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`UNITED STATES DISTRICT COURT
`FOR THE SOUTHERN DISTRICT OF FLORIDA
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`Case No. 1:22-cv-23760
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`Plaintiff,
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`v.
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`FEDERAL TRADE COMMISSION,
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`
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`DK AUTOMATION LLC, a limited liability
`company,
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`AMZ AUTOMATION LLC, a limited liability
`company,
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`THATLIFESTYLENINJA LLC, a limited liability
`company,
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`PROFICIENT SUPPLY LLC, a limited liability
`company,
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`DIGITAL NINJAZ LLC, a limited liability
`company,
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`ZONBASE, INC., a Delaware corporation,
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`KEVIN DAVID HULSE, a/k/a Kevin David,
`individually and as an officer of DK
`AUTOMATION LLC, AMZ AUTOMATION
`LLC, THATLIFESTYLENINJA LLC, DIGITAL
`NINJAZ LLC, and ZONBASE, INC., and
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`DAVID SHAWN ARNETT, individually and as
`an officer of DK AUTOMATION LLC, AMZ
`AUTOMATION LLC, and PROFICIENT
`SUPPLY LLC,
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`
`
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`Defendants.
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`STIPULATED ORDER FOR PERMANENT INJUNCTION,
`MONETARY JUDGMENT, AND OTHER RELIEF
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`1
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 2 of 25
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`Plaintiff, the Federal Trade Commission (“Commission”), filed its Complaint for
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`Permanent Injunction, Monetary Relief, Civil Penalties, and Other Relief (“Complaint”), for a
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`permanent injunction, monetary relief, civil penalties, and other relief in this matter, pursuant to
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`Sections 5(m)(1)(A)-(B), 13(b), and 19 of the Federal Trade Commission Act (“FTC Act”), 15
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`U.S.C. §§ 45(m)(1)(A)-(B), 53(b), and 57b. The Commission and Defendants stipulate to the
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`entry of this Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief
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`(“Order”) to resolve all matters in dispute in this action between them.
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`THEREFORE, IT IS ORDERED as follows:
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`1.
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`2.
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`FINDINGS
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`This Court has jurisdiction over this matter.
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`The Complaint charges that Defendants participated in deceptive and
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`unfair acts or practices in violation of Section 5 of the FTC Act, 15
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`U.S.C. § 45, the FTC’s Trade Regulation Rule entitled “Disclosure
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`Requirements and Prohibitions Concerning Business Opportunities,”
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`16 C.F.R. Part 437, as amended, the Consumer Review Fairness Act of
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`2016 (“CRFA”), 15 U.S.C. § 45b, and prior Commission
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`determinations concerning unfair and deceptive acts or practices in
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`commerce in connection with the marketing, distribution, promotion,
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`and sale of goods and services, including business opportunities and
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`training programs.
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`3.
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`Defendants neither admit nor deny any of the allegations in the
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`Complaint, except as specifically stated in this Order. Only for
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`purposes of this action, Defendants admit the facts necessary to
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`2
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 3 of 25
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`establish jurisdiction.
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`4.
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`Defendants waive and release any claims that they may have against
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`the Commission that relate to this action, and they agree to bear their
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`own costs and attorney fees.
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`5.
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`Defendants and the Commission waive all rights to appeal or
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`otherwise challenge or contest the validity of this Order.
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`DEFINITIONS
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`For the purpose of this Order, the following definitions apply:
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`A.
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`“Business Coaching Program” means any product or service, including any
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`program or plan, that is represented, expressly or by implication, to train or teach a
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`consumer how to establish, operate, or improve a business.
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`B.
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`“Business Opportunity” means a commercial arrangement in which:
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`1.
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`2.
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`3.
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`A Seller solicits a prospective Purchaser to enter into a new business; and
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`The prospective Purchaser makes a required payment; and
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`The Seller, expressly or by implication, orally or in writing, represents that the
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`Seller or one or more Designated Persons will:
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`(i)
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`Provide locations for the use or operation of equipment, displays, vending
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`machines, or similar devices, owned, leased, controlled, or paid for by the
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`Purchaser; or
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`(ii)
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`Provide outlets, accounts, or customers, including, but not limited to,
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`Internet outlets, accounts, or customers, for the Purchaser’s goods or services; or
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`(iii) Buy back any or all of the goods or services that the Purchaser makes,
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`produces, fabricates, grows, breeds, modifies, or provides, including but not
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`3
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 4 of 25
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`limited to providing payment for such services as, for example, stuffing envelopes
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`from the Purchaser’s home.
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`C.
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`“Covered Communication” means a written, oral, or Pictorial review, performance
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`assessment, or other similar analysis of goods or services, including conduct related
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`to the goods or services.
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`D.
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`“Defendants” means all of the Individual Defendants and the Corporate Defendants,
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`individually, collectively, or in any combination.
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`1.
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`“Corporate Defendants” means DK Automation, LLC, Amz
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`Automation, LLC, THATLifeStyleNinja, LLC, Digital Ninjaz LLC, Zonbase, Inc., and
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`Proficient Supply LLC and their successors and assigns.
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`2.
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`“Individual Defendants” means Kevin David Hulse, a/k/a Kevin David,
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`and David Shawn Arnett.
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`E.
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`“Designated Person” means any person, other than the Seller, whose goods or
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`services the Seller suggests, recommends, or requires that the Purchaser use in
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`establishing or operating a new business.
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`F.
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`“Earnings Claim(s)” means any oral, written, or visual representation to a
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`prospective Purchaser that conveys, expressly or by implication, a specific level or
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`range of actual or potential sales, or gross or net income or profits. Earnings claims
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`include, but are not limited to: (a) any chart, table, or mathematical calculation that
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`demonstrates possible results based upon a combination of variables; and (b) any
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`statements from which a prospective Purchaser can reasonably infer that he or she
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`will earn a minimum level of income (e.g., “earn enough money to buy a Porsche,”
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`“earn a six-figure income,” or “earn your investment back within one year”).
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`4
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 5 of 25
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`G.
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`“EHR” means Ecom Honors Reinsurance Co. Ltd., a non-party that is one-hundred
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`percent (100%) owned by Individual Defendant David Shawn Arnett. EHR is a
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`signatory to this Order solely for the purpose of stipulating to Sections V.C, VI.A,
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`VI.D, and VI.E below.
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`H.
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`“General Media” means all print, electronic, internet, social networking, radio and
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`other media outlets.
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`I.
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`J.
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`“Pictorial” includes pictures, photographs, video, illustrations, and symbols.
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`“Prohibited Contract Provision” means a contract provision used in the course of
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`selling or leasing goods or services that:
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`1.
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`prohibits or restricts the ability of a person who is a party to the contract to
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`engage in a Covered Communication;
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`2.
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`imposes a penalty or fee against a person who is a party to the contract for
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`engaging in a Covered Communication; or
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`3.
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`transfers, or requires a person who is a party to the contract to transfer, to
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`any other person any intellectual property rights in a Covered
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`Communication, with the exception of a non-exclusive license to lawfully
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`use a covered communication about a Defendants’ goods, services, or
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`conduct.
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`K.
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`“Providing locations, outlets, accounts, or customers” means furnishing the
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`prospective Purchaser with existing or potential locations, outlets, accounts, or
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`customers; requiring, recommending, or suggesting one or more locators or lead
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`generating companies; providing a list of locator or lead generating companies;
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`collecting a fee on behalf of one or more locators or lead generating companies;
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`5
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 6 of 25
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`offering to furnish a list of locations; or otherwise assisting the prospective Purchaser
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`in obtaining his or her own locations, outlets, accounts, or customers.
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`L.
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`“Purchaser” means a person who buys a Business Opportunity or Business
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`Coaching Program.
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`M.
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`“Seller” means a person who offers for sale or sells a Business Opportunity or
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`Business Coaching Program.
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`ORDER
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`I.
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`PROHIBITION CONCERNING EARNINGS CLAIMS
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`IT IS ORDERED that Defendants, Defendants’ officers, agents, employees, and
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`attorneys, and all other persons in active concert or participation with any of them, who receive
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`actual notice of this Order, whether acting directly or indirectly, in connection with promoting or
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`offering for sale any good or service are permanently restrained and enjoined from making any
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`Earnings Claims or assisting others in making any Earnings Claims, expressly or by implication,
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`unless:
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`A. The Earnings Claims are non-misleading;
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`B. At the time the Earnings Claims are made, Defendants:
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`1. have a reasonable basis for the claim;
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`2. have in their possession written materials that substantiate the claimed
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`earnings and that the claimed earnings are typical for consumers
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`similarly situated to those to whom the claim is made; and
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`3. make the written substantiation available upon request to the
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`consumer, potential purchaser, and the FTC; and
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`C. Any earnings of the Defendants that form the basis for the Earnings Claims were
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`6
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 7 of 25
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`achieved in compliance with the law.
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`II.
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`PROHIBITION AGAINST MISREPRESENTATIONS
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`IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees,
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`and attorneys, and all other persons in active concert or participation with any of them, who
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`receive actual notice of this Order, whether acting directly or indirectly, in connection with the
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`advertising, marketing, promoting, offering for sale, or selling of any good or service, are
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`permanently restrained and enjoined from misrepresenting or assisting others in misrepresenting,
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`expressly or by implication:
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`A. The description of the good or service;
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`B. That any past performance referenced in Defendants’ advertising, marketing,
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`promoting, offering for sale, or selling of any good or service is indicative of future
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`results;
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`C. That any testimonials Defendants use in the advertising, marketing, promoting,
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`offering for sale, or selling of any good or service reflect the experience that
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`consumers are likely to have using Defendants’ products or services;
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`D. That purchasers or users of Defendants’ products or services will or are likely to
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`achieve substantial profits or earnings;
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`E. The risk, liquidity, earnings potential, or profitability of goods or services that are the
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`subject of a sales offer;
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`F. Any material aspect of the nature or terms of a refund, cancellation, or exchange
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`policy for the good or service; or
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`G. Any other fact material to consumers concerning any good or service, such as: the
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`total costs; any material restrictions; limitations; conditions; or any material aspect of
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`its performance, efficacy, nature, or central characteristics.
`7
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 8 of 25
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`III.
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`PROHIBITIONS RELATING TO THE SALE AND MARKETING OF BUSINESS
`COACHING PROGRAMS AND BUSINESS OPPORTUNITIES
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`IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees,
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`and attorneys, and all other persons in active concert or participation with any of them, who
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`receive actual notice of this Order, whether acting directly or indirectly, in connection with the
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`sale of any Business Coaching Program or Business Opportunity, are permanently restrained and
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`enjoined from:
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`Failing to disclose, or disclose adequately in writing, material information
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`pertaining to any Business Coaching Program or Business Opportunity at least
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`seven (7) days before the consumer signs a contract or makes a payment in
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`connection with that Business Coaching Program or Business Opportunity
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`including:
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`1.
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`Basic identifying information of the Seller, including the Seller’s name,
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`business address, and telephone number;
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`2.
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`Any civil or criminal actions against the Seller or affiliates of the Seller
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`for misrepresentation, fraud, or unfair or deceptive acts or practices within
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`the 10 years preceding the date that the Business Coaching Program or
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`Business Opportunity is offered;
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`3.
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`4.
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`Material terms and conditions of any cancellation or refund policy;
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`A list of Purchasers and contact information of individuals who purchased
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`the Business Coaching Program or Business Opportunity within the last 3
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`years; or
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`5.
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`Any claim of actual or potential earnings that Purchasers of the Business
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`Coaching Program or Business Opportunity may experience.
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`8
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 9 of 25
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` Making any Earnings Claim in the General Media unless Defendants state in
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`immediate conjunction with the claim the beginning and ending dates when the
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`represented earnings were achieved, and the number and percentage of all persons
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`who purchased Defendants’ Business Coaching Program or Business Opportunity
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`prior to that ending date who achieved at least the stated level of earnings.
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`IV.
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`PROHIBITION AGAINST CONSUMER COMPLAINT SUPPRESSION
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`IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees,
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`and attorneys, and all other persons in active concert or participation with any of them, who
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`receive actual notice of this Order, whether acting directly or indirectly, are hereby permanently
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`restrained and enjoined from:
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`1. Prohibiting or restricting the ability of Purchasers of Defendants’ goods or
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`services, Business Opportunities, or Business Coaching Programs from providing
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`reviews of those goods and services;
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`2. Suppressing the availability of truthful or non-defamatory negative comments or
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`reviews of any Defendant, or the Defendant’s goods, services, agents, or
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`employees through any means, including threats, intimidation, non-disparagement
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`clauses, conditioning refunds, and suppression of online content. If otherwise
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`compliant with this Order, a request, made after resolution of a customer’s
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`complaint or issue, that the customer post additional truthful information to
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`update a review or comment would not comprise suppression of that prior review
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`or comment;
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`3. Offering to any prospective customer a contract, or offering to any
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`customer a renewal contract, that includes a Prohibited Contract Provision;
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`9
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 10 of 25
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`4. Requiring that a customer accept a Prohibited Contract Provision as
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`a condition of a Defendant’s fulfillment of its obligations under a customer
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`contract; or
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`5. Representing, including through any notice, warning, threat to
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`enforce, or attempt to enforce, to any purchaser of any good or service —
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`regardless of when purchased — that any contract:
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`a.
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`Prohibits purchasers from speaking about or publishing truthful or
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`non- defamatory negative comments or reviews about any Defendant, or
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`the Defendant’s goods, services, agents, or employees; or
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`b.
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`Imposes any precondition, penalty, or fee on purchasers speaking
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`about or publishing any comments or reviews about any Defendant, or the
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`Defendant’s goods, services, agents, or employees.
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`Nothing in this Section shall require Defendants to publish or host the content provided by any
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`person, affect any other legal duty of a party to a contract, or affect any cause of action arising
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`from the breach of such duty.
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`V.
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`JUDGMENT FOR MONETARY RELIEF
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`IT IS FURTHER ORDERED that:
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`
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`Judgment in the amount of fifty-two million, nine-hundred twenty-nine thousand,
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`six-hundred twenty-one dollars and seventy-four cents ($52,929,621.74) is entered in favor of
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`the Commission against Defendants, jointly and severally, as monetary relief.
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`Defendants are ordered to pay to the Commission two million, six hundred
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`thousand ($2,600,000), which, as Defendants stipulate, their undersigned counsel holds in
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`escrow for no purpose other than payment to the Commission. Such payment must be made
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`10
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 11 of 25
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`within 7 days of entry of this Order by electronic fund transfer in accordance with instructions
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`previously provided by a representative of the Commission.
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`Individual Defendants and EHR are ordered to assign to the Commission sixty
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`percent (60%) of right, title, and interest in any claim or right they may have to receive payments
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`pursuant to Proprietary Trading Relationship Agreements signed by (1) Individual Defendant
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`David Shawn Arnett on December 7, 2021 (as referenced in the email identified in Section
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`V.E.12 below), (2) EHR on January 20, 2022, and (3) EHR on March 2, 2022 as well as the
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`terms of trading accounts opened pursuant to these agreements in the names of Individual
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`Defendant David Shawn Arnett and EHR. Individual Defendants and EHR have signed an
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`“Assignment of Contractual Rights to Payments” (“Assignment”) and it shall take effect upon
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`the date of entry of this Order. Individual Defendants and EHR shall cooperate fully in such
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`Assignment and shall promptly execute all other documents and take all other actions necessary
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`or appropriate to affect the assignment of any claim or right they may have to receive such
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`payments. Pursuant to this Assignment:
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`a. Individual Defendants and EHR must transfer sixty percent (60%) of each
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`payment received pursuant to this subsection by the Individual Defendants
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`and EHR to the Commission within three (3) business days of the time
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`that it is made;
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`b. Individual Defendants and EHR must notify the Commission every fifteen
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`(15) days in writing on the status of the payments received and provide
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`documentation showing any payments received and payments made to the
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`Commission; and
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`c. Individual Defendants and EHR are responsible for their own attorneys’
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`11
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 12 of 25
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`fees associated with the Assignment and payments under this subsection.
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`Upon the completion of the payments as set forth in Subsections B-C above, the
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`remainder of the judgment is suspended, subject to the Subsections below.
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`The Commission’s agreement to the suspension of part of the judgment is
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`expressly premised upon the truthfulness, accuracy, and completeness of Defendants’ sworn
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`financial statements and related documents (collectively, “financial representations”) submitted
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`to the Commission, namely:
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`1.
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`the Financial Statement of Individual Defendant Kevin David Hulse
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`signed on August 19, 2022, including the attachments;
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`2.
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`the Financial Statement of Individual Defendant David Shawn Arnett
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`signed on August 5, 2022, including the attachments;
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`3.
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`the Financial Statement of Corporate Defendants Amz Automation LLC
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`and DK Automation LLC signed by Kevin David Hulse, co-owner, on August 19, 2022,
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`including the attachments;
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`4.
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`the Financial Statement of Corporate Defendant THATLifestyleNinja
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`LLC, signed by Kevin David Hulse, CEO, on August 10, 2022, including the
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`attachments;
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`5.
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`The Financial Statement of Corporate Defendant Digital Ninjaz LLC
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`signed by Kevin David Hulse, CEO, on August 19, 2022, including the attachments;
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`6.
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`The Financial Statement of Corporate Defendant Proficient Supply LLC
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`signed by David Arnett, Chief Operations Officer, on July 29, 2022, including the
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`attachments and an addendum dated August 15, 2022;
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`7.
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`The Financial Statement of subsidiary Zonbase, Inc. signed by Kevin
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`12
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 13 of 25
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`David Hulse, CEO, on August 25, 2022, including the attachments;
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`8.
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`The additional information and documentation submitted by email from
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`Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia
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`Siddiqui, and Thomas Harris dated August 6, 2022, attaching Financial Statements and
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`additional financial records;
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`9.
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`The additional information and documentation submitted by email from
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`Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia
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`Siddiqui, and Thomas Harris dated August 12, 2022, attaching supplements to some of the
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`Financial Statements listed above and additional financial records;
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`10.
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` The additional documentation submitted by email from Defendants’
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`counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia Siddiqui, and
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`Thomas Harris dated August 16, 2022, attaching additional financial records;
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`11.
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`The additional documentation submitted by email from Defendants’
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`counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia Siddiqui, and
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`Thomas Harris dated August 18, 2022, attaching additional financial records;
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`12.
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`The additional information and documentation submitted by email from
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`Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia
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`Siddiqui, and Thomas Harris dated August 19, 2022, attaching additional financial
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`records;
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`13.
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`The additional information and documentation submitted by email from
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`Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia
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`Siddiqui, and Thomas Harris dated August 22, 2022, attaching supplements to some of
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`the Financial Statements listed above and additional financial records;
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`
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`13
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 14 of 25
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`14.
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`The additional information and documentation submitted by email from
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`Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia
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`Siddiqui, and Thomas Harris dated August 26, 2022, attaching supplements to some of
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`the Financial Statements listed above and additional financial records;
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`15.
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`The additional information and documentation submitted by email from
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`Defendants’ counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia
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`Siddiqui, and Thomas Harris dated August 30, 2022, attaching supplements to some of
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`the Financial Statements listed above and additional financial records;
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`16.
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`The additional documentation submitted by email from Defendants’
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`counsel Greg Christiansen to Commission counsel Colleen Robbins, Sophia Siddiqui, and
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`Thomas Harris dated September 21, 2022, attaching additional financial records;
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`17.
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`The additional documentation submitted by email from Defendants’
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`counsel Greg Christiansen to Commission counsel Colleen Robbins and Sophia Siddiqui
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`dated September 27, 2022, attaching additional financial records;
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`18.
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`The additional documentation submitted by email from Defendants’
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`counsel Greg Christiansen to Commission counsel Colleen Robbins and Sophia Siddiqui
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`dated October 3, 2022, attaching additional financial records;
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`19.
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`The additional documentation submitted by email from Defendants’
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`counsel Greg Christiansen to Commission counsel Colleen Robbins dated October 4,
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`2022, attaching additional financial records; and
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`20.
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`The additional documentation submitted by email from Defendants’
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`counsel Greg Christiansen to Commission counsel Colleen Robbins and Sophia Siddiqui
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`dated October 5, 2022, attaching updated Financial Disclosure Statements for Corporate
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`14
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 15 of 25
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`Defendant Proficient Supply LLC signed by David Shawn Arnett, COO, on September
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`29, 2022 and for Individual Defendant David Shawn Arnett signed on September 29,
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`2022.
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`The suspension of the judgment will be lifted as to any Defendant if, upon motion
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`by the Commission, the Court finds that Defendant failed to disclose any material asset,
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`materially misstated the value of any asset, or made any other material misstatement or omission
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`in the financial representations identified above.
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`If the suspension of the judgment is lifted, the judgment becomes immediately
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`due as to that Defendant in the amount specified in Subsection A above which the parties
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`stipulate only for purposes of this Section represents the consumer injury alleged in the
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`Complaint, less any payment previously made pursuant to this Section, plus interest computed
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`from the date of entry of this Order.
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`VI. ADDITIONAL MONETARY PROVISIONS
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`IT IS FURTHER ORDERED that:
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`
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`Defendants and EHR relinquish dominion and all legal and equitable right, title,
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`and interest in all assets transferred pursuant to this Order and may not seek the return of any
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`assets.
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`
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`The facts alleged in the Complaint will be taken as true, without further proof, in
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`any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to
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`enforce its rights to any payment or monetary judgment pursuant to this Order, such as a
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`nondischargeability complaint in any bankruptcy case.
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`The facts alleged in the Complaint establish all elements necessary to sustain an
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`action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C.
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 16 of 25
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`§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes.
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`Defendants and EHR acknowledge that their Taxpayer Identification Numbers
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`(Social Security Numbers or Employer Identification Numbers), which Defendants must submit
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`to the Commission, may be used for collecting and reporting on any delinquent amount arising
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`out of this Order, in accordance with 31 U.S.C. §7701.
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`All money received by the Commission pursuant to this Order may be deposited
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`into a fund administered by the Commission or its designee to be used for consumer relief, such
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`as redress and any attendant expenses for the administration of any redress fund. If a
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`representative of the Commission decides that direct redress to consumers is wholly or partially
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`impracticable or money remains after such redress is completed, the Commission may apply any
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`remaining money for such related relief (including consumer information remedies) as it
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`determines to be reasonably related to Defendants’ practices alleged in the Complaint. Any
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`money not used for relief is to be deposited to the U.S. Treasury. Defendants and EHR have no
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`right to challenge any actions the Commission or its representatives may take pursuant to this
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`Subsection.
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`VII. CUSTOMER INFORMATION
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`IT IS FURTHER ORDERED that Defendants, their officers, agents, employees, and
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`attorneys, and all other persons in active concert or participation with any of them, who receive
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`actual notice of this Order, are permanently restrained and enjoined from directly or indirectly:
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`A.
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`failing to provide sufficient customer information to enable the Commission to
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`efficiently administer consumer redress. If a representative of the Commission requests in
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`writing any information related to redress, Defendants must provide it, in the form prescribed by
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`the Commission, within 14 days; and
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 17 of 25
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`B.
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`disclosing, using, or benefitting from customer information, including the name,
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`address, telephone number, email address, social security number, other identifying information,
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`or any data that enables access to a customer’s account (including a credit card, bank account, or
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`other financial account), that any Defendant obtained prior to entry of this Order in connection
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`with any activity involving or related to the sale of any Business Coaching Program or Business
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`Opportunity.
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`Provided, however, that customer information need not be disposed of, and may be
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`disclosed, to the extent requested by a government agency or required by law, regulation, or
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`court order.
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`VIII. COOPERATION
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`IT IS FURTHER ORDERED that Defendants must fully cooperate with representatives
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`of the Commission in this case and in any investigation related to or associated with the
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`transactions or the occurrences that are the subject of the Complaint. Defendants must provide
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`truthful and complete information, evidence, and testimony. Individual Defendants must appear,
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`and such Corporate Defendants must cause their officers, employees, representatives, or agents
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`to appear for interviews, discovery, hearings, trials, and any other proceedings that a
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`Commission representative may reasonably request upon 5 days written notice, or other
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`reasonable notice, at such places and times as a Commission representative may designate,
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`without the service of a subpoena.
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`IX. NOTICE TO CUSTOMERS
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`IT IS FURTHER ORDERED that, within 7 days of entry of this Order, Defendants
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`shall email notice in the form shown in Attachment A to all persons who purchased Defendants’
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`goods or services of any type at any time between May 10, 2019 and the date of the entry of this
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`Order with the subject line “What the FTC Settlement Means for Kevin David and DK
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 18 of 25
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`Automation’s Customers.” Within 15 days of entry of this Order, Defendants shall mail the form
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`shown in Attachment A via first-class mail, postage prepaid with address forwarding requested,
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`to the last known mailing address of any intended email recipient whose emailed message
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`delivery fails. No information other than that contained in Attachment A shall be included in or
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`added to the notice required by this Section, nor shall any other materials be transmitted with the
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`notice.
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`X.
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`ORDER ACKNOWLEDGMENTS
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`IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of
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`this Order:
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`Each Defendant, within 7 days of entry of this Order, must submit to the
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`Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.
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`For 10 years after entry of this Order, each Individual Defendant for any business
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`that such Defendant, individually or collectively with any other Defendants, is the majority
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`owner or controls directly or indirectly, and each Corporate Defendant, must deliver a copy of
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`this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all
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`employees having managerial responsibilities for conduct related to the subject matter of the
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`Order and all agents and representatives who participate in conduct related to the subject matter
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`of the Order; and (3) any business entity resulting from any change in structure as set forth in the
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`Section titled Compliance Reporting. Delivery must occur within 7 days of entry of this Order
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`for current personnel. For all others, delivery must occur before they assume their
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`responsibilities.
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`From each individual or entity to which a Defendant delivered a copy of this
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`Order, that Defendant must obtain, within 30 days, a signed and dated acknowledgment of
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`Case 1:22-cv-23760-PCH Document 4-1 Entered on FLSD Docket 11/16/2022 Page 19 of 25
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`receipt of this Order.
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`XI. COMPLIANCE REPORTING
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`IT IS FURTHER ORDERED that Defendants make timely submissions to the
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`Commission:
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`One year after entry of this Order, each Defendant must submit a compliance
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`report, sworn under penalty of perjury:
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`1.
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`Each Defendant must: (a) identify the primary physical, postal, and email
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`address and telephone number, as designated points of contact, which representatives of
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`the Commission may use to communicate with Defendant; (b) identify all of that
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`Defendant’s businesses by all of their names, telephone numbers, and physical, postal,
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`email, and Internet addresses; (c) describe the activities of each business, including the
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`goods and services offered, the means of advertising, marketing, and sales, and the
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`involvement of any other Defendant (which Individual Defendants must describe if they
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`know or should know due to their own involvement); (d) describe in detail whether and
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`how that Defendant is in compliance with each Section of this Order; and (e) provide a
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`copy of each Order Acknowledgment obtained pursuant to this Order, unless previously
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`submitted to the Commission.
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`For 10 years after entry of this Order, each Defendant must submit a compliance
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`notice, sworn under penalty of perjury, within 14 days of any change in the following:
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`1.
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`Each