throbber
Case 3:19-cv-00196-KC Document 272-3 Filed 09/21/20 Page 1 of 19
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`UNITED STATES DISTRICT COURT
`WESTERN DISTRICT OF TEXAS
`
`EP-l9-CV—196-KC
`
`[PROPOSED]
`STIPULATED ORDER FOR
`
`PERMANENT INJUNCTION AS TO
`DEFENDANTS SAM MADI
`
`AND EDUCARE CENTRE
`SERVICES, INC.
`
`
`
`
`
`
`Federal Trade Commission, and
`
`State of Ohio ex rel. Attorney General
`Dave Yost,
`
`Plaintiffs,
`
`v.
`
`Educare Centre Services, Inc., a New
`Jersey corporation, also dba Credit Card
`Services, Card Services, Credit Card
`Financial Services, Care Net, Tripletel
`Inc., Revit Educ Srvc, L.L. Vision, Care
`Value Services, and Card Value Services,
`
`Tripletel, Inc., a Delaware
`corporation,
`
`Prolink Vision, S.R.L., a
`Dominican Republic limited
`liability company,
`
`9896988 Canada Inc., a
`Canadian company,
`
`Globex Telecom, Inc., a Nevada
`corporation,
`
`9506276 Canada, Inc., dba
`Globex Telecom, Inc., a
`Canadian company,
`
`Sam Madi, individually and as
`an owner, officer, member, and/or
`manager of Educare Centre
`Services, Inc.,
`
`Mohammad Souheil a/k/a
`Mohammed Souheil and Mike
`
`Souheil, individually and as an
`owner, officer, member, and/or
`manager of Educare Centre
`Services, Inc., 9896988 Canada,
`Inc., Globex Telecom2 Inc.,
`
`

`

`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 2 of 19
`
`9506276 Canada, Inc., and
`Prolink Vision, S.R.L.,
`
`Wissam Abedel Jalil a/k/a Sam
`
`Jalil, individually and as an
`owner, officer, member, and/or
`manager of Tripletel, Inc., and
`Prolink Vision, S.R.L.,
`
`Charles Kharouf, individually
`and as an owner, officer, member,
`and/or manager of Educare
`Centre Services, Inc., and
`Prolink Vision, S.R.L.,
`
`Defendants.
`
`
`
`Plaintiffs, the Federal Trade Commission (“FTC” or “Commission”) and the State
`
`of Ohio, (collectively, “Plaintiffs”) filed its First Amended Complaint for Permanent
`
`Injunction and Other Equitable Relief (ECF No. 81) pursuant to Section 13(b) of the FTC
`
`Act, 15 U.S.C. § 53(b), the Telemarketing and Consumer Fraud and Abuse Prevention
`
`Act (“Telemarketing Act”), 15 U.S.C. §§ 6101-6108, the Ohio Consumer Sales Practices
`
`Act (“CSPA”), O.R.C. 1345.07, and the Ohio Telephone Solicitation Sales Act
`
`(“TSSA”), O.R.C. 4719.01 et seq. Plaintiffs and Defendants Sam Madi and Educare
`
`Centre Services, Inc. (“Madi Defendants”) stipulate to the entry of this Stipulated Order
`
`for Permanent Injunction and Monetary Judgment (“Order”) to resolve all matters in
`
`dispute in this action between them.
`
`THEREFORE, IT IS ORDERED as follows:
`
`This Court has jurisdiction over this matter.
`
`FINDINGS
`
`The First Amended Complaint charges that the Madi Defendants participated in
`
`1.
`
`2.
`
`acts or practices that violated Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), the
`
`
`
`

`

`Case 3:19-cv-00196-KC Document 272-3 Filed 09/21/20 Page 3 of 19
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`Telemarketing Sales Rule (“TSR”), 16 CPR. Part 310, the Ohio CSPA, O.R.C. 1345.01
`
`et seq., and the Ohio TSSA, O.R.C. 4719.01 et seq.
`
`3.
`
`The Madi Defendants neither admit nor deny any of the allegations in the First
`
`Amended Complaint, except as specifically stated in this Order. Only for purposes of this
`
`action, the Madi Defendants admit the facts necessary to establish jurisdiction.
`
`4.
`
`The Madi Defendants waive any claim that they may have under the Equal Access
`
`to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the
`
`date of this Order, and agree to bear their own costs and attorney fees.
`
`5.
`
`The Madi Defendants and Plaintiffs waive all rights to appeal or otherwise
`
`challenge or contest the validity of this Order.
`
`DEFINITIONS
`
`For the purpose of this Order, the following definitions shall apply:
`
`A.
`
`“Corporate Defendant” means Educare Centre Services, Inc. and each of its
`
`subsidiaries, affiliates, successors, and assigns.
`
`B.
`
`“Debt Relief Product or Service” means any product, service, plan or program
`
`represented, expressly or by implication, to renegotiate, settle, or in any way alter the
`
`terms of payment or other terms of the debt or obligation between a consumer and one or
`
`more creditors or debt collectors, including a reduction in the balance, interest rate, or
`
`fees owed by a consumer to a creditor or debt collector.
`
`C.
`
`“Defendants” means Prolink Vision, S.R.L., 9896988 Canada, Inc., Educare
`
`Centre Services, Inc., Tripletel, Inc., Mohammad Souheil, Sam Madi, Charles Kharouf,
`
`Wissam Jalil, Globex Telecom, Inc., and 9506276 Canada, Inc., individually,
`
`collectively, or in any combination.
`
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`

`

`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 4 of 19
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`D.
`
`“Document” is synonymous in meaning and equal in scope to the usage of
`
`“document” and “electronically stored information” in Federal Rule of Civil Procedure
`
`34(a), Fed. R. Civ. P. 34(a), and includes writings, drawings, graphs, charts, photographs,
`
`sound and video recordings, images, Internet sites, web pages, websites, electronic
`
`correspondence, including e—mail and instant messages, contracts, accounting data,
`
`advertisements, FTP Logs, Server Access Logs, books, written or printed records,
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`handwritten notes, telephone logs, telephone scripts, receipt books, ledgers, personal and
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`business canceled checks and check registers, bank statements, appointment books,
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`computer records, customer or sales databases and any other electronically stored
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`information, including Documents located on remote servers or cloud computing
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`systems, and other data or data compilations from which information can be obtained
`
`directly or, if necessary, after translation into a reasonably usable form. A draft or non-
`
`identical copy is a separate Document within the meaning of the term
`
`E.
`
`“Person” means any natural person or any entity, corporation, partnership, or
`
`association of persons.
`
`F.
`
`“Receiver” means the receiver appointed in Section VIII of this Order and any
`
`deputy receivers that shall be named by the Receiver.
`
`G.
`
`“Seller” means any Person who, in connection with a Telemarketing transaction,
`
`provides, offers to provide, or arranges for others to provide goods or services to a
`
`customer in exchange for consideration.
`
`H.
`
`“Telemarketer” means any Person who, in connection with Telemarketing,
`
`initiates or receives telephone calls to or from a customer or donor.
`
`\DOO\IO\
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`
`
`

`

`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 5 of 19
`
`I.
`
`“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.
`
`ORDER
`
`1.
`
`DEBT RELIEF PRODUCT OR SERVICE BAN
`
`IT IS THEREFORE ORDERED that the Madi Defendants are permanently
`
`restrained and enjoined from advertising, marketing, promoting, or offering for sale, or
`
`assisting in the advertising, marketing, promoting, or offering for sale of any Debt Relief
`
`Product or Service, including any credit card interest rate reduction service.
`
`11.
`
`TELEMARKETING BAN
`
`IT IS FURTHER ORDERED that the Madi Defendants are permanently
`
`restrained and enjoined from participating in Telemarketing to the United States, whether
`
`directly or through an intermediary.
`
`III.
`
`PROHIBITED MISREPRESENTATIONS AND OMISSIONS
`
`IT IS THEREFORE ORDERED that the Madi Defendants and their officers,
`
`agents, and employees, and all other Persons in active concert or participation with them,
`
`who receive actual notice of this Order by personal service or otherwise, whether acting
`
`directly or indirectly, in connection with the advertising, marketing, promoting, or
`
`offering for sale of any goods or services, are restrained and enjoined from
`
`misrepresenting or assisting others in misrepresenting, expressly or by implication, any
`
`material fact, including, but not limited to:
`
`A.
`
`Misrepresenting, or assisting others in misrepresenting, expressly or by
`
`implication, any of the following:
`
`U‘I-bbJN
`\OOO\]O\
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`

`

`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 6 of 19
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`1.
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`Any material aspect of the nature or terms of the Seller’s refiJnd,
`
`cancellation, exchange, or repurchase policies; or
`
`2.
`
`Any other fact material to consumers concerning any good or service, such
`
`as:
`
`the total costs; any material restrictions, limitations or conditions; or any
`
`material aspect of its performance, efficacy, nature, or central characteristics;
`
`B.
`
`Representing, or assisting others in representing, expressly or by implication, the
`
`benefits, performance, or efficacy of any good or service, unless the representation is
`
`non-misleading, and, at the time such representation is made, the Madi Defendants
`
`possess and rely upon competent and reliable evidence to substantiate that the
`
`representation is true.
`
`IV.
`
`PROHIBITIONS ON VIOLATING THE OHIO CSPA AND TSSA
`
`IT IS FURTHER ORDERED that the Madi Defendants, and their officers,
`
`agents, and employees, and all other Persons in active concert or participation with them,
`
`who receive actual notice of this Order by personal service or otherwise, whether acting
`
`directly or indirectly, are permanently restrained and enjoined from engaging in unfair or
`
`deceptive acts or practices in violation of the Ohio CSPA, RC. 1345.01 et seq. and the
`
`Ohio TSSA, O.R.C. 4719.01 et seq.
`
`
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`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 7 of 19
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`V.
`
`EQUITABLE MONETARY JUDGMENT AND SUSPENSION
`
`IT IS FURTHER ORDERED that:
`
`A.
`
`Judgment in the amount of Seven Million Five Hundred Thousand Dollars
`
`($7,500,000.00) is entered in favor of Plaintiffs against the Madi Defendants, jointly and
`
`severally, as equitable monetary relief. Full payment of the foregoing judgment amount
`
`shall be suspended upon satisfaction of the obligations set forth in Subsection B of this
`
`Section, and subject to the conditions set forth in Subsections GB of this Section.
`
`B.
`
`Effective upon entry of this Order, the Madi Defendants shall surrender to
`
`Plaintiffs or their representatives, all control, title, dominion, and interest in all assets
`
`held in the TD Bank accounts in the name of Educare Centre Services, Inc. ending in
`
`X1223 and X1249. The remainder of the judgment is suspended, subject to Subsections
`
`C, D, and E, below.
`
`C.
`
`Plaintiffs’ agreement to the suspension of the judgment as to the Madi Defendants
`
`is expressly premised upon the truthfulness, accuracy, and completeness of the following
`
`sworn financial statements and related documents (collectively, “financial
`
`representations”) submitted to the Commission by the Madi Defendants, including:
`
`1.
`
`The Financial Statement of Sam Madi as last updated and signed by Sam
`
`Madi on August 14, 2019, including the additional documentation, sent by Madi’s
`
`former counsel Andrew N. Cove to the Commission Via email on August 14 and
`
`October 15, 2019, and by Madi to the Commission Via email on June 22, 2020;
`
`and
`
`2.
`
`The Financial Statement of Educare Centre Services, Inc. signed by Sam
`
`Madi on August 12, 2019, sent by Madi’s former counsel Andrew N. Cove to the
`
`Commission via email on August 12, 2019.
`
`AWN
`
`\]O\
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`00
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`

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`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 8 of 19
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`AWN
`
`\IO\
`
`
`
`D.
`
`The suspension of the judgment will be lifted as to any Madi Defendant if, upon
`
`motion by the Plaintiffs, the Court finds that a Madi Defendant failed to disclose any
`
`material asset, materially misstated the value of any asset, or made any other material
`
`misstatement or omission in the financial representations identified above.
`
`E.
`
`If the suspension of the judgment is lifted, the judgment becomes immediately
`
`due as to that Madi Defendant in the amount of Seven Million Five Hundred Thousand
`
`Dollars ($7,500,000.00) specified in Subsection A, above, which the parties stipulate
`
`represents the consumer injury alleged in the First Amended Complaint, less any
`
`payment previously made pursuant to this Section, plus interest computed from the date
`
`of entry of this Order.
`
`VI.
`
`ADDITIONAL MONETARY PROVISIONS
`
`IT IS FURTHER ORDERED that:
`
`A.
`
`The Madi Defendants relinquish dominion and all legal and equitable right, title,
`
`and interest in all assets transferred pursuant to this Order and may not seek the return of
`
`any assets.
`
`B.
`
`The facts alleged in the First Amended Complaint will be taken as true, without
`
`further proof, in any subsequent civil litigation by or on behalf of the Plaintiffs, including
`
`in a proceeding to enforce their rights to any payment or monetary judgment pursuant to
`
`this Order, such as a nondischargeability complaint in any bankruptcy case.
`
`C.
`
`The facts alleged in the First Amended Complaint establish all elements necessary
`
`to sustain an action by the Plaintiffs 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.
`
`D.
`
`The Madi Defendants acknowledge that their Taxpayer Identification Numbers
`
`

`

`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 9 of 19
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`(Social Security Numbers or Employer Identification Numbers) or equivalant, which the
`
`Madi Defendants previously submitted to the Commission, may be used for collecting
`
`\OOO\]O\Lll-l>
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`and reporting on any delinquent amount arising out of this Order, in accordance with 31
`
`U.S.C. §7701.
`
`B.
`
`All money paid to the Plaintiffs pursuant to this Order may be deposited into a
`
`fund administered by the Commission or its designee on behalf of the Commission and
`
`the State of Ohio to be used for equitable relief, including consumer redress and any
`
`attendant expenses for the administration of any redress fund. If a representative of the
`
`Plaintiffs decides that direct redress to consumers is wholly or partially impracticable or
`
`money remains after redress is completed, the Plaintiffs may apply any remaining money
`
`for such other equitable relief (including consumer information remedies) as it
`
`determines to be reasonably related to the Madi Defendants’ practices alleged in the First
`
`Amended Complaint. Any money not used for such equitable relief shall be divided
`
`between the Commission and the State of Ohio to be deposited to the US. Treasury as
`
`disgorgement and to the Ohio Attorney General’s Telemarketing Fraud Enforcement
`
`Fund. The Madi Defendants have no right to challenge any actions the Plaintiffs or their
`
`representatives may take pursuant to this Subsection.
`
`VII. CUSTOMER INFORMATION
`
`IT IS FURTHER ORDERED that the Madi Defendants and their officers,
`
`agents, and employees, and all other Persons in active concert or participation with them,
`
`who receive actual notice of this Order by personal service or otherwise, are permanently
`
`restrained and enjoined from directly or indirectly:
`
`A.
`
`Failing to provide sufficient customer information to enable the Commission to
`
`

`

`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 10 of 19
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`efficiently administer consumer redress. If Plaintiffs’ representative requests in writing
`
`any information related to redress, Madi Defendant must provide it, in the form
`
`prescribed by Plaintiffs’ representative, within fourteen (14) days; and
`
`B.
`
`Disclosing, using, or benefitting 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 any Madi Defendant obtained prior to
`
`entry of this Order in connection with any activity that pertains to marketing credit card
`
`interest rate reduction services; and
`
`C.
`
`Failing to destroy such customer information in all forms in their possession,
`
`custody, or control within thirty (30) days after receipt of written direction to do so from
`
`a representative of the Plaintiffs.
`
`Provided, however, that customer information need not be disposed of, and may
`
`be disclosed, to the extent requested by a government agency or required by law,
`
`regulation, or court order.
`
`VIII. APPOINTMENT OF RECEIVER
`
`IT IS FURTHER ORDERED that Robb Evans & Associates LLC is appointed
`
`as receiver of Educare Centre Services, Inc. with full powers of an equity receiver, for the
`
`purpose of taking the necessary steps to wind down Educare Centre Services, Inc. In
`
`carrying out these duties, the Receiver shall be the agent of this court, shall be
`
`accountable directly to this court, and is authorized and directed to:
`
`A.
`
`Perform all acts necessary to protect, conserve, preserve, and prevent waste or
`
`dissipation of Educare Centre Services, Inc. assets, if any, until their sale;
`
`\OOO\IO\
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`10
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`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 11 of 19
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`B.
`
`C.
`
`Sell Educare Centre Services, Inc.’s assets without further order of the court;
`
`Enter into agreements in connection with the reasonable and necessary
`
`performance of the Receiver’s duty to sell Educare Centre Services, Inc.’s assets,
`
`including, but not limited to, the retention of assistants, agents, or other professionals to
`
`assist in the sale of these Assets;
`
`D.
`
`Distribute to the FTC, without further order of the court, the funds received from
`
`the sale of Educare Centre Services, Inc.’s assets;
`
`E.
`
`Take any and all steps the Receiver concludes are appropriate to wind down
`
`Educare Centre Services, Inc.; and
`
`F.
`
`Store and secure Educare Centre Services, Inc.’s records, until either entry of a
`
`final order against the last remaining Defendant in this proceeding or receipt of written
`
`direction to do so from a representative of the FTC.
`
`IX.
`
`COOPERATION
`
`IT IS FURTHER ORDERED that the Madi Defendants must fully cooperate
`
`with representatives of the Plaintiffs in this case and in any investigation related to or
`
`associated with the transactions or the occurrences that are the subject of the First
`
`Amended Complaint. The Madi Defendants must provide truthful and complete
`
`information, evidence, and testimony. The Madi Defendants must appear in person,
`
`telephonically, or via videoconference for interviews, discovery, hearings, trials, and any
`
`other proceedings that Plaintiffs’ representative may reasonably request upon ten (10)
`
`days written notice, or other reasonable notice, at such places and times as Plaintiffs’
`
`representative may designate, without the service of a subpoena.
`
`X.
`
`ORDER ACKNOWLEDGMENTS
`
`
`
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`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 12 of 19
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`IT IS FURTHER ORDERED that the Madi Defendants obtain acknowledgments
`
`of receipt of this Order:
`
`A.
`
`Each Madi Defendant, within seven (7) days of entry of this Order, must submit
`
`to the Plaintiffs an acknowledgment of receipt of this Order sworn under penalty of
`
`perjury.
`
`B.
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`For five (5) years after entry of this Order, Defendant Sam Madi for any business
`
`that he, individually or collectively with any other Defendant, is the majority owner or
`
`controls directly or indirectly, and each Corporate Defendant, must deliver a copy of this
`
`Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all
`
`employees having managerial responsibilities for conduct related to the subject matter of
`
`the Order and all agents and representatives who participate in conduct related to the
`
`subject matter of the Order; and (3) any business entity resulting from any change in
`
`structure as set forth in the Section titled Compliance Reporting. Delivery must occur
`
`within seven (7) days of entry of this Order for current personnel. For all others, delivery
`
`must occur before they assume their responsibilities.
`
`C.
`
`From each individual or entity to which a Madi Defendant delivered a copy of this
`
`Order, that Defendant must obtain, within thirty (30) days, a signed and dated
`
`acknowledgment of receipt of this Order.
`
`XI.
`
`COMPLIANCE REPORTING
`
`IT IS FURTHER ORDERED that the Madi Defendants make timely submissions
`
`to the Plaintiffs:
`
`A.
`
`One year after entry of this Order, each Madi Defendant must submit a
`
`compliance report, sworn under penalty of perjury:
`
`
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`l2
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`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 13 of 19
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`1.
`
`Each Madi Defendant must: (a) identify the primary physical, postal, and
`
`email address and telephone number, as designated points of contact, which
`
`representatives of the Plaintiffs may use to communicate with Madi Defendant;
`
`(b) identify all of that Madi Defendant’s businesses by all of their names,
`
`telephone numbers, and physical, postal, email, and Internet addresses; (c)
`
`describe the activities of each business, including the goods and services offered,
`
`the means of advertising, marketing, and sales, and the involvement of any other
`
`Defendant (which Defendant Sam Madi must describe if he knows or should
`
`know due to his own involvement); (d) describe in detail whether and how that
`
`Madi Defendant is in compliance with each Section of this Order; and (e) provide
`
`a copy of each Order Acknowledgment obtained pursuant to this Order, unless
`
`previously submitted to the Plaintiffs.
`
`2.
`
`Additionally, Defendant Sam Madi must: (a) identify all telephone
`
`numbers and all physical, postal, email and Internet addresses, including all
`
`residences; (b) identify all business activities, including any business for which he
`
`performs services whether as an employee or otherwise and any entity in which
`
`he has any ownership interest; and (c) describe in detail his involvement in each
`
`such business, including title, role, responsibilities, participation, authority,
`
`control, and any ownership.
`
`B.
`
`For ten (10) years after entry of this Order, each Madi Defendant must submit a
`
`compliance notice, sworn under penalty of perjury, within fourteen (14) days of any
`
`change in the following:
`
`
`
`13
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`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 14 of 19
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`1.
`
`Each Madi Defendant must report any change in: (a) any designated point
`
`of contact; or (b) the structure of any Corporate Defendant or any entity that
`
`Defendant Madi has any ownership interest in or controls directly or indirectly
`
`that may affect compliance obligations arising under this Order, including:
`
`creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or
`
`affiliate that engages in any acts or practices subject to this Order.
`
`2.
`
`Additionally, Defendant Sam Madi must report any change in: (a) name,
`
`including aliases or fictitious name, or residence address; or (b) title or role in any
`
`business activity, including any business for which he performs services whether
`
`as an employee or otherwise and any entity in which he has any ownership
`
`interest, and identify the name, physical address, and any Internet address of the
`
`business or entity.
`
`C.
`
`Each Madi Defendant must submit to the Plaintiffs notice of the filing of any
`
`bankruptcy petition, insolvency proceeding, or similar proceeding by or against such
`
`Defendant within fourteen (14) days of its filing.
`
`D.
`
`Any submission to the Plaintiffs required by this Order to be sworn under penalty
`
`of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by
`
`concluding: “I declare under penalty of perjury under the laws of the United States of
`
`America that the foregoing is true and correct. Executed on:
`
`” and supplying the
`
`date, signatory’s full name, title (if applicable), and signature.
`
`E.
`
`Unless otherwise directed by a Plaintiffs’ representative in writing, all
`
`submissions to the Commission pursuant to this Order must be emailed to
`
`DEbrief@ftc.gov or sent by overnight courier (not the US. Postal Service) to: Associate
`
`#wN
`
`\OOO\]O\
`
`
`
`14
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`

`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 15 of 19
`
`Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission,
`
`600 Pennsylvania Avenue NW, Washington, DC 20580; the subject line must begin:
`
`FTC et al., v. Educare Centre Services, Inc. X190039.
`
`F.
`
`Unless otherwise directed by a Plaintiffs’ representative in writing, all
`
`submissions to the Ohio Attorney General pursuant to this Order must be mailed to: Ohio
`
`Attorney General’s Office, Consumer Protection Section, Attn: Compliance Unit, 30 East
`
`Broad Street, 14th Floor, Columbus, Ohio 43215; the subject line must begin: FTC/Ohio
`
`v. Educare Centre Services, Inc.
`
`XII.
`
`RECORDKEEPING
`
`IT IS FURTHER ORDERED that the Madi Defendants must create certain
`
`records for ten (10) years after entry of the Order, and retain each such record for five (5)
`
`years. Specifically, Corporate Defendant and Defendant Sam Madi for any business that
`
`such Madi Defendant, individually or collectively with any other Defendant, is a majority
`
`owner or controls directly or indirectly, must create and retain the following records:
`
`A.
`
`B.
`
`Accounting records showing the revenues from all goods or services sold;
`
`Personnel records showing, for each Person providing services, whether as an
`
`employee or otherwise, that Person’s: name; addresses; telephone numbers; job title or
`
`position; dates of service; and (if applicable) the reason for termination;
`
`C.
`
`Records of all consumer complaints and refund requests, whether received
`
`directly or indirectly, such as through a third party, and any response; and
`
`D.
`
`All records necessary to demonstrate full compliance with each provision of this
`
`Order, including all submissions to the Plaintiffs.
`
`Ul-bUJN
`\OOO\)O\
`
`
`
`15
`
`

`

`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 16 of 19
`
`XIII. COMPLIANCE MONITORING
`
`IT IS FURTHER ORDERED that, for the purpose of monitoring the Madi
`
`Defendants’ compliance with this Order, including the financial representations upon
`
`which part of the judgment was suspended and any failure to transfer any assets as
`
`required by this Order:
`
`A.
`
`Within fourteen (14) days of receipt of a written request from a representative of
`
`the Plaintiffs, each Madi Defendant must: submit additional compliance reports or other
`
`requested information, which must be sworn under penalty of perjury; appear for
`
`depositions; and produce documents for inspection and copying. The Plaintiffs are 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.
`
`B.
`
`For matters concerning this Order, the Plaintiffs are authorized to communicate
`
`directly with each Madi Defendant. Madi Defendants must permit representatives of the
`
`Plaintiffs to interview any employee or other Person affiliated with any Madi Defendant
`
`who has agreed to such an interviewd. The Person interviewed may have counsel
`
`present.
`
`C.
`
`The Plaintiffs may use all other lawful means, including posing, through its
`
`representatives as consumers, suppliers, or other individuals or entities, to Madi
`
`Defendants or any individual or entity affiliated with Madi Defendants, without the
`
`necessity of identification or prior notice. Nothing in this Order limits the Plaintiffs’
`
`lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15
`
`U.S.C. §§ 49, 57b-1.
`
`AWN
`
`\OOO\]O\
`
`10
`
`ll
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`13
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`l6
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`

`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 17 of 19
`
`D.
`
`Upon written request from a representative of the Plaintiffs, any consumer
`
`reporting agency must furnish consumer reports concerning Defendant Sam Madi,
`
`pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1).
`
`\OOO\10\
`
`
`
`17
`
`

`

`Case 3:19-cv-00196-KC Document 272-3 Filed 09/21/20 Page 18 of 19
`
`XIV. RETENTION OF JURISDICTION
`IT IS FURTHER ORDERED that this Court retains jurisdiction of this maner for
`
`purposes of construction, modification, and enforcement of this Order.
`
`SO ORDERED, this
`
`day of
`
`, 2020.
`
`KATHLEEN CARDONE
`UNITED STATES DISTRJCT JUDGE
`
`Erin Leahy (Ohio Bar #69509)
`W. Travis Garrison (Ohio Bar #76757)
`Assistant Attorney General
`Ohio Attorney General's Office
`Consumer Protection Section
`30 E. Broad Street. 14th Floor
`Columbus, Ohio 43215
`( 614) 752-4 730
`Erin. Leahy@OhioAttorneyGeneral.gov
`Travis.Garrison@OhioAttorneyGeneral.gov
`
`Attorneys for Plaintiff
`STATE OF OHIO
`
`Federa Trade Commission
`600 Pennsylvania Ave .. NW
`Mailstop CC-8528
`Washington. DC 20580
`(202) 326-2825 I cbrown3@ftc.gov
`(202) 326-3484 I jbrooke@ftc.gov
`Attorneys for Plaintiff
`FEDERAL TRADE COMMISSION
`
`Ecfucare CeJtre Services, Inc.
`By: -:.•'� M· r .. ;
`'F- -l �­
`/, -�1- rla -
`Sam Madi
`
`18
`
`2
`
`3
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`4
`5
`6
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`10
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`14
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`25
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`28
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`

`

`Case 3:19-cv-00196-KC Document 272-3 Filed 09/21/20 Page 19 of 19
`Case 3:19-cv-00196—KC Document 272-3 Filed 09/21/20 Page 19 of 19
`
`XIV. RETENTION OF JURISDICTION
`
`IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for
`
`purposes of construction, modification} and enforcement of this Order,
`
`so ORDERED, this
`
`day of
`
`, 2020.
`
`
`
`KATHLEEN CARDONE
`
`UNITED STATES DISTRICT JUDGE
`
`
`
` WE 417/1le0
`
`Christopher E. Brown
`J. Ronald Brooke, Jr.
`Federal Trade Commission
`600 Pennsylvania Ave, NW
`Mailstop CC—SSZS
`Washington, DC 20580
`(202) 326—2825 / cbrown3@ftc.gov
`(202) 326-3484 / jbrooke@ftc.gov
`
`Attorneys for Plaintiff
`FEDERAL TRADE COMMISSION
`
`Erin Leahy (Oh' Bar #695 9)
`W. Travis Garrison (Ohio Bar #76757)
`Assistant Attorney General
`Ohio Attorney General’ 5 Office
`Consumer Protection Section
`30 E. Broad Street, 14th Floor
`Calumbug) Ohio 43215
`(614) 752-4730
`Erin.Leahy@OhioAttorneyGeneralt gov
`Travis. Garrison@0hi oAttomeyGeneral .gov
`
`Attorneys for Plaintiff
`STATE OF OHIO
`
`
`
`Educare Centre Services, Inc.
`
`By:
`
`
`
`Sam Madi
`
`18
`
`
`
`OO\lO\
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`O 1
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`

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