Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_23-cv-02812/USCOURTS-caed-2_23-cv-02812-1/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1345 Replevin &amp; Conversion

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ORDER GRANTING TRO 1 

PHILLIP A. TALBERT 

United States Attorney 

TARA AMIN 

Assistant United States Attorney 

501 I Street, Suite 10-100 

Sacramento, CA 95814 

Telephone: (916) 554-2700 

Facsimile: (916) 554-2900 

AMANDA N. LISKAMM 

Director 

RACHAEL L. DOUD 

Assistant Director 

ANDREW K. CRAWFORD 

FRANCISCO L. UNGER 

Trial Attorneys 

Consumer Protection Branch 

Civil Division 

U.S. Department of Justice 

450 5th Street, NW 

Washington, DC 20530 

Telephone: (202) 451-7301 

Email: andrew.k.crawford@usdoj.gov 

Attorneys for Plaintiff United States of America 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

United States of America, 

Plaintiff, 

v. 

[SEALED], 

Defendant[s]. 

 Civil Case No. 2:23-cv-02812-TLN-DB 

ORDER GRANTING EX PARTE MOTION 

FOR (1) TEMPORARY RESTRAINING 

ORDER WITH ASSET FREEZE, 

APPOINTMENT OF A TEMPORARY 

RECEIVER, OTHER EQUITABLE 

RELIEF, AND ORDER TO SHOW CAUSE 

WHY A PRELIMINARY INJUNCTION 

SHOULD NOT ISSUE (2) ORDER 

WAIVING NOTICE REQUIREMENT 

LODGED UNDER SEAL PURSUANT TO 

ORDER OF THE COURT DATED 

____________________________________ 

 

Case 2:23-cv-02812-TLN-SCR Document 7 Filed 12/06/23 Page 1 of 19
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ORDER GRANTING TRO 2 

[FILED/LODGED CONCURRENTLY 

UNDER SEAL: EX PARTE MOTION FOR 

(1) TEMPORARY RESTRAINING ORDER 

WITH ASSET FREEZE, APPOINTMENT 

OF A TEMPORARY RECEIVER, OTHER 

EQUITABLE RELIEF, AND ORDER TO 

SHOW CAUSE WHY A PRELIMINARY 

INJUNCTION SHOULD NOT ISSUE; (2) 

ORDER WAIVING NOTICE 

REQUIREMENT; MEMORANDUM IN 

SUPPORT; AFFIDAVIT OF UNITED 

STATES POSTAL INSPECTOR JASON 

CHUNG; EX PARTE

RECOMMENDATION FOR TEMPORARY 

RECEIVER] 

 

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ORDER GRANTING TRO 3 

PHILLIP A. TALBERT 

United States Attorney 

TARA AMIN 

Assistant United States Attorney 

501 I Street, Suite 10-100 

Sacramento, CA 95814 

Telephone: (916) 554-2700 

Facsimile: (916) 554-2900 

AMANDA N. LISKAMM 

Director 

RACHAEL L. DOUD 

Assistant Director 

ANDREW K. CRAWFORD 

FRANCISCO L. UNGER 

Trial Attorneys 

Consumer Protection Branch 

Civil Division 

U.S. Department of Justice 

450 5th Street, NW 

Washington, DC 20530 

Telephone: (202) 451-7301 

Email: andrew.k.crawford@usdoj.gov 

Attorneys for Plaintiff United States of America 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

United States of America, 

Plaintiff, 

v. 

CB SURETY, LLC, et al., 

Defendants. 

 Civil Case No. 2:23-cv-02812-TLN-DB 

ORDER GRANTING EX PARTE MOTION 

FOR (1) TEMPORARY RESTRAINING 

ORDER WITH ASSET FREEZE, 

APPOINTMENT OF A TEMPORARY 

RECEIVER, OTHER EQUITABLE 

RELIEF, AND ORDER TO SHOW CAUSE 

WHY A PRELIMINARY INJUNCTION 

SHOULD NOT ISSUE (2) ORDER 

WAIVING NOTICE REQUIREMENT 

LODGED UNDER SEAL PURSUANT TO 

ORDER OF THE COURT DATED 

____________________________________ 

 

Case 2:23-cv-02812-TLN-SCR Document 7 Filed 12/06/23 Page 3 of 19
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ORDER GRANTING TRO 4 

[FILED/LODGED CONCURRENTLY 

UNDER SEAL: EX PARTE MOTION FOR 

(1) TEMPORARY RESTRAINING ORDER 

WITH ASSET FREEZE, APPOINTMENT 

OF A TEMPORARY RECEIVER, OTHER 

EQUITABLE RELIEF, AND ORDER TO 

SHOW CAUSE WHY A PRELIMINARY 

INJUNCTION SHOULD NOT ISSUE; (2) 

ORDER WAIVING NOTICE 

REQUIREMENT; MEMORANDUM IN 

SUPPORT; AFFIDAVIT OF UNITED 

STATES POSTAL INSPECTOR JASON 

CHUNG; EX PARTE

RECOMMENDATION FOR TEMPORARY 

RECEIVER] 

The United States of America has filed its Complaint for Temporary Restraining Order, 

Preliminary and Permanent Injunctions, and Other Equitable Relief (the “Complaint”) pursuant 

to 18 U.S.C. § 1345, based on Defendants’ purported violations of 18 U.S.C. §§ 1343, 1344, and 

1349. The United States has filed an Ex Parte Motion for a Temporary Restraining Order and an 

Order to Show Cause Why a Preliminary Injunction Should Not Issue, and Memorandum in 

Support thereof (“TRO Application”) against Defendants Thomas Eide, Travis Smith, CB Surety 

LLC, Peak Bakery LLC, Cascades Pointe at Clemson, LLC, KP Testing, LLC, Stephen 

Christopher, Motion Media Marketing Inc., SJC Financial Services Inc., Aric Gastwirth, Reseller 

Consultants, Inc., Ambragold, Inc., Bryan Bass, Think Processing LLC, and Bass Business 

Consultants. 

FINDINGS OF FACT 

The Court, having considered the Complaint, the TRO Application, declarations, 

exhibits, and the memorandum of points and authorities filed in support thereof, and being 

otherwise advised, finds that: 

1. This Court has jurisdiction over the subject matter of this case, and there is good 

cause to believe that it has jurisdiction over all parties hereto and that venue in this district is 

proper. 

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ORDER GRANTING TRO 5 

2. There is good cause to believe that Defendants have engaged in and are likely to 

engage in acts or practices that violate 18 U.S.C. §§ 1343, 1344, and 1349, and that the United 

States is, therefore, likely to prevail on the merits of this action. 

3. There is good cause to believe that immediate and irreparable harm will result 

from Defendants’ ongoing violations of 18 U.S.C. §§ 1343, 1344, and 1349 unless they are 

immediately restrained and enjoined by order of this Court. 

4. There is good cause to believe that immediate and irreparable damage to the 

Court’s ability to grant effective relief will occur from the transfer, destruction, or other 

dissipation or concealment by Defendants of their assets or records, unless Defendants are 

immediately restrained and enjoined by order of this Court; and that, in accordance with Federal 

Rule of Civil Procedure 65(b) and Local Rule 231, the interests of justice require that this Order 

be granted without prior notice to Defendants. Thus, there is good cause for relieving the United 

States of the duty to provide Defendants with prior notice of its Motion for a Temporary 

Restraining Order. 

5. Good cause exists for freezing the assets of the Corporate Entities and Defendants 

Eide and Smith. 

6. Good cause exists for appointing a temporary receiver over the Corporate Entities, 

as well as any other entity that the Receiver determines is controlled or owned by the Corporate 

Entities, Defendant Eide, or Defendant Smith, and giving the United States and the Receiver 

immediate access to CB Surety’s business premises. 

7. Weighing the equities and considering the United States’ likelihood of ultimate 

success on the merits, a temporary restraining order is in the public interest. 

8. This Court has authority to issue this Order pursuant to 18 U.S.C. § 1345 and 

Federal Rule of Civil Procedure 65. 

9. No security is required of any agency of the United States for issuance of a 

temporary restraining order. Federal Rule of Civil Procedure 65(c). 

Case 2:23-cv-02812-TLN-SCR Document 7 Filed 12/06/23 Page 5 of 19
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ORDER GRANTING TRO 6 

DEFINITIONS 

For the purpose of this Order, the following definitions shall apply: 

10. “Asset” means any legal or equitable interest in, right to, or claim to, any 

property, wherever located and by whomever held. 

11. “CB Surety” means CB Surety LLC, Peak Bakery LLC, Cascades Pointe at 

Clemson, LLC, and KP Testing, LLC. 

12. “Corporate Entities” means CB Surety LLC, Peak Bakery LLC, Cascades Pointe 

at Clemson, LLC, KP Testing, LLC, Motion Media Marketing Inc., SJC Financial Services Inc., 

Reseller Consultants, Inc., Ambragold, Inc., Think Processing LLC, and Bass Business 

Consultants. 

13. “Defendant(s)” means all the individuals and entities named as Defendants in the 

Complaint, individually, collectively, or in any combination. 

14. “Document” is synonymous in meaning and equal in scope to the usage of 

“document” and “electronically stored information” in Federal Rule of Civil Procedure 34(a). 

15. “Receiver” means the temporary receiver appointed in Section III of this Order 

and any deputy receivers that shall be named by the temporary receiver. 

16. “Receivership Entities” means the Corporate Entities, as well as any other entity 

that the Receiver determines is controlled or owned by the Corporate Entities, Defendants Eide, 

or Defendant Smith. 

17. “Receivership Property” means any Assets, wherever located, that are: (1) owned, 

controlled, or held by or for the benefit of the Receivership Entities, in whole or in part; (2) in 

the actual or constructive possession of the Receivership Entities; or (3) owned, controlled, or 

held by, or in the actual or constructive possession of, or otherwise held for the benefit of, any 

corporation, partnership, trust, or other entity directly or indirectly owned or controlled by the 

Receivership Entities. 

Case 2:23-cv-02812-TLN-SCR Document 7 Filed 12/06/23 Page 6 of 19
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ORDER GRANTING TRO 7 

ORDER 

I. PROHIBITED ACTIVITIES 

IT IS ORDERED that Defendants, Defendants’ officers, agents, employees, contractors, 

and attorneys, and all other persons in active concert or participation with them, who receive 

actual notice of this Order by personal service or otherwise, are temporarily restrained and 

enjoined from: 

1. Committing or conspiring to commit wire fraud, as defined by 18 U.S.C. §§ 1343 

and 1349; 

2. Committing or conspiring to commit bank fraud, as defined by 18 U.S.C. §§ 1344 

and 1349; 

3. Charging or debiting any person or entity on behalf of any Corporate Entities or 

for the purported purchase of any Corporate Entities’ services; 

4. Debiting funds from consumers’ bank accounts or charging consumers’ payment 

cards without their prior authorization; 

5. Incorporating or creating any corporate entity for the purpose of debiting funds 

from consumers’ bank accounts without their prior authorization; 

6. Incorporating or creating any corporate entity for the purpose of facilitating 

payment processing or obtaining merchant accounts; 

7. Creating, operating, or exercising any control over any business entity, whether 

newly formed or previously inactive, without first providing the United States with a written 

statement disclosing: (1) the name of the business entity; (2) the address and telephone number 

of the business entity; (3) the names of the business entity’s officers, directors, principals, 

managers, and employees; and (4) a detailed description of the business entity’s intended 

activities; and 

8. Destroying, deleting, moving, removing or transferring any and all business, 

financial, accounting, and other records concerning Defendants’ operations and the operations of 

any other corporate entity owned or controlled, in whole or in part, by Defendants; and failing to 

Case 2:23-cv-02812-TLN-SCR Document 7 Filed 12/06/23 Page 7 of 19
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ORDER GRANTING TRO 8 

create and maintain Documents that, in reasonable detail, accurately, fairly, and completely 

reflect Defendants’ incomes, disbursements, transactions, and use of Defendants’ Assets. 

II. ASSET FREEZE 

IT IS FURTHER ORDERED that, except as otherwise specified herein, the Assets of the 

Corporate Entities, Receivership Entities, and Defendants Eide and Smith are frozen until further 

notice of this Court. Accordingly, all persons and entities with direct or indirect control over any 

of Corporate Entities’, Receivership Entities’, Defendant Eide’s, or Defendant Smith’s Assets, 

including any financial or brokerage institution, bank, payment processor, business entity, or 

person, who receives actual notice of this Order (by service or otherwise) shall: 

1. Hold, preserve, and retain within its control and prohibit the withdrawal, removal, 

alteration, assignment, transfer, pledge, encumbrance, disbursement, dissipation, relinquishment, 

conversion, sale, or other disposal of any Asset, as well as all Documents or other property 

related to such Assets, except by further order of this Court; and 

2. Deny any person access to any safe deposit box, commercial mail box, or storage 

facility that is titled in the name of any Corporate Entity, Receivership Entity, Defendant Eide, or 

Defendant Smith or otherwise subject to access by any Corporate Entity, Receivership Entity, 

Defendant Eide, or Defendant Smith. 

IT IS FURTHER ORDERED that the Corporate Entities, Receivership Entities, 

Defendant Eide, and Defendant Smith, their officers, agents, employees, and attorneys, and all 

other persons in active concert or participation with any of them, who receive actual notice of 

this Order (by service or otherwise), are hereby temporarily restrained and enjoined from 

transferring, liquidating, converting, encumbering, pledging, loaning, selling, concealing, 

dissipating, disbursing, assigning, relinquishing, spending, withdrawing, granting a lien or 

security interest or other interest in, or otherwise disposing of any of a Corporate Entity’s, a 

Receivership Entity’s, Defendant Eide’s, or Defendant Smith’s Assets. 

IT IS FURTHER ORDERED that each Corporate Entity, Defendant Eide, and Defendant 

Smith shall provide to the United States, within seven (7) days of receiving a copy of this Order, 

Case 2:23-cv-02812-TLN-SCR Document 7 Filed 12/06/23 Page 8 of 19
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ORDER GRANTING TRO 9 

a list of all financial or brokerage institutions, banks, or other entities at which they maintain 

savings, checking, investment, merchant, or other accounts. 

This Section does not prohibit any transfers to the Receiver required by this Order. 

III. RECEIVERSHIP 

A. APPOINTMENT OF A RECEIVER 

IT IS FURTHER ORDERED that Kenneth R. Jones is appointed as temporary receiver of 

the Receivership Entities with full powers of an equity receiver. The Receiver shall be solely the 

agent of this Court in acting as Receiver under this Order. 

B. RECEIVERSHIP POWERS AND DUTIES 

IT IS FURTHER ORDERED that the Receiver is directed and authorized to accomplish 

the following: 

1. Take exclusive custody, control, and possession of all Receivership Property, and 

Documents and Assets in the possession, custody, or control of any Receivership Entity, 

wherever situated, except those assets seized by the United States pursuant to a valid order of a 

court. The Receiver shall have full power to divert mail, and to sue for, collect, receive, take in 

possession, hold, and manage all Receivership Property; provided, however, the Receiver shall 

not attempt to collect any amount from a person if the Receiver believes the person was a victim 

of the wire or bank fraud scheme alleged in the Complaint in this matter; 

2. The Receiver shall also assume control over all of the Receivership Entities’ 

ongoing business operations, including those in which the Receivership Entities have a 

controlling interest. With regard to these business operations, the Receiver shall: 

a. Assume full and exclusive control of the operations of the Receivership 

Entities, removing, as the Receiver deems necessary or advisable, any 

director, officer, independent contractor, employee, or agent of the 

Receivership Entities from control of, management of, or participating in, 

the business affairs of each of the Receivership Entities; 

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ORDER GRANTING TRO 10 

b. Take all steps necessary or desirable to secure the business premises of the 

Receivership Entities. Such steps may include, but are not limited to, the 

following as the Receiver deems necessary or advisable: (i) completing a 

written inventory of all assets; (ii) obtaining pertinent information from all 

employees and other agents and all accrued and unpaid commissions and 

compensation of each such employee or agent; (iii) videotaping all 

portions of the above-referenced business locations; (iv) securing the 

above-referenced business locations by changing the locks and 

disconnecting any Internet service or other means of access to the 

computer or other records maintained at the locations; 

c. Manage, administer, and conduct the operations of the ongoing legitimate 

business operations of the Receivership Entities, until further Order of this 

Court, by performing all incidental acts that the Receiver deems to be 

advisable or necessary; and 

d. Choose, engage, and employ attorneys, accountants, appraisers, property 

managers, and other independent contractors and technical specialists or 

other professionals (“Professionals”), with regard to the operations of the 

Receivership Entities and/or support and advice to the Receiver as the 

Receiver deems advisable or necessary in the performance of duties and 

responsibilities under the authority granted by this Order; 

3. Defend, compromise, or settle legal actions wherein the Receiver or any of the 

Receivership Entities is a party commenced prior to or subsequent to this Order with the 

authorization of this Court. The Receiver may waive attorney-client privilege held by any of the 

Receivership Entities; 

4. Issue subpoenas to obtain Documents and records pertaining to the Receivership, 

and conduct discovery in this action on behalf of the receivership estate; 

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ORDER GRANTING TRO 11 

5. Make payments and disbursements from the receivership estate that are necessary 

or advisable for carrying out the directions of, or exercising the authority granted by, this Order, 

and to incur, or authorize the making of, such agreements as may be necessary and advisable in 

discharging its duties as Receiver. The Receiver shall apply to the Court for prior approval of 

any payment of any debt or obligation incurred by the Receivership Entities prior to the date of 

entry of this Order, except payments that the Receiver deems necessary or advisable to secure 

Assets of the Receivership Entities, such as rental payments. The Receiver shall not be required 

to perform under any contract or lease entered into by the Receivership Entities prior to the date 

on which he assumes possession of the Receivership Assets; 

6. Maintain accurate records of all receipts and expenditures incurred as Receiver; 

7. Coordinate with the United States and Court personnel as needed to ensure that 

any Assets subject to the terms of this Order are available for criminal restitution, forfeiture, or 

other legal remedies in proceedings commenced by or on behalf of the United States; 

8. Cooperate with reasonable requests for information or assistance from any state or 

federal civil or criminal law enforcement agency; and 

9. File a status report every 60 days with the Court. 

The Receiver shall have the power and authority to perform any other act necessary or 

desirable to accomplish any of the foregoing. 

C. COOPERATION WITH THE RECEIVER 

IT IS FURTHER ORDERED that Defendants; Receivership Entities; Defendants’ or 

Receivership Entities’ officers, agents, employees, attorneys, and all other persons in active 

concert or participation with any of them; and any other person with possession, custody, or 

control of Receivership Property or records relating to Receivership Property, or other records 

relating to the Receivership Entities; who receive actual notice of this Order, shall fully 

cooperate with and assist the Receiver. This cooperation and assistance shall include, but is not 

limited to, providing information to the Receiver that the Receiver deems necessary to exercise 

the authority and discharge the responsibilities of the Receiver under this Order; providing any 

Case 2:23-cv-02812-TLN-SCR Document 7 Filed 12/06/23 Page 11 of 19
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ORDER GRANTING TRO 12 

keys, codes, user names, passwords, and all other means required to access any computers, 

electronic devices, mobile devices, machines (onsite or remotely), and any cloud account 

(including specific method to access account) or electronic file in any medium; advising all 

persons who owe money to any Receivership Entity that all debts should be paid directly to the 

Receiver; and transferring funds at the Receiver’s direction and producing records related to the 

Receivership Property and sales of the Receivership Entities. 

D. TRANSFER OF RECEIVERSHIP PROPERTY TO RECEIVER 

IT IS FURTHER ORDERED that Defendants and any other person with possession, 

custody or control of Receivership Property shall, upon notice of this Order by personal service 

or otherwise, fully cooperate with and assist the Receiver in taking and maintaining possession, 

custody, or control of the Receivership Property. This shall include, but not be limited to, 

immediately providing, transferring, or delivering to the Receiver possession, custody, and 

control of: 

1. All Assets held by or for the benefit of the Receivership Entities; 

2. All Documents or Assets associated with credits, debits, or charges made on 

behalf of any Receivership Entity, wherever situated, including reserve funds held by payment 

processors, credit card processors, merchant banks, acquiring banks, independent sales 

organizations, third party processors, payment gateways, insurance companies, or other entities; 

3. All Documents of or pertaining to the Receivership Entities; 

4. All computers, electronic devices, mobile devices, and machines used to conduct 

the business of the Receivership Entities; 

5. All keys, codes, user names, passwords, and all other means of authentication 

necessary to gain or to secure access to any Assets or Documents of or pertaining to the 

Receivership Entities, including access to their business premises, means of communication, 

mobile phones, accounts, computer systems (onsite and remote), electronic data hosts, or other 

property. 

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ORDER GRANTING TRO 13 

Provided that nothing in this Section shall be construed to require the United States or a 

law enforcement agency to transfer Assets, Receivership Property, or Documents to the Receiver 

that it has seized pursuant to a valid order of a court. 

In the event that any person or entity fails to deliver or transfer any Asset, Document, or 

otherwise fails to comply with any provision of this Section, the Receiver may file an Affidavit 

of Non-Compliance regarding the failure and a motion seeking compliance or a contempt 

citation. 

E. PROVISION OF INFORMATION TO RECEIVER 

IT IS FURTHER ORDERED that the Defendants shall immediately provide to the 

Receiver: 

1. A list of all Assets and accounts of the Receivership Entities, including but not 

limited to those that are held in any name other than the name of a Receivership Entity, or by any 

person or entity other than a Receivership Entity; 

2. A list of all agents, employees, officers, attorneys, contractors, servants and those 

persons in active concert and participation with the Receivership Entities, or who have been 

associated or done business with the Receivership Entities; and 

3. A description of any documents covered by attorney-client privilege or attorney 

work product, including files where such documents are likely to be located, authors or recipients 

of such documents, and search terms likely to identify such electronic documents. 

F. DUTIES OF ASSET HOLDERS AND OTHER THIRD PARTIES 

IT IS FURTHER ORDERED that any financial or brokerage institution, bank, payment 

processor, business entity, or person who receives actual notice of this Order (by service or 

otherwise), who has held the Receivership Entities’ Assets, through an account or otherwise, 

shall: 

1. Provide the Receiver, within ten business days of notice of this Order, a statement 

setting forth: (1) the identification of each such account or Asset; (2) the balance of each such 

account, or a description of the nature and value of each such Asset; and (3) the identification of 

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ORDER GRANTING TRO 14 

any safe deposit box, commercial mail box, or storage facility that is either titled in the name, 

individually or jointly, of any Receivership Entity, or is otherwise subject to access by any 

Receivership Entity; 

2. Upon the Receiver’s request, promptly provide the Receiver with copies of all 

records or other Documents pertaining to any account covered by this Section or Asset, including 

originals or copies of account applications, account statements, signature cards, checks, drafts, 

deposit tickets, transfers to and from the accounts, including wire transfers and wire transfer 

instructions, all other debit and credit instruments or slips, currency transaction reports, 1099 

forms, and all logs and records pertaining to safe deposit boxes, commercial mail boxes, and 

storage facilities; and 

3. Cooperate with all reasonable requests of the Receiver relating to implementation 

of this Order, including transferring funds at the Receiver’s direction and producing records 

related to all accounts owned by each of the Defendants. 

G. COMPENSATION OF RECEIVER 

IT IS FURTHER ORDERED that the Receiver and all personnel hired by the Receiver as 

herein authorized, including counsel to the Receiver and accountants, are entitled to reasonable 

compensation for the performance of duties pursuant to this Order and for the cost of actual outof-pocket expenses incurred by them, from the assets now held by or in the possession or control 

of, or which may be received by, the Receivership Entities. Receiver shall be paid based on an 

hourly rate, which may be increased annually on notice to the Court at the time that Alvarez and 

Marsal (“A&M” or the “Receive Firm”) generally increases its rates. Hourly rates for A&M 

personnel engaged or utilized by the Receiver shall be based on their standard hourly rates. In 

addition, Receiver shall be reimbursed for all out-of-pocket expenses reasonably incurred in the 

discharge of its rights and obligations hereunder. 

Such fees and expenses shall be payable monthly without the requirement of a further 

order of this Court, provided, however, that the Receiver shall file with the Court and serve on 

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ORDER GRANTING TRO 15 

the parties periodic accountings describing the Receiver’s and A&M’s compensation, with the 

first disclosure filed no more than sixty (60) days after the date of this Order. 

All fees and expenses of the Receiver (including without limitation the indemnification 

provisions set forth above) shall constitute a first lien and charge against the Receivership 

Assets, with priority ahead of all other liens and security interests, including without limitation 

the liens and security interests of all other persons and entities. 

IV. ADDITIONAL TERMS AND PROTECTIONS AFFORDED TO THE RECEIVER 

The Professionals retained by the Receiver may include, without limitation, the 

Receiver’s employer and/or its affiliates (the “Receiver Firm”). The Receiver is hereby expressly 

authorized and directed to utilize and retain the services the Receiver Firm, its affiliates and 

personnel as Professionals (rather than utilizing other similarly situated or available personnel or 

professional services firms) notwithstanding that (a) the Receiver may benefit (directly or 

indirectly) from the compensation paid to the Receiver Firm and (b) other persons or entities 

may be available to provide the same or similar services at similar or more competitive prices. In 

no event shall the Receiver, Receiver Firm, or their affiliates be subject to a claim of a conflict of 

interest or breach of fiduciary duty or any other claim arising as a result of the appointment of 

any such person in accordance with this provision. 

Receiver shall be authorized on the Receivership Entities’ behalf to cause the Receiver 

and its agents to be named as an additional insured on any insurance policies covering the 

Receivership Assets. Receiver may, in its discretion, obtain insurance covering the Receivership 

Assets, and such insurance expense shall be deemed a normal, ordinary, and necessary operating 

expense of the Receivership Assets. Receiver may, in its discretion, obtain receivership, 

fiduciary and/or errors & omissions liability insurance covering the acts and omissions and 

related claims against the Receiver arising from the Receivership and the cost shall be deemed a 

normal, ordinary, and necessary operating expense of the Receivership Assets. 

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ORDER GRANTING TRO 16 

The Receiver may, in its sole and absolute discretion, resign its position as Receiver by 

providing not less than thirty (30) days written notice to this Court. The Receiver shall not be 

required to obtain the approval of this Court prior to resigning as receiver hereunder. 

The Receiver is authorized to serve with no bond. 

The liability of the Receiver and the Receiver’s advisors, agents, representatives, 

employees, affiliates, successors and assigns (including but not limited to the Receiver Firm) 

(“Exculpation Parties”), for any and all claims, liabilities, damages, fees, costs, expense and 

charges incurred or arising from their respective acts or omissions in connection with the 

Receivership Entities, this Order, the receivership established pursuant to this Order, and/or the 

Receivership Assets (“Related Matters”), shall exist only to the extent that this Court determines 

by a final and non-appealable judgment that such acts or omissions resulted solely from such 

person’s bad faith or gross negligence. Any such liability shall be paid as an expense of the 

receivership when and as incurred. The Receiver shall be fully protected by the Receivership 

Estate from, any action taken or suffered or omitted by the Receiver in reliance upon the advice 

of Professionals, attorneys, advisors or others, except for in the case of willful misconduct, gross 

negligence or fraud of the Receiver as determined by a final order of this Court. Notwithstanding 

the foregoing, the Receiver shall be under no obligation to consult with others, and the 

Receiver’s good faith determination not to do so shall not result in the imposition of liability on 

the Receiver, unless such determination arises from the Receiver’s willful misconduct, gross 

negligence, or fraud. Persons or entities dealing with the Receiver shall look only to the Receiver 

Assets to satisfy any liability incurred by the Receiver, and the Receiver (and any affiliated 

entities or persons, including, without limitation, the Receiver Firm) shall have no personal or 

individual obligation to satisfy any such liability. The Receiver shall be entitled to obtain such 

insurance coverage as it may deem reasonable to protect itself and the Exculpation Parties 

against claims and liability which are covered, or not covered, by the foregoing exculpation, and 

any premiums or fees for such insurance shall be paid from the Receivership Assets. This 

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ORDER GRANTING TRO 17 

paragraph shall survive the termination or resignation of Receiver, and the termination or 

suspension of the receivership created hereunder. 

In the event that, at any time whether before or after termination or resignation of the 

Receiver of this receivership, as a result of or in connection with the Related Matters, any 

Exculpation Party is required to produce any of its personnel (including former employees) for 

examination, deposition or other written, recorded or oral presentation, or the Receiver or any 

other Exculpation Party is required to produce or otherwise review, compile, submit, duplicate, 

search for, organize or report on any material within such Exculpation Party’s possession or 

control pursuant to a subpoena or other legal (including administrative) process, the Exculpation 

Party will be reimbursed from the Receivership Assets for its out of pocket expenses, including 

the reasonable fees and expenses of its counsel, and will be compensated from the Receivership 

Assets for the time expended by its personnel based on such personnel’s then current hourly rate. 

No provision of this Order shall require the Receiver to expend or risk its own funds or 

otherwise incur any financial liability in the performance of any of its duties as Receiver 

hereunder, or in the exercise of any of its rights or powers, if the Receiver shall have reasonable 

grounds for believing that repayment of funds or adequate indemnity or security satisfactory to 

him against such risk or liability is not reasonably assured to it. 

This Court shall retain jurisdiction and supervision of all matters concerning the 

Receiver, the receivership created hereby, and the Receivership Assets. No person or entity may 

file suit against the Receiver, in its capacity as Receiver, unless otherwise authorized in advance 

by this Court. Any and all actions against the Receiver which affect the Receiver or the 

Receivership Assets shall be brought in this Court, and any attempt to collect from any 

Receivership Assets must be brought in this Court. Any judgment entered against the Receiver 

shall not be valid unless approved by this Court. The Receiver may apply at any time to the 

Court, with notice to all other parties appearing in this case, for further instruction and for further 

power necessary to enable the Receiver to properly fulfill its duties. 

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ORDER GRANTING TRO 18 

V. DISTRIBUTION OF ORDER BY DEFENDANTS 

IT IS FURTHER ORDERED that Defendants shall immediately provide a copy of this 

Order to each affiliate, successor, assign, member, officer, director, employee, agent, 

independent contractor, client, attorney, spouse, subsidiary, division, and representative of any 

Defendant, and shall, within ten (10) days from the date the Defendant receives notice of this 

Order, provide the United States with a sworn statement that this provision of the Order has been 

satisfied, which statement shall include the names, physical addresses, phone number, and email 

addresses of each such person or entity who received a copy of the Order. Furthermore, 

Defendants shall not take any action that would encourage officers, agents, members, directors, 

employees, salespersons, independent contractors, attorneys, subsidiaries, affiliates, successors, 

assigns or other persons or entities in active concert or participation with them, to disregard this 

Order or believe that they are not bound by its provisions. 

VI. SERVICE OF THIS ORDER 

IT IS FURTHER ORDERED that the United States is directed to provide notice to 

Defendants and serve the Defendants with summonses, copies of the complaint, and copies of 

this Order as soon as practicably possible. 

With regard to Defendant Bass, the United States may provide notice via email pursuant 

to the procedure described in the Brief, while simultaneously pursuing formal service pursuant to 

Rule 4(f). If other Defendants take efforts to evade service, the United States may provide notice 

to those Defendants via email as well. 

VII. PRELIMINARY INJUNCTION HEARING 

IT IS FURTHER ORDERED that, pursuant to Federal Rule of Civil Procedure 65(b) and 

Local Rule 231(c)(7), Defendants shall appear before this Court on December 14, 2023, at 1:30 

p.m. for a hearing to show cause, if there is any, why the preliminary injunction requested by the 

United States should not be granted. 

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ORDER GRANTING TRO 19 

VIII. BRIEFS AND AFFIDAVITS CONCERNING PRELIMINARY INJUNCTION 

IT IS FURTHER ORDERED that the Defendants shall file with the Court and serve on 

the United States any responsive pleadings, affidavits, motions, expert reports or declarations, or 

legal memoranda no later than December 11, 2023, at 12:00 p.m. The United States may file a 

reply or supplemental pleadings, materials, affidavits, or memoranda with the Court and serve 

the same on Defendants or Defendants’ counsel no later than on December 13, 2023, at 12:00 

p.m. 

IX. DURATION OF THE ORDER 

IT IS FURTHER ORDERED that this Order shall expire 14 days from the date of entry 

noted below, unless within such time, the Order is extended for an additional period pursuant to 

Federal Rule of Civil Procedure 65(b)(2). 

X. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for all 

purposes. 

IT IS SO ORDERED. 

DATED this 6th day of December 2023 at 1:25 p.m. PST. 

Troy L. Nunley

United States District Judge

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