Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-01724/USCOURTS-caed-2_07-cv-01724-15/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 12:22 Securities Fraud

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[PROPOSED] ORDER ON PRELIM. INJ.

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SECURITIES AND EXCHANGE COMMISSION, 

 Plaintiff, 

 vs. 

SECURE INVESTMENT SERVICES, INC., 

AMERICAN FINANCIAL SERVICES, INC., 

LYNDON GROUP, INC., DONALD F. NEUHAUS, 

and KIMBERLY A. SNOWDEN, 

 Defendants. 

Case No. 2:07-cv-01724-LEW-CMK 

ORDER ON PRELIMINARY INJUNCTION 

REQUEST 

BACKGROUND

 This matter came before the Court at a hearing on November 2, 2007, on the issue of whether 

the Court should issue a preliminary injunction as requested by Plaintiff Securities and Exchange 

Commission (“Commission”). 

 On August 23, 2007, the Commission filed its complaint, application for a temporary 

restraining order and order to show cause why a preliminary injunction should not issue, and other 

items in support. On August 24, 2007, the Court issued a temporary restraining order (“TRO”) and 

set the show cause hearing for September 21, 2007, later rescheduling the hearing for November 2. 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

SACRAMENTO DIVISION

Case 2:07-cv-01724-GEB-CMK Document 86 Filed 11/07/07 Page 1 of 2
-2- [PROPOSED] ORDER ON PRELIM. INJ.

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 On October 26, 2007, one week before the preliminary injunction hearing date, Defendant 

Kimberly Snowden filed a notice stating that she did not oppose the principal injunctive relief sought 

by the Commission, but did oppose certain asset freeze, discovery, and document preservation 

language the Commission had proposed to the other parties. Snowden’s notice also sought a stay of 

discovery. On October 29, 2007, the Commission filed its reply brief, which included a request that 

the Court strike Snowden’s notice as untimely. 

ORDER

 Having considered the papers submitted by the parties and their arguments presented at the 

November 2 hearing, the Court now rules as follows: 

 1. The Commission has demonstrated a likelihood of success on the merits, and 

irreparable injury is presumed. Accordingly, the Commission’s request for a preliminary injunction 

is GRANTED, in that the TRO is adopted as the Court’s preliminary injunction order and will remain 

in full force and effect until trial or further order of the Court, except that excluded from the asset 

freeze provisions in paragraphs IV. and V. of the TRO are the following: (a) all routine 

disbursements, draws, and/or salaries that Kimberly Snowden’s husband receives in the future from 

his law firm; (b) future income that Kimberly Snowden receives up to the pre-tax amount of $1,800 

monthly; and (c) future Social Security payments and other income that Donald Neuhaus and/or his 

wife receive up to the combined total pre-tax amount of $3,000 monthly. 

 2. Snowden’s request for a stay of discovery is DENIED. 

 3. The Commission’s request to strike Snowden’s October 26 notice is DENIED. 

 4. IT IS ORDERED that all parties shall complete their initial disclosures under Rule 

26(a) of the Federal Rules of Civil Procedure by November 9, 2007. 

 

DATED: November 6, 2007. 

_____________________________________ 

Judge of the United States District Court 

Case 2:07-cv-01724-GEB-CMK Document 86 Filed 11/07/07 Page 2 of 2