Settlement - Motion File Stamped

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IN THE UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF TEXAS
SHERMAN DIVISION
IN RE:
Case No. 14-42187
Chapter 7
1SOLTECH, INC.
Debtor
MOTION TO APPROVE SETTLEMENT PURSUANT TO

FEDERAL RULE OF BANKRUPTCY PROCEDURE 9019
NO HEARING WILL BE CONDUCTED ON THIS MOTION UNLESS A WRITTEN OBJECTION IS FILED WITH THE
CLERK OF THE UNITED STATES BANKRUPTCY COURT AND SERVED UPON THE PARTY FILING THIS PLEADING
WITHIN TWENTY-ONE (21) DAYS FROM DATE OF SERVICE UNLESS THE COURT SHORTENS OR EXTENDS THE
TIME FOR FILING SUCH OBJECTION. IF NO OBJECTION IS TIMELY SERVED AND FILED, THIS PLEADING SHALL
BE DEEMED TO BE UNOPPOSED, AND THE COURT MAY ENTER AN ORDER GRANTING THE RELIEF SOUGHT. IF
AN OBJECTION IS FILED AND SERVED IN A TIMELY MANNER, THE COURT WILL THEREAFTER SET A HEARING.
IF YOU FAIL TO APPEAR AT THE HEARING, YOUR OBJECTION MAY BE STRICKEN. THE COURT RESERVES THE
RIGHT TO SET A HEARING ON ANY MATTER.
COMES NOW, Mark A. Weisbart, in his official capacity as Chapter 7 Trustee of the
bankruptcy estate of 1SolTech, Inc. (the Trustee), and hereby files this Motion to Approve
Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019 (this Motion to Approve
Settlement), and in support respectfully state as follows:
I.
PRELIMINARY STATEMENT
Trustee by this Motion to Approve Settlement seek the Courts approval of a compromise
of the State of Texass claims against the bankruptcy estate pursuant to Rule 9019 of the Rules of
Bankruptcy Procedure (Rule 9019). Texas, through an underlying enforcement action in
Travis County District Court, has asserted claims against the Debtors bankruptcy estate under
Texas law which stem from the Debtors violations of the Texas Deceptive Trade Practices
Consumer Protection Act, TEX. BUS. & COM. CODE 17.46, et seq. (the DTPA). The Trustee
and Texas have reached a settlement of Texass DTPA claims against the bankruptcy estate
which will completely resolve the enforcement action with a global settlement amongst all
Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019
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defendants and which is fair and equitable and in the best interests of the Debtors bankruptcy
estate. Accordingly, the Trustee seeks the Courts approval of settlement pursuant to Rule 9019.
II.
1.
JURISDICTION AND VENUE
This Court has jurisdiction over this matter pursuant to 28 U.S.C. 157 and
1334. This is a core proceeding pursuant to 28 U.S.C. 157(b). Venue is proper pursuant to 28
U.S.C. 1408 and 1409. Rule 9019 provides the legal predicate for the relief sought.
III.
2.
FACTUAL BACKGROUND
1SolTech, Inc. (the Debtor) is a company that was founded in Farmers Branch,
Texas in 2008 by Sandra Sandy Fardi and Hossein Zak Fardi which manufactured and sold
solar panels for residential and commercial use. At all relevant times to the events described
herein, the Debtors management consisted solely of Zak Fardi, Sandy Fardi and Ali Enrique
Razavi.
A.
State of Texas Initiates a Consumer Protection Enforcement Action Against the

Debtor.
3.
On September 17, 2013, the State of Texas, acting by and through the Office of
the Texas Attorney General, filed an enforcement action against the Debtor and its owners and
directorsSandy Fardi, Zak Fardi, and Ali Enrique Razavi 1 (collectively, the Defendants)
in State of Texas v. 1SolTech, Inc., et al., Case No. D-1-GV-13-001059, in the 261st District
Court of Travis County, Texas (the Enforcement Action), alleging causes of action for
multiple violations of the DTPA based on the Debtors sale of solar panels which were falsely
labeled as Made in the U.S.A. and falsely labeled as certified to meet safety and performance
standard UL 1703 by the Nationally Recognized Testing Laboratory Intertek (the 2nd
Generation Panels). By the Enforcement Action, the State of Texas seeks restitution for all
1
Ali Enrique Razavi was added as a Defendant on July 14, 2014.
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harmed consumers estimated to be over six million dollars, civil penalties for each violation of
the DTPA which allows for a penalty of up to $20,000 per violation with no cap, as well as
attorneys fees and costs under the Texas Government Code.
B.
The Debtor Initiates a Chapter 11 Bankruptcy Case.

4.
On October 13, 2014, the Debtor initiated the above-styled and numbered case by
filing a petition for relief under chapter 11 of the Bankruptcy Code (the Bankruptcy Case).
5.
Accordingly, the State of Texas filed a proof of claim (Claim #32) in the
Bankruptcy Case in an unliquidated amount for restitution, civil fines and penalties, and
attorneys fees (the Texas Proof of Claim).
C.
A Chapter 11 Trustee is Appointed and the Case is Converted to Chapter 7.

6.
On January 21, 2015, the United States Trustee filed a motion to convert the
Bankruptcy Case to one under Chapter 7, or in the alternative to appoint a Chapter 11 Trustee
[Dkt. 87]. On April 14, 2015, the Court entered an Agreed Order granting the United States
Trustees motion in-part and ordering that a Chapter 11 Trustee be appointed [Dkt. 155].
Pursuant to the Agreed Order, Mark A. Weisbart (the Trustee) was notified and indicated his
acceptance of his selection and appointment as the Chapter 11 Trustee [Dkt. 156].
7.
Accordingly, on April 23, 2015, the United States Trustee filed a motion for
approval of the Trustees appointment [Dkt. 162].
That same day, the Trustee filed an
application for the estate to engage himself and his law firm to serve as attorneys for the Trustee
[Dkt. 163].
8.
Also on April 23, 2015, the Trustee filed a motion to convert the Debtors Chapter
11 Bankruptcy Case to a case under chapter 7 of the Bankruptcy Code [Dkt. 164].
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On April 29, 2015, the Court entered an order granting the Trustees application
to engage Mr. Weisbart and his law firm to serve as attorneys for the Trustee [Dkt. 176]. Also
on April 29, 2015, the Court entered an Order granting the United States Trustees application to
approve Mr. Weisbarts appointment as Trustee [Dkt. 177].
10.
On April 30, 2015, the Court entered an Order granting the Trustees motion to
convert the case to one under Chapter 7 of the Bankruptcy Code [Dkt. 179].
D.
The Parties Reach a Settlement of the Enforcement Action and Desire Court Approval
Pursuant to Rule 9019.
11.
Subsequently, representatives for the State of Texas engaged in arms-length
negotiations with the Trustee regarding the Parties respective rights, obligations and liability,
and as a result, the Parties desire to enter into a settlement consisting of an Agreed Final
Judgment and Permanent Injunction (the Settlement Agreement) to be entered in the
Enforcement Action which will completely resolve all liability by and between the Debtors
bankruptcy estate and the State of Texas as part of a global settlement that includes all
Defendants.
12.
Specifically, the Settlement Agreement provides for the following relief against
the bankruptcy estate: (a) injunctive relief precluding the Debtor from future violations of the
DTPA; (b) notice to be provided by the bankruptcy estate to purchasers of the Debtors 2nd
Generation Panels of the bankruptcy case and certain information pertaining to the uncertified
panels; (c) restitution for harmed consumers in the amount of $2,754,322.98 allocated amongst
designated purchasers of the uncertified 2nd Generation Panels (the Restitution Amount); (d)
civil penalties in the amount of $5,000,000.00 (the Civil Penalties Amount); and (e)
attorneys fees incurred in obtaining the award of civil penalties in the amount of $150,000.00
(the Civil Penalties Attorneys Fees) (collectively, the Restitution Amount, Civil Penalties
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Amount and the Civil Penalties Attorneys Fees are referred to herein as the Settlement
Amount). A true and correct copy of the Agreed Final Judgment and Permanent Injunction for
which approval is sought is attached hereto as Exhibit A and incorporated by reference as
though fully set forth herein.
13.
The State of Texas shall have an allowed unsecured claim in the Settlement
Amount in the Bankruptcy Case and that such allowed claim will supersede the Texas Proof of
Claim previously filed. The Parties further agree that the Civil Penalties Amount and the Civil
Penalties Attorneys Fees allocated thereto constitute a fine or penalty pursuant to 11 U.S.C.
726(a)(4). Additionally, the Parties agree that the Restitution Amount shall constitute an allowed
unsecured claim but that, to the extent any distribution is made to unsecured creditors in the
Bankruptcy Case, the Trustee expressly reserves the right to challenge the treatment of the
Restitution Amount pursuant to 11 U.S.C. 726 in the Bankruptcy Case.
14.
Trial in the Enforcement Action was set for October 5, 2015; however, in light of
the proposed compromise, the parties to the Enforcement Action passed the October 5, 2015
setting by agreement in order to obtain the Courts approval of the Settlement Agreement.
Accordingly, the Trustee respectfully submits that the settlement represents a fair and equitable
resolution of the Enforcement Action and should be approved as submitted to the Court.
IV.
15.
RELIEF REQUESTED
Settlements and compromises are a normal part of the process of
reorganization. Protective Comm. of Stockholder of TMT Trailer Ferry, Inc. v. Anderson (In re
TMT Trailer Ferry, Inc.), 390 U.S. 414, 424 (1968), on remand, TMT Trailer Ferry, Inc. v.
Kirkland, 471 F.2d 10 (5th Cir. 1972). The Court has the discretionary authority to approve a
settlement under Bankruptcy Rule 9019(a). See TMT Trailer, 390 U.S. at 424; Continental
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Airlines, Inc. v. Airline Pilots Assn Intl. (In re Continental Airlines, Inc.), 907 F.2d 1500, 1508
(5th Cir. 1990). After notice and hearing, a trustee or debtor may compromise or settle claims in
the administration of the estate with the approval of the Court. See FED. R. BANKR. P. 9019(a).
Whether to approve a compromise is a matter within the sound discretion of the Court. See In re
Aweco, Inc., 725 F.2d 293, 29798 (5th Cir. 1984). The Court should approve a settlement
agreement if the settlement is fair and equitable and in the best interest of the estate. Rivercity
v. Herpel (In re Jackson Brewing Co.), 624 F.2d 599, 602 (5th Cir. 1980).
16.
The terms fair and equitable mean that: (i) senior interests are entitled to full
priority over junior interests; and (ii) the compromise is reasonable in relation to the likely
rewards of litigation. In re Cajun Electric Power Coop., 119 F.3d 349, 355 (5th Cir. 1997); In
re Jackson Brewing Co., 624 F.2d at 602. In determining whether a proposed compromise is fair
and equitable, a Court should consider the following factors:
a.
the probabilities of ultimate success should the claim be litigated;
b.
the complexity, expense, and likely duration of litigating the claim;
c.
the difficulties of collecting a judgment rendered from such litigation; and
d.
all other factors relevant to a full and fair assessment of the wisdom of the
compromise.
TMT Trailer, 390 U.S. at 424.

Analysis of Proposed Settlement
17.
In the instant case, the Trustee believes that the proposed compromise satisfies the
requirements established by the Supreme Court in TMT Trailer, and as further elaborated by the
Fifth Circuit.
See 471 F.2d at 10.
The Trustee believes that a prompt resolution of the
Enforcement Action is in the best interests of not only the Debtors bankruptcy estate, but also
the creditors in this case because it will result in a decrease of the Debtors financial obligations.
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The reduced costs and certainty associated with the proposed Settlement Agreement provide
benefits to the estate, including all unsecured creditors.
18.
Moreover, the Parties agree that the Civil Penalties Amount and the Civil
Penalties Attorneys Fees allocated thereto shall be treated in the Bankruptcy Case pursuant to 11
U.S.C. 726(a)(4), thereby ensuring that those respective amounts under the Texas Proof Claim
will not impact distribution to any secured, priority or unsecured creditor in this case.
Additionally, the Restitution Amount under the Settlement Agreement represents a significant
decrease of the estates potential liability for sales of the 2nd Generation Panels. Furthermore,
the Settlement Agreement provides for affirmative notice to be provided to all purchasers of the
2nd Generation Panels. As a result, the Settlement Agreement has a public health and safety
component due to the risk of fire associated with the continued use of the uncertified 2nd
Generation Panels.
19.
Probabilities of Ultimate Success. Given that the Restitution Amount in the
Settlement Agreement is approximately $3,245,677.02 less than the amount initially sought and
the uncertainties attendant to litigating the matter, including risks of delay and exposure to
additional attorneys fees, the Settlement Agreement represents an acceptable and preferred
compromise for the Debtor. In the event the Enforcement Action was litigated, the Parties
anticipate that the Debtors liability could far exceed amounts under the Settlement Agreement.
20.
Complexity, Expense, and Likely Duration. Without the Settlement Agreement,
the Parties could potentially spend a considerable amount of time litigating their respective
claims and defenses arising from the Enforcement Action in connection with the Debtors
liability. The Trustee believes that the costs of such litigation weigh strongly in favor of
settlement.
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Difficulty in Collecting Judgment. The Trustee believes this factor is inapplicable
and, as a result, it has not been considered by this analysis.

22.
Other Factors. The Trustee believes that the proposed compromise is equitable
and in the best interests of the estate because it will not impact any distribution to secured or
priority creditors in this case. Further, the Restitution Amount under the proposed settlement
reduces a sizeable claim which could impact any distribution to unsecured creditors. Moreover,
the civil penalties and attorneys fees will not impact any distribution to any secured, priority or
unsecured creditor in this case. Additionally, the proposed compromise allows for liquidation of
the State of Texas Proof of Claim with certainty, and will further the prompt administration of
the estate by providing notice of the bankruptcy case to purchasers of the uncertified 2nd
Generation Panels. Accordingly, the proposed compromise achieves a result consistent with the
dictates of the Bankruptcy Code and is in the best interests of the bankruptcy estate.
23.
The Trustee submits that this proposed settlement is the product of an arms-length
bargain.
24.
Pursuant to Local Bankruptcy Rule 9019, the Trustees affidavit in support of the
settlement is attached to this Motion to Approve Settlement as Exhibit B.

V.
PRAYER
WHEREFORE, the Mark A. Weisbart, Trustee, respectfully requests that the Court: (i)
grant the Motion to Approve Settlement; (ii) approve the settlement and authorize him to take
such actions deemed necessary and appropriate to enter and consummate the settlement; (iii)
enter an order granting the relief requested by this Motion to Approve Settlement substantially in
the form of the proposed order attached to this Motion as Exhibit C; and (iv) for such other
relief as the Court deems just and proper.
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Respectfully submitted,
/s/ Mark A. Weisbart
Mark A. Weisbart
Texas Bar No. 21102650
THE LAW OFFICE OF MARK A. WEISBART
12770 Coit Road, Suite 541
Dallas, Texas 75251
(972) 628-4903 Phone
(972) 628-4905 Fax
weisbartm@earthlink.net
COUNSEL FOR CHAPTER 7 TRUSTEE
CERTIFICATE OF SERVICE
The undersigned hereby certifies that a copy of the foregoing instrument was served on
the attached mailing matrix either through the Court's electronic notification system as permitted
by Appendix 5005 III. E. to the Local Rules of the U.S. Bankruptcy Court for the Eastern
District of Texas, or by first class United States Mail, postage prepaid on this the 13th day of
October, 2015.
/s/ Mark A. Weisbart
Mark A. Weisbart
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NO. D-1-GV-13-001059
STATE OF TEXAS,
Plaintiff,
v.
1 SOLTECH INC.; SANDRA SANDY
FARDI; HOSSEIN ZAK FARDI; and
ALI ENRIQUE RAZAVI,
Defendants.
IN THE DISTRICT COURT OF
TRAVIS COUNTY, TEXAS
261ST JUDICIAL DISTRICT
AGREED FINAL JUDGMENT AND PERMANENT INJUNCTION

TO THE HONORABLE JUDGE OF SAID COURT:
On this date, came for hearing in the above-entitled and numbered cause in which the
STATE OF TEXAS (Plaintiff or State), acting by and through Attorney General of Texas,
KEN PAXTON, on behalf of his Consumer Protection Division, is Plaintiff, and 1 SOLTECH
INC.; SANDRA SANDY FARDI; HOSSEIN ZAK FARDI; and ALI ENRIQUE RAZAVI,
(collectively, the Defendants), are Defendants. Through their respective attorneys of record,
the parties wish to make the following stipulations and agree to entry of this AGREED FINAL
JUDGMENT AND PERMANENT INJUNCTION (hereafter AFJPI or Judgment).
I. STIPULATIONS
The parties agree to entry of this Judgment, and at their request, the Court finds that:
A.
The Court has jurisdiction over the subject matter of this action.
B.
The Court has jurisdiction over the Defendants in this matter.
C.
Venue is proper in Travis County, Texas.
D.
The activities of Defendants constitute trade and/or commerce.
E.
Entry of this Judgment is in the public interest.
Exhibit "A"
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F.
This Judgment is non-appealable.
G.
Nothing in this Judgment in any way affects any individuals right to bring a cause
of action under the DTPA, or any other law or regulation of this State.
H.
The Court shall have continuing jurisdiction to enforce this Judgment, save and
except as preempted by the provisions of title 11 of the United States Code as to
Defendant 1 SOLTECH INC.
I.
Defendants acknowledge notice of this permanent injunction and acceptance of

same; therefore no writ need be issued.
J.
Defendant 1SOLTECH INC. acknowledges that it bought solar panels that were
manufactured in China, and advertised and resold the Chinese panels as being
Made in the USA by 1 SolTech, Inc.
K.
Defendant 1 SOLTECH INC. acknowledges that it advertised and sold solar panels
as having met certification and testing standards, when the panels had not been
certified.
II. DEFINITIONS
For purposes of this Agreed Final Judgment and Permanent Injunction, the following
definitions shall apply:
A.
Consumer means an individual, partnership, corporation, or entity of any kind,
including this state or a subdivision or agency of this state, which seeks or acquires by purchase or
lease, any goods or services.
B.
DTPA means the Texas Deceptive Trade Practices - Consumer Protection Act,
TEX. BUS. & COM. CODE 17.41 et seq. (West, Westlaw through 2013, Third Called Session).
State of Texas v. 1 SolTech Inc., et al.

Agreed Final Judgment and Permanent Injunction
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Exhibit "A"
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C.
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Defendants shall mean 1 SOLTECH INC.; Sandra Sandy Fardi; Hossein
Zak Fardi; Ali Enrique Razavi; their officers; agents; servants; employees; all other persons in
active concert or participation with them, whether acting directly or through any person, business
entity, limited liability company, trust, corporation, partnership, subsidiary, division, assumed or
fictitious business name, or device; and all entities in which they have an ownership interest, serve
as officers or directors, have formed, created, are affiliated with, or control, and where such entity
is engaged in or assists others engaged in the advertising, promotion, offering for sale, sale or
distribution or provision of solar panel-type goods and/or services. For purposes of this Final
Judgment, an entity shall be considered to be formed, created, affiliated with, or controlled by
Defendants if Defendants have a more than 10% ownership of, serve as officers, directors or
members of, or share management, ownership, use of facilities, equipment or employees with, an
entity. However, Defendants shall not include the Trustee or any of his agents, employees and
attorneys.
D.
Represent means to make an affirmative declaration of the representation orally,
in writing, or through other communication.

E.
Clear and conspicuous and Clearly and conspicuously mean:

(1)
For print communications, the message shall be in a type size and location
sufficiently noticeable for an ordinary consumer to read and comprehend it,
in print that contrasts with the background against which it appears.
(2)
In communications disseminated orally, the message shall be delivered in a

volume and cadence sufficient for an ordinary consumer to comprehend it.

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Exhibit "A"
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(3)
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In communications made through an electronic medium (such as television,

video, radio, and interactive media such as the Internet, online services, and
software), the message shall be presented simultaneously in both the audio
and visual portions of the communication.
In any communication
presented solely through visual or audio means, the message may be made
through the same means by which the communication is presented. Any
audio message shall be delivered in a volume and cadence sufficient for an
ordinary consumer to hear and comprehend it. Any visual message shall
be of a size and shade, with a degree of contrast to the background against
which it appears, and shall appear on the screen for a duration and in a
location sufficiently noticeable for an ordinary consumer to read and
comprehend it. The message shall be in understandable language and
syntax. Nothing contrary to, inconsistent with, or in mitigation of the
message shall be used in any communication.
F.
Solar Product(s) means solar panels and/or modules; components thereof; and
any product, equipment or services sold by Defendants to be used in the installation, power
generation, or maintenance of the solar panels and/or modules.
G.
Bankruptcy Case means that certain bankruptcy case styled In re 1SolTech,
Inc., Case No. 14-42187 pending in the United States Bankruptcy Court for the Eastern District of
Texas, Sherman Division.

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Exhibit "A"
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H.
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Trustee means Mark A. Weisbart, in his capacity as the duly appointed and
acting chapter 7 trustee of the bankruptcy estate of Defendant 1 SOLTECH, INC. in the
Bankruptcy Case.
III. INJUNCTIVE RELIEF
IT IS ORDERED, ADJUDGED AND DECREED that Defendants, their officers,
agents, employees, and attorneys, and all persons in active concert or participation with them, are
hereby permanently ENJOINED from:
A.
Failing to Clearly and Conspicuously disclose on all marketing, advertising,
solicitations, or other representations of any kind of Solar Products the national origin of the Solar
Products;
B.
Making representations of any kind, including but not limited to verbal or written
representations, that the Solar Products are Made in USA, manufactured in the United States of
America, or are assembled solely or largely from components made or manufactured in the United
States of America; or making other representations of this kind regarding Defendants Solar
Products, unless those representations are factual;
C.
Representing that the Solar Products offered for sale or sold by Defendants have
met certification or testing requirements of any regulatory authority or body, or any testing
authority or body, unless those representations are factual;
D.
Furnishing Solar Products which are not manufactured in the United States of
America to a consumer if Defendants represent to said consumer that it would be furnished Solar
Products that were manufactured in the United States of America;

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Exhibit "A"
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E.
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Furnishing Solar Products which are not certified to meet the UL 1703 standard by
an authorized testing facility to a consumer if Defendants represent in any way, including through
statements on Defendants website, data sheets, labeling, verbal representations, utilization of
certification marks, or any other representations of any kind, that Defendants Solar Products are
certified to meet the UL 1703 standard;
F.
Representing that the Solar Products meet or exceed the requirements of any state
or federal law, regulation, or rule requiring that products be made in the United States of America
or the State of Texas, unless those representations are factual;
G.
Representing that warranties covering the Solar Products include rights, remedies,
and terms of length or scope of coverage which they do not; and

H.
Utilizing order acknowledgment forms, invoices, pro forma invoices, shipping
confirmation, bills of lading, or any other correspondence or documentation templates that include
or make reference to made in the USA, made in America, or any other similar statement of national
origin, when selling, offering to sell, or otherwise corresponding regarding the sale or availability
for sale, of Solar Products, unless the Solar Products subject of the documentation are or were
manufactured in the United States by Defendants.
IV. NOTICE TO HARMED CONSUMERS
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that within 120 days of
the entry of this Judgment, Defendant 1 SOLTECH INC. shall provide notice to the 42 consumers
which are set forth in Exhibit C to the State of Texass Motion for Discovery Sanctions, filed on
July 15, 2015 in the above-styled and numbered Case No. D-1-GV-13-001059, which, for ease of

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Exhibit "A"
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reference and avoidance of doubt, reflects consumers who paid for a 1 SOLTECH INC. Solar
Product that was manufactured after February 14, 2013 as set forth on Exhibit 1 attached hereto.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that within 120 days of
the entry of this Judgment, Defendant 1 SOLTECH INC. shall, in addition to those consumers
identified in Exhibit 1, provide notice to all purchasers of a 1 SOLTECH INC. Solar Product
directly from 1 SOLTECH INC that was manufactured after February 14, 2013.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the notice described
Section IV of this Judgment shall include the following information:
A. Defendant 1 SOLTECH INC. did not have UL 1703 certifications from
Intertek after February 14, 2013;
B. Any 1 SOLTECH INC. label that includes the Intertek UL 1703 mark after
that date is incorrect; and
C. Contact information for Intertek, including the telephone number, email
address and website for the Intertek Inspector Information Center,
www.intertek.com/inspector-center/.
V. RESTITUTION TO HARMED CONSUMERS
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Plaintiff shall have
and recover Judgment against Defendant 1 SOLTECH INC. as restitution pursuant to Texas
Business and Commerce Code section 17.47(d), to consumers who paid for a 1 SOLTECH INC.
Solar Product that was manufactured after February 14, 2013, the amount of TWO MILLION
SEVEN HUNDRED FIFTY FOUR THOUSAND THREE HUNDRED TWENTY TWO
DOLLARS AND 98 CENTS ($2,754,322.98) with such amount allocated as set forth in Exhibit
C to the State of Texass Motion for Discovery Sanctions, filed on July 15, 2015 in the
above-styled and numbered Case No. D-1-GV-13-001059, which, for ease of reference and

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Exhibit "A"
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avoidance of doubt, reflects consumers who paid for a Solar Product that was manufactured after
February 14, 2013 as set forth on Exhibit 1 attached hereto. However, in the event any
consumers identified on Exhibit 1 file a proof of claim in the Bankruptcy Case that is lower than
the amounts so allocated, the amount contained in the proof of claim shall represent the amount of
restitution due such consumer.
VI. CIVIL PENALTIES
IT IS FURTHER ORDERED THAT:
A.
The State of Texas shall have Judgment and recover from Defendant 1 SOLTECH
INC. the sum of FIVE MILLION DOLLAR AND NO CENTS ($5,000,000.00) as a civil penalty
and not as compensation for actual pecuniary loss.
B.
The State of Texas shall have Judgment and recover from Defendant SANDRA
SANDY FARDI the sum of ONE HUNDRED THOUSAND DOLLARS AND NO CENTS
($100,000.00) as a civil penalty and not as compensation for actual pecuniary loss.
C.
The State of Texas shall have Judgment and recover from Defendant HOSSEIN
ZAK FARDI the sum of THREE HUNDRED THOUSAND DOLLARS AND NO CENTS
D.
The State of Texas shall have Judgment and recover from Defendant ALI
ENRIQUE RAZAVI the sum of ONE HUNDRED THOUSAND DOLLARS AND NO CENTS

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Exhibit "A"
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VII. ATTORNEYS FEES AND COSTS

IT IS FURTHER ORDERED THAT:
A.
The State of Texas shall have Judgment and recover from Defendant 1 SOLTECH
INC. the sum of ONE HUNDRED AND FIFTY THOUSAND DOLLARS AND NO CENTS
($150,000.00) for the reimbursement of attorneys fees, investigative costs, and Court costs to the
Texas Attorney General, which fees were incurred on behalf of Plaintiff in obtaining the award of
civil fines and penalties against Defendant 1 SOLTECH INC. and do not constitute an antecedent
debt with respect to this litigation.
B.
The State of Texas shall have Judgment and recover from Defendant SANDRA
SANDY FARDI the sum of TWENTY FIVE THOUSAND DOLLARS AND NO CENTS
civil fines and penalties against Defendant SANDRA SANDY FARDI and do not constitute an
antecedent debt with respect to this litigation.
C.
The State of Texas shall have Judgment and recover from Defendant HOSSEIN
ZAK FARDI the sum of ONE HUNDRED THOUSAND DOLLARS AND NO CENTS
civil fines and penalties against Defendant HOSSEIN ZAK FARDI and do not constitute an
D.
The State of Texas shall have Judgment and recover from Defendant ALI
ENRIQUE RAZAVI the sum of TWENTY FIVE THOUSAND DOLLARS AND NO CENTS

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civil fines and penalties against Defendant ALI ENRIQUE RAZAVI and do not constitute an
VIII. MISCELLANEOUS
IT IS ORDERED that the State is authorized to monitor compliance with this Agreed
Final Judgment and Permanent Injunction by any lawful method.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the State shall have
all writs of execution and other processes necessary to enforce this Agreed Final Judgment and
Permanent Injunction, except as to any amounts awarded against Defendant 1 SOLTECH INC.
which amounts may only be recovered in the Bankruptcy Case as provided under title 11 of the
United States Code.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that all costs of Court
incurred in this case are taxed against the parties incurring same.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants shall
not represent to the public that this Judgment constitutes approval by Plaintiff or this Court of
any of Defendants actions or business activities.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that if in the future any
definition or provision in this Judgment is inconsistent with the laws of the State of Texas or any
rules or regulations promulgated thereunder, then such laws and/or rules and regulations will
prevail over the terms of this Judgment, provided that the remaining terms of the Judgment not
affected by such laws, rules, or regulations will remain in full force and effect.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that nothing contained

herein shall preclude or waive any partys rights in the Bankruptcy Case in any respect, including,
without limitation, the application of 11 U.S.C. 726 with regard to the characterization in the
Bankruptcy Case of any amounts awarded in this Judgment.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that all relief not
expressly granted herein is denied.
SIGNED AND ENTERED this ________ day ________________, 2015.
JUDGE PRESIDING

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APPROVED AS TO FORM AND SUBSTANCE AND ENTRY REQUESTED:

KEN PAXTON
Attorney General of Texas
CHARLES E. ROY
First Assistant Attorney General
JAMES E. DAVIS
Deputy Attorney General for Civil Litigation
TOMMY PRUDHOMME
Consumer Protection Division
________________________________
NANETTE DINUNZIO
JACOB A. PETRY
Office of the Attorney General
P.O. Box 12548
Austin, Texas 78711
Telephone: (512) 475-4654
Facsimile: (512) 463-1267
nanette.dinunzio@texasattorneygeneral.gov
ATTORNEYS FOR THE STATE OF TEXAS

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________________________________
MARK A. WEISBART
The Law Office of Mark A. Weisbart
Dallas, Texas 75251
Telephone: (972) 628-4903
Facsimile: (972) 628-4905
weisbartm@earthlink.net
CHAPTER 7 TRUSTEE FOR THE DEFENDANT
1 SOLTECH INC.
________________________________
MARK H. HOW
BUDDY APPLE
How Frels Rohde Woods & Duke, P.C.
2027 Young Street
Dallas, Texas 75201
Telephone: (214) 720-2220
Facsimile: (214) 720-2240
mhow@2027law.com
bapple@2027law.com
ATTORNEYS FOR THE DEFENDANTS
SANDRA SANDY FARDI; HOSSEIN
ZAK FARDI; and ALI ENRIQUE RAZAVI

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SHERMAN DIVISION
In re:
1 SOLTECH, INC.,
Debtor.
Case No. 14-42187-btr

Chapter 7
AFFIDAVIT OF CHAPTER 7 TRUSTEE IN SUPPORT OF MOTION TO APPROVE

SETTLEMENT PURSUANT TO FEDERAL RULE OF BANKRUPTCY
PROCEDURE 9019
STATE OF TEXAS
COUNTY OF DALLAS
Mark A. Weisbart, Chapter 7 Trustee of the bankruptcy estate of 1 SoITech, Inc., being
duly sworn, deposes and says as follows:
1.
"My name is Mark A. Weisbart. I have personal knowledge of the facts stated
herein and they are true and correct. 1 am over the age of twenty-one (21) years, and 1 have
never been charged with or convicted of a felony or crime of moral turpitude, and 1 am in all
respects competent to make this Affidavit.
2.
On April 29, 2015,1 was appointed Chapter 7 Trustee of the bankruptcy estate of
1 SoITech, Inc. 1 submit this affidavit pursuant to Local Bankruptcy Rule 9019 in support of the
Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019 (the
"Motion to Approve Settlement").'

3.
1 recommend the Court's approval of the Motion to Approve Settlement, and
believe the terms described in the Motion satisfy the requirements for approval of compromises
of controversies under Federal Bankruptcy Rule 9019, as enunciated in Protective Comm. of
' Capitalized terms not defmed in this affidavit shall have the meanings stated in the Motion to
Approve Settlement.
Exhibit "B"
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Stockholder of TMT Trailer Ferry, Inc. v. Anderson (In re TMT Trailer Ferry, Inc.), 390 U.S.
414, 424 (1968), on remand, TMT Trailer Ferry, Inc. v. Kirkland, 471 F.2d 10 (5th Cir. 1972)
and Continental Airlines, Inc. v. Airline Pilots' Ass'n Int'l. (In re Continental Airlines, Inc.), 907
F.2d 1500, 1508 (5th Cir. 1990).
4.
More specifically, I believe the proposed settlement satisfies the foregoing
standard for approval of a settlement as follows:

5.
Probability of Ultimate Success.
Given that the Restitution Amount in the
Settlement Agreement is approximately $3,245,677.02 less than the amount initially sought and
the uncertainties attendant to litigating the matter, including risks of delay and exposure to
additional attorneys' fees, the Settlement Agreement represents an acceptable and preferred
compromise for the bankruptcy estate. In the event the Enforcement Action was litigated, I
anticipate that the bankruptcy estates' liability could far exceed amounts under the Settlement
Agreement.
6.
Complexity. Expense, and Likely Duration.
The Enforcement Action involves
complex claims under the Texas Deceptive Trade Practices Act.
Without the Settlement
Agreement, I believe the Parties could potentially spend a considerable amount of time litigating
their respective claims and defenses arising from the Enforcement Action in connection with the
Debtor's liability. I believe that the costs of such litigation weigh strongly in favor of settlement.
7.
Difficulty in Collectins Judement. I believe this factor is inapplicable and, as a
result, it has not been considered by this analysis.

8.
Other Factors. I believe that the proposed compromise is equitable and in the
best interests of the bankruptcy estate because it will not impact any distribution to secured or
priority creditors in this case. Further, the Restitution Amount under the proposed settlement
Exhibit "B"
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reduces a sizeable claim which could impact any distribution to unsecured creditors. Moreover,
the civil penalties and attorneys' fees will not impact any distribution to any secured, priority or
unsecured creditor in this case.
Additionally, I believe the proposed compromise allows for
liquidation of the State of Texas' Proof of Claim with certainty, and will further the prompt
administration of the estate by providing notice of the bankruptcy case to purchasers of the
uncertified 2nd Generation Panels.
9.
In light of the foregoing, I believe that the proposed compromise achieves a result
consistent with the dictates of the Bankruptcy Code and is in the best interests of the bankruptcy
estate.
10.
The foregoing constitutes my statement pursuant to Local Bankruptcy Rule 9019.
Mark A. Weisbart
Chapter 7 Trustee of 1 SolTech, Inc.
SUBSCRIBED AND SWORN TO BEFORE ME, the undersigned authority, on this
day of October 2015.
Notary Public, State of Texas
TARAH M. SIMMONS
I Notary Public, State of Texas

My Commission Expires
November 21, 2016
Exhibit "B"
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SHERMAN DIVISION
IN RE:
Case No. 14-42187
Chapter 7
1SOLTECH, INC.
Debtor
ORDER GRANTING MOTION TO APPROVE SETTLEMENT

PURSUANT TO FEDERAL RULE OF BANKRUPTCY PROCEDURE 9019
On this date, came on to be considered the Chapter 7 Trustees Motion to Approve
Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019 (the Motion to Approve
Settlement). 1 The Court, have considered the merits thereof, finds as follows:
This Court has jurisdiction over the Motion to Approve Settlement pursuant to 28 U.S.C.
1334. The matter is a core proceeding pursuant to 28 U.S.C. 157(b). The Court has the
authority to grant the requested relief pursuant to Rule of Bankruptcy Procedure 9019. The
Court finds that notice of the Motion to Approve Settlement as reflected in its certificate of
service was appropriate, proper and sufficient.
There was no objection to the Motion to Approve Settlement. The Court further finds
that considering (a) the probability of ultimate success in any litigation with due consideration
for uncertainty of fact and law; (b) the complexity and likely duration of any litigation and any
attendant expenses, inconvenience and delay; and (c) the interests of creditors of the estate, that
the compromise between the bankruptcy estate and the State of Texas as proposed is fair and
reasonable and is in the best interest of the bankruptcy estate and its creditors, and should be
approved by the Court. Accordingly, it is therefore ORDERED, ADJUDGED and DECREED
that:
1.
The Motion to Approve Settlement is GRANTED;
Capitalized terms not defined herein shall have the meanings stated in the Motion to Approve Settlement.
Exhibit "C"
Case 14-42187
2.
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Mark A. Weisbart, in his official capacity as the Chapter 7 Trustee for the
Debtors bankruptcy estate, is authorized to enter into the Settlement Agreement as described in
the Motion to Approve Compromise, a copy of which is attached to the Motion as Exhibit A,
which is hereby incorporated by reference as though fully set forth herein and approved in all
respects;
3.
The State of Texas will have an allowed unsecured claim in the Settlement
Amount of $7,904,322.98 (the Allowed Claim) and such Allowed Claim will supercede the
Texas Proof of Claim previously filed;
4.
The Chapter 7 Trustee shall have the right to challenge the treatment of the
$2,754,322.98 Restitution Amount portion of the Settlement Amount in the Bankruptcy Case
pursuant to 11 U.S.C. 726;
5.
The Chapter 7 Trustee is hereby authorized to take any and all actions necessary
to implement the terms of the Settlement Agreement without further order of the Court,
including, among other things, (a) carrying out the terms of the Settlement Agreement, (b)
allowing the Enforcement Action to proceed in order to establish the Allowed Claim, and (c)
amending the claim of the State of Texas in the above-styled and numbered case and deeming
the claim as allowed without any further action;
6.
This Court shall retain jurisdiction to hear and determine all matters arising from
or related to the interpretation, implementation, or enforcement of this Order; and

7.
Notwithstanding any Bankruptcy Rule to the contrary, this Order shall take effect
immediately upon entry.

IT IS SO ORDERED.
Exhibit "C"
Case
14-42187
Label Matrix for local
noticing
0540-4
Case 14-42187
Eastern District of Texas
Sherman
Tue Oct 13 12:16:36 CDT 2015
AT & T
P.O. Box 5001
Carol Stream, IL 60197-5001
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1st Choice Packaging
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1920 Diplomat Dr.
1212 Tappan Circle
Farmers Branch, TX 75234-8913
Carrollton, TX 75006-6911
Andrew Afifian
2503 Colby Street #437
Dallas, TX 75201-2057
Houshang Afifian
Andrew Afifian
2503 Colby Street #437
Dallas, TX 75201-2057
Christopher M. Albert
Busch Ruotolo & Simpson, LLP
100 Crescent Court
Suite 250
Dallas, TX 75201-1823
Aldinet Green S.L.

% Alfonso Soto
11395 James Watt Drive
Suite A-9
El Paso, TX 79936-5941
Aldinet Green S.L.

c/o Alfonso Soto
The Soto Law Firm
11395 James Watt Dr., Suite A-9
El Paso, TX 79936-5941
Ali E. Razavi
803 Fair Lawn Street
Allen, TX 75002-5008
Ali E. Razavi
1235 Delmont Drive
Richardson, TX 75080-5813
Altech Building Systems Corporation

904 Atlantic Avenue
Point Pleasant, NJ 08742-2917
Mahmoud Aminian
5209 Morris Drive
Plano, TX 75093
Andy Totti
1942 Caddo Street
Little Elm, TX 75068-6308
Jarold "Buddy" Apple

How Frels Rohde Duke & Smith, P.C.
2027 Young St.
Dallas, TX 75201-5711
Attorney General of Texas

Bankruptcy Division
PO Box 12548
Austin, TX 78711-2548
Axium Solar
1005 Pacid Avenue
Suite 100
Plano, TX 75074-8655
Axium Solar
1005 Placid Avenue
Suite 100
Plano, TX 75074-8655
BRE/DP TX LLC
Jennifer Gehrt
PO Box 224409
Dallas, TX 75222-4409
BRE/DP TX LLC
c/o Jennifer A. Gehrt
Barbee & Gehrt, L.L.P.
P.O. Box 224409
Dallas, TX 75222-4409
Bama Freight
404 W 4th St
Prattville, AL 36067-2803
Elizabeth Banda Calvo

Perdue, Brandon, Fielder, Collins & Mott
500 E. Border Street
Suite 640
Arlington, TX 76010-7457
Daniel K. Bearden Jr.

Law Offices of Robert E. Luna, P.C.
4411 N. Central Expressway
Dallas, TX 75205-4210
C B Richard Ellis
Attn: Amanda Baker
2100 McKinney Avenue, Suite 700
Dallas, TX 75201-6909
CBeyond
4835 LBJ Freeway, Suite 900
Dallas, TX 75244-6001
CCC of New York

P.O. Box 288
Tonawanda, NY 14151-0288
Carrollton-Farmers Branch
Independent School District
1445 N. Perry Road
Carrollton-Farmers Branch ISD

1445 N. Perry Road
Carrollton-Farmers Branch ISD

c/o Daniel K. Bearden
Law Offices of Robert E Luna, P.C.
4411 N Central Expressway
Dallas, Texas 75205-4210
Carrollton-Farmers Branch Independent School

Carrollton-Farmers Branch School Distric
c/o Daniel K. Bearnden, Esq.
Law Offices Of Robert E. Luna, P.C.
4411 North Central Expressway
Dallas, TX 75205-4210
Charles A. Gruen Case 14-42187

381 Broadway, Suite 300
Westwood, NJ 07675-2239
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Alarm Registrations/False Alarm Billing
Jason R. Kennedy
13000 William Dodson Parkway
Farmers Branch, TX 75234-6253
Thomas, Feldman & Wilshusen, L.L.P.

9400 N. Central Expressway, Suite 900
Dallas, TX 75231-5051
Community Waste Disposal

2010 California Crossing
Dallas, TX 75220-2310
(p)TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

REVENUE ACCOUNTING DIV - BANKRUPTCY SECTION
PO BOX 13528
AUSTIN TX 78711-3528
DLS Worldwide
1000 Windham Parkway
Bolingbrook, IL 60490-3507
Dallas County
Linebarger Goggan Blair & Sampson, LLP
c/o Laurie Spindler Huffman
2777 N. Stemmons Frwy
Ste 1000
Dallas, TX 75207-2328
Daniel K. Bearden, Jr.
Law Office of Robert E. Luna, P.C.
Dallas, TX 75205-4210
Dallas County
Linebarger Goggan Blair & Sampson, LLP
c/o Laurie Spindler Huffman
2777 N. Stemmons Frwy Ste 1000
Dallas County Tax Assessor

John R. Ames, CTA
500 Elm Street
Dallas, TX 75202-3304
Direct Energy Business

1001 Liberty Ave Fl 13
c/o Jonathan Love
Pittsburg, PA 15222-3728
Direct Energy Business - Dallas

P.O. Box 67863
Dallas, TX 75267-6863
Donald M. Barnett
Barnett & Garcia
3821 Juniper Trace, Suite 108
Austin, TX 78738-5514
Electro-Wise Dallas, Inc.

2434 McIver Lane
Elizabeth Banda Calvo

Perdue, Brandon, Fielder, Collins & Mott
P.O. Box 13430
Arlington, Texas 76094-0430
FLEXCON COMPANY, INC.

5000 WEST ESPLANADE AVENUE, SUITE 436
METAIRIE, LA 70006-2570
Fabrico Atlanta
Attn: Melanie Neely
4175 Royal Drive, Suite 800
Kennesaw, GA 30144-6429
Hossein Fardi
c/o Mark H. How
2027 Young St.
Dallas, TX 75201-5711
Sandy Fardi
c/o Mark H. How
2027 Young St.
Dallas, TX 75201-5711
FedEx Freight
2200 Forward Drive
Harrison, AR 72601-2234
FedEx Tech Connect Inc as Assignee

of FedEx Express/Ground/Freight/Office
3965 Airways Blvd, Module G, 3rd Floor
Memphis, Tennessee 38116-5017
Flexcon
P.O. Box 904
Spencer, MA 01562-0904
Freeman
Attn: Daphene Mayfield
P.O. Box 660613
Dallas, TX 75266-0613
Freeman Expositions, Inc.

Attn: Mary Winter
1600 Viceroy, Suite 100
Mark Frels
How Frels Berman Rohde Woods & Duke
2027 Young St
Dallas, TX 75201-5711
Jennifer Gehrt
PO Box 224409
Dallas, TX 75222-4409
Green Mountain Energy

P.O. Box 328
Houston, TX 77001-0328
Green Mountain Energy Company

P.O. Box 1046
Heritage Glass, LLC

1450 Lincoln Street
Kingsport, TN 37660-5194
Hossein Fardi
4724 Towne Square
#1610
Plano, TX 75024-2227
Case 14-42187
Hossein Fardi
4724 Towne Square Drive
#1610
Plano, TX 75024-2227
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5806 Glenn Heather Dr.
c/o Andrew Bergman
Dallas, TX 75252-4911
4514 Travis St., Suite 300

Dallas, TX 75205-4186
Mark How
2027 Young St.
Dallas, TX 75201-5711

2027 Young Street
Dallas, TX 75201-5711
How Frels Rohde Woods & Duke, P.C.

2027 Young St.
Dallas, TX 75201-5711
Hudson, Potts & Bernstein, LLP

P O Box 3008
Monroe, LA 71210-3008
Laurie Spindler Huffman

Linebarger, Goggan, Blair & Sampson
2777 N. Stemmons Frwy Ste 1000
Dallas, TX 75207-2328
IndCor Properties, Inc.

2 N. Riverside Plaza
Ste. 2350
Chicago, IL 60606-2617
Internal Revenue Service

PO Box 7346
Philadelphia, PA 19101-7346

Centralized Insolvency
PO Box 7346
Philadelphia, PA 19101-7346

Mail Code 5020-DAL
1100 Commerce Street
Dallas, TX 75242-1100
Intuit
21215 Burbank Blvd., Suite 100
Woodland Hills, CA 91367-7091
JPM Energy
4447 Stoneridge Drive
Pleasanton, CA 94588-8414
JPM Energy, Inc.

c/o Henry Ku Attorney at Law
12674 San Pablo Ave.
Richmond, CA 94805
Jan P. Christiansen
Hudson Potts & Bernstein
1800 Hudson Lane, Suite 300
Monroe, LA 71201-5748
John B. Hoychick
Cotton Bolton Hoychick & Doughty
P.O. Box 857
Rayville, LA 71269-0857
Jason R. Kennedy
Thomas, Feldman & Wilshusen, L.L.P.
9400 N. Central Expressway, Suite 900
Dallas, TX 75231-5051
Milan Kubat
Weltman, Weinberg & Reis Co., LPA
323 W. Lakeside Avenue
Suite 200
Cleveland, OH 44113-1009
Lain, Faulkner & Co., P.C.

400 N. Saint Paul
Suite 600
Dallas, TX 75201-6897
Landstar Ranqer. Inc.

Dawn Bowers
13410 Sutton Park Drive South
Jacksonville, FL 32224-5270
Law Offices of Charles A. Gruen

381 Broadway
Suite 300
Westwood, NJ 07675-2239
Eric A. Liepins
12770 Coit Road
Suite 1100
Dallas, TX 75251-1329
Joyce W. Lindauer
12720 Hillcrest Road
Suite 625
Dallas, TX 75230-2163
Linebarger Goggan Blair & Sampson

2777 N. Stemmons Freeway
Suite 1000
Dallas, TX 75207-2328
MBT Systems Ltd.

309 Route 94
Columbia, NJ 07832-2761
Madico
1252 Security Drive
Dallas, TX 75247-6814
Margaret (Xuemei) Zhu

18333 Roehampton Dr. #334
Dallas, TX 75252-5172
Mark L. Taylor
Powers Taylor LLP
Suite 1575
Dallas, TX 75206-1837
Michael E. Carnahan
2207 Cliffs Edge Drive
Austin, TX 78733-6013
Case 14-42187
Monitronics
Attn: Rob Washington
P.O. Box 814530
Dallas, TX 75381-4530
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Attn: Rob Washington Attn: Rob Washingto
1848 Norwood Plaza, Suite 101
P.O. Box 814530
Dallas, TX 75381-4530
Hurst, TX 76054-3751
Morris & Hadley Inc

dba Morris & Associates
1848 Norwood Plaza, Suite 212
Hurst, TX 76054-3752
Motech Industries, Inc. Science Park Branch

Attn: Legal Dept-Belinda Vong, Peggy Lee
South Taiwan Science Park
No. 2 Dashun 9th Road, Xinshi District,
Tainan City 74145, Taiwan
Municipal Services Bureau

Netrma Processing
8325 Tuscany Way, Bldg. 4
Austin, TX 78754-4734
Christopher S. Murphy
Office of the Texas Attorney General
300 West 15th Street
Austin, TX 78701-1649
NTTA
5900 W. Plano Parkway
Plano, TX 75093-4695
Chad Aubrey Norcross

Norcross Law
720 Overland
McKinney, TX 75069-0962
Timothy W. ONeal
Office of the U.S. Trustee
110 N. College Ave.
Suite 300
Tyler, TX 75702-7231
Rachel Ruth Obaldo

Texas Attorney General
Bankruptcy & Collections Division
300 W. 15th Street, Mail MC-008
Austin, TX 78701-1649
PPG Industries
1900 N. Josey Lane
PPG Industries, Inc.

Wagner, Falconer & Judd, Ltd.
c/o Jeffrey Nicolet
80 South Eighth Street, Suite 1700
Minneapolis, MN 55402-5357
Pooya Afifian
5806 Glenn Heather Dr.
Dallas, TX 75252-4911
QSLWM, PC
Kenneth A. Hill
2001 Bryan St., Suite 1800
Regulatory Integrity Division - SAU

Room 556
101 E. 15th Street
Austin, TX 78778-0001
Renewable Sales, LLC

35 Jeffrey Avenue
Holliston, MA 01746-2027
Renewable Sales, LLC

c/o Robert Ruotolo
100 Crescent Court, Suite 250
Dallas, TX 75201-1823
Renogy
14288 Central Avenue
Chino, CA 91710-5779
Renogy, LLC
14288 Central Avenue, Suite A
Chino, CA 91710-5779
Robert Ruotolo
Busch Ruotolo & Simpson LLP
100 Crescent Court, Suite 250
Dallas, TX 75201-1823
Rosen Systems, Inc.

2323 Langford St.
Dallas, TX 75208-2122
SAPA Extrusions
9600 Bryn Mawr Avenue
Rosemont, IL 60018-5240
SAPA Extrusions North America

c/o Eishel Salas
400 Rouser Road, Suite 300
Moon Township, PA 15108-2749
SKC, Inc.
Attn: Paul Kwak
1000 SKC Drive
Covington, GA 30014-1599
SSNA, Inc.
1414 W. North Carrier Parkway
Grand Prairie, TX 75050
Sandy Fardi
4724 Towne Square
#1610
Plano, TX 75024-2227
Sandy Fardi
4724 Towne Square Dr.
#1610
Plano, TX 75024-2227
Schletter
1001 Commerce Center Drive
Shelby, NC 28150-7728
Schmalz Inc.
5200 Atlantic Avenue
Raleigh, NC 27616-1870
Sigma Supply, Inc.Case 14-42187

c/o Terry P. Diggs
102 Archwood St.
Hot Springs, AR 71901-6044
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c/o Dr. Labib Sultan
c/o Matthew B. Henneman
540 Broadway Avenue
El Cajon, CA 92021-5423
Watt Beckworth Thompson & Henneman

711 Louisiana St, # 1800, South Tower
Solar Integrated Systems, LLC

2001 Bryan St., Suite 1800
Dallas, TX 75201-3070
SolarWorld Americas Inc

25300 NW Evergreen Road
Hillsboro, OR 97124-5768
Solution + System, Inc.

411 Hackensack Avenue
Hackensack, NJ 07601-6328
Southbound Logistics
P.O. Box 198
Diana, TX 75640-0198
State Auto Insurance Company

P.O. Box 182738
Columbus, OH 43218-2738
State of Texas
c/o Nanette Dinunzio, Asst. Atty General
P.O. Box 12548
Austin, TX 78711-2548
TOYOTA MOTOR CREDIT CORPORATION c/o Weltman,

323 W. Lakeside Avenue, Ste 200
Cleveland, OH 44113-1009
Talesun Solar USA Ltd.

111 W. St. John
Suite 900
San Jose, CA 95113-1122
Talesun Solar USA Ltd.

P.O. Box 510401
Salt Lake City, UT 84151-0401
LynAlise Katherine Tannery

Buckley Madole. P.C.
14841 Dallas Parkway, Suite 425
Dallas, TX 75254-7884
Texas Workforce Commission

Rachel R. Obaldo
c/o Sherri K. Simpson, Paralegal
P.O. 12548
Austin, TX 78711-2548

101 E. 15th Street
Austin, TX 78778-0001

101 East 15th Street
Austin, TX 78778-0001
Texas Workforce Commission Regulatory

Integrity Division - SAU
Collection Division MC 008
P.O. Box 12548
Austin, TX 78711-2548
The State of Texas

Office of the Attorney General of Texas
P.O. Box 12548
MC 008
Austin, TX 78711-2548
(p)TOYOTA MOTOR CREDIT CORPORATION

PO BOX 8026
CEDAR RAPIDS IA 52408-8026
Toyota Motor Credit Corporation

P.O. Box 3457
Torrance, CA 90510-3457
Toyota Motor Credit Corporation (TMCC)

PO BOX 8026
Cedar Rapids, Iowa 52408-8026
Traub Lieberman Straus & Shrewsberry LLP

Attn: Brian C. Bassett
303 W. Madison Street
Suite 1200
Troy Bearsden
Law Office of Robert E. Luna, P.C.
Dallas, TX 75205-4210
U. S. Attorney
110 N. College Ave.
Suite 700
Tyler, TX 75702-0204
U. S. Trustees Office
110 N. College Street
Suite 300
Tyler, TX 75702-7231
U.S. Attorney General

Department of Justice
Main Justice Building
10th & Constitution Ave., NW
Washington, DC 20530-0001
UPS Supply Chain Solutions, Inc.

c/o CST Co.
Attn: Jay Knipe
P.O. Box 224768
Dallas, TX 75222-4768
US Trustee
110 N. College Ave.
Suite 300
Tyler, TX 75702-7231
US Trustee
110 North College Ave
Room 300
Tyler, TX 75702-7231
Uline
2200 S. Lakeside Drive
Waukegan, IL 60085-8311
CaseSupplies
14-42187
Uline Shipping Shipping
12575 Uline Drive
Pleasant Prairie, WI 53158-3686
Doc 265Utica
Filed
10/13/15
10/13/15 14:54:35
Desc
MainGroup
Deductible
Recovery Entered
Group
Utica National
Insurance
Document
Page
33
of
34
P.O. Box 962
P.O. Box 962
Coraopolis, PA 15108-0962
Coraopolis, PA 15108-0962
VALWOOD IMPROVEMENT AUTHORITY

c/o Elizabeth Banda Calvo
Perdue Brandon Fielder et al
500 E Border St, Suite 640
VSSI, Inc.
c/o Jennifer Jones
Hunton & Williams
1445 Ross Ave., Suite 3700
Dallas, TX 75202-2755
Valwood Improvement Authority

1740 Briercroft Court
Valwood Improvement Authority

PO Box 13430
Valwood Improvment Authority

PO Box 13430
Mark A. Weisbart
Dallas, TX 75251-1366
XPO Logistics
13777 Ballantyne Corporate Place
Charlotte, NC 28277-4411
Ruth Harris Yeager

Office of the U.S. Attorney
110 N. College Ave.
Suite 700
Tyler, TX 75702-0204
The preferred mailing address (p) above has been substituted for the following entity/entities as so specified
by said entity/entities in a Notice of Address filed pursuant to 11 U.S.C. 342(f) and Fed.R.Bank.P. 2002 (g)(4).
Comptroller of Public Accts

Rev Acctg Div/Bankruptcy Dept
PO BOX 13528
Austin, TX 78711
(d)Comptroller of Public Accts

Rev Acctg Div/Bankruptcy Dept
PO Box 13528
Austin, TX 78711
Toyota Financial Services

PO Box 5855
(d)Toyota Financial Services

PO Box 5855
The following recipients may be/have been bypassed for notice due to an undeliverable (u) or duplicate (d) address.
(d)Altech Building Systems Corporation

904 Atlantic Avenue
Point Pleasant, NJ 08742-2917
(d)DLS Worldwide
1000 Windham Parkway
Bolingbrook, IL 60490-3507
(d)Direct Energy Business -Dallas

P.O. Box 67863
Dallas, TX 75267-6863
(d)Flexcon
P.O. Box 904
Spencer, MA 01562-0904
(d)How Frels Rohde Duke & Smith,P.C.

2027 Young Street
Dallas, TX 75201-5711
(d)IndCor Properties, Inc.

2 N. Riverside Plaza, Ste. 2350
14-42187
(d)Internal RevenueCase
Service
Mail Code 5020-DAL
1100 Commerce Street
Dallas, TX 75242-1100
Doc 265(d)JPM
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Desc
Energy
(d)MBT Systems
Ltd. Main
Document
Page
34
of
34
4447 Stoneridge Drive
309 Route 94
Pleasanton, CA 94588-8414
Columbia, NJ 07832-2761
(d)Madico
1252 Security Drive
Dallas, TX 75247-6814
(d)Mahmoud Aminian
5209 Morris Drive
Plano, TX 75093
(u)Morris & Hadley, Inc.
(d)Timothy W. ONeal
110 N. College Ave., Ste. 300
Tyler, TX 75702-7231
(d)PPG Industries
1900 N. Josey Lane
(d)Renewable Sales, LLC

35 Jeffrey Avenue
Holliston, MA 01746-2027
(d)Renogy
14288 Central Avenue
Chino, CA 91710-5779
(u)Rescue My PC
(d)SAPA Extrusions
(d)SAPA Extrusions, LLC

(d)SKC, Inc.
Attn: Paul Kwak
1000 SKC Drive
Covington, GA 30014-1599
(d)Solution + System, Inc.

411 Hackensack Avenue
Hackensack, NJ 07601-6328
(d)Toyota Motor Credit Corporation

P.O. Box 3457
Torrance, CA 90510-3457
(d)Mark A. Weisbart
Dallas, TX 75251-1366
End of Label Matrix

Mailable recipients
Bypassed recipients
Total
160
23
183

Settlement - Motion File Stamped

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Settlement - Motion File Stamped

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Case 14-42187

Filed 10/13/15 Entered 10/13/15 14:54:35

IN THE UNITED STATES BANKRUPTCY COURT

MOTION TO APPROVE SETTLEMENT PURSUANT TO

Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019

Filed 10/13/15 Entered 10/13/15 14:54:35

JURISDICTION AND VENUE

State of Texas Initiates a Consumer Protection Enforcement Action Against the

Ali Enrique Razavi was added as a Defendant on July 14, 2014.

Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019

Filed 10/13/15 Entered 10/13/15 14:54:35

The Debtor Initiates a Chapter 11 Bankruptcy Case.

A Chapter 11 Trustee is Appointed and the Case is Converted to Chapter 7.

approval of the Trustees appointment [Dkt. 162].

That same day, the Trustee filed an

Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019

Filed 10/13/15 Entered 10/13/15 14:54:35

Subsequently, representatives for the State of Texas engaged in arms-length

Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019

Filed 10/13/15 Entered 10/13/15 14:54:35

Settlements and compromises are a normal part of the process of

Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019

Filed 10/13/15 Entered 10/13/15 14:54:35

the probabilities of ultimate success should the claim be litigated;

the complexity, expense, and likely duration of litigating the claim;

the difficulties of collecting a judgment rendered from such litigation; and

TMT Trailer, 390 U.S. at 424.

See 471 F.2d at 10.

The Trustee believes that a prompt resolution of the

Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019

Filed 10/13/15 Entered 10/13/15 14:54:35

Probabilities of Ultimate Success. Given that the Restitution Amount in the

Complexity, Expense, and Likely Duration. Without the Settlement Agreement,

Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019

Filed 10/13/15 Entered 10/13/15 14:54:35

Difficulty in Collecting Judgment. The Trustee believes this factor is inapplicable

and, as a result, it has not been considered by this analysis.

settlement is attached to this Motion to Approve Settlement as Exhibit B.

Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019

Filed 10/13/15 Entered 10/13/15 14:54:35

Motion to Approve Settlement Pursuant to Federal Rule of Bankruptcy Procedure 9019

Filed 10/13/15 Entered 10/13/15 14:54:35

IN THE DISTRICT COURT OF

TRAVIS COUNTY, TEXAS

261ST JUDICIAL DISTRICT

AGREED FINAL JUDGMENT AND PERMANENT INJUNCTION

The Court has jurisdiction over the Defendants in this matter.

Venue is proper in Travis County, Texas.

The activities of Defendants constitute trade and/or commerce.

Entry of this Judgment is in the public interest.

Filed 10/13/15 Entered 10/13/15 14:54:35

This Judgment is non-appealable.

Defendants acknowledge notice of this permanent injunction and acceptance of

Consumer means an individual, partnership, corporation, or entity of any kind,

State of Texas v. 1 SolTech Inc., et al.

Filed 10/13/15 Entered 10/13/15 14:54:35

Defendants shall mean 1 SOLTECH INC.; Sandra Sandy Fardi; Hossein

Represent means to make an affirmative declaration of the representation orally,

in writing, or through other communication.

Clear and conspicuous and Clearly and conspicuously mean:

In communications disseminated orally, the message shall be delivered in a

State of Texas v. 1 SolTech Inc., et al.

Filed 10/13/15 Entered 10/13/15 14:54:35

SIGNED AND ENTERED this day ________, 2015.