015 PIs is hereby
continued as modified by this Section.
68. The Receiver shall take any and all steps that the Receiver concludes are appropriate
to wind down the Receivership Defendants.
69. The Receiver shall continue to take all steps to locate and collect all viable Assets of
the Receivership Defendants and proceed to liquidate all Assets of the Receivership
Defendants, without further order of the Court. The Receiver shall use the proceeds
of the sales of these Assets to pay any legirimate liens and necessary expenses
relating to the sales.
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70. The Receiver shall continue to perform all acts necessary or advisable to complete an
accounting of the receivership Assets, and prevent unauthorized transfer,
withdrawal, or misapplication of Assets.
71. The Receiver may continue to apply to the Court for payment of compensation and
expenses associated with the performance of its duties as Receiver.
72. No later than one hundred and eighty (180) days from the Effective Date, the
Receiver shall file and serve on the parties a report (the "Final Report") to the Court
that details the steps taken to dissolve the receivership estate. The Final Report must
include an accounting of the receivership estate's finances and total Assets and a
description of what other actions, if any, must be taken to wind down the
Receivership Defendants. At the time of filing the Final Report, the Receiver shall
also file an application for final payment of compensation and expenses associated
with its performance of its duties as Receiver. The Court will review the Final
Report, payment application and any objections thereto and, absent a valid
objection, will issue an order directing that the Receiver:
a. Pay the reasonable costs and expenses of administering the receivership estate,
including compensation of the Receiver and the Receiver's personnel and the
actual out-of-pocket costs incurred by the Receiver in carrying out its duties; and
b. Pay all remaining funds to the Bureau within ten (10) days by wire transfer to the
Bureau or to the Bureau's agent, and according to the Bureau's wiring
instructions toward the monetary judgment and penalties set forth in this Order.
73. If the Receiver believes that viable outstanding claims of the receivership estate will
not be resolved within one hundred and eighty (180) days of the entry of this Order,
or if the Receiver believes that additional actions need to be taken more than one
hundred and eighty (180) days after the entry of this Order, the Receiver will move
the Court for an appropriate extension of the receivership and the deadline to file the
Final Report.
74. Until the date the Court issues an order based on the Receiver's Final Report, it'there
is any final judgment, consent order, or settlement in a Related Consumer Action,
the Receiver must notify the Enforcement Director of the final judgment, consent
order, or settlement in writing. That notification must indicate the amount of redress,
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if any, that any Receivership Defendant paid or is required to pay to consumers and
describe the consumers or classes of consumers to whom that redress has been or will
be paid.
75. Upon the transfer of funds to the Bureau pursuant to this Section, the Receivership,
pursuant to the September 2, 2015 and September 14, 2015 PIs, will be dissolved.
VIII.
COOPERATION WITH BUREAU
IT IS FURTI~R ORDERED that:
76. The Receiver is directed to cooperate fully to help the Bureau determine the identity
and location of, and the amount of injury sustained by, each Affected Consumer.
IX.
RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that:
77. The Court will retain jurisdiction of this matter for the purpose of enforcing this
Order.
DONE and ORDERED in Chambers, in Miami, Florida, this 1St day of August2016.
GIh~CCQ~ .MAR 'TA G. COOKE
~..._._ ~._.__~
United States District Judge
Copies furnished to:Edwin G. Torres, U S. Magistrate JudgeCounsel of record
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LT1vITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDA
Case No. 15-23070-Civ-COOKE/TORRES
CONSUMER FINANCIALPROTECTION BUREAU,
Plaintiff,
v.
ORION PROCESSING, LLC, a Texas limitedliability company, d/b/a World Law Processing,Wld Credit Repair, and World Law Debt; FAMILYCAPITAL INVESTMENT &MANAGEMENTLLC, a Delaware limited liability company, a/k/aFCIAM Property Management; WORLD LAWDEBT SERVICES, LLC, a Delaware limitedliability company; WORLD LAW PROCESSING,LLC, a Delaware limited liability company; DERINSCOTT, an individual; DAVID KLEIN, anindividual; and BRADLEY JAMES HASKINS,individually and d/b/a World Law Group, LLP,World Law Group America, LLP, WLD PriceGlobal, Inc., World Law Forms and Mediation, andWorld Law South;
Defendants,
Shannon Scott, an individual,
Relief Defendant.
STIPULATED FINAL JUDGMENT AND ORDER AGAINST DEFENDANTSDERIN SCCJTT, I~A~TD KLEIN .4F~ID RCLIEF DEFENDANT SHANNON SCOTT
Plaintiff', the Consumer Financial Protection Bureau ("Bureau") commenced this
civil action on August 17, 2015 to obtain permanent injunctive relief, rescission or
reformation of contracts, the refund of moneys paid, restitution, disgorgement or
compensation for unjust enrichment, civil money penalries, and other equitable relief from
Defendants (a) Orion Processing, LLC, a Texas limited liability company, d/b/a World
1
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Law Processing, Wld Credit Repair, and World Law Debt; (b) Family Capital Investment &
Management LLC, a Delaware limited liability company, a/k/a FCIAM Property
Management; (c) World Law Debt Services, LLC, a Delaware limited liability company; (d)
World Law Processing, LLC, a Delaware limited liability company; (e) Derin Scott, an
individual; (~ David Klein, an individual; and (g) Bradley James Haskins, individually and
d/b/a as World Law Group, LLP, World Law Group America, LLP, WLD Price Global,
Inc., World Law Forms and Mediation, and World Law South. The Bureau brought this
Complaint under sections 1031(a), 1036(a), 1054, and 1055 of the Consumer Financial
Protection Act of 2010 ("CFPA"), 12 U.S.C. §§ 5531(a), 5536(a), 5564(a), and 5581, and
the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§
6102(c)(2), 61Q5(d), alleging Defendants violated the CFPA and the Telemarketing Sales
Rule ("TSR"), 16 C,F.R. pt. 310 in connection with the marketing and sale of debt relief
services.
The Bureau and Defendants Derin Scott and David Klein ("Settling Defendants")
and Relief Defendant Shannon Scott ("Relief Defendant") have agreed to entry of this
Stipulated Final Judgment and Order ("Order") by this Court.
Therefore, it is ORDERED and ADNDGED as follows:
FINDINGS
1. This Court has jurisdiction over the parties and the subject matter of this action
pursuant to 12 U.S.C. § 5565(a)(1) and 28 U.S.C. §§ 1331, 1345, and 1367.
2. Venue in the Southern District of Florida is proper under 28 U.S.C. § 1391(b) and (c)
and 12 U.S.C. § 55640.
3, The Bureau, Settling Defendants, and Relief Defendant agree to entry of this Order
to settle and resolve all matters in dispute arising from the conduct alleged in the
Complaint.
4. The Complaint states claims upon which relief may be granted under the CFPA, 12
U.S.C. §§ 5531(a), 5536(a), 5564(a), and 5581, and the Telemarketing and Consumer
Fraud and Abuse and Prevention Act, 15 U.S.C. §§ 6102(c)(2), 6105(d), and its
implementing regulation, 16 C.F.R. part 310. The relief provided in this Order is
appropriate and available pursuant to Sections 1054 and 1055 of the CFPA, 12
~a
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U.S.C. §§ 5564, 5565, and pursuant to the Telemarketing and Consumer Fraud and
Abuse and Prevention Act, 15 U.S.C. § 6102(c).
S. Settling Defendants and Relief Defendant waive all rights to seek judicial review or
otherwise challenge or contest the validity of this Order and any claim they may
have under the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the
prosecution of this action to the date of this Order. Each Party agrees to bear its own
costs and expenses, including, without limitation, attorneys' fees.
6. Entry of this Order is in the public interest.
7, Settling Defendants neither admit nor deny the allegations in the Complaint, except
as specifically stated herein, but do not waive any privilege.
8~ Settling Defendants are each a "covered person," "related person," and a "service
provider" as those terms are defined by the CFPA, 12 U,S.C. § 5481(6)(A), (19),
(25), and (26).
9, During the Relevant Period, Defendants offered or provided financial advisory
services, including services to assist consumers settle debts. 12 U.S.C. §
5481(15)(A)(viii).
10. Defendants' business included inducing the purchase of financial advisory services
by use of one or more telephones and involved more than one interstate telephone
call. Defendants are "sellers" or "telemarketers" of a "debt relief service," who
engage in "telemarketing," as defined in the TSR. 16 C.F.R. § 310.2.
11. In the course of telemarketing debt relief services from October 27, 2010 to the
Ef~'ective Date, Defendants requested or received payment of fees or consideration
from consumers for debt relief services before: (1) they had renegotiated, settled,
reduced, or otherwise altered the terms of at least one debt pursuant to a settlement
agreement, debt management plan, or other such valid contractual agreement
executed by the consumer; and (2) the consumer had made at least one payment
pursuant to that agreement.
12. During the Relevant Period, the Defendants' operation received approximately
$106,813,049 in payments and fees, a substantial portion of which were Advance
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Fees, from Affected Consumers. These payments and fees were divided among the
multiple participants.
13. Defendants conducted the business practices described in paragraphs 8-12 above
through cooperation among the Corporate and Individual Defendants, which
operated together to offer and provide debt relief services to consumers through the
World Law debt relief program. In this joint operation, Defendants often used
overlapping employees and offices, commingled funds, and shared operations and
proceeds.
14. The Court finds that Defendants' acts and practices described above violate the TSR,
16 C.F.R. § 310,4(a)(5)(i).
15. Relief Defendant Shannon Scott has received, directly or indirectly, funds or other
assets from Defendants that are traceable to funds obtained from Defendants'
customers through the acts or practices described in paragraphs 8-13 above. Relief
Defendant Shannon Scott is not a bona fide purchaser with legal and equitable title
to Defendants' customers' funds or other assets.
16. All pending motions by Settling Defendants and Relief Defendant are hereby denied
as moot.
DEFINITIONS
The following definitions apply to this Order:
17. "Advance Fee" means any fee or consideration requested or received by a Debt
Relief Service Provider from a consumer for any Debt Relief Service, whether
directly or indirectly, that occurs before:
a. the Debt Relief Service Provider has renegotiated, settled, reduced, or otherwise
altered the terms of a debt pursuant to a settlement agreement, debt management
plan, or other valid contractual agreement executed by the Consumer; and
b. the Consumer has made at least one payment pursuant to that settlement
agreement, debt management plan, or other valid contractual agreement between
the Consumer and the creditor or debt collector.
4
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18. "Affected Consumers" means any consumer who paid an Advance Fee or any other
fees to Defendants or their officers, agents, servants, employees, or attorneys for
Debt Relief Products or Services between July 1, 2010 and the Effective Date,
19. "Assets" means any legal or equitable interest in, right to, or claim to any real,
personal, or intellectual property owned or controlled by, or held, in whole or in part
for the benefit of, or subject to access by any Defendant or Relief Defendant,
wherever located, whether in the United States or abroad. This includes, but is not
limited to, chattel, goods, instruments, equipment, fixtures, general intangibles,
effects, leaseholds, contracts, mail or other deliveries, shares of stock, commodities,
futures, inventory, checks, notes, accounts, credits, receivables (as those terms are
defined in the Uniform Commercial Code), funds, cash, and trusts, including, but
not limited to any trust held for the benefit of any Defendant, Relief Defendant, any
of the Individual Defendants' minor children, or any of the Individual Defendants'
spouses.
20. "Assisting Others" includes, but is not limited to;
a. Consulting in any form whatsoever;
b. Providing paralegal or administrative support services;
c. Performing customer service functions including, but not limited to, receiving or
responding to consumer complaints;
d. Formulating or providing, or arranging for the formulation or provision of, any
advertising or marketing material, including, but not limited to, any telephone
sales script, direct mail solicitation, or the text of any Internet website, email, or
other electronic communication;
e. Formulating or providing, or arranging for the formulation or provision of, any
marketing support material or service, including but not limited to, web or
Internet Protocol addresses or domain name registration for any Internet
websites, affiliate marketing services, or media placement services;
f. Providing names of, or assisting in the generation of, potential customers;
g. Performing marketing, billing, or payment services of any kind; and
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h. Acting or serving as an owner, officer, director, manager, or principal of any
entity.
21. "Bankrnptcy Proceeding" means In re Orion Processing LLC, Case No. 15-10279
currently pending in the United States Bankruptcy Court, Western District of Texas,
Austin Division.
22. "Chapter 7 Tmstee" means the Trustee appointed over Defendant Orion Processing,
LLC by the United States Bankruptcy Court, Western District of Texas, Austin
Division in the Bankruptcy Proceeding, and any successor,
23. "Consumer Financial Product or Service" is synonymous in meaning and equal in
scope to the definition of the term in Section 1002(5) of the CFPA, 12 U.S.C. §
5481(5), and, subject to applicable restrictions contained in the CFPA, includes, but
is not limited to:
a. Extending credit and servicing loans, including acquiring, purchasing, selling,
brokering, or other extensions of credit (other than solely extending commercial
credit to a person who originates consumer credit transactions);
b, Providing financial advisory services to consumers on individual financial
matters or relating to proprietary financial products or services, including
providing credit counseling to any consumer or providing services to assist a
consumer with debt management or debt settlement, modifying the terms of any
extension of credit, or avoiding foreclosure;
c. Collecting, analyzing, maintaining, or providing consumer report information or
other account information, including information relating to the credit history of
consumers, used or expected to be used in connection with any decision
regarding the offering or provision of a Consumer Financial Product or Service;
or
d. Collecting debt related to any Consumer Financial Product or Service.
24. "Debt Relief Product or Service" means any program or service represented,
directly or by implication, to renegotiate, settle, or in any way alter the terms of
payment or other terms of the debt between a consumer and one or more creditors or
r.~
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debt collectors, including but not limited to, a reduction in the balance, interest rate,
or fees owed by a person to a creditor or debt collector.
25. "Debt Relief Service Provider" means any Person that offers or provides any Debt
Relief Product or Service.
26. "Defendants" means the Individual Defendants and the Corporate Defendants,
individually, collectively, or in any combination, and each of them by whatever
names each might be known;
a. "Corporate Defendants" means. Orion Processing, LLC d/b/a World Law
Processing, Wld Credit Repair and World Law Debt (collectively, "Orion") and
its successors and assigns; Family Capital Investment &Management LLC a/k/a
FCIAM Property Management ("FCIAM") and its successors and assigns;
World Law Debt Services, LLC and its successors and assigns; and World Law
Processing, LLC and its successors and assigns.
b. "Individual Defendants" means Derin Scott, David Klein, and Bradley Haskins,
collectively, or in any combination, and each of them by any other names by
which they might be known;
c. "Relief Defendant" means Shannon Scott individually and by any other name
by which she might be known;
d. "Settling Defendants" means Derin Scott and David Klein collectively, or in any
combination, and each of them by any other names by which they might be
known.
27. "Effective Date" means the date on which the Order is issued.
28. "Enforcement Director" means the Assistant Director for the Office of Enforcement
for the Consumer Financial Protection Bureau, or his/her delegee.
29. "Receiver" means Robb Evans &Associates LLC.
30. "Related Consumer Action" means a private action by or on behalf of one or more
consumers or an enforcement action by another governmental agency brought
against Defendant based on substantially the same facts as described in the
Complaint.
31, "Relevant Period" includes the period from July 1, 2010 to the Effective Date.
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32. "Telemarketing" means any plan, program, or campaign that is conducted to induce
the purchase of goods or services or a charitable contribution, by use of one or more
telephones, whether or not covered by the Telemarketing Sales Rule, 16 C.F.R. Fart
310.
ORDER
Conduct ProvisionsI.
PERMANENT BAN ON TELEMARKETING AND DEBT RELIEF PRODUCTS ORSERVICES
It is ORDERED that:
33. Settling Defendants and their officers, agents, servants, employees, and attorneys,
and all other persons in active concert or participation with them who have actual
notice of this Order, whether acting direcfly or indirectly, are permanently restrained
from any of the following:
a, Participating in telemarketing or assisring others engaged in telemarketing any
Consumer Financial Product or Service;
b. Advertising, marketing, promoting, offering for sale, selling, or providing any
Debt Relief Product or Service;
c. Assisting others in advertising, marketing, promoting, offering for sale, selling, or
providing any Debt Relief Product or Service; and
d. Receiving any remuneration or other consideration from, holding any ownership
interest in, providing services to, or working in any capacity for any person
engaged in or assisting others in advertising, marketing, promoting, offering for
sale, selling, or providing any Debt Relief Product or Service.
II.PROHIBITION ON DECEPTIVE PRACTICES
It is FURTHER ORDERED that:
34. Settling Defendants and their successors, assigns, officers, agents, servants,
employees, and attorneys, and those persons in active concert or participation with
any of them, who receive actual notice of this Order whether acting directly or
indirectly, in connection with the advertising, marketing, promotion, offering for
E
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sale, sale, or performance of any Consumer Financial Product or Service may not
misrepresent, or assist others in misrepresenting, expressly or impliedly:
a. Any aspect of any Consumer Financial Product or Service, including but not
limited to, the amount of savings a consumer will receive from purchasing, using,
or enrolling in such Consumer Financial Product or Service;
b. The total costs to purchase, receive, or use, or the quantity of any Consumer
Financial Product or Service, including that there will be no charge for all or a
portion of such service;
c. Any material restriction, limitation, or condition to purchase, receive, or use any
Consumer Financial Product or Service;
d. Any aspect of the nature or terms of a refund, cancellation, exchange, or
repurchase policy for any Consumer Financial Product or Service, including but
not limited to, the likelihood of a consumer obtaining a full or partial refund, or
the circumstances in which a full or partial refund will be granted to the
consumer;
e. The income, profits, sales, or savings likely to be achieved from any Consumer
Financial Product or Service;
f. The terms or rates that are available for any loan or other extension of credit;
g, Any person's ability to improve or otherwise affect a consumer's credit record,
credit history, or credit rating or ability to obtain credit;
h. That a consumer will receive legal representation or services from an attorney
duly licensed to practice law;
i. Any material aspect of the performance, efficacy, nature, or central characteristic
of any Consumer Financial Product or Service; and
j, Any other fact material to consumers concerning any Consumer Financial
Product or Service.
35. In addition, Settling Defendants, whether acting directly or indirectly, in connecrion
with the advertising, marketing, promotion, offering for sale, or sale of any
Consumer Financial Product or Service, are hereby permanently restrained and
enjoined from making any representation or assisting others in making any
L]
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representation, expressly or by implication, about the benefits, performance, or
efficacy of any Consumer Financial Product or Service, unless, at the time such
representation is made, such Settling Defendant possesses and relies upon competent
and reliable evidence that substantiates that the representation is true.
36. In addition, Settling Defendants, whether acting directly or indirectly, are
permanently restrained from offering or providing any Consumer Financial Product
or Service for which a state license, registration, permit, bonding or other regulatory
authority is required, unless such Settling Defendant first obtains such authority.
III.
PROHIBITED USE OF CUSTOMER INFORMATIONIt is FURTHER ORDERED that:
37. Settling Defendants, and their officers, agents, servants, employees, and attorneys
who receive actual notice of this Order, whether acting directly or indirectly, may not
disclose, use, or benefit from customer information, including the name, address,
telephone number, email address, social security number, other identifying
information, or any data that enables access to a customer's account (including a
credit card, bank account, or other financial account), that Defendants obtained
before the Effective Date in connection with Consumer Financial Products or
Services or Debt Relief Products or Services offered by Defendants.
It is FURTHER ORDERED that:
38. The Settling Defendants, and their officers, agents, servants, employees, attorneys,
and all other persons in acrive concert or participation with them who receive actual
notice of this Order, whether acting direcfly or indirectly, are hereby permanently
restrained and enjoined from attempting to collect, collecting, selling, or assigning, or
otherwise transferring any right to collect payment from any consumer who
purchased or agreed to purchase Debt Relief Products or Services from Defendants,
However, customer information may be disclosed if requested by a government
agency or required by law, regulation, court rules or order.
10
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IV.
COOPERATION WITH THE BUREAU
It is FURTHER ORDERED that:
39. Settling Defendants must cooperate fully and in good faith with the Bureau in
connection with this action or any subsequent investigation or litigation related to or
associated with the conduct described in the Bureau's Complaint, including related
to the Bankruptcy Proceeding. Settling Defendants must provide truthful and
complete information, evidence, and testimony. Settling Defendants must appear for
interviews, conferences, pretrial discovery, review of documents, deposition, trial, or
any other proceedings that the Bureau may reasonably request upon S days written
notice, or other reasonable notice, at such places and times as the Bureau may
designate, without the service of compulsory process.
40. Settling Defendants must cooperate fully to help the Bureau determine the identity,
location and contact information of any Defendant and any person who might have
contact information for any Defendant. Settling Defendants must provide such
information in their or their agents' possession or control within 14 days of receiving
a written request from the Bureau.
41. Settling Defendants must cooperate fully to help the Bureau determine the identity,
location, contact information and amount of injury sustained by each Affected
Consumer. Settling Defendants must provide such information in their or their
agents' possession or control within 14 days of receiving a written request from the
Bureau.
ORDER TO PAY REDRESS
It is FURTHER ORDERED that:
42. A judgment for monetary relief is entered in favor of the Bureau and against Settling
Defendants, jointly and severally, in the amount of $106,813,049 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 43 - 47, 52 - 53,
and subject to Section VII of this Order.
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a. Of this judgment for monetary relief, Relief Defendant shall be jointly and
severally liable for the amount of $580,133, such amount also being for the
purpose of providing redress to Affected Consumers. However, full payment of
Relief Defendant's portion of this judgment will be suspended upon satisfaction
of the obligations in paragraphs 43 - 47, and subject to Section VII of this Order.
43, Settling Defendants and Relief Defendant hereby grant to the Bureau all rights and
claims they have to any frozen assets and shall forfeit any rights to those funds,
including but not limited to assets in accounts at:
a. Space Coast Credit Union in the following accounts:
i. Account Number XXXXX0589 in the name of Shannon Scott;
ii. Account Number XXXXX0594 in the name of Shannon Scott;
iii. Account Number XXXXX0668 in the name of Shannon Scott and Zain Scott;
iv. Account Number XXXXX0670 in the name of Shannon Scott and Laken
Scott;
v. Account Number XXXXX0602 in the name of Shannon Scott and Kalea A.
Scott; and
vi. Account Number XXXXX0584 in the name of Micah Scott.
Within ten (10) business days from receipt of a copy of this Order by any means,
including but not limited to via facsimile or email, Space Coast Credit Union
shall transfer to the Bureau or its designated agent all funds held in the frozen
accounts listed in subparagraphs (i) through (vi) above by wire transfer to the
Bureau or to the Bureau's agent and according to the Bureau's wiring
instructions.
b. Connect Credit Union in Account Number XXXXX02688 in the name of
Shannon Scott. Within ten (10) business days from receipt of a copy of this Order
by any means, including but not limited to via facsimile or email, Connect Credit
Union shall transfer to the Bureau or its designated agent all funds held in
Account Number XXXXX02688 in the name of Shannon Scott by wire transfer
to the Bureau or to the Bureau's agent and according to the Bureau's wiring
instructions.
12
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c. Wells Fargo Bank in Account Number XXXXX6897 in the name CSCS, LLC,
which is an account owned and controlled by Settling Defendant Klein. Within
ten (10) business days from receipt of a copy of this Order by any means,
including but not limited to via facsimile or email, Wells Fargo Bank shall
transfer to the Bureau or its designated agent all funds held in Account Number
XXXXX6897 in the name CSCS, LLC, by wire transfer to the Bureau or to the
Bureau's agent and according to the Bureau's wiring instructions.
44. Settling Defendant David Klein also hereby grants to the Bureau all rights and claims
he has to the assets currently held in the following accounts at Wells Fargo Bank and
shall forfeit any rights to the funds: Account Numbers XXXXX4293,
XXXXXX2941, and XXXXXX0908, all in the name National Integrated Solutions;
45, To the extent Settling Defendant Scott has not already done so, Settling Defendant
Scott is ordered to relinquish any interest in and transfer and relinquish to Receiver,
or to its designated agent, possession, custody, and control of the following assets
within seven (7) days of entry of this Order, unless otherwise stated.
a. Dominion and all legal and equitable right, title, and interest in, as well as any
accounts receivable from, the following entities, their successors, assigns,
affiliates, or subsidiaries, and each of them by whatever names each might be
known, whether those rights, titles, interest, and amounts receivable are held by
one or more Defendants: Orion Limo Services, LLC; Psamathe Sands, LLC;
Global Energy Partners, LLC; GNS Frac, LLC; Prop Transport &Trading LLC;
lOK International LLC; All Things Energy, LLC; Athlete Entertainment Group,
LLC; Seamless Human; Appz, LLC DBA App Ventures; and 9011 Mountain
Ridge Dr., LLC;
b. All funds in the following accounts:
i. Funds held in Account Number XXXXXX2083 at IBC Bank in the name of
All Things Energy LLC;
ii, Funds held in Account Number XXXXXX2641 at Bank of America in the
name of Appz, LLC DBA App Ventures;
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iii. Funds held in Account Number XXXXX9966 at Bank of America in the
name Orion Limo Services, LLC. Within ten (10) business days from receipt
of a copy of this Order by any means, including but not limited to via
facsimile or email, Bank of America shall transfer to the Receiver or its
designated agent all funds held in Account Number XXXXX9966 in the
name Orion Limo Services, LLC.
c. The following vehicles including certificates of title:
i. 2007 Cadillac Escalade SUV;
ii. 2007 Mercedes Benz S600;
iii. 1995 Range Rover County LWB SUV
iv. 2007 MB Sport B52 boat;
v. 1999 Malibu LX boat;
vi. Pair of 2007 Polaris Vintage Jet Skis;
vii. Polaris 4-Wheeler;
viii. 2004 Kawasaki KDX Motorcross Bike;
ix. 2004 Kawasaki KX60 Motorcross Bike;
x. 2006 Honda CFR Motorcross Bike;
xi. 2012 Husqvarna Zero turn Lawn Mower;
xii. 4 2012 mini ATVs;
xiii, Triathalon racing bicycles; and
d. The building located at 9011 Mountain Ridge Drive, Austin, Texas and any
personal property inside the building.
Provided, however, that the Receiver may abandon, without further court order, any such
Asset set forth in this paragraph or otherwise it deems in its discretion to be of
inconsequential or no value.
46. Settling Defendant Scott shall cooperate fully with the Receiver and shall execute
any instrument or document presented by the Receiver, and take any other actions
the Receiver deems necessary or appropriate to effect the transfers required by
Paragraph 45. All of the property set forth in paragraph 45 shall constitute Assets of
the receivership estate.
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47. Settling Defendants and Relief Defendant hereby grant to the Bureau all rights and
claims they have to any other frozen Assets currently in the possession, custody or
control of the Receiver, and shall forfeit any rights to the funds in the receivership
estate, including but not limited to:
a. All funds held, obtained, or to be obtained by the Receiver since the inception of
the receivership whether through this Stipulated Order or otherwise.
48. With regard to any redress that Settling Defendants and Relief Defendant pay under
this Section V (Order to Pay Redress), if Settling Defendants or Relief Defendant
receive, directly or indirectly, any reimbursement or indemnification from any
source, including but not limited to payment made under any insurance policy, or if
Settling Defendants or Relief Defendant secure a tax deduction or tax credit with
regard to any federal, state, or local tax, Settling Defendants or Relief Defendant
must: (a) immediately notify the Enforcement Director in writing, and (b) within ten
(10) days of receiving the funds or monetary benefit, Settling Defendants or Relief
Defendant must transfer to the Bureau the full amount of such funds or monetary
benefit (Additional Payment) to the Bureau or to the Bureau's agent according to the
Bureau's wiring instructions. After the Bureau receives the Additional Payment, the
amount of the suspended judgment referenced in Paragraph 42 will be reduced by the
amount of the Additional Payment and the Additional Payment will be applied
toward satisfaction of the monetary judgment entered in Paragraph 42.
49, Any funds received by the Bureau pursuant to this Order will be deposited into a
fund or funds administered by the Bureau or to the Bureau's agent according to
applicable statutes and regulations to be used to provide redress to Affected
Consumers for the fees they paid to Defendants, and for any attendant expenses for
the administration of any such redress.
50. If the Bureau determines, in its sole discrerion, that redress to consumers is wholly or
partially impracticable or otherwise inappropriate, or if funds remain after redress is
completed, the Bureau will deposit any remaining funds in the U.S. Treasury as
disgorgement. Settling Defendants will have no right to challenge any actions that
the Bureau or its representatives may take under this paragraph.
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51. Payment of redress to any Affected Consumer under this Order may not be
conditioned on that Affected Consumer waiving any right.
VI.
ORDER TO PAY CIVIL MONEY PENALTIES
It is FURTHER ORDERED that:
52. Under Secrion 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of the violations
of law alleged in the Complaint and continuing until the Effective Date, and taking
into account the factors in 12 U.S.C. § 5565(c)(3), Settling Defendant Derin Scott
must pay a civil money penalty of $1 to the Bureau; and Settling Defendant David
Klein must pay a civil money penalty of $1 to the Bureau. These nominal civil
penalties are based on Settling Defendants' limited ability to pay as attested to in all
financial statements and supporting documents that Settling Defendants submitted to
the Bureau, and Settling Defendant Scott's and Settling Defendant Klein's oral
testimony provided on December 15, 2015 and December 22, 201 S, respectively.
53. Within 10 days of the Effective Date, Settling Defendants must each pay the civil
money penalty by wire transfer to the Bureau or to the Bureau's agent in compliance
with the Bureau's wiring instructions.
54. The civil money penalty paid under this Order wi11 be deposited in the Civil Penalty
Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U,S.C. §
5497(d).
55. Settling Defendants and Relief Defendant must treat the civil money penalty paid
under this Order as a penalty paid to the government for all purposes. Regardless of
how the Bureau ultimately uses those funds, Settling Defendants and Relief
Defendant may not:
a. Claim, assert, or apply fox a tax deduction, tax credit, or any other tax benefit for
any civil money penalty paid under this Order; or
b, Seek or accept, directly or indirectly, reimbursement or indemnification from any
source, including but not limited to payment made under any insurance policy,
with regard to any civil money penalty paid under this Order.
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56. To preserve the deterrent effect of the civil money penalty in any Related Consumer
Action, Settling Defendants may not argue that they are entitled to, nor may Settling
Defendants benefit by, any offset or reduction of any monetary remedies imposed in
the Related Consumer Action because of the civil money penalty paid in this action
or because of any payment that the Bureau makes from the Civil Penalty Fund
(Penalty Offset). If the court in any Related Consumer Action grants such a Penalty
Offset, Settling Defendants must, within 30 days after entry of a final order granting
the Penalty Offset, notify the Bureau, and pay the amount of the Penalty Offset to
the U.S. Treasury. Such a payment will not be considered an additional civil money
penalty and will not change the amount of the civil money penalty imposed in this
action.
S7. The civil penalty imposed by this Order represents a civil penalty owed to the United
States Government, is not compensation for actual pecuniary loss, and, thus, as to
each Settling Defendant, it is not subject to discharge under the Bankruptcy Code
under 11 U.S.C. § 523(a)(7).
VII.
EFFECT OF MISREPRESENTATION OR OMISSION REGARDING FINANCIALCONDITION
It is FURTHER ORDERED that:
58. The suspension of the monetary judgment entered in Section V of this Order is
expressly premised on the truthfulness, accuracy, and completeness of Settling
Defendants' and Relief Defendant's financial statements and supporting documents,
all of which Settling Defendants and Relief Defendant assert are truthful, accurate,
and complete, and which include:
a. Financial Statement of Derin and Shannon Scott, including the attachments,
signed on September 11, 2015 and submitted to the Bureau on or about October
1, 2015;
b. Financial Statement of David Klein, including the attachments, signed on
September 1, 2015 and submitted to the Bureau on or about September 20, 2015;
c. Updated Financial Statement of David Klein, including the attachments, signed
on May 23, 2016, and submitted to the Bureau on or about May 24, 2016;
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d. Updated Financial Statement of Derin and Shannon Scott, including the
attachments, submitted to the Bureau on or about May 24, 2016, and signed on
July 15, 2016; and
e. Derin Scott's and David Klein's oral testimony provided on December 15, 2015
and December 22, 2015, respectively.
59. If upon motion by the Bureau, the Court determines that any Settling Defendant or
Relief Defendant has failed to disclose any material asset or that any of his/her
financial statements or oral testimony contain any material misrepresentation or
omission, including materially misstaring the value of any asset, the Court shall
terminate the suspension of the monetary judgment entered in Section V and without
further adjudication, shall reinstate the judgment entered in Section V of this Order
and the full judgment of $106,813,049 shall be immediately due and payable, less
any amounts paid to the Bureau under Section V of this Order.
60. If the Court terminates the suspension of the monetary judgment under this Section,
the Bureau will be entitled to interest on the judgment, computed from the date of
entry of this Order, at the rate prescribed by 28 U.S.C. § 1961, as amended, on any
outstanding amounts not paid,
61. Provided, however, that in all other respects this Order shall remain in full force and
effect unless otherwise ordered by the Court; and, provided further, that proceedings
instituted under this provision would be in addition to, and not in lieu of any other
civil or criminal remedies as may be provided by law, including any other
proceedings that the Bureau may initiate to enforce this Order.
VIII.
ADDITIONAL MONETARY PROVISIONS
It is FURTHER ORDERED that:
62. In the event of any default on Settling Defendants' and Relief Defendant's
obligations to make payment under this Order, interest, computed under 28 U.S.C, §
1961, as amended, will accrue on any outstanding amounts not paid from the date of
default to the date of payment, and will immediately become due and payable.
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63. Settling Defendants and Relief Defendant must relinquish all dominion, control, and
title to the funds paid to the fullest extent permitted by law and no part of the funds
may be returned to Settling Defendants or Relief Defendant.
64, The facts alleged in the Bureau's Complaint will be taken as true and be given
collateral estoppel effect, without further proof, in any proceeding based on the entry
of the Order, or in any subsequent civil litigation by the Bureau to enforce this Order
or its rights to any payment or monetary judgment under the Order, such as a non-
dischargeability complaint in any bankruptcy case;
65. The facts alleged in the Complaint establish all elements necessary to sustain an
action by the Bureau pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11
U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for such
purposes.
66. Under 31 U.S.C. § 7701, Settling Defendants and Relief Defendant, unless they have
already done so, must furnish to the Bureau any taxpayer identifying numbers
associated with them and their assets, which may be used for purposes of collecting
and reporting on any delinquent amount arising out of this Order.
67. Within 30 days of the entry of a final judgment, Order, or settlement in a Related
Consumer Action, Settling Defendants and/or Relief Defendant must notify the
Enforcement Director of the final judgment, Order, or settlement in writing. That
notification must fully identify the matter, indicate the amount of redress, if any, that
Settling Defendants and Relief Defendant paid or are required to pay to consumers
and describe the consumers or classes of consumers to whom that redress has been or
will be paid.
68. Under Section 604(a)(I) of the Fair Credit Reporting Act, 15 U.S.C.§ 1681 b(a)( 1),
any consumer reporting agency may furnish a consumer report concerning any
Settling Defendant and Relief Defendant to the Bureau, which may be used for
purposes of collecting and reporting on any delinquent amount arising out of this
Order.
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IX.
LIFTING OF ASSET FREEZE
IT IS FURTHER ORDERED that:
69. The freeze on the Assets of Settling Defendants and Relief Defendant Shannon Scott
is modified to permit the payments and other transfers of Assets identified in
Sections V and VI of this Order. Upon completion of all payment and other
obligations identified Sections V and VI of this Order, the freeze of the Assets
pursuant to the Preliminary Injunction entered on September 14, 2015 ("September
14, 2015 PI") (ECF No. 42), shall be dissolved.
Compliance ProvisionsX.
REPORTING REQUIREMENTS
It is FURTHER ORDERED that;
70. Settling Defendants must notify the Bureau of any development that may af~'ect
compliance obligations arising under this Order, including but not limited to, a
dissolution, assignment, sale, merger, or other action that would result in the
emergence of a successor company; the creation or dissolution of a subsidiary,
parent, or affiliate that engages in any acts or practices subject to this Order; the filing
of any bankruptcy or insolvency proceeding by or against any Settling Defendants; or
a change in any Settling Defendants' name or address. Settling Defendants must
provide this notice, if practicable, at least 30 days before the development, but in any
case no later than 14 days after the development.
71. Within 7 days of the Effective Date, each Settling Defendant must;
a. Designate at least one telephone number and email, physical, and postal address
as points of contact, which the Bureau may use to communicate with such
Settling Defendant;
b. Identify all businesses for which Settling Defendant is the majority owner, or that
such Settling Defendant directly or indirectly controls, by all of their names,
telephone numbers, and physical, postal, email, and Internet addresses;
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c. Describe the activities of each such business, including the products and services
offered, and the means of advertising, marketing, and sales.
d. Identify each of their telephone numbers and all email, Internet, physical, and
postal addresses, including all residences;
e. Describe in detail. each Settling Defendants involvement in any business for
which he performs services in any capacity or which he wholly or partially owns,
including Settling Defendants ritle, role, responsibilities, participation, authority,
control, and ownership.
72. Each Settling Defendant must report any change in the information required to be
submitted under Paragraph 71 above at least 30 days before the change or as soon as
practicable after the learning about the change, whichever is sooner.
73. Within 90 days of the Effective Date, and again one year after the Effective Date,
each Settling Defendant must submit to the Enforcement Director an accurate
written compliance progress report sworn under penalty of perjury ("Compliance
Report"), which, at a minimum;
a. Describes in detail the manner and form in which such Settling Defendant has
complied with this Order; and
b. Attaches a copy of each Order Acknowledgment obtained under Section XI,
unless previously submitted to the Bureau.
74. After the one-year period, each Settling Defendant must submit to the Enforcement
Director additional Compliance Reports within 14 days of receiving a written request
from the Bureau.
XI.
ORDER DISTRIBUTION AND ACKNOWLEDGMENT
It is FURTHER ORDERED that:
75. Within 7 days of the Effective Date, each Settling Defendant must submit to the
Enforcement Director an acknowledgment of receipt of this Order, sworn under
penalty of perjury,
76. Within 30 days of the Effective Date, each Settling Defendant, for any business for
which he is the majority owner or which he directly or indirectly controls, must
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deliver a copy of this Order to each of its board members and executive officers, as
well as to any managers, employees, service providers, or other agents and
representatives who have responsibilities related to the subject matter of the Order.
77. For 5 years from the Effective Date, each Settling Defendant, for any business for
which he is the majority owner or which he directly or indirectly controls, must
deliver a copy of this Order to any business entity resulting from any change in
structure referred to in Section X (Reporting Requirements), any future board
members and executive officers, as well as to any managers, employees, service
providers, or other agents and representatives who will have responsibilities related
to the subject matter of the Order before they assume their responsibilities, and any
entity or regulatory body from whom he seeks a business license.
78. Each Settling Defendant must secure a signed and dated statement acknowledging
receipt of a copy of this Order, ensuring that any electronic signatures comply with
the requirements of the E-Sign Act, 15 U.S.C, § 7001 et seq., within 30 days of
delivery, from all persons receiving a copy of this Order under this Section.
XII.
RECORDKEEPING
It is FURTHER ORDERED that:
79. Each Settling Defendant must create, for at least ten (10) years from the Effective
Date, the following business records for any business involving consumer financial
products or services for which each Settling Defendant, individually or collectively
with any other Defendant, is a majority owner or which he directly or indirectly
controls;
a. All documents and records necessary to demonstrate full compliance with each
provision of this Order, including all submissions to the Bureau.
b. Copies of all sales scripts; training materials; advertisements; websites; and other
marketing materials; and including any such materials used by a third party on
behalf of Defendant.
c. All documents regarding each individual consumer showing his or her
enrollment in that consumer financial product or service, including: the
22
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consumer's name, address, phone number, email address; amount paid, quantity
of the product or service purchased, description of the product or service
purchased, the date on which the product or service was purchased, a copy of any
promotional or welcome materials provided, and, if applicable, the date and
reason consumer left the program.
d. Accounting records showing the gross and net revenues generated by the all
consumer financial products or services, and all costs incurred in generating those
revenues;
e. All consumer complaints and refund requests (whether received directly or
indirectly, such as through a third party), and any responses to those complaints
or requests.
f. Records showing, for each employee providing services, that person's: name;
telephone number; email, physical, and postal address; job title or position; dates
of service; and, if applicable, the reason for termination.
g, Records showing, for each service provider providing services related to relevant
consumer financial product or service, the name of a point of contact, and that
person's telephone number; email, physical, and postal address; job title or
position; dates of service; and, if applicable, the reason for termination.
80. Each Settling Defendant must retain the documents identified in Paragraph 79 for at
least five (5) years after its creation.
81. Each Settling Defendant must make the documents identified in Paragraph 79
available to the Bureau upon the Bureau's request.
XIII.
NOTICES
It is FURTHER ORDERED that:
82. Unless otherwise directed in writing by the Bureau, Settling Defendants must provide
all submissions, requests, communications, or other documents relating to this Order
in writing, with the subject line, "CFPB v. Orion Processing, et al., Case No. 15-23070-
Civ-COOKE/TORR.ES," and send them either:
23
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By overnight courier (not the U.S. Postal Service) to.Assistant Director for EnforcementConsumer Financial Protection BureauATTENTION: Office of Enforcement1625 Eye Street, N.W.Washington D.C. 20006; or
By first-class mail to the below address and contemporaneouslyby emailTO: ~{'.Ii~iil':'c'[11~'i71:~~~i~lllE~~l~lilrt"'r~~~'~~}~).,~~)t~;
Assistant Director for EnforcementConsumer Financial Protecrion BureauATTENTION: Office of Enforcement1700 G Street, N.W.Washington D.C. 20552
XIV.
COMPLIANCE MO1vITORING
It is FURTHER ORDERED that:
83. To monitor Settling Defendants' compliance with this Order, within fourteen [14]
days of receipt of a written request from the Bureau, each Settling Defendant must
submit to the Bureau additional compliance reports or other requested information,
which must be sworn to under penalty of perjury; provide sworn testimony; or
produce documents, The Bureau is also authorized to obtain discovery, without
further leave of court, using any of the procedures prescribed by Federal Rules of
Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.
84. For purposes of this Section, the Bureau may communicate directly with each
Settling Defendant, unless such Settling Defendant retains counsel related to these
communications.
85. Each Settling Defendant must permit Bureau representatives to interview any
employee or other person affiliated with such Defendant who has agreed to such an
interview. The person interviewed may have counsel present.
86. The Bureau is authorized by this Order to use all other lawful means, including
posing, through its representatives, as consumers, suppliers, or other individuals or
entities, to the Settling Defendants or any individual or entity affiliated with the
Settling Defendants, without the necessity of identification or prior notice. Nothing
24
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in this Order will limit the Bureau's lawfiil use of compulsory process, under 12
C,F.R. § 1080.6.
XV.
RETENTION OF JURISDICTION
It is FURTHER ORDERED that:
87. The Court will retain jurisdiction of this matter for the purpose of enforcing this
Order.
XVI.
DEFENDANTS' COUNTERCLAIM FOR DECLARATORY NDGMENT
It is FURTHER ORDERED that:
88. Defendants' Counterclaim for Declaratory Judgment is dismissed with prejudice.
XVII.
FINAL JUDGMENT AND ORDER
89. The Bureau and Settling Defendants have consented to the terms and conditions of
this Order as set forth above and have consented to the entry thereof.
2016.DONE and ORDERED in Chambers, in Miami, Florida, this ls` day of August
G~~~llt ,IA G. COOKS
United States District Judge
Copies furnished to:Edwin G. Torres, U. S. Magistrate JudgeCounsel of record
25
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Case 1:16-cv-20122-FAM Document 28-3 Entered on FLSD Docket 08/29/2016 Page 1 of 5
INSTR # 111665040, OR BK 49977 PG 1255, Page 1 of 4, Recorded 07/12/2013 at03:47 PM, Broward County Commission, Doc. D: $4480.00 Deputy Clerk 5025
F'rc{mred by;
Gua Fl. Ca~t~atf, P.L2817 E. Oakland Par1c Hhd„ Sulh 201-AFort Lauderdale; Florida 33396
Ffle Number. I3-PETRUCC[
General Warranty Deed
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Witneseefd~ that she giantw, Yvr and in consideration oPthQ sum oPS6A0,000.00, Six Hundred and Foriy Theusvid Doliera andO(I1CY YSI48ISIC C@1L4IfI1YfbC[OflSy JfSCE1~9i. WACIICOI.IS AClC~SX IQImOVVIC~~, heieby grrm~, brrgeins, sells, 6liena; remises, rekaea, conveysan8 eari~rnu tints !ha grariteo, eft drat etnafri land sicueie in $reward Cowlly, Florttla, viz
Unit No. 2303p of Jackson Tower Los Olas, a Condominiwn, according to The De~lazation ofCondominium recorded in O.R Baok 31332, Page 838, and all amendments tbereta, oftha PublicRecotd3 of Broward County, Florida
Parcel ID Number: 5042-12-C,f.0890
Said propnty Isnot the hcmes(ead oFthe OrentoKs) under the laws and wnsNtutian oP~ht State. of F.larida in ~c neither Grenfoi{s) a anymembers of lhe:household of GwNar{g) reside thereon
~'ogother witl~ all tha ueemena, heceditamFna end appurtenanoe~ tfierow belonging of in rnywisP appanetning.
To Have and to HOId, the umo in Pie simple fd~ver.
Aat~ the yrannm~ berth} covenants wi3tt slid gesntrr that tfie QraneoK i~ lawfutky sc}zbx! of mid lnnd ie~ frq simple; Ihnt the gmntmrhas goat! tight and lns~ful nuthuriry SD sell and Wnvey ~xt laud; that the gaantar hcteby fully kvaments the tiiio to aa(d laird an9 will de&nd'the snnec e~sinst the law(W rlA~ms of all pergnr~s ~.twmso~~+tY.nhd the said land Is fl?eC of ell ancumb'ranees except Wxos aeervingsubaequrnt;to December 31, 2012.
DEED Indiridwl lYlnwy DpA - I,fgYl'on F~aCIox~CM~w
,V
Case 1:16-cv-20122-FAM Document 28-3 Entered on FLSD Docket 08/29/2016 Page 2 of 5
INSTR # 111665040, OR BK 49977 PG 1256, Page 2 of 4
~~~rea ey:
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File .Number. 13 •PETR(ICC[
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Slate ofCounty bf ~ lh~
The fcreeoing inowmenl visa acknowledged iroe 11 ' ~ Q{ }um, 2013 b Peacr V. P c3, )r„ a mewled men ,who Ispersonally known to me or who had produced ~Q ~ is /~/ e .
My Comml~fuo
MYCOMMt3310ND(PIREB
JULY I1, 2p1)
DEED IndiviAuel Wxmnly Decd • Lepl rni FeaoCleaen' CTda
Case 1:16-cv-20122-FAM Document 28-3 Entered on FLSD Docket 08/29/2016 Page 3 of 5
INSTR # 111665040, OR BK 49977 PG 1257, Page 3 of 4
Preperod by:
Ous H: CereaC4 4.42817 &Oakland Park Blvd., Suite 201-APert Laudadele, Florida 33706
File Number, 13=P$7'RUCCf
To WltneAs Whereof, the geld gtanror has signed end sakd ~F~ese prcaenb the dayand year flrat above wriUen.
Slgrne~, s alcdand deNverrd (h osrr presence: ~
{r~~~~~L~-~ 11arb~raAe4raccf-Beeshar
wimrn M;n~ed Nome ~~ l ~ ~~~(~ ~~++~ 6QO f Heywood Cove, Ft Wayne, Indfena 46615
wrtnaea thimcd tbmc
State of ~` .'County of ~-~~
Tha [oregang 1nsCcwrK~rt was scf:nowledged be~suc e this dzy of Tune 7~QI , by fSarl?xrr Petrucci-[3~echer, e. ttle7ried wPman, whois perFaiially known to me or who has ~xmduccd - ~} - `t ~ tiPc n.
Nplrr9P.IN4 thint Hams: i {~/'-')
My Commlpl~n 1~plm; q~(y ___~_.._.LiSj! .f
~~
DEm lndvldud Wirmnry.Dad • Legd do FeaQas~a' CLola
MYCC'?AAMI9~$~pA!E7fPffl~B3UlY 1 T,;2pi7
Case 1:16-cv-20122-FAM Document 28-3 Entered on FLSD Docket 08/29/2016 Page 4 of 5
INSTR # 111665040, OR BK 49977 PG 1258, Page 4 of 4
CERTIFICATE OF APPROVAL, PURCHASEOF
JACKSON TOWER CONDQMINIUM ASSOCIATION, INC,
This is to certify that AK.~BAI~i L1,C have been approved by Jackson TvwerCondominium Associarion, Inc. as the purchasers of the following described property inBrowazd County, Florida.
Unit No, 2303 of ]ackson Towers Las Olas, a Condominium("Condominium"), according to the Declaration of Condominium thereof("Declaration"), recorded in Official Records Book 31332, at page 838, of the PublicRecords of Broward County, Florida, together with an undivided share in the commonelements appurtenant thereto, and any end all aznendments thereto.
Such approval has bin given pursuant to the provisions of the Declaration ofCondominium and said Condominium Associarion waves right of first approval.
Date: ~'~ ~ ~ °~JACKSON TOWER LAS OLAS CONDOMINIUMASSOCIATION, INC.
Name• ~~, t . /-~Title: •~f~ --
STATE OF FLORIDA )}SS:
COUNTY OF ~~~~~
I HHREBY CERTIFY that on this day, before me, an officer duly authorized inthe State aforesaid and in the County aforesaid to take ackne~wledgements, the faregoi~linstrument was acknowledged before me by w_E ~ ~-~ ~ ,theT~~-~ 6 u +' ~ ✓ of JACKSON TOWER LAS OLAS CONDOMINIUMASSOCIATION, INC., a Florida corporation, freely and voluntarily under authority dulyvested in him/her by said corporation. HeJshe is ~rsanally known to me or who hasproduced as idenrificadon.
WITNESS my hand and official seal in the County and State last aforesaid this3'- ~' day of fit-+►^ G , zi713.
h
pvloW~ ~" ~'n printed. or stamped name of Notary Public07►
Case 1:16-cv-20122-FAM Document 28-3 Entered on FLSD Docket 08/29/2016 Page 5 of 5
Case 1:16-cv-20122-FAM Document 28-4 Entered on FLSD Docket 08/29/2016 Page 1 of 3
CFN #-111080263, OR BK 99186 Page 838, Page 1 0£ 2, Rocordad 10/24/2072 at12.16 PM, Broward County Commission, Doc. D $2310,00 Deputy Clerk ERECORD
~i:s Fa'>7L"rd b. n~ti[ r~-~udvn ics:Salnri~o ,1. likal:isAce :1-itle Services, lnc.307 S.F. 141:6 SlrectFort Luuder~s~Tc, FL 333YC;
Pxrcei IcientiRcatinn'N~~mbcr: Sl)4?R2-nrv2480FileNamb~r: KnahpFiau[~ 121.4.:
..._!5::._"""'—' _,: __—.____.__. ..~~Uaiti.;:\hove "Chisl~ine3~ur RcculrJi~~
~r~rranty ~'eecl~Cfie.y' ~~4 ;it'FaT2ty' ~~eied n~flde ibis -~ .r~' slay of LDciutzer, 2U12:beR+•een Phi1iQ~.J. Kna~P. si aingle.rr~sin, and IirnnetE~t3~yisbli~r., s~ .sia,lc man. ~vl~<„~ pusl t~itoce address is P.<.>. Foos 2.307, ForC l~audecd~ile, FL 33303', vxantor, uifd AksiAnn.LLC. n Delativare limited li:il~ili(y cu~~~p:uiV> ~~'.hu:;e post gfYlcc: Eiddiess is IOQ.I~Igrth FCdertl! [ilghway,. }F1215 EorYL«tuder~nle, FL333U1, grantee:
(~Yhertr vc l 1 ~ t tc~in },r i ~r i~d cr.~nice' ind ud:: nU the pwiie& lu.[Itis {:tsin4munl and U.lt hcicx l~r~il ix{ircSenWuvee, and a tii~izs ofu~dividunl;, .i i.i Jae si ~.~ ;>ckti.~nd a.~i_n,. ol~ ii} i r;u fnnn, troy is nml rry~~re>)
Witnes^:L'th. Unit. ~a~d ~r;n~Yor, for i3i~d in consideration oP the swn of'i'I3T: AND NU/LUO DQS~LAI25 ($(O.UO) 3nd`n~liergood and ti~aluablt considcratio~ts to veid ~rm~tor in h,~nd ~~afd by scud ~,rm[ce, 31~e recaipC whereaf:is hereby a~ele~n„~..ledgnd,h r; ~a~nit,J. huri,,cined, a+td sold 7u Uie sau{ gruniee, snd ~r:u~tec's Heirs and assigns fiirever, die:fiillowipa;.ties~nhed land;situate. lgiu~~ ;~z~i beinyin Jiro~oa~~il Coun[y. !'lo~idn ~n-~~~ie _.
llnit 1215 of TI-1F. W~VEt2LY A7' LA5 OLAS, A CL>NBOMIN[U117, accur<Itng [o [Ne lleclaratiun ofContlominiva~ thereof, recorded in ORicial ReMXds Houk 39066, 1'uge 1, of the Public 12:ecards ofRra~vard GouiiCy~ 1'1~aYidg, aid :env anzet~dmentF theretp, tc~g~ther vrith its unclivi4¢d. sf~a~~~ ita t~~ec[rmmon elemen#s.
SirbJeCt to the Ucclt~r:~tiort of Condnntiniunx, lases for '2Q 12 end subsequcni yrars~ and cnvenantsacondicfoirs, restrictions.. cascinex~ts, reservxliogs and li~niit~tioiis of recur~l, if any none.nf wti~ch erchereby reinipnsed.
L ogetfleT wif lz ill dzc tenement, her~clitaments and a~ipui yen uiu.;s [henc:to b~[nnsin~ nt in anvwisc appertoinina;
Tt~ H'sve ,lnl!' to k~uld, the same in fse simple fcii~ever.
Aietl din gi ~ntnr hereby cnvenanks with said grardee ~h;at ~I~c c•,~~ar~~or is feu•fully seized of said land in tie sia7ple. [hni Nie~,1'a11101' IIiL~:: gct0(I tf~Iil ilITCI ~81V fpI dULITp~'j [}~ IO 5C'II and convey said t.ind di:u die ~i•~ntor hereby R~IIy ~wrrarts the ofle to saidland and will deYcnd .lac SAl1lC agTzast the [aK~F~:I clz~ims of ,jll persdns ~vhomsi ever; :md that said Ic~i d is free oP al!uncmnlN•flnces, excepi t~srs accruin„a. subsequent fo l7ccembcr J 3, 2U] 1.
[n' ~~ViYne!,s l3 heri~aF, grantor h~:s heremiia set gi.sialot's hand and sealzl~e dny end yenr first ebuve ~i•rircen.
_..S~€~i:c:t_ -e:ilc~tl~ein+.t t~}f'le verecl.ia-x>>.~c prt'zc3icc`
'e - r~rr
.~ Ines `H.u..r~'.-
. ~ ,._~. _-6_ ..v, . __~.. .l ~'L~,i Ra ~~~i..~..., ^. ~r_ -, - _,, r
~ ~ 'i
s 4 ` fsr:~l)~ ~', S ~
~~'ii~iess Na~me~.~ ... r .. ~ - ., - ~ 3c r~ri~siF~ L~<uibLt~ rr ---.
S[nt~ OF Fl~yrid~County of Hro.,~a-d
The for~gping instiimient tivas acknixti^Iedged Uefore m~ this -' day uC Uc.~toher, 2012 by hl~ilip ]. linap~~ and Kennethk3xuthtzbe_ ~t~o [:J are ,personally known nr (X] have peoduced _, `-._--- __....,_ --=,-T_—.— driver's lieens~s asidnn[i Pication, --
;. ; _;-
(N~~t;~~v Sea! J ~ ~~ ~= =,i N,~[aq~ 1'ta1,3x. ~ - --ti ~ ;7. ,,_' _..
7-C s~= .~.~: ~-.-,~-. -.:-::•,.:mac. ['[inCCd..N ii~1r:
My Cwnmission Isxpires:
OoubEeTime+~
Case 1:16-cv-20122-FAM Document 28-4 Entered on FLSD Docket 08/29/2016 Page 2 of 3
CFN # 1110@0263, OR BK 99186 PG 839, Page 2 of 2
The V~averly at Las Alas Ct~nd€~min~~.~r ~ ssacia#ion,: In+~.
CERTIFICATE ~F APPRt~UAL FOR SALE O~ UNIT.
Pursuant to the provisions of the Declaration Qf Covenants and Restrictions ofThe 1Naverly at Las Olas Condominium Association, Inc. the sale
BY ~~~' _~ ~ t t,~ r' 2 r s
~ ..~ .,sf` ~I'To: -r . f ~ z ~_~~...
~a :; ~ ~tsiE~~r.~r~ c~escrib~: < ~-:;t- ::_ r_ -~ ~=A.~ate ~ ~ E~~i~ig in ~~~1~~;~=~:~ ~. ~ .. r .:°:~da, to wig
f' E " ~ N. Federal Highway, Unitfort Lauderdale, Florida 33301
is h~ceby approved.
PLEASE SiJB1~IT A C{]PY OF T'HE FULLY EKECU7ED WARRANTY DE~~ AND SETTLEMENTSTAT~M~NT TOa MANaGEM~N7 OFFICE, 910 N. F~D~R;AL MWY, FT. LAUDERDAl.~, Fl,
333~'i.
In wifness whereof, the undersigned representative of i"he Waverly at Las Olas Condominium~~s~ociation, ine., has set hismec h4~nd'and seal on behalf ofi tt~e As~ocia~ian,this _ day of ~' •, ~ -~ - 20 ~`~
;t. ~~"}' u"2 ~' 'I -4r
.~`. ~` 6't <~~; ~ d ~ ~ z _..~~
~., —fit.,.. ~_Signature
r
/~ ~ F~ /~
~~... Printed t~arrr~ 1 Title
one sE~a~.~ o~ ~-H~ ~oa~Q o~ o~~Ec~~o~s
State of l=lorida
County of Broward
Before me the undersigned'authorities, persdnaily appeared on bei~alf of the Board o#Directors, TheWaverly ~i Las Olas Condominium Association, Inc., who executed the foregoing Certificate for theuses and purposes therein expressed.
WiT1~ESS my i~~r~d and official in the County. and Stan i~st'ar~resai~ this r:_ _=__ day of. r«'>r t 20
_....
~ h'v~r n ~k RJc~y J. Lt3r165 iz~• h' C~3Fnf ail ~t ~.`.i[~D.~6 r. ~ ,, r?z ~~ ~P: FaPtn+S:AUG. ~9 ?016 ~ ~ '~ ~ ~ E ~ `~~' ~ ~~~"~'~ q;:i'~ W4YW.~kRON~07~.RYX9Iq
_ s` -s_ ,~ ~e~" ~ a3'.~, _,~ .~.
'~ Notary Futsli~~Notary Seal `
Case 1:16-cv-20122-FAM Document 28-4 Entered on FLSD Docket 08/29/2016 Page 3 of 3
~~
Case 1:16-cv-20122-FAM Document 28-5 Entered on FLSD Docket 08/29/2016 Page 1 of 7
WF'G National Tine insurance Company
ALTA Commitment
Schedule A
Agent. File Number: 61897 Agent ID: No. 10165.01.01.31.FLCommitment Number: 61897 Effective Date: December 1,,2015 atA8:00:00 AM
Property Type: Residential
1; Policy or Policies to be issued: Policy Amount
X ALTA Owner's Policy 2006 (with Florida Modifications) $1.00Proposed Insured:
TBD
ALTA Loan Policy 2006 (with Florida Modifications)Proposed Insured:
Loan No.:
2. Fee Simple interest in the land described in this commitment -is owned, at the Commitment Date, By:
AKSIBAN, LLC, a Delaware Limited Liability Company
3. The land referred to in this Commitment is located in the County of Browazd, State of F14ridaand described as follows:
Unit No. 2303F, of JACKSON TOWER LAS OLAS, a Condominium, according to the Declarationof Condominium recorded in Oft"icial Records Book 31332, Page 838, and all amendments thereto,of the Public Records of Broward County, Florida, together with an undivided interest, in thecommon elements and all appurtenances thereto. appertaining and specified in said CondominiumDeclaration.
Issued Date: December 8, 2015
CAPE CORAL TI'T'LE INSURANCE AGENCY, ANC, as issuing agent forWFGNational Title Insurance Company
By: mice L?ur~r~ieAuthorized Signatory
Case 1:16-cv-20122-FAM Document 28-5 Entered on FLSD Docket 08/29/2016 Page 2 of 7
WFG National Title Insurance Company
Agent File Number; 61897Commitment Numbers 61897Agent ID. No. 10165.01.01.31:FL
ALTA Commitment
Schedule B-I
Part I: The following are requirements to be complied with:
1., Payment to, or for the account of the grantors and/or mortgagors of the full consideration for the estate orinterest to be insured.
2. Payment of all taxes and/or assessments, levied: and assessed against subject property, which are due andpayable.
3. Instruments) creating, the estate or interest.. to be insured must be approved, executed and duly fled forrecord, to wit;
a. Warranty Deed from AKSISAN, LLC, a Delaware Limited Liability Company to TBD.
b. Limited Liability Company Affidavit by AKSiBAN, LLC, a Delaware Limited Liability Company, tobe executed; by aII Managers or Members of company. Insurer herein reserves. the right to add'additional requirements as deemed necessary.
c. Production and Review of the Articles of Organization and Operating Agreement for AKSIBAN, LLC.
d. Notice of Termination of that: certain Notice of Commencement as recorded. on 9/29/2015,. inInstrument No. 113255123, together with'the Contractor's Final Affidavit, or a letter of Indemnityacceptable to the company executed by a duly authorized officer of the Association, setting forth thefacts; sufTicieet to establish. that (} adequate allocated reserves exist for the payment in full of theimprovements identified in the Notice of Commencement recorded in Instrument Na.113255123.
e. Satisfactory proof, acceptable to the company, must be furnished showing the following corporation,company or limited partnership, to be existing and in good standing under the laws. of the State ofincorporation: AKSIBAN, LLC, aDelaware Limited Liability Company.
4. Payment of 2015 Real Estate; Taaes.
5. Written consent from the Association Board of Directors, approving the sale of the captioned property
to the insured, must be obtained.
6. Payment of alt Condo Association, dues, maintenance and assessments.
7. Written evidence, from appropriate governmental authorities, That Special Taxing District, City and
County Special Assessment Liens, MSBU Assessment Liens, Impact Fees, and Water, Sewer. and 'Trash
Removal Charges, if any, have been paid.
S. Obtain a sworn affidavitby the current owner(s), certifying that there. are no liens against the insured
land other than as disclosed by this commitment; that there are no outstanding or pending clauns against:
the affiant that may constitute the basis for a lien against the insured land; that other than as disclosed bythis commitment there are no matters which constitute defects in af£iants' title to the insured land; and thaf
there are no matters existing at this date which would adversely affect the ability of the affiant to convey
and/or mortgage the insured land.
Case 1:16-cv-20122-FAM Document 28-5 Entered on FLSD Docket 08/29/2016 Page 3 of 7
WFG National Title insurance Company
ALTA Commitment.Agent File Number: 61897Commitment Number: 61897Agent ID. No. 10165.01.01.31.FL
9. The names) of the proposed insured, under the policy must be furnished and this commitment issubject to such further exceptions and/or requirements as may then be deemed necessary..
10. When the company is provided the amount of the fuII insurable value of the land and the Company hasagreed to that value, Schedule A will be amended accordingly.
NOTE: No' open mortgages) were found of record for the current owner. Title Agent must confirm with the.owner that the property is free and clear.
NOTES FOR INFORMATION PURPOSES ONLYt(a) 2015 real property taxes show Unpaid.: Amount Paid was $0.00 and gross tax amount is $12,872.66
for Taa Identification No.5042 12 CJ' 0890.(b) The recording information of vesting instruments affecting title of said Lands}.recorded within 24'
months of the effective date of this report is/are as follows; None..
NOTE: Company reserves the right to make further requirements upon review of above requirements.
Case 1:16-cv-20122-FAM Document 28-5 Entered on FLSD Docket 08/29/2016 Page 4 of 7
W~"G National Title Insurance Company
Agent File Number: 61897
Commitment Number: 61897Agent, ID. No. 10165.01.01.31.FL
ALTA Commitment
Schedule B-II
Part Il. Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless thesame are disposed of to the satisfaction of the: Company:
1, Defects, liens, encumbrances, adverse claims or other matters, if`any, created, first appearing in the publicrecords or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquiresfor value of record the estate or interest or mortgage thereon covered by this, Commitrnent,
2. Rights or Claims of parties in possession not shown by the: public records.
3. Easements, liens. or encumbrances, or claims thereof, notshown by the public records.
4. Encroachments, overlaps, boundary line-disputes, and any other matters which would be disclosed by anaccurate survey and' inspection of the premises.
5; Any lien, 4r right to a lien, for services, labor,. or ma.teria heretofore or hereafter furnished, imposed by lawand not shown by the public records.
6, Any claim that any portion of the insured land is sovereign, lands of the State of Florida,. includingsubmerged, filled or artificially exposed lands accreted to such land.
7: Taxes or assessments which are not shown as existing liens by the records of any taxing authority that leviestaxes or assessments on real property or by the public records.
Special Exceptions:
Ta.~ces for the year 201b and subsequent years which are not yet due and payable: PazceUStrap No. 5042 12CJ 0890, 2015 Taxes are UNPAID in the amount of $12,486.48.
9 Any adverse ownership claim by the state of Florida by right of sovereignty to any portion of the landsinsured '.hereunder, including submerged,. filled and artificially exposed lands and lands accreted to suchlands.
10. Any minerals or mineral rights leased, wanted or retained by current. or prior, owners.
11. Restrictions, covenants, conditions, easements and other matters as contained' on the Plat of Lauder Del Mar,recorded in Flat Book 7, Page 30, of the Public Records of Broward County,. Florida..
12. Restrictions, covenants, conditions, easements and other matters as contained on the Plat of Las Olas By theSea, recorded in Plat'$ook 1, Page 16, of the Public Records of Broward County, Florida.
13. Terms, provisions, covenants, conditions; restrictions, assessments, easements, :options,. liens, and othermatters established by the Declararion of Condominium described in Schedule A herein, and recorded in
Official Records Book 31332, Page 83:8, as amended in Official Records Book 31713, Page 1653; OfficialRecords Baok' 41057, Page 1005; Official. Records Book 42217, Page 1374; Corrective Amendment recorded
Case 1:16-cv-20122-FAM Document 28-5 Entered on FLSD Docket 08/29/2016 Page 5 of 7
WFG National ~`itle Insurance Company
ALTA CommitmentAgent File Number: 61897Commitment Number: 61847Agent ID. No. 10165.01.01.31.FL
in Official Records Book 46638, Page 1877 and in Official Records Book 4329Q Page 263, as may be furtheramended.
14 Any loss or damage resulting from a lien or assessment in favor of any Homeowners Association arising,under Section 720.3085, Florida Statutes, and/ar a Condominium Association arising under Section 718. ~ 16,Florida Statutes, occumng after the Date of Policy, notwithstanding any assurances to the contrary in anyALTA 51 PUD Endorsement or Florida Form 9 Endorsement that may be attached to this Policy.
15. Easements in favor of City of Fort Lauderdale recorded in Official Records Book 33917, Page 179'5; OfficialRecords Book 33917, Page 1798 and Official Records Book 33917, Page 1801.
16. Broward County Board of County Commissioners Ordinance No. 2002-61 recorded in Official Records Book34145, Page 1891.
17. City of Fort Lauderdale Resolution No. 19$9-91 recorded in O€ficial'Records Book 3:8544, Page 1749.
18. City of Fort Lauderdale Resolution No. 198991 recorded in Official Records Book 38544, Page 1751..
19, Ordinance as recorded July 31, 1998, in Official Records Baok 16638, Page 767, of the Public Records ofBroward County, Florida.
20. Easement recorded April 22, 1994, in Official Records Baok 22040,. Page 441„ of the Public Records ofBroward County, Florida.
NOTES FOR INFORMATION PURPOSES ONLY:(a) Items 2 and S of Schedule B-II of this Commitment will be deleted from any policies issued pursuantthereto, upon the Company's' review and acceptance of an Affidavit of Possession and No Liens, and theCompany's review of the potential exposure of construction liens. The Company reserves the right to excludefrom coverage matters disclosed by the Affidavit or discovered in the Company's review of the potentialexposure far construction liens and to make such additional requirements as it may deem necessary.(b) Items 3 and 4 of Schedule B-Il of this Commitment will be deleted from any policies :issued pursuantthereto, upon being provided a survey meeting the company's requirements. If' such' survey reveals anyencroachments, overlaps, boundary line issues or other adverse matters, they will appear as exceptions in anypolicies to be issued based upon this commitment.(c) All of the recording information contained herein refers to the Public Records of Broward County,Florida, unless otherwise indicated. Any reference herein to a Book and Page is a reference to the OfficialRecord Books of said county, unless indicated to the contrary.(d) As to all restrictions set forth above, the following is added: "but ouutting any covenant or restrictionbased on race, color,,religion, sex,. handicap, familial status or national origin, unless and only to the extentthat said covenants(s)s (a) is/are exempt under Chapter 42, Section 3607 of the United State Code; or (b)relates to a handicap, but does not discriminate against handicapped persons.(e) A search commencing with the effective date'hereof will be performed prior to closing this transaction.If this search reveals an objection ox title defect, an endorsement will be issued requiring that said objectionor defect be cleared before closing. Item 1 of Schedule B-II (GAP Exception) will be deleted pursuant to Sec.627.7841, F.S
.,
(fl If applicable, Standard ALTA 8.1-06, 4.1-06, 5.1-06, Florida Form 9-06 Endorsements, or any otherFlorida. approved endorsement that may apply will be attached to and made a part of the final: loan policy.(g) In accordance with Florda'Statutes Section 627.4131, please be advised that the insured hereunder may
Case 1:16-cv-20122-FAM Document 28-5 Entered on FLSD Docket 08/29/2016 Page 6 of 7
WAG National Title Insurance Company
ALTA CommitmentAgent File Numbers 61897Commitment Number:'61897Agent ID. Na 10i65.01.01.31.FL
present inquiries, obtain information about coverage, or receive assistance in resolving complaints,. bycontacting WFG National Title Insurance Company, 340 Oswego Pointe Drive, Lake Oswego, OR 97834Telephone number (800-334-8885)
Case 1:16-cv-20122-FAM Document 28-5 Entered on FLSD Docket 08/29/2016 Page 7 of 7
Case 1:16-cv-20122-FAM Document 28-6 Entered on FLSD Docket 08/29/2016 Page 1 of 7
WFG National Title Insurance Company
ALTA Commitment
Schedule A
Agent-File Number: 61'898 Agent ID. No. 10165.01.01.31.FLCommitment Number: 61898 Effective Date: December 1, 2015 at'08:00:00 AM'
Properh' TyPe: Residential
1,: Policy or Policies to be issued: Policy Amount
X ALTA Owner's Policy 2006 (with Florida Modifications) $L00Proposed Insured:
TBD
ALTA Loan Policy 2006 (with Florida Modifications)Proposed''Insured:
Losn No.:
2. Fee Si~s-iple interest in the land described is this commitment is owned, at the Commitment Date, By:
AKSIBAN, LLC, a Delaware Limited Liability Company
3, The land referred to in this Cotnmihnent is located in the County of Broward, State of Florida "'and described as follows:
Unit; 1215, of THE WAVERLY AT LAS OLAS, A CONDOMINIUM, according. to theDeclaration of Condominium thereof, as recorded in Official Records Book 39066, Page 1, and allamendments thereto, of the Public Records of Broward County, Florida. Together with anundivided interest in the common elements of said condominium.
Issued Date: December 4, 2015
CAPE CORAI~ TTTLE INSURANCE AGENCY, INC. as issuing. agent for
WFG National Title Insurance Company
By: ~aice LieAuthorized Signatory
Case 1:16-cv-20122-FAM Document 28-6 Entered on FLSD Docket 08/29/2016 Page 2 of 7
WFG National Title Insurance Company
Agent File Number: 61898.Commitment Number: 61898'Agent YD. Na,10165.01.0~.31.FL
ALTA Commitment
'Schedule B-I
Part I. The following are requirements to be complied' with:
1. Payment to, or for the account of the grantors and/or mortgagors of the full consideration for the estate orinterest to be insured.:
2. Payment of all taxes and/or assessments, levied aad' assessed against subject property, which aze due andpayable.
3. Instruments) creating the estate or interest to be insured must be approved, executed and duly filed forrecord, to wit:
a. Warranty Deed from AKSIBAN, LLC, a Delaware Limited Liability Company to TBD.
b. Limited Liability Company': Affidavit by AKSIBAN, LLC, a Delaware Limited Liability Company,, tobe executed by all Managers or Members of company. Insurer herein reserves the right to addadditional requirements as deemed'necessary.
c. Production and Review of the Articles nf,Organization and Operating Agreementfor AKSIBAN, LLC.
d. Satisfactory proof, acceptable to the company, must be furnished showing the following corporation,company or limited partnership,., to be eacisting and in good standing,. under the laws of the Mate of
incorporation: AKSIBAN, LLC, a Delaware Limited Liability Company..
4. Payment of 2015 Real Estate Taxes.
5. Written consent from the Association Board of Directors, approving the :sale of the captioned property
to the insured, must be obtained.
6. Payment of all Condo Association,dues, maintenance and assessments.
7. Written evidence, from appropriate governmental authorities, that Special Taaung District, City andCounty Special Assessment Liens, MSBU Assessment Liens, Impact Fees, and Water, Sewer' and Trash:
Removal Charges, if any, have been paid'.
8. Obtain a sworn affidavit by the current owners) certifying that there are no liens against the insured
land other than as disclosed by this commitment; that there are no outstanding or pending claims against
the affiant that may constitute the basis for a lieu against the insured land; that other than as disclosed by
this commitment there are no matters which constitute defects in affiants' title to the insured land; and that
there are no matters existing at this date which would adversely affect the ability of the affiant to convey
and/or mortgage the insured land.
9. The names) of the proposed insured under the policy must be furnished and this commitment is
subject to such further exceptions and/or requirements as may then be deemed necessary.
10. When the company is provided the amount of the full insurable value oI the land and the Company has
agreed to tfiat value, Schedule A will be amended accordingly.
Case 1:16-cv-20122-FAM Document 28-6 Entered on FLSD Docket 08/29/2016 Page 3 of 7
WFG National Title Insurance Company
ALTA CommitmentAgent File Numbers 61898Commitment Number: 61898.Agent ID. No. 10165.01.01.31.FL
NOTE: No open mortgages) were found of record for the current owner. Title Agent must confirm with theowner that the property is free and clear.
NOTES FOR INFQRMATION PURPQSES ONLYs(a) 2015 real property tames show Unpaid. Amount Paid' was $0.00 and gross tam amount is $5,554.39
for'Tax Identification No. SQ42' 02 AR 2480.(b) The recording information: of vesting instruments affecting title of said Lands) recorded' within 24
:months of the effective date of this report is/are as follows: None.
NOTE: Company reserves the right to make further requirements upon review of above requirements.
Case 1:16-cv-20122-FAM Document 28-6 Entered on FLSD Docket 08/29/2016 Page 4 of 7
WFG National "title Insurance Company
ALTA Commitment`AgenYFile Number: 61898
Commitment Number: 61898
Agent ID. No. 10165A1.01.31.FL
Schedule B-II'
Part II. Schedule B of the policy or policies to be issued will contain exceptions, to the fallowing matters unless the
same are disposed of to the satisfaction of the Company:
1< Defects, liens, encumbrances, adverse claims or other marters, if any, created, first appearing in-:the. public
records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquires
for value of record the estate,or interest or mortgage thereon covered by this Commitment,
2. Rights or claims of patties in possession not shownby the publcsecords:
Easements, liens or encumbrances, or claims thereof, not shown by the public records.
4. Encroachments, overlaps, boundary line disputes, and any other matters which would be disclosed by an
accurate survey and inspection of the premises.
5: Any lien, ar right to a; lien, for services, labor, or material heretofore ar hereafter furnished, imposed by law
and not shown by the public records.
6. Any claim that any portion of the insured land is sovereign lands of the State of Florida., including
submerged, filled or artificially exposed lands accreted to such land.
7. Taxes or assessments which are not shown as e~sting liens by the records of any taxing authority that levies
taxes or assessments on real property or by the public records.
Special Exceptions`.
8. Taaces for the year 2016 and subsequent years which are not yet due and payable, ?ParceUStrap No. 5042 02
AR 2480, 2015 Taxes are UNPAID in the amount of $5,387.76..:
9: Any. adverse ownership claim by the state of Ftorida by right of sovereignty to any portion of the lands
insured hereunder, including submerged, filled and artificially exposed lands and lands: accreted to such.
lands.
10. Any minerals or mineral rights leased, granted or retained by current or prior owners.
1 L Terms,: covenants, conditions, easements, restrictions, reservations and other provisions, including provisions
which provide for a private charge or assessment,: and also provide for an option to purchase, a right of first
refusal, or the: prior approval of a future purchaser or occupant, according to that certain Declaration of
Condominium recorded in Official Records Book 39066, Page 1, as may be subsequently amended.
12. Any loss or damage resulting from a lien or assessment in favor of any Homeowners Association arising
under Section 72Q:3085, Florida Statutes, and/ar a Condominium Association arising under Section 718.116,
Florida Statutes, occurring after the: Date of Policy, notwithstanding any assurances. to the contrary in any
ALTA 51 PUD Endorsement or Florida Form 9 Endorsement that maybe attached to this Policy.
Case 1:16-cv-20122-FAM Document 28-6 Entered on FLSD Docket 08/29/2016 Page 5 of 7
W~'G National Title Insurance Company
ALTA Commitment`Agent File Number: 61898
Commitment Number: 61898Agent ID. No. 10165.01.01.31.FL
13. Restrictions, covenants, conditions, easements and tither matters as ,contained on the Plat of Davis Additionto Fort Lauderdale, recorded in Plat Book 3, Page 28.
14. Restrictions, covenants, conditions contained in Vaarranty Deed as set forth in that instrument recorded' inOfficial Records Book 34242., Page $49, as may be subsequently amended..
15. Easements) as set forth in instruments) recorded in Official Records Book 37008, Page 624.
16. Easements) as set forth in i~vstrument(s) recorded in Official RecordsBook 38081, Page 825.
17. Easements to the State of Florida Department of Transportation recorded in Official Records Book 3242,Pages 863 and 870.
18. Easements) as set forth in instruments) recorded in'Offic al Records Book35320, Page 76,
19. Parking Agreement recorded in Official Records Book 21252, Page 32.
20. Ordinance recorded in Official Records Book 24425, Page; 72.
21. Agreement recorded in Official Records Book 37092, Page 241.
22. Agreementrecorded,n Official'Records Book 37092, Page 71.
23_ Ordinance recorded in Official Records Book 31934, Page 1395.
24. Right of Way recorded in Official Records Book 2419, Page 713.
NOTES FOR INFORMATION PURPOSES ONLY:(a) Items 2 and 5 of Schedule B-II of this Commitment will be deleted from any policies issued pursuant
thereto, upon the Company's review and acceptance of an Affidavit of Possession and No Liens, and theCompany's review of the potential exposure of construction liens.. The Company reserves the right to excludefrom coverage matters disclosed by the Affidavit or discovered in the Company's review. of the potential
exposure for construction liens and to make such additional requirements as it may deem necessary.
(b) .Items 3 and 4 of Schedule B-II of this Commitment will be deleted from any policies issued pursuant
thereto, upon being provided a survey meeting, the company's requirements. If such survey reveals anyencroachments, overlaps, boundary line issues or' other adverse matters, they will appear as exceptions in anypolicies to be issued based upon this commitment.(c) All of the recording 'information contained herein refers to the public Records of'Broward County,
Florida., unless otherwise indicated. Any reference herein to a Book and Yage is a reference to the OfficialRecord Books of said county, unless indicated to the contrary,(d) As to all'restrictons set forth above,: the following is added: "but onnitting any covenant or res#riction
based on race, color, religion, sex, handicap, familial status or national origin, unless and only to :the extenf
that said covenants(s): (a) is/are exempt under Chapter 42 Section 3607 of the United State Code; or (b)relates to a handicap, but does not. discrirnnate against handicapped persons.(e) A search commencing with the effective date hereof will be performed prior to closing this transaction.
If this .search reveals an objection or ritle defect, an endorsement will be issued requiring that said objection
or defect be cleazed before closing. Itcm 1 of8chedule B-II (GAP Exception) will be deleted pursuant to Sec.
Case 1:16-cv-20122-FAM Document 28-6 Entered on FLSD Docket 08/29/2016 Page 6 of 7
WFG National Title Insurance Company
ALTA CommitmentAgent File Number: 61898Commitment Number: 61898Agent ID. Na. 10165.01.01.31.FL
627.7841,`F.S.(~ If applicable, Standaxd ALTA„8.1-06,,4.1-06 5.1-06, Florida Form 9-06 Endorsements, or any otherFlorida approved endorsement that may apply will be attached to and made a part of the final loan policy.(g) In accordance. with Florida Statutes Section 627.4131, please be advised that the insured hereunder maypresent inquiries, obtain information about coverage, or receive assistance in resolving complaints, bycontacting WFG National Title Insurance. Company, 340 Oswego Pointe Drive, Lake '.Oswego, OR 97834Telephone number (800-334-8885)
Case 1:16-cv-20122-FAM Document 28-6 Entered on FLSD Docket 08/29/2016 Page 7 of 7
Case 1:16-cv-20122-FAM Document 28-7 Entered on FLSD Docket 08/29/2016 Page 1 of 2
H
Pege 4 0[ 6Stetamant Period
WLD PRICE GLOBAL, IIVC 10/DiJ12 through l0/91~12Hl EPA EA BOEnclwures 0Account Nmnbac -95b9
w,th~~~as ~,a Deb, - c~t~neaOther Debits
ate _ a
Pasted .(~maunt {~) Description E~ferenze
10/04 13,350.00 Wire aBooi~ Qut Date~lOQ! 'I~me:1444 Et 535''h~ Rol 96dBnf.Bradley J Haskins ID 595
10/04 25.00 Wire 'I~ranefgr. Fee10/04 25.OQ Wire 'I~anefer Fee 40010/05 1U.00 Online Business Suite birect Pmt Services 211OJ09 '.17,885.01 Wire ;Fx Out Dete:11010 'T'ime:1217 Et 2?
'1~ 2'~ Fz:GBP 10726.00 1.6676Bn~ ~e pI.ettin C1i ID, 7 En#' Bk;~ou~~I7]~42 Pr,mt e&50 /F~cref/
10/09 b1,00Q.00► Transfer Wld Price Global, IN:Hrad Haskins 989Gon$rmation#~fi 9fi
10/09 35.W Wire 'l~anefer F~ ~2?folio ~o.00 ,~~ +mss e - Nezt Day - io~os/~oia ea9
Confirmation~42210/11 33J W' W' ut Datt~L011 e:D814 Et ~06
'h~ 06 fie e Ref~li82Brt~A Title Services ID 93 Bnf BkCnlbanK Iz~~~ ii2 w~e~y
10/11 25.90 Wire anaf'er Fec9806Card:Account ~ 4L96'7446 OOb7 7280:ld/Ol 26.24 The Fresh Mark 09/29 64 Purchase 26410101 6.98 Winn-Dine ~ 09/29 98 Purchase 398io/oa 28.ss The Fresh Mark 10/os z pur~l~e 210/05 22.71 The Flesh Mark 10/05 141 Purc~eee 14110/09 29.02 The Flesh Mark 10/06 4880 Purchase 48010/10 39.71 The Fresh Mark 10/10 2 Purchase 38210/15 321.92 40~OQd40600743 1W14 #9753 Withdrwl 5310/15 6.00,. 64a0W0()000793 10/14 ~~753 Withdrwl 5310/15 3.22 OOQ4000009~?43 10/14 #9'753 Withdrwl -~ 53
International 'I1~ansaction FeeSubtotal 483.18
Daily Ledger Balances
Date Balance ( Date a ance Date B ante
1U/Q1 1,41,117.38 10/12..... l.tf36.782.57 10/7.~ 1,lOb,S52.4310/62 1,434,337.8 10/15. 1,039,192.43 10/25 X,lig292.4310/43 1,438,75$,42 10/lfi i,O6b,292.93 10/26 1,120,792.43lU/04 1,40,859,02 1011? 1,068,432.43 10/29 1,123,812.43]6145 1,~4Q4,668.31 10/18 1,U75,41Z.43 10/30 1,136, 612.4310!03 1,39'x,057.28 10119 1,Q80,892.43 10/31 1,195,472.43zorlo 1,356,3:7.57 io/22 1,083,072.AaYO/11 1,034,102;57 10[23 1,162,252.43
Case 1:16-cv-20122-FAM Document 28-7 Entered on FLSD Docket 08/29/2016 Page 2 of 2
Case 1:16-cv-20122-FAM Document 28-8 Entered on FLSD Docket 08/29/2016 Page 1 of 3
Page 1
1 OF 1 RECORDS)
100 N FEDERAL HWY APT 1215oR2 LaU~sxnrs.e, Fi; 33301-ii90
Tzanaactien.9iatory
Sale Date Huyer Seller Sale Price Loan Amouat Lender Aecoxding SourceDate
10/29/2012 LI.G, AKS- BAIIBLIT2, $330, OOO.QO 1C/29/2012 HIBAN KENt7ETH
KN? PP,PHILIP J
05/10/2012 LAS, OLAS WELDObt, $17,SOO.OD 6E(29/2012 ELAS, OLAS CASSANDEP.
WELDON,ERC
O5f10/2012 BAUBLIT2„ I.AS, OLAS $172,500.00 66/25/2012 9KENNETH I,A.S, OLASKNAPP~PAI LIP J
09f 16i20Q5 WELDON, IAS OLkS, $62,300.00 $439,~15.~Q PEOFLES C6/02/2005 BCA.SANDRP WAVERLY CHOICE HC~WELGOIJ, I,AS OLAS, LCAtd IYCERIC WAVERLY
AdAitional Information.
WARNING: 9 deed transfers yin-the lest 127 months
[vARN NG: Current reei.dent noes rnt astch owner as or 1..11 days ago
Proporty Intozmation
Address: 100 N FECERAI. AYi:' AP Stories'T 1215EOAT LA:IiER-CPS.E, FL 333~i-1190
APN: `0-92-Q2-AR-2980 ~ Number of Sed=cor5: ..
Ait Parcel Namber: 9aths:
Legal GeScripkion: ftiRY::~tLY AT f25 OLAS Style:CONDu UNIT 1215
Subdivision Name: +iAVEALY @ LAS Oi.A; Year 3uilt: 205CONDC
Land;; Jse CONDOMTNI':R] Square Pootzge:
LancValce r: Lot Ssze:
Improve;n~pt value: Cond tion:.
Total: Value.:; Fireplace:.
Assessed '~aS~e: $145,730.00 Pool
Market Land'Value: $19 ,.570.Q0 Aix Con3itionin9'3
Market im,p rovement $131,160.00. Heating:'
Value:
Total M=rkef Value: 5195,730.00. Fuel:
Tax Aero~.;r.t: $2,296..99. Sewer:
Tax Ye2c: 2010 Water:
Elec~r:c-:
Frame:
Roo`:
Your DPPA Permissible Use is: Debt Recovery/FraudYour GLSA Permissible Use is: I have no permissible use
This service is £or idertity verification pu.poses only, as required by the USA Patrict &ct of 2CC1, and is not intende3 to be a
Case 1:16-cv-20122-FAM Document 28-8 Entered on FLSD Docket 08/29/2016 Page 2 of 3
Page 2
"Consucrer repai`_" a9 defined in the Fait Credit`Rzporti~g Act., 15 USr §;F6R1 et seq. ("FCitA"~. ?be scores and ether in£oroat on
provided with this service gay not he used as a factor in estab~ishing a. consumer's eligihility for credit, insurance,
emplcyment or any other purposes idertified under the FCRA. Fuitherniora, the info*matioa provided may not be used to take
"adverse action^, as defined in Che FCPA, with respe r_t to any conswne r. Fait hes LexisHexisg nor this service may be identified
n any declination coummnication with a consumer as Having provided inE~rneuon upon which such declination was based in whole
or Yn part.
CapyrightOO 2015 LexisNexis, a division of Reed Elsevier Inc. All righfs reserved.
Case 1:16-cv-20122-FAM Document 28-8 Entered on FLSD Docket 08/29/2016 Page 3 of 3
Case 1:16-cv-20122-FAM Document 28-9 Entered on FLSD Docket 08/29/2016 Page 1 of 2
H
WLD PRICE (}LOBAI.~ INC
nepos~ta .na chea is - conei,.nea
Page 4sof 8Sti~nt`Period05/01/19 through 06191/19FD EPA EA BOEnelaure. 0Account N~unbar _3559
ateposted ,Amount S$) Deecrintian Reference
06/31 98,480.00 G~cs 191 Dee:Diabursrunt 1D971 230Inds: itce Glalsal Irrc Co ~D X15 cdPmt Inf'o:~723 Memo=f~
Withdrawals and DebitsC6ecke
Number Amount (S) Pseeted Reference Number Amount ($1 Posted Reference
5152 693.60 OS/01 95 5163' 1,785.55 05/f3& 25153 1,860.00 Q~fA6' 989 5166* 1,806.77 05/14 5b159• 76.96 05103 022 61fi8* 1,691.00: 05/20 7~~'J5161• 62.00 05j03 23
• 6ay in wqu~utial cL.cic numDan.
Otter Debits
ate ~Foaled Amout►t (~? Description 13eference
06/02. 22,000.00 Wire e:Book Out Date:~502 '~me~522 Et 376`f~a~7f> R,9la d Ref 924Brig ra ~e~~y~ askins II). 9b
05/02 42,500.00 `I4~anefer Wld Price Global, re HaskinsConSrmation~
05/02 25.00 Wire 'l~ansfer ee05/03 10.00 External transfer fee -Next Day - Ob/02/2013
ConSru►ation:~ 75205/O7 10.00 Online Buffinese-9"uite Direct Pmt 5ervicee06/22 40,000.U(1 Wi Out Date:~►522 me:0515 Et "'
~' — 'I~n 7 Service Ref:~.734Bnf: e erica II}:~d209 I3nf Bk:BiscayaeBank78~Pmt~~T}e~:~7$88
b6/22 26.00.. Wire 'I~ranefer Fee05/29 600 0€10' Wire e:Wire Out Date~li29 't5me:1~04'Et
7~n:~Q1.51 Service Ref:~713Bn~'i`i f ,America ID:~L209 Bnf Bk:BiacayneBank ? n~i l~e~~~322
05/29 7,500.00 'I4~ana£er lobal, IN:Law Offices of LisaConBrmstio~ 194
05/29 25.00 Wire 'I~anefer ee05/30 16,000.00 P"aypal Dea:Traaafee~ ID:4'PSj274C.heu6L
Indn:Wld Price Global Co ID:Paypalud22 Web06/30 10.00 Paternal traru~- Next Day - 05/29/2013
Cokion: 2Card Account # 9136 7~4{S 0067 7ZBO:05/09 203.00 - Pnc Bank 05/09 ' Withdrwl05!09 2.00. Pnc Bank 06/09 06 Wit.~►drwl05/10 27.82 Winn-Dude ~ 05/10 380 Purchase05/18 7.83 Wine-Dixie ~ 05/11 945 Purchase05/1S 5.47 Winn-Di~ae ~ bb/12 96 Purcbese05/20 23.06 Winn-Dude ~ 05/19 282 Purchase
332
6280
7
761
~~
~~79
Case 1:16-cv-20122-FAM Document 28-9 Entered on FLSD Docket 08/29/2016 Page 2 of 2