Loan providers Engaged in a standard Enterprise

Loan providers Engaged in a standard Enterprise

“Entities constitute a typical enterprise whenever they display either straight or horizontal commonality—qualities that could be demonstrated by a showing of strongly interdependent financial passions or the pooling of assets and profits.” F.T.C. v. System Servs. Depot, Inc., 617 F.3d 1127, 1142-43 (9th Cir. 2010). In determining whether a typical enterprise exists, courts may give consideration to such facets as perhaps the businesses had been under typical payday money center approved ownership and control; if they pooled resources and staff; if they shared telephone numbers, workers, and e-mail systems; and whether or not they jointly took part in a “common endeavor” by which they benefited from the provided company scheme or referred clients one to the other. Id. at 1243.

The FTC points out that “the Tucker Corporate Defendants, wholly owned and controlled by Scott Tucker and Blaine Tucker, shared office space with each other and shared employees with AMG.” (Mot in support of its claim that the Tucker Defendants engaged in a common enterprise. for Prelim. Inj. 24:13-14; see also Ex. 57 to Singhvi Decl., ECF No. 57; Cert. of Int. Events, ECF No. 58; Tucker Defs.’ Am. Ans. ¶¶ 10-12, 15, ECF No. 397). Further, the FTC additionally shows that the Tucker business Defendants and also the Lending Defendants commingled corporate funds through “several thousand excessive and apparently random payments made by the Lending Defendants to your Tucker Corporate Defendants.” (Mot. for Prelim. Inj. 24:13-14; see also Ex. 5 to Singhvi Decl. Continue reading “Loan providers Engaged in a standard Enterprise”