UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
FORT LAUDERDALE DIVISION

FEDERAL TRADE COMMISSION,

Plaintiff

v.

NATIONAL GRANT FOUNDATION, INC., GRANT RESEARCH & PUBLISHING, INC.,
WALLACE MILLMAN,
ANTHONY CONSALVO,
DENNIS J. COLONNA,
ANTHONY LUCCA,
HARRIET KAYE,
BEVERLY JANSEN,
and CAROL CLOUGH,

Defendants.

Case No.

Magistrate Judge

(Proposed)

TEMPORARY RESTRAINING ORDER WITH ASSET FREEZE, EXPEDITED DISCOVERY, IMMEDIATE ACCESS TO DEFENDANT’S BUSINESS PREMISES, APPOINTMENT OF A TEMPORARY RECEIVER, AND OTHER EQUITABLE RELIEF, AND ORDER TO SHOW CAUSE WHY A PRELIMINARY INJUNCTION SHOULD NOT ISSUE

Plaintiff Federal Trade Commission (“FTC” or “Commission”), having filed its complaint in this matter seeking injunctive and other relief, including redress to consumers, and having moved for (1) a temporary restraining order; (2) an order freezing the accounts, wherever located, belonging to defendants National Grant Foundation, Inc. (“NGF”) and Grant Research & Publishing, Inc. (“GRP”) (collectively referred to as the “corporate defendants”), and defendants Wallace Millman, Anthony Consalvo, Dennis Colonna, and Anthony Lucca (collectively referred to as the “management defendants”) or for which any management defendant has signature authority; (3) an order requiring an immediate accounting of the corporate and management defendants’ assets and transfers of assets; (4) an order permitting expedited discovery as to the corporate and management defendants’ assets; (5) immediate access to defendants’ business premises; and (6) an order to show cause why a preliminary injunction should not issue pursuant to Fed. R. Civ. P. 65(b); and the Court having considered the pleadings, declarations, memoranda, and other exhibits filed in support of the Commission’s motion, and now being advised in the premises, finds:

1. That this Court has jurisdiction over the subject matter of this case, and that there is good cause to believe that the Court will have jurisdiction over all of the parties;
2. That there is good cause to believe that NGF, GRP, Wallace Millman, Anthony Consalvo, Dennis Colonna, Anthony Lucca, Harriet Kaye, Beverly Jansen, and Carol Clough (“defendants”) have engaged and are likely to continue to engage in acts or practices that violate Section 5(a) of the FTC Act, as amended, 15 U.S.C. § 45(a), and that the Commission is therefore likely to prevail on the merits of this action;
3. That there is good cause to believe that immediate and irreparable harm will result from defendants’ ongoing violations of Section 5(a) of the FTC Act and that immediate and irreparable damage to the Court’s ability to grant effective final relief for consumers in the form of monetary redress will occur from the sale, transfer, assignment, or other disposition or concealment by the corporate and management defendants of their assets or of the defendants’ business record unless defendants are immediately restrained and enjoined by order of this Court and pursuant to Fed. R. Civ. P. 65(b), and that the interest of justice therefore requires that the Commission’s motion be heard ex parte without prior notice to defendants;
4. That good cause exists, in light of defendants’ deceptive sales practices, to appoint a temporary receiver over the corporate defendants;
5. That, weighing the equities and considering the Commission’s likelihood of ultimate success, a temporary restraining order freezing the assets of the corporate and management defendants, permitting expedited asset discovery, and providing immediate access to defendants’ business premises, is in the public interest; and
6. That no security is required of any agency of the United States for issuance of a restraining order. Fed. R. Civ. P. 65(c).

PROHIBITED BUSINESS PRACTICES

I.

THEREFORE, IT IS HEREBY ORDERED that defendants and their officers, agents, servants, employees, and attorneys, and those persons in active concert or participation with them who receive actual notice of this Order, by personal service or otherwise, are hereby temporarily restrained and enjoined from making or assisting others in making, directly or by implication, any false or misleading oral or written statement or representation in connection with the advertising, promotion, offering for sale, or sale of services related to identifying potential scholarships or grants for high school and college students or their families, or services related to obtaining college scholarships or grants (hereinafter referred to as “college scholarship services”), including but not limited to any misrepresentation:

A. That defendants will provide consumers with names of sources from which they are likely to obtain at least a specified amount of money in grants or scholarships;

 

B. That defendants will provide consumers who purchase defendants’ services with personal portfolios of scholarships and grant sources that are specifically tailored to the consumers’ qualifications;

 

C. That students are pre-selected by defendants to receive scholarships and grants;

 

D. That defendants obtain grants or scholarships on behalf of consumers who purchase defendants’ services; or

 

E. That concerns defendants’ business relationship with any corporation or other entity that awards or may award scholarships and grants.

RECORD KEEPING PROVISIONS

II.

IT IS FURTHER ORDERED that defendants and their officers, agents, servants, employees, and attorneys, and all other persons or other entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, are hereby restrained and enjoined from:

A. Destroying, erasing, mutilating, concealing, altering, transferring, or otherwise disposing of, in any manner, directly or indirectly, any: books; records; “verification” or other audio or video tape recordings; computer tapes, discs or other computerized records; accounting data; personal and business checks (fronts and backs); correspondence; forms; advertisements; brochures; manuals; banking records; customer lists; customer files; invoices; telephone records; ledgers; payroll records; scripts; postal receipts; appointment books; state or federal income tax returns; or other documents of any kind in their possession, custody, or control; and

 

B. Failing to make and keep books, records, accounts, bank statements, current accountants’ reports, general ledgers, general journals, cash receipts ledgers, cash disbursements ledgers and source documents, documents indicating title to real or personal property, and any other data which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the corporate and management defendants; and

 

C. Failing to notify counsel for the Commission of the receipt of any funds by the corporate or management defendants subsequent to the date of entry of this order, identifying each such receipt by the name, address, and telephone number of the payer.

ASSET FREEZE PROVISIONS

III.

IT IS FURTHER ORDERED that the corporate and management defendants, and their officers, agents, servants, employees, and attorneys, and all other persons or other entities in active concert or participation with them, who receive actual notice of this Order by personal service or otherwise, are hereby restrained and enjoined, until further order of this Court, from:

A. Transferring, encumbering, selling, concealing, pledging, hypothecating, assigning, spending, withdrawing, disbursing, conveying, gifting, dissipating, or otherwise disposing of any funds, property, accounts, contracts, lists of consumer names, shares of stock, or other assets, wherever located, that are:

1. owned by, controlled by, held for the benefit of, or belong to, any corporate or management defendant, in whole or in part;
2. in the actual or constructive possession of any corporate or management defendant;
3. held by an agent of any corporate or management defendant as a retainer for the agent’s provision of services to any corporate or management defendant; or
4. owned by, controlled by, belong to, or in the actual or constructive possession of, or otherwise held for the benefit of, any corporation, partnership, or other entity directly or indirectly owned, managed, or controlled by or under common control of, any corporate or management defendant; Provided that the assets referenced above in this subparagraph shall also include, but are not limited to, any assets held by, for, or under the name of any corporate or management defendant at any bank or savings and loan institution, or with any broker-dealer, escrow agent, title company, commodity trading company, precious metal dealer, or other financial institution of any kind;

B. Opening or causing to be opened any safe deposit boxes titled in the name of any corporate or management defendant, or subject to access by any corporate or management defendant;

C. Incurring charges or cash advances on any credit card issued in the name, singly or jointly, of any corporate or management defendant, or any corporation, partnership, or other entity directly or indirectly owned, managed, or controlled by any corporate or management defendant;

D. Transferring any funds or other assets subject to this Order for attorneys’ fees, living expenses, or business expenses, except from accounts or other assets identified by prior written notice to the Commission and prior approval by the Court; and

E. Notwithstanding the asset freeze provision of Paragraph III.A.-D. above, and subject to the limitations in Paragraph III.F. below, management defendants Millman, Consalvo, Colonna, and Lucca may pay from their personal funds reasonable, usual, ordinary, and necessary living expenses, not to exceed $500, prior to the submission of the sworn financial statement as required by Paragraph V, infra. No such living expenses, however, shall be paid from funds subject to this Order except from cash on the persons of defendants Millman, Consalvo, Colonna, or Lucca, or from accounts designated by prior written notice to counsel for the Commission.

F. Provided, however, that no attorneys’ fees, living expenses or businesses expenses other than those set forth in Subparagraph E, and only in accordance with the procedures set forth in Subparagraph E, shall be paid from funds or other assets subject to this Order until a sworn financial statement as required by Paragraph V, infra, is submitted to the Court and served upon counsel for the Commission.

G. The assets affected by this Paragraph shall include both existing assets and assets acquired after the effective date of this Order, including, without limitation, those acquired by loan or gift, and assets in the form of retainers paid to the corporate or management defendants’ agents as compensation for the provision of services to the corporate or management defendants. Any individual management defendant, or any third party holding assets on behalf of or for the benefit of any management defendant, who receives actual notice of this Order, by personal service or otherwise, shall hold all assets, including without limitation, payments, loans and gifts, received after service of this Order, and shall deposit payments received into a domestic account at a financial institution that is titled in the management defendant’s name and is designated by concurrent written notice to Commission counsel.

RETENTION OF ASSETS AND RECORDS BY THIRD PARTIES

IV.

A. IT IS FURTHER ORDERED that, pending determination of the Commission’s request for a preliminary injunction, any financial or brokerage institution, escrow agent, title company, commodity trading company, common carrier, storage company, trustee, or any person or other entity served with a copy of this Order shall:

1. Hold and retain within such entity’s or person’s control and prohibit the withdrawal, removal, assignment, transfer, pledge, hypothecation, encumbrance, disbursement, dissipation, conversion, sale, liquidation, or other disposal of any funds, documents, property, or other assets held by or under such entity’s or person’s control:

a. on behalf of, or for the benefit of, any corporate or management defendant(s);

 

b. in any account maintained in the name of, or subject to withdrawal by, any corporate or management defendant(s); or

 

c. that are subject to access or use by, or under the signatory power of, any corporate or management defendant(s);

2. Deny access to any safe deposit boxes that are either:

a. titled in the name, individually or jointly, of any corporate or management defendant(s) or other party subject to Paragraph III above; or

 

b. subject to access by any corporate or management defendant(s) or other party subject to Paragraph III above; and

3. Provide to counsel for the Commission, within four (4) business days after service of this Order, a statement setting forth:

a. the identification of each account or asset titled in the name, individually or jointly, or held on behalf of, or for the benefit of, any corporate or management defendant(s) or other party subject to Paragraph III above, whether in whole or in part;

 

b. the balance of each such account asset, or a description of the nature and value of such account or asset;

 

c. the identification of any safe deposit box that is either titled in the name of, individually or jointly, or is otherwise subject to access or control by, any corporate or management defendant(s) or other party subject to Paragraph III above, whether in whole or in part; and

 

d. if the account, safe deposit box, or other asset has been closed or removed, the date closed or removed and the balance on said date.

Provided further, that this Paragraph shall not prohibit transfers in accordance with any provision of this Order, or any further order of the Court. The Commission may serve this Order on any bank, savings and loan institution, credit union, financial institution, brokerage house, escrow agent, title company, commodity trading company, common carrier, storage company, trustee, or any person by facsimile transmission, hand, first-class mail, or overnight courier.

FINANCIAL STATEMENTS

V.

IT IS FURTHER ORDERED that each management defendant shall, within two business days after service of this Order, prepare and deliver to counsel for the Commission:

A. A financial statement, accurate as of the date of service of this Order upon such corporate or management defendant that shall include all financial information as follows:

1. for management defendants Millman, Consalvo, Colonna, and Lucca, the information requested in Department of Treasury - Internal Revenue Service Collection Information Statement for Individuals (Form 433-A); and
2. for corporate defendants National Grant Foundation, Inc. and Grant Research & Publishing, Inc., all financial information as requested in the corresponding Collection Information Statement for Businesses (Form 433-B); and

B. A complete statement, accurate as of the date of service of this Order upon such corporate or management defendant, of all payments, transfers, or assignment of funds, assets, or property worth $1,000 or more since February 1, 1997. Such statement shall include:

1. the amount and type of funds, assets or property transferred or assigned;
2. the name of each transferee or assignee;
3. the date of the assignment or transfer; and
4. the type and amount of consideration paid the defendant.

Each statement shall specify the name and address of each financial institution and brokerage firm at which the corporate or management defendant has accounts or safe deposit boxes. Said statements shall include assets, funds, or property held in foreign as well as domestic accounts.

APPOINTMENT OF TEMPORARY RECEIVER

VI.

IT IS FURTHER ORDERED that is hereby appointed temporary receiver, with the full power of an equity receiver, for defendants National Grant Foundation, Inc. and Grant Research & Publishing, Inc. and any subsidiaries, affiliates and sales branches (collectively, the “receivership defendants”), including, but not limited to, the sales office of defendants at 6136 NW 11th Street, Sunrise, Florida, and over all funds, documents, properties, premises and other assets owned directly or indirectly by the receivership defendants, whether in the name of the receivership defendants or in the name of any other entity or person, with directions and authority to accomplish the following:

A. To take immediate custody, control and possession of all the funds, accounts, property, premises, mail, and other assets of, or in the possession or control of, the receivership defendants, wherever situated, with full power to divert mail and to sue for, collect, receive, and take possession of all goods, chattels, rights, credits, money, effects, land, leases, books, work papers, and records of accounts, including electronic files on any media, contracts, financial records, money on hand in banks, and other papers and documents of the receivership defendants and members of the public whose interests are now held by or are under the direction, possession, custody, or control of the receivership defendants;

 

B. To conserve, hold and manage all such assets, pending further order of this Court, in order to prevent loss, damage and injury to members of the public who have paid fees to the receivership defendants;

 

C. To hold, preserve, and administer the business of the receivership defendants until further order of this Court, with full authority to perform all acts necessary or incidental thereto;

 

D. To employ such managers, agents, and employees as may in the judgment of the temporary receiver be advisable or necessary in the management, conduct, control, or custody of the affairs of the receivership defendants and of the assets thereof, and otherwise generally to assist in the receivership;

 

E. To make such payments and disbursements as may be necessary and advisable for the preservation of the properties of the receivership defendants and as may be necessary and advisable in discharging the temporary receiver’s duties;

 

F. To retain and employ investigators, attorneys, or accountants of the temporary receiver’s choice, including members and employees of the temporary receiver’s firm, to assist, advise, and represent the temporary receiver;

 

G. To receive and collect any and all sums of money due to or owing to the receivership defendants, whether the same are now due or shall hereafter become due and payable, and to do such things and enter into such agreements in connection with the administration, care, preservation, and maintenance of the properties of the receivership defendants as the temporary receiver may deem advisable;

 

H. To institute, prosecute and defend, compromise, adjust, intervene in, or become party to such actions or proceedings in state or federal court as may in the temporary receiver’s opinion be necessary or proper for the collection, marshaling, protection, maintenance, and preservation of the assets of the receivership defendants, and the recovery of assets conveyed by the receivership defendants, or the carrying out of the terms of this Order, and likewise to defend, compromise or adjust or otherwise dispose of any or all actions or proceedings instituted against the temporary receiver or against the receivership defendants, and also to appear in and conduct the defense of any suit or to adjust or compromise any actions or proceedings now pending in any court by or against the receivership defendants where such prosecution, defense, or other disposition of such actions or proceedings will in the judgment of the temporary receiver be advisable or proper for the protection of the properties of the receivership defendants;

 

I. To remove defendants Millman, Consalvo, Colonna, Lucca, Kaye, Jansen, and Clough, and any other officer, independent contractor, employee, or agent of the receivership defendants, from control and management of the affairs of the receivership defendants;

 

J. To make periodic reports, observations, and recommendations to this Court.

VII.

IT IS FURTHER ORDERED that:

A. The temporary receiver may allow representatives of the Commission and the defendants reasonable access to inspect the premises of the receivership defendants, and to copy books, records, accounts, and other property of the receivership defendants, wherever located;

 

B. Upon application to this Court, the temporary receiver and any counsel or accountants whom the temporary receiver may select, shall be compensated for their reasonable and necessary fees and expenses from the receivership estate, upon approval from this Court;

 

C. The temporary receiver serves herein as an officer of this Court solely in a representative capacity and is not personally liable for any actions taken in conformity with the duties and responsibilities set forth herein or pursuant to any statute, rule, regulation, or other legal authority;

 

D. The temporary receiver shall have all the powers of the receivership defendants’ directors, officers, and managers, whose powers and authority are hereby suspended; and

 

E. In light of the appointment of a temporary receiver herein, the receivership defendants are prohibited from filing, or causing to be filed, a petition for relief under the United States Bankruptcy Code without leave of this Court.

DELIVERY OF RECEIVERSHIP PROPERTY

VIII.

IT IS FURTHER ORDERED that the defendants, and any other person or entity served with a copy of this Order, shall forthwith deliver over to the temporary receiver:

A. Possession and custody of all funds, assets, property owned beneficially or otherwise, and all other assets, wherever situated, of the receivership defendants;

 

B. Possession and custody of all books and records of accounts, financial and accounting records, balance sheets, income statements, bank records (including monthly statements, canceled checks, records of wire transfers, and check registers), client lists, title documents, and other papers of the receivership defendants;

 

C. All keys, combinations to locks, passwords, identification numbers, and entry codes required to open or gain access to any of the receivership defendants’ property, computer files, and all money in any bank deposited to the credit of the receivership defendants, wherever situated; and

 

D. All passwords or codes required to access any hardware, software, or electronic files on any media.

RECEIVER'S BOND

IX.

IT IS FURTHER ORDERED that the temporary receiver shall file with the clerk of this Court a bond in the sum of ____________________, conditioned that the temporary receiver will well and truly perform the duties of the office and duly account for all money and property that he or she marshals.

STAY OF ACTIONS AGAINST RECEIVERSHIP DEFENDANTS

X.

IT IS FURTHER ORDERED that, except by leave of this Court, during the pendency of the receivership ordered herein, the defendants and all customers, distributors, principals, investors, creditors, stockholders, lessors, and other persons seeking to establish or enforce any claim, right, or interest against or on behalf of the receivership defendants, and all others acting for or on behalf of such persons, including attorneys, servants, agents, and employees, be and hereby are stayed from:

A. Commencing, prosecuting, continuing, or enforcing any suit against the receivership defendants, except that such actions may be filed to toll any applicable statute of limitations;

 

B. Commencing, prosecuting, continuing, or enforcing any suit or proceeding in the name

of or on behalf of the receivership defendants;

 

C. Accelerating the due date of any obligation or claimed obligation of the receivership defendants; enforcing any lien upon, or taking or attempting to take possession of, or retaining possession of any property of the receivership defendants, or any property claimed by the receivership defendants; attempting to foreclose, forfeit, alter, or terminate any interests of the receivership defendants, whether such acts are part of a judicial proceeding or otherwise;

 

D. Using self-help or executing or issuing, or causing the execution or issuance of any court attachment, subpoena, replevin, execution, or other process for the purpose of impounding or taking possession of or interfering with, or creating or enforcing a lien upon any property, wherever located, owned by or in the possession of the receivership defendants, the temporary receiver appointed herein, or any agents appointed by the temporary receiver;

 

E. Committing any act to interfere with the temporary receiver in taking control, possession, or management of the property subject to this receivership; to harass the temporary receiver or to interfere with the performance of the duties of the temporary receiver; or to interfere with the exclusive jurisdiction of this Court over the property and assets of the receivership defendants.

EXPEDITED DISCOVERY

XI.

A. IT IS FURTHER ORDERED that in light of the need to monitor compliance with this Order, the Commission is granted leave to conduct certain expedited discovery, and that, commencing with the time and date of this Order, in lieu of the time periods, notice provisions, and other requirements of Rules 26, 30, 34, and 45 of the Federal Rules of Civil Procedure, and S.D. Fla. L.R. 26.1, expedited discovery shall proceed as follows:

1. Pursuant to Fed. R. Civ. P. 30, the Commission may take depositions of any person upon oral examination concerning the nature, location, status, and extent of the corporate and management defendants’ assets; the status and location of documents reflecting the corporate and management defendants’ business transactions; and compliance with this Order, on two days’ notice of any such deposition. Depositions may be taken Monday through Saturday. Deposition transcripts that have not been signed by the witness may be used for purposes of the hearing on the Order to Show Cause Why a Preliminary Injunction Should Not Issue.

Provided, that this Subparagraph shall not be construed in any manner to preclude plaintiff’s right to take subsequent depositions of the same witnesses on the merits of this action.

Provided, that any deposition taken pursuant to this Subparagraph is in addition to, and not subject to, the presumptive limits on depositions set forth in Fed. R. Civ. P. 30(a)(2)(A) and S.D. Fla. L.R. 26.1.

2. Pursuant to Fed. R. Civ. P. 34(b), within two days of service of a request by the Commission, defendants shall produce all documents requested by the Commission concerning:

a. the nature, location, status, and extent of the corporate and management defendants’ assets;

 

b. the status and location of documents reflecting the corporate and management defendants’ business transactions; and

 

c. defendants’ compliance with this Order, with production of documents made to the name and address listed in Paragraph XVI or such other person or place as counsel for the Commission may direct in writing.

Provided, that this Paragraph shall extend to parties and non-parties.

IMMEDIATE ACCESS TO DEFENDANTS’ BUSINESS PREMISES

XII.

A. IT IS FURTHER ORDERED that defendants, and each of them, and any other person served with a copy of this Order, shall permit the Commission’s employees, agents, and assistants immediate access to defendants’ business premises, including, but not limited to, the offices located at 6136 NW 11th Street, Sunrise, Florida, and all branch offices and storage facilities owned or controlled by said defendants. This right of access shall continue from day to day, Monday through Saturday, during regular business hours, and shall include access to the entire premises for the purpose of inspecting, indexing, and copying:

1. Documents evidencing, referring, or relating to the advertising, marketing, or offering of college scholarship services, including documents pertaining to any business relationship between defendants and any other business entity;
2. Documents evidencing, referring, or relating to the corporate and management defendants’ financial status, including by not limited to, the nature or location of any bank account, safe deposit box, or other asset of any corporate or management defendant;
3. Documents evidencing, referring, or relating to any correspondence, transaction, or other communication by or between any consumer or prospective consumer and any defendant or any defendants’ representatives, employees, agents, officers, servants, or assistants; and
4. Documents evidencing or referring to any correspondence, action, or other communication by or between any law enforcement agency, consumer group, or Better Business Bureau and any defendant or any defendant’s representatives, employees, agents, officers, servants, or assistants.

B. IT IS FURTHER ORDERED that the defendants shall provide Commission employees, agents, and assistants with any necessary means of access to these documents, including without limitation keys and combinations to locks, computer access codes, and storage access information.

C. IT IS FURTHER ORDERED that the defendants, their agents, employees, salespersons, accountants, and attorneys are hereby enjoined and restrained from interfering in any way with the Commission’s right of access described herein.

CREDIT REPORT PROVISION

XIII.

IT IS FURTHER ORDERED that the Commission may obtain credit reports concerning any defendant pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681b(1), and that upon written request, any credit reporting agency from which such reports are requested shall provide them to the Commission.

ORDER TO SHOW CAUSE

XIV.

IT IS FURTHER ORDERED that each of the defendants shall appear before this Court on the _______ day of _______________________, 1997, at __________ ____.m. at the United States Courthouse, Courtroom __________, _____________, Florida, to show cause, if any there be, why this Court should not enter a preliminary injunction, pending final ruling on the complaint, against said defendants enjoining them from further violations of Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), continuing the freeze of assets of the corporate and management defendants, and imposing such additional relief as may be appropriate.

PLEADINGS REGARDING PRELIMINARY INJUNCTION HEARING

XV.

IT IS FURTHER ORDERED that:

A. Defendants shall file with the Court and serve counsel for the Commission any response to the Order to Show Cause Why a Preliminary Injunction Should Not Issue, including all declarations, exhibits, memoranda, and other evidence, not less than forty-eight (48) hours prior to the hearing on Order to Show Cause Why a Preliminary Injunction Should Not Issue. Defendants shall serve copies of all such materials on the Commission, by hand, by facsimile transmission, or by overnight delivery service to the address (or facsimile number) listed in Paragraph XVI.

Provided, that if the defendants choose to serve the Commission via overnight delivery, the documents shall be delivered so that they shall be received by the Commission at least seventy-two (72) hours prior to the hearing.

B. The Commission shall file with the Court and serve on defendants any supplemental memoranda, declarations, materials, or other evidence not less than forty-eight (48) hours prior to the hearing on the Order to Show Cause Why a Preliminary Injunction Should Not Issue. The Commission shall serve copies of all such materials on counsel for each defendant by hand, by facsimile transmission, or by overnight delivery service.

Provided, that if the Commission chooses to serve any defendant via overnight delivery, the documents shall be delivered so that they shall be received by that defendant at least forty- eight (48) hours prior to the hearing.

C. Any party who desires to present live testimony at the hearing shall set forth a witness list that shall include the name, address, and telephone number of any such witness, and either a summary of the witness’ expected testimony, or the witness’ declaration revealing the substance of such witness’ expected testimony, and serve such motion on all opposing parties, not less than seventy-two (72) prior to the hearing on the Order to Show Cause Why a Preliminary Injunction Should Not Issue.

Provided, that if service is via overnight delivery, the documents shall be delivered so that they shall be received by all parties at least seventy-two (72) hours prior to the hearing.

CORRESPONDENCE WITH PLAINTIFF

XVI.

For the purposes of this Order, all correspondence and pleadings to the Commission shall be addressed to:

Dana J. Lesemann
Federal Trade Commission
Sixth St. & Pennsylvania Ave., N.W.
Room H-200
Washington, D.C. 20580
(202) 326-3146 (voice)
(202) 326-3392 (telecopier)

SERVICE OF THIS ORDER

XVII.

IT IS FURTHER ORDERED, pursuant to Fed. R. Civ. P. 4(c)(2), that copies of this Order and the initial pleadings and papers filed in this matter, including the Complaint and summonses, may be served by employees and agents of the Commission, by employees of any state or other federal law enforcement agency, including but not limited to the United States Marshal’s Office, the Broward County (Florida) Sheriff’s Office, the Sunrise (Florida) Police Department, and by agents of any process servers retained by the Commission, upon any office of the defendants, any individual defendant, any financial or brokerage institution, or any person or entity that may be in possession of any assets, property, or property rights of defendants.

RETENTION OF JURISDICTION

XVIII.

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for all purposes.

Done and Ordered in chambers at ____________________________, Florida

on ______________________________, 1997 at _________, ___.m.

____________________________________________

United States District Judge