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TO GAIN ACCESS TO ALL COURT FILINGS
Not all filings in the underlying case are posted on this website. For those people that wish the opportunity to view all Court filings in the underlying case, you may set up an account with the PACER (Public Access to Court Electronic Records) Case Locator, the national online index for U.S. district, bankruptcy, and appellate courts. Registered users are charged a small fee for each page of Court documents which are downloaded. Interested parties can register for a PACER account by going to:
https://www.pacer.gov/index.html
After the user's account has been established, registered users should click on the hyperlink below to log on:
https://pacer.login.uscourts.gov/csologin/login.jsf
After logging on, select the hyperlink for the correct court, in this case "California Central - ECF" under the column for the U.S. District Courts. You can then search by case number: "2:18-cv-00729-JAK-MRW" or by case name or by the name of one of the parties to the case, such as, "Digital Altitude LLC." The case involving the receivership will show John A. Kronstadt as the presiding judge.
Contact:
Thomas Seaman, CFA
Judicial Receiver
1 Park Plaza, Suite 580
Irvine, CA 92614
Email the Receiver
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This webpage was last updated October 14, 2020.
This web site has been established to foster efficient communications between customers and creditors of Digital Altitude, LLC, et al; and Thomas Seaman, who is serving as its receiver (the "Receiver") in a FTC enforcement action known as Federal Trade Commission (the "FTC" or "Plaintiff") vs. Digital Altitude LLC, et al (the “Defendants”); Case No. LA CV18-00729 JAK (MRWx) in the United States District Court, Central District of California. A summary of the case inception is at the bottom of this page.
RECEIVERSHIP CLOSED; FINAL ACCOUNTING, REPORT & FEE APPLICATIONS APPROVED
The Receivership has been closed. The Receiver filed his FINAL ACCOUNT AND REPORT [Dkt. No. 320] on February 20, 2020. On October 5, 2020, the Court approved the FEE APPLICATION OF THE RECEIVER [Dkt. No. 318] and FEE APPLICATION OF HIS COUNSEL [Dkt. No. 319] and ordered the Receiver to turn over the net balance of funds of $1.527 million collected by the Receiver to the Federal Trade Commission for consumer redress. The FTC hopes to provide partial refunds to many consumers who lost money to Digital Altitude. You can check the FTC’s Digital Altitude website, https://www.ftc.gov/enforcement/cases-proceedings/172-3060/digital-altitude-llc for announcements about any refunds the FTC will provide. Given the massive amount of the consumer losses, the refunds will only be a very small fraction of consumer losses.
RECEIVER'S FIFTH INTERIM REPORT, THIRD FEE APPLICATIONS; UPCOMING CONCLUSION OF RECEIVERSHIP
The Receiver will be concluding the Receivership in the coming months. Unfortunately, no significant assets were recovered. The FTC will institute a process for consumer redress, but consumers should be aware that any payments will most likely be only a small fraction of consumers' losses.
On August 15, 2019, the Receiver has filed his RECEIVER'S FIFTH REPORT [Dkt. No. 313] with EXHIBITS [Dkt. No. 313-1]. The Receiver's Fifth Report covers the period from January 1, 2019, through July 31, 2019.
The Receiver also filed with the Court his RECEIVER'S THIRD FEE APPLICATION [Dkt. No. 314] supported by EXHIBITS [Dkt. No. 314-1]. From October 1, 2018, through July 31, 2019 (the "Third Application Period"), the Receiver and his agents spent 146.1 hours executing the duties set forth in the Temporary Restraining Order and the subsequent Preliminary Injunction entered on March 9, 2018 ("PI"). The Receiver seeks approval to pay 100% of fees. The Receiver does not seek reimbursement of any expenses.
The Receiver also filed with the Court his THIRD MOTION OF RECEIVER THOMAS A. SEAMAN FOR APPROVAL TO PAY INTERIM FEES AND COSTS TO RECEIVER'S COUNSEL, LOEB & LOEB, LLP [Dkt. No. 315] with EXHIBIT A [Dkt. No. 315-1], EXHIBIT B [Dkt. No. 315-2], EXHIBIT C [Dkt. No. 315-3], EXHIBIT D [Dkt. No. 315-4], EXHIBIT E [Dkt. No. 315-5] and EXHIBIT F [Dkt. No. 315-6]. This motion is supported by DECLARATION OF BENJAMIN R. KING [Dkt. No. 316], EXHIBIT A [Dkt. No. 316-1], EXHIBIT B [Dkt. No. 316-2], EXHIBIT C [Dkt. No. 316-3], EXHIBIT D [Dkt. No. 316-4], EXHIBIT E [Dkt. No. 316-5] and EXHIBIT F [Dkt. No. 316-6]. The attorney's fee application encompasses work performed from September 1, 2018, through July 31, 2019 (the "Third Interim Fee Period"). During the Third Interim Fee Period the attorneys worked 155.0 hours on behalf of the receivership estate and the Receiver requests the Court approve 100% of fees and expenses on an interim basis and an order authorizing the Receiver to pay, on an interim basis, 100% of fees and expenses incurred.
The hearing for these applications is calendared for 8:30 a.m., November 18, 2019.
FINAL ORDERS FOR PERMANENT INJUNCTION AND MONETARY JUDGMENT AGAINST DIGITAL ALTITUDE, LLC ET AL
March 6, 2019: Judge Kronstadt entered the following orders:
PERMANENT INJUNCTION AND MONETARY JUDGMENT AGAINST DEFENDANTS
March 4, 2019: Judge Kronstadt entered the following orders:
REPORT AND APPLICATION FOR JUDGMENT AGAINST DEFENDANTS
February 28, 2019: The Federal Trade Commission filed the following documents:
RECEIVER'S FOURTH INTERIM REPORT
February 6, 2019: The Receiver has filed his RECEIVER'S FOURTH INTERIM REPORT [Dkt. No. 278]. The Receiver's Fourth Report covers the period from October 1, 2018, through December 31, 2018.
RECEIVER'S THIRD INTERIM REPORT
October 25, 2018: The Receiver has filed his RECEIVER'S THIRD INTERIM REPORT [Dkt. No. 254]. The report is supplemented with EXHIBIT A [Dkt. No. 254-1]. The Receiver's Third Report covers the period from June 1, 2018, through September 30, 2018.
SECOND FEE APPLICATIONS OF RECEIVER AND RECEIVER'S ATTORNEYS
On October 25, 2018, the Receiver filed with the Court his RECEIVER'S SECOND FEE APPLICATION [Dkt. No. 252], supported by EXHIBIT A [Dkt. No. 252-1] and EXHIBIT B [Dkt. No. 252-2]. From April 1, 2018, through September 30, 2018 (the "Second Application Period"), the Receiver and his agents spent 375.1 hours executing the duties set forth in the Temporary Restraining Order and the subsequent Preliminary Injunction entered on March 9, 2018 ("PI"). The Receiver seeks approval to pay 100% of fees. The Receiver does not seek reimbursement of any expenses.
The Receiver also filed with the Court his SECOND MOTION OF RECEIVER THOMAS A. SEAMAN FOR APPROVAL TO PAY INTERIM FEES AND COSTS TO RECEIVER'S COUNSEL, LOEB & LOEB, LLP [Dkt. No. 253]. This motion is supported by DECLARATION OF BENJAMIN R. KING [Dkt. No. 253-1], EXHIBIT A [Dkt. No. 253-2], EXHIBIT B [Dkt. No. 253-3], EXHIBIT C [Dkt. No. 253-4], EXHIBIT D [Dkt. No. 253-5] and EXHIBIT E [Dkt. No. 253-6]. The attorney's fee application encompasses work performed from April 1, 2018, through August 31, 2018 (the "Second Interim Fee Period"). During the Second Interim Fee Period the attorneys worked 119.6 hours on behalf of the receivership estate and the Receiver requests the Court approve 100% of fees and expenses on an interim basis and an order authorizing the Receiver to pay, on an interim basis, 100% of fees and expenses incurred.
The hearing for these applications is calendared for 8:30 a.m., January 28, 2019.
ORDER GRANTING FTC’S MOTION FOR DEFAULT JUDGMENT AGAINST EIGHT DEFENDANTS; ORDER DENYING DEFENDANTS’ MOTION FOR ATTORNEYS’ FEES
On July 26, 2018, Judge Kronstadt entered his ORDER RE DEFENDANTS’ MOTION FOR ATTORNEYS’ FEES; FTC’S MOTION FOR DEFAULT JUDGMENT AGAINST ASPIRE PROCESSING, LLC; DISC ENTERPRISES, INC.; RISE SYSTEMS AND ENTERPRISE, LLC; RISE SYSTEMS AND ENTERPRISE, LLC; AND SOAR INTERNATIONAL; DIGITAL ALTITUDE LIMITED; ASPIRE PROCESSING LIMITED; ASPIRE PROCESSING LIMITED; AND ASPIRE VENTURES LTD; AND MOTION FOR ANDREW GORDON, BRADLEY GROSS, AND HANSEN TONG TO WITHDRAW AS COUNSEL [Dkt. No. 201].
ORDER GRANTING DEFENDANTS' MOTION FOR ATTORNEYS' FEES
On July 2, 2018, Judge Kronstadt entered his ORDER GRANTING DEFENDANT'S MOTION FOR ATTORNEYS' FEES [Dkt. No. 183]. The order was issued in a civil minute order which addressed several motions.
RECEIVER'S SECOND INTERIM REPORT
June 22, 2018: The Receiver has filed his RECEIVER'S SECOND INTERIM REPORT [Dkt. No. 172]. The report is supplemented with EXHIBIT A [Dkt. No. 172-1], EXHIBIT B [Dkt. No. 172-2] and EXHIBIT C [Dkt. No. 172-3]. The Receiver's Second Report covers the period from March 1, 2018, through May 31, 2018.
FIRST FEE APPLICATIONS OF RECEIVER AND RECEIVER'S ATTORNEYS
On April 6, 2018, the Receiver filed with the Court his RECEIVER'S FIRST FEE APPLICATION [Dkt. No. 143], supported by EXHIBIT A [Dkt. No. 143-1] and EXHIBIT B [Dkt. No. 143-2]. From the time of the TRO through March 31, 2018 (the "First Application Period"), the Receiver and his agents spent 656.6 hours executing the duties set forth in the Temporary Restraining Order and the subsequent Preliminary Injunction entered on March 9, 2018 ("PI"). The Receiver seeks approval to pay 100% of fees. The Receiver does not seek reimbursement of any expenses.
The Receiver also filed with the Court his MOTION OF RECEIVER THOMAS A. SEAMAN FOR APPROVAL TO PAY INTERIM FEES AND COSTS TO RECEIVER'S COUNSEL, LOEB & LOEB, LLP [Dkt. No. 144]. This motion is supported by DECLARATION OF BENJAMIN R. KING IN SUPPORT OF MOTION OF RECEIVER THOMAS A. SEAMAN FOR APPROVAL TO PAY INTERIM FEES AND COSTS TO RECEIVER'S COUNSEL, LOEB & LOEB, LLP [Dkt. No. 144-1], EXHIBIT A [Dkt. No. 144-2], EXHIBIT B [Dkt. No. 144-3], EXHIBIT C [Dkt. No. 144-4], EXHIBIT D [Dkt. No. 144-5] and EXHIBIT E [Dkt. No. 144-6]. During the First Interim Fee Period the attorneys worked 100.0 hours on behalf of the receivership estate and the Receiver requests the Court approve 100% of fees and expenses on an interim basis and an order authorizing the Receiver to pay, on an interim basis, 100% of fees and expenses incurred.
The hearing for these applications is calendared for 8:30 a.m., June 11, 2018.
PRELIMINARY INJUNCTION GRANTED; APPOINTMENT OF PERMANENT RECEIVER
On March 9, 2018, the Court issued its ORDER RE PRELIMINARY INJUNCTION [Dkt. No. 111] and making the appointment of the Receiver permanent.
Several hundred Digital Altitude customers have requested refunds of the Receiver by email. Due to the large volume of emails, it will not be an efficient use of scarce receivership assets to respond to these requests individually. Please be advised that the Receiver will not be honoring any refund requests at this time. At some point in the future, if the FTC prevails in its litigation against Digital Altitude, and depending on the success of the Receiver in recovering funds for the benefit of allegedly aggrieved consumers, there may be a distribution process approved by the Court. Consumers will be advised of the terms of any claims process and plan of distribution at the appropriate time. For the time being based on the Receiver’s current information concerning the value of Digital Altitude’s assets, consumers should not expect any significant recoveries. That being said, the Receiver is continuing to work diligently to identify and marshal assets and identify potential sources of recovery. The Receiver’s efforts will be posted on this website.
RECEIVER'S FIRST REPORT AND INVENTORY
March 1, 2018: The Receiver has filed his RECEIVER'S FIRST REPORT AND INVENTORY [Dkt. No. 93].
The Receiver has received numerous requests for refunds from consumers. Do to the high volume of refund requests, the Receiver will not be replying to the emails individually.
Consumers should be advised that no refund requests are being honored at this time. As some point in the future, depending on the outcome of the FTC litigation against Digital Altitude and the amount of money recovered by the Receiver, a claim process may be established if ordered by the Court. At the appropriate time, consumers will be given the ability to file a claim for their losses.
UPDATE OF FEBRUARY 20, 2018:
Thank you for visiting this website. Due to the large volume of emails inquiries, many of you have not yet received a reply. We are working to reply to all emails and have prepared the following list of Frequently Asked Questions that may answer your question in the meantime.
UPDATE OF FEBRUARY 9, 2018:
The Receiver is suspending operations for the time being and cancelling the Apex conference. Please see the NOTICE TO EMPLOYEES of February 9, 2018.
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CASE INCEPTION AND INITIAL ORDERS
This web site has been established to foster efficient communications between customers and creditors of Digital Altitude, LLC, et al (the "Corporate Defendants") and Thomas Seaman, who is serving as its receiver (the "Receiver"). Mr. Seaman was appointed on February 1, 2018, in a FTC enforcement action known as Federal Trade Commission (the "FTC" or "Plaintiff") vs. Digital Altitude LLC, Digital Altitude Limited, Aspire Processing LLC, Aspire Processing Limited, Aspire Ventures Ltd, Disc Enterprises Inc., RISE Systems & Enterprise LLC (Utah), RISE Systems & Enterprise LLC (Nevada), Soar International Limited Liability Company, The Upside, LLC, Thermography for Life, LLC, d/b/a Living Exceptionally, Inc., Michael Force, Mary Dee, Morgan Johnson, Alan Moore, and Sean Brown (collectively, the "Defendants"), Case No. LA CV18-00729 JAK (MRWx) in the United States District Court, Central District of California. The case is heard before the Honorable John A. Kronstadt.
The FTC has alleged in their COMPLAINT [Dkt. No. 1] that the Defendants have engaged in practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). On February 1, 2018, Judge John A. Kronstadt ordered that the assets of Defendants and their subsidiaries and affiliates be frozen and issued an EX PARTE TEMPORARY RESTRAINING ORDER WITH ASSET FREEZE, APPOINTMENT OF A TEMPORARY RECEIVER, AND OTHER EQUITABLE RELIEF, AND ORDER TO SHOW CAUSE WHY A PRELIMINARY INJUNCTION SHOULD NOT ISSUE [Dkt. No. 34] (the "TRO"). The TRO and subsequent ORDER RE PRELIMINARY INJUNCTION [Dkt. No. 111] (the "PI") restrains and enjoins the Defendants from managing the business or interfering with the Receiver. The TRO also appointed Thomas A. Seaman as Receiver.
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