Opinion
Case No. 6:03-cv-119-Orl-31DAB
January 30, 2003
Plaintiff, the Commodity Futures Trading Commission ("Commission"), has filed a Complaint for permanent injunction and other relief, and moved pursuant to Section 6c of the Commodity Exchange Act, as amended (the "Act"), 7 U.S.C. § 13a-1 (1994), for a statutory restraining order freezing the assets of the Defendants, prohibiting Defendants from destroying any business records, books or documents and barring the Defendants from denying access to any representative of the Plaintiff. The Court has considered the pleadings, declarations, exhibits, and memorandum filed in support of the Commission's motion. As it appears to the Court that the Court has jurisdiction over the subject matter of this case, that Section 6c of the Act, 7 U.S.C. § 13a-1, authorizes ex pane relief, that there is good cause to believe that Defendants have engaged in, are engaging in or are about to engage in violations of the Act, and that this is a proper case for granting an exparte statutory restraining Order to preserve the status quo, protect public customers from loss and damage, and enable the Commission to fulfill its statutory duties, the Court orders as follows:
DEFINITIONS
For the purposes of this Order, the following definitions apply:
1. The term "document" is synonymous in meaning and equal in scope to the usage of the term in Federal Rule of Civil Procedure 34(a), and includes, but is not limited to, writings, drawings, graphs, charts, photographs, audio and video recordings, computer records, and other data compilations from which information can be obtained and translated, if necessary, through detection devices into reasonably usable form. A draft or non-identical copy is a separate document within the meaning of the term.
2. "Defendants" mean InterTrade Forex, Inc. a Delaware corporation licensed to conduct business in the State of Florida, Stanley Craig Wakefield, an individual residing in Kissimmee, Florida, and Pritesh Patel, an individual residing in London, England.
RELIEF GRANTED I. Asset Freeze
IT IS HEREBY ORDERED that the Defendants and all persons or entities who receive notice of this Order by personal service or otherwise, except as otherwise ordered by this Court, are restrained and enjoined from directly or indirectly:
A. transferring, selling, alienating, liquidating, encumbering, pledging, leasing, loaning, assigning, concealing, dissipating, converting, withdrawing, or otherwise disposing of any assets in which Defendants have an interest, and assets held outside the United States, except as ordered by the Court; and
B. opening or causing to be opened any safe deposit boxes titled in the name of, or subject to access by, the Defendants.
II. Maintenance of and Access to Business Records
IT IS HEREBY ORDERED that the Defendants and all persons or entities who receive notice of this Order by personal service or otherwise, are restrained and enjoined from directly or indirectly destroying, mutilating, erasing, altering, concealing or disposing of, in any manner, directly or indirectly, any documents that relate to the business practices or business or personal finances of Defendants, their agents, attorneys, partners, servants, representatives, employees, attorneys, any person(s) acting or purporting to act for or on their behalf, and corporate and partnership entities in which Defendants have an interest.III Inspection and Copying of Books and Records
IT IS FURTHER ORDERED that representatives of the Commission be immediately allowed to inspect the books, records, and other documents of the Defendants, their agents, attorneys, partners, servants, representatives, employees, any person(s) acting or purporting to act for or on their behalf, and corporate and partnership entities in which Defendants have an interest, including, but not limited to, electronically stored data, tape recordings, and computer discs, wherever they may be situated and whether they are in the person of the Defendants or others, and to copy said documents, data and records, either on or off the premises where they may be situated.
IV. Directives to Financial Institutions and Others
IT IS FURTHER ORDERED, pending further Order of this Court, that any financial or brokerage institution, business entity, or person, that holds, controls, or maintains custody of any account or asset, or at any time since March 11, 2001, has held, controlled, or maintained custody of any account or asset of the Defendants shall:
A. Prohibit Defendants and all other persons from withdrawing, removing, assigning, transferring, pledging, encumbering, disbursing, dissipating, converting, selling or otherwise disposing of any such asset except as directed by further order of the Court;
B. Deny Defendants and all other persons access to any safe deposit box that is:
1. titled in the name of the Defendants either individually or jointly; or
2. otherwise subject to access by the Defendants;
C. Provide counsel for the Commission, within five (5) business days of receiving a copy of this Order, a statement setting forth:
1. the identification number of each and every account or asset titled in the name, individually or jointly, of, or held on behalf of, or for the benefit of, the Defendants;
2. the balance of each such account, or a description of the nature and value of such asset as of the close of business on the day on which this Order is served, and, if the account or other asset has been closed or removed, the date closed or removed, the total funds removed in order to close the account, and the name of the person or entity to whom such account or other asset was remitted; and
3. the identification of any safe deposit box that is either titled in the name, individually or jointly, of the Defendants or is otherwise subject to access by the Defendants;
D. Upon request by the Commission, promptly provide the Commission with copies of all records or other documentation pertaining to such account or asset, including, but not limited to, originals or copies of account applications, account statements, signature cards, checks, drafts, deposit tickets, transfers to and from the accounts, all other debit and credit instruments or slips, currency transaction reports, 1099 forms, and safe deposit box logs.
V. Service of Order
IT IS FURTHER ORDERED that copies of this Order may be served by any means, including facsimile transmission, upon any entity or person that may have possession, custody, or control of any documents or assets of the Defendants or that may be subject to any provision of this Order, and, additionally, that representatives of the Commission, are specially appointed by the Court to effect service. Service of the summons, Complaint or other process may be effected by U.S. Marshal or deputy U.S. Marshal, or in accordance with Fed.R.Civ.P. 4.VL
Order to Show Cause IT IS FURTHER ORDERED that the Defendants shall appear before this Court on the 10th day of February, 2003, at 12:30 P.M., before the Honorable Gregory A. Presnell at the United States Courthouse for the Middle District of Florida, to show cause why this Court should not enter a Preliminary Injunction enjoining Defendants from further violations of the Act, and ordering any additional relief this Court deems appropriate. Should any party wish to file a memorandum of law or other papers concerning the issuance of a Preliminary Injunction against the Defendants, such materials shall be filed and served by 4:00 P.M. on February 7, 2003.VII. Force and Effect
IT IS FURTHER ORDERED that this Order shall remain in full force and effect until further order of this Court, and that this Court retains jurisdiction of this matter for all purposes.
DONE and ORDERED in Chambers.