Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_20-cv-00423/USCOURTS-caed-1_20-cv-00423-1/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 18:1836(a) Injunction against Misappropriation of Trade Secrets

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STIPULATED RESTRAINING ORDER

Scott W. Wellman, SBN: 82897

Christopher Wellman, SBN: 304700

WELLMAN & WARREN LLP

24411 Ridge Route, Suite 200

Laguna Hills, CA 92653

Tel: (949) 580-3737

Fax: (949) 580-3738

Attorneys for Plaintiff, 

Eaconomy, LLC

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

EACONOMY, LLC, a Delaware Limited 

Liability Company,

 Plaintiff,

 vs.

AUVORIA PRIME LLC, a Wyoming Limited 

Liability Company, SAL LETO, an individual, 

VANESSA LETO, an individual, WILLIAM 

(BILL) WYNNE, an individual, KAREEM 

MARADONA, an individual, TYLER 

MACKECHNIE, an individual, SARAH 

WALDROP, an individual, DONTA LEWIS, 

an individual, MICHAEL MANUEL, an 

individual, DARIK ALEXANDER, an 

individual, CAMERON KERKAR, an 

individual, CASEY HOLLADAY, an 

individual, KANOA NARTATEZ, an 

individual, and BOLT CAPITAL, a Nevis 

Company, OMAR LOPEZ, an individual, 

MAURICE KATZ, an individual, JOSHUA 

PHAIR, an individual

 Defendants.

 

Case No. 1:20:cv-00423

Assigned for all purposes to:

Judge: Dale A. Drozd

STIPULATED RESTRAINING ORDER

Complaint Filed: March 23, 2020

Plaintiff, Eaconomy, LLC, and defendants, Auvoria Prime LLC and Sal Leto, by and 

through their respective attorneys, do hereby agree and stipulate as follows:

1. Plaintiff Eaconomy, LLC (“Eaconomy”) has filed this action against, among 

others, defendants Auvoria Prime LLC (“Auvoria Prime”) and Sal Leto (“Leto”). 

Case 1:20-cv-00423-DAD-BAM Document 24 Filed 04/20/20 Page 1 of 5
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STIPULATED RESTRAINING ORDER

Leto is the former Vice-President of Operations of Eaconomy and is now an officer 

of Auvoria Prime.

2. The action alleges, and defendants dispute, that the defendants have engaged in 

wrongdoing, including, but not limited to, misappropriating the trade secrets of 

Eaconomy, interfering with Eaconomy’s contractual relationships with its 

distributors (known as ISPs), and engaging in unfair business practices. The action 

further alleges the following:

a. Eaconomy is in the business of selling and licensing software programs that 

allows the user, after setting certain discretionary criteria, to trade in the FOREX 

markets (i.e. the foreign currency exchange markets). Eaconomy uses the 

“network marketing” model (also known as the multi-level marketing or MLM 

model) to distribute its software products. 

b. Network marketing companies, such as Eaconomy, market and distribute their 

products through a network of independent distributors. In Eaconomy’s 

business, the independent distributors are called an ISP which stands for 

“Independent Software Partner.” A distributor can earn commissions on the sale 

of products by it, as well as the sale of products of those distributors aligned in 

multiple levels beneath the distributor (hence the name multi-level marketing). 

The distributors aligned below any distributor is known as that distributor’s 

“downline.” 

c. The database consisting of the list of distributors, their rank, their contact 

information, their payment history, their product order history, their pricing 

history, their customer contact information, their bonus history as well as other 

information is a prime asset of Eaconomy and are kept on Eaconomy’s

computerized servers with restricted access. Access to this database can only be 

achieved through a password. In other words, the list of distributors (which

includes their contact information) is akin to a customer list and is maintained in 

confidence. 

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STIPULATED RESTRAINING ORDER

d. Eaconomy goes to extensive lengths to maintain the secrecy of its data base. Not 

only is access to the computerized base strictly controlled, but any distributor 

must agree to Eaconomy’s policies and procedures, which specifically state that 

the distributor list constitutes a proprietary asset of Eaconomy.

e. In addition, each distributor, prior to becoming a distributor, expressly agrees to 

maintain the confidentiality of Eaconomy’s proprietary information and to abide 

by the following written policy:

Downline Genealogy Reports

The Eaconomy Downline Genealogy Reports are confidential and contain proprietary 

business trade secrets. An ISP may not use the reports for any purpose other than for 

developing their Eaconomy business. During any term of the ISP User Agreement and for a 

period of five (5) years after the termination or expiration of the ISP User Agreement between 

Independent Sales Associate and Eaconomy, for any reason whatsoever, an ISP shall not, on 

his/her own behalf or on behalf of any other person, partnership, association, corporation, or 

other entity: disclose any information contained in the reports to any third party; use the 

reports to compete with Eaconomy or recruit or solicit any ISP or Customer listed on the 

reports to participate in other multi-level marketing ventures. This provision shall survive the 

termination or expiration of this Agreement.

f. The distributors also expressly agree to not use Eaconomy’s proprietary 

information about its sales organization to compete either directly or indirectly 

with the company. 

g. The Eaconomy agreement with its distributors further states as follows:

Unauthorized Recruiting

As an independent contractor, ISP's may participate in other direct selling or network 

marketing or multi-level marketing ventures (collectively, "multi-level marketing"), and 

ISP's may engage in selling activities related to non-eaconomy products and services if they 

desire to do so. Although an ISP may elect to participate in another multi-level marketing 

opportunity, he/she is prohibited from unauthorized recruiting activities, which include the 

following: recruiting or enrolling Eaconomy customers or ISP's for other multi-level 

marketing business ventures, either directly or through a third party. This includes, but is 

not limited to, presenting or assisting in the presentation of other multi-level marketing 

business ventures to any Eaconomy Customer or ISP, or implicitly or explicitly 

encouraging any Eaconomy Customer or ISP to join other business ventures. It is a 

violation of this policy to recruit or enroll a Eaconomy Customer or ISP for another multilevel marketing business, even if the ISP does not know that the prospect is also an 

Eaconomy Customer or ISP; producing any literature, tapes, or promotional material of any 

nature for another multi-level marketing business which is used by the ISP or any third 

person to recruit Eaconomy Customers or ISP for that business venture; selling, offering to 

sell, or promoting any competing products or services to Eaconomy Customers or ISP. The 

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only exception to this rule is that direct customer and personal enrollees of the ISP can be 

exposed to a product or service (first level, personally sponsored only). Eaconomy may 

cancel the ISP's agreement for violations to this provision. In addition, when an ISP 

participates in other multi-level marketing ventures, the ISP may not participate in any 

Eaconomy leadership meetings, conferences, qualification seminars, and the like.

h. Eaconomy further alleges, and defendants dispute, that the defendants 

improperly and unlawfully recruited its distributors to join Auvoria Prime and 

are still engaging in such improper activity. 

3. On April 6, 2020, Eaconomy filed an ex parte motion for a temporary restraining 

order (“Motion”). The Motion requested an order that, among other things, 

prohibited Auvoria Prime and Mr. Leto from contacting, soliciting and/or 

recruiting Eaconomy’s ISP’s into Auvoria Prime. Defendants filed an opposition 

to the Motion on April 9, 2020.

4. On April 16, 2020, the Court ordered that an evidentiary hearing on the Motion 

would take place on April 17, 2020. The parties thereafter negotiated the terms of 

this stipulated restraining order to resolve the Motion, and the hearing on the 

Motion was taken off calendar.

5. The Defendants dispute the facts asserted by Eaconomy that support this order and 

nothing herein shall prejudice either parties’ right to prosecute or defend the merits 

of this action.

6. Based on the above, Eaconomy and defendants Auvoria Prime and Leto have 

agreed to the following restraining order:

ORDER

Defendants Auvoria Prime, LLC, and Sal Leto shall NOT, directly or in active concert with 

anyone else, knowingly recruit, sponsor or solicit any existing Eaconomy, LLC distributor (known 

as an ISP) or customer to join Auvoria Prime, LLC as a distributor or customer. This prohibition 

shall not apply to (i) a distributor’s personally sponsored downline at Eaconomy, or (ii) ISPs who,

without solicitation, seek to join Auvoria Prime, LLC. Within 48 hours of entry of this Order, 

Auvoria Prime, LLC shall notify, in writing, each of its distributors of this prohibition by email. This 

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prohibition shall remain in effect until the case is dismissed or otherwise modified by court 

order. Nothing herein is intended to resolve whether, for purposes of this prohibition, any distributor 

or other person constitutes someone acting “in active concert” with Auvoria Prime, LLC or Sal Leto.

SERVICE OF THIS ORDER

It is further ordered that service of this Order on Auvoria Prime and Leto shall be deemed 

complete at such time as it is emailed to the Chris Polychron, Esq., attorney for Auvoria Prime and 

Leto at the following email address: cpolychron@coastlawgroup.com. 

DATED: April 20, 2020 WELLMAN & WARREN

By: ___/s/ Scott Wellman__________

SCOTT WELLMAN

Attorneys for Plaintiff

DATED: April 20, 2020 COAST LAW GROUP, LLP

By: _/s/ Chris Polychron___________

CHRIS POLYCHRON

Attorneys for Defendants,

Auvoria Prime and Sal Leto

The court hereby adopts the above orders as the orders of this court. 

IT IS SO ORDERED.

Dated: April 20, 2020 

UNITED STATES DISTRICT JUDGE

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