:fiJ1 JUL I 2 PM 3: I 8 •·"1:'1 IN THE UNITED STATES DISTRICT COURT 

MIDDLE DISTRICT OF FLORIDA 


JACKSONVILLE DIVISION 


Commodity Futures Trading Commission, 

Plaintiff, 

vs. 

Jason B. Scharf (d/b/a Citrades.com and 

AutoTradingBinary.com); CIT Investments 

LLC; Brevspand EOOD; CIT Investments 

Ltd.; A & J Media Partners, Inc.; Michael 

Shah; and Zilmil, Inc., 

Defendants. 

Case No. 3:17-cv-774-J-32MCR 

IN CAMERA ORDER GRANTING 

PLAINTIFF COMMODITY FUTURES 

TRADING COMMISSION'S EX PARTE 

MOTION FOR STATUTORY 

RESTRAINING ORDER, 

APPOINTMENT OF TEMPORARY 

RECEIVER, AN ACCOUNTING, 

EXPEDITED DISCOVERY, ORDER TO 

SHOW CAUSE REGARDING 

PRELIMINARY INJUNCTION, AND 

OTHER EQUITABLE RELIEF' 

Hon. Timothy J. Conigan 

Plaintiff, the Commodity Futures Trading Commission ("Commission"), has filed a 

Complaint for Permanent Injunction and Other Relief and moved, pursuant to Section 6c(a) 

of the Commodity Exchange Act (the "Act"), 7 U.S.C. § 13a-l(a) (2012), for an ex parte 

statutory restraining order freezing assets, appointing a Temporary Receiver, and ordering 

Defendants Jason Scharf, CIT Investments LLC ("CIT Investments"), Brevspand EOOD 

("Brevspand"), CIT Investments, Ltd. ("CIT Anguilla"), A & J Media Partners, Inc. ("A&J 

1 Although this Order is filed under seal, the Clerk shall provide certified copies to counsel 

for the Commission who is authorized and directed to forthwith serve copies on Defendants 

with a copy of the complaint. Once Defendants have been served, the Court wi ll unseal the 

file upon motion. 
Media"), Michael Shah, and Zilmil, Inc. ("Zilmil") (collectively, "Defendants") to show 

cause why a receiver should not be appointed and why a preliminary injunction should not be 

issued. 

The Court has considered the pleadings, declarations, exhibits, and memorandum 

filed in support of the Commission's motion for a statutory restraining order, and held a 

hearing on the motion on July 12, 2017, the record of which is incorporated by reference. 

The Court finds that: 

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

action pursuant to Section 6c of the Act, 7 U.S.C. § 13a-l. 

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

7 U.S.C. § l 3a-1 (e). 

3. There is good cause to believe that Defendants Scharf, CIT Investments, 

Brevspand, CIT Anguilla, and A&J Media, by and through their agents, principals, and 

control persons, hereinafter collectively refen-ed to as "Citrades Defendants," have engaged 

in, are engaging in, or are about to engage in: 

a. 	 off-exchange retail transactions in swaps, in violation of Section 2( e) of the 

Act, 7 U.S.C. § 2(e) (2012); 

b. 	 off-exchange transactions in commodity options, in violation of Section 4c(b) 

of the Act, 7 U.S.C.§ 6c(b) (2012), and Regulation 32.2, 17 C.F.R. § 32.2 

(2017); and 

c. 	 fraud in violation of: 

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I. 	 Section 4c(b) of the Act, 7 U.S .C.§ 6c(b), and Regulation 32.4, 

17 C.F.R. § 32.4 (2017), which prohibit fraud in connection with 

commodity options transactions; 

II. 	 Section 40(1) of the Act, 7 U.S.C. § 60(1) (2012), which prohibits 

fraud by, among others, a commodity trading advisor ("CTA"), and 

Regulation 4.41(a), 17 C.F.R. § 4.41(a) (2017), which prohibits fraud 

in advertising by, among others, a CTA or any principal thereof; and 

III. 	 Section 6(c)(l) of the Act, 7 U.S.C. § 9(1) (2012), and Regulation 

180.l(a), 17 C.F.R. § 180.l(a) (2017), which prohibit fraud in 

connection with swaps transactions. 

There is good cause to believe that from June 2013 through the present ("Relevant 

Period"), the Citrades Defendants, d/b/a Citrades.com and AutoTradingBinary.com, have 

operated a massive scam in which the Citrades Defendants fraudulently solicited customers 

to enter into illegal, off-exchange investments in so-called "binary options." During the 

Relevant Period, the Citrades Defendants received at least $16 million in customer funds and 

opened more than 140,000 accounts. 

4. There is good cause to believe that Defendants Shah and Zilmil; by and 

through their agents, principals, and control persons, hereinafter collectively referred to as 

"Zilmil Defendants," have engaged in, are engaging in, or are about to engage in: 

a. 	 conducting activity with respect to off-exchange transactions in commodity 

options, in violation of Section 4c(b) ofthe Act, 7 U.S.C. § 6c(b), and 

Regulation 32.2, 17 C.F.R. § 32.2; and 

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b. 	 fraud in violation of: 

I. 	 Section 4c(b) ofthe Act, 7 U.S.C.§ 6c(b), and Regulation 32.4, 

17 C.F.R. § 32.4, which prohibit fraud in connection with commodity 

options transactions; 

II. 	 Section 4o(l) ofthe Act, 7 U.S.C. § 60(1), which prohibits fraud by, 

among others, a commodity trading advisor ("CTA"), and Regulation 

4.4l(a), 17 C.F.R. § 4.4l(a), which prohibits fraud in advertising by, 

among others, a CTA or any principal thereof; and 

III. 	 Section 6(c)(I) of the Act, 7 U.S.C. § 9(1), and Regulation 180.l(a), 

17 C.F.R. § 180.1 (a), which prohibit fraud in connection with swaps 

transactions. 

5. There is good cause to believe that during the Relevant Period, the Zilmil 

Defendants acted as third-party " affiliate marketers" who drive internet traffic to the Citrades 

Defendants by fraudulently soliciting customers to sign up for or purchase so-called binary 

options autotrading systems with names like "Millionaire Money Machine. " When 

customers sign up for the autotrading systems, they are instructed to send money to the 

Citrades Defendants. During the Relevant Period, the Zilmil Defendants made gross 

revenues of more than $4 million from sales of its autotrading systems and another $500,000 

in commissions from the Citrades Defendants. 

6. 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 or other 

redress will occur from the sale, transfer, assignment, or other disposition by Defendants of 

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assets or records unless Defendants are immediately restrained and enjoined by Order of the 

Court. 

7. Therefore, there is good cause for the Court to freeze assets owned, 

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

8. There is good cause for entry of an order prohibiting Defendants, their agents, 

servants, employees, assigns, attorneys, and persons in active concert or participation with 

the Defendants, including any successor thereof, from destroying records and/or denying 

agents of the Commission access to inspect and copy records, when and as requested, to 

ensure that Commission representatives have immediate and complete access to those books 

and records. 

9. There is good cause for the Plaintiff to conduct expedited discovery in order 

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

customers, identify customer funds and other assets of the Defendants and clarify the source 

and whereabouts of various funds. 

10. There is good cause for the appointment of a Temporary Receiver to take 

control of all assets owned, controlled, managed or held by, on behalf of, or for the benefit of 

Defendants in order to preserve assets, investigate and determine customer claims, determine 

unlawful proceeds retained by Defendants and amounts due to customers as a result of 

Defendants' alleged violations, and distribute remaining funds under the Court's supervision. 

11 . There is good cause to require an accounting by Defendants to determine the 

location and disposition of customer funds. 

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12. There is good cause to order repatriation of assets controlled by Defendants to 

assure payment of restitution and disgorgement as authorized and for the benefit of 

customers. 

13. Absent the entry of this statutory restraining order, the Defendants are likely 

to dissipate or transfer assets and destroy business records. 

14. Weighing the equities and considering the Commission' s likelihood of 

success, this is a proper case for granting a statutory restraining order ex parte to preserve the 

status quo, protect public customers from loss and damage, and enable the Commission to 

fulfill its statutory duties, therefore the Court orders as follows: 

DEFINITIONS 

For the purposes of this Order, the following definitions apply: 

15. The term "assets" means any legal or equitable interest in, right to, or claim 

to, any real or personal property, whether individually or jointly, directly or indirectly 

controlled, 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 other financial institutions), credits, receivables, lines of credit, contracts (including spot, 

futures, options, or swaps contracts), insurance policies, and all cash, wherever located, 

whether in the United States or outside the United States. 

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

usage of the term in Federal Rule of Civil Procedure ("Fed. R. Civ. P. ") 34(a), and includes, 

but is not limited to, all writings or printed matter of any kind, including without limitation: 

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records, correspondence, memoranda, notes, rolodexes, address books, diaries, statistics, emai 1, letters, telegrams, minutes, contracts, reports, studies, checks, statements, receipts, 

returns, summaries, pamphlets, books, prospectuses, interoffice or intra-office 

communications, telephone message slips, offers, notations of conversations, bulletins, 

drawings, plans, computer printouts, computer input or output, teletypes, facsimiles, 

invoices, worksheets, ledger books, books of accounts, and all drafts, alterations, 

modifications, changes and amendments of any of the foregoing. The term "document" also 

includes graphs, charts, photographs, phonographic record, audio and video recordings, 

computer records, and other data compilations from which information can be obtained or 

translated, if necessary, through detection devices into reasonable usable form. The term 

"document" also refers to each and every document in Defendant(s)' actual or constructive 

possession, including but not limited to: (i) all documents within Defendant(s)' custody or 

control of any of Defendant(s)' present or former agents, employers, employees, partners, 

and (ii) all documents which Defendant(s) have a legal or equitable right to obtain from 

another person. A draft or non-identical copy is a separate document within the meaning of 

the term. ·A document also includes the file and folder tabs associated with each original and 

copy. 

17. "Defendant(s)" refers to Jason Scharf, CIT Investments, Brevspand, CIT 

Anguilla, A&J Media, Michael Shah, and Zilmil, and any person insofar as he or she is 

acting in the capacity of an officer, agent servant, employee, or attorney of any Defendant 

and any person who receives actual notice of this Order by personal service or otherwise 

insofar as he or she is acting in concert or participation with any Defendant. "Defendant(s)" 

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also refers 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 Jason Scharf, CIT Investments, 

Brevspand, CIT Anguilla, A&J Media, Michael Shah, or Zilmil. 

RELIEF GRANTED 

I. 	 Asset Freeze Order Prohibiting the Transfer, Removal, Dissipation and Disposal 

of Assets 

18. IT IS HEREBY ORDERED that Defendants and their agents, servants, 

employees, assigns, attorneys, and persons in active concert or participation with them, 

including any successor thereof, who receive actual notice of this Order by personal service 

or otherwise, are immediately restrained and enjoined, except as otherwise ordered by this 

Court, from directly or indirectly transferring, selling, alienating, liquidating, encumbering, 

pledging, leasing, loaning, assigning, concealing, dissipating, converting, withdrawing, or 

otherwise disposing of any Defendants' assets, wherever located, including Defendants' 

assets held outside the United States, except as provided otherwise in Sections V and VI of 

this Order, or as otherwise ordered by the Court; 

19. 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. 

20. Notwithstanding the provisions of this Section I, at the request of the 

Temporary Receiver, Defendants and any other person who has possession, custody, or 

control of any of Defendants' assets shall transfer possession of all assets subject to this 

Order to the Temporary Receiver in accordance with Section VII of this Order. 

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21. The assets affected by this Order shall include both existing assets and assets 

acquired after the effective date of this Order. 

II. 	 Directives to Financial Institutions and Others 

22. 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 account or other of 

Defendants' assets at any time since June 2013 shall: 

a. 	 Immediately upon receipt of a copy of this Order, prohibit Defendants and all 

other persons from withdrawing, removing, assigning, transferring, pledging, 

encumbering, disbursing, dissipating, converting, selling or otherwise 

disposing of any of Defendants' assets, except as directed by further order of 

the Court. 

b. 	 Immediately upon receipt of a copy of this Order 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. 

c. 	 Within five (5) business days of receiving a copy of this Order, provide the 

Temporary Receiver a statement setting forth: (a) the identification number of 

each and every account or 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 of the nature and value of 

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

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received, 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 of the person or entity to whom such account or other asset was 

remitted; and ( c) the identification of any safe deposit box that is either 

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 

any Defendants. 

d. 	 Within ten ( 10) business days of a request by the Temporary Receiver, or such 

longer period specified by the Temporary Receiver, provide the Temporary 

Receiver 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, 1099 forms, and safe 

deposit box logs. 

e. 	 Cooperate with all reasonable requests of the Temporary Receiver or the 

Commission relating to implementation of this Order, including transferring 

funds at the Temporary Receiver's direction and producing records related to 

Defendants' accounts. 

III. 	 Maintenance of and Access to Business Records 

IT IS HEREBY ORDERED that: 

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23. Defendants, and all persons or entities who receive notice of this Order by 

personal service or otherwise, are restrained from directly or indirectly destroying, 

mutilating, erasing, altering, concealing or disposing of, in any manner any documents that 

refer or relate in any manner to any transaction or matter described in the Complaint in this 

case, including the business practices or business or personal finances of any Defendant. 

IV. 	 Inspection and Copying of Books and Records 

IT IS FURTHER ORDERED that: 

24. Representatives of the Commission (accompanied by representatives of other 

state or federal authorities, including the Federal Bureau oflnvestigation, if the Commission 

so desires) shall be allowed immediate and continued access to inspect the books, records, 

and other documents of the Defendants and their agents that refer or relate in any manner to 

any transaction or matter described in the Complaint in this case, including, but not limited 

to, paper documents, electronically stored information, tape recordings, and computer discs, 

when and as requested wherever they may be situated and whether they are in the possession 

of the Defendants or others, and to copy said documents, data and records, either on or off 

the premises where they may be situated. 

25. For email or other accounts that contain personal communications of the 

individual defendants not relating in any manner to any transaction or matter described in the 

Complaint, the Commission shall not disclose such communications, and shall treat such 

communications as confidential. 

V. 	 Order Appointing Temporary Receiver. 

IT IS FURTHER ORDERED that: 

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26. Kenneth Dante Murena of DAMIAN & V ALO RI LLP, 1000 Brickell Ave., 

Suite 1020, Miami, FL 33131 is appointed Temporary Receiver, with the full powers of an 

equity receiver, for Defendants and their affiliates and subsidiaries (hereinafter referred to as 

the "Receivership Defendants"), and of all the funds, properties, premises, accounts, income, 

money now or hereafter due or owing to the Receivership Defendants, and other assets 

directly or indirectly owned, beneficially or otherwise, by the Receivership Defendants 

(hereinafter, the "Receivership Estate"). The Temporary Receiver shall be the agent of this 

Court in acting as Temporary Receiver under this Order. 

27. The Temporary Receiver is directed and authorized to accomplish the 

following: 

a. 	 Assume full control of the Receivership Defendants by removing Defendants, 

and any officer, independent contractor, employee, or agent of the 

Receivership Defendants, from control and management of the affairs of the 

Receivership Defendants; 

b. 	 Take exclusive custody, control, and possession of the Receivership Estate 

with the full power to sue for, collect, receive and take possession of all 

goods, chattels, rights, credits, moneys, effects, land, leases, books, records, 

work papers, and records of accounts, including computer-maintained 

information, contracts, financial records, monies on hand in banks and other 

financial institutions, and other papers and documents of the Receivership 

Defendants and customers or clients whose interests are now held by or under 

the direction, possession, custody or control of the Receivership Defendants; 

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c. Perform all acts necessary, including the suspension of operations, to 

conserve, hold, manage, and preserve the value of the Receivership Estate ih 

order to prevent an irreparable loss, damage, or injury to· customers; 

d. Prevent the withdrawal or misapplication of funds entrusted to the 

receivership Defendants, and otherwise protect the interests of customers or 

clients; 

e. Manage and administer the Receivership Defendants and the Receivership 

Estate by performing all acts incidental thereto that the Temporary Receiver 

deems appropriate, including hiring or dismissing any and all personnel, 

suspending operations, and/or entering into agreements, including but not 

limited to: (1) the retention and employment of investigators, attorneys, or 

accountants of the Temporary Receiver's choice, including without limitation 

members and employees of the Temporary Receiver firm, to assist, advise, 

and represent the Temporary Receiver; and (2) the movement and storage of 

any equipment, furniture , records, files or other physical property of the 

Receivership Defendants; 

f. Collect all money owed to the Receivership Defendants; 

g. Initiate, defend, compromise, adjust, intervene in, dispose of, or become a 

party to any actions or proceedings in state, federal or foreign court that the 

Temporary Receiver deems necessary and advisable to preserve or increase 

the value of the Receivership Estate or that the Temporary Receiver deems 

13 

necessary and advisable to cany out the Temporary Receiver's mandate under 

this Order; 

h. Choose, engage and employ attorneys, accountants, appraisers, and other 

independent contractors and technical specialists, as the Temporary Receiver 

deems advisable or necessary in the performance of duties and responsibilities 

under the authority granted by this Order; 

L Issue subpoenas to obtain documents and records pe1iaining to the 

Receivership and conduct discovery in this action on behalf of the 

Receivership Estate; 

J. Open one or more bank accounts and deposit all funds of the Receivership 

Estate in such designated accounts and make all payments and disbursements 

from the Receivership Estate from such accounts; 

k. 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, provided that the Temporary Receiver shall 

apply to the Court for prior approval of any payment of any debt or obligation 

incurred by the Receivership Defendants prior to the date of entry of this 

Order, except for payments that the Temporary Receiver deems necessary or 

advisable to secure the Receivership Estate from immediate and irreparable 

loss; 

l. Maintain written accounts itemizing receipts and expenditures, describing 

properties held or managed, and naming the depositories holding funds or 

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other assets of the Receivership Estate; make such written accounts and 

supporting documentation available to the Commission for inspection; and, 

within sixty (60) days of being appointed and periodically thereafter, as 

directed by the Court, file with the Cowt and serve on the parties a report 

summarizing efforts to marshal and collect assets, administer the Receivership 

Estate, and otherwise perform the duties mandated by this Order. 

VI. 	 Accounting and Transfer of Funds and Documents 

28. IT IS FURTHER ORDERED that within five (5) business days following 

the service of this Order, each Defendant shall: 

a. 	 Provide the Temporary Receiver with a full detailed accounting of all funds, 

documents, and assets, including the assets inside and outside of the United 

States that are held by each and every Defendant, for their benefit, or under 

their direct or indirect control, whether jointly or singly. 

b. 	 Transfer to the territory of the United States and deliver to possession, 

custody, and control of the Temporary Receiver, all funds, documents, and 

assets (other than real property) located outside of the United States that are 

held by each and every Defendant, for their benefit, or under their direct or 

indirect control, whether jointly or singly. 

c. 	 Provide the Temporary Receiver access to all records of accounts or assets of 

the Defendant(s) 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. 

15 

IT IS FURTHER ORDERED, that: 

29. Defendants shall, within 24 hours of service of this Order, cause to be 

prepared and delivered to the Temporary Receiver, a detailed and complete schedule of all 

passwords and identification (ID) numbers for all websites, cloud storage services, 

videophone accounts and all accounts at any bank, financial institution or brokerage firm 

(including any introducing broker or futures commission merchant) operated by or to which 

any of the Defendants has access. 

30. Defendants shall, within 24 hour of the issuance of this Order, cause to be 

prepared and delivered to the Temporary Receiver, a detailed and complete schedule of all 

desk top computers, laptop computers and or mobile devices owned and/or used by them in 

connection with their business. The schedules required by this section shall include at a 

minimum the make, model and description of each, along with the location, the name of the 

person primarily assigned to use the computer and/or mobile device, and all passwords 

necessary to access and use the software contained on the computer and/or mobile device. 

The Commission shall be authorized to make an electronic, digital or hard copy of all of the 

data contained on the computer(s) and/or mobile device(s) that refer or relate in any manner 

to any transaction or matter described in the Complaint in this case. 

31. For email or other accounts that contain personal communications of the 

individual defendants not relating in any manner to any transaction or matter described in the 

Complaint, the Temporary Receiver shall not disclose such communications, and shall treat 

such communications as confidential. 

VII. Turning Over Property to the Temporary Receiver 

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IT IS FURTHER ORDERED that: 

32. Immediately upon service of this Order upon them, Defendants, and any other 

person or entity served with a copy of this Order, shall immediately or within such time as 

permitted by the Temporary Receiver in writing, deliver over to the Temporary Receiver: 

a. 	 Possession and custody of all funds, assets, property, and all other assets, 

owned beneficially or otherwise, wherever situated, of the Receivership 

Defendants; 

b. 	 Possession and custody of records of the Receivership Defendants, including 

but not limited to, all books and records of accounts, all financial and 

accounting records, balance sheets, income statements, bank records 

(including monthly statements, canceled checks, records of wire transfers, and 

check registers), client lists, title documents and other records of the 

Receivership Defendants; 

c. 	 Possession and custody of all funds and other assets belonging to members of 

the public now held by the Receivership Defendants; 

d. 	 All keys, computer passwords, entry codes, and combinations to locks 

necessary to gain or to secure access to any of the assets or records of the 

Receivership Defendants, including but not limited to, access to the 

Receivership Defendants' business premises, means of communication, 

accounts, computer systems, or other property; and 

e. 	 Information identifying the accounts, employees, properties or other assets or 

obligations of the Receivership Defendants. 

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VIII. Directive to Cooperate with Temporary Receiver 

IT IS FURTHER ORDERED that: 

33. Defendants, and all other persons or entities served with a copy of this order 

shall cooperate fully with and assist the Temporary Receiver. This cooperation and 

assistance shall include, but not be limited to, providing any information to the Temporary 

Receiver that the Temporary Receiver deems necessary to exercising the authority as 

provided in this Order; providing any password required to access any computer or electronic 

files in any medium; and discharging the responsibilities of the Temporary Receiver under 

this Order, and advising all persons who owe money to the Receivership Defendants that all 

debts should be paid directly to the Temporary Receiver. 

IX. 	 Stay on Actions By the Receivership Defendants 


IT IS FURTHER ORDERED that: 


33. Except by leave of the Court, during the pendency of the receivership ordered 

herein, the Defendants, and all other persons and entities be and hereby are stayed from 

petitioning, or assisting in the filing of a petition, that would cause the Receivership 

Defendants to be placed in bankruptcy. 

X. 	 Compensation for Temporary Receiver and Personnel Hired by the Temporary 

Receiver 

IT IS FURTHER ORDERED that: 

34. The Temporary Receiver and all personnel hired by the Temporary Receiver 

shall comply with Billing Instructions attached hereto. 

XI. 	 Bond Not Required of Plaintiff or the Temporary Receiver 

IT IS FURTHER ORDERED that: 

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35. As Plaintiff Commission is an agency ofthe United States of America, which 

has made a proper showing under Section 6c(b), 7 U.S.C. 13a-l(b), this restraining order is 

granted without bond. Accordingly, the Temporary Receiver need not post a bond. 

XII. 	 Service of Order 

IT IS FURTHER ORDERED that: 

36. Copies of this Order may be.served by any means, including facsimile or 

email transmission, upon any financial institution or other entity or person that may have 

possession, custody, or control of any documents or assets of any Defendant, or that may be 

otherwise subject to any provision of this Order. 

37. Staff of the Division of Enforcement, or representatives thereof, 

representatives of the United States Marshal Service, and representatives of any state or local 

law enforcement agencies in the jurisdictions, including the Federal Bureau of Investigation, 

in which any Defendant resides are specially appointed by the Court to effect service. 

Further, service of the Summons, Complaint, or other process may be effected by any 

Commission representative, any U.S. Marshal or deputy U.S. Marshal, any representative of 

the Federal Bureau oflnvestigation, or in accordance with Fed. R. Civ. P. 4, and service on 

corporate entities may be effected by serving the Summons, Complaint, or other process via 

overnight delivery to the registered agent of said corporate entities. 

XIII. 	 Assistance of U.S. Marshals Service and Other Law Enforcement Personnel 

IT IS FURTHER ORDERED that: 

38. The United States Marshal's Service and the Federal Bureau oflnvestigation 

are authorized to accompany and assist (a) the Commission's representatives in the service 

19 

and execution of the Summons, Complaint and this Order and to undertake such efforts as 

are reasonably necessary to ensure that the Commission's representatives have an unimpeded 

right to inspect and copy books, records, and documents as set forth above wherever such 

books, records, and documents are or are believed by the Commission to be located, and 

(b) the Temporary Receiver in taking control and custody of the assets, records and business 

premises of the Receivership Defendants. 

XIV. 	 Expedited Discovery 

IT IS FURTHER ORDERED that: 

39. Notwithstanding the prohibition upon discovery before the early meeting of 

counsel pursuant to Fed. R. Civ. P. 26(f), in accordance with Fed. R. Civ. P. 26(d), the 

Commission is granted leave to conduct expedited discovery at any time after service of this 

Order, to take the deposition of and demand the production of documents from any person or 

entity for the purpose of discovering the nature, location, status, and extent of assets of the 

Defendants, and the location of documents reflecting the business transactions of the 

Defendants; forty-eight ( 48) hours' notice, personally, by facsimile or by electronic mail, 

shall be deemed sufficient for any such deposition and five (5) days' notice, personally, by 

facsimile or by electronic mail, shall be deemed sufficient for the production of any such 

documents. 

40. 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/Defendants' alleged wrongdoing (including, but not limited to, the possible 

20 

involvement of others), locate Defendant's/Defendants' other customers, identify customers' 

funds and other of Defendants' assets, and clarify the sources of various funds. 

41 . No deposition taken pursuant to this section XIII shall count towards the tendeposition limit set forth in Fed. R. Civ. P. 30(a)(2)(A)(i). 

XV. 	 Service on the Commission 

IT IS FURTHER ORDERED that: 

42. The Defendants shall comply with all electronic filing rules and requirements 

of the U.S. District Court of the Middle District of Florida, Jacksonville Division, and shall 

serve all pleadings, correspondence, notices required by this Order, and other materials on 

the Commission by delivering a copy to Senior Trial Attorney Ashley J. Burden, Division of 

Enforcement, Commodity Futures Trading Commission, 525 West Monroe Street, Suite 

1100, Chicago, Illinois 60661 , aburden@cftc.gov, by electronic filing, e-mail, personal 

delivery or courier service (such as Federal Express or United Parcel Service) and not by 

regular mail due to potential delay resulting from heightened security and decontamination 

procedures applicable to the Commission's regular mail. 

XVI. 	 Order to Show Cause 

IT IS FURTHER ORDERED that: 

43. Each of the Defendants shall appear before this Court on Wednesday, July 

26, 2017, at 2:00 p.m. before the Honorable Timothy J. Corrigan, Courtroom 10-D at the 

United States Courthouse for the Middle District of Florida at 300 N. Hogan Street, 

Jacksonville, Florida 32202, to show cause, if there be any, why an Order for Preliminary 

Injunction should not be granted to prohibit further violations of the Act and Regulations and 

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why this Court should not continue the freeze on the assets of the Defendants, make the 

Temporary Receiver's appointment permanent, and order any additional Relief this Court 

deems appropriate pending trial on the merits of this action. The temporary receiver is also 

directed to appear in person at the hearing. Should any party wish to file a memorandum 

of law or other papers in opposition to the Commission's Motion for Preliminary Injunction 

against the Defendants, all papers shall be filed on or before Monday, July 24, 2017 at 

12:00 p.m., and upon Senior Trial Attorney Ashley J. Burden, Division of Enforcement, 

Commodity Futures Trading Commission, 525 West Monroe Street, Suite 1100, Chicago, 

Illinois 60661, aburden@cftc. gov, by electronic filing, e-mail, personal delivery or courier 

service (such as Federal Express or United Parcel Service), and not by regular mail. Any 

Defendant who files such papers shall be subject to a limit of 25 pages, exclusive of exhibits. 

Service of all papers shall be by electronic mail, facsimile, or personal service. 

44. The Commission shall file proof of service forthwith as each Defendant is 

served. 

XVII. 	Force and Effect 

IT IS FURTHER ORDERED that: 

45 . This Order shall remain in full force and effect until further order of this 

Court, and that this Cou11 retains jurisdiction of this matter for all purposes. However, the 

Court recognizes that this Order is being entered on an ex parte basis and Defendants will be 

provided a full opportunity to be heard at the hearing on the Commission's motion for 

preliminary injunction. 

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0 

IT SO ORDERED, at Jacksonville, Florida on this 12th day of July 2017, at ~: .m. 

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Copies with attached Billing Instructions and Consent form: 

Ashley J. Bmden, Esq. 

Eric L. Schleef, Esq. 

Joseph Konizeski, Esq. 

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