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Mark Bernet
Receiver

MOBE (Updated 4/23/2020)

Mark J. Bernet, Receiver

• MOBE Ltd. (Malaysia)

• MobeProcessing.com, Inc. (US)

• MobeTraining.com, Inc. (US)

• Transaction Management USA, Inc. (US)

• MOBE Pro Ltd. (UK)

• MOBE Online Ltd. (Mauritius)

• 9336-0311 Quebec, Inc. (Canada)

• MattLloydPublishing.com, Pvt (Australia)

• MOBE Inc. (Panama)

Tampa, Florida

April 23, 2020

There has been some activity during the past several months. Following is an update.

Permanent Injunction and Money Judgment against MattLloyd. On March 5, 2020, the Court entered an order approvingthe Consent Motion for Entry of Stipulated Final Order for Permanent Injunction and Monetary Judgment as to Matthew Lloyd McPhee. A copy of that order is posted on my website. The Court's order approved an agreement between the FTC and Matt Lloyd, which calls for the following:

• Matt Lloyd is permanently enjoined from creating, advertising, marketing, promoting, offering for sale, or selling, any"Business Coaching Program" or any "Investment Opportunity." The term "Business Coaching Program" is defined to mean any program, plan, or product, including those related to work-at-home opportunities, that is represented, expressly or by implication, to train or teach a participant orpurchaser how to establish a business or earn money or other consideration through a business or other activity.

The term "Investment Opportunity" is defined to mean anything, tangible or intangible, that is offered, offered for sale, sold, or traded based wholly or in part on representations, either express or implied, about past, present, or future income, profit, or appreciation.

• Judgment is entered infavor of the FTC and against Matt Lloyd for $318,512,336. This represents the amount the FTC and Matt Lloyd agreed was raised through MOBE's operations. As part of the judgment, Matt Lloyd is directed to turn over to me various assets, most of which has already been accomplished or is in process.

Default Judgment against MOBE Entities. On April 13, 2020, the Court entered an order adopting a Report and Recommendation issued by Magistrate Judge Irick, which amounts to a default judgment against the defendants MOBE Ltd., Transaction Management USA, Inc., MOBETraining.com, Inc., 9336-0311 Quebec Inc., MOBE Pro Limited, MOBE Inc., MOBE Online Ltd., MattLloydPublishing.com PtyLtd. and MOBEProcessing.com, Inc.(the "Receivership Defendants"). The matter was considered a "default" because the Receivership Defendants did not file any papers with the Court to contest the allegations made against them by the FTC. Substantively, the Court's order is essentially identical to the agreed order against Matt Lloyd, in that (i) the Receivership Defendants are permanently enjoined from creating, advertising, marketing, promoting, offering for sale, or selling, any "Business Coaching Program" or any "Investment Opportunity," and (ii) the FTC obtained a money judgment for $318,512,336.

Matt Lloyd Settlement with Receiver. I reported previously that the Court approved a settlement between Matt Lloyd and me, calling for Matt Lloyd to turn over his interests in his Fiji and Costa Rica resorts and in two Kuala Lumpur apartments, subject to his right to purchase them back from me, for cash payments. With respect to the properties:

• Matt Lloyd has exercised his purchase option on the Costa Rica resort and paid the agreed price.

• One of the two Kuala Lumpur apartments has been sold. The money is in escrow, and I am working through Malaysian anti-money-laundering laws to have the funds transferred to me.

• Matt Lloyd will have until September to purchase his interest back in the Fiji resort and in the second Kuala Lumpur apartment.

Steven Bransfield.Mr. Bransfield's bankruptcy case is continuing. Many individuals filed proofs of claim by the January 6, 2020 deadline. Mr. Bransfield's attorney has filed objections to most of those claims, arguing that Mr. Bransfield did not make fraudulent misrepresentations, but in reality anticipating that most of the persons who filed claims would not be in a position to proceed to litigate the matter. To preserve their claims in Mr. Bransfield's bankruptcy case over objections, claimants were required to follow the rules and orders of the bankruptcy court; this is difficult for claimants who are not attorneys or who are not represented by attorneys.

I reported previously that Mr. Bransfield and the FTC entered into a settlement agreement and submitted it to the bankruptcy court for approval. The bankruptcy court now has approved that settlement. Broadly, the settlement:

• Permanently enjoins Mr. Bransfield from making false representations in connection with the sale of consumer products or investment opportunities;

• Provides for the entry of a money judgment against Mr. Bransfield and in favor of the FTC for $4,710,149.00, with the judgment to be suspended pending Mr. Bransfield's compliance with and performance under the settlement;

• Provides that the money judgment would not be dischargeable in the bankruptcy case, which means that even after bankruptcy, Mr. Bransfield would still be bound by the judgment; and

• Provides that Mr. Bransfield has and would make no claim to funds I have previously recovered in connection with my duties as receiver.

Russell W. Whitney, Jr. The Defendant Russell Whitney died on November 20, 2018. At the time, he had been negotiating a settlement with theFederal Trade Commission, and after his death his heirs continued the negotiation and reached a settlement, which has been approved by a probate court in Florida state court, and by Judge Daultonin the MOBE case.Judge Daulton's December 18, 2019 Order, which is posted at www.bernet-receiver.com, involves the following:

• The Whitney Estate abandoned all of its claims to funds transferred to me by Whitney personally in the summer of 2018, in the amount of approximately USD $614,000;

• The Whitney Estate abandoned all of its claims to funds transferred to me in June, 2018, by Whitney's companies Shark Speaker LLC, Wealth Building Technologies (f/k/a Expert Media Agency) and Expert Sales Agency, totaling approximately USD $438,000;

• The Whitney Estate abandoned all claims to credit card reserves held by Esquire Bank, N.A. or Maverick Bankcard, held in the name of Wealth Building Technologies, and Maverick sent me $92,836.72;

• The Whitney Estate assignedto me its claim for payment of a loan made by Whitney and Shark Speaker LLC to Advisors Education LLC in April, 2018, in the amount of USD $45,000. To date, I have collected approximately half of the amount owed;

• Iberia Bank sent me USD $182,866 held in accounts in thename of Whitney;

• Applied Bank sent me approximately USD $9,000 from an account in the name of Whitney;

• JPMorgan Chase Bank sent me approximately USD $13,400 from accounts held in the name of Whitney;

• Coinbase, Inc. liquidated the cryptocurrencies contained in Whitney's Coinbase account and sent me the proceeds totaling $10,452.49.

Qualpay/Synovus. Recall that early in the case, I demanded that Qualpay and Synovus Bank turn over approximately $6.3 million in credit card reserves. They resisted my demand, arguing that the money was theirs and not subject to turnover. They filed motions with the Court arguing that they "owned" the money, but Judge Daulton denied their motions and ruled that the money was owned by the receivership estates. I subsequently asked Judge Daulton to appoint Burt Wiand as a special receiver in this case, to handle Qualpay/Synovus matters, to avoid the expenses of Synovus's threats to move to disqualify me over my law firm's representation of a small bank that Synovus purchased effective December 31, 2018. After Burt's appointment, Synovus and Qualpay filed motions to intervene, or for permission to assert claims to get the $6.3 million back. The same order in which Judge Daulton approved my settlement with Matt Lloyd also denies Synovus's motion to intervene. Synovus has appealed Judge Daulton's ruling. I understand that Burt (the Special Receiver), the FTC and Synovus are continuing to discuss possible settlements.

Funds Collected. I have posted on my website (www.bernet-receiver.com) spreadsheets showing activity in the receivership bank accounts through March 31, 2020. I am actively working to collect additional funds. Details will be provided as appropriate.

Mike and Mike. The FTC filed a lawsuit against Mike Giannulis and Mike Williams, known as "Mike & Mike," in March 2020. The lawsuit included a motion requesting that the Court approve a settlement that the parties had reached. Thereafter, on April 13, 2020, Judge Carlos E. Mendoza entered an order approving the settlement. Broadly, under the court-approved settlement:

• Messrs. Giannulis and Williams are permanently enjoined from creating, advertising, marketing, promoting, offering for sale, or selling, any "Business Coaching Program" or any "Money Making Method." The term "Business Coaching Program" is defined to mean

any program, plan, or product, including those related to work-at-home opportunities, that is represented, expressly or by implication, to train or teach a participant or purchaser how to establish a business or earn money or other consideration through a business or other activity.

The term "Money Making Method" is defined to mean:

any method, process, or technique that is offered, offered for sale, or sold, based wholly or in part on representations, either express or implied, that such method, process, or technique is non-generic or not generally available to the public, and will generate income for users or prospective purchasers, anything, tangible or intangible, that is offered, offered for sale, sold, or traded based wholly or in part on representations, either express or implied, about past, present, or future income, profit, or appreciation.

• Messrs. Giannulis and Williams are permanently enjoined from owning or controlling any interest in any entity that provides any "Business Coaching Program" or promotes or sells any "Money Making Method."

• Judgment is entered in favor of theFTC and against Messrs. Giannulis and Williams for $31.6 million, representingthe amount theparties agreed was raised through the activities of Messrs. Giannulis and Williams. The judgment is suspended, conditioned upon Messrs. Giannulis and Williams (i) paying to the FTC $760,000, and (ii) turning over possession to me of certain personal assets, including a software program, a motorcycle, a set of silver, gold and platinum rings, and two Rolex watches. My job is to liquidate these assets.

The rings were awarded to Messrs. Giannulis and Williams while they worked for MOBE, based on achieving certain financial milestones. I am uncertain of their value given that all of them say "MOBE" on them. Each of the Rolexwatches is a Perpetual Oyster Day-Date, commonly known as the "President." Both include a diamond face and a diamond bezel. Iam having them reviewed by an authorized Rolex dealer to verify authenticity, but I am confident that they are genuine and the diamonds are Rolex-certified. The motorcycle, the rings and the Rolexes will be sold at a public auction. I will post details when they become available. Pictures and videos will be posted on my social media sites.

Matt Lloyd's Facebook Posts. Over the past month or so I have received reports from many of you that "Matt Lloyd is at it again." Specifically, I have been directed to online videos of Matt Lloyd discussing the coronavirus pandemic and other current events. He also alludes to a video-editing service. I do not know what Matt Lloyd is thinking or planning, but it is not clear to me that these videos would constitute a violation of the Permanent Injunction. I have referred the matter to the FTC, and I also continue to monitor. I am confident that Mr. Lloyd fully understands he is permanently enjoined from selling, advertising or promoting any "Business Coaching Program" or any "Investment Opportunity" as defined.

Again, I want all to know that I am aware of your frustration with the length of time that this process is taking. This, unfortunately, is the nature of litigation. I promise you, I am working as diligently as I possibly can, and I know the FTC is doing so as well.

Be sure to check back for further updates.

Mark Bernet