# Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 1 of 36 Page ID #:2639 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Aftc%3Aa2f8e2153b95b9c1 ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 1 of 36 Page ID #:2639 1 2 3 4 5 6 7 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) 8 13 Attorneys for Plaintiff 14 UNITED STATES DISTRICT COURT FOR CENTRAL DISTRICT OF CALIFORNIA 15 16 17 FEDERAL TRADE COMMISSION 18 Plaintiff, 19 v. 20 21 22 23 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. 24 25 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 28 Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 2 of 36 Page ID #:2640 1 Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 57b, the Telemarketing and Consumer 2 Fraud and Abuse Prevention Act (“Telemarketing Act”), and Section 522(a) of the 3 Gramm-Leach-Bliley Act (“GLB Act”), 15 U.S.C. § 6822(a). The Commission and 4 Defendants Gianni Olilang, Allan Radam, and SLA Consulting Services Inc. 5 (collectively, “Settling Defendants”) stipulate to the entry of the concurrently lodged 6 [Proposed] Stipulated Order for Permanent Injunction, Monetary Relief, and Other 7 Relief (“Order”) to resolve all matters in dispute in this action between them. 8 THEREFORE, IT IS ORDERED as follows: 9 FINDINGS 10 This Court has jurisdiction over this matter. 11 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. 16 Only for purposes of this action, Settling Defendants admit the facts 17 necessary to establish jurisdiction. 18 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. 21 Settling Defendants waive all rights to appeal or otherwise challenge or 22 contest the validity of this Order. 23 DEFINITIONS 24 For the purpose of this Order, the following definitions apply: 25 A. “Assisting Others” includes: 26 27 28 -2- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 3 of 36 Page ID #:2641 1. 1 2 Performing customer service functions, including receiving or responding to consumer complaints; 2. 3 Formulating or providing, or arranging for the formulation or 4 provision of, any advertising or marketing material, including any telephone sales 5 script, direct mail solicitation, or the design, text, or use of images of any Internet 6 website, email, or other electronic communication; 3. 7 Formulating or providing, or arranging for the formulation or 8 provision of, any marketing support material or service, including web or Internet 9 Protocol addresses or domain name registration for any Internet websites, affiliate 10 marketing services, or media placement services; 11 4. Providing names of, or assisting in the generation of, potential 5. Performing marketing, billing, payment processing, or payment 12 customers; 13 14 services of any kind; or 6. 15 Acting or serving as an owner, officer, director, manager, or 16 principal of any entity. 17 B. “Defendants” means the Individual Defendants and the Corporate 18 Defendants, individually, collectively, or in any combination. 19 1. “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. 22 2. “Individual Defendant(s)” means Gianni Olilang, Brandon 23 Clores, Kishan Bhakta, and Allan Radam, individually, collectively, or in any 24 combination. 25 3. “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. 28 -3- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 4 of 36 Page ID #:2642 4. 1 2 Allan Radam, individually, collectively, or in any combination. 5. 3 4 5 “Settling Individual Defendant(s)” means Gianni Olilang and “Settling Corporate Defendant(s)” means SLA and each of its subsidiaries, affiliates, successors, and assigns. C. “Person” means a natural person, organization, or other legal entity, 6 including a corporation, partnership, proprietorship, association, cooperative, or 7 any other group or combination acting as an entity. 8 D. “Receiver” means Thomas W. McNamara. 9 E. “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. 15 16 F. “Secured or Unsecured Debt Relief Product or Service” means: 1. 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: 19 a. 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; 23 b. 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; 28 -4- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 5 of 36 Page ID #:2643 c. 1 obtain any forbearance or modification in the timing of 2 payments from any secured or unsecured holder or servicer of any mortgage, loan, 3 debt, or obligation; d. 4 negotiate, obtain, or arrange any extension of the period 5 of time within which a person may (i) cure his or her default on the mortgage, loan, 6 debt, or obligation, (ii) reinstate his or her mortgage, loan, debt, or obligation, (iii) 7 redeem a dwelling or other collateral, or (iv) exercise any right to reinstate the 8 mortgage, loan, debt, or obligation or redeem a dwelling or other collateral; e. 9 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 f. 12 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. 2. 18 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: 21 a. 22 repay one or more unsecured loans, debts, or obligations; or 23 b. 24 or more new loans, debts, or obligations. 25 G. 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, 27 28 -5- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 6 of 36 Page ID #:2644 1 by use of one or more telephones, and which involves more than one interstate 2 telephone call. 3 ORDER I. BAN ON SECURED AND UNSECURED DEBT RELIEF PRODUCTS AND SERVICES 4 5 6 7 8 9 10 11 12 13 14 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 15 16 17 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: 24 A. 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 26 27 28 -6- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 7 of 36 Page ID #:2645 1 full or partial refund, or the circumstances in which a full or partial refund will be 2 granted to the consumer; 3 B. That any Person is affiliated with, endorsed or approved by, or 4 otherwise connected to any other Person; government entity; public, non-profit, or 5 other non-commercial program; or any other program; 6 7 8 9 C. The nature, expertise, position, or job title of any Person who provides any product, service, plan, or program; D. 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; 13 E. That a consumer will save money; or 14 F. 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. 17 18 19 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 28 -7- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 8 of 36 Page ID #:2646 1 Settling Defendant possesses and relies upon competent and reliable evidence that 2 is sufficient in quality and quantity based on standards generally accepted in 3 relevant fields, when considered in light of the entire body of relevant and reliable 4 evidence, to substantiate that the representation is true. 5 V. PROHIBITION AGAINST OBTAINING CUSTOMER INFORMATION BY FALSE PRETENSES 6 7 8 9 10 11 12 13 14 15 16 17 18 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: A. 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 B. 21 22 23 24 25 26 27 28 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 19 20 Obtaining, or attempting to obtain customer information of a IT IS FURTHER ORDERED that: A. 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. B. The monetary judgment set out in Section VI.A is enforceable against -8- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 9 of 36 Page ID #:2647 1 any asset, real or personal, whether located within the United States or outside the 2 United States, owned jointly or singly by, on behalf of, for the benefit of, in trust 3 by or for, or as a deposit for future goods or services to be provided to, any Settling 4 Defendant, whether held as tenants in common, joint tenants with or without the 5 right of survivorship, tenants by the entirety, and/or community property. 6 7 C. In partial satisfaction of the judgment against Settling Defendants: 1. Defendant Olilang shall, within 20 days after the date of entry 8 of this Order, either (a) transfer to the FTC or its designated agent cash in 9 the amount of $201,986 or (b) transfer to the Receiver title to the real 10 property located at 11 Olilang shall cooperate fully with the Receiver and shall execute any 12 instrument or document presented by the Receiver, and do whatever else the 13 Receiver deems necessary or desirable to effect such transfer. Upon such 14 transfer, the real property shall be an asset of the receivership estate, to be 15 governed by Section X of this Order. 16 2. , in which case Defendant Defendant Olilang shall, within 20 days after the date of entry 17 of this Order, either (a) transfer to the FTC or its designated agent cash in 18 the amount of $146,330 or (b) transfer to the Receiver title to the real 19 property located at 20 which case Defendant Olilang shall cooperate fully with the Receiver and 21 shall execute any instrument or document presented by the Receiver, and do 22 whatever else the Receiver deems necessary or desirable to effect such 23 transfer. Upon such transfer, the real property shall be an asset of the 24 receivership estate, to be governed by Section X of this Order. 25 26 3. , in In addition to the amounts set forth in Subsections VI.C.1-2, any financial or brokerage institution, payment processor, escrow agent, title 27 28 -9- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 10 of 36 Page ID #:2648 1 company, commodity trading company, business entity, or person, whether 2 located within the United States or outside the United States, that holds, 3 controls, or maintains accounts or assets of, on behalf of, or for the benefit 4 of, any Receivership Entity, whether real or personal, whether located within 5 the United States or outside the United States, shall, within ten (10) business 6 days from receipt of a copy of this Order, turn over such accounts or assets 7 to the Receiver or his designated agent. 8 4. In addition to the amounts set forth in Subsections VI.C.1-3, 9 any financial or brokerage institution, escrow agent, title company, 10 commodity trading company, business entity, or person, whether located 11 within the United States or outside the United States, that holds, controls, or 12 maintains accounts or assets of, on behalf of, or for the benefit of, any 13 Settling Individual Defendant, whether real or personal, whether located 14 within the United States or outside the United States, shall, within ten (10) 15 business days from receipt of a copy of this order, liquidate and turn over 16 such account or asset to the FTC or its designated agent, including, but not 17 limited to: 18 i. JPMorgan Chase Bank, N.A. (“Chase”) shall, within ten 19 (10) days of receipt of a copy of this Order, transfer to the FTC 20 or its designated agent all holdings in account number 21 xxxx6256 in the name of Gianni Olilang; 22 ii. Chase shall, within ten (10) days of receipt of a copy of 23 this Order, transfer to the FTC or its designated agent all 24 holdings in account number xxxx3771 in the name of Gianni 25 Olilang; 26 iii. Chase shall, within ten (10) days of receipt of a copy of 27 28 -10- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 11 of 36 Page ID #:2649 1 this Order, transfer to the FTC or its designated agent all 2 holdings in account number xxxx2074 in the name of Allan 3 Radam; 4 iv. J.P. Morgan Securities LLC (“JPMS”) shall, within ten 5 (10) days of receipt of a copy of this Order, transfer to the FTC 6 or its designated agent all holdings in account number 7 xxxx4001 in the name of Gianni Olilang; 8 v. Navy Federal Credit Union (“Navy Federal”) shall, 9 within ten (10) days of receipt of a copy of this Order, transfer 10 to the FTC or its designated agent all holdings in account 11 number xxxx0567 in the name of Gianni Olilang; 12 vi. Navy Federal shall, within ten (10) days of receipt of a 13 copy of this Order, transfer to the FTC or its designated agent 14 all holdings in account number xxxx3341 in the name of Gianni 15 Olilang; 16 vii. Charles Schwab Bank, SSB shall, within ten (10) days of 17 receipt of a copy of this Order, liquidate and transfer to the FTC 18 or its designated agent all holdings in account number 19 xxxx6226 in the name of Gianni Olilang; 20 viii. Charles Schwab & Co., Inc. shall, within ten (10) days of 21 receipt of a copy of this Order, liquidate and transfer to the FTC 22 or its designated agent all holdings in account number 23 xxxx9258 in the name of Gianni Olilang; 24 ix. TD AmeriTrade shall, within ten (10) days of receipt of a 25 copy of this Order, liquidate and transfer to the FTC or its 26 designated agent all holdings in account number xxxx3006 in 27 the name of Allan Radam; 28 -11- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 12 of 36 Page ID #:2650 1 x. Wellbull Financial LLC (“Wellbull”) shall, within 10 2 days of receipt of a copy of this Order, liquidate and transfer to 3 the FTC or its designated agent all holdings in account number 4 xxxx2042 in the name of Gianni Olilang; 5 xi. 6 xii. Wells Fargo Bank, N.A. shall, within 10 days of receipt 7 of a copy of this Order, transfer to the FTC or its designated 8 agent all holdings in account number xxxx8554 in the name of 9 Gianni Olilang; 10 xiii. Robinhood Markets, Inc. shall, within 10 days of receipt 11 of a copy of this Order, liquidate and transfer to the FTC or its 12 designated agent all holdings in account number xxxx8554 in 13 the name of Gianni Olilang; 14 xiv. Orange County’s Credit Union shall, within 10 days of 15 receipt of a copy of this Order, liquidate and transfer to the FTC 16 or its designated agent all holdings in account number 17 xxxx0040 in the name of Gianni Olilang. 18 D. 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. 21 E. 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. 24 25 26 27 28 -12- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 13 of 36 Page ID #:2651 1 F. The Commission’s agreement to the suspension of part of the 2 judgment is expressly premised upon the truthfulness, accuracy, and completeness 3 of Settling Defendants’ sworn financial statements and related documents 4 (collectively, “financial representations”) submitted to the Commission, namely: 1. 5 6 signed on May 15, 2023, including the attachments; 2. 7 8 the Financial Statement of Individual Defendant Gianni Olilang the Financial Statement of Individual Defendant Allan Radam signed on May 15, 2023, including the attachments; 3. 9 the Financial Statement of Corporate Defendant SLA 10 Consulting Services Inc. signed by Allan Radam, on May 15, 2023, including the 11 attachments; and 4. 12 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. 16 G. 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. 21 H. 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. 27 28 -13- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 14 of 36 Page ID #:2652 VII. ADDITIONAL MONETARY PROVISIONS 1 2 IT IS FURTHER ORDERED that: 3 A. Settling Defendants relinquish dominion and all legal and equitable 4 right, title, and interest in all assets transferred pursuant to this Order and may not 5 seek the return of any assets. 6 B. The facts alleged in the Complaint will be taken as true, without 7 further proof, in any subsequent civil litigation by or on behalf of the Commission, 8 including in a proceeding to enforce its rights to any payment or monetary 9 judgment pursuant to this Order, such as a nondischargeability complaint in any 10 bankruptcy case. 11 C. 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. 15 D. 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. 20 E. 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 27 28 -14- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 15 of 36 Page ID #:2653 1 determines to be reasonably related to Settling Defendants’ practices alleged in the 2 Complaint. Any money not used for relief is to be deposited to the U.S. Treasury. 3 Settling Defendants have no right to challenge any actions the Commission or its 4 representatives may take pursuant to this Subsection. 5 6 VIII. CUSTOMER INFORMATION IT IS FURTHER ORDERED that Settling Defendants, Settling Defendants’ 7 officers, agents, employees, attorneys, and all other Persons in active concert or 8 participation with any of them, who receive actual notice of this Order, are 9 permanently restrained and enjoined from directly or indirectly: 10 A. 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. 16 B. 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 23 C. 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. 26 27 28 -15- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 16 of 36 Page ID #:2654 1 Provided, however, that customer information need not be disposed of, and 2 may be disclosed, to the extent requested by a government agency or required by 3 law, regulation, or court order. 4 IX. COOPERATION 5 IT IS FURTHER ORDERED that Settling Defendants must fully cooperate 6 with representatives of the Commission in this case and in any investigation related 7 to or associated with the transactions or the occurrences that are the subject of the 8 Complaint. Settling Defendants must provide truthful and complete information, 9 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. 15 16 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. 25 26 27 28 -16- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 17 of 36 Page ID #:2655 XI. ORDER ACKNOWLEDGMENTS 1 2 3 4 IT IS FURTHER ORDERED that Settling Defendants obtain acknowledgments of receipt of this Order: A. Each Settling Defendant, within 7 days of entry of this Order, must 5 submit to the Commission an acknowledgment of receipt of this Order sworn 6 under penalty of perjury. 7 B. For 20 years after entry of this Order, each Settling Individual 8 Defendant for any business that such Settling Defendant, individually or 9 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. 19 C. 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. 22 XII. COMPLIANCE REPORTING 23 IT IS FURTHER ORDERED that Settling Defendants make timely 24 submissions to the Commission: 25 A. One year after entry of this Order, each Settling Defendant must 26 submit a compliance report, sworn under penalty of perjury: 27 28 -17- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 18 of 36 Page ID #:2656 1. 1 Each Settling Defendant must: (a) identify the primary 2 physical, postal, and email address and telephone number, as designated points of 3 contact, which representatives of the Commission may use to communicate with 4 Settling Defendant; (b) identify all of that Settling Defendant’s businesses by all of 5 their names, telephone numbers, and physical, postal, email, and Internet 6 addresses; (c) describe the activities of each business, including the goods and 7 services offered, the means of advertising, marketing, and sales, and the 8 involvement of any other Settling Defendant (which the Settling Individual 9 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. 2. 14 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. 22 B. 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: 25 1. Each Settling Defendant must report any change in: (a) any 26 designated point of contact; or (b) the structure of any Settling Corporate 27 28 -18- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 19 of 36 Page ID #:2657 1 Defendant or any entity that any Settling Defendant has any ownership interest in 2 or controls directly or indirectly that may affect compliance obligations arising 3 under this Order, including: creation, merger, sale, or dissolution of the entity or 4 any subsidiary, parent, or affiliate that engages in any acts or practices subject to 5 this Order. 2. 6 Additionally, each Settling Individual Defendant must report 7 any change in: (a) name, including aliases or fictitious name, or residence address; 8 or (b) title or role in any business activity, including any business for which such 9 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. 12 C. 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. 15 D. 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. 21 E. 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. 27 28 -19- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 20 of 36 Page ID #:2658 1 XIII. RECORDKEEPING 2 IT IS FURTHER ORDERED that Settling Defendants must create certain 3 records for 20 years after entry of the Order, and retain each such record for 5 4 years. Specifically, each Settling Defendant for any business that such Settling 5 Defendant, individually or collectively with any other Settling Defendants, is a 6 majority owner or controls directly or indirectly, must create and retain the 7 following records: 8 A. accounting records showing the revenues from all goods or services B. personnel records showing, for each Person providing services, 9 10 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; 14 C. records of all consumer complaints and refund requests, whether 15 received directly or indirectly, such as through a third party, and any response; 16 D. all records necessary to demonstrate full compliance with each 17 provision of this Order, including all submissions to the Commission; and 18 E. a copy of each unique advertisement or other marketing material. 19 XIV. COMPLIANCE MONITORING 20 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: 24 A. 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 27 28 -20- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 21 of 36 Page ID #:2659 1 perjury; appear for depositions; and produce documents for inspection and 2 copying. The Commission is also authorized to obtain discovery, without further 3 leave of court, using any of the procedures prescribed by Federal Rules of Civil 4 Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69. 5 B. For matters concerning this Order, the Commission is authorized to 6 communicate directly with each Settling Defendant. Settling Defendant must 7 permit representatives of the Commission to interview any employee or other 8 Person affiliated with any Settling Defendant who has agreed to such an interview. 9 The Person interviewed may have counsel present. 10 C. 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. 16 D. 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). 20 XV. RETENTION OF JURISDICTION 21 IT IS FURTHER ORDERED that this Court retains jurisdiction of this 22 matter for purposes of construction, modification, and enforcement of this Order. 23 24 So Stipulated. 25 [Rest of page left blank] 26 27 28 -21- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 22 of 36 Page ID #:2660 1 FOR SETTLING DEFENDANTS: 2 3 4 5 _________________________ Date: 8/9/2023 __________ GIANNI OLILANG, individually and as an officer of BCO CONSULTING SERVICES, INC. and SLA CONSULTING SERVICES INC. 6 7 8 _________________________ Date: __________ 8/9/2023 ALLAN RADAM, individually and as an officer of SLA CONSULTING SERVICES INC. 9 10 _________________________ 11 SLA CONSULTING SERVICES INC. BY: __________________________ Gianni Olilang 12 Date: 8/9/2023 __________ 13 _________________________ 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. 20 21 22 23 24 25 26 27 28 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: 2 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 3 4 5 6 7 8 9 ~ f i 1 10 11 Counsel for Plaintiff Federal Trade Commission 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -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. (c) Scope of application (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 (C) the consumer is given an explanation 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. (c) Limits on reuse of 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 (C) a proposed or actual securitization, 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. (c) Information to be included 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 (C) subject to any provision of law, rule, or 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; (C) enable consumers easily to identify the 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. Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 29 of 36 Page ID #:2667 § 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. (C) Federal Trade Commission authority 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 5. 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- Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 30 of 36 Page ID #:2668 Page 2233 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); (C) banks insured by the Federal Deposit 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). (c) Absence of State action 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. Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 31 of 36 Page ID #:2669 § 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— Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 32 of 36 Page ID #:2670 Page 2235 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). (c) Report 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; (C) the Board of Directors of the Federal 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.]. (C) Farm credit institutions 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. (C) Notwithstanding subparagraph (B), such 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— Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 33 of 36 Page ID #:2671 § 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; (C) the disclosure is required, or is a usual, 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 Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 34 of 36 Page ID #:2672 Page 2237 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). (c) Nonapplicability to law enforcement agencies 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 Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 35 of 36 Page ID #:2673 § 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. Case 8:23-cv-00699-JWH-ADS Document 67 Filed 10/05/23 Page 36 of 36 Page ID #:2674 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). (C) Securities institutions 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 (C) an entrepreneur that lacks adequate 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. Case 8:23-cv-00699-JWH-ADS Document 67-1 Filed 10/05/23 Page 1 of 34 Page ID #:2675 1 2 3 4 5 6 7 8 9 10 11 12 UNITED STATES DISTRICT COURT FOR CENTRAL DISTRICT OF CALIFORNIA 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 FEDERAL TRADE COMMISSION Case No. 8:23-CV-0699-JWH (ADSx) Plaintiff, v. 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 -1- Case 8:23-cv-00699-JWH-ADS Document 67-1 Filed 10/05/23 Page 2 of 34 Page ID #:2676 1 and Defendants Gianni Olilang, Allan Radam, and SLA Consulting Services Inc. 2 (collectively, “Settling Defendants”) stipulate to the entry of the concurrently 3 lodged [Proposed] Stipulated Order for Permanent Injunction, Monetary Relief, 4 and Other Relief (“Order”) to resolve all matters in dispute in this action between 5 them. 6 THEREFORE, IT IS ORDERED as follows: FINDINGS 7 8 This Court has jurisdiction over this matter. 9 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. 14 Only for purposes of this action, Settling Defendants admit the facts 15 necessary to establish jurisdiction. 16 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. 19 Settling Defendants waive all rights to appeal or otherwise challenge or 20 contest the validity of this Order. 21 DEFINITIONS 22 For the purpose of this Order, the following definitions apply: 23 A. 24 “Assisting Others” includes: 1. Performing customer service functions, including receiving or 25 responding to consumer complaints; 26 27 28 -2- Case 8:23-cv-00699-JWH-ADS Document 67-1 Filed 10/05/23 Page 3 of 34 Page ID #:2677 2. 1 Formulating or providing, or arranging for the formulation or 2 provision of, any advertising or marketing material, including any telephone sales 3 script, direct mail solicitation, or the design, text, or use of images of any Internet 4 website, email, or other electronic communication; 3. 5 Formulating or providing, or arranging for the formulation or 6 provision of, any marketing support material or service, including web or Internet 7 Protocol addresses or domain name registration for any Internet websites, affiliate 8 marketing services, or media placement services; 9 4. Providing names of, or assisting in the generation of, potential 5. Performing marketing, billing, payment processing, or payment 10 customers; 11 12 services of any kind; or 6. 13 Acting or serving as an owner, officer, director, manager, or 14 principal of any entity. 15 B. “Defendants” means the Individual Defendants and the Corporate 16 Defendants, individually, collectively, or in any combination. 17 1. “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. 20 2. “Individual Defendant(s)” means Gianni Olilang, Brandon 21 Clores, Kishan Bhakta, and Allan Radam, individually, collectively, or in any 22 combination. 23 3. “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. 26 4. “Settling Individual Defendant(s)” means Gianni Olilang and 27 Allan Radam, individually, collectively, or in any combination. 28 -3- Case 8:23-cv-00699-JWH-ADS Document 67-1 Filed 10/05/23 Page 4 of 34 Page ID #:2678 5. 1 2 3 “Settling Corporate Defendant(s)” means SLA and each of its subsidiaries, affiliates, successors, and assigns. C. “Person” means a natural person, organization, or other legal entity, 4 including a corporation, partnership, proprietorship, association, cooperative, or 5 any other group or combination acting as an entity. 6 D. “Receiver” means Thomas W. McNamara. 7 E. “Receivership Entity(ies)” means the Settling Corporate Defendant, 8 as well as any other entity that has conducted any business related to Settling 9 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. 13 14 F. “Secured or Unsecured Debt Relief Product or Service” means: 1. 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: 17 a. 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; 21 b. 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; 26 27 28 -4- Case 8:23-cv-00699-JWH-ADS Document 67-1 Filed 10/05/23 Page 5 of 34 Page ID #:2679 c. 1 obtain any forbearance or modification in the timing of 2 payments from any secured or unsecured holder or servicer of any mortgage, loan, 3 debt, or obligation; d. 4 negotiate, obtain, or arrange any extension of the period 5 of time within which a person may (i) cure his or her default on the mortgage, loan, 6 debt, or obligation, (ii) reinstate his or her mortgage, loan, debt, or obligation, (iii) 7 redeem a dwelling or other collateral, or (iv) exercise any right to reinstate the 8 mortgage, loan, debt, or obligation or redeem a dwelling or other collateral; e. 9 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 f. 12 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. 2. 18 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: 21 a. 22 repay one or more unsecured loans, debts, or obligations; or 23 b. 24 or more new loans, debts, or obligations. 25 G. 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, 27 28 -5- Case 8:23-cv-00699-JWH-ADS Document 67-1 Filed 10/05/23 Page 6 of 34 Page ID #:2680 1 by use of one or more telephones, and which involves more than one interstate 2 telephone call. ORDER I. BAN ON SECURED AND UNSECURED DEBT RELIEF PRODUCTS AND SERVICES 3 4 5 6 7 8 9 10 11 12 13 14 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 15 16 17 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: 24 A. 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 26 27 28 -6- Case 8:23-cv-00699-JWH-ADS Document 67-1 Filed 10/05/23 Page 7 of 34 Page ID #:2681 1 full or partial refund, or the circumstances in which a full or partial refund will be 2 granted to the consumer; 3 B. That any Person is affiliated with, endorsed or approved by, or 4 otherwise connected to any other Person; government entity; public, non-profit, or 5 other non-commercial program; or any other program; 6 7 8 9 C. The nature, expertise, position, or job title of any Person who provides any product, service, plan, or program; D. 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; 13 E. That a consumer will save money; or 14 F. 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. 17 18 19 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 28 -7- Case 8:23-cv-00699-JWH-ADS Document 67-1 Filed 10/05/23 Page 8 of 34 Page ID #:2682 1 Settling Defendant possesses and relies upon competent and reliable evidence that 2 is sufficient in quality and quantity based on standards generally accepted in 3 relevant fields, when considered in light of the entire body of relevant and reliable 4 evidence, to substantiate that the representation is true. 5 V. PROHIBITION AGAINST OBTAINING CUSTOMER INFORMATION BY FALSE PRETENSES 6 7 8 9 10 11 12 13 14 15 16 17 18 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: A. 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 B. 21 22 23 24 25 26 27 28 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 19 20 Obtaining, or attempting to obtain customer information of a IT IS FURTHER ORDERED that: A. 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 D [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Aftc%3Aa2f8e2153b95b9c1. Public record. Not legal advice.