STIPULATED PERMANENT INJUNCTION AND FINAL...

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SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES

THE PEOPLE OF THE STATE OF Case No.: BC328584 CALIFORNIA,

STIPULATED PERMANENT Plaintiff, INJUNCTION AND FINAL

JUDGMENT AGAINST v. DEFENDANTS FAMILY FIRST

FAMILY FIRST ADVANCED ESTATE ADVANCED ESTATE PLANNING,FAMILY FIRST INSURANCE

PLANNING, a California corporation;FAMILY FIRST INSURANCE SERVICES, a California corporation; AMERICANINVESTORS LIFE INSURANCE

SERVICES, AMERICAN INVESTORSLIFE INSURANCE COMPANY, INC.,AND JOHN OWEN

COMPANY, INC., a Kansas corporation;GROUP LEGAL SERVICES, INC., a California corporation; SENIOR LAWPRACTICE GROUP, A PROFESSIONAL CORPORATION, formerly known as ThomasR. Lee, a Professional Corporation, a Californiacorporation; NICK A. MICHAELS; JOHNOWEN; THOMAS R. LEE; and DOES 1 through 200, inclusive,

Department: 308Judge: Hon. Emilie H. Elias

Defendants.

Plaintiff, the People of the State of California on the complaint of Edmund G. Brown Jr.,

1 STIPULATED PERMANENT INJUNCTION AND FINAL JUDGMENT AGAINST

DEFENDANTS FAMILY FIRST ADVANCED ESTATE PLANNING, FAMILY FIRST INSURANCE SERVICES, AMERICAN INVESTORS LIFE INSURANCE COMPANY, AND

JOHN OWEN

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Attorney General, and Steve Poizner, Insurance Commissioner (People or Plaintiff), through

its attorney, Attorney General Edmund G. Brown Jr., by Deputy Attorney General Benjamin G.

Diehl and Defendants Family First Advanced Estate Planning, Family First Insurance Services,

American Investors Life Insurance Company, Inc., and John Owen, appearing personally and

through their respective counsel, Donald Randolph, Skadden, Arps, Slate, Meagher and Flom by

Thomas Nolan, and Pillsbury, Winthrop, Shaw, Pittman LLP, by Anthony Delling, having

stipulated that this Stipulated Permanent Injunction and Final Judgment (hereafter Stipulated

Judgment) may be entered without the taking of evidence, without trial or adjudication of any

issue of fact or law or any adjudication of or decision regarding the substantive merits of any

claim or defense in this case, and Family First Insurance Services and John Owen having further

agreed to resolve administrative claims against them in separate proceedings to be commenced

by the Insurance Commissioner, and good cause appearing therefor,

IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:

1. This Court has jurisdiction of the subject matter hereof and the parties hereto.

2. Venue is proper in this Court.

3. For purposes of this Stipulated Judgment:

i. "Clearly and Conspicuously" means placed and printed such that the

printed information will attract the reader's attention, and that such

information is stated precisely and understandably, in words that are part

of the working vocabulary of the average layperson; and

ii. "Estate Planning Document" means:

(a) any will (including any codicil or any pour-over will); living will;

trust (including any revocable or irrevocable living trust, which

may also be known as an inter vivos trust, testamentary trust,

abstract or certificate of trust); revocation or modification of any

trust; trust amendment; power of attorney (whether durable or not,

2 STIPULATED PERMANENT INJUNCTION AND FINAL JUDGMENT AGAINST

DEFENDANTS FAMILY FIRST ADVANCED ESTATE PLANNING, FAMILY FIRST INSURANCE SERVICES, AMERICAN INVESTORS LIFE INSURANCE COMPANY, AND

JOHN OWEN

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whether for health care, asset management or other purpose);

transfer of title documents connected with the funding or

administration of any trust, the avoidance of probate, or any

probate proceeding; or conservatorship;

(b) any written instruction, summary or explanation concerning any

document identified in part (a) of this definition;

(c) any amendment to or revision of any document identified in part

(a) of this definition; and

(d) any document needed to carry out the funding or administration of

any trust, probate avoidance mechanism or probate proceeding.

However, the term "Estate Planning Document" excludes any annuity or other insurance product,

as well as any documents relating to the terms, use, conditions, exclusions, transfer, ownership,

administration, beneficiary designations or funding of an annuity or insurance contract, provided

that such documents are not used to offer or sell documents identified in subparagraphs (a) or (c)

above.

4. Pursuant to Sections 17203 and 17535 of the Business and Professions Code and

sections 789 and 12928.6 of the Insurance Code, Defendant John Owen, and his successors,

assigns, agents, employees and representatives (except that persons enjoined as agents,

employees and representatives are enjoined solely in those capacities and not in their individual

capacities) who have actual or constructive knowledge of this Stipulated Judgment, are hereby

permanently enjoined and restrained from directly or indirectly engaging in or performing, any of

the following with respect to California consumers:

A. Engaging in any conduct that violates Sections 6125 or 6126 of the Business and

Professions Code, or constitutes the unauthorized practice of law.

3 STIPULATED PERMANENT INJUNCTION AND FINAL JUDGMENT AGAINST

DEFENDANTS FAMILY FIRST ADVANCED ESTATE PLANNING, FAMILY FIRST INSURANCE SERVICES, AMERICAN INVESTORS LIFE INSURANCE COMPANY, AND

JOHN OWEN

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B. Acting as a runner or capper, as those terms are defined in Section 6151 of the

Business and Professions Code, or engaging in any conduct that violates Section 6152 of the

Business and Professions Code.

C. Engaging in any conduct that constitutes a violation of Section 25230 of the

California Corporations Code, including acting as an Investment Adviser as that term is defined

by Section 25009 of the California Corporations Code, without obtaining a license required by

Section 25230 of the California Corporations Code.

D. Directing to consumers aged 65 years of age or older advertisements or other

devices designed to produce leads based on a response from a potential insured without clearly

and conspicuously disclosing in the advertisements or other devices designed to produce leads

that recipients may be contacted by an insurance agent, if in fact that is the case. The

advertisements or other devices covered under this provision include solicitations or

advertisements promoting Estate Planning Documents or events where Estate Planning

Documents will be marketed.

E. Offering or entering into a home solicitation contract, which shall include any

contract for group or pre-paid legal services, without fully complying with Civil Code sections

1689.5 through 1689.7.

F. Engaging in fiduciary abuse as defined in Welfare and Institutions Code section

15610.30.

G. Discouraging any individual from taking a reasonable amount of time to consider

or review, either in private or with another person not then present, each document an individual

is requested to sign or signs in connection with any Estate Planning Document; any document

relating to the terms, use, conditions, exclusions, transfer, ownership, administration, beneficiary

designations or funding of an annuity or insurance contract; or any insurance product including

any annuity offered or sold, before the individual is requested to sign such document(s).

4 STIPULATED PERMANENT INJUNCTION AND FINAL JUDGMENT AGAINST

DEFENDANTS FAMILY FIRST ADVANCED ESTATE PLANNING, FAMILY FIRST INSURANCE SERVICES, AMERICAN INVESTORS LIFE INSURANCE COMPANY, AND

JOHN OWEN

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H. Using the terms "seminar," "class," "informational meeting," or substantially

equivalent terms to characterize the purpose o