UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON FEDERAL TRADE COMMISSION, Plaintiff, v. FORTUNA ALLIANCE, L.L.C., AUGUSTINE DELGADO, LIBBY GUSTINE WELCH, DONALD R. GRANT, MONIQUE DELGADO, and GAIL OLIVER, Defendants. Civ. No. C96-0799 D TEMPORARY RESTRAINING ORDER FREEZING ASSETS AND PROVIDING OTHER EQUITABLE RELIEF _________________________________________________________________ Plaintiff, the Federal Trade Commission ("Commission"), having filed a complaint for a permanent injunction and other relief, including restitution to consumers, pursuant to Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b), and having moved for an ex parte temporary restraining order and for an order to show cause why a preliminary injunction should not be granted pursuant to Rule 65(b) of the Federal Rules of Civil Procedure, and the Court having considered the pleadings, declarations, exhibits, and memorandum filed in support thereof, it is the finding of this Court that: 1. This Court has jurisdiction of the subject matter of this case and there is good cause to believe it will have jurisdiction over all parties hereto. 2. There is good cause to believe the Commission will ultimately succeed in establishing that defendants Fortuna Alliance, L.L.C., Augustine Delgado, Libby Gustine Welch, Donald R. Grant, Monique Delgado, and Gail Oliver, and each of them, have engaged in and are likely to engage in acts and practices that violate Section 5(a) of the FTC Act, 15 U.S.C. §' 45(a). 3. There is good cause to believe that immediate and irreparable damage will be done to the public and to this Court's ability to grant full and effective relief among the parties hereto absent entry of this Order on an ex parte basis. 4. Weighing the equities and considering the Commission's likelihood of ultimate success, a Temporary Restraining Order is in the public interest. I. - CEASE AND DESIST IT IS THEREFORE ORDERED that defendants are hereby temporarily restrained and enjoined from: A. Promoting, offering for sale, or selling any memberships or participation rights in Fortuna Alliance or any other pyramid scheme. B. Providing promotional materials or services to any person or entity who promotes, offers for sale, or sells memberships or participation rights in Fortuna Alliance or any other pyramid scheme. C. Making, or assisting in the making of, directly or by implication, orally or in writing, any statement or representation of material fact that is false or misleading about the profits or earnings that may be expected by any participant in any investment program or plan. II. - ASSET FREEZE IT IS FURTHER ORDERED that, except as provided in Section IV below, as stipulated by the parties, or as directed by further order of the Court, defendants Fortuna Alliance, L.L.C. (“Fortuna”), Augustine Delgado, and Libby Gustine Welch are hereby temporarily restrained and enjoined from, directly or through any other person or entity: A. Transferring, converting, encumbering, selling, concealing, dissipating, disbursing, assigning, spending, withdrawing, or otherwise disposing of any funds, real or personal property, accounts, contracts, membership or mailing (including “Email”) lists, shares of stock or other assets, or any interest therein, wherever located, that are (a) owned or controlled by any of these defendants, in whole or in part; or (b) in the actual or constructive possession of any of these defendants; or (c) owned, controlled by, or in the actual constructive possession of any corporation, partnership, or other entity directly or indirectly owned, managed, or controlled by, or under common control with, any of these defendants, including, but not limited to, any assets held by or for any of these defendants 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 or depository of any kind; B. Opening or causing to be opened any safe deposit boxes titled in the name of any of these defendants, or subject to access by any of these defendants; and C. Incurring charges on any credit card issued in the name, singly or jointly, of any of these defendants. The assets affected by this section shall include both existing assets and assets acquired after issuance of this Order, and these defendants shall hold and account for these assets and all payments received by them, including but not limited to borrowed funds or property and gifts. III. - NON-INTERFERENCE IN ASSET FREEZE IT IS FURTHER ORDERED that defendants Donald R. Grant, Monique Delgado, and Gail Oliver are hereby temporarily restrained and enjoined from taking, with respect to the assets of Fortuna, Augustine Delgado, and Libby Gustine Welch, any of the actions prohibited to Fortuna, Augustine Delgado, and Libby Gustine Welch in Section II above, except as provided in Section IV below. IV. - REPATRIATION OF FOREIGN ASSETS IT IS FURTHER ORDERED that defendants shall: A. Immediately upon service of this Order, or as soon thereafter as Antiguan banking hours permit, direct that the Swiss American Bank of Antigua transfer to Fortuna Alliance’s bank account at Whatcom State Bank all funds previously transferred by or from Fortuna Alliance, Augustine Delgado, or Libby Gustine Welch to that bank. B. Immediately upon service of this Order, or as soon as relevant banking hours permit, transfer to the territory of the United States all funds, documents, and assets in foreign countries held either: (1) by Fortuna, Augustine Delgado, or Libby Gustine Welch; (2) for their benefit; or (3) under their direct or indirect control, jointly or singly. This includes, but is not limited to, all funds retransferred by the Swiss American Bank of Antigua to any other bank or asset holder. C. Hold and retain all repatriated funds, documents, and assets, and prevent any transfer, disposition, or dissipation of these funds, documents, and assets, except to the extent that Section XI of this Order requires delivery of them to the receiver. D. Provide plaintiff and, with respect to Fortuna’s assets, the receiver, with access to defendants' records and documents held by financial institutions outside the territorial United States, by signing the Consent to Release of Financial Records attached to this Order. E. Provide plaintiff and, with respect to Fortuna’s assets, the receiver with a full accounting of all funds, documents and assets outside of the territory of the United States which are held either: (1) by them; (2) for their benefit; or (3) under their direct or indirect control, jointly or singly; V. - MAINTENANCE OF RECORDS IT IS FURTHER ORDERED that defendants are hereby temporarily restrained and enjoined from: A. Failing to create and maintain books, records, and accounts which, in reasonable detail, accurately, fairly, and completely reflect the incomes, disbursements, transactions, and use of monies by defendants. B. Destroying, erasing, mutilating, concealing, altering, transferring or otherwise disposing of, in any manner, directly or indirectly, any contracts, membership or mailing (including “Email”) lists, accounting data, correspondence, advertisements, computer tapes, disks, or other computerized records, books, written or printed records, handwritten notes, telephone logs, telephone scripts, "verification" tapes or other audio or video tape recordings, receipt books, invoices, postal receipts, ledgers, personal and business canceled checks and check registers, bank statements, appointment books, copies of federal, state or local business or personal income or property tax returns, and other documents or records of any kind that relate to the business practices or business or personal finances of any defendant. VI. - DUTIES OF ASSET HOLDERS IT IS FURTHER ORDERED that, except as stipulated by the parties or as directed by further order of the Court, any financial or brokerage institution, business entity, or person that holds, controls, or maintains custody of any account or asset, including any membership or mailing (including “Email”) lists, real or personal property of defendants Fortuna, Augustine Delgado, or Libby Gustine Welch, or has held, controlled, or maintained custody of any account or asset of any of these defendants at any time since December 31, 1995, shall: A. Prohibit all persons and entities except, with respect to Fortuna’s assets, the receiver appointed by this Order and his designated representatives or agents, from withdrawing, removing, assigning, transferring, pledging, encumbering, disbursing, dissipating, converting, selling, or otherwise disposing of any of these assets. B. Deny all persons and entities, except, with respect to Fortuna’s assets, the receiver appointed by this Order and his designated representatives and agents, access to any safe deposit box that is titled in the name of any of these defendants, either individually or jointly, or otherwise subject to access by any of these defendants. C. Provide counsel for plaintiff and, with respect to Fortuna’s assets, the receiver, within five business days of receiving a copy of this Order, a certified statement setting forth: 1. the identification number of each account or asset titled in the name, individually or jointly, of any of these defendants, or held on behalf of, or for the benefit of, any of these defendants, including all trust accounts managed on behalf of these defendants or subject to any of these defendants’ control; 2. the balance of each identified account, or a description of the nature and value of the asset as of the close of business on the day on which this Order is served, and, if the account or other asset has been closed or removed since November 1, 1995, the date closed or removed, the total funds removed in order to close the account, and the name of the person or entity to whom the account or other asset was remitted; and 3. the identification and location of any safe deposit box that is either titled in the name, individually or jointly, of any of these defendants, or is otherwise subject to access by any of these defendants. D. Upon request and within five business days, provide to counsel for plaintiff and, with respect to Fortuna’s assets, to the receiver copies of all records or other documentation pertaining to the account or asset described in Paragraph C above, including but not limited to originals or copies of account applications, account statements, signature cards, checks, drafts, deposit tickets, transfers to and from the accounts, all other debit and credit instruments or slips, currency transaction reports, 1099 forms, and safe deposit box logs. E. With respect to Fortuna’s assets, cooperate with all reasonable requests of the receiver relating to implementation of this Order, including transferring funds at the receiver's direction and producing records related to these defendants' accounts. VII. - SERVICE OF TRO IT IS FURTHER ORDERED that copies of this Order may be served by first class mail, overnight delivery, facsimile, or personally, by employees or agents of the FTC or the receiver, upon any bank, savings and loan institution, credit union, financial institution, brokerage house, escrow agent, money market or mutual fund, title company, commodity trading company, common carrier, storage company, trustee, commercial mail receiving agency, mail holding or forwarding company, or any other person, partnership, corporation, or legal entity that may be in possession of any records, assets, property, or property right of any defendant, and any Internet service provider or other person, partnership, corporation, or legal entity that may be subject to any provision of this Order. For purposes of service on anyone in possession of records, assets, property, or property rights, actual notice of this Order shall include notice from service by facsimile transmission of Sections VI, VII, X, and XIII of this Order, provided that this notice is followed within five business days by delivery of a complete copy of this Order. For purposes of service on any Internet service provider, actual notice of this Order shall include notice from service by facsimile transmission or electronic mail of the text of Sections VII and XIX.B of this Order, provided that this notice is followed within five business days by delivery of a complete copy of this Order. VIII. - DEFENDANTS’ FINANCIAL STATEMENTS IT IS FURTHER ORDERED that each defendant shall, within four business days from service of this Order, prepare and deliver to the counsel for the Commission and, with respect to Fortuna’s assets, the receiver, completed financial statements on the forms attached to this Order. The completed financial statements shall be accurate as of the date of service of this Order upon the defendant. The defendants shall attach to these completed financial statements copies of all state and federal income and property tax returns for each individual and entity since January 1, 1995 and copies of all policies of insurance in effect since January 1, 1995, with attachments and schedules thereto, insuring against loss of, or damage to, real or personal property owned or held by or for the limited liability company or individual defendant. IX. - ACCESS TO PREMISES IT IS FURTHER ORDERED that defendants shall allow plaintiff and the receiver, and their representatives, agents, and assistants, immediate access to Fortuna’s business premises and any other locations where Fortuna’s property or business records are located. The locations of defendant Fortuna’s business premises specifically include, but are not limited to, the Fortuna offices and facilities in Bellingham, WA and Carson City, NV. The purpose of this access shall be to inspect and inventory all defendants' property, assets, and documents and to inspect and copy any documents relevant to this action. For purposes of this provision, the term "document" shall include all those items described in Paragraph V.B above. The Commission shall have the right to remove documents from defendants’ premises in order that they may be inspected, inventoried, and copied. The documents so removed shall be returned to Fortuna’s premises, or any other location directed by the receiver, within seven business days unless the receiver agrees to a longer period. X. - APPOINTMENT OF RECEIVER AND RECEIVER DUTIES IT IS FURTHER ORDERED that Michael A. Grassmueck, Inc., is appointed as receiver with the full power of an equity receiver for Fortuna and its subsidiaries and affiliates, and of all funds, properties, premises and other assets directly or indirectly owned, wherever situated, beneficially or otherwise, by this defendant with directions and authority to accomplish the following: A. Take custody, control, and possession of all funds, property, premises, mail, and other assets of, or in the possession or control of Fortuna, including the contents of any safe deposit box, wherever situated, with full power to divert, return to sender, hold without opening, open, or copy any mail, and to sue for, collect, receive and take in possession all goods, chattels, rights, credits, monies, effects, lands, leases, books, work papers, and records of accounts, including electronic files on any media, and other papers and documents of defendant Fortuna and members of the public whose interests are now held by or under the direction, possession, custody or control of Fortuna. With respect to the premises of defendant Fortuna that are located outside the State of Washington, the receivership custody, control, and possession shall be implemented initially on behalf of the receivership estate by the Commission and, if the receiver and the Commission deem it necessary, agent(s) of the receiver. The persons implementing this Order at each non-Washington location shall. (1) effect service of this Order at the location; (2) complete a written listing of all employees, “volunteers,” and other agents of Fortuna and any other persons found at the site, including, to the extent feasible, the name, home address, social security number, job description, and, for any employees of Fortuna, the method of compensation and a statement of all accrued and unpaid commissions and compensation; (3) prepare an inventory of electronic equipment found on site; and (4) secure the location by changing door locks and passwords, disconnecting any computers and modems, and preventing any other means of access to the computers or other records or property maintained at that location. B. Conserve, hold, and manage all such assets, pending stipulation of the parties or further order of this Court; to obtain an accounting thereof; and to report to this Court and the Commission any violations of this Order or of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), that the receiver may become aware of by any defendant, their respective officers, directors, agents, servants, employees, “volunteers,” attorneys, salespersons, successors, assigns, subsidiaries, affiliates, corporations, and other persons or entities under their control and all persons in active concert or participation with them. C. Hold, preserve, and administer the business of Fortuna until further order of this Court, with full authority to perform all acts necessary or incidental thereto, including terminating employees, “volunteers,” and independent contractors D. Cease all promotion, operation, or maintenance of Fortuna Alliance or any other pyramid scheme or any business incident thereto, including but not limited to any business that involves purchases by or distributions to any members of Fortuna Alliance or any other pyramid scheme. E. Continue and conduct any lawful business of Fortuna not incident to any pyramid scheme, in such manner, to such extent, and for such duration as the receiver may in good faith deem to be necessary or appropriate to profitably and lawfully operate that business, if at all; provided that the continuation and conduct of the business shall be conditioned upon Fortuna first demonstrating to the satisfaction of the Court, at the show cause hearing scheduled in Section XXIII below, that the business can be lawfully operated at a profit using the funds and other assets of the receivership estate. Fortuna shall immediately, and thereafter from time to time upon request of the receiver, advise the receiver concerning each location at which defendant Fortuna conducts business and all matters relevant to the continuation and conduct of that business. F. Employ any managers, agents, employees, servants, accountants, and technical specialists as may in the receiver’s judgment be advisable or necessary in the management, conduct, control, or custody of the affairs of defendant Fortuna and the assets thereof, and otherwise generally to assist in the receivership. G. Make any payments and disbursements that may be necessary and advisable for the preservation of the properties of Fortuna and as may be necessary and advisable in discharging the receivership duties. H. Give information, in a form to be provided or approved by counsel for the plaintiff, regarding the status of Fortuna and this action to current, former, or prospective consumer participants in Fortuna’s pyramid scheme that the receiver in its judgment deems advisable or necessary and practicable, including but not limited to notice through answering machines, faxes, electronic mail, and postings on Fortuna’s home pages on the World Wide Web. I. Receive and collect any and all sums of money due or owing Fortuna in any manner whatsoever, whether the same are now due or shall hereafter become due and payable, except to the extent that debts are owed by members of the public who agreed to participate in any pyramid scheme, and to do such things and enter into such agreements in connection with the administration, care, preservation, and maintenance of the properties of Fortuna as the receiver may deem advisable. J. Institute, prosecute, and defend, compromise, adjust, intervene in, or become party to any actions or proceedings in state, federal, or foreign courts as may in the receiver's opinion be necessary or proper for the protection, maintenance, and preservation of the assets of Fortuna 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 receiver or against Fortuna and also to appear in and conduct the defense of any suit or adjust or compromise any actions or proceedings now pending in any court by or against Fortuna where the prosecution, defense, or other disposition of those actions or proceedings will, in the judgment of the receiver, be advisable or proper for the protection of the properties of Fortuna. K. Make periodic reports, observations, and recommendations to this Court, and to seek guidance and instructions from this Court, if the receiver deems it necessary, upon one day's written or oral notice to all parties who have filed an appearance in this proceeding. L. The receiver and its accountants, attorneys, agents, and consultants shall be compensated from the assets of the receivership estate for their normal hourly charges and for all expenses incurred by them in fulfilling the terms of this Order. This compensation for the receiver's personnel shall be at the rate of $125 per hour for Michael Grassmueck, $40 per hour for the receiver's staff, and the customary hourly rates for other agents and consultants. The receiver shall also be compensated for automobile mileage expenses at a rate of 29.94 per mile, photocopies at a rate of 154 per page, and for long distance, postage, travel, and other expenses at actual cost. The receiver may pay itself and its accountants, attorneys, agents, and consultants on a regular basis as and when billed from assets of the receivership estate, provided that the receiver shall provide a monthly accounting to the Court, that the Court shall retain the right to accept or deny any particular charges, and that the receiver shall apply to the Court for approval of these charges at regular invervals of three months. XI. - TURN OVER TO RECEIVER IT IS FURTHER ORDERED that, immediately upon service of this Order upon them, defendants, and any other person or entity served with a copy of this Order, shall immediately deliver over to the receiver: A. Possession and custody of all funds, assets, property owned beneficially or otherwise, and all other assets, wherever situated, of Fortuna. B. Possession and custody of all books and records of accounts, all financial and accounting records, balance sheets, income statements, bank records (including monthly statements, canceled checks, records of wire transfers, and check registers), client lists, membership and mailing lists (including Email), title document, and other papers of Fortuna. C. Possession and custody of all funds and other assets belonging to members of the public now held by Fortuna. D. All passwords or codes required to access any hardware, software, or electronic files on any media. E. All keys, passwords, identification numbers, entry codes, and combinations to locks required to open or gain access to any of Fortuna’s property or effects, Fortuna’s computer files (including all backup tapes), and all monies in any bank deposited by or to the credit of Fortuna, wherever situated. F. Information identifying the accounts, employees, “volunteers,” properties, or other assets or obligations of Fortuna. G. A statement providing the total number of individuals and entities, and the name, address, phone number, and payment record of each of them, who is listed as a member or participant in the Fortuna program, whether directly or through any other entity, and the total dollar amount of money received from each customer and paid out to each customer. XII. - NON-INTERFERENCE WITH RECEIVER IT IS FURTHER ORDERED that the defendants shall refrain from interfering with the receiver taking custody, control, or possession and from interfering in any manner, directly or indirectly, with the custody, possession, and control of the receiver; shall fully cooperate with and assist the receiver appointed in this action; and shall take no action, directly or indirectly, to hinder or obstruct the receiver in the conduct of its duties or to interfere in any manner, directly or indirectly, with the custody, possession, management, or control by the receiver. XIII. - 3D PARTY COOPERATION WITH RECEIVER IT IS FURTHER ORDERED that any bank, savings and loan institution, credit union, financial institution, brokerage house, money market or mutual fund, common carrier, storage company, escrow agent, title company, commodity trading company, trustee, Internet service provider, or any other person, partnership, corporation, or other legal entity that is served with a copy of this Order, shall cooperate with all reasonable requests of the receiver relating to implementation of this Order, including transferring funds and the contents of safe deposit boxes at the receiver's discretion and producing for the receiver records related to defendants' accounts. XIV. - RECEIVER’S BOND IT IS FURTHER ORDERED that the receiver shall file with the Clerk of this Court within five days of entry of this Order a bond in the sum of $500,000 with sureties to be approved by the Court, conditioned that the receiver will well and truly perform the duties of the office and duly account for all monies and properties which may come into its hands and abide by and perform all things which he shall be directed to do. XV. - STAY OF OTHER ACTIONS IT IS FURTHER ORDERED that except by leave of this Court, the defendants and all customers, principals, investors, creditors, stockholders, lessors, and other persons seeking to establish or enforce any claim, right or interest against or on behalf of the defendants, or its subsidiaries or affiliates, and all others acting for or on behalf of those persons including attorneys, trustees, agents, sheriffs, constables, marshals, and other officers and their deputies and their respective attorneys, agents, servants, and employees be and are hereby stayed from: A. Commencing, prosecuting, continuing, or enforcing any suit or proceeding against Fortuna, or its subsidiaries or affiliates, or the receiver, except that any action may be filed to toll any applicable statutes of limitations. B. Commencing, prosecuting, continuing, or enforcing any suit or proceeding in the name of the defendants or their subsidiaries or affiliates. C. Accelerating the due date of any obligation or claimed obligation, enforcing any lien upon, or taking or attempting to take possession or retaining possession of, property of defendant Fortuna, or its subsidiaries or affiliates, or any property claimed by Fortuna, or attempting to foreclose, forfeit, alter, or terminate any interests of Fortuna in any property, whether these 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, wheresoever located, owned or in the possession of the Fortuna, or its subsidiaries or affiliates, or the receiver appointed pursuant to this Order or any agents appointed by the receiver. E. Doing any act or thing whatsoever to interfere with the receiver taking control, possession, or management of the property subject to this receivership, or to in any way interfere with the receiver, or to harass or interfere in any manner with the duties of the receiver; or to interfere in any manner with the exclusive jurisdiction of this Court over the property and assets of defendant Fortuna or its subsidiaries or affiliates. Provided, however, that nothing in this section shall prohibit any federal, state, or local law enforcement or regulatory authority from commencing or prosecuting an action against any defendant. XVI. - CREATION OF OTHER BUSINESSES IT IS FURTHER ORDERED that defendants are hereby temporarily restrained and enjoined from creating, operating or controlling any business entity, whether newly-formed or previously inactive, including any partnership, limited partnership, joint venture, sole proprietorship, or corporation, without first providing the Commission with a written statement disclosing: (1) the name of the business entity; (2) the address and telephone number of the business entity; (3) the names of the business entity's officers, directors, principals, managers and employees; and (4) a detailed description of the business entity's intended activities. XVII. - EXPEDITED DISCOVERY IT IS FURTHER ORDERED that Plaintiff is granted leave, to initiate discovery prior to the proposed discovery plan required by FRCP 26(f) and, pursuant to FRCP 30(a), to take the deposition of any person, in any judicial district, at any time after the date of this Order, upon three days notice; pursuant to FRCP 33, defendants' responses to any interrogatories served by the plaintiff shall be within ten days after service of the interrogatories; pursuant to FRCP 34, defendants' response to any request by plaintiff for production of documents shall be within five days after service of the request; pursuant to FRCP 36 defendants' responses to any request for admissions served by plaintiff shall be within five days after service of the requests. XVIII. - CONSUMER CREDIT REPORTS IT IS FURTHER ORDERED that pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. ' 1681b(1), any consumer reporting agency may furnish a consumer report concerning any defendant to plaintiff or the receiver. XIX. - NOTICE TO RELATED PERSONS AND ENTITIES IT IS FURTHER ORDERED that: A. Defendants shall immediately provide a copy of this Order to each affiliate, subsidiary, division, sales entity, successor, assign, officer, director, employee, “volunteer,” independent contractor, agent, attorney, and representative, and shall, within ten days from the date of entry of this Order, provide plaintiff with a sworn statement that defendants have complied with this provision of the Order, which statement shall include the names and addresses of each such person or entity who received a copy of the Order. B. Immediately upon service of this Order upon them, defendants, and any other person or entity served with a copy of this Order, including any Internet service provider that currently provides facilities for promotional materials of the Fortuna Alliance program through electronic means, shall forthwith take whatever action is necessary to ensure that any home page on the World Wide Web containing those promotional materials which is or has been addressable by users of the Web carry only the following statement plus the link information that follows: The Federal Trade Commission (FTC) has filed a lawsuit charging that Fortuna Alliance, Augustine Delgado, and other individuals have been operating a fraudulent and unlawful pyramid sales scheme. The United States District Court for the Western District of Washington has issued a temporary restraining order temporarily prohibiting further sales and promotional activities of Fortuna Alliance. You may obtain additional information directly from the FTC. Each page carrying this message shall also provide a hypertext link to the FTC home page (http://www.ftc.gov/ro/fortuna.htm) or other home page designated by counsel for the FTC. For Fortuna’s own home pages, the language above may be modified by the receiver as provided in Paragraph X.H of this Order. C. Immediately upon service of this Order upon them, defendants shall Email a copy of the statement in Paragraph B above, as well as a notice that further information is available at the designated FTC home page and any other information requested by the receiver as provided in Paragraph X.H of this Order, to all persons and entities on its current Email distribution lists. XX. - FILING OF PLEADINGS IT IS FURTHER ORDERED that defendants shall file their opposition, including any declarations, exhibits, memoranda, or other evidence on which defendants intend to rely, not less than three business days before the hearing on the order to show cause why a preliminary injunction should not issue. Defendants shall serve copies of all these materials on plaintiff by delivery or facsimile to designated counsel for the Federal Trade Commission, at 915 Second Avenue, Suite 2806, Seattle, Washington 98174, prior to 4:00 p.m. on the day that it is filed. XXI. - WITNESSES AT HEARINGS IT IS FURTHER ORDERED that, if any party to this action intends to present the testimony of any witness at the hearing on a preliminary injunction in this matter, that party shall, at least seventy-two hours prior to the scheduled date and time of hearing, file with this Court and serve on counsel for the other party, a statement of the name, address, and telephone number of that witness, and either a summary of the witness' expected testimony, or the witness' declaration or affidavit revealing the substance of the witness' expected testimony; and that, after the service of the statement, the served party thereafter shall have forty-eight hours from the time of service of the witness information to provide information to the Court and to the serving party for any witness whose testimony the served party intends to present. XXII. - EXPIRATION IT IS FURTHER ORDERED that the Temporary Restraining Order granted herein expires ten days after entry unless, within that time, the Order for good cause shown is extended for an additional period not to exceed ten days, or unless it is extended with the consent of the parties. XXIII. - SHOW CAUSE IT IS FURTHER ORDERED that each of the defendants shall appear before this Court on the 30th day of May, 1996, at 10:00 o'clock a.m., to show cause, if any there be, why this Court should not continue the appointment of the receiver and enter a preliminary injunction, pending final ruling on the Complaint against these defendants, enjoining them from further violations of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), continuing the relief provided herein and the freeze of their assets, and imposing whatever additional relief may be appropriate. XXIV. - RETENTION OF JURISDICTION IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for all purposes. SO ORDERED, this 24th day of May, 1996, at 9:30 am. __________________________________ Walter T. Mcgovern United States District Judge PRESENTED BY: [signature] Randall H. Brook, WSBA # 4860 Eleanor Durham Attorneys for Plaintiff Federal Trade Commission