IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA, Plaintiff,

v.

THE NAHDREE GROUP, LTD., a corporation, Defendant.

Civil Action No.

REQUEST FOR ENTRY OF CONSENT DECREE

Plaintiff, the United States of America, acting upon notification and authorization to the Attorney General by the Federal Trade Commission ("Commission"), and defendant The Nahdree Group, LTD., respectfully request that this Court enter the submitted Consent Decree.

The Consent Decree was signed by the parties in March, 1999. Subsequent to that signing but before the Consent Decree could be filed in this Court, the defendant filed Chapter 11 bankruptcy in the District of New Jersey (Case No. 99-37076-RG). Although most actions are automatically stayed by bankruptcy, there is a law enforcement exception to the automatic stay, which provides that the automatic stay provisions do not apply to "the commencement or continuation of an action or proceeding by a governmental unit . . . to enforce such governmental unit's or organization's police and regulatory power, including the enforcement of a judgment other than a money judgment, obtained in an action or proceeding by the governmental unit to enforce such governmental unit's or organization's police or regulatory power." 11 U.S.C. § 362(b)(4). Thus, plaintiff could have filed the Consent Decree with the understanding that the provision in the Consent Decree requiring a monetary payment [Paragraph 3] would be subject to the automatic stay. Nonetheless, plaintiff postponed filing to allow time to consult with the Commission, the defendant, and the Chapter 11 trustee regarding the most efficient way to proceed.

After consultation with the Chapter 11 trustee, the parties have agreed that this Order can and should be entered now. Re-executing the Order to reflect the existence of the bankruptcy is unnecessary and would add costs and delay. The provision requiring payment within five days shall simply be treated as stayed and any payments shall be made in the context of the bankruptcy proceeding.