July 3, 2020

All Defendants have now entered into stipulated orders for permanent injunctions and final judgments, which prohibit them from employing the deceptive and illegal business practices alleged by the FTC in its original Complaint.

In June 2020, the FTC began mailing checks totaling more than $8.7 million to 187,425 people who signed up online for “risk-free” trial offers, but were then charged full price and enrolled in expensive continuity plans without their knowledge.  Triangle Media Corporation used trial offers to market and sell a variety of products online, including skin creams, electronic cigarettes, and dietary supplements.

If you get a check, please cash it within 90 days.  If you have any questions, please call the FTC refund administrator at 877-625-9411.

For more information, go to: https://www.ftc.gov/enforcement/cases-proceedings/refunds/triangle-media-refunds.

In the Receiver’s efforts to marshal assets of the Receivership Entities, below is a list of some of the assets the Receiver recovered:

  • approximately $3.2 million from hundreds of merchant accounts that contained reserve balances;
  • approximately $440,000 from the sale of a condominium unit in downtown San Diego owned by Receivership Entity Flat6 Development, LLC;
  • approximately $520,000 from the previous sale of another condominium unit in downtown San Diego that was owned by Receivership Entity Flat6 Development, LLC; and
  • approximately $550,000 from Receivership Entity Hardwire Interactive Inc.’s Hong Kong bank account.

The Receiver subsequently transferred $5.6 million to the FTC for consumer redress.

In September 2019, the Court granted the Receiver’s motion to extend the receivership to complete his investigation into a potential lawsuit against a domestic financial institution for their role in Defendants’ operation.  In November 2019, the Court granted the Receiver’s request to retain contingency counsel and extend the receivership.  The Receiver is pursuing this lawsuit through contingency counsel.  As this is the only remaining duty for the Receiver, the Court has administratively closed the case, but will retain jurisdiction over the receivership.

November 15, 2018 – Update

The Court held the Preliminary Injunction hearing on August 9, 2018.  Judge Anello in the U.S. District Court for the Southern District of California granted the FTC’s motion for a Preliminary Injunction.  A copy of the Preliminary Injunction is available in the Documents section of this page.  The Preliminary Injunction confirms Mr. McNamara’s appointment as Receiver and he will continue to act in that capacity.  We are continuing to identify and recover assets.

Please refer to the Receiver’s Interim Status Report in the Documents section of this page for additional information.

Preliminary Hearing Set for August 9, 2018

The Court has extended the TRO and rescheduled the preliminary hearing to August 9, 2018, at which time it will determine whether a Preliminary Injunction should be entered. In the meantime, the Temporary Restraining Order (“TRO”), which was entered on June 29, 2018, will remain in effect and Defendants’ business operations will remain suspended.  A copy of the TRO can be accessed from the documents section of this page.  On July 16, 2018, the Receiver filed a report of his preliminary findings with the Court.  That report can also be accessed from the documents section of this page.

July 6, 2018 – Notice Regarding FTC Lawsuit

The companies listed below have been sued by the Federal Trade Commission (“FTC”) for practices related to their sale of consumer products, principally skin creams, dietary supplements, and e-cigarettes.  The FTC alleges that Defendants deceived consumers by advertising “Risk Free” trials but then billed customers up to $98.71 for the “trial shipment” and also enrolled customers in negative-option continuity plans without consent.  The FTC’s Press Release summarizing the action can be accessed under the Documents section of this page.

The FTC’s lawsuit was filed on June 25, 2018, naming as Defendants the companies and individual below.  The Court entered a Temporary Restraining Order (“TRO”) on June 29, 2018, which includes an asset freeze and appoints a Temporary Receiver to take possession and control of these businesses.  The Temporary Receiver has suspended operations and is conducting a review of the businesses.

Copies of the FTC’s Complaint and the TRO can be accessed under the Documents section of this page.

Defendants named in the FTC’s lawsuit:

  • Triangle Media Corporation dba Triangle CRM, Phenom Health, Beauty and Truth, and E-Cigs
  • Jasper Rain Marketing LLC dba Cranium Power and Phenom Health
  • Hardwire Interactive Inc. dba Phenom Health, Beauty and Truth, and E-Cigs
  • Brian Phillips

At least until the date of the Preliminary Injunction hearing on July 13, 2018, these companies will have very limited operations.  Your best source of information is the Receiver’s website.  If you have additional questions, please sent to info@regulatoryresolutions.com.