Securities and Exchange Commission v. Standford International Bank, Ltd. et al

Filing 1

SECOND AMENDED ORDER APPOINTING RECEIVER. Signed by David C. Godbey, United States District Judge, July 19, 2010. (Attachments: # 1 Summary, # 2 Preliminary Injunction and Other Equitable Relief as to R. Allen Stanford, # 3 Agreed Preliminary Injunction as to Stanford International Bank, LTD, Stanford Group Company and Stanford Capital Management, LLC and Agreed Order Granting Other Equitable Relief, # 4 Preliminary Injunction and Other Equitable Relief as to James M. Davis, # 5 Agreed Preliminary Injunction as to Laura Pendergest-Holt and Agreed Order Granting Other Equitable Relief)(lw)

S e c u r i t i e s and Exchange Commission v. Standford International Bank, Ltd. et al

D o c . 1 Att. 3

B0 Case 3:09-cv-00298-N Document

Filed

IN THE UNITEI} STATESDISIRICT TIORTHE NORTIIERN DISTRICT OF DALLAS I'IVISION
SECTJRITIES A-I\IDEXCEA-hIGE COMII{ISSION, Plaintifi,

STA}IIORI} INTERNATIONAL BANK LTD., STANFORIT GROUPCOMPANY, STANFORIT CAPTTALhIANAGEMENT, LLC, R ALLEN STANFOAI),JAJIIESM. DAYIS, end LATJRAPENDERGEST-HOLT
Dofendmts.

$ $ $ $ $ $

No.: 3:09-cv-0298-N Cass

AGREEI} PRTLIMINARY INJUNCTION AS TO STANAORI} INTERNATIONAL $ANK LTD,, STANTORI}GROUFCOMPA-I{Y ANn sTAI{FoRIr CAPITAL MANAGEMEFTT, LLC AI{I}AGRSEI} ORI}EN.GRAIMT{G OTHER EOIMABLE RELIEF

of /t JtrLlUh,,,2009,on the application Plaintiff Socuritios Exc,haogo of and for Comnrission
issuancc of t proliminary injrmction against Dofeodants StsDford Intcrnationel Baflh Ltd., Stanford Gmup Compeny arrd Stanford Cryitel Managannt, IJ,C C'Entity Defrdanh'), snd an order for othcr equteble relief aggif,st cach of them. This Court har prwiorsly i*ued a temporary rostrainingorder, o,rdcrfrcczing assen,order rcquiring an acircuating,ordrr requiring pre*rvation of duiumcnb, ords authoriring expcditeddiscovery,md ord* ap'pointingreceiver, DsfendanB havo agrccd to the cnky of this fureed Prcliminary Injurrction and Agreed Ordw Gruting Other Equitable Relief ('Prcliminary Injrmction-J, without adrdtting or denying tlre allegations oontained iu the Commission's Cornpleint; have agreed tfurt this Court hat

lAt

{-l Unitcd States Dictict Judge, thits{day .This mattercameboformc, tho undcrsignod

juriodictover and ionthern eubjmr orrhis maner t8nirru$Fi"..,#"f"iHfffi$:fllHfilu
the enfiy of findingq of faot and conclusionsof laqpn file in my offic on

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By
Dockets.Justia.com

DocumentS0 Filed03/072009 Page2 of 6 Case3;09-cv-0029&N

I. IT XS HEREFY ORDBRID that thc Entity Defcfldarts fid thch s8nt8' servarts' employeca,ettomeys, and all other pemonsin activs concert or participttion with thent who receive actual notice of this Preliminary lrjurrction by pe'rsonal sef,vice or otherwite erc rEttdined and arjoined from violating Section I{a) of the SecuriticsAct [15 U.S.C. $ 77q(a)' directly or indirertly, in the offcr or selc of any eecurityby thc usc of any mems or inst meflts of tarsportetion or corrmunication in intctstatc commcrceor by the useof the maile,by: (1) (2) or enploying any device,sctremqor utifico lo clefraud; obtaining monoy or Prqerty by meenr of uly uffruE stfltflnent of matrrial fact or any omissio,nt0 statc a maferial fast nocoseary oFderto makc tho statamen(s) in madc,fu tha tight of ths cirrumstrncesundc,r which thry weremsde,flot misleading; or (3) eflgrging in any fantactioI1 prflctice,or courscofbusinsswldch operrates vould or opcdttcaBs fratrdor deceitupm tbepwthlsfi.
II.

m IS HEREBY ORDERSD ttrat tho Entity DEfEDddnts and their sgert8, dervfirls, unployees, attomsyB,and all othcr pusons in activc conccrt or puticipafio,n with thm who recsive Eotual noticc of this Preliminary Injunotion by permnal ssvice or otherwitc are reshained and cnjoincd from violating SecEon l0(b) of the Exchmge Act or Rule 10b-5 [5 U.S.C. $ 78jO) and 17 C,F.R, $ 24O.10b-51, dircotly u indirrcfly, in oonnection with the purchase or aaleof any secruity,by makilg usgglranymoansor inehumenrtality interotate oorflmsrce, of or Of the mails, m of any facility ofarry natiural seouritiee oxcharrge: (1) to ute or ernployany manipulativoor doceptivodoviooor co,ntrivance in

SECv- Stanfod In@ndllodsl Bdnh ltd., et El. Prcliminary Injuction and Ordo Gnnting Ofter Rrlief

Gase3:09-cv-0O298-N DocumentE0

Filed 0310212009 Page 3 of6

cotrhavertrlion thc nrles andregulationspromulgrted by the Commissiofl; of (2) (3) to errploy my dovicq schanc, or artifice to deAaud; to fi"akc anyuntruooffintnt of a matcrial faot or ofrit to ststoa maftrial fact

noccssaryin trdtr to mske thc statffnent madc, in tbe ligfrt of the circpmsurrces underwhich they weremade,not mieleadiag; or (4) to cngsgein my act,practice,or mune of buginees which oprf,atss would oprflte or asa frard or deceitupon&yperson. ffi. IT IS HEREBY ORDFRED thar Dcfcndaats Sttuford Group Company and Stsnford Capital Managcnnen!LLC, thoir agerrts, fruants, anployees, ettoflroyE, and all olhrr peamone in aotiveco,ncert participatimrwith thtm who rcceivs sotuulnotice of this Preliminary Injunction or by pttsonal sffr"ios or olhtrwissars reshainedand cnjoined from violating Secioru ZffiI) and

206(2) of the AdvisersAct [I5 U.S.C. $$ 80H(1), (2)], directly or indircctlg by useof the maits or any metns or inenumentalily of interstatecomrheroo, by tl) employing any device, rchenc, or artifioo to defiaud cuy clicnt or pmspective client; or (2) engagingin any tdf,Btctiofl, praotioe,or couras of budness which oporatesas a faud or deceit upon ony client or p,rnspoctive olient. ff. IT IS HER-EBY ORDERED that Stanfrold krternationfllBlnlq Ltd- asd Shnfod Group Company,thcit offior.ts, directors, sgents,Bervaflts, employoos,aftorneys,add rll ofhor porsons in aotive ooncerrt pa,nicipetionwith thern, ars re.s|rrifled arrd enjoinod or from violeting Settion 7{d) of t}rcInvcsAneutCornpany [15 U.S.C. $80a-7(d), directly Act
MC v. SWord Inrenarimal Ban\ I^tu|.,ef al. Prclininary Iujurction ad Order Granting OtlE{ Relicf

3

80 Case3:09-cv-0029FN Document

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or indireatly, by usc ofthe mails or any mean$or inskurreutelity of intt'tstatc cormrcrce' bv: (l) acting as an invcstmerrt cofirpffiy, not organized or otherwise clffted under thc laws of the United Statesor of a State, aud offmi-ng for salo, sclling or delivering after shle, in connsction with a publio offering any secmity of which suchcompanyis the issuer; or

(?)

6pting aB a dpositor ot trustee of, or rmdef,rffitctrfor such a od pany; unlose

(3)

the Commisdon" upor applioation by the invmtment cortrpary not organizedc otherwisecltated urder tho laws of the Unitcd Statesor of n State,issuesa conditional or urconrlitional ordor pafritting duchcorupdny to registcr and to md<o a public offeing of ie securitics by uee of thc mails andmesre or inetrumentalities ints|stste coflrmorce. of V,

IT LSIIEREBy ORDERED that all banks, savirgs rlld loan asrooirtionr, savingr buik8, trust cofipattioE, Fecuiities brokerdeelar, commoditios deelf,s,hvestnetrt cornpairiea othu financial or depositoryinetitutioru; ffid if,vestrflentooffiparrierthat hold olc or ulor dcrountsm tlrc narne,sn belnlf or ftr the bercfit of the Efitity Deffidents who receive acturl noticc of this Freliminnry Irtjtmction by pereonelsenricc or othetwige are hercby rcuaincd ald enjoincd" rn regfld to rny such acoount, from engagingin any trnsaotion iu scrwitier (oroeprtliquidating t-dnssctiongnecesssry oomply with a court ords) m auy disbrrscrrnernt funds or scflritiee to of pendingfurther ordu of this Corut.

SECv. Stgpnford lnte ational Bdth Ltd., et al. Prclirninrry Injrmctim $rd Orilcr C-rrflrting Ott!f, Relief

Case3:09-cv-0029&NDocumentS0 Filed03/0?2009 Pege5 of 6

u.
pubreru,trips, IT IS HEREHYORDERED all othtr mdividuals, that colporatiorn, Iimited liability companies, olher artificiat entitieswho rrcoiw achul notioeof this kclimiaary and Injunctionby perconel scnriceor otlrerwiee herrbyroslrained edoinedfrom diebursing uc and any ftnds, $curitie6, otherpmpeftyobtained o'r from the Entiry neferrdants witlout adequate oonsidetation.

v[
IT IS HEREBY ORDBRED that my crrryloyeeo{, nnomoy for, atd all otha pcrsoru in aotive conc{f,tor participation with fte Eiltity Dcfdrdatrts, includitrg any bank, seouritiosbrakdrdoaler, or any financial or depositary inetitutio4 who recoiveesctual lotiae of this Prclifiinary Injmction by pcruonalsrvioeor othemrigesre hrreby restehed and enjoined fiolfl dsEoyitrg, removing mutilating, altcrring, conceeling or disposing of, in any msnnff, any books ard record.e owned by, or pertainizg to, thc financial hursactiono and assotE Defurdanrs or any of entitics undertheir oonfol.

SECv. Star{ord [nternqtionll Bffit, Ltd, BraL Prclinin$ry l{jufftion and Ordor Grmting Otter Bclief

80 Case3;0+cv-0029&N Document

Filed03/02/2009 Page6 of 6

vn.
TheEntity Defendflnts havosixty (60)daysfro'mths datoof this Prcliminary shall lrjunction in whichto sncwrr Conmission's the Complaint.

A ^ o f ,oo,
Agrcrd to Forru s/ Dwidf,. Ruce David B. Reece Socuriticsand ExchangcCommission 801 Cherry Street,19" Floor Fort Worth, Texas76102 ( 8 r 7 ) 978-64?6

EXECUTED Er\ilERED AND ,rfrt'd"*

rrylpn csr thi"Ao"v

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UMTBD

DISTRICT

reeced(Dsec. sov Cowtsel Plaintif Securities and Exthange Commission for s/ Raloh k fanvet Ralph R. Iaf,very Krage & Janvy 2100 RoeeAvenue,Suite 2600 D a l l a s ,Texas75201 [e-mail] Receivefor the EntityDeJendantt r

(8171n8a92fax 7

SECv. Smaford Intmutlonal Banh ltrl., ct sl. Pteliminary Crrantiry OtherRelief \irnctioa md Orrder