Receivership
Federal Trade Commission v. Ascend Capventures, Inc., et al.
On September 13, 2024 the Federal Trade Commission obtained a Temporary Restraining Order with an Asset Freeze from the U.S. District Court, Central District of California, and the Court appointed Stephen Donell as the Temporary Receiver.
FAQs
Does the Federal Trade Commission represent consumers?
The Federal Trade Commission does not represent consumers.
Stephen Donell has been appointed as Receiver by the US District Court for the Central District of California to, among other things, assume full control over the Receivership Entities named in the 09/13/2024 Order, and take exclusive custody and control of all of the assets, books and records of the Receivership Entities.
What is a Receiver?
For more information on the role of a Receiver, please follow this link.
After I register on the Receiver’s website for this case, do I need to do anything more at this time?
No, the Receiver’s office will email you if it requires any additional information.
Does the Receiver know if I will get my money back?
No, the case is still in its early stages and the investigation has just begun.
Has the Receiver reached any conclusions regarding the Company?
The Receiver has many observations as identified in the Initial Report. However, no conclusions have yet been reached as of September 2024.
If I receive an invoice from Ascend Capventures should I pay it?
No, the company is not engaged in business operations at this time.
I was recently contacted by a third party purporting to act on behalf of Ascend Capventures, ACV Partners, or another of the entities in receivership, and directed to direct my payments to a new address or bank. Are these communications legitimate and should I proceed as instructed?
No. The Receiver is vested with exclusive authority over the entities in receivership, including Ascend Capventures, ACV Partners, and their affiliates. Any communications you receive from any party purporting to be action on behalf of these entities are likely fraudulent, and should be reported to the Receiver.
I have been contacted by personnel in foreign countries regarding the management of my storefront demanding payment. Are these communications legitimate?
Likely no. While it is possible that Ascend Capventures, ACV Partners, or another of the entities in receivership may have outsourced the management of consumer storefronts to third parties, including in foreign countries, the information presently available to the Receiver suggests that such services were not provided consistently with the receivership entities’ agreements with consumers. Any personnel demanding payment for storefront operations or purporting to act on behalf of the entities in receivership should be reported to the Receiver.
The Receiver’s website contains filings titled Notice of Designation of Non-Party. What does this mean?
The court order pursuant to which the Receiver was appointed allows him to designate, under certain circumstances, additional corporate entities that he believes should be brought into the receivership. A designation of a non-party entity as a “Receivership Entity” means that the Receiver has made a preliminary determination that the non-party was subject to the common control of, and engaged in a common enterprise with, the defendant Receivership Entities and their principals, and that the non-party (and its assets, books, and records) should be brought within the Receiver’s control.
Is there a due date by which I must register on the Receiver’s website?
No, there is no due date to register on the Receiver’s website.
May I email the Receiver directly?
Yes – the Receiver, Steve Donell, may be emailed at: steve.donell@fedreceiver.com . Please allow a reasonable time for him to respond. As of October 2024, he is receiving a large number of inquiries from consumers. He may also have someone in his office reply.
If I decide to close my “store”, will this impact my ability to submit a claim in the Receivership?
No. The decision to keep your store open or to close it is entirely yours and it will not impact your ability to submit a claim. Ascend is not operating in any legitimate fashion and if you are provided with any information to the contrary, is it incorrect.
If I Subscribed to the Ascend case on the Receiver’s website, am I automatically included as a creditor?
Yes, if you subscribed to the case, you are included as a creditor.
Has the Receiver initiated a Claims Procedure for consumers/creditors?
No, a Claims Procedure, as of March 20, 2025, has not been initiated. There is no time-table yet as to when this may occur.
I understand that defendants Basta and Leung have agreed to a judgment in this case. What is the significance of the judgment for me, and will this expedite my receipt of any reimbursement for losses?
As reflected in a recent FTC filing, the defendants and the FTC have agreed upon a form of judgment. However, the judgment requires agency approval, and has not yet been entered by the presiding court. The judgment does not contemplate the payment of any funds directly to injured consumers, but specifically provides for the pending receivership to continue. If and when a claims or restitution process is developed, we will post a notice on this website.
An injured consumer has recently encouraged me to contact you or your attorneys to “negotiate” repayment of my losses. Are there any specific actions I need to take?
I was informed by another affected consumer that I can participate in settlement discussions by the Receiver regarding claims against Ascend or its affiliates. How can I participate in such discussions?
The plaintiff FTC has negotiated a tentative settlement of its claims against the defendants in this matter; this settlement does not involve the Receiver. Any suggestion to the contrary is inaccurate. The Receiver is not engaged in any settlement discussions with Ascend or its affiliates. By operation of law, the Receiver has assumed authority and control over Ascend and its affiliates, and is in the process of endeavoring to recover assets for the benefit of the receivership estate and its creditors, including affected consumers. Put another way, in his capacity as Receiver, the Receiver does not need to “settle” with entities under his authority and control. If and when a claims process for affected consumers is developed, the Receiver will post a notice on this website.
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