Free Stipulation - District Court of California - California

Case 3:07-cv-04975-WHA

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Filed 10/18/2007

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1 HELANE L. MORRISON (Cal. Bar No. 127752) MARK P. FICKES (Cal. Bar No. 178570) 2 ([email protected]) ERIN E. SCHNEIDER (Cal. Bar No. 216114) 3 ([email protected]) 4 Attorneys for Plaintiff SECURITIES AND EXCHANGE COMMISSION 5 44 Montgomery Street, Suite 2600 San Francisco, California 94104 6 Telephone: (415) 705-2500 Facsimile: (415) 705-2501 7 8 9 10 11 12 13 14 15 16 17 18 19 and vs. ALEXANDER JAMES TRABULSE, Defendant, SECURITIES AND EXCHANGE COMMISSION, Plaintiff, STIPULATION AND [PROPOSED] ORDER CONCERNING INJUNCTIVE RELIEF Case No. C 07-4975 (WHA) UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION

FAHEY FUND, L.P., FAHEY FINANCIAL 20 GROUP, INC., INTERNATIONAL TRADE & DATA, and ITD TRADING, 21 Relief Defendants. 22 23 24 Whereas Plaintiff Securities and Exchange Commission ("Commission") filed a complaint

25 against defendant Alexander James Trabulse ("Trabulse") and Relief Defendants Fahey Fund, L.P., 26 Fahey Financial Group, Inc., International Trade & Data, and ITD Trading (collectively, the "Relief 27 Defendants"); 28
SEC v. Trabulse et al., C 07-4975 (WHA) STIPULATION AND [PROPOSED] ORDER CONCERNING INJUNCTIVE RELIEF

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Whereas counsel for the Commission notified counsel for Trabulse and the Relief Defendants of the Commission's intention to file a motion for a preliminary injunction other ancillary relief; Whereas counsel for the Commission, Trabulse and the Relief Defendants have met and conferred to reduce the scope of contested issues to be addressed by the Court at a hearing on the Commission's motion for preliminary injunction and other ancillary relief; and The Commission, Trabulse and the Relief Defendants stipulate and agree to, and ask the Court to adopt as its order, the following: I. IT IS ORDERED that within thirty (30) business days of the entry of this Order, Trabulse and Relief Defendants shall provide a sworn statement to the Commission's counsel, identifying all accounts at any financial institution or brokerage firm (including but not limited to, overseas and domestic banks and brokerage firms) that are either: (a) in Trabulse's or any of the Relief Defendants' names; (b) that Trabulse or any of the Relief Defendants control or in which Trabulse or Relief Defendants have permission to conduct transactions; or (c) in which Trabulse or any of the Relief Defendants has an interest. Nothing about the report mentioned in this Paragraph will constitute, and the Commission will not argue to the contrary, a waiver, in whole or in part, of Trabulse's rights and privileges under the Fifth Amendment of the U.S. Constitution. II. IT IS FURTHER ORDERED that pending further order of the Court, Trabulse and Relief Defendants, and their officers, agents, employees, servants, and all persons in active concert or participation with them, and each of them, are prohibited from making a payment, transfer, or distribution, to any people who have invested in and/or purchased securities from Fahey Fund, L.P. (formerly known as Fahey Hedge Fund, L.P.), or Fahey Financial Group, Inc. (collectively, the "Investors"), or from authorizing the payment, transfer, or distribution of, any funds or assets to any current Investor, with the exception of any payment, transfer, or distribution of any funds or assets pursuant to paragraph VIII, below; /// ///
SEC v. Trabulse et al., C 07-4975 (WHA)

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STIPULATION AND [PROPOSED] ORDER CONCERNING INJUNCTIVE RELIEF

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IT IS FURTHER ORDERED that pending further order of the Court, Trabulse and Relief Defendants, and their officers, agents, employees, servants, and all persons in active concert or participation with them, and each of them, are prohibited from accepting any investments from any current or prospective Investors; IV. IT IS FURTHER ORDERED that pending further order of the Court, Trabulse and Relief Defendants, and their officers, agents, employees, servants, and all persons in active concert or participation with them, and each of them, whatever business names they may operate under, when acting on behalf of Trabulse or Relief Defendant shall limit their future investments solely to investments in securities, derivatives, commodities contracts, foreign currency or other exchangetraded investments. V. IT IS FURTHER ORDERED that pending further order of the Court, Trabulse and Relief Defendants, and their officers, agents, employees, servants, and all persons in active concert or participation with them, and each of them, whatever business names they may operate under, when acting on behalf of Trabulse or Relief Defendants shall not transfer or convey any assets that could be used by Trabulse or others in a personal capacity, except insofar as the asset is transferred to a third party bona fide purchaser for value. In the event that an asset is transferred to a third party bona fide purchaser for value, the proceeds shall be maintained in accordance with all relevant provisions of this stipulation. VI. IT IS FURTHER ORDERED that, pending further order of the Court, Defendant shall provide to the Commission's counsel, within fifteen (15) business days after the end of each calendar month, a sworn accounting of all funds or assets transferred out of any bank or brokerage account pursuant to Paragraphs IV and V, above. Nothing about the accounting mentioned in this Paragraph will constitute, and the Commission will not argue to the contrary, a waiver, in whole or in part, of Trabulse's rights and privileges under the Fifth Amendment of the U.S. Constitution.
SEC v. Trabulse et al., C 07-4975 (WHA)

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STIPULATION AND [PROPOSED] ORDER CONCERNING INJUNCTIVE RELIEF

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IT IS FURTHER ORDERED that, pending further order of the Court, Trabulse and Relief Defendants and their officers, agents, employees, servants, and all persons in active concert or participation with them, and each of them, whatever business names they may operate under are prohibited from transferring or conveying, or authorizing the transfer or conveyance of, any funds or assets currently in the United States to a jurisdiction outside the United States, with the exception of the funds transferred pursuant to Paragraphs IV and V, above. VIII. Nothing is in this order shall be construed to prohibit Trabulse and Relief Defendants, and their officers, agents, employees, servants, and all persons in active concert or participation with them, and each of them, whatever business names they may operate under, from transferring or conveying, or authorizing the transfer or conveyance of, any funds or assets to pay legitimate and reasonable expenses incurred in the ordinary operation of the Relief Defendants. IX. IT IS FURTHER ORDERED that, pending further order of the Court, Defendant shall provide to the Commission's counsel, within fifteen (15) business days after the end of each calendar month, a sworn accounting of all funds or assets used to pay any expenses pursuant to Paragraph VIII, above. Nothing about the accounting mentioned in this Paragraph will constitute, and the Commission will not argue to the contrary, a waiver, in whole or in part, of Trabulse's rights and privileges under the Fifth Amendment of the U.S. Constitution.

SEC v. Trabulse et al., C 07-4975 (WHA)

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STIPULATION AND [PROPOSED] ORDER CONCERNING INJUNCTIVE RELIEF

Case 3:07-cv-04975-WHA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Dated: ____________, 2007 Dated: October 18, 2007 IT IS SO STIPULATED: Dated: October 18, 2007

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/s/ Mark P. Fickes Mark P. Fickes Erin E. Schneider Attorneys for Plaintiff SECURITIES AND EXCHANGE COMMISSION /s/ Clement S. Roberts Michael D. Celio Clement S. Roberts Attorneys for Defendant ALEXANDER JAMES TRABULSE, and Relief Defendants FAHEY FUND, L.P., FAHEY FINANCIAL GROUP, INC., INTERNATIONAL TRADE & DATA, AND ITD TRADING

The Court, having considered this proposed stipulation and order, adopts as its order the provisions of paragraphs I through IX, above. IT IS SO ORDERED

William H. Alsup UNITED STATES DISTRICT JUDGE

SEC v. Trabulse et al., C 07-4975 (WHA)

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STIPULATION AND [PROPOSED] ORDER CONCERNING INJUNCTIVE RELIEF