Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_16-cv-00344/USCOURTS-caed-1_16-cv-00344-5/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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JOHN B. BULGOZDY (Cal. Bar No. 219897)

Email: bulgozdyj@sec.gov

MANUEL VAZQUEZ (Cal. Bar No. 295576)

Email: vazquezm@sec.gov

MATTHEW T. MONTGOMERY (Cal. Bar No. 260149)

Email: montgomerym@sec.gov

Attorneys for Plaintiff

Securities and Exchange Commission

Michele Wein Layne, Regional Director

Dabney O’Riordan, Associate Regional Director

John W. Berry, Regional Trial Counsel

444 S. Flower Street, Suite 900

Los Angeles, California 90071

Telephone: (323) 965-3998

Facsimile: (213) 443-1904

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

SECURITIES AND EXCHANGE

COMMISSION,

Plaintiff,

vs.

BIC REAL ESTATE DEVELOPMENT 

CORPORATION and DANIEL R. 

NASE, individually and d/b/a 

BAKERSFIELD INVESTMENT 

CLUB,

Defendants,

BIC SOLO 401K TRUST and 

MARGARITA NASE,

Relief Defendants.

Case No. 1:16-cv-00344-LJO-JLT

STIPULATED PRELIMINARY 

INJUNCTION AND ORDERS (1) 

FREEZING ASSETS, AND (2)

APPOINTING A PERMANENT 

RECEIVER 

Case 1:16-cv-00344-DAD-JLT Document 42 Filed 04/08/16 Page 1 of 15
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This matter is before the Court on the stipulation of plaintiff Securities and 

Exchange Commission (“SEC”) and Defendants BIC Real Estate Development 

Corporation (“BIC”) and Daniel R. Nase, individually and doing business as 

Bakersfield Investment Club, and Relief Defendants BIC Solo 401k Trust and 

Margarita Nase, to the entry of a preliminary injunctions, appointment of a permanent 

receiver, and other provisions stated herein. Upon the agreement of the parties and 

for good cause shown, 

I.

IT IS HEREBY ORDERED that Defendants BIC Real Estate Development 

Corporation and Daniel R. Nase, and their officers, agents, servants, employees, 

attorneys, subsidiaries and affiliates, and those persons in active concert or 

participation with any of them 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 absence of any applicable exemption:

A. unless a registration statement is in effect as to a security, making use of 

any means or instruments of transportation or communication in 

interstate commerce or of the mails to sell such security through the use 

or medium of any prospectus or otherwise;

B. unless a registration statement is in effect as to a security, carrying or 

causing to be carried through the mails or in interstate commerce, by any 

means or instruments of transportation, any such security for the purpose 

of sale or for delivery after sale; or

C. making use of any means or instruments of transportation or 

communication in interstate commerce or of the mails to offer to sell or 

offer to buy through the use or medium of any prospectus or otherwise 

any security, unless a registration statement has been filed with the 

Commission as to such security, or while the registration statement is the 

subject of a refusal order or stop order or (prior to the effective date of 

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the registration statement) any public proceeding or examination under 

Section 8 of the Securities Act, 15 U.S.C. § 77h;

in violation of Section 5 of the Securities Act, 15 U.S.C. § 77e.

II.

IT IS FURTHER ORDERED that Defendants BIC Real Estate Development 

Corporation and Daniel R. Nase, and their officers, agents, servants, employees, 

attorneys, subsidiaries and affiliates, and those persons in active concert or 

participation with any of them, 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 securities, by the use of any means or 

instruments of transportation or communication in interstate commerce or by the use 

of the mails:

A. employing any device, scheme or artifice to defraud;

B. obtaining money or property by means of any untrue statement of a 

material fact or any omission to state a material fact necessary in order to 

make the statements made, in light of the circumstances under which 

they were made, not misleading; or

C. engaging in any transaction, practice, or course of business which 

operates or would operate as a fraud or deceit upon the purchaser;

in violation of Section 17(a) of the Securities Act, 15 U.S.C. § 77q(a).

III.

IT IS FURTHER ORDERED that Defendants BIC Real Estate Development 

Corporation and Daniel R. Nase, and their officers, agents, servants, employees, 

attorneys, subsidiaries and affiliates, and those persons in active concert or 

participation with any of them, 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 connection with the purchase or sale of any security, 

by the use of any means or instrumentality of interstate commerce, or of the mails, or 

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of any facility of any national securities exchange: 

A. employing any device, scheme or artifice to defraud;

B. making any untrue statement of a material fact or omitting to state a 

material fact necessary in order to make the statements made, in the light 

of the circumstances under which they were made, not misleading; or

C. engaging in any act, practice, or course of business which operates or 

would operate as a fraud or deceit upon any person;

in violation of Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5 

thereunder, 17 C.F.R. § 240.10b-5.

IV.

IT IS FURTHER ORDERED that, except as otherwise ordered by this Court, 

Defendants BIC Real Estate Development Corporation and Daniel R. Nase, and 

Relief Defendants BIC Solo 401k Trust and Margarita Nase, and their officers, 

agents, servants, employees, attorneys, subsidiaries and affiliate, and those persons in 

active concert with them, 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, transferring, assigning, selling, hypothecating, changing, 

wasting, dissipating, converting, concealing, encumbering, or otherwise disposing of, 

in any manner, any funds, assets, securities, claims or other real or personal property, 

including any notes or deeds of trust or other interest in real property, wherever 

located, of any one of the Defendants or Relief Defendants, or their subsidiaries or 

affiliates, owned by, controlled by, managed by or in the possession or custody of any 

of them and from transferring, encumbering dissipating, incurring charges or cash 

advances on any debit or credit card of the credit arrangement of any one of the 

Defendants or Relief Defendants, or their subsidiaries and affiliates. 

V.

IT IS FURTHER ORDERED that, except as otherwise ordered by this Court, 

an immediate freeze shall be placed on all monies and assets (with an allowance for 

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necessary and reasonable living expenses to be granted only upon good cause shown 

by application to the Court with notice to and an opportunity for the SEC to be heard) 

in all accounts at any bank, financial institution or brokerage firm, or third-payment

payment processor, all certificates of deposit, and other funds or assets, held in the 

name of, for the benefit of, or over which account authority is held by Defendants 

BIC Real Estate Development Corporation and Daniel R. Nase and/or Relief 

Defendants BIC Solo 401k Trust and Margarita Nase, including but not limited to the 

accounts listed below:

BANK OR FINANCIAL 

INSTITUTION NAME ACCOUNT NAME ACCOUNT NUMBER

Wells Fargo Bank, N.A. BIC Real Estate Development xxxxxx9425

Wells Fargo Bank, N.A. Daniel Nase d/b/a Bakersfield Investment 

Club

xxxxxx2516

Wells Fargo Bank, N.A. Tier 1 Solar Power Company xxxxxx5320

Wells Fargo Bank, N.A. WM Petroleum xxxxxx1609

Wells Fargo Bank, N.A. Daniel Nase

Margarita L Nase

xxxxxx4058

Wells Fargo Bank, N.A. Daniel Nase

Margarita L Nase

xxxxxx4066

Wells Fargo Bank, N.A. Daniel Nase

Margarita L Nase

xxxxxx4074

Wells Fargo Bank, N.A. Daniel Nase

Margarita L Nase

xxxxxx3977

Wells Fargo Bank, N.A. BIC Solo 401K Trust and Margarita 

Argueta

xxxxxx5874

Kern Schools Federal 

Credit Union

Daniel Nase

Margarita Lizett Nase

xxxxxx870

Kern Schools Federal 

Credit Union

Daniel Nase

Margarita Lizett Nase

xxxxxx9026

Rabobank, N.A. Property Management of Bakersfield and 

Margarita Nase

xxxxx7412

Wells Fargo Bank, N.A. Daniel Nase dba Bakersfield Investment 

Club

xxxxxx0990

Wells Fargo Bank, N.A. Daniel Nase xxxxxxxxxxxxx4076

Wells Fargo Bank, N.A. BIC Real Estate Development Corporation

Daniel Nase

xxxxxxxxxxxx7531

Wells Fargo Bank, N.A. Los Angeles Investment Club xxxxxx2425

Case 1:16-cv-00344-DAD-JLT Document 42 Filed 04/08/16 Page 5 of 15
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Daniel Nase

Wells Fargo Bank, N.A. WM Petroleum xxxxxx3254

Wells Fargo Bank, N.A. Tier 1 Solar Power Company xxxxxx7698

Wells Fargo Bank, N.A. San Diego County Investment Club

Kenneth L Potter

Daniel Nase

xxxxxx0720

Wells Fargo Bank, N.A. Ferndale Investment Club

Marsie J. Sherwood

Daniel E Nase

xxxxxx8297

Wells Fargo Bank, N.A. Ferndale Investment Club

Marsie J. Sherwood

Daniel E Nase

xxxxxx0971

Wells Fargo Bank, N.A. Los Angeles Investment Club

Daniel Nase

xxxxxx7618

Wells Fargo Bank, N.A. San Diego County Investment Club

Kenneth L Potter

Daniel Nase

xxxxxx1405

Wells Fargo Bank, N.A. Daniel Nase dba Los Angeles Investment 

Club

xxxxxx7618

Wells Fargo Bank, N.A. Bakersfield Real Estate Investors 

Brokerage

Daniel Nase

Gregory Lane

xxxxxx0897

Wells Fargo Bank, N.A. Bakersfield Real Estate Investors 

Brokerage

Daniel Nase

xxxxxx1617

Wells Fargo Bank, N.A. Daniel Nase

Kenneth M. Cooper

Melissa A. Cooper

xxxxxx3413

Wells Fargo Bank, N.A. Daniel Nase

Kenneth M. Cooper

Melissa A. Cooper

xxxxxx7323

Bank of the West Home Sweet Holdings dba Property 

Management of Bakersfield

xxx-xx2636

Bank of the West Home Sweet Holdings dba Property 

Management of Bakersfield

xxx-xx9717

Lendingclub.com Daniel R. Nase xxx1059

Lendingclub.com Daniel R. Nase xxx0179

Lendingclub.com BIC Real Estate Development Corp. xxxx7613

Any bank, financial institution or brokerage firm, or third-party payment 

processor holding such monies and assets described above shall hold and retain 

within their control and prohibit the withdrawal, removal, transfer or other disposal of 

any such funds or other assets except as otherwise ordered by this Court.

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VI.

IT IS FURTHER ORDERED that Defendants may use $50,000 of the equity of 

the property located at 1117 Adelaide, Bakersfield, California, for legal fees; 

provided that if the property needs to be sold to provide such funds, that the sale 

terms shall be subject to the stipulation and approval of the SEC and the permanent 

receiver, and that any monies in excess of $50,000 shall be deposited with the 

permanent receiver.

VII.

IT IS FURTHER ORDERRED that Defendant Daniel R. Nase will, no later 

than April 16, 2016, provide documentation sufficient to support a request for $5,000 

a month in living expenses to be drawn solely from the funds available in his account 

at Wells Fargo ending in 4058; and documentation sufficient to support a finding that 

such funds are not the proceeds of any fraudulent activity. To the extent such 

showing is made to the satisfaction of the Court and subject to such further order as is 

appropriate, Defendant Nase may use such funds as are available in his Wells Fargo 

account ending in 4058 for monthly living expenses, up to the amount of funds in that 

account that are not otherwise identified as proceeds of any fraudulent activity. 

VIII.

IT IS FURTHER ORDERED that, except as otherwise ordered by this Court, 

an immediate freeze shall be placed on the title of the following properties, which 

shall not be mortgaged, transferred, or otherwise hypothecated: 

3205 Mesa Drive, Bakersfield, CA

2935 Shelly, Bakersfield, CA

2013 Pictoria Drive, Bakersfield, CA 

343 Ray Street, Bakersfield, CA

400 Stirrup Avenue, Bakersfield, CA

2006 South I Street, Bakersfield, CA

8100 Lexington Avenue, Bakersfield, CA

3509 Meeks Avenue, Bakersfield, CA 

1420 Canyon Court, Bakersfield, CA

8321 Pioneer Drive, Bakersfield, CA

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2101 Fairfax Road, Bakersfield, CA

1504 Flower Street, Bakersfield, CA

2612 Security Avenue, Bakersfield, CA

2501 Lake Street, Bakersfield, CA

137 Bendix Street, Bakersfield, CA

3324 Gardenia Avenue, Bakersfield, CA

912 Meadows Street, Bakersfield, CA

1317 Wilson Avenue, Bakersfield, CA

533 Stephens Drive, Bakersfield, CA 

1200 El Tejon Avenue, Bakersfield, CA

2126 Kentucky Street, Bakersfield, CA

1401 Oneill Avenue, Bakersfield, CA

137 North Stine Road, Bakersfield, CA

1509 West Drive, Bakersfield, CA

1413 Penny Street, Bakersfield, CA

137 Dunlap Street, Bakersfield, CA

2004 Quincy Street, Bakersfield, CA 

3217 Idaho Street, Bakersfield, CA

940 Beaver Rise Drive, Bakersfield, CA

212 E. Roberts Lane, Bakersfield, CA

410 Minner Avenue, Bakersfield, Ca

1300 Castaic Avenue, Bakersfield, CA

2813 Blade Avenue, Bakersfield, CA

409 Villa Street, Bakersfield, CA

5101 Dunsmuir Road, Bakersfield, CA

3409 Monterey Street, Bakersfield, CA

2617 Aberdeen Court, Bakersfield, CA

8304 Orange Blossom, Bakersfield, CA

3101 Idaho Street, Bakersfield, CA

2309 Elton Avenue, Bakersfield, CA

8913 Lanora Avenue, Bakersfield, CA 

5201 Dunsmuir Road, Bakersfield, CA

3418 Gardenia Avenue, Bakersfield, CA

1108 Wilson Avenue, Bakersfield, CA

308 Camwood, Bakersfield, CA

1705 Doolittle Avenue, Bakersfield, Ca

609 Myrtle Street, Bakersfield, CA

3724 Verdugo Lane, Bakersfield, CA

3009 River Boulevard, Bakersfield, CA

1137 Mornington Avenue, Bakersfield, CA

Case 1:16-cv-00344-DAD-JLT Document 42 Filed 04/08/16 Page 8 of 15
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9633 Staffordshire Way, Bakersfield, CA

3708 Stokes, Bakersfield, CA

715 Arvin Street, Bakersfield, CA

4216 Milo Avenue, Bakersfield, CA 

8616 Butternut Avenue, Bakersfield, CA

11200 Cave Avenue, Bakersfield, CA

5612 Via Venezia, Bakersfield, CA

15025 Colonia De Las Rosas, Bakersfield, CA

4701 Cypress Glen Ave., Bakersfield, CA

9148 Acabar Court, Bakersfield, CA

5301 Peppertree Lane, Bakersfield, CA

1024 Bernard Street, Bakersfield, CA

1511 West Drive, Bakersfield, CA

IX.

IT IS FURTHER ORDERED that, except as otherwise ordered by this Court, 

each of the Defendants BIC Solo 401k Trust and Margarita Nase, and Relief 

Defendants BIC Solo 401k Trust and Margarita Nase, and their officers, agents, 

servants, employees, attorneys, subsidiaries and affiliates, and those persons in active 

concert or participation with any of them, 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: destroying, mutilating, concealing, transferring, 

altering, or otherwise disposing of, in any manner, any documents, which includes all 

books, records, computer programs, computer files, computer printouts, contracts, 

emails, correspondence, memoranda, brochures, or any other documents of any kind 

in their possession, custody or control, however created, produced, or stored 

(manually, mechanically, electronically, or otherwise), pertaining in any manner to 

Defendants BIC Real Estate Development Corporation and Daniel R. Nase and Relief 

Defendants BIC Solo 401k Trust and Margarita Nase.

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X.

IT IS FURTHER ORDERED that David Stapleton is appointed as permanent 

receiver of Defendant BIC Real Estate Development Corporation and its subsidiaries 

and affiliates, including but not limited to WM Petroleum; Target Oil & Gas Drilling, 

Inc.; Tier 1 Solar Power Company, Tier 1 Solar Power Company, LLC; and Home 

Sweet Holdings, with full powers of an equity receiver, including, but not limited to, 

full power over all funds, assets, collateral, premises (whether owned, leased, 

occupied, or otherwise controlled), choses in action, books, records, papers and other 

property belonging to, being managed by or in the possession of or control of

Defendant BIC Real Estate Development Corporation and its subsidiaries and 

affiliates, and that such receiver is immediately authorized, empowered and directed:

A. to have access to and to collect and take custody, control, possession, 

and charge of all funds, assets, collateral, premises (whether owned, 

leased, occupied, or otherwise controlled), choses in action, books, 

records, papers and other real or personal property, wherever located, of 

or managed by Defendant BIC Real Estate Development Corporation, 

and its subsidiaries and affiliates, with full power to sue, foreclose, 

marshal, collect, receive, and take into possession all such property 

(including access to and taking custody, control, and possession of all 

such Defendant BIC Real Estate Development Corporation property, and 

that of its subsidiaries and affiliates;

B. to have control of, and to be added as the sole authorized signatory for, 

all accounts of the entities in receivership, including all accounts at any 

bank, title company, escrow agent, financial institution or brokerage firm 

(including any futures commission merchant) which has possession, 

custody or control of any assets or funds of Defendant BIC Real Estate 

Development Corporation, and its subsidiaries and affiliates, or which 

maintains accounts over which Defendant BIC Real Estate Development 

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Corporation, and its subsidiaries and affiliates, and/or any of its

employees or agents have signatory authority;

C. to conduct such investigation and discovery as may be necessary to 

locate and account for all of the assets of or managed by Defendant BIC 

Real Estate Development Corporation and its subsidiaries and affiliates, 

and to engage and employ attorneys, accountants and other persons to 

assist in such investigation and discovery; 

D. to take such action as is necessary and appropriate to preserve and take 

control of and to prevent the dissipation, concealment, or disposition of 

any assets of or managed by Defendant BIC Real Estate Development 

Corporation, and its subsidiaries and affiliates;

E. to make an accounting, as soon as practicable, to this Court and the SEC

of the assets and financial condition of Defendant BIC Real Estate 

Development Corporation and to file the accounting with the Court and 

deliver copies thereof to all parties;

F. to make such payments and disbursements from the funds and assets 

taken into custody, control, and possession or thereafter received by him 

or her, and to incur, or authorize the making of, such agreements as may 

be necessary and advisable in discharging his or her duties as permanent

receiver;

G. to employ attorneys, accountants, and others to investigate and, where 

appropriate, to institute, pursue, and prosecute all claims and causes of 

action of whatever kind and nature which may now or hereafter exist as 

a result of the activities of present or past employees or agents of 

Defendant BIC Real Estate Development Corporation, and its

subsidiaries and affiliates; and 

H. to have access to and monitor all mail, electronic mail, and video phone 

of the entities in receivership in order to review such mail, electronic 

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mail, and video phone which he or she deems relates to their business 

and the discharging of his or her duties as permanent receiver.

XI.

IT IS FURTHER ORDERED that Defendant BIC Real Estate Development 

Corporation and its subsidiaries and affiliates, including all of the other entities in 

receivership, and their officers, agents, servants, employees and attorneys, and any 

other persons who are in custody, possession or control of any assets, collateral, 

books, records, papers or other property of or managed by any of the entities in 

receivership, shall forthwith give access to and control of such property to the 

permanent receiver.

XII.

IT IS FURTHER ORDERED that no officer, agent, servant, employee or 

attorney of Defendant BIC Real Estate Development Corporation shall take any 

action or purport to take any action, in the name of or on behalf of Defendant BIC 

Real Estate Development Corporation without the written consent of the permanent

receiver or order of this Court.

XIII.

IT IS FURTHER ORDERED that, except by leave of this Court, during the 

pendency of this receivership, all clients, investors, trust beneficiaries, note holders, 

creditors, claimants, lessors and all other persons or entities over whom/which the 

Court has jurisdiction, seeking relief of any kind, in law or in equity, from Defendant 

BIC Real Estate Development Corporation, or its subsidiaries or affiliates, and all 

persons acting on behalf of any such investor, trust beneficiary, note holder, creditor, 

claimant, lessor, consultant group or other person, including sheriffs, marshals, 

servants, agents, employees and attorneys, are hereby restrained and enjoined from, 

directly or indirectly, with respect to these persons and entities:

A. commencing, prosecuting, continuing or enforcing any suit or 

proceeding (other than the present action by the SEC or any other action 

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by the government) against any of them;

B. using self-help or executing or issuing or causing the execution or 

issuance of any court attachment, subpoena, replevin, execution or other 

process for the purpose of impounding or taking possession of or 

interfering with or creating or enforcing a lien upon any property or 

property interests owned by or in the possession of Defendant BIC Real 

Estate Development Corporation; and

C. doing any act or thing whatsoever to interfere with taking control, 

possession or management by the permanent receiver appointed 

hereunder of the property and assets owned, controlled or managed by or 

in the possession of Defendant BIC Real Estate Development 

Corporation, or in any way to interfere with or harass the permanent

receiver or his or her attorneys, accountants, employees, or agents or to 

interfere in any manner with the discharge of the permanent receiver’s 

duties and responsibilities hereunder.

XIV.

IT IS FURTHER ORDERED that Defendant BIC Real Estate Development 

Corporation, and its subsidiaries, affiliates, officers, agents, servants, employees and 

attorneys, shall cooperate with and assist the permanent receiver and shall take no 

action, directly or indirectly, to hinder, obstruct, or otherwise interfere with the 

permanent receiver or his attorneys, accountants, employees or agents, in the conduct 

of the permanent receiver’s duties or to interfere in any manner, directly or indirectly,

with the custody, possession, management, or control by the permanent receiver of 

the funds, assets, collateral, premises, and choses in action described above.

XV.

IT IS FURTHER ORDERED that Defendant BIC Real Estate Development 

Corporation, and its subsidiaries and affiliates, shall pay the costs, fees and expenses 

of the permanent receiver incurred in connection with the performance of his duties 

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described in this Order, including the costs and expenses of those persons who may 

be engaged or employed by the permanent receiver to assist him in carrying out his 

duties and obligations. All applications for costs, fees, and expenses for services 

rendered in connection with the receivership other than routine and necessary 

business expenses in conducting the receivership, such as salaries, rent, and any and 

all other reasonable operating expenses, shall be made by application setting forth in 

reasonable detail the nature of the services and shall be heard by the Court.

XVI.

IT IS FURTHER ORDERED that no bond shall be required in connection with 

the appointment of the permanent receiver. Except for an act of gross negligence, the 

permanent receiver shall not be liable for any loss or damage incurred by any of the 

defendants, their officers, agents, servants, employees and attorneys or any other 

person, by reason of any act performed or omitted to be performed by the permanent

receiver in connection with the discharge of his or her duties and responsibilities.

XVII.

IT IS FURTHER ORDERED that representatives of the SEC and any other 

government agency are authorized to have continuing access to inspect or copy any 

or all of the corporate books and records and other documents of Defendant BIC Real 

Estate Development Corporation, and the other entities in receivership, and 

continuing access to inspect their funds, property, assets and collateral, wherever 

located.

XVIII.

IT IS FURTHER ORDERED that the parties may continue to take discovery 

using third-party subpoenas issued pursuant to the Federal Rules of Civil Procedure.

XIX.

IT IS FURTHER ORDERED that this Court shall retain jurisdiction over this 

action for the purpose of implementing and carrying out the terms of all orders and 

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decrees which may be entered herein and to entertain any suitable application or 

motion for additional relief within the jurisdiction of this Court.

CONCLUSION AND ORDER

IT IS SO ORDERED.

Dated: April 8, 2016 /s/ Lawrence J. O’Neill 

UNITED STATES DISTRICT JUDGE

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