Credit Game Receivership

Status Update

As noted in the parties’ Joint Motion for Entry of Preliminary Injunction (Doc. 89) and the Court’s Order dated October 6, 2022 (Doc. 103), the parties made significant progress toward settlement of the FTC’s claims against the defendants during and subsequent to the mediation conference held with Magistrate Judge Monte Richardson. The Court has entered a Preliminary Injunction, the language of which is similar to the Temporary Restraining Order entered at the beginning of the case. Additionally, the Court has entered a stay of the case (except for the Receiver’s efforts)(Doc. 106), during which time the FTC lawyers have sought approval of the negotiated settlement from the Federal Trade Commission. Assuming that the settlement is approved by the FTC and subsequently by the Court, the Receiver will continue her efforts to marshal and liquidate assets for the benefit of aggrieved consumers and other creditors. Thereafter, the FTC will handle the distribution process of the funds collected for consumers. Any distribution will not occur until 2023 at the earliest.

Credit Game Receivership

Order Cancelling Evidentiary Hearing and Setting Zoom Videoconference

Order Cancelling Evidentiary Hearing and Setting Zoom Videoconference on September 21, 2022.

Click here to view court document.

FTC Building

Joint MOTION for Preliminary Injunction as to all Defendants by Federal Trade Commission

Joint motion for entry of stipulated preliminary injunction as to all defendants.

Click here to view court document.

Credit Game Receivership

Preliminary Injunction Evidentiary Hearing Scheduled

The Court has scheduled a two day evidentiary hearing on the FTC’s pending motion for preliminary injunction for September 21-22, 2022. Each side, the FTC and Defendants, will have one day to present their case. The Parties are required to file a Witness and Exhibit List no later than September 7, 2022. Until the Court rules on the motion for preliminary injunction, the Temporary Restraining Order remains in place.

Credit Game Receivership

Receiver’s Update

On Friday June 17th, the Court held a hearing on the FTC’s Motion for Preliminary Injunction. The Court received deposition transcripts from the FTC and the Defendants as part of their arguments to the Court. Also at the hearing, the Court heard argument regarding the Defendants’ request to modify the asset freeze to access funds to pay their attorneys. Defendants’ request [Doc. 51] and the FTC’s opposition [Doc. 56] can be found under the Court Filings tab. Both of these motions are still pending.

Also at the hearing, the Court encouraged the Parties to schedule and conduct a settlement conference. To that end, the FTC and the Defendants submitted a proposed schedule for that process which will culminate in a settlement conference with a magistrate judge in mid to late July. [Doc. 60]

The Receiver is well aware that many customers have questions and concerns about if and when they may receive any monies from their purchases from the Defendants. However, this case is still in its infancy, so it would be premature to be able to answer these types of questions.

The Receiver would encourage those with an interest in the case to read the Receiver’s First Interim Report (filed June 13, 2022) by clicking this link. Also, you may register under the Registration tab so that the Receiver has your current contact information.