Securities and Exchange Commission v. BIC Real Estate Development Corporation et al

Filing 13

ORDER ON HEARING REGARDING TEMPORARY RESTRAINING ORDER signed by District Judge Lawrence J. O'Neill on March 15, 2016. Preliminary Injunction Hearing set for 4/1/2016 at 08:30 AM in Courtroom 4 (LJO) before District Judge Lawrence J. O'Neill. (Munoz, I)

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UNITED STATES DISTRICT COURT
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FOR THE EASTERN DISTRICT OF CALIFORNIA
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SECURITIES AND EXCHANGE
COMMISSION,

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ORDER ON HEARING REGARDING
TEMPORARY RESTRAINING ORDER

Plaintiff,

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1:16-cv-344-LJO-JLT

v.
BIC REAL ESTATE DEVELOPMENT
CORPORATION, et al.,
Defendants.

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The Court held a hearing on March 15, 2016, regarding the Temporary Restraining Order

13 (“TRO”) issued on March 11, 2016. Doc. 10.

Counsel John Bulgozdy, Manual Vasquez, and Matthew

14 Montgomery appeared on behalf of Plaintiff. Counsel Scott Vick appeared on behalf of Defendants.
15 Pursuant to the Court’s discussion with the parties, a review of all papers that were submitted, and
16 rulings made at the hearing, the Court ORDERS:
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1. The TRO remains in full force and effect until April 8, 2016 (except as modified by this
Order) or until a preliminary injunction issues, whichever is earlier, as stipulated to by the
parties at the hearing.
2. The Court will hold a hearing on converting the TRO into a Preliminary Injunction on April
1, 2016, at 8:30A.M. in Department 4 (LJO) at the Robert E. Coyle Federal Courthouse,
2500 Tulare, Fresno, CA 93721. Defendants shall file any opposition by noon on March 24,
2016. Plaintiff shall file any reply by 4:00 P.M. on March 29, 2016. Each side shall have a
maximum of three hours for presentation of evidence and argument at the hearing. If either
party intends to present witness testimony at the hearing, or if Defendant intends to crossexamine Plaintiff’s declaration witnesses, they shall inform opposing counsel of their intent
to do so by noon on March 30, 2016, and shall provide the names of the witnesses and offers
of proof. The proffer of any declaration shall be responsible to have that witness at the
hearing if proper notice is given for the opportunity to cross examine.

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3. Defendants Daniel Nase and Margarita Nase are permitted to use personal credit cards for
their personal expenses. Any personal credit card used must bear only Mr. and/or Mrs.
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Nase’s name.

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4. The Court appoints David P. Stapleton as a temporary receiver for the purpose of
maintaining the status quo of the businesses associated with this lawsuit, i.e., ensuring that
those businesses receive and make payments in the ordinary course of business. Mr.
Stapleton is permitted to incur a maximum of $30,000 in fees for his services as temporary
receiver, a cost to be borne by the Defendant companies affected by rulings in this suit.
5. Target Oil shall inform Kern Oil that any of its requests dealing with deposits and/or
payments made by Target Oil on or since March 11, 2016, is withdrawn, and that Kern Oil
shall continue its usual process of doing business with Target Oil as established by past
business practices in the normal course of those business dealings.

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6. Plaintiff is permitted to conduct three depositions prior to the April 1st hearing. The total
length of all depositions combined shall not exceed eight hours. Plaintiff shall provide
Defendant three days’ notice of any deposition, and the depositions, absent stipulation to the
contrary, shall be completed in one calendar day—the same day.
7. As agreed to at the hearing on March 15th without objection, Mr. Nase shall return the
approximately $60,000 he withdrew on or since March 11, 2016. He shall return the same
amounts into the same accounts from which they were withdrawn, and shall immediately
provide confirmation of doing so to counsel for Plaintiff.

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8. By March 25, 2016, Mr. Nase shall provide Plaintiff with a full accounting of all businesses
related to this lawsuit for January 1, 2016, through March 15, 2016.

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15 IT IS SO ORDERED.
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Dated:

/s/ Lawrence J. O’Neill

March 15, 2016

UNITED STATES DISTRICT JUDGE
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