Securities and Exchange Commission v. Titanium Blockchain Infrastructure Services Inc. et al

Filing 48

PRELIMINARY INJUNCTION by Judge Dale S. Fischer (SEE ORDER FOR SPECIFICS) (bp)

Case 2:18-cv-04315-DSF-JPR Document 48 Filed 05/30/18 Page 1 of 16 Page ID #:1456

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,

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Plaintiff,

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vs.

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TITANIUM BLOCKCHAIN
INFRASTRUCTURE SERVICES,
INC.; EHI INTERNETWORK AND
SYSTEMS MANAGEMENT, INC.
aka EHI-INSM, INC.; and MICHAEL
ALAN STOLLERY aka MICHAEL
STOLLAIRE,

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Defendants.

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Case No. CV18-4315-DSF (JPRx)
PRELIMINARY INJUNCTION AND
ORDERS (1) FREEZING ASSETS; (2)
PROHIBITING THE DESTRUCTION
OR ALTERATION OF
DOCUMENTS; (3) GRANTING
EXPEDITED DISCOVERY; (4)
REQUIRING ACCOUNTINGS; AND
(5) APPOINTING A PERMANENT
RECEIVER

Case 2:18-cv-04315-DSF-JPR Document 48 Filed 05/30/18 Page 2 of 16 Page ID #:1457

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This matter is before the Court on the Consent of Defendants Titanium

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Blockchain Infrastructure Services, Inc. (“TBIS”), EHI Internetwork and Systems

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Management, Inc. aka EHI-INSM, Inc. (“EHI”), and Michael Alan Stollery aka

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Michael Stollaire (“Stollaire”) (collectively, “Defendants”) to the Entry of a

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Preliminary Injunction and Orders (1) Freezing Assets; (2) Prohibiting the

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Destruction or Alteration of Documents; (3) Granting Expedited Discovery; (4)

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Requiring Accountings; and (5) Appointing a Permanent Receiver.

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The Court, having previously entered a Temporary Restraining Order and
Orders (1) Freezing Assets; (2) Prohibiting the Destruction or Alteration of

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Documents; (3) Granting Expedited Discovery; (4) Requiring Accountings; and (5)

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Appointing a Temporary Receiver; and Order to Show Cause Re Preliminary

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Injunction and Appointment of a Permanent Receiver on May 23, 2018 (“TRO”), and

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having considered the SEC’s Complaint, Application for a Temporary Restraining

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Order, the supporting Memorandum of Points and Authorities, the supporting

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declarations and exhibits, and the other evidence and argument presented to the

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Court, as well as the Defendants’ Consents, finds that:

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A.

this action.

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This Court has jurisdiction over the parties to, and the subject matter of,

B.

The Defendants have consented to the entry of a preliminary injunction
on the terms below.
I.

Good cause exists for the entry of a preliminary injunction, appointment of a
permanent receiver, and the related orders herein.
II.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that defendants

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TBIS, EHI, and Stollaire are preliminarily restrained and enjoined from violating,

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directly or indirectly, Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and

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Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or
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Case 2:18-cv-04315-DSF-JPR Document 48 Filed 05/30/18 Page 3 of 16 Page ID #:1458

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instrumentality of interstate commerce, or of the mails, or of any facility of any

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national securities exchange, in connection with the purchase or sale of any security:

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(a)

to employ any device, scheme, or artifice to defraud;

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(b)

to make any untrue statement of a material fact or to omit to state a

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material fact necessary in order to make the statements made, in the light

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of the circumstances under which they were made, not misleading; or

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(c)

to engage in any act, practice, or course of business which operates or
would operate as a fraud or deceit upon any person.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Preliminary Injunction by

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personal service or otherwise: (a) Defendants’ officers, agents, servants, employees,

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and attorneys; and (b) other persons in active concert or participation with any of the

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Defendants or with anyone described in (a).

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III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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defendants TBIS, EHI, and Stollaire are preliminarily restrained and enjoined from

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violating Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)] in the offer or sale

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of any security by the use of any means or instruments of transportation or

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communication in interstate commerce or by use of the mails, directly or indirectly:

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(a)

to employ any device, scheme, or artifice to defraud;

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(b)

to obtain money or property by means of any untrue statement of a

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material fact or any omission of a material fact necessary in order to

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make the statements made, in light of the circumstances under which

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they were made, not misleading; or

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(c)

to engage in any transaction, practice, or course of business which
operates or would operate as a fraud or deceit upon the purchaser.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as
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Case 2:18-cv-04315-DSF-JPR Document 48 Filed 05/30/18 Page 4 of 16 Page ID #:1459

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Preliminary Injunction by

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personal service or otherwise: (a) Defendants’ officers, agents, servants, employees,

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and attorneys; and (b) other persons in active concert or participation with any of the

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Defendants or with anyone described in (a).

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IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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defendants TBIS and Stollaire are preliminarily restrained and enjoined from

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violating Section 5 of the Securities Act [15 U.S.C. § 77e] by, directly or indirectly,

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in the absence of any applicable exemption:
(a)

Unless a registration statement is in effect as to a security, making use of

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any means or instruments of transportation or communication in

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interstate commerce or of the mails to sell such security through the use

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or medium of any prospectus or otherwise;

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(b)

Unless a registration statement is in effect as to a security, carrying or

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causing to be carried through the mails or in interstate commerce, by any

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means or instruments of transportation, any such security for the purpose

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of sale or for delivery after sale; or

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(c)

Making use of any means or instruments of transportation or

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communication in interstate commerce or of the mails to offer to sell or

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offer to buy through the use or medium of any prospectus or otherwise

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any security, unless a registration statement has been filed with the

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Commission as to such security, or while the registration statement is the

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subject of a refusal order or stop order or (prior to the effective date of

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the registration statement) any public proceeding or examination under

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Section 8 of the Securities Act [15 U.S.C. § 77h].

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
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Case 2:18-cv-04315-DSF-JPR Document 48 Filed 05/30/18 Page 5 of 16 Page ID #:1460

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binds the following who receive actual notice of this Preliminary Injunction by

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personal service or otherwise: (a) defendants TBIS’s and Stollaire’s officers, agents,

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servants, employees, and attorneys; and (b) other persons in active concert or

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participation with defendant TBIS or Stollaire or with anyone described in (a).

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V.

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IT IS FURTHER ORDERED that, except as otherwise ordered by this Court,

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Defendants TBIS, EHI, and Stollaire be and hereby are preliminarily restrained and

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enjoined from, directly or indirectly, transferring, assigning, selling, hypothecating,

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changing, wasting, dissipating, converting, concealing, encumbering, or otherwise

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disposing of, in any manner, any funds, securities, claims or other real or personal

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property, including any digital assets, digital currencies, virtual currencies, digital

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tokens, cryptocurrencies, digital wallets, or other tangible, intangible, or digital

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assets, wherever located, of any of the Defendants, or their subsidiaries or affiliates,

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owned by, controlled by, managed by, or in the possession or custody of any of them,

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and from transferring, encumbering, dissipating, or incurring charges or cash

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advances on any debit or credit card or the credit arrangement of any of the

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Defendants, or their subsidiaries and affiliates.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Preliminary Injunction by

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personal service or otherwise: (a) Defendants’ officers, agents, servants, employees,

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and attorneys; and (b) other persons in active concert or participation with any of the

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Defendants or with anyone described in (a).

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VI.
IT IS FURTHER ORDERED that, except as otherwise ordered by this Court,

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the asset freeze previously ordered by the TRO shall remain in place on all monies

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and assets, including all digital assets, digital currencies, virtual currencies, digital

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tokens, cryptocurrencies, digital wallets, or other tangible, intangible, and digital
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Case 2:18-cv-04315-DSF-JPR Document 48 Filed 05/30/18 Page 6 of 16 Page ID #:1461

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funds or assets, wherever located (with an allowance for necessary and reasonable

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living expenses to be granted only upon good cause shown by application to the

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Court with notice to and an opportunity for the SEC to be heard) in all accounts at

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any bank, financial institution, brokerage firm, third-payment payment processor,

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coin exchange, or any other holder or custodian of any digital assets, digital

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currencies, virtual currencies, digital tokens, cryptocurrencies, digital wallets, or other

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tangible, intangible, or digital funds or assets held in the name of, for the benefit of,

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or over which account authority is held by defendants TBIS, EHI, and/or Stollaire,

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including but not limited to the accounts listed below:

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INSTITUTION

ACCOUNT
NAME/OWNER

ACCOUNT NO.

COINBASE

MICHAEL STOLLERY
AKA MICHAEL ALAN
STOLLAIRE
TITANIUM
BLOCKCHAIN
INFRASTRUCTURE
SERVICES INC.
TITANIUM
BLOCKCHAIN
INFRASTRUCTURE
SERVICES INC.

0x98935ab01caA7a162892FdF9c6423de2
4b078a4c 
[Wallet Address]
0x1818409Ff612A6d574ca979904396bB
4B8EA6d51
[Wallet Address]

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COINBASE

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JP MORGAN CHASE

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JP MORGAN CHASE

EHI INTERNETWORK
AND SYSTEMS
MANAGEMENT, INC.

JP MORGAN CHASE

MICHAEL STOLLERY
AKA MICHAEL ALAN
STOLLAIRE
TITANIUM
BLOCKCHAIN
INFRASTRUCTURE
SERVICES INC.
EHI INTERNETWORK
AND SYSTEMS
MANAGEMENT, INC.
MICHAEL STOLLAIRE

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PayPal

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PayPal
VENMO

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227992796
262292722
4246315238001125
3628670755
4401887471
260113680
810313531
3391855136
3650970172
451956321001
4246315227389994
00000010000003706740
1570927099492929120
1761210592052010070
2129508332071253031
2262219318584224114
1567182756491297714
29607949

Case 2:18-cv-04315-DSF-JPR Document 48 Filed 05/30/18 Page 7 of 16 Page ID #:1462

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INSTITUTION

ACCOUNT
NAME/OWNER

ACCOUNT NO.

VENMO

TITANIUM
BLOCKCHAIN
INFRASTRUCTURE
SERVICES INC.
TITANIUM
BLOCKCHAIN
INFRASTRUCTURE
SERVICES INC.
MICHAEL STOLLERY
AND/OR OXANA
STOLLERY

29964336

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U.S. BANK

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WELLS FARGO
BANK

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153669396688

8323100492
8378226636
6370721463
2723755399
3418745141
68213035891998

Any bank, financial institution, brokerage firm, third-party payment processor,
or coin exchange, or any other holder or custodian of any digital assets, digital
currencies, virtual currencies, digital tokens, cryptocurrencies, or such monies or
assets described above shall hold and retain within their control and prohibit the
withdrawal, removal, transfer or other disposal of any such funds or other assets
except as otherwise ordered by this Court.
VII.
IT IS FURTHER ORDERED that, except as otherwise ordered by this Court,
each of defendants TBIS, EHI, and Stollaire be and hereby are preliminarily restrained
and enjoined from, directly or indirectly: destroying, mutilating, concealing,
transferring, altering, or otherwise disposing of, in any manner, any documents, which
includes all books, records, computer programs, computer files, data objects existing
in any state, computer printouts, contracts, emails, correspondence, memoranda,
brochures, or any other documents of any kind in their possession, custody or control,
however created, produced, or stored (manually, mechanically, electronically, or
otherwise), and any accounts, account passwords, computer passwords, device PINs
and passwords, cryptographic keys, or digital wallets, pertaining in any manner to
defendants TBIS, EHI, or Stollaire.
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Case 2:18-cv-04315-DSF-JPR Document 48 Filed 05/30/18 Page 8 of 16 Page ID #:1463

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided

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in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the

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following who receive actual notice of this Preliminary Injunction by personal service

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or otherwise: (a) Defendants’ officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with any of the Defendants or with

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anyone described in (a).

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VIII.
IT IS FURTHER ORDERED that the obligations of defendants TBIS, EHI,

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and Stollaire each to prepare and deliver to the SEC a detailed and complete schedule

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of all of their assets shall remain in effect. The accountings shall include all real and

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personal property exceeding $5,000 in value, and all bank, securities, and other

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accounts identified by institution, branch address, and account number, and all digital

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assets, digital currencies, virtual currencies, digital tokens, cryptocurrencies, digital

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wallets, or other tangible, intangible, or digital funds or assets, wherever located. The

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accountings shall include a description of the sources of all such assets. Such

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accountings shall be filed with the Court and copies shall be delivered to the SEC to

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the attention of David J. Van Havermaat, Trial Counsel no later than May 29, 2018.

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After completion of the accountings, each of the Defendants shall produce to the SEC

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at a time agreeable to the SEC, all books, records and other documents supporting or

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underlying their accounting.

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IX.

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IT IS FURTHER ORDERED that any person who receives actual notice of this

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Preliminary Injunction by personal service or otherwise, and who holds, possesses, or

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controls assets exceeding $5,000 for the account or benefit of any of the Defendants,

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including any digital assets, digital currencies, virtual currencies, digital tokens,

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cryptocurrencies, digital wallets, or other tangible, intangible, or digital assets,

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wherever located, including any such assets held in any safe deposit box, shall within

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5 days of receiving actual notice of this Preliminary Injunction provide counsel for
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the SEC with a written statement identifying all such assets, the value of such assets,

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or best approximation thereof, and any account numbers or account names in which

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the assets are held.

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X.

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IT IS FURTHER ORDERED that the SEC may continue to conduct expedited

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discovery concerning Defendants, their assets and activities, as previously granted in

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the TRO, in lieu of the time periods, notice provisions, and other requirements of

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Rules 26, 30, 33, 34, 36, and 45 of the Federal Rules of Civil Procedure and the

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corresponding Local Rules of this Court, and that discovery shall proceed as follows:

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(A)

Pursuant to Rule 30(a) of the Federal Rules of Civil Procedure, the SEC

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may take depositions upon oral examination on five days’ notice of any such

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deposition. Depositions may be taken Monday through Friday. As to the

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Defendants, and their agents, servants, promoters, employees, brokers, and associates,

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and any person who transferred money to or received money from any account(s) at

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any of the bank, financial institution, brokerage firm, third-payment payment

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processor, or coin exchange identified above, or any other holder or custodian of any

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digital assets, digital currencies, virtual currencies, digital tokens, or cryptocurrencies

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identified above, the SEC may depose such witnesses after serving a deposition

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notice by facsimile, hand, or overnight courier upon such individuals, and without

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serving a subpoena on such witness.

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(B)

Pursuant to Rule 33(a) of the Federal Rules of Civil Procedure, each

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Defendant shall answer the SEC’s interrogatories within fourteen days of service of

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such interrogatories upon Defendant.

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(C)

Pursuant to Rule 34(b) of the Federal Rules of Civil Procedure, each

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Defendant shall produce all documents requested by the SEC within fourteen days of

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service of such request, with production of the documents made to David J. Van

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Havermaat, U.S. Securities and Exchange Commission, Los Angeles Regional

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Office, 444 S. Flower St., Suite 900, Los Angeles, California 90071, or such person
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or place as counsel for the SEC may direct in writing.
(D)

Pursuant to Rule 36(a) of the Federal Rules of Civil Procedure, each

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Defendant shall respond to the SEC’s requests for admissions within fourteen days of

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such requests;

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(E)

All written responses to the SEC’s requests for discovery under the

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Federal Rules of Civil Procedure shall be delivered by hand or overnight courier to

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the SEC to the attention of David J. Van Havermaat, U.S. Securities and Exchange

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Commission, Los Angeles Regional Office, 444 S. Flower St., Suite 900, Los

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Angeles, California 90071, or such other place and person as counsel for the SEC

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may direct in writing; and
(G) All discovery requests and responses may be served via email, facsimile,
or by hand on counsel for the parties.

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XI.

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IT IS FURTHER ORDERED that Josias N. Dewey is appointed as permanent

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receiver of defendant TBIS and its subsidiaries and affiliates, with full powers of an

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equity receiver, including, but not limited to, full power over all funds, assets,

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collateral, premises (whether owned, leased, occupied, or otherwise controlled),

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choses in action, books, records, papers and other property belonging to, being

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managed by or in the possession of or control of defendant TBIS and its subsidiaries

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and affiliates, and that such receiver is immediately authorized, empowered and

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directed:

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A.

to have access to and to collect and take custody, control, possession,

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and charge of all funds, assets (including any digital assets, digital

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currencies, virtual currencies, digital tokens of any kind,

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cryptocurrencies, digital wallets, or private keys associated with any of

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the foregoing, whether encrypted or not, or other tangible, intangible, or

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digital assets, wherever located), collateral, premises (whether owned,

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leased, pledged as collateral, occupied, or otherwise controlled), choses
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in action, books, records, papers, and other real or personal property,

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wherever located, of or managed by defendants TBIS and its subsidiaries

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and affiliates (collectively, the “Assets”), with full power to sue,

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foreclose, marshal, collect, receive, and take into possession all such

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Assets (including access to and taking custody, control, and possession

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of all such Assets);

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B.

to assume full control of defendant TBIS by removing, as the receiver

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deems necessary or advisable, any director, officer, attorney,

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independent contractor, employee, or agent of any of defendant TBIS

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and its subsidiaries and affiliates, including any named defendant, from

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control of, management of, or participation in, the affairs of defendant

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TBIS;

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C.

to have control of, and to be added as the sole authorized signatory for,

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all accounts of the entities in receivership, including all accounts at any

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bank, title company, escrow agent, financial institution, brokerage firm

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(including any futures commission merchant), or coin exchange, which

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has possession, custody or control of any Assets, or which maintains

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accounts over which defendant TBIS, and its subsidiaries and affiliates,

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and/or any of their employees or agents have signatory authority;

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D.

to conduct such investigation and discovery as may be necessary to

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locate and account for all of the assets (including any digital assets,

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digital currencies, virtual currencies, digital tokens, cryptocurrencies,

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digital wallets, or other tangible, intangible, or digital assets, wherever

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located) of or managed by defendant TBIS and its subsidiaries and

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affiliates, and to engage and employ attorneys, accountants and other

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persons to assist in such investigation and discovery;

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E.

to take such action as is necessary and appropriate to preserve and take
control of and to prevent the dissipation, concealment, or disposition of
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any Assets;

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F.

to choose, engage, and employ attorneys, accountants, appraisers, and

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other independent contractors and technical specialists, as the receiver

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deems advisable or necessary in the performance of duties and

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responsibilities under the authority granted by this Preliminary

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Injunction, including but not limited to, the law firm in which the

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receiver is a partner;

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G.

to make accountings, as soon as practicable, to this Court and the SEC of

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the assets and financial conditions of defendant TBIS and to file the

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accountings with the Court and deliver copies thereof to all parties;

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H.

to make such payments and disbursements from the Assets taken into

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custody, control, and possession or thereafter received by him, and to

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incur, or authorize the making of, such agreements as may be necessary

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and advisable in discharging his duties as permanent receiver;

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I.

to investigate and, where appropriate, to institute, pursue, and prosecute

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all claims and causes of action of whatever kind and nature that may

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now or hereafter exist as a result of the activities of present or past

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employees or agents of defendant TBIS, and its subsidiaries and

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affiliates;

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J.

to institute, compromise, adjust, appear in, intervene in, or become party

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to such actions or proceedings in state, federal, or foreign courts, that (i)

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the receiver deems necessary and advisable to preserve or recover any

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Assets, or (ii) the receiver deems necessary and advisable to carry out

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the receiver’s mandate under this Preliminary Injunction; and

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K.

to have access to and monitor all mail, electronic mail, SMS, text, or

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other messaging applications, and video phones of the entities in

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receivership in order to review such mail, electronic mail, SMS, text, or

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other messaging applications, and video phones which he deems relates
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to his business and the discharging of his duties as permanent receiver.

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XII.

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IT IS FURTHER ORDERED that defendant TBIS and its subsidiaries and

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affiliates, including all of the other entities in receivership, and their officers, agents,

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servants, employees and attorneys, and any other persons who are in custody,

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possession or control of any assets (including any digital assets, digital currencies,

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virtual currencies, digital tokens, cryptocurrencies, digital wallets, or any private keys

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associated with any of the foregoing, whether encrypted or not, or other tangible,

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intangible, or digital assets of any of the Defendants, wherever located), collateral,

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books, records, papers or other property of or managed by any of the entities in

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receivership, shall forthwith give access to and control of such property to the

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permanent receiver.

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XIII.
IT IS FURTHER ORDERED that any person who receives actual notice of this

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Preliminary Injunction by personal service or otherwise who holds, possesses, or

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controls any account passwords, computer passwords, device PINs or passwords, or

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cryptographic keys, including any such passwords or cryptographic keys held in any

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manner in any safe deposit box or pursuant to any other bailee relationship, pertaining

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in any manner to any assets of any of the Defendants (including any digital assets,

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digital currencies, virtual currencies, digital tokens, cryptocurrencies, digital wallets,

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or other tangible, intangible, or digital assets of any of the Defendants, wherever

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located), shall within 5 days of receiving actual notice of this Order provide counsel

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for the SEC and the permanent receiver with continuing access to all such account

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passwords, computer passwords, device PINs or passwords, and cryptographic keys,

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which, if stored in an encrypted state, shall be provided in an unencrypted state.

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XIV.

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IT IS FURTHER ORDERED that no officer, agent, servant, employee, or

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attorney of defendant TBIS shall take any action or purport to take any action, in the
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name of or on behalf of defendant TBIS without the written consent of the permanent

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receiver or order of this Court.

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XV.
IT IS FURTHER ORDERED that, except by leave of this Court, during the

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pendency of this receivership, all clients, investors, trust beneficiaries, note holders,

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creditors, claimants, lessors, and all other persons or entities seeking relief of any

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kind, in law or in equity, from defendant TBIS, or its subsidiaries or affiliates, and all

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persons acting on behalf of any such investor, trust beneficiary, note holder, creditor,

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claimant, lessor, consultant group, or other person, including sheriffs, marshals,

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servants, agents, employees, and attorneys, are hereby restrained and enjoined from,

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directly or indirectly, with respect to these persons and entities:

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A.

commencing, prosecuting, continuing or enforcing any suit or

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proceeding (other than the present action by the SEC or any other action

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by the government) against any of them;

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B.

using self-help or executing or issuing or causing the execution or

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issuance of any court attachment, subpoena, replevin, execution or other

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process for the purpose of impounding or taking possession of or

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interfering with or creating or enforcing a lien upon any property or

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property interests owned by or in the possession of defendant TBIS; and

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C.

doing any act or thing whatsoever to interfere with taking control,

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possession or management by the permanent receiver appointed

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hereunder of the property and assets owned, controlled or managed by or

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in the possession of defendant TBIS, or in any way to interfere with or

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harass the permanent receiver or his attorneys, accountants, employees,

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or agents or to interfere in any manner with the discharge of the

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permanent receiver’s duties and responsibilities hereunder.

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XVI.
IT IS FURTHER ORDERED that defendant TBIS and its subsidiaries,
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affiliates, officers, agents, servants, employees, and attorneys, shall cooperate with

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and assist the permanent receiver and shall take no action, directly or indirectly, to

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hinder, obstruct, or otherwise interfere with the permanent receiver or his attorneys,

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accountants, employees, or agents, in the conduct of the permanent receiver’s duties

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or to interfere in any manner, directly or indirectly, with the custody, possession,

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management, or control by the permanent receiver of the funds, assets, collateral,

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premises, and choses in action described above.

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XVII.
IT IS FURTHER ORDERED that defendant TBIS, and its subsidiaries and

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affiliates, shall pay the costs, fees and expenses of the permanent receiver incurred in

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connection with the performance of his duties described in this Preliminary

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Injunction, including the costs and expenses of those persons who may be engaged or

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employed by the permanent receiver to assist him in carrying out his duties and

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obligations. The permanent receiver’s fees, including all fees and costs for the

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permanent receiver and all others retained to assist in the administration and

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liquidation of the receivership estate, shall not exceed $125,000 during the initial 30

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days of the receivership. Further fee limitations, if any, will be set by the Court. All

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applications for costs, fees, and expenses for services rendered in connection with the

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receivership other than routine and necessary business expenses in conducting the

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receivership, such as salaries, rent, and any and all other reasonable operating

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expenses, shall be made by application setting forth in reasonable detail the nature of

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the services and shall be heard by the Court.

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XVIII.

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IT IS FURTHER ORDERED that no bond shall be required in connection with

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the appointment of the permanent receiver. Except for an act of gross negligence, the

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permanent receiver shall not be liable for any loss or damage incurred by any of the

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defendants, their officers, agents, servants, employees, and attorneys or any other

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person, by reason of any act performed or omitted to be performed by the permanent
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receiver in connection with the discharge of his duties and responsibilities.

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XIX.
IT IS FURTHER ORDERED that representatives of the SEC and any other

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government agency are authorized to have continuing access to inspect or copy any

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or all of the corporate books and records and other documents of defendant TBIS, and

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the other entities in receivership, and continuing access to inspect their funds,

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property, assets, and collateral, wherever located.

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XX.
IT IS FURTHER ORDERED that this Court shall retain jurisdiction over this

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action for the purpose of implementing and carrying out the terms of all orders and

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decrees that may be entered herein and to entertain any suitable application or motion

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for additional relief within the jurisdiction of this Court.

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IT IS SO ORDERED.

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Dated: 5/30/18

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________________________________

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HONORABLE DALE S. FISCHER
UNITED STATES DISTRICT JUDGE

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