Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 1 of 36 Page ID #:2639

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KATHERINE M. AIZPURU (pro hac vice)

kaizpuru@ftc.gov

SAMUEL JACOBSON (pro hac vice)

sjacobson@ftc.gov

MARY WEAVER (pro hac vice application pending)

mweaver1@ftc.gov

FEDERAL TRADE COMMISSION

600 Pennsylvania Avenue, N.W.

Mail Stop: CC-10232

Washington, D.C. 20580

(202) 326-2870

JOHN D. JACOBS, Cal. Bar No. 134154

Local Counsel

9 jjacobs@ftc.gov

FEDERAL TRADE COMMISSION

10 10990 Wilshire Boulevard, Suite 400

Los Angeles, CA 90024

11 (310) 824-4300

12 (310) 824-4380 (fax)

13 Attorneys for Plaintiff

UNITED STATES DISTRICT COURT

FOR CENTRAL DISTRICT OF CALIFORNIA

FEDERAL TRADE COMMISSION

Plaintiff,

BCO CONSULTING SERVICES, INC., et

al.,

Defendants.

Case No. 8:23-CV-0699-JWH

(ADSx)

STIPULATION TO ENTRY OF

[PROPOSED] STIPULATED

ORDER FOR PERMANENT

INJUNCTION, MONETARY

RELIEF, AND OTHER RELIEF

AS TO GIANNI OLILANG,

ALLAN RADAM, AND SLA

CONSULTING SERVICES INC.

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its

26 Complaint for Permanent Injunction, Monetary Relief, and Other Relief

27 (“Complaint”) pursuant to Sections 13(b) and 19 of the Federal Trade Commission

Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 2 of 36 Page ID #:2640

Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 57b, the Telemarketing and Consumer

Fraud and Abuse Prevention Act (“Telemarketing Act”), and Section 522(a) of the

Gramm-Leach-Bliley Act (“GLB Act”), 15 U.S.C. § 6822(a). The Commission and

Defendants Gianni Olilang, Allan Radam, and SLA Consulting Services Inc.

(collectively, “Settling Defendants”) stipulate to the entry of the concurrently lodged

[Proposed] Stipulated Order for Permanent Injunction, Monetary Relief, and Other

Relief (“Order”) to resolve all matters in dispute in this action between them.

THEREFORE, IT IS ORDERED as follows:

FINDINGS

This Court has jurisdiction over this matter.

The Complaint charges that Defendants participated in deceptive acts or

12 practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), the

13 Telemarketing Sales Rule (the “TSR”), 16 C.F.R. Part 310, and Section 521 of the

14 Gramm-Leach-Bliley Act (the “GLB Act”), 15 U.S.C. § 6821, in the deceptive

15 marketing and sale of student loan debt relief services.

Only for purposes of this action, Settling Defendants admit the facts

17 necessary to establish jurisdiction.

Defendants waive any claim that they may have under the Equal Access to

19 Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through

20 the date of this Order, and agree to bear their own costs and attorney fees.

Settling Defendants waive all rights to appeal or otherwise challenge or

22 contest the validity of this Order.

DEFINITIONS

For the purpose of this Order, the following definitions apply:

“Assisting Others” includes:

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Performing customer service functions, including receiving or

responding to consumer complaints;

Formulating or providing, or arranging for the formulation or

provision of, any advertising or marketing material, including any telephone sales

script, direct mail solicitation, or the design, text, or use of images of any Internet

website, email, or other electronic communication;

Formulating or providing, or arranging for the formulation or

provision of, any marketing support material or service, including web or Internet

Protocol addresses or domain name registration for any Internet websites, affiliate

10 marketing services, or media placement services;

Providing names of, or assisting in the generation of, potential

Performing marketing, billing, payment processing, or payment

12 customers;

14 services of any kind; or

Acting or serving as an owner, officer, director, manager, or

16 principal of any entity.

“Defendants” means the Individual Defendants and the Corporate

18 Defendants, individually, collectively, or in any combination.

“Corporate Defendant(s)” means BCO Consulting Services,

20 Inc. (“BCO”) and SLA Consulting Services Inc. (“SLA”), and each of their

21 subsidiaries, affiliates, successors, and assigns.

“Individual Defendant(s)” means Gianni Olilang, Brandon

23 Clores, Kishan Bhakta, and Allan Radam, individually, collectively, or in any

24 combination.

“Settling Defendants” means Gianni Olilang, Allan Radam,

26 and SLA (along with its subsidiaries, affiliates, successors, and assigns),

27 individually, collectively, or in any combination.

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Allan Radam, individually, collectively, or in any combination.

“Settling Individual Defendant(s)” means Gianni Olilang and

“Settling Corporate Defendant(s)” means SLA and each of its

subsidiaries, affiliates, successors, and assigns.

“Person” means a natural person, organization, or other legal entity,

including a corporation, partnership, proprietorship, association, cooperative, or

any other group or combination acting as an entity.

“Receiver” means Thomas W. McNamara.

“Receivership Entity(ies)” means the Settling Corporate Defendant,

10 as well as any other entity that has conducted any business related to Settling

11 Defendants’ student loan debt relief services business, including receipt of assets

12 derived from any activity that is the subject of the Complaint in this matter, and

13 which the Receiver has reason to believe is owned or controlled in whole or in part

14 by any Settling Defendant.

“Secured or Unsecured Debt Relief Product or Service” means:

With respect to any mortgage, loan, debt, or obligation between

17 a person and one or more secured or unsecured creditors or debt collectors, any

18 product, service, plan, or program represented, expressly or by implication, to:

stop, prevent, or postpone any mortgage or deed of

20 foreclosure sale for a person’s dwelling, any other sale of collateral, any

21 repossession of a person’s dwelling or other collateral, or otherwise save a person’s

22 dwelling or other collateral from foreclosure or repossession;

negotiate, obtain, or arrange a modification, or

24 renegotiate, settle, reduce, or in any way alter any terms of the mortgage, loan,

25 debt, or obligation, including a reduction in the amount of interest, principal

26 balance, monthly payments, or fees owed by a person to a secured or unsecured

27 creditor or debt collector;

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obtain any forbearance or modification in the timing of

payments from any secured or unsecured holder or servicer of any mortgage, loan,

debt, or obligation;

negotiate, obtain, or arrange any extension of the period

of time within which a person may (i) cure his or her default on the mortgage, loan,

debt, or obligation, (ii) reinstate his or her mortgage, loan, debt, or obligation, (iii)

redeem a dwelling or other collateral, or (iv) exercise any right to reinstate the

mortgage, loan, debt, or obligation or redeem a dwelling or other collateral;

obtain any waiver of an acceleration clause or balloon

10 payment contained in any promissory note or contract secured by any dwelling or

11 other collateral; or

negotiate, obtain, or arrange (i) a short sale of a dwelling

13 or other collateral, (ii) a deed-in-lieu of foreclosure, or (iii) any other disposition of

14 a mortgage, loan, debt, or obligation other than a sale to a third party that is not the

15 secured or unsecured loan holder.

16 The foregoing shall include any manner of claimed assistance, including auditing

17 or examining a person’s application for the mortgage, loan, debt, or obligation.

With respect to any loan, debt, or obligation between a person

19 and one or more unsecured creditors or debt collectors, any product, service, plan,

20 or program represented, expressly or by implication, to:

repay one or more unsecured loans, debts, or obligations;

or more new loans, debts, or obligations.

combine unsecured loans, debts, or obligations into one

“Telemarketing” means any plan, program, or campaign which is

26 conducted to induce the purchase of goods or services or a charitable contribution,

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by use of one or more telephones, and which involves more than one interstate

telephone call.

ORDER

BAN ON SECURED AND UNSECURED

DEBT RELIEF PRODUCTS AND SERVICES

IT IS ORDERED that Settling Defendants are permanently restrained and

enjoined from advertising, marketing, promoting, offering for sale, selling, or

Assisting Others in the advertising, marketing, promoting, offering for sale, or

selling, of any Secured or Unsecured Debt Relief Product or Service.

II.

IT IS FURTHER ORDERED that Settling Defendants are permanently

restrained and enjoined from participating in Telemarketing, whether directly or

through an intermediary, and including by consulting, brokering, planning,

investing, or advising others regarding Telemarketing.

III. PROHIBITION AGAINST

MISREPRESENTATIONS RELATING TO ANY

PRODUCTS OR SERVICES

BAN ON TELEMARKETING

IT IS FURTHER ORDERED that Settling Defendants and Settling

18 Defendants’ officers, agents, employees, and attorneys, and all other Persons in

19 active concert or participation with any of them, who receive actual notice of this

20 Order, whether acting directly or indirectly, in connection with the advertising,

21 marketing, promoting, offering for sale, or selling of any product, service, plan, or

22 program are permanently restrained and enjoined from misrepresenting, or

23 Assisting Others in misrepresenting, expressly or by implication:

Any material aspect of the nature or terms of any refund, cancellation,

25 exchange, or repurchase policy, including the likelihood of a consumer obtaining a

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full or partial refund, or the circumstances in which a full or partial refund will be

granted to the consumer;

That any Person is affiliated with, endorsed or approved by, or

otherwise connected to any other Person; government entity; public, non-profit, or

other non-commercial program; or any other program;

The nature, expertise, position, or job title of any Person who provides

any product, service, plan, or program;

That the ability to improve or otherwise affect a consumer’s credit

record, credit history, credit rating, or ability to obtain credit, including that a

10 consumer’s credit record, credit history, credit rating, or ability to obtain credit can

11 be improved by permanently removing negative information from the consumer’s

12 credit record or history, even where such information is accurate and not obsolete;

That a consumer will save money; or

Any other fact material to consumers concerning any good or service,

15 such as: the total costs; any restrictions, limitations, or conditions; or any aspect of

16 its performance, efficacy, nature, or central characteristics.

IV. PROHIBITION AGAINST

UNSUBSTANTIATED CLAIMS

IT IS FURTHER ORDERED that Settling Defendants and Settling

20 Defendants’ officers, agents, employees, and attorneys, and all other Persons in

21 active concert or participation with any of them, who receive actual notice of this

22 Order, whether acting directly or indirectly, in connection with the advertising,

23 marketing, promoting, offering for sale, or selling of any product, service, plan, or

24 program are permanently restrained and enjoined from making any representation

25 or Assisting Others in making any misrepresentation, expressly or by implication,

26 about the benefits, performance, or efficacy of any product or service, unless the

27 representation is non-misleading, and, at the time such representation is made, that

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Settling Defendant possesses and relies upon competent and reliable evidence that

is sufficient in quality and quantity based on standards generally accepted in

relevant fields, when considered in light of the entire body of relevant and reliable

evidence, to substantiate that the representation is true.

PROHIBITION AGAINST OBTAINING

CUSTOMER INFORMATION BY FALSE

PRETENSES

IT IS FURTHER ORDERED that Settling Defendants and Settling

Defendants’ officers, agents, employees, and attorneys, and all other Persons in

active concert or participation with any of them, who receive actual notice of this

Order, whether acting directly or indirectly are permanently restrained and

enjoined from:

financial institution (including bank account routing number, account number, or

log-in credentials) from a consumer by making false, fictitious, or fraudulent

representations to any consumer or financial institution; or

Violating the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809, §§

6821-6827, a copy of which is attached as ATTACHMENT A.

VI. MONETARY JUDGMENT AND PARTIAL

SUSPENSION

Obtaining, or attempting to obtain customer information of a

IT IS FURTHER ORDERED that:

Judgment in the amount of five million, eight hundred eighty-two

thousand, seventy-two Dollars ($5,882,072.04) is entered in favor of the

Commission against Settling Defendants, jointly and severally, as monetary relief.

The liability of Settling Defendants for the judgment shall be joint and several with

judgment against any other Defendants by separate order.

The monetary judgment set out in Section VI.A is enforceable against

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any asset, real or personal, whether located within the United States or outside the

United States, owned jointly or singly by, on behalf of, for the benefit of, in trust

by or for, or as a deposit for future goods or services to be provided to, any Settling

Defendant, whether held as tenants in common, joint tenants with or without the

right of survivorship, tenants by the entirety, and/or community property.

In partial satisfaction of the judgment against Settling Defendants:

Defendant Olilang shall, within 20 days after the date of entry

of this Order, either (a) transfer to the FTC or its designated agent cash in

the amount of $201,986 or (b) transfer to the Receiver title to the real

property located at

Olilang shall cooperate fully with the Receiver and shall execute any

instrument or document presented by the Receiver, and do whatever else the

Receiver deems necessary or desirable to effect such transfer. Upon such

transfer, the real property shall be an asset of the receivership estate, to be

governed by Section X of this Order.

, in which case Defendant

Defendant Olilang shall, within 20 days after the date of entry

of this Order, either (a) transfer to the FTC or its designated agent cash in

the amount of $146,330 or (b) transfer to the Receiver title to the real

property located at

which case Defendant Olilang shall cooperate fully with the Receiver and

shall execute any instrument or document presented by the Receiver, and do

whatever else the Receiver deems necessary or desirable to effect such

transfer. Upon such transfer, the real property shall be an asset of the

receivership estate, to be governed by Section X of this Order.

, in

In addition to the amounts set forth in Subsections VI.C.1-2,

any financial or brokerage institution, payment processor, escrow agent, title

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company, commodity trading company, business entity, or person, whether

located within the United States or outside the United States, that holds,

controls, or maintains accounts or assets of, on behalf of, or for the benefit

of, any Receivership Entity, whether real or personal, whether located within

the United States or outside the United States, shall, within ten (10) business

days from receipt of a copy of this Order, turn over such accounts or assets

to the Receiver or his designated agent.

In addition to the amounts set forth in Subsections VI.C.1-3,

any financial or brokerage institution, escrow agent, title company,

commodity trading company, business entity, or person, whether located

within the United States or outside the United States, that holds, controls, or

maintains accounts or assets of, on behalf of, or for the benefit of, any

Settling Individual Defendant, whether real or personal, whether located

within the United States or outside the United States, shall, within ten (10)

business days from receipt of a copy of this order, liquidate and turn over

such account or asset to the FTC or its designated agent, including, but not

limited to:

i. JPMorgan Chase Bank, N.A. (“Chase”) shall, within ten

(10) days of receipt of a copy of this Order, transfer to the FTC

or its designated agent all holdings in account number

xxxx6256 in the name of Gianni Olilang;

ii. Chase shall, within ten (10) days of receipt of a copy of

this Order, transfer to the FTC or its designated agent all

holdings in account number xxxx3771 in the name of Gianni

Olilang;

iii. Chase shall, within ten (10) days of receipt of a copy of

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this Order, transfer to the FTC or its designated agent all

holdings in account number xxxx2074 in the name of Allan

Radam;

iv. J.P. Morgan Securities LLC (“JPMS”) shall, within ten

(10) days of receipt of a copy of this Order, transfer to the FTC

or its designated agent all holdings in account number

xxxx4001 in the name of Gianni Olilang;

v. Navy Federal Credit Union (“Navy Federal”) shall,

within ten (10) days of receipt of a copy of this Order, transfer

to the FTC or its designated agent all holdings in account

number xxxx0567 in the name of Gianni Olilang;

vi. Navy Federal shall, within ten (10) days of receipt of a

copy of this Order, transfer to the FTC or its designated agent

all holdings in account number xxxx3341 in the name of Gianni

Olilang;

vii. Charles Schwab Bank, SSB shall, within ten (10) days of

receipt of a copy of this Order, liquidate and transfer to the FTC

or its designated agent all holdings in account number

xxxx6226 in the name of Gianni Olilang;

viii. Charles Schwab & Co., Inc. shall, within ten (10) days of

receipt of a copy of this Order, liquidate and transfer to the FTC

or its designated agent all holdings in account number

xxxx9258 in the name of Gianni Olilang;

ix. TD AmeriTrade shall, within ten (10) days of receipt of a

copy of this Order, liquidate and transfer to the FTC or its

designated agent all holdings in account number xxxx3006 in

the name of Allan Radam;

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x. Wellbull Financial LLC (“Wellbull”) shall, within 10

days of receipt of a copy of this Order, liquidate and transfer to

the FTC or its designated agent all holdings in account number

xxxx2042 in the name of Gianni Olilang;

xi.

xii. Wells Fargo Bank, N.A. shall, within 10 days of receipt

of a copy of this Order, transfer to the FTC or its designated

agent all holdings in account number xxxx8554 in the name of

Gianni Olilang;

xiii. Robinhood Markets, Inc. shall, within 10 days of receipt

of a copy of this Order, liquidate and transfer to the FTC or its

designated agent all holdings in account number xxxx8554 in

the name of Gianni Olilang;

xiv. Orange County’s Credit Union shall, within 10 days of

receipt of a copy of this Order, liquidate and transfer to the FTC

or its designated agent all holdings in account number

xxxx0040 in the name of Gianni Olilang.

Upon such payment and all other asset transfers, as set forth in

19 Sections VI.C and VII, the remainder of the judgment is suspended, subject to the

20 Subsections below.

The asset freeze is modified to permit the transfers and liquidations

22 identified in this Section. Upon completion of those transfers and liquidations, the

23 asset freeze as to Settling Defendants is dissolved.

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The Commission’s agreement to the suspension of part of the

judgment is expressly premised upon the truthfulness, accuracy, and completeness

of Settling Defendants’ sworn financial statements and related documents

(collectively, “financial representations”) submitted to the Commission, namely:

signed on May 15, 2023, including the attachments;

the Financial Statement of Individual Defendant Gianni Olilang

the Financial Statement of Individual Defendant Allan Radam

signed on May 15, 2023, including the attachments;

the Financial Statement of Corporate Defendant SLA

10 Consulting Services Inc. signed by Allan Radam, on May 15, 2023, including the

11 attachments; and

The additional documentation submitted by email from

13 Defendants’ counsel Andrew Galvin to Commission counsel Katherine Aizpuru

14 dated June 1, 2023, and enclosing information about transactions associated with

15 Navy Federal Credit Union accounts in the name of Gianni Olilang.

The suspension of the judgment will be lifted as to any Settling

17 Defendant if, upon motion by the Commission, the Court finds that Settling

18 Defendant failed to disclose any material asset, materially misstated the value of

19 any asset, or made any other material misstatement or omission in the financial

20 representations identified above.

If the suspension of the judgment is lifted, the judgment becomes

22 immediately due as to that Settling Defendant in the amount specified in

23 Subsection VI.A above (which the parties stipulate, only for purposes of this

24 Section, represents the consumer injury alleged in the Complaint), less any

25 payment previously made pursuant to this Section, plus interest computed from the

26 date of entry of this Order.

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VII. ADDITIONAL MONETARY PROVISIONS

IT IS FURTHER ORDERED that:

Settling 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.

The facts alleged in the Complaint will be taken as true, without

further proof, in any subsequent civil litigation by or on behalf of the Commission,

including in a proceeding to enforce its rights to any payment or monetary

judgment pursuant to this Order, such as a nondischargeability complaint in any

10 bankruptcy case.

The facts alleged in the Complaint establish all elements necessary to

12 sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the

13 Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral

14 estoppel effect for such purposes.

Settling Defendants acknowledge that their Taxpayer Identification

16 Numbers (Social Security Numbers or Employer Identification Numbers), which

17 Settling Defendants previously submitted to the Commission, may be used for

18 collecting and reporting on any delinquent amount arising out of this Order, in

19 accordance with 31 U.S.C. §7701.

All money received by the Commission pursuant to this Order may be

21 deposited into a fund administered by the Commission or its designee to be used

22 for consumer relief, such as redress and any attendant expenses for the

23 administration of any redress fund. If a representative of the Commission decides

24 that direct redress to consumers is wholly or partially impracticable or money

25 remains after such redress is completed, the Commission may apply any remaining

26 money for such related relief (including consumer information remedies) as it

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determines to be reasonably related to Settling Defendants’ practices alleged in the

Complaint. Any money not used for relief is to be deposited to the U.S. Treasury.

Settling Defendants have no right to challenge any actions the Commission or its

representatives may take pursuant to this Subsection.

VIII. CUSTOMER INFORMATION

IT IS FURTHER ORDERED that Settling Defendants, Settling Defendants’

officers, agents, employees, attorneys, and all other Persons in active concert or

participation with any of them, who receive actual notice of this Order, are

permanently restrained and enjoined from directly or indirectly:

Failing to provide sufficient customer information to enable the

11 Commission to efficiently administer consumer redress. Settling Defendants

12 represent that they have provided this redress information to the Commission. If a

13 representative of the Commission requests in writing any information related to

14 redress, Settling Defendants must provide it, in the form prescribed by the

15 Commission, within 14 days.

Disclosing, using, or benefitting from customer information, including

17 the name, address, telephone number, email address, social security number, FSA

18 ID, other identifying information, or any data that enables access to a customer’s

19 account (including a student loan account, credit card, bank account, or other

20 financial account) that any Settling Defendant obtained prior to entry of this Order

21 in connection with the marketing or sale of Secured or Unsecured Debt Relief

22 Products or Services; and

Failing to destroy such customer information in all forms in their

24 possession, custody, or control within 30 days after receipt of written direction to

25 do so from a representative of the Commission.

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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.

IX. COOPERATION

IT IS FURTHER ORDERED that Settling Defendants must fully cooperate

with representatives of the Commission in this case and in any investigation related

to or associated with the transactions or the occurrences that are the subject of the

Complaint. Settling Defendants must provide truthful and complete information,

evidence, and testimony. Settling Individual Defendants must appear and Settling

10 Corporate Defendants must cause Settling Defendants’ officers, employees,

11 representatives, or agents to appear for interviews, discovery, hearings, trials, and

12 any other proceedings that a Commission representative may reasonably request

13 upon 5 days written notice, or other reasonable notice, at such places and times as a

14 Commission representative may designate, without the service of a subpoena.

X. RECEIVERSHIP TERMINATION

IT IS FURTHER ORDERED that Thomas McNamara, Esq., shall continue

17 as a permanent receiver over the Receivership Entities with full powers of a

18 permanent receiver, including but not limited to those powers set forth in the

19 Preliminary Injunction (ECF No. 55). The Receiver is directed to wind up the

20 Receivership Entities and liquidate all assets within 180 days after entry of this

21 Order. Any party or the Receiver may request that the Court extend the Receiver’s

22 term for good cause. Upon termination of the receivership and final payment to

23 the Receiver of all approved fees, costs, and expenses, the Receiver shall turn over

24 to the FTC or its designated agent all remaining assets in the receivership estate.

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XI. ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Settling Defendants obtain

acknowledgments of receipt of this Order:

Each Settling Defendant, within 7 days of entry of this Order, must

submit to the Commission an acknowledgment of receipt of this Order sworn

under penalty of perjury.

For 20 years after entry of this Order, each Settling Individual

Defendant for any business that such Settling Defendant, individually or

collectively with any other Defendants, is the majority owner or controls directly

10 or indirectly, and each Settling Corporate Defendant, must deliver a copy of this

11 Order to: (1) all principals, officers, directors, and LLC managers and members;

12 (2) all employees having managerial responsibilities for Secured or Unsecured

13 Debt Relief Products or Services, and all agents and representatives who

14 participate in the Secured or Unsecured Debt Relief Products or Services; and (3)

15 any business entity resulting from any change in structure as set forth in the

16 Section titled Compliance Reporting. Delivery must occur within 7 days of entry

17 of this Order for current personnel. For all others, delivery must occur before they

18 assume their responsibilities.

From each individual or entity to which a Settling Defendant

20 delivered a copy of this Order, that Settling Defendant must obtain, within 30 days,

21 a signed and dated acknowledgment of receipt of this Order.

XII. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Settling Defendants make timely

24 submissions to the Commission:

One year after entry of this Order, each Settling Defendant must

26 submit a compliance report, sworn under penalty of perjury:

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Each Settling Defendant must: (a) identify the primary

physical, postal, and email address and telephone number, as designated points of

contact, which representatives of the Commission may use to communicate with

Settling Defendant; (b) identify all of that Settling 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 Settling Defendant (which the Settling Individual

Defendants must describe if they know or should know due to their own

10 involvement); (d) describe in detail whether and how that Settling Defendant is in

11 compliance with each Section of this Order; and (e) provide a copy of each Order

12 Acknowledgment obtained pursuant to this Order, unless previously submitted to

13 the Commission.

Additionally, each Settling Individual Defendant must: (a)

15 identify all telephone numbers and all physical, postal, email and Internet

16 addresses, including all residences; (b) identify all business activities, including

17 any business for which such Settling Defendant performs services whether as an

18 employee or otherwise and any entity in which such Settling Defendant has any

19 ownership interest; and (c) describe in detail such Settling Defendant’s

20 involvement in each such business, including title, role, responsibilities,

21 participation, authority, control, and any ownership.

For 20 years after entry of this Order, each Settling Defendant must

23 submit a compliance notice, sworn under penalty of perjury, within 14 days of any

24 change in the following:

Each Settling Defendant must report any change in: (a) any

26 designated point of contact; or (b) the structure of any Settling Corporate

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Defendant or any entity that any Settling Defendant 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.

Additionally, each Settling Individual Defendant 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 such

Settling Defendant performs services whether as an employee or otherwise and any

10 entity in which such Settling Defendant has any ownership interest, and identify

11 the name, physical address, and any Internet address of the business or entity.

Each Settling Defendant must submit to the Commission notice of the

13 filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by

14 or against such Settling Defendant within 14 days of its filing.

Any submission to the Commission required by this Order to be

16 sworn under penalty of perjury must be true and accurate and comply with 28

17 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under

18 the laws of the United States of America that the foregoing is true and correct.

19 Executed on: _____” and supplying the date, signatory’s full name, title (if

20 applicable), and signature.

Unless otherwise directed by a Commission representative in writing,

22 all submissions to the Commission pursuant to this Order must be emailed to

23 DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to:

24 Associate Director for Enforcement, Bureau of Consumer Protection, Federal

25 Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The

26 subject line must begin: FTC v. BCO Consulting Services, Inc., et al., X230027.

-19-

Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 20 of 36 Page ID #:2658

XIII. RECORDKEEPING

IT IS FURTHER ORDERED that Settling Defendants must create certain

records for 20 years after entry of the Order, and retain each such record for 5

years. Specifically, each Settling Defendant for any business that such Settling

Defendant, individually or collectively with any other Settling Defendants, is a

majority owner or controls directly or indirectly, must create and retain the

following records:

accounting records showing the revenues from all goods or services

personnel records showing, for each Person providing services,

sold;

11 whether as an employee or otherwise, that Person’s: name; addresses; telephone

12 numbers; job title or position; dates of service; and (if applicable) the reason for

13 termination;

records of all consumer complaints and refund requests, whether

15 received directly or indirectly, such as through a third party, and any response;

all records necessary to demonstrate full compliance with each

17 provision of this Order, including all submissions to the Commission; and

a copy of each unique advertisement or other marketing material.

XIV. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring Settling

21 Defendants’ compliance with this Order, including the financial representations

22 upon which part of the judgment was suspended and any failure to transfer any

23 assets as required by this Order:

Within 14 days of receipt of a written request from a representative of

25 the Commission, each Settling Defendant must: submit additional compliance

26 reports or other requested information, which must be sworn under penalty of

-20-

Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 21 of 36 Page ID #:2659

perjury; appear for depositions; and produce documents for inspection and

copying. The Commission is also authorized to obtain discovery, without further

leave of court, using any of the procedures prescribed by Federal Rules of Civil

Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.

For matters concerning this Order, the Commission is authorized to

communicate directly with each Settling Defendant. Settling Defendant must

permit representatives of the Commission to interview any employee or other

Person affiliated with any Settling Defendant who has agreed to such an interview.

The Person interviewed may have counsel present.

The Commission may use all other lawful means, including posing,

11 through its representatives as consumers, suppliers, or other individuals or entities,

12 to Settling Defendants or any individual or entity affiliated with Settling

13 Defendants, without the necessity of identification or prior notice. Nothing in this

14 Order limits the Commission’s lawful use of compulsory process, pursuant to

15 Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.

Upon written request from a representative of the Commission, any

17 consumer reporting agency must furnish consumer reports concerning Settling

18 Individual Defendants, pursuant to Section 604(1) of the Fair Credit Reporting Act,

19 15 U.S.C. §1681b(a)(1).

XV. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of this

22 matter for purposes of construction, modification, and enforcement of this Order.

24 So Stipulated.

[Rest of page left blank]

-21-

Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 22 of 36 Page ID #:2660

FOR SETTLING DEFENDANTS:

_________________________

Date: 8/9/2023

__________

GIANNI OLILANG, individually and as an

officer of BCO CONSULTING SERVICES,

INC. and SLA CONSULTING SERVICES INC.

_________________________

Date: __________

8/9/2023

ALLAN RADAM, individually and as an

officer of SLA CONSULTING SERVICES INC.

10 _________________________

11 SLA CONSULTING SERVICES INC.

BY: __________________________

Gianni Olilang

Date: 8/9/2023

__________

_________________________

14 Andrew Galvin

15 BARNES & THORNBURG LLP

655 W. Broadway, Suite 1300

16 San Diego, CA 92101

17 andrew.galvin@btlaw.com

Date: __________

18 Counsel for Defendants Gianni Olilang, Allan Radam, and SLA Consulting

19 Services Inc.

8/9/2023

-22-

Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 23 of 36 Page ID #:2661

FOR THE FEDERAL TRADE COMMISSION:

10/05/2023

___________________________

Date: ________________

KATHERINE M. AIZPURU (pro hac vice)

kaizpuru@ftc.gov

SAMUEL JACOBSON (pro hac vice)

sjacobson@ftc.gov

MARY WEAVER (pro hac vice application pending)

mweaver1@ftc.gov

FEDERAL TRADE COMMISSION

600 Pennsylvania Avenue, N.W.

Mail Stop: CC-10232

Washington, D.C. 20580

(202) 326-2870

11 Counsel for Plaintiff Federal Trade Commission

-23-

Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 24 of 36 Page ID #:2662

Attachment A

:r~ ; lS:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 25 of 36 Page ID #:2663

TITLE 15--COMMERCE AND TRADE

§6781

lines broker or agent, insurance consultant,

limited insurance representative, and any

other individual or ent ity that sells, solicits,

or negot iates policies of insurance or offers ad

vice, counsel, opinions or services relat ed t o

insurance.

(6) Insurer

The term " insurer" has the meaning as in

section 313(e)(2)(B) of t itle 31.

(7) Principal place of bus iness

The t erm " principal place of business"

means the State in which an insurance pro

ducer maintains the headquart ers of the insur

ance producer and, in the case of a business

ent ity, where high-level officers of the entity

direct, control, and coordinat e the business

activities of the business entity.

(8) Principal place of residence

The term " principal place of residence"

means the State in which an insurance pro

ducer resides for the greatest number of days

during a calendar year.

(9) State

The t erm " State" includes any State, the

District of Columbia, any t erritory of the

Unit ed States, and Puerto Rico, Guam, Amer

ican Samoa, the Trust Territory of the Pacific

Islands, the Virgin Islands, and the Nort hern

Mariana Islands.

Page 2228

SUBCHAPTER IV- RENTAL CAR AGENCY

INSURANCE ACTIVITIES

§ 6781. Standard of regulation for motor vehicle

rentals

(a) Protection against retroactive application of

regulatory and legal action

Except as provided in subsection (b), during

the 3-year period beginning on November 12,

1999, it shall be a presumpt ion that no State law

imposes any licensing, appoint ment, or edu

cation requirements on any person who solicits

the purchase of or sells insurance connected

with, and incidental to, the lease or rental of a

motor vehicle.

(b) Preeminence of State insurance law

No provision of this sect ion shall be construed

as altering the validity, interpretation, con

struct ion, or effect of(1) any State statute;

(2) the prospective applicat ion of any court

judgment interpret ing or applying any State

statute; or

(3) the prospective application of any final

State regulation, order, bullet in, or other

statutorily aut horized interpretat ion or ac

tion,

which, by its specific terms, expressly regulates

or exempts from regulat ion any person who so

licits the purchase of or sells insurance con

nected with, and incidental to, the short-term

lease or rental of a mot or vehicle.

(10) State law

(A ) In general

The t erm " State law" includes all laws,

decisions, rules, regulations, or ot her State

action having the effect of law, of any State.

(B ) Laws applicable in the District of Colum-

bia

A law of the Unit ed States applicable only

to or within the District of Columbia shall

be treated as a State law rather than a law

of the United Stat es.

(Pub. L. 106-102, title III, §334, as added Pub. L.

114-1, title II, §202(a), Jan. 12, 2015, 129 Stat . 27.)

This sect ion shall apply with respect to(1) the lease or rental of a motor vehicle for

a t otal period of 90 consecutive days or less;

and

(2) insurance which is provided in connect ion

with, and incidentally to, such lease or rental

for a period of consecut ive days not exceeding

the lease or rental period.

(d) Motor vehicle defined

For purposes of this section, the term " motor

vehicle" has the same meaning as in section

13102 of title 49.

(Pub. L. 106-102, title III, §341, Nov. 12, 1999, 113

Stat . 1434.)

CHAPTER 94-PRIVACY

Editorial Notes

PRIOR PROVISIONS

Provts ions simil ar to t his s ection were c ontained in

section 6766 of this t itl e , prior t o t he general amend

ment of this subchapter by Pub. L. 114-1.

A prior s ec tion 6764 , Pub. L . 106-102, ti tle III, §334,

Nov. 12, 1999, 113 S tat. 1433, related to coordinat ion With

other regul ators, prior to t he general amendment of

t his s ubchapt er by Pub. L . 114-1. See s ection 6761 of this

t itle.

A prior s ec tion 6765 , Pub. L . 106-102, ti tle III, §335,

Nov. 12, 1999, 113 S tat. 1433, which related to judicial re

view , was omitted in the general amendment of this

subchapter by Pub. L . 114-1. See s ection 6762 of this

t itle.

A prior s ec tion 6766 , Pub. L . 106-102, ti tle III, §336,

Nov. 12, 1999, 113 Stat. 1433, which relat ed to defini t ions,

was omitted in the general amendment of this s ub

chapter by Pub. L. 114-1.

SUBCHAPTER I-DISCLOSURE OF NONPUBL IC

PERSONAL INFORMATION

Sec.

Protec tion of nonpublic personal informat ion.

Obligat ions with respect t o dis closures of personal information.

Disclosure of institution privacy policy.

6803.

Rulemaking.

6804.

6805.

Enforcement.

Relation to other provisions.

6806.

Relation to Stat e laws.

6807.

Study of informat ion sharing among financial

6808.

affiliat es .

6809.

Definitions.

SUBCHAPTER II-FRAUDULENT ACCESS TO

FINANCIAL INFORMATION

6821.

Privacy pro t ection for customer information

of financial institut ions.

6822.

Administ rative enforcement.

6801.

6802.

Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 26 of 36 Page ID #:2664

Page 2229

TITLE 15—COMMERCE AND TRADE

Sec.

6823.

6824.

6825.

6826.

6827.

Criminal penalty.

Relation to State laws.

Agency guidance.

Reports.

Definitions.

SUBCHAPTER I—DISCLOSURE OF

NONPUBLIC PERSONAL INFORMATION

§ 6801. Protection of nonpublic personal information

(a) Privacy obligation policy

It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its

customers and to protect the security and confidentiality of those customers’ nonpublic personal information.

(b) Financial institutions safeguards

In furtherance of the policy in subsection (a),

each agency or authority described in section

6805(a) of this title, other than the Bureau of

Consumer Financial Protection, shall establish

appropriate standards for the financial institutions subject to their jurisdiction relating to administrative, technical, and physical safeguards—

(1) to insure the security and confidentiality

of customer records and information;

(2) to protect against any anticipated

threats or hazards to the security or integrity

of such records; and

(3) to protect against unauthorized access to

or use of such records or information which

could result in substantial harm or inconvenience to any customer.

(Pub. L. 106–102, title V, § 501, Nov. 12, 1999, 113

Stat. 1436; Pub. L. 111–203, title X, § 1093(1), July

21, 2010, 124 Stat. 2095.)

Editorial Notes

AMENDMENTS

2010—Subsec. (b). Pub. L. 111–203 inserted ‘‘, other

than the Bureau of Consumer Financial Protection,’’

after ‘‘section 6805(a) of this title’’ in introductory provisions.

Statutory Notes and Related Subsidiaries

EFFECTIVE DATE OF 2010 AMENDMENT

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.

111–203, set out as a note under section 552a of Title 5,

Government Organization and Employees.

EFFECTIVE DATE

Pub. L. 106–102, title V, § 510, Nov. 12, 1999, 113 Stat.

1445, provided that: ‘‘This subtitle [subtitle A

(§§ 501–510) of title V of Pub. L. 106–102, enacting this

subchapter and amending section 1681s of this title]

shall take effect 6 months after the date on which rules

are required to be prescribed under section 504(a)(3) [15

U.S.C. 6804(a)(3)], except—

‘‘(1) to the extent that a later date is specified in

the rules prescribed under section 504; and

‘‘(2) that sections 504 [15 U.S.C. 6804] and 506 [enacting section 6806 of this title and amending section

1681s of this title] shall be effective upon enactment

[Nov. 12, 1999].’’

§ 6802

§ 6802. Obligations with respect to disclosures of

personal information

(a) Notice requirements

Except as otherwise provided in this subchapter, a financial institution may not, directly or through any affiliate, disclose to a

nonaffiliated third party any nonpublic personal

information, unless such financial institution

provides or has provided to the consumer a notice that complies with section 6803 of this title.

(b) Opt out

(1) In general

A financial institution may not disclose

nonpublic personal information to a nonaffiliated third party unless—

(A) such financial institution clearly and

conspicuously discloses to the consumer, in

writing or in electronic form or other form

permitted by the regulations prescribed

under section 6804 of this title, that such information may be disclosed to such third

party;

(B) the consumer is given the opportunity,

before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party; and

of how the consumer can exercise that nondisclosure option.

(2) Exception

This subsection shall not prevent a financial

institution from providing nonpublic personal

information to a nonaffiliated third party to

perform services for or functions on behalf of

the financial institution, including marketing

of the financial institution’s own products or

services, or financial products or services offered pursuant to joint agreements between

two or more financial institutions that comply with the requirements imposed by the regulations prescribed under section 6804 of this

title, if the financial institution fully discloses

the providing of such information and enters

into a contractual agreement with the third

party that requires the third party to maintain the confidentiality of such information.

Except as otherwise provided in this subchapter, a nonaffiliated third party that receives from a financial institution nonpublic

personal information under this section shall

not, directly or through an affiliate of such receiving third party, disclose such information to

any other person that is a nonaffiliated third

party of both the financial institution and such

receiving third party, unless such disclosure

would be lawful if made directly to such other

person by the financial institution.

(d) Limitations on the sharing of account number information for marketing purposes

A financial institution shall not disclose,

other than to a consumer reporting agency, an

account number or similar form of access number or access code for a credit card account, deposit account, or transaction account of a consumer to any nonaffiliated third party for use in

telemarketing, direct mail marketing, or other

Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 27 of 36 Page ID #:2665

§ 6803

TITLE 15—COMMERCE AND TRADE

marketing through electronic mail to the consumer.

(e) General exceptions

Subsections (a) and (b) shall not prohibit the

disclosure of nonpublic personal information—

(1) as necessary to effect, administer, or enforce a transaction requested or authorized by

the consumer, or in connection with—

(A) servicing or processing a financial

product or service requested or authorized

by the consumer;

(B) maintaining or servicing the consumer’s account with the financial institution, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity; or

secondary market sale (including sales of

servicing rights), or similar transaction related to a transaction of the consumer;

(2) with the consent or at the direction of

the consumer;

(3)(A) to protect the confidentiality or security of the financial institution’s records pertaining to the consumer, the service or product, or the transaction therein; (B) to protect

against or prevent actual or potential fraud,

unauthorized transactions, claims, or other liability; (C) for required institutional risk control, or for resolving customer disputes or inquiries; (D) to persons holding a legal or beneficial interest relating to the consumer; or (E)

to persons acting in a fiduciary or representative capacity on behalf of the consumer;

(4) to provide information to insurance rate

advisory organizations, guaranty funds or

agencies, applicable rating agencies of the financial institution, persons assessing the institution’s compliance with industry standards, and the institution’s attorneys, accountants, and auditors;

(5) to the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy

Act of 1978 [12 U.S.C. 3401 et seq.], to law enforcement agencies (including the Bureau of

Consumer Financial Protection 1 a Federal

functional regulator, the Secretary of the

Treasury with respect to subchapter II of

chapter 53 of title 31, and chapter 2 of title I

of Public Law 91–508 (12 U.S.C. 1951–1959), a

State insurance authority, or the Federal

Trade Commission), self-regulatory organizations, or for an investigation on a matter related to public safety;

(6)(A) to a consumer reporting agency in accordance with the Fair Credit Reporting Act

[15 U.S.C. 1681 et seq.], or (B) from a consumer

report reported by a consumer reporting agency;

(7) in connection with a proposed or actual

sale, merger, transfer, or exchange of all or a

portion of a business or operating unit if the

disclosure of nonpublic personal information

concerns solely consumers of such business or

unit; or

(8) to comply with Federal, State, or local

laws, rules, and other applicable legal require1 So in original. Probably should be followed by a comma.

Page 2230

ments; to comply with a properly authorized

civil, criminal, or regulatory investigation or

subpoena or summons by Federal, State, or

local authorities; or to respond to judicial

process or government regulatory authorities

having jurisdiction over the financial institution for examination, compliance, or other

purposes as authorized by law.

(Pub. L. 106–102, title V, § 502, Nov. 12, 1999, 113

Stat. 1437; Pub. L. 111–203, title X, § 1093(2), July

21, 2010, 124 Stat. 2095.)

Editorial Notes

REFERENCES IN TEXT

This subchapter, referred to in subsecs. (a) and (c),

was in the original ‘‘this subtitle’’, meaning subtitle A

(§§ 501–510) of title V of Pub. L. 106–102, Nov. 12, 1999, 113

Stat. 1436, which is classified principally to this subchapter. For complete classification of subtitle A to

the Code, see Tables.

The Right to Financial Privacy Act of 1978, referred

to in subsec. (e)(5), is title XI of Pub. L. 95–630, Nov. 10,

1978, 92 Stat. 3697, which is classified generally to chapter 35 (§ 3401 et seq.) of Title 12, Banks and Banking. For

complete classification of this Act to the Code, see

Short Title note set out under section 3401 of Title 12

and Tables.

Chapter 2 of title I of Public Law 91–508, referred to

in subsec. (e)(5), is chapter 2 (§§ 121–129) of title I of Pub.

L. 91–508, Oct. 26, 1970, 84 Stat. 1116, which is classified

generally to chapter 21 (§ 1951 et seq.) of Title 12, Banks

and Banking. For complete classification of chapter 2

to the Code, see Tables.

The Fair Credit Reporting Act, referred to in subsec.

(e)(6)(A), is title VI of Pub. L. 90–321, as added by Pub.

L. 91–508, title VI, § 601, Oct. 26, 1970, 84 Stat. 1127, which

is classified generally to subchapter III (§ 1681 et seq.) of

chapter 41 of this title. For complete classification of

this Act to the Code, see Short Title note set out under

section 1601 of this title and Tables.

AMENDMENTS

2010—Subsec. (e)(5). Pub. L. 111–203 inserted ‘‘the Bureau of Consumer Financial Protection’’ after ‘‘(including’’.

Statutory Notes and Related Subsidiaries

EFFECTIVE DATE OF 2010 AMENDMENT

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.

111–203, set out as a note under section 552a of Title 5,

Government Organization and Employees.

§ 6803. Disclosure of institution privacy policy

(a) Disclosure required

At the time of establishing a customer relationship with a consumer and not less than annually during the continuation of such relationship, a financial institution shall provide a clear

and conspicuous disclosure to such consumer, in

writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, of such financial institution’s policies and practices with respect to—

(1) disclosing nonpublic personal information to affiliates and nonaffiliated third parties, consistent with section 6802 of this title,

including the categories of information that

may be disclosed;

(2) disclosing nonpublic personal information of persons who have ceased to be customers of the financial institution; and

Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 28 of 36 Page ID #:2666

Page 2231

§ 6803

TITLE 15—COMMERCE AND TRADE

(3) protecting the nonpublic personal information of consumers.

(b) Regulations

Disclosures required by subsection (a) shall be

made in accordance with the regulations prescribed under section 6804 of this title.

The disclosure required by subsection (a) shall

include—

(1) the policies and practices of the institution with respect to disclosing nonpublic personal information to nonaffiliated third parties, other than agents of the institution, consistent with section 6802 of this title, and including—

(A) the categories of persons to whom the

information is or may be disclosed, other

than the persons to whom the information

may be provided pursuant to section 6802(e)

of this title; and

(B) the policies and practices of the institution with respect to disclosing of nonpublic personal information of persons who

have ceased to be customers of the financial

institution;

(2) the categories of nonpublic personal information that are collected by the financial

institution;

(3) the policies that the institution maintains to protect the confidentiality and security of nonpublic personal information in accordance with section 6801 of this title; and

(4) the disclosures required, if any, under

section 1681a(d)(2)(A)(iii) of this title.

(d) Exemption for certified public accountants

(1) In general

The disclosure requirements of subsection

(a) do not apply to any person, to the extent

that the person is—

(A) a certified public accountant;

(B) certified or licensed for such purpose

by a State; and

regulation issued by a legislative or regulatory body of the State, including rules of

professional conduct or ethics, that prohibits disclosure of nonpublic personal information without the knowing and expressed

consent of the consumer.

(2) Limitation

Nothing in this subsection shall be construed to exempt or otherwise exclude any financial institution that is affiliated or becomes affiliated with a certified public accountant described in paragraph (1) from any

provision of this section.

(3) Definitions

For purposes of this subsection, the term

‘‘State’’ means any State or territory of the

United States, the District of Columbia, Puerto Rico, Guam, American Samoa, the Trust

Territory of the Pacific Islands, the Virgin Islands, or the Northern Mariana Islands.

(e) Model forms

(1) In general

The agencies referred to in section 6804(a)(1)

of this title shall jointly develop a model form

which may be used, at the option of the financial institution, for the provision of disclosures under this section.

(2) Format

A model form developed under paragraph (1)

shall—

(A) be comprehensible to consumers, with

a clear format and design;

(B) provide for clear and conspicuous disclosures;

sharing practices of a financial institution

and to compare privacy practices among financial institutions; and

(D) be succinct, and use an easily readable

type font.

(3) Timing

A model form required to be developed by

this subsection shall be issued in proposed

form for public comment not later than 180

days after October 13, 2006.

(4) Safe harbor

Any financial institution that elects to provide the model form developed by the agencies

under this subsection shall be deemed to be in

compliance with the disclosures required

under this section.

(f) Exception to annual notice requirement

A financial institution that—

(1) provides nonpublic personal information

only in accordance with the provisions of subsection (b)(2) or (e) of section 6802 of this title

or regulations prescribed under section 6804(b)

of this title, and

(2) has not changed its policies and practices

with regard to disclosing nonpublic personal

information from the policies and practices

that were disclosed in the most recent disclosure sent to consumers in accordance with this

section,

shall not be required to provide an annual disclosure under this section until such time as the

financial institution fails to comply with any

criteria described in paragraph (1) or (2).

(Pub. L. 106–102, title V, § 503, Nov. 12, 1999, 113

Stat. 1439; Pub. L. 109–351, title VI, § 609, title

VII, § 728, Oct. 13, 2006, 120 Stat. 1983, 2003; Pub.

L. 114–94, div. G, title LXXV, § 75001, Dec. 4, 2015,

129 Stat. 1787.)

Editorial Notes

AMENDMENTS

2015—Subsec. (f). Pub. L. 114–94 added subsec. (f).

2006—Pub. L. 109–351 designated concluding provisions

of subsec. (a) as (b), inserted heading, substituted ‘‘Disclosures required by subsection (a)’’ for ‘‘Such disclosures’’, redesignated former subsec. (b) as (c), and added

subsecs. (d) and (e).

Executive Documents

TERMINATION OF TRUST TERRITORY OF THE PACIFIC

ISLANDS

For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title

48, Territories and Insular Possessions.

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§ 6804

TITLE 15—COMMERCE AND TRADE

§ 6804. Rulemaking

(a) Regulatory authority

(1) Rulemaking

(A) In general

Except as provided in subparagraph (C),

the Bureau of Consumer Financial Protection and the Securities and Exchange Commission shall have authority to prescribe

such regulations as may be necessary to

carry out the purposes of this subchapter

with respect to financial institutions and

other persons subject to their respective jurisdiction under section 6805 of this title

(and notwithstanding subtitle B of the Consumer Financial Protection Act of 2010 [12

U.S.C. 5511 et seq.]), except that the Bureau

of Consumer Financial Protection shall not

have authority to prescribe regulations with

respect to the standards under section 6801

of this title.

(B) CFTC

The Commodity Futures Trading Commission shall have authority to prescribe such

regulations as may be necessary to carry out

the purposes of this subchapter with respect

to financial institutions and other persons

subject to the jurisdiction of the Commodity

Futures Trading Commission under section

7b–2 of title 7.

Notwithstanding the authority of the Bureau of Consumer Financial Protection

under subparagraph (A), the Federal Trade

Commission shall have authority to prescribe such regulations as may be necessary

to carry out the purposes of this subchapter

with respect to any financial institution

that is a person described in section 1029(a)

of the Consumer Financial Protection Act of

2010 [12 U.S.C. 5519(a)].

(D) Rule of construction

Nothing in this paragraph shall be construed to alter, affect, or otherwise limit the

authority of a State insurance authority to

adopt regulations to carry out this subchapter.

(2) Coordination, consistency, and comparability

Each of the agencies authorized under paragraph (1) to prescribe regulations shall consult

and coordinate with the other such agencies

and, as appropriate, and with 1 representatives

of State insurance authorities designated by

the National Association of Insurance Commissioners, for the purpose of assuring, to the

extent possible, that the regulations prescribed by each such agency are consistent and

comparable with the regulations prescribed by

the other such agencies.

(3) Procedures and deadline

Such regulations shall be prescribed in accordance with applicable requirements of title

1 So in original. Probably should be ‘‘and, as appropriate,

with’’.

Page 2232

(b) Authority to grant exceptions

The regulations prescribed under subsection

(a) may include such additional exceptions to

subsections (a) through (d) of section 6802 of this

title as are deemed consistent with the purposes

of this subchapter.

(Pub. L. 106–102, title V, § 504, Nov. 12, 1999, 113

Stat. 1439; Pub. L. 111–203, title X, § 1093(3), July

21, 2010, 124 Stat. 2095.)

Editorial Notes

REFERENCES IN TEXT

This subchapter, referred to in subsecs. (a)(1) and (b),

was in the original ‘‘this subtitle’’, meaning subtitle A

(§§ 501–510) of title V of Pub. L. 106–102, Nov. 12, 1999, 113

Stat. 1436, which is classified principally to this subchapter. For complete classification of subtitle A to

the Code, see Tables.

The Consumer Financial Protection Act of 2010, referred to in subsec. (a)(1)(A), is title X of Pub. L.

111–203, July 21, 2010, 124 Stat. 1955. Subtitle B

(§§ 1021–1029A) of the Act is classified generally to part

B (§ 5511 et seq.) of subchapter V of chapter 53 of Title

12, Banks and Banking. For complete classification of

subtitle B to the Code, see Tables.

AMENDMENTS

2010—Subsec. (a)(1), (2). Pub. L. 111–203, § 1093(3)(A),

added pars. (1) and (2) and struck out former pars. (1)

and (2) which related, respectively, to rulemaking by

the Federal banking agencies, the National Credit

Union Administration, the Secretary of the Treasury,

the Securities and Exchange Commission, and the Federal Trade Commission, and consultation and coordination among these agencies and authorities to assure

consistency and comparability of regulations.

Subsec. (a)(3). Pub. L. 111–203, § 1093(3)(B), struck out

‘‘and shall be issued in final form not later than 6

months after November 12, 1999’’ after ‘‘title 5’’.

Statutory Notes and Related Subsidiaries

EFFECTIVE DATE OF 2010 AMENDMENT

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.

111–203, set out as a note under section 552a of Title 5,

Government Organization and Employees.

§ 6805. Enforcement

(a) In general

Subject to subtitle B of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5511 et

seq.], this subchapter and the regulations prescribed thereunder shall be enforced by the Bureau of Consumer Financial Protection, the Federal functional regulators, the State insurance

authorities, and the Federal Trade Commission

with respect to financial institutions and other

persons subject to their jurisdiction under applicable law, as follows:

(1) Under section 1818 of title 12, by the appropriate Federal banking agency, as defined

in section 1813(q) of title 12, in the case of—

(A) national banks, Federal branches and

Federal agencies of foreign banks, and any

subsidiaries of such entities (except brokers,

dealers, persons providing insurance, investment companies, and investment advisers);

(B) member banks of the Federal Reserve

System (other than national banks),

branches and agencies of foreign banks

(other than Federal branches, Federal agen-

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TITLE 15—COMMERCE AND TRADE

cies, and insured State branches of foreign

banks), commercial lending companies

owned or controlled by foreign banks, organizations operating under section 25 or 25A

of the Federal Reserve Act [12 U.S.C. 601 et

seq., 611 et seq.], and bank holding companies and their nonbank subsidiaries or affiliates (except brokers, dealers, persons providing insurance, investment companies, and

investment advisers);

Insurance Corporation (other than members

of the Federal Reserve System), insured

State branches of foreign banks, and any

subsidiaries of such entities (except brokers,

dealers, persons providing insurance, investment companies, and investment advisers);

and

(D) savings associations the deposits of

which are insured by the Federal Deposit Insurance Corporation, and any subsidiaries of

such savings associations (except brokers,

dealers, persons providing insurance, investment companies, and investment advisers).

(2) Under the Federal Credit Union Act [12

U.S.C. 1751 et seq.], by the Board of the National Credit Union Administration with respect to any federally insured credit union,

and any subsidiaries of such an entity.

(3) Under the Securities Exchange Act of 1934

[15 U.S.C. 78a et seq.], by the Securities and

Exchange Commission with respect to any

broker or dealer.

(4) Under the Investment Company Act of

1940 [15 U.S.C. 80a–1 et seq.], by the Securities

and Exchange Commission with respect to investment companies.

(5) Under the Investment Advisers Act of

1940 [15 U.S.C. 80b–1 et seq.], by the Securities

and Exchange Commission with respect to investment advisers registered with the Commission under such Act.

(6) Under State insurance law, in the case of

any person engaged in providing insurance, by

the applicable State insurance authority of

the State in which the person is domiciled,

subject to section 6701 of this title.

(7) Under the Federal Trade Commission Act

[15 U.S.C. 41 et seq.], by the Federal Trade

Commission for any other financial institution or other person that is not subject to the

jurisdiction of any agency or authority under

paragraphs (1) through (6) of this subsection.

(8) Under subtitle E of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5561 et

seq.], by the Bureau of Consumer Financial

Protection, in the case of any financial institution and other covered person or service provider that is subject to the jurisdiction of the

Bureau and any person subject to this subchapter, but not with respect to the standards

under section 6801 of this title.

(b) Enforcement of section 6801

(1) In general

Except as provided in paragraph (2), the

agencies and authorities described in subsection (a), other than the Bureau of Consumer Financial Protection, shall implement

the standards prescribed under section 6801(b)

of this title in the same manner, to the extent

§ 6805

practicable, as standards prescribed pursuant

to section 1831p–1(a) of title 12 are implemented pursuant to such section.

(2) Exception

The agencies and authorities described in

paragraphs (3), (4), (5), (6), and (7) of subsection

(a) shall implement the standards prescribed

under section 6801(b) of this title by rule with

respect to the financial institutions and other

persons subject to their respective jurisdictions under subsection (a).

If a State insurance authority fails to adopt

regulations to carry out this subchapter, such

State shall not be eligible to override, pursuant

to section 1831x(g)(2)(B)(iii) of title 12, the insurance customer protection regulations prescribed

by a Federal banking agency under section

1831x(a) of title 12.

(d) Definitions

The terms used in subsection (a)(1) that are

not defined in this subchapter or otherwise defined in section 1813(s) of title 12 shall have the

same meaning as given in section 3101 of title 12.

(Pub. L. 106–102, title V, § 505, Nov. 12, 1999, 113

Stat. 1440; Pub. L. 111–203, title X, § 1093(4), (5),

July 21, 2010, 124 Stat. 2096, 2097.)

Editorial Notes

REFERENCES IN TEXT

The Consumer Financial Protection Act of 2010, referred to in subsec. (a), is title X of Pub. L. 111–203, July

21, 2010, 124 Stat. 1955. Subtitles B (§§ 1021–1029A) and E

(§§ 1051–1058) of the Act are classified generally to parts

B (§ 5511 et seq.) and E (§ 5561 et seq.), respectively, of

subchapter V of chapter 53 of Title 12, Banks and Banking. For complete classification of subtitles B and E to

the Code, see Tables.

This subchapter, referred to in subsecs. (a), (c), and

(d), was in the original ‘‘this subtitle’’, meaning subtitle A (§§ 501–510) of title V of Pub. L. 106–102, Nov. 12,

1999, 113 Stat. 1436, which is classified principally to

this subchapter. For complete classification of subtitle

A to the Code, see Tables.

Section 25 of the Federal Reserve Act, referred to in

subsec. (a)(1)(B), is classified to subchapter I (§ 601 et

seq.) of chapter 6 of Title 12, Banks and Banking. Section 25A of the Federal Reserve Act is classified to subchapter II (§ 611 et seq.) of chapter 6 of Title 12.

The Federal Credit Union Act, referred to in subsec.

(a)(2), is act June 26, 1934, ch. 750, 48 Stat. 1216, which

is classified generally to chapter 14 (§ 1751 et seq.) of

Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1751 of Title 12

and Tables.

The Securities Exchange Act of 1934, referred to in

subsec. (a)(3), is act June 6, 1934, ch. 404, 48 Stat. 881,

which is classified principally to chapter 2B (§ 78a et

seq.) of this title. For complete classification of this

Act to the Code, see section 78a of this title and Tables.

The Investment Company Act of 1940, referred to in

subsec. (a)(4), is title I of act Aug. 22, 1940, ch. 686, 54

Stat. 789, which is classified generally to subchapter I

(§ 80a–1 et seq.) of chapter 2D of this title. For complete

classification of this Act to the Code, see section 80a–51

of this title and Tables.

The Investment Advisers Act of 1940, referred to in

subsec. (a)(5), is title II of act Aug. 22, 1940, ch. 686, 54

Stat. 847, which is classified generally to subchapter II

(§ 80b–1 et seq.) of chapter 2D of this title. For complete

classification of this Act to the Code, see section 80b–20

of this title and Tables.

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§ 6806

TITLE 15—COMMERCE AND TRADE

The Federal Trade Commission Act, referred to in

subsec. (a)(7), is act Sept. 26, 1914, ch. 311, 38 Stat. 717,

which is classified generally to subchapter I (§ 41 et

seq.) of chapter 2 of this title. For complete classification of this Act to the Code, see section 58 of this title

and Tables.

AMENDMENTS

2010—Subsec. (a). Pub. L. 111–203, § 1093(4)(A), substituted ‘‘Subject to subtitle B of the Consumer Financial Protection Act of 2010, this subchapter and the regulations prescribed thereunder shall be enforced by the

Bureau of Consumer Financial Protection, the Federal

functional regulators, the State insurance authorities,

and the Federal Trade Commission with respect to financial institutions and other persons subject to their

jurisdiction under applicable law, as follows:’’ for ‘‘This

subchapter and the regulations prescribed thereunder

shall be enforced by the Federal functional regulators,

the State insurance authorities, and the Federal Trade

Commission with respect to financial institutions and

other persons subject to their jurisdiction under applicable law, as follows:’’.

Subsec. (a)(1). Pub. L. 111–203, § 1093(4)(B)(i), inserted

‘‘by the appropriate Federal banking agency, as defined

in section 1813(q) of title 12,’’ before ‘‘in the case of—’’.

Subsec. (a)(1)(A). Pub. L. 111–203, § 1093(4)(B)(ii),

struck out ‘‘, by the Office of the Comptroller of the

Currency’’ before semicolon at end.

Subsec. (a)(1)(B). Pub. L. 111–203, § 1093(4)(B)(iii),

struck out ‘‘, by the Board of Governors of the Federal

Reserve System’’ before semicolon at end.

Subsec. (a)(1)(C). Pub. L. 111–203, § 1093(4)(B)(iv),

struck out ‘‘, by the Board of Directors of the Federal

Deposit Insurance Corporation’’ before ‘‘; and’’.

Subsec. (a)(1)(D). Pub. L. 111–203, § 1093(4)(B)(v),

struck out ‘‘, by the Director of the Office of Thrift Supervision’’ before period at end.

Subsec. (a)(8). Pub. L. 111–203, § 1093(4)(C), added par.

(8).

Subsec. (b)(1). Pub. L. 111–203, § 1093(5), inserted

‘‘, other than the Bureau of Consumer Financial Protection,’’ before ‘‘shall implement the standards’’.

Page 2234

complete classification of title V to the Code, see Tables.

The Fair Credit Reporting Act, referred to in text, is

title VI of Pub. L. 90–321, as added by Pub. L. 91–508,

title VI, § 601, Oct. 26, 1970, 84 Stat. 1127, as amended,

which is classified generally to subchapter III (§ 1681 et

seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see Short Title note set

out under section 1601 of this title and Tables.

§ 6807. Relation to State laws

(a) In general

This subchapter and the amendments made by

this subchapter shall not be construed as superseding, altering, or affecting any statute, regulation, order, or interpretation in effect in any

State, except to the extent that such statute,

regulation, order, or interpretation is inconsistent with the provisions of this subchapter,

and then only to the extent of the inconsistency.

(b) Greater protection under State law

For purposes of this section, a State statute,

regulation, order, or interpretation is not inconsistent with the provisions of this subchapter if

the protection such statute, regulation, order,

or interpretation affords any person is greater

than the protection provided under this subchapter and the amendments made by this subchapter, as determined by the Bureau of Consumer Financial Protection, after consultation

with the agency or authority with jurisdiction

under section 6805(a) of this title of either the

person that initiated the complaint or that is

the subject of the complaint, on its own motion

or upon the petition of any interested party.

(Pub. L. 106–102, title V, § 507, Nov. 12, 1999, 113

Stat. 1442; Pub. L. 111–203, title X, § 1093(6), July

21, 2010, 124 Stat. 2097.)

Statutory Notes and Related Subsidiaries

Editorial Notes

EFFECTIVE DATE OF 2010 AMENDMENT

REFERENCES IN TEXT

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.

111–203, set out as a note under section 552a of Title 5,

Government Organization and Employees.

This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle A (§§ 501–510) of

title V of Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1436,

which is classified principally to this subchapter. For

complete classification of subtitle A to the Code, see

Tables.

§ 6806. Relation to other provisions

Except for the amendments made by subsections (a) and (b), nothing in this chapter shall

be construed to modify, limit, or supersede the

operation of the Fair Credit Reporting Act [15

U.S.C. 1681 et seq.], and no inference shall be

drawn on the basis of the provisions of this

chapter regarding whether information is transaction or experience information under section

603 of such Act [15 U.S.C. 1681a].

(Pub. L. 106–102, title V, § 506(c), Nov. 12, 1999, 113

Stat. 1442.)

Editorial Notes

AMENDMENTS

2010—Subsec. (b). Pub. L. 111–203 substituted ‘‘Bureau

of Consumer Financial Protection’’ for ‘‘Federal Trade

Commission’’.

Statutory Notes and Related Subsidiaries

EFFECTIVE DATE OF 2010 AMENDMENT

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.

111–203, set out as a note under section 552a of Title 5,

Government Organization and Employees.

REFERENCES IN TEXT

§ 6808. Study of information sharing among financial affiliates

Amendments made by subsections (a) and (b), referred to in text, means amendments made by section

506(a) and (b) of Pub. L. 106–102, which amended section

1681s of this title.

This chapter, referred to in text, was in the original

‘‘this title’’, meaning title V of Pub. L. 106–102, Nov. 12,

1999, 113 Stat. 1436, as amended, which enacted this

chapter and amended section 1681s of this title. For

(a) In general

The Secretary of the Treasury, in conjunction

with the Federal functional regulators and the

Federal Trade Commission, shall conduct a

study of information sharing practices among financial institutions and their affiliates. Such

study shall include—

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TITLE 15—COMMERCE AND TRADE

(1) the purposes for the sharing of confidential customer information with affiliates or

with nonaffiliated third parties;

(2) the extent and adequacy of security protections for such information;

(3) the potential risks for customer privacy

of such sharing of information;

(4) the potential benefits for financial institutions and affiliates of such sharing of information;

(5) the potential benefits for customers of

such sharing of information;

(6) the adequacy of existing laws to protect

customer privacy;

(7) the adequacy of financial institution privacy policy and privacy rights disclosure

under existing law;

(8) the feasibility of different approaches, including opt-out and opt-in, to permit customers to direct that confidential information

not be shared with affiliates and nonaffiliated

third parties; and

(9) the feasibility of restricting sharing of

information for specific uses or of permitting

customers to direct the uses for which information may be shared.

(b) Consultation

The Secretary shall consult with representatives of State insurance authorities designated

by the National Association of Insurance Commissioners, and also with financial services industry, consumer organizations and privacy

groups, and other representatives of the general

public, in formulating and conducting the study

required by subsection (a).

On or before January 1, 2002, the Secretary

shall submit a report to the Congress containing

the findings and conclusions of the study required under subsection (a), together with such

recommendations for legislative or administrative action as may be appropriate.

(Pub. L. 106–102, title V, § 508, Nov. 12, 1999, 113

Stat. 1442.)

§ 6809. Definitions

As used in this subchapter:

(1) Federal banking agency

The term ‘‘Federal banking agency’’ has the

same meaning as given in section 1813 of title

12.

(2) Federal functional regulator

The term ‘‘Federal functional regulator’’

means—

(A) the Board of Governors of the Federal

Reserve System;

(B) the Office of the Comptroller of the

Currency;

Deposit Insurance Corporation;

(D) the Director of the Office of Thrift Supervision;

(E) the National Credit Union Administration Board; and

(F) the Securities and Exchange Commission.

(3) Financial institution

(A) In general

The term ‘‘financial institution’’ means

any institution the business of which is en-

§ 6809

gaging in financial activities as described in

section 1843(k) of title 12.

(B) Persons subject to CFTC regulation

Notwithstanding subparagraph (A), the

term ‘‘financial institution’’ does not include any person or entity with respect to

any financial activity that is subject to the

jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act [7 U.S.C. 1 et seq.].

Notwithstanding subparagraph (A), the

term ‘‘financial institution’’ does not include the Federal Agricultural Mortgage

Corporation or any entity chartered and operating under the Farm Credit Act of 1971 [12

U.S.C. 2001 et seq.].

(D) Other secondary market institutions

Notwithstanding subparagraph (A), the

term ‘‘financial institution’’ does not include institutions chartered by Congress

specifically to engage in transactions described in section 6802(e)(1)(C) of this title,

as long as such institutions do not sell or

transfer nonpublic personal information to a

nonaffiliated third party.

(4) Nonpublic personal information

(A) The term ‘‘nonpublic personal information’’ means personally identifiable financial

information—

(i) provided by a consumer to a financial

institution;

(ii) resulting from any transaction with

the consumer or any service performed for

the consumer; or

(iii) otherwise obtained by the financial institution.

(B) Such term does not include publicly

available information, as such term is defined

by the regulations prescribed under section

6804 of this title.

term—

(i) shall include any list, description, or

other grouping of consumers (and publicly

available information pertaining to them)

that is derived using any nonpublic personal

information other than publicly available

information; but

(ii) shall not include any list, description,

or other grouping of consumers (and publicly

available information pertaining to them)

that is derived without using any nonpublic

personal information.

(5) Nonaffiliated third party

The term ‘‘nonaffiliated third party’’ means

any entity that is not an affiliate of, or related by common ownership or affiliated by

corporate control with, the financial institution, but does not include a joint employee of

such institution.

(6) Affiliate

The term ‘‘affiliate’’ means any company

that controls, is controlled by, or is under

common control with another company.

(7) Necessary to effect, administer, or enforce

The term ‘‘as necessary to effect, administer, or enforce the transaction’’ means—

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§ 6821

TITLE 15—COMMERCE AND TRADE

(A) the disclosure is required, or is a usual,

appropriate, or acceptable method, to carry

out the transaction or the product or service

business of which the transaction is a part,

and record or service or maintain the consumer’s account in the ordinary course of

providing the financial service or financial

product, or to administer or service benefits

or claims relating to the transaction or the

product or service business of which it is a

part, and includes—

(i) providing the consumer or the consumer’s agent or broker with a confirmation, statement, or other record of the

transaction, or information on the status

or value of the financial service or financial product; and

(ii) the accrual or recognition of incentives or bonuses associated with the transaction that are provided by the financial

institution or any other party;

(B) the disclosure is required, or is one of

the lawful or appropriate methods, to enforce the rights of the financial institution

or of other persons engaged in carrying out

the financial transaction, or providing the

product or service;

appropriate, or acceptable method, for insurance underwriting at the consumer’s request

or for reinsurance purposes, or for any of the

following purposes as they relate to a consumer’s insurance: Account administration,

reporting, investigating, or preventing fraud

or material misrepresentation, processing

premium payments, processing insurance

claims, administering insurance benefits (including utilization review activities), participating in research projects, or as otherwise required or specifically permitted by

Federal or State law; or

(D) the disclosure is required, or is a usual,

appropriate or acceptable method, in connection with—

(i) the authorization, settlement, billing,

processing, clearing, transferring, reconciling, or collection of amounts charged,

debited, or otherwise paid using a debit,

credit or other payment card, check, or account number, or by other payment

means;

(ii) the transfer of receivables, accounts

or interests therein; or

(iii) the audit of debit, credit or other

payment information.

(8) State insurance authority

The term ‘‘State insurance authority’’

means, in the case of any person engaged in

providing insurance, the State insurance authority of the State in which the person is

domiciled.

(9) Consumer

The term ‘‘consumer’’ means an individual

who obtains, from a financial institution, financial products or services which are to be

used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.

Page 2236

(10) Joint agreement

The term ‘‘joint agreement’’ means a formal

written contract pursuant to which two or

more financial institutions jointly offer, endorse, or sponsor a financial product or service, and as may be further defined in the regulations prescribed under section 6804 of this

title.

(11) Customer relationship

The term ‘‘time of establishing a customer

relationship’’ shall be defined by the regulations prescribed under section 6804 of this

title, and shall, in the case of a financial institution engaged in extending credit directly to

consumers to finance purchases of goods or

services, mean the time of establishing the

credit relationship with the consumer.

(Pub. L. 106–102, title V, § 509, Nov. 12, 1999, 113

Stat. 1443.)

Editorial Notes

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle A (§§ 501–510) of

title V of Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1436,

which is classified principally to this subchapter. For

complete classification of subtitle A to the Code, see

Tables.

The Commodity Exchange Act, referred to in par.

(3)(B), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as

amended, which is classified generally to chapter 1 (§ 1

et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and

Tables.

The Farm Credit Act of 1971, referred to in par. (3)(C),

is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, as amended,

which is classified generally to chapter 23 (§ 2001 et seq.)

of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note

set out under section 2001 of Title 12 and Tables.

SUBCHAPTER II—FRAUDULENT ACCESS TO

FINANCIAL INFORMATION

§ 6821. Privacy protection for customer information of financial institutions

(a) Prohibition on obtaining customer information by false pretenses

It shall be a violation of this subchapter for

any person to obtain or attempt to obtain, or

cause to be disclosed or attempt to cause to be

disclosed to any person, customer information

of a financial institution relating to another

person—

(1) by making a false, fictitious, or fraudulent statement or representation to an officer,

employee, or agent of a financial institution;

(2) by making a false, fictitious, or fraudulent statement or representation to a customer of a financial institution; or

(3) by providing any document to an officer,

employee, or agent of a financial institution,

knowing that the document is forged, counterfeit, lost, or stolen, was fraudulently obtained,

or contains a false, fictitious, or fraudulent

statement or representation.

(b) Prohibition on solicitation of a person to obtain customer information from financial institution under false pretenses

It shall be a violation of this subchapter to request a person to obtain customer information

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TITLE 15—COMMERCE AND TRADE

of a financial institution, knowing that the person will obtain, or attempt to obtain, the information from the institution in any manner described in subsection (a).

No provision of this section shall be construed

so as to prevent any action by a law enforcement agency, or any officer, employee, or agent

of such agency, to obtain customer information

of a financial institution in connection with the

performance of the official duties of the agency.

(d) Nonapplicability to financial institutions in

certain cases

No provision of this section shall be construed

so as to prevent any financial institution, or any

officer, employee, or agent of a financial institution, from obtaining customer information of

such financial institution in the course of—

(1) testing the security procedures or systems of such institution for maintaining the

confidentiality of customer information;

(2) investigating allegations of misconduct

or negligence on the part of any officer, employee, or agent of the financial institution; or

(3) recovering customer information of the

financial institution which was obtained or received by another person in any manner described in subsection (a) or (b).

(e) Nonapplicability to insurance institutions for

investigation of insurance fraud

No provision of this section shall be construed

so as to prevent any insurance institution, or

any officer, employee, or agency of an insurance

institution, from obtaining information as part

of an insurance investigation into criminal activity, fraud, material misrepresentation, or

material nondisclosure that is authorized for

such institution under State law, regulation, interpretation, or order.

(f) Nonapplicability to certain types of customer

information of financial institutions

No provision of this section shall be construed

so as to prevent any person from obtaining customer information of a financial institution

that otherwise is available as a public record

filed pursuant to the securities laws (as defined

in section 78c(a)(47) of this title).

(g) Nonapplicability to collection of child support judgments

No provision of this section shall be construed

to prevent any State-licensed private investigator, or any officer, employee, or agent of such

private investigator, from obtaining customer

information of a financial institution, to the extent reasonably necessary to collect child support from a person adjudged to have been delinquent in his or her obligations by a Federal or

State court, and to the extent that such action

by a State-licensed private investigator is not

unlawful under any other Federal or State law

or regulation, and has been authorized by an

order or judgment of a court of competent jurisdiction.

(Pub. L. 106–102, title V, § 521, Nov. 12, 1999, 113

Stat. 1446.)

§ 6822

§ 6822. Administrative enforcement

(a) Enforcement by Federal Trade Commission

Except as provided in subsection (b), compliance with this subchapter shall be enforced by

the Federal Trade Commission in the same manner and with the same power and authority as

the Commission has under the Fair Debt Collection Practices Act [15 U.S.C. 1692 et seq.] to enforce compliance with such Act.

(b) Enforcement by other agencies in certain

cases

(1) In general

Compliance with this subchapter shall be enforced under—

(A) section 8 of the Federal Deposit Insurance Act [12 U.S.C. 1818], in the case of—

(i) national banks, and Federal branches

and Federal agencies of foreign banks, by

the Office of the Comptroller of the Currency;

(ii) member banks of the Federal Reserve

System (other than national banks),

branches and agencies of foreign banks

(other than Federal branches, Federal

agencies, and insured State branches of

foreign banks), commercial lending companies owned or controlled by foreign

banks, and organizations operating under

section 25 or 25A of the Federal Reserve

Act [12 U.S.C. 601 et seq., 611 et seq.], by

the Board;

(iii) banks insured by the Federal Deposit Insurance Corporation (other than

members of the Federal Reserve System

and national nonmember banks) and insured State branches of foreign banks, by

the Board of Directors of the Federal Deposit Insurance Corporation; and

(iv) savings associations the deposits of

which are insured by the Federal Deposit

Insurance Corporation, by the Director of

the Office of Thrift Supervision; and

(B) the Federal Credit Union Act [12 U.S.C.

1751 et seq.], by the Administrator of the National Credit Union Administration with respect to any Federal credit union.

(2) Violations of this subchapter treated as violations of other laws

For the purpose of the exercise by any agency referred to in paragraph (1) of its powers

under any Act referred to in that paragraph, a

violation of this subchapter shall be deemed to

be a violation of a requirement imposed under

that Act. In addition to its powers under any

provision of law specifically referred to in

paragraph (1), each of the agencies referred to

in that paragraph may exercise, for the purpose of enforcing compliance with this subchapter, any other authority conferred on

such agency by law.

(Pub. L. 106–102, title V, § 522, Nov. 12, 1999, 113

Stat. 1447.)

Editorial Notes

REFERENCES IN TEXT

The Fair Debt Collection Practices Act, referred to in

subsec. (a), is title VIII of Pub. L. 90–321, as added by

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§ 6823

TITLE 15—COMMERCE AND TRADE

Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 874, as amended,

which is classified generally to subchapter V (§ 1692 et

seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see Short Title note set

out under section 1601 of this title and Tables.

Section 25 of the Federal Reserve Act, referred to in

subsec. (b)(1)(A)(ii), is classified to subchapter I (§ 601 et

seq.) of chapter 6 of Title 12, Banks and Banking. Section 25A of the Federal Reserve Act is classified to subchapter II (§ 611 et seq.) of chapter 6 of Title 12.

The Federal Credit Union Act, referred to in subsec.

(b)(1)(B), is act June 26, 1934, ch. 750, 48 Stat. 1216, as

amended, which is classified generally to chapter 14

(§ 1751 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section

1751 of Title 12 and Tables.

Statutory Notes and Related Subsidiaries

TRANSFER OF FUNCTIONS

Page 2238

§ 6825. Agency guidance

In furtherance of the objectives of this subchapter, each Federal banking agency (as defined in section 1813(z) of title 12), the National

Credit Union Administration, and the Securities

and Exchange Commission or self-regulatory organizations, as appropriate, shall review regulations and guidelines applicable to financial institutions under their respective jurisdictions

and shall prescribe such revisions to such regulations and guidelines as may be necessary to

ensure that such financial institutions have

policies, procedures, and controls in place to

prevent the unauthorized disclosure of customer

financial information and to deter and detect

activities proscribed under section 6821 of this

title.

Functions vested in Administrator of National Credit

Union Administration transferred and vested in National Credit Union Administration Board pursuant to

section 1752a of Title 12, Banks and Banking.

(Pub. L. 106–102, title V, § 525, Nov. 12, 1999, 113

Stat. 1448.)

§ 6823. Criminal penalty

(a) Report to the Congress

Before the end of the 18-month period beginning on November 12, 1999, the Comptroller General, in consultation with the Federal Trade

Commission, Federal banking agencies, the National Credit Union Administration, the Securities and Exchange Commission, appropriate Federal law enforcement agencies, and appropriate

State insurance regulators, shall submit to the

Congress a report on the following:

(1) The efficacy and adequacy of the remedies provided in this subchapter in addressing

attempts to obtain financial information by

fraudulent means or by false pretenses.

(2) Any recommendations for additional legislative or regulatory action to address

threats to the privacy of financial information

created by attempts to obtain information by

fraudulent means or false pretenses.

(a) In general

Whoever knowingly and intentionally violates, or knowingly and intentionally attempts

to violate, section 6821 of this title shall be fined

in accordance with title 18 or imprisoned for not

more than 5 years, or both.

(b) Enhanced penalty for aggravated cases

Whoever violates, or attempts to violate, section 6821 of this title while violating another

law of the United States or as part of a pattern

of any illegal activity involving more than

$100,000 in a 12-month period shall be fined twice

the amount provided in subsection (b)(3) or (c)(3)

(as the case may be) of section 3571 of title 18,

imprisoned for not more than 10 years, or both.

(Pub. L. 106–102, title V, § 523, Nov. 12, 1999, 113

Stat. 1448.)

§ 6824. Relation to State laws

(a) In general

This subchapter shall not be construed as superseding, altering, or affecting the statutes,

regulations, orders, or interpretations in effect

in any State, except to the extent that such

statutes, regulations, orders, or interpretations

are inconsistent with the provisions of this subchapter, and then only to the extent of the inconsistency.

(b) Greater protection under State law

For purposes of this section, a State statute,

regulation, order, or interpretation is not inconsistent with the provisions of this subchapter if

the protection such statute, regulation, order,

or interpretation affords any person is greater

than the protection provided under this subchapter as determined by the Federal Trade

Commission, after consultation with the agency

or authority with jurisdiction under section 6822

of this title of either the person that initiated

the complaint or that is the subject of the complaint, on its own motion or upon the petition of

any interested party.

(Pub. L. 106–102, title V, § 524, Nov. 12, 1999, 113

Stat. 1448.)

§ 6826. Reports

(b) Annual report by administering agencies

The Federal Trade Commission and the Attorney General shall submit to Congress an annual

report on number and disposition of all enforcement actions taken pursuant to this subchapter.

(Pub. L. 106–102, title V, § 526, Nov. 12, 1999, 113

Stat. 1448.)

§ 6827. Definitions

For purposes of this subchapter, the following

definitions shall apply:

(1) Customer

The term ‘‘customer’’ means, with respect to

a financial institution, any person (or authorized representative of a person) to whom the

financial institution provides a product or

service, including that of acting as a fiduciary.

(2) Customer information of a financial institution

The term ‘‘customer information of a financial institution’’ means any information maintained by or for a financial institution which

is derived from the relationship between the

financial institution and a customer of the financial institution and is identified with the

customer.

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Page 2239

TITLE 15—COMMERCE AND TRADE

(3) Document

The term ‘‘document’’ means any information in any form.

(4) Financial institution

(A) In general

The term ‘‘financial institution’’ means

any institution engaged in the business of

providing financial services to customers

who maintain a credit, deposit, trust, or

other financial account or relationship with

the institution.

(B) Certain financial institutions specifically

included

The term ‘‘financial institution’’ includes

any depository institution (as defined in section 461(b)(1)(A) of title 12), any broker or

dealer, any investment adviser or investment company, any insurance company, any

loan or finance company, any credit card

issuer or operator of a credit card system,

and any consumer reporting agency that

compiles and maintains files on consumers

on a nationwide basis (as defined in section

1681a(p) of this title).

For purposes of subparagraph (B)—

(i) the terms ‘‘broker’’ and ‘‘dealer’’ have

the same meanings as given in section 78c

of this title;

(ii) the term ‘‘investment adviser’’ has

the same meaning as given in section

80b–2(a)(11) of this title; and

(iii) the term ‘‘investment company’’ has

the same meaning as given in section 80a–3

of this title.

(D) Certain persons and entities specifically

excluded

The term ‘‘financial institution’’ does not

include any person or entity with respect to

any financial activity that is subject to the

jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act [7 U.S.C. 1 et seq.] and does not

include the Federal Agricultural Mortgage

Corporation or any entity chartered and operating under the Farm Credit Act of 1971 [12

U.S.C. 2001 et seq.].

(E) Further definition by regulation

The Federal Trade Commission, after consultation with Federal banking agencies and

the Securities and Exchange Commission,

may prescribe regulations clarifying or describing the types of institutions which shall

be treated as financial institutions for purposes of this subchapter.

(Pub. L. 106–102, title V, § 527, Nov. 12, 1999, 113

Stat. 1449.)

Editorial Notes

REFERENCES IN TEXT

The Commodity Exchange Act, referred to in par.

(4)(D), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as

amended, which is classified generally to chapter 1 (§ 1

et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and

Tables.

§ 6901

The Farm Credit Act of 1971, referred to in par. (4)(D),

is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, as amended,

which is classified generally to chapter 23 (§ 2001 et seq.)

of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note

set out under section 2001 of Title 12 and Tables.

CHAPTER

95—MICROENTERPRISE

TECHNICAL ASSISTANCE AND CAPACITY BUILDING PROGRAM

Sec.

6901.

6902.

6903.

6904.

6905.

6906.

6907.

6908.

6909.

6910.

Definitions.

Establishment of program.

Uses of assistance.

Qualified organizations.

Allocation of assistance; subgrants.

Matching requirements.

Applications for assistance.

Recordkeeping.

Authorization.

Implementation.

§ 6901. Definitions

For purposes of this chapter, the following

definitions shall apply:

(1) Administration

The term ‘‘Administration’’ means the

Small Business Administration.

(2) Administrator

The term ‘‘Administrator’’ means the Administrator of the Small Business Administration.

(3) Capacity building services

The term ‘‘capacity building services’’

means services provided to an organization

that is, or that is in the process of becoming,

a microenterprise development organization

or program, for the purpose of enhancing its

ability to provide training and services to disadvantaged entrepreneurs.

(4) Collaborative

The term ‘‘collaborative’’ means 2 or more

nonprofit entities that agree to act jointly as

a qualified organization under this chapter.

(5) Disadvantaged entrepreneur

The term ‘‘disadvantaged entrepreneur’’

means a microentrepreneur that is—

(A) a low-income person;

(B) a very low-income person; or

access to capital or other resources essential

for business success, or is economically disadvantaged, as determined by the Administrator.

(6) Indian tribe

The term ‘‘Indian tribe’’ has the meaning

given the term in section 4702 of title 12.

(7) Intermediary

The term ‘‘intermediary’’ means a private,

nonprofit entity that seeks to serve microenterprise development organizations and programs as authorized under section 6904 of this

title.

(8) Low-income person

The term ‘‘low-income person’’ has the

meaning given the term in section 4702 of title

12.

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UNITED STATES DISTRICT COURT

FOR CENTRAL DISTRICT OF CALIFORNIA

FEDERAL TRADE COMMISSION

Case No. 8:23-CV-0699-JWH

(ADSx)

Plaintiff,

BCO CONSULTING SERVICES, INC., et

al.,

Defendants.

[PROPOSED] STIPULATED

ORDER FOR PERMANENT

INJUNCTION, MONETARY

RELIEF, AND OTHER RELIEF

AS TO GIANNI OLILANG,

ALLAN RADAM, AND SLA

CONSULTING SERVICES INC.

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its

Complaint for Permanent Injunction, Monetary Relief, and Other Relief

(“Complaint”) pursuant to Sections 13(b) and 19 of the Federal Trade Commission

Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 57b, the Telemarketing and Consumer

Fraud and Abuse Prevention Act (“Telemarketing Act”), and Section 522(a) of the

Gramm-Leach-Bliley Act (“GLB Act”), 15 U.S.C. § 6822(a). The Commission

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and Defendants Gianni Olilang, Allan Radam, and SLA Consulting Services Inc.

(collectively, “Settling Defendants”) stipulate to the entry of the concurrently

lodged [Proposed] Stipulated Order for Permanent Injunction, Monetary Relief,

and Other Relief (“Order”) to resolve all matters in dispute in this action between

them.

THEREFORE, IT IS ORDERED as follows:

FINDINGS

This Court has jurisdiction over this matter.

The Complaint charges that Defendants participated in deceptive acts or

10 practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), the

11 Telemarketing Sales Rule (the “TSR”), 16 C.F.R. Part 310, and Section 521 of the

12 Gramm-Leach-Bliley Act (the “GLB Act”), 15 U.S.C. § 6821, in the deceptive

13 marketing and sale of student loan debt relief services.

Only for purposes of this action, Settling Defendants admit the facts

15 necessary to establish jurisdiction.

Defendants waive any claim that they may have under the Equal Access to

17 Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through

18 the date of this Order, and agree to bear their own costs and attorney fees.

Settling Defendants waive all rights to appeal or otherwise challenge or

20 contest the validity of this Order.

DEFINITIONS

For the purpose of this Order, the following definitions apply:

“Assisting Others” includes:

Performing customer service functions, including receiving or

25 responding to consumer complaints;

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Formulating or providing, or arranging for the formulation or

provision of, any advertising or marketing material, including any telephone sales

script, direct mail solicitation, or the design, text, or use of images of any Internet

website, email, or other electronic communication;

Formulating or providing, or arranging for the formulation or

provision of, any marketing support material or service, including web or Internet

Protocol addresses or domain name registration for any Internet websites, affiliate

marketing services, or media placement services;

Providing names of, or assisting in the generation of, potential

Performing marketing, billing, payment processing, or payment

10 customers;

12 services of any kind; or

Acting or serving as an owner, officer, director, manager, or

14 principal of any entity.

“Defendants” means the Individual Defendants and the Corporate

16 Defendants, individually, collectively, or in any combination.

“Corporate Defendant(s)” means BCO Consulting Services,

18 Inc. (“BCO”) and SLA Consulting Services Inc. (“SLA”), and each of their

19 subsidiaries, affiliates, successors, and assigns.

“Individual Defendant(s)” means Gianni Olilang, Brandon

21 Clores, Kishan Bhakta, and Allan Radam, individually, collectively, or in any

22 combination.

“Settling Defendants” means Gianni Olilang, Allan Radam,

24 and SLA (along with its subsidiaries, affiliates, successors, and assigns),

25 individually, collectively, or in any combination.

“Settling Individual Defendant(s)” means Gianni Olilang and

27 Allan Radam, individually, collectively, or in any combination.

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“Settling Corporate Defendant(s)” means SLA and each of its

subsidiaries, affiliates, successors, and assigns.

“Person” means a natural person, organization, or other legal entity,

including a corporation, partnership, proprietorship, association, cooperative, or

any other group or combination acting as an entity.

“Receiver” means Thomas W. McNamara.

“Receivership Entity(ies)” means the Settling Corporate Defendant,

as well as any other entity that has conducted any business related to Settling

Defendants’ student loan debt relief services business, including receipt of assets

10 derived from any activity that is the subject of the Complaint in this matter, and

11 which the Receiver has reason to believe is owned or controlled in whole or in part

12 by any Settling Defendant.

“Secured or Unsecured Debt Relief Product or Service” means:

With respect to any mortgage, loan, debt, or obligation between

15 a person and one or more secured or unsecured creditors or debt collectors, any

16 product, service, plan, or program represented, expressly or by implication, to:

stop, prevent, or postpone any mortgage or deed of

18 foreclosure sale for a person’s dwelling, any other sale of collateral, any

19 repossession of a person’s dwelling or other collateral, or otherwise save a person’s

20 dwelling or other collateral from foreclosure or repossession;

negotiate, obtain, or arrange a modification, or

22 renegotiate, settle, reduce, or in any way alter any terms of the mortgage, loan,

23 debt, or obligation, including a reduction in the amount of interest, principal

24 balance, monthly payments, or fees owed by a person to a secured or unsecured

25 creditor or debt collector;

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obtain any forbearance or modification in the timing of

payments from any secured or unsecured holder or servicer of any mortgage, loan,

debt, or obligation;

negotiate, obtain, or arrange any extension of the period

of time within which a person may (i) cure his or her default on the mortgage, loan,

debt, or obligation, (ii) reinstate his or her mortgage, loan, debt, or obligation, (iii)

redeem a dwelling or other collateral, or (iv) exercise any right to reinstate the

mortgage, loan, debt, or obligation or redeem a dwelling or other collateral;

obtain any waiver of an acceleration clause or balloon

10 payment contained in any promissory note or contract secured by any dwelling or

11 other collateral; or

negotiate, obtain, or arrange (i) a short sale of a dwelling

13 or other collateral, (ii) a deed-in-lieu of foreclosure, or (iii) any other disposition of

14 a mortgage, loan, debt, or obligation other than a sale to a third party that is not the

15 secured or unsecured loan holder.

16 The foregoing shall include any manner of claimed assistance, including auditing

17 or examining a person’s application for the mortgage, loan, debt, or obligation.

With respect to any loan, debt, or obligation between a person

19 and one or more unsecured creditors or debt collectors, any product, service, plan,

20 or program represented, expressly or by implication, to:

repay one or more unsecured loans, debts, or obligations;

or more new loans, debts, or obligations.

combine unsecured loans, debts, or obligations into one

“Telemarketing” means any plan, program, or campaign which is

26 conducted to induce the purchase of goods or services or a charitable contribution,

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