UNITED STATES DISTRICT COURT 

FOR THE EASTERN DISTRICT OF NORTH CAROLINA 

WESTERN DIVISION 

U.S. COMMODITY FUTURES TRADING 

COMMISSION, 

Plaintiff, 

YELLOWSTONE PARTNERS, INC. and 

DENNIS TODD HAGEMANN, 

Defendants. 

CIVIL ACTION NO.: 5 ' 10 ~ CV'85 ~ F L 

STATUTORY RESTRAINING ORDER AND ORDER TO SHOW 

CAUSE REGARDING PRELIMINARY INJUNCTION 

This matter came before the Court on plaintiff Commodity Futures Trading 

Commission's ("Commission") Motion for an Ex Parte Statutory Restraining Order, 

Appointment of Receiver, An Accounting, Expedited Discovery, and an Order to Show Cause 

Regarding Preliminary Injunction and Other Equitable Relief (the "Motion"). The Court, having 

considered the Motion, the memorandum in support thereof, and all other evidence presented by 

plaintiff, and having heard the arguments of counsel, finds that: 

1. This Court has jurisdiction over the parties and over the subject matter of this 

action pursuant to Section 6c ofthe Commodity Exchange Act (Act), 7 U.S.C. § 13a-l (2006), 

and Section 2(c)(2) ofthe Act, as amended by the Food, Conservation, and Energy Act of 2008, 

1 
Pub. L. No. 110-246, Title XIII (the CFTC Reauthorization Act (CRA), §§ 13101-13204, 122 

Stat. 1651 (enacted June 18,2008), to be codified at 7 U.S.C. § 2(c)(2). 

2. Venue lies properly within this District pursuant to Section 6c(e) ofthe Act, 

7 U.S.C. § 13a-l(e). 

3. There is good cause to believe that defendants Yellowstone Partners, Inc. 

("Yellowstone") and Dennis Todd Hagemann have engaged, are engaging, and are about to 

engage in acts and practices constituting violations ofthe Act, as amended, to be codified at 7 

U.S.C. §§ \,etseq. 

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

Court's ability to grant effective final relief for customers in the form of monetary redress will 

occur from the sale, transfer, assignment, or other disposition by Defendants of assets or records 

unless Defendants are immediately restrained and enjoined by Order ofthe Court. 

5. Good cause exists for the freezing of assets owned, controlled, managed, or held 

by, on behalf of, or for the benefit of Defendants and for entry of an order prohibiting 

Defendants, their agents, servants, employees, assigns, attorneys, and persons in active concert or 

participation with Defendants, including any successor thereof, from destroying records and/or 

denying Commission representatives access to inspect and copy records to ensure that 

Commission representatives have immediate and complete access to those books records. 

6. Good cause exists to require an accounting to determine the location and 

disposition of Yellowstone customer funds. 

7. Good cause exists to order repatriation of assets controlled by Defendants to 

assure payment of restitution and disgorgement as authorized and for the benefit of customers. 
8. Good cause exists for the plaintiff to conduct expedited discovery in order to 

determine the full extent of Defendants' alleged wrongdoing, locate Defendants and other 

customers, identify customers' funds and other of Defendants' Assets, and clarify the source of 

various funds. 

9. Weighing the equities and considering the Commission's likelihood of success in 

its claims for relief, the issuance of a statutory restraining order is in the public interest. 

DEFINITIONS 

For purposes of this Order, the following definitions apply: 

10. The term "document" is synonymous in meaning and equal in scope to the usage 

ofthe term in Federal Rule of Civil Procedure (FRCP) 34(a), and includes, but is not limited to, 

writings, drawings, graphs, charts, photographs, audio and video recordings, computer records, 

and other data compilations from which information can be obtained and translated, if necessary, 

through detection devices into reasonably usable form. A draft or non-identical copy is a 

separate document within the meaning ofthe term. 

11. "Assets" mean any legal or equitable interest in, right to, or claim to, any real or 

personal property, whether individually or jointly, direct or indirect control, and wherever 

located, including, but not limited to: chattels, goods, instruments, equipment, fixtures, general 

intangibles, effects, leaseholds, mail or other deliveries, inventory, checks, notes, accounts 

(including, but not limited to, bank accounts and accounts at financial institutions), credits, 

receivables, lines of credit, contracts including spot and futures or options contracts, insurance 

policies, and all cash, wherever located. 
12. "Defendants" shall mean and refer to Yellowstone and Hagemann and also to any 

d/b/a, successor, affiliate, subsidiary or other entity owned, controlled, managed or held by, on 

behalf of, or for the benefit of Yellowstone and/or Hagemann. 

RELIEF GRANTED 

I. 

Order Against Transfer, Dissipation, and Disposal of Assets 

IT IS HEREBY ORDERED that: 

13. Defendants, and their agents, servants, employees, assigns, attorneys, and persons 

in active concert or participation with them, including any successor thereof, and persons in 

active concert or participation with them, who receive actual notice of this Order by personal 

service or otherwise, are immediately restrained and enjoined from directly or indirectly 

transferring, selling, alienating, liquidating, encumbering, pledging, leasing, loaning, assigning, 

concealing, dissipating, converting, withdrawing, or otherwise disposing of any of Defendants' 

Assets, wherever located, including Defendants' Assets held outside the United States, except as 

provided in Section III of this Order, or as otherwise ordered by the Court. The Assets affected 

by this paragraph shall include both existing Assets and Assets acquired after the effective date 

of this Order. 

14. Defendants are restrained and enjoined from directly or indirectly opening or 

causing to be opened any safe deposit boxes titled in the name of, or subject to, access by 

Defendants. 

II. 
Accounting and Transfer of Funds and Documents 

IT IS FURTHER ORDERED that within five (5) business days following the service of 

this Order, Defendants shall: 

15. Provide the Commission with a full accounting of all Defendants' Assets, inside 

and outside ofthe United States, from January 1, 2006 to the date of this Order; 

16. Transfer to the territory of the United States all of Defendants' Assets (other than 

real property) located outside the United States; and 

17. Provide the Commission access to all records of Defendants held by financial 

institutions located within or outside the territorial United States by signing the Consent to 

Release of Financial Records attached to this Order. 

III. 

Directives to Financial Institutions and Others 

IT IS FURTHER ORDERED, pending further Order of this Court, that any financial or 

brokerage institution, business entity, or person that holds or has held, controls or has controlled, 

or maintains or has maintained custody of any of Defendants' Assets at any time since 

September 1,2008, shall: 

18. Prohibit Defendants and all other persons from withdrawing, removing, assigning, 

transferring, pledging, encumbering, disbursing, dissipating, converting, selling, or otherwise 

disposing of Defendants' Assets, except as directed by further Order ofthe Court; 

19. Deny Defendants and all other persons access to any safe deposit box that is: (a) 

owned, controlled, managed, or held by, on behalf of, or for the benefit of Defendants, either 

individually or jointly; or (b) otherwise subject to access by Defendants; 
20. Provide counsel for the Commission, within five (5) business days of receiving a 

copy of this Order, a statement setting forth: (a) the identification number of each and every 

account or other asset owned, controlled, managed, or held by, on behalf of, or for the benefit of 

Defendants, either individually or jointly; (b) the balance of each such account, or a description 

ofthe nature and value of such asset as ofthe close of business on the day on which this Order is 

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

the total funds removed in order to close the account, and the name ofthe person or entity to 

whom such account or other asset was remitted; and (c) the identification of any safe deposit box 

that is owned controlled, managed, or held by, on behalf of, or for the benefit of Defendants, 

either individually or jointly, or is otherwise subject to access by Defendants; and 

21. Upon request by the Commission, promptly provide the Commission with copies 

of all records or other documentation pertaining to such account or asset, including, but not 

limited to, originals or copies of account applications, account statements, signature cards, 

checks, drafts, deposit tickets, transfers to and from the accounts, all other debit and credit 

instruments or slips, currency transaction reports, Internal Revenue Service Form 1099s, and safe 

deposit box logs. 

IV. 

Maintenance of Business Records 

IT IS FURTHER ORDERED that: 

22. Defendants and their agents, servants, employees, assigns, attorneys, and persons 

in active concert or participation with Defendants, including any successor thereof, and all other 

persons or entities who receive notice of this Order by personal service or otherwise, are 

immediately restrained and enjoined from directly or indirectly destroying, mutilating, erasing, 
altering, concealing or disposing of, in any manner, directly or indirectly, any documents that 

relate to the business practices or business or personal finances of Defendants and their 

subsidiaries or affiliates. 

V. 

Inspection and Copying of Books and Records 

IT IS FURTHER ORDERED that: 

23. Representatives ofthe Commission shall immediately be allowed to inspect the 

books, records, and other documents of Defendants and their agents, including, but not limited 

to, electronically stored information, tape recordings, and computer discs, wherever they may be 

situated and whether they are in the person of Defendants, or others, and to copy said documents, 

information and records, either on or off Defendants' premises; and 

24. Defendants and their agents, servants, employees, assigns, attorneys, and persons 

in active concert or participation with Defendants, including any successor thereof, who receive 

actual notice of this Order by personal service or otherwise, including facsimile or other 

electronic transmission, shall cooperate fully with the Commission and/or the Receiver to locate 

and provide to representatives ofthe Commission and/or the Receiver all books and records of 

Defendants, wherever such books and records may be situated, and to locate and provide to 

representatives ofthe Commission and/or the Receiver information regarding the whereabouts of 

Defendants. 

VI. 

Order Granting Expedited Discovery 

IT IS FURTHER ORDERED that: 
25. The Commission may conduct expedited discovery, removing the prohibition 

upon discovery before the early meeting of counsel pursuant to FRCP 26(f), in accordance with 

FRCP 26(d), and that the Commission and Receiver may take depositions of Defendants and 

non-parties subject to two calendar days notice pursuant to FRCP 30(a) and 45, that notice may 

be given personally, by facsimile or by electronic mail, Further, more than ten depositions may 

be taken and, if necessary, any deposition may last more than seven hours. 

26. The Commission may conduct expedited discovery to enable the Commission to 

fulfill its statutory duties and protect investors from further loss or damage. This expedited 

discovery will allow the Commission to determine the full extent of Defendant's alleged 

wrongdoing (including, but not limited to, the possible involvement of others), locate 

Defendants' other customers, identify customers' funds, and other of Defendants' Assets, and 

clarify the sources of various funds. 

VII. 

Bond Not Required of Plaintiff 

IT IS FURTHER ORDERED that: 

27. The COMMISSION is an agency ofthe United States of America and, 

accordingly, need not post a bond. 

VIII. 

Order to Show Cause 

IT IS FURTHER ORDERED that: 

28. Defendants shall appear before this Court on the 22nd day of March 2010 

WW; at 9:Qo , _f_.m., before the Honorable Louise w. Flanagan at the United States 

i n New Bern 

Courthouse for the Eastern District of North Carolina to show cause, if there be any, why an 
Order for Preliminary Injunction should not be granted to prohibit further violations ofthe Act 

and why the other relief requested should not be granted pending trial on the merits of this 

action. 

29. Should any party wish to file a memorandum of law or other papers in opposition 

to Plaintiffs Motion for a Preliminary Injunction, all papers shall be filed on or before 

March i8 (2010 Service of all papers shall be by electronic mail, overnight 

mail, facsimile, or personal service. 

X. 

Service 

IT IS FURTHER ORDERED that: 

30. This Order shall be served by any means, including facsimile transmission, upon 

any entity or person that may have possession, custody, or control of any documents or assets of 

Defendants, or that may be subject to any provision ofthe statutory restraining order; and 

31. The Summons, Complaint, or other process may be effected by any CFTC 

representative, any U.S. Marshal or deputy U.S. Marshal, or in accordance with Fed R. Civ. P. 4 

XI. 

Force and Effect 

IT IS FURTHER ORDERED that this Order shall remain in full force and effect until 

further order of this Court and that this Court retains jurisdiction of this matter for all purposes. 
New Bern 

IT IS SO ORDERED, at , North Carolina, on the

 10t h

 day of March, 2010? 

Presented by: 

Attorneys for Plaintiff 

Commodity Futures Trading Commission 

Washington, D.C. 

^ 

Dated: March j ,2010. 

[yfcj* -V) JC^rvy**-

UNITED STATES DISTRICT JUDGE 

Respectfully submitted by, 

Jason A. Mahoney 

Trial Attorney 

j mahoney @cftc. gov 

D.C. Bar No. 489276 

John Dunfee 

Chief Trial Attorney 

j dunfee@cftc. gov 

D.C. Bar No. 461549 

Paul Hayeck 

Associate Director 

phaveck@cftc.gov 

Massachusetts Bar No. 554815 

Attorneys for Plaintiff 

10 
U.S. Commodity Futures Trading Commission 

Division of Enforcement 

Three Lafayette Centre 

1151 21st Street NW 

Washington, DC 20581 

(202)418-5000 

11