Securities and Exchange Commission VS Exotics.Com, Inc., etal

Filing 515

ORDER Holding Defendant Gary Thomas in Civil Contempt. Signed by Judge Miranda M. Du on 8/9/2016. (Copies have been distributed pursuant to the NEF - KR)

Case 2:05-cv-00531-MMD-GWF Document 513-1 Filed 08/08/16 Page 1 of 4

IN THE UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
UNITED STATES SECURITIES AND
EXCHANGE COMMISSION,
Plaintiff,
vs.
EXOTICS.COM, INC., et al.,
Defendants.

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MMD-GWF
Case No. 2:05-cv-00531-PMP-GWF

[PROPOSED] ORDER HOLDING DEFENDANT GARY THOMAS
IN CIVIL CONTEMPT

This matter is before the Court on the Plaintiff’s, the United States Securities and
Exchange Commission’s (“Commission” or “SEC”), Motion For An Order To Show Cause Why
Defendant Gary Thomas (“Thomas”) Should Not Be Held In Civil Contempt. (DE 450).
On July 27, 2016, the Court held an evidentiary hearing. The SEC was represented by
Nancy E. Tyler and Marsha C. Massey. Thomas was present and represented by counsel, Sean
Flanagan and Mark Chester, provisionally admitted pro hac vice.
Based on the testimony and the parties’ admitted exhibits, the Court finds:
1.

Thomas failed to comply with the Court’s Installment Payment Order entered on March
31, 2014 (DE 449) (“Order”) to make monthly payments of $15,966 on the following
dates: April 1, 2014, May 1, 2014, June 1, 2014, July 1, 2014, August 1, 2014, September
1, 2014, October 1, 2014, November 1, 2014, January 1, 2016, February 1, 2016, March
1, 2016, April 1, 2016, May 1, 2016, and June 1, 2016;

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Case 2:05-cv-00531-MMD-GWF Document 513-1 Filed 08/08/16 Page 2 of 4

2.

Thomas failed to comply with the Order by failing to submit quarterly financial
statements to the SEC on the following dates: July 1, 2014, October 1, 2014, January 1,
2016, and April 1, 2016;

3.

Thomas failed to comply with the Order by failing to advise the SEC of any
substantial changes in his financial condition;

4.

The SEC presented clear and convincing evidence that Thomas is in contempt of the
Court’s Order and that the Order was clear and unambiguous; and

5.

Thomas failed to meet his burden of showing that he was unable to comply with the
Order.
IT IS THEREFORE ORDERED that Gary Thomas Vojtesak is in Contempt of Court and

that sanctions are appropriate. THE COURT ORDERS that:
19,
1.
No later than August 1, 2016, Thomas shall provide to the SEC:
a.

The missing parts of bank statements marked as Defendant’s Exhibit D5;

b.

The bank statements for any accounts referenced in Defendant’s Exhibits D5 and
D6 from which money was deposited for the period of January through the
August 1, 2016;

c.

A copy of the promissory notes evidencing the loans identified on Defendant’s
Exhibit D18;

2.

No later than thirty (30) days following the entry of this Order, Thomas shall produce

to the SEC the following:
a.

A list of entities, including but not limited to corporations, LLCs, LLPs,
partnerships, joint ventures, and sole proprietorships in which Thomas has had an
interest and/or signature authority since January 1, 2016;

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Case 2:05-cv-00531-MMD-GWF Document 513-1 Filed 08/08/16 Page 3 of 4

b.

Year to date financial statements, including Balance Statements, Income
Statements, Profit and Loss Statements, W-2 forms, 1099 forms, K-1 forms for all
of the entities referenced above and a certification that the statements are
accurate;

c.

For each of the entities referenced above, a list of all partners (general or limited),
shareholders, joint venturers, or owners of any kind and a description of their
ownership interest in the entity;

d.

Tax returns since 2013 for all of the above identified entities;

e.

Thomas’s personal financial statements which may be prepared by an accounting
professional, but must be accompanied by a certification from Thomas under
penalties of perjury that they are accurate;

f.

A list of all financial depository accounts of any kind, including but not limited to
checking accounts, savings accounts, draft accounts, certificates of deposit,
brokerage accounts, money market accounts, individual retirement accounts, 401k
accounts, and KEOGH accounts, which existed as of July 27, 2016 (the date of
the hearing) in which Thomas has or had signatory authority, including complete
bank account numbers, account balances as of July 27, 2016, and balances in
those accounts as of the date of his response to this Order;

g.

For any of the above identified depository accounts which were closed on or after
July 27, 2016, an accounting of the disposition of the funds from the closed
accounts;

h.

A full inventory of personal and real property assets as of July 27, 2016 in which
Thomas has any real or beneficial interest, including a complete description and

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Case 2:05-cv-00531-MMD-GWF Document 513-1 Filed 08/08/16 Page 4 of 4

location of all artwork, jewelry, motor vehicles, boats, planes, real property, guns,
$1,000.00
wine, furs, rare books, coins, stamps, or any other asset of value over $100 in
which Thomas has an interest or a right to alienate or sell; and
i.

A full accounting of all money either owed to Thomas or any entity in which
Thomas has an interest, including loans or accounts receivable, or monies being
held for the benefit of Thomas, and identification of the persons and/or entities
holding such funds.

The Court further directs that the parties work toward establishing a new payment plan
for Thomas. If the parties cannot agree on a payment plan, the Court will refer the matter to the
Magistrate Judge in an effort to resolve any issues between the parties.
A status hearing on Thomas’s compliance with the Court’s Order is set for
__________________, 2016.
SO ORDERED on this _____ day of August, 2016.
9th

_______________________________
The Honorable Miranda M. Du
United States District Court Judge

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