Gugliuzza

ORDER AFFIRMING IN SUBSTANTIAL PART AND REVERSING IN PART THE BANKRUPTCY COURT’S AUGUST 18, 2014 ORDER

I. INTRODUCTION

Appellant Charles Francis Gugliuzza II appeals the Bankruptcy Court’s August 18, 2014 order granting Appellee Federal Trade Commission’s (“FTC”) motion for summary judgment and holding that the judgment debt Gugliuzza owed the FTC is nondischargeable under 11 U.S.C. *373 § 523 (a)(2)(A) (the “Bankruptcy Court Order”). For the following reasons, the Court AFFIRMS IN SUBSTANTIAL PART and REVERSES IN PART the Bankruptcy Court Order and REMANDS the action to the Bankruptcy Court.-

II. BACKGROUND

A. The Underlying Action

In 2009, the FTC brought an action before this Court against Commerce Planet, Inc. (“Commerce Planet”) and several of its directors and officers, including Gu-gliuzza, (“Underlying Action”). (See Case No. SACV 09-01324-CJC(RNBx).) The FTC asserted two counts against Gugliuz-za for deceptive and unfair practices in violation of Section 5(a) of the Federal Trade Commission Act (the “FTC Act”), 15 U.S.C. § 45 (a), in connection with a deceptive Internet marketing scheme the defendants had created called the “On-lineSupplier.” FTC v. Commerce Planet,…