Securities and Exchange Commission v. Champion-Cain et al, No. 3:2019cv01628 - Document 6 (S.D. Cal. 2019)

Court Description: ORDER granting 2 Joint Motion for Preliminary Injunction. It is ordered that, except as otherwise ordered by Court, an immediate freeze shall be placed on all monies and assets in all accounts at any bank, financial institution or brokerage firm or third-payment payment processor, all certificates of deposit, and other funds or assets, held in the name of, for the benefit of, or over which account authority is held by Defendants Champion-Cain and ANI Development, Relief Defendant American Nati onal Investments, and/or all of their subsidiaries and affiliates. The account held jointly in the name of Steven Cain and Gina Champion-Cain at Wells Fargo, and funded in part by Steven Cain's separate salary, shall be excepted from the freeze on all monies and assets, in only the respect outlined in this Order. An immediate freeze shall be placed on the title of the properties listed in this Order, which shall not be mortgaged, transferred, or otherwise hypothecated. Krista L. Freitag is appointed as permanent receiver of Defendant ANI Development and Relief Defendant American National Investments and their subsidiaries and affiliates. Court shall retain jurisdiction for the purpose of implementing and carrying out the terms of all orders and decrees which may be entered herein. Status Conference concerning the receivership set for 10/7/2019 10:30 AM before Judge Marilyn L. Huff. Signed by Judge Marilyn L. Huff on 9/3/2019. (jah)

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Securities and Exchange Commission v. Champion-Cain et al Doc. 6 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 SECURITIES AND EXCHANGE COMMISSION, 12 Plaintiff, 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Case No.: 3:19-cv-01628-H-BLM ORDER; GRANTING THE PARTIES’ JOINT MOTION AND STIPULATED REQUEST BY ALL PARTIES FOR A PRELIMINARY INJUNCTION ORDER AND ORDER (1) FREEZING ASSETS; (2) REQUIRING ACCOUNTINGS; (3) PROHIBITING THE DESTRUCTION OF DOCUMENTS; AND (4) APPOINTING A PERMANENT RECEIVER vs. GINA CHAMPION-CAIN AND ANI DEVELOPMENT, LLC Defendants, and AMERICAN NATIONAL INVESTMENTS, INC., [Doc. No. 2] Relief Defendant. On August 28, 2019, the Securities and Exchange Commission (“Plaintiff” or “SEC”) filed a complaint against ANI Development, LLC (“ANI Development”), Gina Champion-Cain (collectively “Defendants”) and Relief Defendant American National Investments, Inc. (American National Investments) alleging violations of various federal securities laws. (Doc. No. 1.) Concurrently the parties filed a joint motion for Preliminary Injunction which is now before the Court. (Doc. No. 2.) The present Joint Motion and Stipulated Request by All Parties seeks a Preliminary Injunction Order and Order (1) Freezing Assets; (2) Requiring Accountings; (3) Prohibiting the Destruction of Documents; and (4) Appointing a Permanent Receiver filed by the SEC 28 1 3:19-cv-01628-H-BLM Dockets.Justia.com 1 and Defendants and Relief Defendant American National Investments. 2 Background 3 The SEC seeks an order preliminarily enjoining Defendants from engaging in 4 specified conduct, Defendants and Relief Defendant do not oppose the requested relief, and 5 Defendants and Relief Defendant consent and agree to an asset freeze, accountings, and 6 prohibition of the destruction of documents, and the SEC, Defendants, and Relief 7 Defendants jointly request the appointment of a permanent receiver over ANI 8 Development, American National Investments, and all of their subsidiaries and affiliates. 9 The Court, having considered the SEC’s Complaint and the parties’ Joint Motion 10 and Stipulated Request by All Parties for a Preliminary Injunction Order and Order (1) 11 Freezing Assets; (2) Requiring Accountings; (3) Prohibiting the Destruction of Documents; 12 and (4) Appointing a Permanent Receiver, finds that: 13 A. This Court has jurisdiction over the parties to, and the subject matter of, this 14 action, pursuant to Sections 20(b), 20(d)(1) and 22(a) of the Securities Act of 15 1933 (“Securities Act”), 15 U.S.C. §§ 77t(b), 77t(d)(1) & 77v(a), and Sections 16 21(d)(1), 21(d)(3)(A), 21(e) and 27(a) of the Securities Exchange Act of 1934 17 (“Exchange Act”), 15 U.S.C. §§78u(d)(1), 78u(d)(3)(A), 78u(e) & 78aa(a). 18 B. Venue properly lies in this district pursuant to Section 22(a) of the Securities 19 Act, 15 U.S.C. § 77v(a) and Section 27(a) of the Exchange Act, 15 U.S.C. § 20 78aa(a), because certain of the transactions, acts, practices and courses of 21 conduct constituting alleged violations of the federal securities laws occurred 22 within this district. In addition, venue is proper in this district because 23 Defendant ANI Development and Relief Defendant American National 24 Investments have their principal places of business in this district. 25 C. Defendants and Relief Defendant do not dispute that the SEC is able to make 26 the requisite showing for the requested relief pursuant to Section 20(b) of the 27 Securities Act [15 U.S.C. s 77t(b)] and Section 21(d) of the Exchange Act [15 28 U.S.C. § 78u(b)] in order to prevent violations of federal securities laws 2 3:19-cv-01628-H-BLM 1 2 during the pendency of the litigation. D. Good cause exists to believe that, unless restrained and enjoined by order of 3 this Court, Defendants or Relief Defendants could dissipate, conceal, or 4 transfer assets which could be the subject to an order directing disgorgement 5 or the payment of civil money penalties in this action. It is appropriate for the 6 Court to issue this Preliminary Injunction preventing the dissipation of assets. 7 E. Good cause exists to believe that an accounting of assets is necessary. 8 F. Good cause exists to believe that, unless restrained and enjoined by order of 9 this Court, Defendants and Relief Defendants could alter or destroy 10 11 documents relevant to this action. G. Good cause exists to warrant the appointment of a permanent receiver over 12 ANI Development, American National Investments, and all of their 13 subsidiaries and affiliates. 14 I. 15 IT IS HEREBY ORDERED that the SEC, Defendants, and Relief Defendant’s 16 Joint Motion and Stipulated Request by All Parties for a Preliminary Injunction Order and 17 Order (1) Freezing Assets; (2) Requiring Accountings; (3) Prohibiting the Destruction of 18 Documents; and (4) Appointing a Permanent Receiver is GRANTED. 19 II. 20 IT IS FURTHER ORDERED that Defendants Champion-Cain and ANI 21 Development, and their officers, agents, servants, employees, attorneys, subsidiaries and 22 affiliates, and those persons in active concert or participation with any of them, who receive 23 actual notice of this Order, by personal service or otherwise, and each of them, be and 24 hereby are preliminarily restrained and enjoined from, directly or indirectly, in the offer or 25 sale of any securities, by the use of any means or instruments of transportation or 26 communication in interstate commerce or by the use of the mails: 27 A. employing any device, scheme or artifice to defraud; 28 B. obtaining money or property by means of any untrue statement of a material 3 3:19-cv-01628-H-BLM 1 fact or any omission to state a material fact necessary in order to make the 2 statements made, in light of the circumstances under which they were made, 3 not misleading; or 4 C. 5 6 engaging in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser; in violation of Section 17(a) of the Securities Act, 15 U.S.C. § 77q(a). 7 III. 8 IT IS FURTHER ORDERED that Defendants Champion-Cain and ANI 9 Development, and their officers, agents, servants, employees, attorneys, subsidiaries and 10 affiliates, and those persons in active concert or participation with any of them, who receive 11 actual notice of this Order, by personal service or otherwise, and each of them, be and 12 hereby are preliminarily restrained and enjoined from, directly or indirectly, in connection 13 with the purchase or sale of any security, by the use of any means or instrumentality of 14 interstate commerce, or of the mails, or of any facility of any national securities exchange: 15 A. employing any device, scheme or artifice to defraud; 16 B. making any untrue statement of a material fact or omitting to state a material 17 fact necessary in order to make the statements made, in the light of the 18 circumstances under which they were made, not misleading; or 19 20 C. engaging in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person; 21 in violation of Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5 22 thereunder, 17 C.F.R. § 240.10b-5. 23 IV. 24 IT IS FURTHER ORDERED that, except as otherwise ordered by this Court, 25 Defendants Champion-Cain and ANI Development, and Relief Defendant American 26 National Investments, and their officers, agents, servants, employees, attorneys, 27 subsidiaries and affiliates, including, but not limited to the following: 132 & 140 Keller Street, LLC 28 4 3:19-cv-01628-H-BLM 1 2163 Abbot Street, LP 2 2466 1st Avenue, LLC 3 301 D Street, LLC 4 3415 Mission Blvd., LLC 5 3445 Ingraham Street, LLC 6 3768 Mission Blvd., LLC 7 3816 Mission Blvd., LLC 8 3833 Mission Blvd., LLC 9 4030 Randolph Street, LLC 10 4445 Lamont Street, LLC 11 901 W. Washington, LLC 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ANI Andreas Truffles, LP ANI Commercial CA III, LLC ANI Prop Management, Inc. Bao Beach, LP Beautiful MB, Inc. Friends of Presidio Friends of Presidio Hills Golf La Mesa Ventures I, LLC Luvsurf, LLC Perils of Pauline Food Product, Inc. Pullman Lofts Phase I, LLC San Jose Parking Lot, LLC Tenth & J, LLC Tenth and J, LP The Fireside By the Patio, LP The Foundation, LP 5 3:19-cv-01628-H-BLM 1 The Patio Express, LP 2 The Patio In Petaluma, LP 3 The Patio Marketplace, LP 4 The Patio On Lamont, LP 5 The Surf Life, LP 6 The Swell Coffee Roasting Co., LLC 7 1625 Hotel Circle South, LLC 8 4020 Goldfinch Street, LLC 9 Casanova & Palou, LLC 10 Cultivate Juicing Co., LP 11 Foundation, LP 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6050 El Cajon Blvd, LLC 814 Jamaica Court, LLC GCC I, LLC Patio at the Ballpark, LLC TPO Lamont, LLC Urbane Boheme, LP Westlink Development Co., LLC Windemere Court, LLC CA Opportunity License Fund, LLC ERA Boutique Hotel, LLC Cultivate Coffee CWC Casa Del Zorro, LLC 809 San Rafael Place, LLC San Rafael Place, LLC 3515 Hancock Street, LLC 809 San Rafael Place, LLC 6 3:19-cv-01628-H-BLM 1 2 and those persons in active concert with them, who receive actual notice of this Order, by 3 personal service or otherwise, and each of them, be and hereby are preliminarily restrained 4 and enjoined from, directly or indirectly, transferring, assigning, selling, hypothecating, 5 changing, wasting, dissipating, converting, concealing, encumbering, or otherwise 6 disposing of, in any manner, any funds, assets, securities, claims or other real or personal 7 property, including any notes or deeds of trust or other interest in real property, wherever 8 located, of any one of the Defendants or Relief Defendant, or their subsidiaries or affiliates, 9 owned by, controlled by, managed by or in the possession or custody of any of them, and 10 from transferring, encumbering dissipating, incurring charges or cash advances on any 11 debit or credit card of the credit arrangement of any one of the Defendants or Relief 12 Defendant, or their subsidiaries and affiliates. 13 V. 14 IT IS FURTHER ORDERED that, except as otherwise ordered by this Court, an 15 immediate freeze shall be placed on all monies and assets (with an allowance for necessary 16 and expenses to be granted only upon good cause shown by application to the Court with 17 notice to and an opportunity for the SEC to be heard (with the expectation that Defendant 18 Cain intends to bring such motion and the SEC shall so stipulate if good cause is shown) 19 in all accounts at any bank, financial institution or brokerage firm, or third-payment 20 payment processor, all certificates of deposit, and other funds or assets, held in the name 21 of, for the benefit of, or over which account authority is held by Defendants Champion- 22 Cain and ANI Development, Relief Defendant American National Investments, and/or all 23 of their subsidiaries and affiliates including, but not limited to those subsidiaries and 24 affiliates identified above in Section IV, and, including but not limited to, the accounts 25 listed below: BANK NAME 26 ACCOUNT NAME ACCOUNT NO. 27 Wells Fargo Bank 132 & 140 Keller Street LLC xxxxxx1819 28 Wells Fargo Bank 2163 Abbot Street LP xxxxxx0125 7 3:19-cv-01628-H-BLM 1 BANK NAME ACCOUNT NAME ACCOUNT NO. 2 Wells Fargo Bank 2466 1st Avenue, LLC xxxxxx5890 3 Wells Fargo Bank 301 D Street, LLC xxxxxx2365 4 Wells Fargo Bank 3415 Mission Blvd., LLC xxxxxx7705 5 Wells Fargo Bank 3445 Ingraham Street, LLC xxxxxx7577 6 Wells Fargo Bank 3768 Mission Blvd., LLC xxxxxx3126 7 Wells Fargo Bank 3816 Mission Blvd., LLC xxxxxx2976 8 Wells Fargo Bank 3833 Mission Blvd., LLC xxxxxx0658 9 Wells Fargo Bank 4030 Randolph Street, LLC xxxxxx3924 10 Wells Fargo Bank 4445 Lamont Street LLC xxxxxx1942 11 Wells Fargo Bank 901 W. Washington, LLC xxxxxx2373 Wells Fargo Bank American Natl Investments Inc. xxxxx0083 Wells Fargo Bank ANI Andreas Truffles LP xxxxxx7324 Wells Fargo Bank ANI Commercial CA III, LLC xxxxxx4452 Wells Fargo Bank ANI Development, LLC xxxxxx3768 Wells Fargo Bank ANI Prop Management, Inc. xxxxxx1369 Wells Fargo Bank Bao Beach LP xxxxxx4190 Wells Fargo Bank Beautiful MB, Inc. xxxxxx9394 Wells Fargo Bank Friends of Presidio xxxxxx2296 Wells Fargo Bank Friends of Presidio Hills Golf xxxxxx2296 Wells Fargo Bank La Mesa Ventures I, LLC xxxxxx3338 Wells Fargo Bank Luvsurf, LLC xxxxxx0178 Wells Fargo Bank Perils of Pauline Food Product, xxxxx3826 Inc. 25 Wells Fargo Bank Pullman Lofts Phase I, LLC xxxxxx2304 26 Wells Fargo Bank San Jose Parking Lot, LLC xxxxxx7713 27 Wells Fargo Bank Steven Cain and Gina Champion xxxxx0198 Cain 12 13 14 15 16 17 18 19 20 21 22 23 24 28 8 3:19-cv-01628-H-BLM 1 BANK NAME ACCOUNT NAME ACCOUNT NO. 2 Wells Fargo Bank Tenth & J, LLC xxxxxx3346 3 Wells Fargo Bank Tenth and J, LP xxxxxx3353 4 Wells Fargo Bank The Fireside By the Patio, LP xxxxxx2286 5 Wells Fargo Bank The Foundation LP xxxxxx1801 6 Wells Fargo Bank The Patio Express, LP xxxxxx6988 7 Wells Fargo Bank The Patio In Petaluma, LP xxxxxx7088 8 Wells Fargo Bank The Patio Marketplace, LP xxxxxx6452 9 Wells Fargo Bank The Patio On Lamont, LP xxxxxx1991 10 Wells Fargo Bank The Surf Life, LP xxxxxx6184 Wells Fargo Bank The Swell Coffee Roasting Co., xxxxxx7374 LLC Wells Fargo Bank The Gina Champion-Revocable Xxxxxx1109 Trust 11 12 13 14 15 16 17 18 Chicago Title ANI Development, LLC Insurance Company XXXX2122 Chicago Title Real Property Escrow Account Insurance Company XXX397 Chicago Title Real Property Escrow Account Insurance Company XXXX71A 19 20 The account XXXX0198, held jointly in the name of Steven Cain and Gina 21 Champion-Cain at Wells Fargo, and funded in part by Steven Cain’s separate salary, shall 22 be excepted from the freeze on all monies and assets, in only the following respect: 23 • If, as anticipated, Steven Cain’s employer, Pacific Pulp Molding, Inc. 24 transfers $8,629.85 in monthly wages on August 31, 2019 to the Wells Fargo 25 account ended XXXX0198 (“August Wages”), the August Wages shall not 26 be frozen, and may, upon approval by the permanent receiver, be used to pay 27 these four limited expenses: 28 o Outstanding check number 6290 in the amount of $600; 9 3:19-cv-01628-H-BLM 1 VII. 2 IT IS FURTHER ORDERED that Defendants Champion-Cain and ANI 3 Development and Relief Defendant American National Investments, within ten days of the 4 issuance of this Order, shall prepare and deliver to the SEC a detailed and complete 5 schedule of all of their personal assets, including all real and personal property exceeding 6 $5,000 in value, and all bank, securities, and other accounts identified by institution, branch 7 address and account number. The accounting shall include a description of the sources of 8 all such assets. Such accounting shall be filed with the Court and a copy shall be delivered 9 to the SEC to the attention of Kathryn C. Wanner, counsel for the SEC. After completion 10 of the accounting, each of the Defendants and Relief Defendant shall produce to the SEC 11 at a time agreeable to the SEC, all books, records and other documents supporting or 12 underlying their accounting. 13 VIII. 14 IT IS FURTHER ORDERED that any person who receives actual notice of this 15 Order by personal service or otherwise, and who holds, possesses or controls assets 16 exceeding $5,000 for the account or benefit of any one of the Defendants or Relief 17 Defendant, shall within 5 days of receiving actual notice of this Order provide counsel for 18 the SEC with a written statement identifying all such assets, the value of such assets, or 19 best approximation thereof, and any account numbers or account names in which the assets 20 are held. 21 IX. 22 IT IS FURTHER ORDERED that, except as otherwise ordered by this Court, each 23 of the Defendants Champion-Cain and ANI Development, and Relief Defendant American 24 National Investments, and their officers, agents, servants, employees, attorneys, 25 subsidiaries and affiliates, and those persons in active concert or participation with any of 26 them, who receive actual notice of this Order, by personal service or otherwise, and each 27 of them, be and hereby are preliminarily restrained and enjoined from, directly or 28 indirectly: destroying, mutilating, concealing, transferring, altering, or otherwise disposing 13 3:19-cv-01628-H-BLM 1 of, in any manner, any documents, which includes all books, records, computer programs, 2 computer files, computer printouts, contracts, emails, correspondence, memoranda, 3 brochures, or any other documents of any kind in their possession, custody or control, 4 however created, produced, or stored (manually, mechanically, electronically, or 5 otherwise), pertaining in any manner to Defendants Champion-Cain and ANI Development 6 and Relief Defendant American National Investments. 7 X. 8 IT IS FURTHER ORDERED that Krista L. Freitag is appointed as permanent 9 receiver of Defendant ANI Development and Relief Defendant American National 10 Investments and their subsidiaries and affiliates (including but not limited to those 11 subsidiaries and affiliates identified above in Section IV), with full powers of an equity 12 receiver, including, but not limited to, full power over all funds, assets, collateral, premises 13 (whether owned, leased, occupied, or otherwise controlled), choses in action, books, 14 records, papers and other property belonging to, being managed by or in the possession of 15 or control of Defendant ANI Development and Relief Defendant American National 16 Investments and their subsidiaries and affiliates, and that such receiver is immediately 17 authorized, empowered and directed: 18 A. to have access to and to collect and take custody, control, possession, and 19 charge of all funds, assets, collateral, premises (whether owned, leased, 20 pledged as collateral, occupied, or otherwise controlled), choses in action, 21 books, records, papers and other real or personal property, wherever located, 22 of or managed by Defendant ANI Development and Relief Defendant 23 American National Investments and their subsidiaries and affiliates 24 (collectively, the “Assets”), with full power to sue, foreclose, marshal, collect, 25 receive, and take into possession all such Assets (including access to and 26 taking custody, control, and possession of all such Assets); 27 28 B. to assume full control of Defendant ANI Development and Relief Defendant American National Investments by removing, as the receiver deems necessary 14 3:19-cv-01628-H-BLM 1 or advisable, any director, officer, attorney, independent contractor, 2 employee, or agent of any of Defendant ANI Development and Relief 3 Defendant American National Investments and their subsidiaries and 4 affiliates, including any named Defendant, from control of, management of, 5 or participation in, the affairs of Defendant ANI Development and Relief 6 Defendant American National Investments; 7 C. to have control of, and to be added as the sole authorized signatory for, all 8 accounts of the entities in receivership, including all accounts at any bank, 9 title company, escrow agent, financial institution or brokerage firm (including 10 any futures commission merchant) which has possession, custody or control 11 of any Assets, or which maintains accounts over which Defendant ANI 12 Development and Relief Defendant American National Investments, and their 13 subsidiaries and affiliates, and/or any of its employees or agents have 14 signatory authority; 15 D. to conduct such investigation and discovery as may be necessary to locate and 16 account for all of the assets of or managed by Defendant ANI Development 17 and Relief Defendant American National Investments and their subsidiaries 18 and affiliates, and to engage and employ attorneys, accountants and other 19 persons to assist in such investigation and discovery; 20 E. 21 22 to take such action as is necessary and appropriate to preserve and take control of and to prevent the dissipation, concealment, or disposition of any Assets; F. to choose, engage, and employ attorneys, accountants, appraisers, and other 23 independent contractors and technical specialists, as the receiver deems 24 advisable or necessary in the performance of duties and responsibilities under 25 the authority granted by this Order, including but not limited to, the law firm 26 in which the receiver is a partner; 27 28 G. to make an accounting, as soon as practicable, to this Court and the SEC of the assets and financial condition of Defendant ANI Development and Relief 15 3:19-cv-01628-H-BLM 1 Defendant American National Investments and to file the accounting with the 2 Court and deliver copies thereof to all parties; 3 H. to make such payments and disbursements from the Assets taken into custody, 4 control, and possession or thereafter received by him or her, and to incur, or 5 authorize the making of, such agreements as may be necessary and advisable 6 in discharging her duties as permanent receiver; 7 I. to investigate and, where appropriate, to institute, pursue, and prosecute all 8 claims and causes of action of whatever kind and nature that may now or 9 hereafter exist as a result of the activities of present or past employees or 10 agents of Defendant ANI Development and Relief Defendant American 11 National Investments, and their subsidiaries and affiliates 12 J. to institute, compromise, adjust, appear in, intervene in, or become party to 13 such actions or proceedings in state, federal, or foreign courts, which (i) the 14 receiver deems necessary and advisable to preserve or recover any Assets, or 15 (ii) the receiver deems necessary and advisable to carry out the receiver’s 16 mandate under this Order; and 17 K. to have access to and monitor all mail, electronic mail, and video phone of the 18 entities in receivership in order to review such mail, electronic mail, and video 19 phone which he or she deems relates to their business and the discharging of 20 her duties as permanent receiver. 21 XI. 22 IT IS FURTHER ORDERED that Defendant ANI Development and Relief 23 Defendant American National Investments and their subsidiaries and affiliates, including 24 all of the other entities in receivership, and their officers, agents, servants, employees and 25 attorneys, and any other persons who are in custody, possession or control of any assets, 26 collateral, books, records, papers or other property of or managed by any of the entities in 27 receivership, shall forthwith give access to and control of such property to the permanent 28 receiver. 16 3:19-cv-01628-H-BLM 1 XII. 2 IT IS FURTHER ORDERED that no officer, agent, servant, employee or attorney 3 of Defendant ANI Development or Relief Defendant American National Investments shall 4 take any action or purport to take any action, in the name of or on behalf of Defendant ANI 5 Development or Relief Defendant American National Investments without the written 6 consent of the permanent receiver or order of this Court. 7 XIII. 8 IT IS FURTHER ORDERED that, except by leave of this Court, during the 9 pendency of this receivership, all clients, investors, trust beneficiaries, note holders, 10 creditors, claimants, lessors and all other persons or entities seeking relief of any kind, in 11 law or in equity, from Defendant ANI Development and Relief Defendant American 12 National Investments, or their subsidiaries or affiliates (including, but not limited to those 13 subsidiaries and affiliates identified above in Section IV), and all persons acting on behalf 14 of any such investor, trust beneficiary, note holder, creditor, claimant, lessor, consultant 15 group or other person, including sheriffs, marshals, servants, agents, employees and 16 attorneys, are hereby restrained and enjoined from, directly or indirectly, with respect to 17 these persons and entities: 18 A. commencing, prosecuting, continuing or enforcing any suit or proceeding 19 (other than the present action by the SEC or any other action by the 20 government) against any of them; 21 B. using self-help or executing or issuing or causing the execution or issuance of 22 any court attachment, subpoena, replevin, execution or other process for the 23 purpose of impounding or taking possession of or interfering with or creating 24 or enforcing a lien upon any property or property interests owned by or in the 25 possession of Defendant ANI Development and Relief Defendant American 26 National Investments; and 27 28 C. doing any act or thing whatsoever to interfere with taking control, possession or management by the permanent receiver appointed hereunder of the 17 3:19-cv-01628-H-BLM 1 property and assets owned, controlled or managed by or in the possession of 2 Defendant ANI Development and Relief Defendant American National 3 Investments, or in any way to interfere with or harass the permanent receiver 4 or her attorneys, accountants, employees, or agents or to interfere in any 5 manner with the discharge of the permanent receiver’s duties and 6 responsibilities hereunder. 7 XIV. 8 IT IS FURTHER ORDERED that Defendant Gina Champion-Cain and ANI 9 Development and Relief Defendant American National Investments, and their subsidiaries, 10 affiliates, officers, agents, servants, employees and attorneys, shall cooperate with and 11 assist the permanent receiver and shall take no action, directly or indirectly, to hinder, 12 obstruct, or otherwise interfere with the permanent receiver or her attorneys, accountants, 13 employees or agents, in the conduct of the permanent receiver’s duties or to interfere in 14 any manner, directly or indirectly, with the custody, possession, management, or control 15 by the permanent receiver of the funds, assets, collateral, premises, and choses in action 16 described above. 17 XV. 18 IT IS FURTHER ORDERED that Defendant ANI Development and Relief 19 Defendant American National Investments, and their subsidiaries and affiliates, shall pay 20 the costs, fees and expenses of the permanent receiver incurred in connection with the 21 performance of her duties described in this Order, including the costs and expenses of those 22 persons who may be engaged or employed by the permanent receiver to assist him or her 23 in carrying out her duties and obligations. All applications for costs, fees, and expenses 24 for services rendered in connection with the receivership other than routine and necessary 25 business expenses in conducting the receivership, such as salaries, rent, and any and all 26 other reasonable operating expenses, shall be made by application setting forth in 27 reasonable detail the nature of the services and shall be heard by the Court. 28 18 3:19-cv-01628-H-BLM 1 XVI. 2 IT IS FURTHER ORDERED that no bond shall be required in connection with 3 the appointment of the permanent receiver. Except for an act of gross negligence, the 4 permanent receiver shall not be liable for any loss or damage incurred by any of the 5 defendants, their officers, agents, servants, employees and attorneys or any other person, 6 by reason of any act performed or omitted to be performed by the permanent receiver in 7 connection with the discharge of her duties and responsibilities. 8 XVII. 9 IT IS FURTHER ORDERED that representatives of the SEC and any other 10 government agency are authorized to have continuing access to inspect or copy any or all 11 of the corporate books and records and other documents of Defendant ANI Development 12 and Relief Defendant American National Investments, and the other entities in 13 receivership, and continuing access to inspect their funds, property, assets and collateral, 14 wherever located. 15 16 17 18 XVIII. IT IS FURTHER ORDERED that the parties may take discovery using third-party subpoenas issued pursuant to the Federal Rules of Civil Procedure. XIX. 19 IT IS FURTHER ORDERED that this Court shall retain jurisdiction over this 20 action for the purpose of implementing and carrying out the terms of all orders and decrees 21 which may be entered herein and to entertain any suitable application or motion for 22 additional relief within the jurisdiction of this Court. 23 24 25 26 27 28 19 3:19-cv-01628-H-BLM 1 XX. 2 IT IS FURTHER ORDERED that a status conference concerning the receivership, 3 is set for October 7, 2019 at 10:30 a.m. absent further notice from the parties who may 4 submit a joint motion to change the date of the status conference. 5 6 7 8 9 IT IS SO ORDERED. DATED: September 3, 2019 MARILYN L. HUFF, District Judge UNITED STATES DISTRICT COURT 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 3:19-cv-01628-H-BLM

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