Securities and Exchange Commission v. Elite Advisors Sports Management, Inc. et al

Filing 21

MINUTE ORDER IN CHAMBERS by Judge Percy Anderson: The SEC's request 1 for an order requiring compliance with its subpoenas is granted. Respondents shall comply with the subpoenas, which are attached hereto as Exhibits 1-3. Respondents are to produce corporate documents and player contracts no later than May 1, 2015 and all remaining responsive documents no later than May 18, 2015. FAILURE TO COMPLY WITH THIS COURT'S ORDER MAY SUBJECT RESPONDENTS TO CONTEMPT PROCEEDINGS, WITH POSSIBLE PENALTIES INCLUDING MONETARY SANCTIONS AND/OR IMPRISONMENT. See document for details. (smo)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

CV 14-9690 PA (RZx)

Title

Securities & Exchange Comm’n v. Elite Advisors Sports Management, Inc., et al.

Present: The
Honorable

Date

April 27, 2015

PERCY ANDERSON, UNITED STATES DISTRICT JUDGE

Stephen Montes Kerr

Leandra Amber

Deputy Clerk

Court Reporter

Tape No.

Attorneys Present for Petitioner:

Attorneys Present for Respondents:

Amy J. Longo
Melissa A. Buckhalter-Honore

Dmitry Y. Gurovich

Proceedings:

IN CHAMBERS - COURT ORDER

The Securities and Exchange Commission (“SEC”) seeks an order compelling respondents Elite
Advisors Sports Management, Inc. (“Elite”) and Frank Robledo (“Robledo”) (collectively
“Respondents”) to comply with administrative subpoenas. The SEC issued subpoenas to Robledo on
July 9, 2014 (served on July 28, 2014) and to Robledo and Elite on October 15, 2014 (served on October
16, 2014) as part of an investigation into possible violations of Sections 5(a) and 17(a) of the Securities
Act of 1933 and Sections 10(b) and 15(a) of the Exchange Act of 1934 and Rule 10b-5 thereunder.
(Docket No. 1.) The SEC alleges that Elite represents professional athletes and that Robledo is Elite’s
Chairman and President. The SEC is investigating whether Respondents violated the federal securities
laws through the fraudulent offer and sale of unregistered securities. (Docket No. 1-1 at 7.)
On February 26, 2015, this Court issued an order to show cause why an order compelling
compliance with the administrative subpoenas should not be issued. (Docket No. 14.) Respondents
were ordered to respond no later than March 23, 2015. They did not do so. The Court’s order also
provided that the parties would be heard on April 6, 2015 at 1:30 p.m. Respondents appeared and
volunteered to produce documents to the SEC no later than April 10, 2015. They did not do so. The
hearing was continued to April 27, 2015. Respondents appeared again and, through counsel, indicated
that they would produce corporate documents and player contracts no later than May 1, 2015 and that
they would produce all remaining responsive documents no later than May 18, 2015.
Judicial enforcement of an administrative subpoena is warranted “if the inquiry is within the
authority of the agency, the demand is not too indefinite and the information sought is reasonably
relevant.” See United States v. Morton Salt Co., 338 U.S. 632, 652, 70 S. Ct. 357, 369, 94 L. Ed. 401
(1950). The Court’s inquiry is limited to “(1) whether Congress has granted the authority to investigate;
(2) whether procedural requirements have been followed; and (3) whether the evidence is relevant and
material to the investigation.” FDIC v. Garner, 126 F.3d 1138, 1142 (9th Cir. 1997) (citing EEOC v.
Children’s Hosp. Med. Ctr. of N. Cal., 719, F. 2d 1426, 1428 (9th Cir. 1983) (en banc)). All three
requirements are satisfied here.

CV-90 (06/04)

CIVIL MINUTES - GENERAL

Page 1 of 2

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

CV 14-9690 PA (RZx)

Date

April 27, 2015

Title

Securities & Exchange Comm’n v. Elite Advisors Sports Management, Inc., et al.

First, Congress has authorized the SEC to investigate possible violations of the federal securities
laws. See SEC v. Jerry T. O’Brien, Inc., 467 U.S. 735, 741 (1984) (“Congress has vested the SEC with
broad authority to conduct investigations into possible violations of the federal securities laws and to
demand production of evidence relevant to such investigations.”); 15 U.S.C. §§ 77s(c), 78u(b).
Second, the relevant procedural requirements have been satisfied. The SEC authorized the
instant investigation by issuing a Formal Order on June 26, 2014. See Declaration of Melissa A.
Buckhalter-Honore (“Buckhalter Decl.”) ¶4, Ex. 1. The subpoenas were issued by an SEC attorney
who was designated an officer of the agency for purposes of this investigation. See 15 U.S.C. § 77s(c);
15 U.S.C. § 78u(b); Buckhalter Decl. ¶ 4, Exs. 1, 2, 16, 17. The subpoenas were properly served by
United Parcel Service. See 17 C.F.R. §§ 201.150, 201.232(c).
Third, the evidence sought in the administrative subpoenas is relevant and material to the
investigation. A court “must enforce administrative subpoenas unless the evidence sought by the
subpoena [is] plainly incompetent or irrelevant to any lawful purpose of the agency.” EEOC v. Karuk
Housing Auth., 260 F.3d 1071, 1076 (9th Cir. 2001) (quotation and citations omitted); see also SEC v.
Brigadoon Scotch Distributing Co., 480 F. 2d 1047, 1055 (2d Cir. 1973). Here, the SEC’s subpoenas
relate to business records and personal background information. None of the materials or information
sought are “plainly incompetent or irrelevant” to the SEC’s investigation.
When an agency has shown that the above requirements have been met, “the subpoena should be
enforced unless the party being investigated proves the inquiry is unreasonable because it is overbroad
or unduly burdensome.” Children’s Hosp., 719 F.2d at 1428 (citing Oklahoma Press Publ’g Co. v.
Walling, 327 U.S. 186, 217, 66 S. Ct. 494, 510, 90 L. Ed. 614 (1946)). Respondents have made no such
showing.
The SEC’s request for an order requiring compliance with its subpoenas is granted. Respondents
shall comply with the subpoenas, which are attached hereto as Exhibits 1-3. Respondents are to produce
corporate documents and player contracts no later than May 1, 2015 and all remaining responsive
documents no later than May 18, 2015.
FAILURE TO COMPLY WITH THIS COURT’S ORDER MAY SUBJECT RESPONDENTS
TO CONTEMPT PROCEEDINGS, WITH POSSIBLE PENALTIES INCLUDING MONETARY
SANCTIONS AND/OR IMPRISONMENT.
IT IS SO ORDERED.
cc: Francisco S. Robledo (via regular U.S. mail)
Dmitry Y. Gurovich (via email at [e-mail]

CV-90 (06/04)

CIVIL MINUTES - GENERAL

Page 2 of 2

EXHIBIT 1

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 5 of 74 Page ID #:34

Exhibit 2 Page 11

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 6 of 74 Page ID #:35

Exhibit 2 Page 12

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 7 of 74 Page ID #:36

Exhibit 2 Page 13

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 8 of 74 Page ID #:37

Exhibit 2 Page 14

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 9 of 74 Page ID #:38

Exhibit 2 Page 15

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 10 of 74 Page ID #:39

Exhibit 2 Page 16

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 11 of 74 Page ID #:40

Exhibit 2 Page 17

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 12 of 74 Page ID #:41

Exhibit 2 Page 18

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 13 of 74 Page ID #:42

Exhibit 2 Page 19

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 14 of 74 Page ID #:43

Exhibit 2 Page 20

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 15 of 74 Page ID #:44

Exhibit 2 Page 21

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 16 of 74 Page ID #:45

Exhibit 2 Page 22

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 17 of 74 Page ID #:46

Exhibit 2 Page 23

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 18 of 74 Page ID #:47

Exhibit 2 Page 24

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 19 of 74 Page ID #:48

Exhibit 2 Page 25

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 20 of 74 Page ID #:49

Exhibit 2 Page 26

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 21 of 74 Page ID #:50

Exhibit 2 Page 27

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 22 of 74 Page ID #:51

Exhibit 2 Page 28

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 23 of 74 Page ID #:52

Exhibit 2 Page 29

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 24 of 74 Page ID #:53

Exhibit 2 Page 30

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 25 of 74 Page ID #:54

Exhibit 2 Page 31

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 26 of 74 Page ID #:55

Exhibit 2 Page 32

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 27 of 74 Page ID #:56

Exhibit 2 Page 33

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 28 of 74 Page ID #:57

Exhibit 2 Page 34

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 29 of 74 Page ID #:58

Exhibit 2 Page 35

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 30 of 74 Page ID #:59

Exhibit 2 Page 36

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 31 of 74 Page ID #:60

Exhibit 2 Page 37

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 32 of 74 Page ID #:61

Exhibit 2 Page 38

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 33 of 74 Page ID #:62

Exhibit 2 Page 39

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 34 of 74 Page ID #:63

Exhibit 2 Page 40

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 35 of 74 Page ID #:64

Exhibit 2 Page 41

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 36 of 74 Page ID #:65

Exhibit 2 Page 42

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 37 of 74 Page ID #:66

Exhibit 2 Page 43

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 38 of 74 Page ID #:67

Exhibit 2 Page 44

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 39 of 74 Page ID #:68

Exhibit 2 Page 45

Case 2:14-cv-09690-PA-RZ Document 1-3 Filed 12/18/14 Page 40 of 74 Page ID #:69

Exhibit 2 Page 46

EXHIBIT 2

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 2 of 60 Page ID #:140

Exhibit 16 Page 103

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 3 of 60 Page ID #:141

Exhibit 16 Page 104

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 4 of 60 Page ID #:142

Exhibit 16 Page 105

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 5 of 60 Page ID #:143

Exhibit 16 Page 106

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 6 of 60 Page ID #:144

Exhibit 16 Page 107

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 7 of 60 Page ID #:145

Exhibit 16 Page 108

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 8 of 60 Page ID #:146

Exhibit 16 Page 109

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 9 of 60 Page ID #:147

Exhibit 16 Page 110

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 10 of 60 Page ID #:148

Exhibit 16 Page 111

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 11 of 60 Page ID #:149

Exhibit 16 Page 112

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 12 of 60 Page ID #:150

Exhibit 16 Page 113

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 13 of 60 Page ID #:151

Exhibit 16 Page 114

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 14 of 60 Page ID #:152

Exhibit 16 Page 115

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 15 of 60 Page ID #:153

Exhibit 16 Page 116

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 16 of 60 Page ID #:154

Exhibit 16 Page 117

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 17 of 60 Page ID #:155

Exhibit 16 Page 118

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 18 of 60 Page ID #:156

Exhibit 16 Page 119

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 19 of 60 Page ID #:157

Exhibit 16 Page 120

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 20 of 60 Page ID #:158

Exhibit 16 Page 121

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 21 of 60 Page ID #:159

Exhibit 16 Page 122

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 22 of 60 Page ID #:160

Exhibit 16 Page 123

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 23 of 60 Page ID #:161

Exhibit 16 Page 124

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 24 of 60 Page ID #:162

Exhibit 16 Page 125

EXHIBIT 3

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 26 of 60 Page ID #:164

Exhibit 17 Page 126

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 27 of 60 Page ID #:165

Exhibit 17 Page 127

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 28 of 60 Page ID #:166

Exhibit 17 Page 128

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 29 of 60 Page ID #:167

Exhibit 17 Page 129

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 30 of 60 Page ID #:168

Exhibit 17 Page 130

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 31 of 60 Page ID #:169

Exhibit 17 Page 131

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 32 of 60 Page ID #:170

Exhibit 17 Page 132

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 33 of 60 Page ID #:171

Exhibit 17 Page 133

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 34 of 60 Page ID #:172

Exhibit 17 Page 134

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 35 of 60 Page ID #:173

Exhibit 17 Page 135

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 36 of 60 Page ID #:174

Exhibit 17 Page 136

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 37 of 60 Page ID #:175

Exhibit 17 Page 137

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 38 of 60 Page ID #:176

Exhibit 17 Page 138

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 39 of 60 Page ID #:177

Exhibit 17 Page 139

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 40 of 60 Page ID #:178

Exhibit 17 Page 140

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 41 of 60 Page ID #:179

Exhibit 17 Page 141

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 42 of 60 Page ID #:180

Exhibit 17 Page 142

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 43 of 60 Page ID #:181

Exhibit 17 Page 143

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 44 of 60 Page ID #:182

Exhibit 17 Page 144

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 45 of 60 Page ID #:183

Exhibit 17 Page 145

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 46 of 60 Page ID #:184

Exhibit 17 Page 146

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 47 of 60 Page ID #:185

Exhibit 17 Page 147

Case 2:14-cv-09690-PA-RZ Document 1-5 Filed 12/18/14 Page 48 of 60 Page ID #:186

Exhibit 17 Page 148