Securities and Exchange Commission v. Fujinaga et al

Filing 44

ORDER Granting 40 Motion for Order to Show Cause. Show Cause Hearing set for 2/27/2014 10:00 AM in LV Courtroom 6A before Judge James C. Mahan. IT IS FURTHER ORDERED that defendants and the relief defendant and, at her discretion, June Fujinaga, shall deliver via email to counsel for plaintiff, James A. Kidney, any papers opposing the entry of an order as described no later than 2/14/14, 5:00 p.m. Pacific Standard Time. The Commission shall have until 2/20/14, 5:00 p.m. Pacific Standard Time, to serve via email on counsel for the defendants and for June Fujinaga any reply papers. Signed by Judge James C. Mahan on 2/7/14. (Copies have been distributed pursuant to the NEF - EDS)

Case 2:13-cv-01658-JCM-CWH Document 40-1 Filed 01/28/14 Page 1 of 3

JAMES A. KIDNEY
DANETTE EDWARDS
THOMAS SWIERS
100 F St., NE
Washington, D.C. 20549-5949
[phone] (Kidney)
[phone] (Fax)
[e-mail]
Attorneys for the Securities and Exchange
Commission
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
EDWIN YOSHIHIRO FUJINAGA,
et al.,
Defendants.

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Case No.: 2-13-cv-1658
JCM-CWH
[PROPOSED] ORDER TO SHOW CAUSE
WHY DEFENDANTS AND RELIEF
DEFENDANT SHOULD NOT BE HELD
IN CONTEMPT OF COURT

On application of plaintiff, the Securities and Exchange Commission (“SEC” or “the
Commission”), defendants Edwin Y. Fujinaga (“Fujinaga”) and MRI International, Inc. (“MRI”)
and relief defendant CSA Service Center, LLC (“CSA”) are HEREBY ORDERED TO SHOW
CAUSE why any or each of them should not be held in contempt of the orders of this Court
requiring defendants and the relief defendant to provide an accounting of assets by October 15,
2013 and, further, why any or each of them should not also be held in contempt for violating the
asset freeze entered on September 12 and October 7, 2013.
Specifically, the defendants and relief defendant are ordered to show cause why an order
should not be entered:
(a)

Directing defendants and relief defendant to pay into the Court Registry all funds

they have dissipated in violation of the Court’s orders of September 12 and October 7, 2013,
freezing the assets under the direction or control of the defendants and the relief defendant.

Case 2:13-cv-01658-JCM-CWH Document 40-1 Filed 01/28/14 Page 2 of 3

(b)

Ordering defendants and the relief defendant to comply with the verified written

accounting provisions ordered by this Court on September 12 and October 7 and, should such
accounting not be provided to the plaintiff within five (3) days of the entry of this Order, require
defendant Fujinaga to pay into the court registry $500 (five hundred dollars) for each day in
which an accounting is not provided, with the possibility of incarceration if an accounting is not
provided within ten (10) days of entry of this Order. The counting of the days shall include
weekends and holidays.
(c)

Ordering the defendants to provide within three (3) days of the entry of this order

all records related to the income and expenditures used to support defendant Fujinaga and his
family beginning on September 12, 2013 when an asset freeze was first entered and all records
disclosing income and disposition of income in 2012 and 2013 by any defendant or relief
defendant, whether acting directly or indirectly through others. Should the records not be
provided as ordered, defendant Fujinaga shall pay into the court registry $500 for each day in
which the records are not provided, with the possibility of incarceration if the records are not
completely produced to counsel for the plaintiff within ten (10) days of the entry of this Order.
The counting of the days shall include weekends and holidays.
(d)

Ordering defendant Fujinaga to surrender his passport to the Court within one day

of entry of the order.
IT IS FURTHER ORDERED that defendants and the relief defendant, and Mrs. June
Fujinaga, the wife of defendant Edwin Fujinaga, appear in person, testify concerning the alleged
10:00 am on the ___
violations of the Orders, and show cause, if there be any, to this Court at ____ __.m.on February 27, 2014
Courtroom 2014,
day of ____, 6A in the courtroom of the undersigned, at the Lloyd D. George United States

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Case 2:13-cv-01658-JCM-CWH Document 40-1 Filed 01/28/14 Page 3 of 3

Courthouse, 333 Las Vegas Blvd., South, Las Vegas, Nevada, why this Court should not enter an
order providing for the relief described herein.
IT IS FURTHER ORDERED that defendants and the relief defendant and, at her
discretion, June Fujinaga, shall deliver via email to counsel for the plaintiff, James A. Kidney,
[e-mail], any papers opposing the entry of an order as described herein no later than
February 14
____________, 2014, at 5:00 p.m. Pacific Standard Time. The Commission shall have until
February 20
_____________, 2014, at 5:00 p.m. Pacific Standard Time, to serve via email on counsel for the
defendants and for June Fujinaga any reply papers.
SO ORDERED.
Date: February 7, 2014

_______________________________________
JUDGE, UNITED STATES DISTRICT COURT
UNITED STATES DISTRICT COURT

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