IN THE CIRCtJIT:-COURT OF THE SEVENTEENTH JUDICIAL-CIRCUIT IN AND FOR BROW ARD COUNTY, FLORIDA STIPULATED PERMANENT INJUNCTION AND FINAL JUDGMENT

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1 IN THE CIRCtJIT:-COURT OF THE SEVENTEENTH JUDICIAL-CIRCUIT IN AND FOR BROW ARD COUNTY, FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, vs. Plaintiff, MGD MANAGEMENT, LLC, a Florida limited liability company, CRS MARKETING, LLC, a Florida limited liability company, and MARK DALEN, an individual, Defendants. I STIPULATED PERMANENT INJUNCTION AND FINAL JUDGMENT This action came to be heard upon Plaintiff's Agreed Motion to Enter Stipulated Permanent Injunction and Final Judgment against Defendants MGD Management, LLC, CRS Marketing, LLC d/b/a. and a/k/a CRS Legal Management Group, LLC,--and Mark Dalen (hereinafter collectively referred to as "Defendants"), the Defendants having agreed to enter into this Consent Permanent Injunction and Final Judgment ("Judgment''), the Defendants having stipulated to the findings of fact set forth below, and the Defendants having agreed that this Court has jurisdiction to enter a permanent injunction and final judgment in this matter, the Court makes the following findings: l. Plaintiff Office of the Attorney General, Department of Legal Affairs, State of Florida (the "Department") is an agency of the state and the enforcing authority under the Florida l>."' Deceptive and Unfair Trade Practices Act, Florida Statutes Section et seq.

2 Stipulated Permanent Irifunction and Final Judgment 2 Befendant MGD MANAGEMENT, LLC ("MGD") is:aml was a-florida limited liability company authorized to do business in the state of Florida with its principal place of business registered as 2192 Regents :Soulevard, West Palm Beach, Florida Defendant CRS MARKETING, LLC, a/k/a and d/b/a CRS LEGAL MANAGEMENT GROUP, LLC ("CRSn) is and was a Florida limited liability company authorized to do business in the state of Florida with its principal place of business registered as 2192 Regents Boulevard, West Palm Beach, Florida CRS is an alter ego of and CRS Legal Management Group, LLC, as well as Christian Recovery Service Legal Management Group~ LLC. 4. Defendant MARK DALEN ("Dalen") is an individual and resides in the state of Florida at 2192 Regents Boulevard, West Palm Beach, Florida The Department initiated an investigation into allegations that MGDand CRS, as directed and managed by Dalen, engaged in acts or practices in the State of Florida that were misleading, unfair, deceptive or unconscionable in the marketing, advertising, and performance of foreclosure-related rescue services. The investigation by the Department has identified more than 300 consumer complaints relating to the alleged misconduct of Defendants. 6. To prevail on an action under the Florida Deceptive and Unfair Trade Practices Act ("FDUTP A"), the plaintiff must show that "the alleged practice was likely to deceive a consumer acting reasonably in the same circumstances." Office of Attorney General, Department of Legal Affairs v. Wyndham International, Inc., 869 So. 2d 592, 598 (Fla. 1st DCA 2004). 7. To establish individual liability under FDUTPA, the plaintiff must show that the "individual defendant actively participated in or had some measure of control over the 2 Initials: tnj

3 corporation's deceptive practices." KC Leisure v. Haber, 912 So.2d 1069, 1073 (Fla. 5th DCA 2008); Office of the Attorney General v. Wyndham Int'l, Inc., 869 So. 2d 592, 598 (Fla. 1st DCA 2004) ("individual defendant may also be held liable for consumer redress under the [FTC] Act if they participated directly in the deceptive practices or acts or they possessed the authority to control them."). 8. From on or about April I, 2011 through January 3, 2012, CRS, MGD and Dalen marketed, advertised, sold, and provided services to consumers relatij;j.g to foreclosure-related rescue services, including services relating to a "strategic default'' as a method of stalling consumers' foreclosures..for.the relevant period of time, CRS (including its alter ego entities CRS Legal Management Group, LLC and Christian Recovery Service Legal Management Group, LLC) and MGD operated as one and the same entity, functioning interchangeably and acting as alter egos of each other. CRS an<lmgd.are referred to collectively herein after as "MGD/CRS." 9. Dalen acted as the day-to-day manager of MGD/CRS throughout the relevant time frame. Dalen has been the primary participant and actively controls and directs the business and operations of MGD/CRS and, therefore, Dalen is individually liable for the wrongful conduct of MGD/CRS. 10. Defendants marketed and purported to provide foreclosure delay, management, and monitoring services to consumers to financially distressed homeowners in exchange for illegal charged up-front fees and monthly payments to Defendants in lieu of their lenders, taxing authorities, insurers, or home owners associations. Defendants charged consumers/homeowners upfront, nonrefundable, fees ranging from approximately $1, to $2,500.00, as well as 3 61\Y Initials:

4 $300 a month based upon false promises that they would provide f<>reclosure-related services, including an attorney's legal services to defend the consumer iil any foreclosure action. 11. Defendants' misrepresentations to consumers included, but were not limited to, claiming that consumers can remain in their homes for at least three years legally and for free without paying their mortgage lender, real estate taxes, home owner association fees, or home insurance. 12. Despite Defendants' promises and representations, Defendants did not provide the promised and contracted-for legal services by attorneys to delay the consumer's foreclosures. Rather, consumers were required 'to sign separate written agreements and pay additional retainers in order to receive advice from an attorney. 13. The acts and practices described above are in violation of the Florida Deceptive and Unfair Trade Practices Act Section50J.201 etseq.,_as well as Section by charging upfront fees for foreclosure-related rescue services without the statutorily-required disclosures in the written agreement. 14. The practices of the Defendants constitute unfair, deceptive and unconscionable trade practices that are likely to deceive a consumer acting reasonably in the same circumstances. 15. Consumers in the State of Florida were actually injured by the unfair, deceptive and unconscionable practices of Defendants. Based upon the foregoing factual findings and the consent of the parties, it is hereby ORDERED AND ADJUDGED: 16. Final judgment is hereby entered in favor of the Office of the Attorney General, Department of Legal Affairs, State of Florida (the "Department''), II 0 S.E. 6ili Street, 10 1 h Floor, Ft. Lauderdale, Florida and against Defendants MGD MANAGEMENT, LLC, Initials:W

5 Stipulated Permanent lrifunction and Final Judgment Regents Boulevard, West Palm Beach, Florida 33409, CRS MARKE'FING, LLC d/b/a CRS LEGAL MANAGEMENT GROUP, LLC and CHRISTIAN RECOVERY SERVICES LEGAL MANAGEMENT GROUP, LLC, 2192 Regents Boulevard, West Phlm Beach, Florida 33409, and MARK DALEN, 2192 Regents Boulevard, West Palm Beach, Florida The purpose of FDUTPA is to ''protect the consuming public and legitimate business enterprises from those who engage in unfair methods of competition, or unconscionable, deceptive, or unfair acts or practices in the conduct of any trade or commerce." - Section 5.01;202(2). To that.end, -''reasonable restrictions upon the. future activities of any defendant to impede her or him [sic] from engaging in or establishing the same type of endeavor'' are permitted by the Act, and courts may "order any defendant to divest herself or himself of any interest in any enterprise." Section (3). Prohibiting.husiness activities is constitutional when the limitation is rationally related to the State's objective of preventing deceptive practices. Fraternal Order of Police v. Dept. of State, 392 So. 2d 1296, 1302 (Fla. 1980) (upholding regulations in the Law Enforcement Funds Act even though they were not "the best possible means to eradicate the evils perceived" because they were not "wholly unrelated" to the legislature's purpose). As such, a permanent injunction is appropriate. 18. The Court hereby permanently enjoins Defendants MGD/CRS and Mark Dalen, as well as their officers, agents, servants, employees, and attorneys and on those persons in active concert or participation with them who receive actual notice of this Order, directly or indirectly, from the foijowing: 5 Initials;4M

6 Stipulated Permanent lrifunction and Final Judgment a. Any acts or practices that violate or fail to complywith the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes or Florida Statutes Sections ; b. Marketing, advertising, selling, providing, or accepting payment for any services. relating to consumer debt or consumer financial services, residential real estate, or foreclosurerelated services whatsoever including, without limitation, any services relating to foreclosure monitoring, management, "strategic default," or any other services offered as a means to delay, avoid or postpone foreclosure or mortgage obligations; c. Destroying;: mutilating, concealing, altering~ or disposing of, in any manner; MGD/CRS's books, records, contracts, fmancial records, consumer files and financial infonnation, regardless of the manner in which it is stored, for a period of two (2) years from the date of this Judgment. For the retention period of two years set forth herein, Defendants shall make any and all books and records available to the Department within three (3) business days of any reasonable request. 19. FDUTPA also authorizes reimbursement to consumers who have been damaged by deceptive trade practices. Section (3). It also authorizes recovery of the actual damages caused by the deceptive practices. Section (l)(b). AU consumers who paid money.in response to a deceptive trade practice are entitled to their money back, and there is no need for an individualized inquiry into how each consumer reacted to the practice. F.T.C. v. Wilcox, 926 F. Supp. 1091, 1105 (S.D. Fla. t995); F.T.C. v. People's Credit First, No. 8:03-CV T, 2005 WL (M.D. Fla. Dec. 18, 2005). Monetary damages are therefore awarded in the amount ofknown restitution due to consumers, namely $336, Initials:~

7 20. Defendants are therefore jelntty and sevemlly liable and are ordered to pay consumer restitution in the amount of $339, ("Restitution Amount"). The Restitution Amount shall be paid to the Department of Legal Affairs via certified check or cashier's check within 30 days of the date of this Order, which upon- receipt shall be distributed by the Office of the Attorney General to the consumers suffering the losses in an equitable manner as determined in the judgment of the Department. 21. Section provides that the prevailing party may recover fees and costs from the non-prevailing party. Humane Society of Broward County v. the Florida Humane Sot;iety; 95.1 So. 2d 966; 969 (Fla~ 4th DCA 2007); Smith v. Bilgin, 534 So. 2d 852~ 854 (Fla. 1st.... DCA 1998). Plaintiff's counsel has submitted affidavits -concerning time spent on the case and costs incurred, pursuant to Section (2). The Court finds that the Office of the Attorney Genera] is entitled to payment of its fees and costs in the amount of $39, The Defendants therefore jointly and severally liable and are ordered to pay attorneys' fees and costs to Plaintiff in the amount of $39, simultaneous with the entry of this Judgment. Payment shall be made by cashier's check or other certified funds payable to Department of Legal Affairs Revolving Trust Fund. 22. Any bank accounts or funds frozen pursuant to the asset freeze set forth in Paragraph 17(c) and Paragraph 18 ofthe Order on Plaintiff's Motion for Temporary Injunctive Relief Without Notice and Limited Corporate Asset Freeze, entered January 3, 2012 ("Injunction Order") are hereby ordered to be turned over to the Department and shall be applied toward satisfaction of this judgment. Any financial institution affected by the Injm;ction Order is instructed and authorized to promptly release the frozen assets to the custody of the Department as may be directed by the Department. 7 Initialsf{\D

8 23. While restitution serves the purpose of restoring an i!uured person to the financial position held before a defendant received an unlawful benefit, with a civil penalty ''the law exacts payment ofby way of punishment for doing some act which is prohibited..." Sun Coast Intern. Inc. v. Dept. of Business Regulation, 596 So. 2d 1118, 1121 (Fla. 1st DCA 1992) (internal citations omitted). Anyone who has used a trade practice found to be unlawful under the Act is liable for a civil penalty of up to $10,000 per violation , Fla. Stat. Each instance in which a deceptive representation is disseminated constitutes a violation. U S. v. Reader's Digest Ass'n, Inc., 662 F.2d 955, 966 (3d Cir. 1981). In this case, more than 300 transactions of unfair qr deceptive conduct accurred in which the- Defendants violated FDUTP A. Given the blatant nature of the violation and-the egregiousness of the consumer harm, the appropriate penalty is at least $5,000 per violation, for a total penalty of $1,500, The Defendants are jointly and severally liable and ordered to pay civi1 penalties in the total amount of $1,500,000 within 30 days of the date of this Judgment, which amount shah be payable to the Department of Legal Affairs Trust Fund and delivered to counsel for Plaintiff, Rene D. Harrod, 110 S.E. 6th Street, 1Oth Floor, Ft. Lauderdale, Florida. 24. Notwithstanding any other provision of this judgment, the individual liability of Mark Dalen under this judgment shall be deemed satisfied if the Department receives $25,000 toward this judgment on or before the date of entry of this judgment and additional payments if $5,000 on or before the first day of each month commencing June 1, 2012 through and including August 1, 2013, for a combined total payment of $100, If any payment is not timely received with time being of the essence, this Paragraph 24 shall be void and of no effect and Mark Dalen's liability under this judgment shall not be reduced or alleviated in any respect other than by full payment of all liabilities otherwise due hereunder. 8 Initials:~

9 25_ Defendants shall each complete under eath Florida-Rule of Civil Procedure Form (Fact Information Sheet), including all required at!achments, and serve it on the judgment creditor's attorney, or the judgment creditor if the judgment creditor is not represented by an attorney, within 45 days from the date of this Judgment, unless the Judgment is satisfied or postjudgment discovery is stayed. 26. Defendants shall not affect any change in the fonn of doing business, or the organizational identity of any of the existing business entities, or create any new business entities, as a method of avoiding the terms and conditions set forth in this Judgment, which shall be binding on any successors or assigns ofdefendants. 27. This Judgment is not a waiver of any private rights of any person or release of any private rights, causes of action, or remedies of any person against Defendants or any other person or entity. 28. Notwithstanding any other provision of this Judgment, nothing herein shall be construed to impair, compromise or affect any right of any government agency other than the Office of the Attorney General for the State of Florida. 29. This document is signed in anticipation of this Judgment being submitted to the Court for approval, without necessity of hearing, which is hereby WAIVED by all parties. 30. This Court retains jurisdiction of this case to enter further orders that are proper to compel compliance with this Judgment by contempt proceedings, civil and/or criminal. 31. The signatures below indicate the parties' consent and agreement to this Judgment: SIGNATURES ON NEXT PAGES 9 Initials: '{1\9

10 Agreed to: By: ~.. JV\~~~5) ~~- Mark Dalen, individually 2192 Regents Boulevard, West Palm Beach, Florida By: ~~~~~~~----~~~~-- Mark Dalen, as authorized agent of CRS Marketing, LLC, a/k/a and d/b/a CRS Legal Management Group, LLC, a/k/a and d/b/a Christian Recovery Service Legal Management Group, LLC, 2192 Regents Boulevard, West palm Beach, Florida 33409~ STATE OF FLORIDA ) COUNTY OF BROWARD ) BEFORE ME, an officer duly authorized to take acknowledgments in the State of Florida, Mark Dalen, personally-appeared, individually,. and as-authorized agent of the designated entities. He acknowledged before me that he executed the foregoing instrument for the purposes therein stated on the ili_ day of ~-() \, "bed to before me this lie_ day of (\>; 1}, Type ofldentification Produced: fl.\l 1() \1&2&4-1 S:'D-Y-)..rD Witnessed~hl'C\~~ Roshawn Banks, londa Bar No The All Law Center, P.A. PO Box25978 Fort Lauderdale, Florida (954) Counsel for Defendants 10 Initials: ill

11 OFFICE OF THE ATTOR...~EY GENERAL By: p');c_ll a J PATRICIA A. CONNERS Associ~ Deputy Attorney General Department of Legal Affairs OFFICE OF THE A TIORNEY GENERAL The Capitol Tallahassee, FL (850) Dated: _f'-+j_j_" {;~r.v,<...,;/;_".h_. _ By: rucaa~.+.rd~l-a-w~.-so-n~--~--~~- DiniCtor, Economic Crimes Division Department of Legal Affairs OFFICE OJ? THE ATTORNEY GENERAL The Capitol... TaUahassee, FL (850) Dated: r/( :~. By:. ~ RENE D.HARR15 Assistant Attorney General I I 0 S.E. 6th Street, 9th Floor Fort Lauderdale, FL (954) Dated: ~D. Approved and Entered in Chambers in Broward County, Florida this 1 dayof ~ By: ----~~L-4-~~--~----~ Circuit Court Judge 11 Initials:~