Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-02641/USCOURTS-cand-3_05-cv-02641-23/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 7:6(b) Federal Commodity Exchange Regulation

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

U.S. COMMODITY FUTURES TRADING 

COMMISSION et al., 

 Plaintiffs, 

 vs. 

NATIONAL INVESTMENT 

CONSULTANTS, INC., et al., 

 Defendants, 

 and 

 THERESA C. WONG, an individual, 

Relief Defendant. 

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Case No.: 05-cv-02641-JSW 

Judge: The Hon. Jeffrey S. White 

Next Hearing: September 1, 2006 

JOINT STATUS REPORT 

 

Plaintiffs, U.S. Commodity Futures Trading Commission (the “Commission”) and the 

Commissioner of Corporations of the State of California (“California”) (collectively “Plaintiffs”) 

and Defendants National Investment Consultants, Inc. (“NICI”), Raymond Tse, Flora Zhou, Yi 

Kerry Xu, and relief Defendant Theresa C. Wong by the undersigned counsel hereby submit this 

Joint Report pursuant to this Court’s Minute Order filed July 20, 2006. 

1. Settlement 

 On May 25, 2006, the parties attended a continued settlement conference held by United 

States Magistrate Judge Edward M. Chen. The parties reached a settlement in principle and 

Magistrate Judge Chen provided the parties with dates to exchange drafts and obtain the 

requisite signatures. Counsel for both Plaintiffs and Defendants worked diligently to resolve 

issues with the language in the settlement documents and after several weeks of negotiations, 

the parties have a final agreed upon a Proposed Consent Order of Permanent Injunction and an 

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accompanying Proposed Stipulated Judgment (the “Proposed Consent Order and Injunction”). 

 The Commission requires signed copies of all proposed consent orders before 

considering an offer of settlement. The settlement documentation was duly forwarded to the 

defendants for signature with time to review and consider the settlement documentation. The 

Commission received the last set of required signatures on June 30, 2006. Kevin K. Batteh, 

counsel for Plaintiff Commission was out of the office for his wedding and honeymoon from the 

end of July until mid August. Counsel fully expected review of the matter to be completed prior 

to his return. The review process is not complete, however; the matter has now been reviewed 

by each Division within the Commodity Futures Trading Commission and has been transmitted 

for final signature by the various Commissioners of the Commodity Futures Trading 

Commission. 

 Counsel is reasonably certain that final sign off will occur prior to the September 1, 2006 

Case Management Conference. Entry of the Proposed Consent Order and Injunction would fully 

resolve this matter and obviate the need for this Court to conduct a further Case Management 

Conference or Hearing on Defendants pending Motion. 

 2. Thelen Reid & Priest’s Motion to Withdraw 

 Thelen Reid & Priest LLP and the individual attorneys of that firm who are counsel of 

record for various defendants (“Thelen Reid”) filed a motion to withdraw as to Defendants NICI 

and Raymond Tse and Relief Defendant Theresa Wong. A hearing on that motion is currently 

scheduled for September 1, 2006. 

 Counsel for the parties anticipate that the Commission will approve the current settlement 

documentation before September 1, 2006 and that the Proposed Consent Order and Injunction 

will be presented to this Honorable Court for signature and entry before that date, thereby 

concluding this litigation and causing the pending motion to withdraw to become moot. 

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In an abundance of caution, the undersigned parties request an extension of the Case 

Management Conference and the Hearing on Defendants Motion to Withdraw as Counsel of 

Record for two weeks to give the parties sufficient time to obtain the requisite Commission 

settlement authority and enter the Proposed Consent Order and Injunction for this Court’s 

review. 

Dated: August 24, 2006 

By 

KEVIN K. BATTEH 

JAMES H. HOLL, III 

Attorneys for Plaintiff 

U.S. COMMODITY FUTURES TRADING 

COMMISSION 

By ________/s/_______________ 

EDWARD KELLY SHINNICK 

WAYNE STRUMPFER 

ALAN S. WEINGER 

Attorneys for Plaintiff 

COMMISSIONER OF CORPORATIONS OF 

THE STATE OF CALIFORNIA 

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COTTON & GUNDZIK, LLP 

By ________/s/________ 

JOHN W. COTTON 

Attorneys for Defendant 

YI KERRY XU 

By ________/s/____________ 

FRED S. KONIGSBERG 

Attorneys for Defendants 

RUN PING ZHOU aka FLORA ZHOU and 

SOUTH CHINA INVESTMENTS, INC. 

THELEN REID & PRIEST LLP 

By ___________/s/_____________ 

EDWARD GARTENBERG 

ALEXANDRA EPAND 

ROBERT A. WEIKERT 

Attorneys for Defendants 

NATIONAL INVESTMENT CONSULTANTS, 

INC.; WEI M. TSE a.k.a. RAYMOND TSE, and 

for Relief Defendant THERESA C. WONG 

I, Kevin K. Batteh, hereby attest, pursuant to N.D. Cal. General Order 45, that the concurrence to 

the filing of this document has been obtained from each signatory hereto. 

 

Case 3:05-cv-02641-JSW Document 124 Filed 08/25/2006 Page 4 of 4

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

GRANTED

Judge Jeffrey S. White

The hearing on the Motion to Withdraw as Counsel of 

Records and the further Case Management Conference are 

HEREBY CONTINUED to September 15, 2006 at 9:00 a.m.

Dated: August 28, 2006

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