Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_07-cv-04975/USCOURTS-cand-3_07-cv-04975-7/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:77 Securities Fraud

---

SEC v. Trabulse et al., C 07-4975 (WHA) STIPULATION AND [PROPOSED] ORDER

APPOINTING MONITOR

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 

MARC J. FAGEL (Cal. Bar No. 154425) 

MARK P. FICKES (Cal. Bar No. 178570) 

 (fickesm@sec.gov) 

ERIN E. SCHNEIDER (Cal. Bar No. 216114) 

 (schneidere@sec.gov) 

Attorneys for Plaintiff 

SECURITIES AND EXCHANGE COMMISSION 

44 Montgomery Street, Suite 2600 

San Francisco, California 94104 

Telephone: (415) 705-2500 

Facsimile: (415) 705-2501 

SECURITIES AND EXCHANGE COMMISSION, 

 Plaintiff, 

 vs. 

ALEXANDER JAMES TRABULSE, 

 Defendant, 

 and 

FAHEY FUND, L.P., FAHEY FINANCIAL 

GROUP, INC., INTERNATIONAL TRADE & 

DATA, and ITD TRADING, 

 Relief Defendants. 

Case No. C 07-4975 (WHA) 

STIPULATION AND [PROPOSED] ORDER 

APPOINTING MONITOR 

 Whereas Plaintiff Securities and Exchange Commission (“Commission”) filed a complaint 

against defendant Alexander James Trabulse (“Trabulse” or “Defendant”) and Relief Defendants 

Fahey Fund, L.P., Fahey Financial Group, Inc., International Trade & Data, and ITD Trading 

(collectively, the “Relief Defendants”); 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

Case 3:07-cv-04975-WHA Document 58 Filed 12/17/07 Page 1 of 5
SEC v. Trabulse et al., C 07-4975 (WHA) -2- STIPULATION AND [PROPOSED] ORDER

APPOINTING MONITOR

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 

 Whereas the Commission, Trabulse and the Relief Defendants stipulated to certain injunctive 

relief on October 18, 2007; 

 Whereas the Court adopted as its order the stipulation of the parties on October 29, 2007; 

 Whereas, the Court held a hearing on the Commission’s motion for additional injunctive and 

other ancillary relief on December 6, 2007; 

 Whereas the Court granted the Commission’s motion for additional injunctive and other 

ancillary relief, including appointment of a monitor; and 

 Whereas the Court issued its order on December 7, 2007 (the “December 7 Order”), and 

directed the parties to submit, either jointly or individually, a proposed candidate to serve as monitor; 

 Therefore, 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 Michael A. Grassmueck be appointed to serve as an independent 

monitor (“Monitor”) and has standing to appear in this action with the powers set forth herein. The 

Monitor will focus on protecting the interests of the persons who have invested in or purchased 

securities from and/or loaned money to the Defendant or Relief Defendants, and any subsidiaries and 

affiliated funds (collectively, the “Investors”). Documents evidencing Mr. Grassmueck’s 

qualifications to serve as Monitor are attached hereto as Exhibit A. 

II. 

IT IS FURTHER ORDERED that the Monitor is empowered to oversee the activities of the 

Defendant and Relief Defendant as set forth in the December 7 Order. 

III. 

IT IS FURTHER ORDERED that, if by the date set forth in the Court’s order of December 

10, 1007, that Defendant and Relief Defendants are not providing the accounting called for in the 

December 7 Order, the Monitor shall prepare an accounting. In such circumstance, the Monitor will 

promptly notify the Court and the Commission to obtain guidance as to the scope of the accounting 

and the amount of time that may be required to prepare this accounting. 

Case 3:07-cv-04975-WHA Document 58 Filed 12/17/07 Page 2 of 5
SEC v. Trabulse et al., C 07-4975 (WHA) -3- STIPULATION AND [PROPOSED] ORDER

APPOINTING MONITOR

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 

IV. 

IT IS FURTHER ORDERED that the Monitor and his professionals shall receive reasonable 

compensation and expense reimbursements in amounts commiserate with the services performed by 

the Monitor and his professionals. The rates charged by the Monitor and his professionals are set 

forth in Exhibit A, attached hereto. Counsel for all parties will review and approve payment for the 

Monitor. In the event of any dispute, the Monitor may apply to the Court for such compensation and 

expense reimbursement each month and such amounts shall be immediately paid from the bank 

accounts of the Defendant or Relief Defendants upon presentation of an Order approving such fees 

from this Court. 

V. 

IT IS FURTHER ORDERED that the Monitor shall not be responsible for the operation of 

Defendant’s or Relief Defendants’ businesses, any of the funds or the preservation or sale of any 

assets. The Monitor shall have all of the immunities afforded to a Court appointed receiver in a 

federal action. The Monitor and all persons who may be engaged or employed by the Monitor to 

assist him in carrying out his duties or obligations hereunder shall not be liable for any act or 

omission of the Monitor or such person, respectively, or any of their partners, employees, agents or 

attorneys, unless it shall be proven that the Monitor or such other person acted recklessly or in bad 

faith. In particular, the Monitor shall not, under any circumstances, be liable for any losses in 

connection with any of the Relief Defendants’ funds or the loss of Investors’ Funds arising out of or 

related to the Monitor’s work hereunder, including, but not limited to, losses from either the sale or 

failure to sell securities or delays in the sale of securities by Defendant or Relief Defendants during 

the course of the Monitor’s term. No claim may be filed against the Monitor without first obtaining 

Court approval to file such an action. 

VI. 

IT IS FURTHER ORDERED that all prior orders of the Court concerning injunctive or other 

ancillary relief are by reference as though set forth in full herein. 

Case 3:07-cv-04975-WHA Document 58 Filed 12/17/07 Page 3 of 5
SEC v. Trabulse et al., C 07-4975 (WHA) -4- STIPULATION AND [PROPOSED] ORDER

APPOINTING MONITOR

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 

VII. 

Defendant and Relief Defendants expressly agree to indemnify and hold harmless the Monitor 

and his retained professionals, accountants, agents, employees, consultants and attorneys from and 

against all actions, liabilities, damages, losses, costs and expenses including but not limited to 

reasonable attorneys' fees and professional fees arising out of work for the Monitor under the terms of 

this Order. 

VIII. 

The Commission or the Monitor may, in their discretion, petition the Court to modify this 

Order. The Commission shall have the right to petition the Court for immediate relief if the 

Commission deems that any of the Defendant’s or Relief Defendants’ ongoing activities are contrary 

to the best interest of Investors; such relief may include appointment of Mr. Grassmueck as receiver 

or distribution agent in the event that the Commission, Defendant and Relief Defendants reach a 

settlement in this action. 

IX. 

 The parties stipulate and agree that any statements, documents or other information provided 

by Trabulse or the Relief Defendants in compliance with this stipulation and proposed order will 

constitute, and neither the Commission nor the Monitor 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. Notwithstanding the foregoing, this stipulation is without prejudice to the United States 

Attorney arguing a waiver of the privileges under the Fifth Amendment, as Commission cannot bind 

the United States Attorney or any other governmental agency.

/// 

/// 

/// 

Case 3:07-cv-04975-WHA Document 58 Filed 12/17/07 Page 4 of 5
SEC v. Trabulse et al., C 07-4975 (WHA) -5- STIPULATION AND [PROPOSED] ORDER

APPOINTING MONITOR

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 

IT IS SO STIPULATED: 

Dated: December 14, 2007 /s/ Mark P. Fickes

 Mark P. Fickes 

 Erin E. Schneider 

 Attorneys for Plaintiff 

 SECURITIES AND EXCHANGE COMMISSION 

Dated: December 14, 2007 /s/ Michael D. Celio

 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 

Dated: _______________, 2007 

 

 William H. Alsup 

 UNITED STATES DISTRICT JUDGE 

December 17

U

NITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IT IS SO ORDERED

Judge William Alsup

Case 3:07-cv-04975-WHA Document 58 Filed 12/17/07 Page 5 of 5