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.

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

Click here to view court document.

On Friday June 17^th, 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.

Many consumers recently received a copy of the TRO entered by the Court in the FTC action against Michael and Valerie Rando and their various corporate entities, including The Credit Game University (“the Defendants”). As part of the Court’s Order, the Defendants were required to send that Order to you. You as consumers have no obligations under the TRO.

As part of the Court’s TRO, the Court appointed Maria M. Yip as Receiver over the Corporate Defendants, meaning she now stands in the shoes of these entities. However, she is not representing the Randos or their interests in this case. Rather, it is her job to marshal the assets of the Receivership Entities and report to the Court as to whether the businesses can be run legally and profitably.  She will file her first report with the Court on June 13, 2022, just prior to the Court’s hearing on the FTC’s motion for preliminary injunction which will be held on June 17, 2022.

As former or current customers of the Credit Game University (or affiliated entities), what do you do now?

• You can always check on this website for new information as events unfold or papers are filed with the Court.
• Also, please go to the Registration tab and register. This will confirm that the Receiver has your contact information. It would be helpful, although not required, if you provide as much information as possible in the fields titled “Item(s) Purchased” and “Comments/Complaints”. This would include what you purchased, how much it cost and if/how the product/service might have been misrepresented to you.
• If the Court grants the Preliminary Injunction, the Receiver will continue her efforts to marshal the assets of the companies to ultimately be distributed to victimized consumers. It is difficult to project when any claims/distribution process would begin, so please understand that this process will take some time to begin and eventually result in distributions.