US Commodity Futures Trading Commission v. American Bullion Exchange Abex Corp et al

Filing 143

MINUTES (IN CHAMBERS): ORDER by Judge David O. Carter: striking 129 Motion to Vacate ; granting 133 Motion to Strike and document is stricken. Accordingly, the hearings set for July 9, 2012 at 8:30 a.m. and July 23, 2012 at 8:30 a.m.are removed from the calendar. (twdb)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No. SACV 10-1876 DOC (RNBx)

Date: July 3, 2012

Title: U.S. COMMODITY FUTURES TRADING COMMISSION -V- AMERICAN BULLION
EXCHANGE ABEX, CORP., ET AL.

PRESENT:
THE HONORABLE DAVID O. CARTER, JUDGE
Julie Barrera
Courtroom Clerk

Not Present
Court Reporter

ATTORNEYS PRESENT FOR PLAINTIFFS: ATTORNEYS PRESENT FOR DEFENDANTS:
NONE PRESENT

NONE PRESENT

PROCEEDING (IN CHAMBERS): GRANTING PLAINTIFF’S MOTION TO STRIKE
DEFENDANTS’ MOTION TO VACATE
Before the Court is Defendant Ryan A. Nassbridges’ (“R. Nassbridges”) and Relief
Defendant Bita J. Nassbridges’ (“B. Nassbridges”) (jointly, the “Nassbridges”) Motion to Vacate and
Set Aside the Default Entry by the Clerk (“Motion to Vacate”) (Docket 129). Plaintiff has moved to
strike the Nassbridges’ Motion to Vacate (“Motion to Strike”) (Docket 133). The Court finds these
matters appropriate for decision without oral argument. Fed.R.Civ. P. 78; Local Rule 7-15. After
considering the papers on both the Motion to Vacate and Motion to Strike, the Court GRANTS
Plaintiff’s Motion to Strike.
Accordingly, the hearings set for July 9, 2012 at 8:30 a.m. and July 23, 2012 at 8:30 a.m.
are removed from the calendar.
I. BACKGROUND
The United States Commodity Futures Trading Commission (“Plaintiff”) alleges that R.
Nassbridges, American Bullion Exchange ABEX, Corp., and American Bullion Exchange, LLC
(collectively, “Defendants”) “fraudulently operated a commodity pool and defrauded at least 80
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individuals of approximately $5.5 million.” Complaint, ¶ 2. Defendants allegedly “solicited funds
from individuals for the represented purpose of investing in gold bullion, palladium bullion, gold coins
and silver coins,” but instead used investors’ funds to trade commodity futures and options. Id.
Plaintiff contends that Defendants sustained overall net trading losses of approximately $2.2 million
without disclosing such losses to the investors. Id. at ¶ 3. Additionally, Defendants, through R.
Nassbridges, allegedly misappropriated investors’ funds by transferring investors’ funds into the
Nassbridges’ personal bank account. Id. at ¶ 5. Furthermore, to conceal the allegedly fraudulent
operations and misappropriation, R. Nassbridges allegedly provided false and misleading testimony to
Plaintiff. Id. at ¶ 7.
In light of the alleged wrongdoing, Plaintiff filed a Complaint with this Court on
December 8, 2010, alleging various violations of the Commodity Exchange Act and Commission
Regulations, including (1) fraud by fraudulent solicitation, misappropriation and failure to disclose
trading and losses (both futures and options); (2) fraud as a commodity pool operator; (3) failure to
register as a commodity pool operator; (4) failure to provide pool disclosure documents; and (5) failure
to provide monthly account statements (Docket 1).
On May 30, 2012, Plaintiff filed a request for a Clerk’s Entry of Default against
American Bullion Exchange ABEX, Corp. and American Bullion Exchange, LLC (collectively,
“Corporate Defendants”), as well as against American Preferred Commodities APC Corp. And R.E.
Lloyd Commodities Group Holding LLC (collectively, “Corporate Relief Defendants”). On June 1,
2012, the Clerk of the Court entered a Default as to the Corporate Defendants and the Corporate Relief
Defendants (Docket 126). The Nassbridges seek to set aside that Entry of Default in a motion that
Plaintiff seeks to strike.
II. DISCUSSION
The Court need not address the merits of the Nassbridges’ Motion to Vacate because its
mere existence contravenes Local Rule 83's prohibition against non-attorneys representing individuals
or entities other than themselves. See L. R. 83-2.10.1 (A corporation may not appear in any action or
proceeding pro se); L. R. 83-2.1 (“An appearance before the Court on behalf of another party or a class
may be made only by an attorney admitted to the Bar of or permitted to practice before this Court.”); DBeam Ltd. Partnership v. Roller Derby Skates, Inc., 366 F.3d 972, 974-74 (9th Cir. 2004) (“It is a
longstanding rule that ‘corporations and other unincorporated associations must appear in court through
an attorney.”) (citing Licht v. Am. W. Airlines, 40 F.3d 1058, 1059 (9th Cir. 1994)).
Because R. Nassbridges and B. Nassbridges are pro se, they may argue on behalf of
themselves individually but not on behalf of either the Corporate Defendants or the Corporate Relief
Defendants. As such, the Motion to Vacate is hereby STRICKEN.
III. DISPOSITION
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For the foregoing reasons, the Motion to Strike is GRANTED and the Motion to Vacate
shall be STRICKEN.
The Clerk shall serve this minute order on all parties to the action.

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