Opinion
Civil No. 2:03-CV-0914
December 23, 2003
Thomas M. Melton, Karen L. Martinez, Salt Lake City, Utah, for Plaintiff
ORDER OF PRELIMINARY INJUNCTION AGAINST F10 OIL AND GAS PROPERTIES, INC.
This matter came before the Court on December 22, 2003 for a hearing on the Plaintiffs Motion for Preliminary Injunction against F10 Oil and Gas Properties, Inc. (the "Defendant"), pursuant to Fed.R.Civ.P. 65(a). The Court had previously issued an exparte temporary restraining order, asset freeze, and other relief against the Defendant on October 16, 2003. After examining the pleadings and documents, and hearing oral arguments, this Court finds as follows:
1. This Court has jurisdiction over the subject matter of this action and over the Defendant;
2. The Plaintiff has previously established a prima facie case that F10 has violated Section 17(a) of the Securities Act of 1933, and Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1 and 13a-13 promulgated thereunder;
3. The Plaintiff has demonstrated a prima facie case that F10 is likely to violate the securities laws in the future,
4. A preliminary injunction is appropriate and necessary under the circumstances.
5. A Preliminary Injunction Order should be entered against the Defendant enjoining the Defendant as provided hereafter.
I.
IT IS ORDERED that Defendant, Defendant's officers, agents, servants, employees, attorneys and those persons in active concert or participation with it, who receive actual notice of this Order by personal service or otherwise, and each of them, be and hereby are preliminarily enjoined from, directly or indirectly, in the offer or sale of any security, by the use of the means or instruments of transportation or communication in interstate commerce or by the use of the mails, employing devices, schemes or artifices to defraud; obtaining money or property by means of untrue statements of material facts or omitting to state material facts necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading; or engaging in transactions, practices or courses of business which operate or would operate as a fraud or deceit upon purchasers or prospective purchasers of any security, in violation of Section 17(a) of the Securities Act [ 15 U.S.C. § 77q(a)].II.
IT IS FURTHER ORDERED that Defendant, Defendant's officers, agents, servants, employees, attorneys and those persons in active concert or participation with it, who receive actual notice of this Order by personal service or otherwise, and each of them, be and hereby are preliminarily enjoined from, directly or indirectly, as principals or aiders and abettors, in connection with the purchase or sale of any security, by the use of the means or instrumentalities of interstate commerce or of the mails, employing devices, schemes or artifices to defraud; making untrue statements of material facts or omitting to state material facts necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading; or engaging in acts, practices or courses of business which operated or will operate as a fraud or deceit upon purchasers or sellers or prospective purchasers or sellers of any security, in violation of Section 10(b) of the Exchange Act [ 15 U.S.C. § 78j(b)] and Rule 10b-5 [ 17 C.F.R. § 240.10b-5] promulgated thereunder.
III.
IT IS FURTHER ORDERED that Defendant, Defendant's officers, agents, servants, employees, attorneys, and those persons in active concert or participation with him who receive actual notice of this Order by personal service or otherwise, and each of them, be and hereby are preliminarily enjoined from violations, directly or indirectly, of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-11 and 13a-13, thereunder by filing or causing to be filed with the Commission any annual or quarterly report on behalf of F10, or any other issuer, required to be filed with the Commission pursuant to Section 13(a) of the Exchange Act [ 15 U.S.C. § 78m(a)] and the rules and regulations promulgated thereunder, which contains any untrue statement of material fact, which omits to state any material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, and which omits to disclose any information required to be disclosed.
IV.
IT IS FURTHER ORDERED, that the Order granting asset freeze, and prohibiting the destruction, concealment, alteration, disposition or mutilation of documents, entered by this Court on October 16, 2003, shall be continued until further Order of this Court.
V.
IT IS FURTHER ORDERED, that this Court shall retain jurisdiction over this action for the purposes of implementing and carrying out the terms of all orders and decrees which may be entered herein and to entertain any suitable application or motion for additional relief within the jurisdiction of this Court.
IT IS SO ORDERED.