JAtl-27-200'3 22: 45 JUDGE tdE~'(LER P.02/11

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF NEW YORK

United States Commodity Futures Tradig

Commssion, ECFCASE

Defendants.

EXPARTESTATUTORY

RESTRAIl\"1G ORDER

Freezing Assets, Prohibiting the

Destruction or Alteration of

Books, Records or other

. Documeoh, for Expedited Asset

Discovery, and l1n Order To Show

Cause Why a Preliminary

Injunction Sho'ild Not be Entered.

Plaintiff,

vs.

Nicholas Cosmo, Agape World, Inc') and Agape

Merchat Advance LLC,

Plaitiff, U.S. Corrodity Futues Tradng Commssion (the "Commission") has filed a

complait for a prelimnar and peranent injunction and other relief, and moved ex parTe

purSUMt to Section 4b(a)(2)(A) and (C) of the Commodity Exchange Act (the '.Act"), 7 U.S,c.

§§ 1 et seq. (2006), as amended by the Food, Conservation, and Energy Act of2008, Pub. 1. No.

110-246, Title XIII (the eFTC Reauthorization Act ("eRA"), §§ 13101-13204, 122 Stat. 1651

(effective June 18, 2008, to be codified at 7 U.S.C. §6b(a)(2)(A) and (C) for a srarutory

restra.ng order freezig assets, prohibiting the destrion of books, records, or other

åocuments, granung leave to the Commission to engage in expedired asset discover for the

purose of discoverng tl1e natue, location, starn, and extent of assets, and ordering Defendats

Nicholas Cosmoi Agape \Vorld, Inc., and Agape Merchat Advance LLC (collectively, the

"Defendants") to show cause why a preliminar injunction should not be issued. The Cour has
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(8) This is a proper case for granting a statutory restraining order to presere the

sta quo, protect customer,; from loss and damage, an enable the Commission

to fufill its statutory duties, therefore the Cour orders as follows:

DEFINITIONS

FOr the puroses of ths Order, the following definitions apply:

1. "Asset" means any legal or equitable interest in, right to, or clai to, any real or

personal propert, includìng but not limite to chattels, goods, instrents, equipment, f~tues,

general intagibles, effecs, leaseholds, mail or other de:livenes, inventory, checks, notes,

accounts, credits, receivables, contracts, insurance policies, and all cas wherever located,

wheter in the United States or abroad.

2. The ten "document" is synonymous in meang and equal in scope to the usage

of the ter in Federal Rule of Civil Procedure 34(a), aiî.d includes, but is not limited to, Vvtis,

drawings, graphs, chars, photographs, audio and video recordings, compùter records, and other

data compilations from which infonnation can be obtaned and translated, if necessar, though

detection devices Ìnto reasonable usable fonn, .A draf or non-identical copy is a separate

document withn the meang of the term.

3. The term "Defendants" refers to Nicholas Cosmo, Agape \'Vorld, Inc., Agape

Merchant Advance LLC, and any person insofar as he or she is acting in the capacity of an

offcer, agent, servant, employee, or attorney of any of the Defendants, and any peron who

receives actul notice of ths Order by personal service or otherwse insofar as he or she is acting

in concert or panicipation váth any of the Defendants.

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JAt.j-27-2009 2,2: 45 JUDGE I!JE\LER P.05/11

RELIEF GRANTED

L . Asset Freeze

IT is HEREBY ORDERED that the Defendants, except as other,-vise ordered by ths

Cowt, are restrained and enjoined from directly or indirectly:

A. Tranferrng, selling, alíen."iting, liquidating, encumbering, pledging, leasing,

loanng, assignng, conceing, dissipating, converting, withdiavling, or otherv.l'ise

disposing of any assets, wherever located, including assets held outside the united

States, except as provided in this Order, or as otherwse ordered by the Coun;

B. Opening or causing to be opened any safe deposit boxes titled in the nae or

subject to access by any of the Defendats.

II ldetitifu:ation ana Preservation of Assets

IT is FURTHER ORDERED, pending fuer Order of this Cour, that any financial or

brokerage institution or business entity that holds, controls, or maintans custody of any account

or asset tided in the rue of, held for the benefit of, or otherwse under the control of any of the

Defendats, or has held, controlled, or maintaned cuswdy of any such account or asset of any of

the Defendants at any time since at least Januar 2004 shall:

A. Prohibit any of the Defendants and all other persons from withdrawig, removing,

assignig, tnferrng, pledging, encumbering, disbursing, dissipating,

con.verting, selling or otherwse disposing of any such asset, except as directed by

fuer order of the Cour;

B. Deny any of the Defendants and all other persons acss to any safe deposit box

thatis titled in the name of any of the Defendats or otherise subject to access

by any of the Defendants;

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JAN-27-2009 22: 45 JUDGE iAIE7~LER P.06/11

c. Provide the eorrission, with five (5) business days of receiving a copy of ths

Order, a statement settng fort:

(1) the identification number of each such accunt or asset titled In the nae

of any of the Defendants or held on behalf of, or for the benefit of any of

the Defendants or W1der the control of any of the Defendants;

(2) the balance of each such account, or a descrption of the narue and value

of such asset as of the close of business on the day on which ths Order is

served, and, if the account or other asset has been closed or removed, the

date closed or removed, the tota funds removed in order to close the

account, ùi name of the peron or entity to whom such accOtmt or other

asset was remitted; and

(3) ile identification of any safe deposit box that is either titled in the name of

any of the Defendats, or is otherwse subject to access by any of the

Defendants;

D. Upon request by the Commission, promptly provide the Conuission 'Wth copies

of all records or other documentation pertning to such account or asset,

including, but not limited to, o.nginals or copies of account applications, account

statements, signatue cards, checks, drafs, deposit tickets, transfers to and from

the accoLUts, all other debit and credit instrents or slips, currency transaction

reports, 1099 forms, trading records, and safe deposit box logs; and

E. eooperte with all reasonable request of the Commission relating to

implementation of this Order, including producing records rel'ltcd to Defendant's

accowits.

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IlL Accounting of Assets

IT is FURTHER ORDERED that withn five (5) business days follov.'Íng the service of

ÙÙs Order, the Defendants shal:

A. Provide the Commission with a ful accounting of all fuds, documents, and

assets both v.'itln and outSide the United States which are (i) titled in the name of

any of the Defendants; or (2) held by any person or entity, for the benefit of any

of the Defendants; or (3) under any of the DefendantS' direct or indirect comrol;

and

B. Provide the eommission access to all records of accUi'1t.s or assets of any of the

Defendants held by fincìa1 institutions located both 'Iuithn and outside the

tertorial United States by signng the Consent to Release of Financial Records

attched to tls Order.

iv. Maintenance of ai,d Acces to Business Records

IT is HEREBY ORDERED tht the Defendants, and all persons or entities who receive

notice of ths Order by perona service or otherwise, arc restrained and enjoined from directly or

ìndìrectly destroying, mutilating, erasing, altering, concealing or disposing of, in any manner,

àirectly or indirectly, any documents tht relate to the business practices or business finances of

any of the Defendats.

~ Commissùm'8 Access to aid Inspection of Documen.ts

IT is FURTHER ORDERED that representatives of the Commission be immediately

allowed to inspect the books, records. and other documents of any of the Defendants and his

agents including, but not limited to, paper documents, electroiùcally stored data, tape recordings,

and computer discs, wherever they may be situted and whether they are in the possession of any

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of th Defendats or others, and to copy said documents, data and records, cithex on or off the

premises where they may be situate. Upon request of the Conuission, the Defendants are

ordered to deliver to the Commission documents of any of the Defendant, includig but not

limited to all books and records of accounts, all finacial and acco1L'lting records, balance sheets,

income statements, ban records (includig monthy statements, cancelled checks, records of

\Vre transfers, and check registers), lists of customers, title documents, other papers, all keys,

computer passwords, entry codes, and combinations to locks necessar to gain or to secure

access to any of the assets or documents of any of the Defendats, including but not limited to,

access to the Defendant's business premises, meas of communcation, accounts, computer

systems, or other propert and information identifying th accounts, employees, properies, or

other assets or obligations of the Defendat.

Vl. S2rvice oj Order

IT is FURTHER ORDERED that copies of ths Order may be served by any mean,

including facsimle or e-mail transiission, upon any financial institution or other entity or

person that may have possession, custdy, or control of any documents or assets of any of the

Defendants or tht may be subject to any provision of this Order.

VIL Expedited Asset Discol'ery

IT is FURTHER ORDERED that the eomrssion is granted leave, at any tie after

service of ths Order, to tae the deposition of and demand the production of documents from

any person or entity for the purose of discovering the nanie, location, status, and extent of

asset of any of the Defendats~ and the location of documents reflecting the business

transactions of any of the Defendants; fort-eight (48) hours notice shall be deemed suffcient for

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any such deposition and five (5) days notice shal be dee suffcient for the production of any

such documnts.

VIII. Depositions

IT is FURTHER ORDERED that the limitations and conditions set fort in Federal

Rule of Civil ProcMure 30(a)(2)(B) regarding subsequent depositions of an individua shal not

apply to depositions taen pursuant to ths Order. No deositions taen pursuat to Paragraph

VII shall count towad the ten-deposition limit set íòrt in Federal Rule of Civil Procedure

30(a)(2)(A).

ix Service on the CommisúJJ

IT is FURTHER ORDERED that the Defendants shal serve all pleadings,

correspondence, notices requid by this Order, and other materals on the Commission by

delivering a copy to Elizabeth Brennan, Senior Trial Attorney, Division of Enforcement, U.S.

Corrodity Futues Trading Commission, Easter Regional Offce, 140 Broadway, 19th Floor,

New York, New York 10005.

X Order to Show Cause

IT is FURTHER ORDERED that Defendants shall appear before Ùlis Cour on the

-#ttay of i&(lPr, 2009, at ,(~ Qî o'clock, before the Honorable

l,,IJIt"'. 0i~at the United States Courouse for the Eastern District of New Yo'r~

~i¡o (il,!lf(.~'¥1t at.~ (S~-I p !v'-

Ca piaz~'t, Biooklj¿, NY, 'to show cause ~hy Ùlis Cour should not enter a preliminar

injunction:

A. Enjoinig the Defendats from fuer violations of the Act; specifically,

prohibiting the Defendant from violating Sections 4b(a)(2)(A) and (C) of the Act, 7 U.S.c. § § 1

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et seq. (2006), as amended by the eRA, §§ 13101-13204, 122 Stat. 1651 (effective June 18,

2008, to be codified at 7 U.S.C. §6b(a)(2)(A) and (C).

B. Continuing the freeze on the assets of the Defendants;

C. Ordrin the Defendants, finaial or brokerage institutions, business entities, 3ld

others to provide all documents specified in ths Order to the Commsion; and

D. Orderig any additional relief ths Cour deems appropriate.

Should the Defendants wish to file a memorandum of law or other papers concernng the

issuace. of a prelimina inj uncton agait the Defendats, such materials shall be filed, sered

and received by all pares at least two (2) days before the hearng date ordered above.

Xl. Force a/fd Effect ofOrdeT

IT is FURTHER ORDERED that ths Order shall remain in ful force and effect until

furter order of th Cour and that th Cour retains jurisdiction ofthis matter for all purposes.

SO ORDERED,

'?

On ths :27 day of Januar 2009.

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CONSENT TO RELEASE OF FINANCIAL RECORDS

I, , do hereby direct any ban, financial institution or trst

company at which I have an account of any kind upon which I am authorized to draw, and its

offcers, employees an agents, to disclose all inormation and deliver copies of all documents of

ever natue in your possession or control which relate to said accounts to any attorney of the

U.S. Conuodity Futus Tradg Commission, and to give evidence relevant thereto, in the

maner of u.s. Commodity Futues TrMf Commissìoii v. Nicholas Cosmo. er al., Docket 1"0.

now pending before the United States Distrct Cour for the Easti:m Distrct of NC"w

York, and th shl be irrevocable authority for so doing. This direction is intended to apply to

the laws of countries othr thn the United States which restrct or prohibit the disclosure of bank

information \Vthout the consent of the holder of the account, 3nd shall be constned as consent

will respect thereto, and the same apply to any of the ban accounts for which I may be a

relevant principal,

Dared: __,2009

_.

Signatu

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TOTAL P.11