Securities and Exchange Commission v. Fujinaga et al

Filing 57

AMENDED ORDER Granting 51 Plaintiff's Motion for the Appointment of an Accountant. Signed by Judge James C. Mahan on 03/11/2014. (Copies have been distributed pursuant to the NEF - AC)

UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
___________________________________________
:
SECURITIES AND EXCHANGE COMMISSION, :
:
Plaintiff, :
:
v.
:
:
EDWIN YOSHIHIRO FUJINAGA and
:
MRI INTERNATIONAL, INC.,
:
:
Defendants, :
:
and
:
:
CSA SERVICE CENTER, LLC,
:
:
Relief Defendant. :
___________________________________________:

Case No.: 2:13-cv-1658-JCM-CWH

AMENDED
ORDER IN RESPONSE TO THE
SEC’S APPLICATION FOR
CONTEMPT AND APPOINTING
AN ACCOUNTING FIRM TO
CONDUCT AN ACCOUNTING OF
THE ASSETS OF THE
DEFENDANTS AND RELIEF
DEFENDANT

This cause comes before the Court on the application of plaintiff Securities and Exchange
Commission for a finding of contempt on the ground that defendants Edwin Fujinaga and MRI
International, Inc. and relief defendant CSA Service Center, LLC have failed to serve an
accounting as ordered in the preliminary injunction in this action. The Court has read the papers
submitted by the parties and held a hearing on the application on February 27, 2014.
Accordingly, the Court being fully advised in the premises, it is hereby
1. ORDERED that, in lieu of adjudging defendants Edwin Fujinaga and MRI
International, Inc. and relief defendant CSA Service Center, LLC in contempt of court, and in
lieu of ordering Edwin Fujinaga to surrender his passport, the Court will appoint an independent
accounting firm to conduct and submit an accounting of the money, assets, liabilities, real
property and personal property of the defendants and relief defendant. The accounting firm of

McGladrey (the “Accounting Firm”) is hereby appointed to conduct and submit the accounting.
__________
LLP
The fees incurred in the preparation of the accounting shall be paid from the funds and property
frozen pursuant to the preliminary injunction. The Accounting Firm will submit its bills to the
Court to review for reasonableness, with copies being served on the Securities and Exchange
Commission, Edwin Fujinaga, MRI International, Inc. and CSA Service Center, LLC
(collectively, “the parties”). The parties shall have the right to object to the amount of fees being
sought.
2. ORDERED that the parties shall cooperate with the Accounting Firm and shall
provide relevant information in a timely manner in response to reasonable requests made by the
Accounting Firm. The parties shall have the right to correspond and communicate with the
Accounting Firm and shall have equal access to the information generated by the Accounting
Firm.
3. ORDERED that the Accounting Firm shall work with the defendants’ accountants,
Gilmore & Gilmore, as necessary to efficiently obtain records and review and build on work
already done. Gilmore & Gilmore may be compensated up to $5,000 from the funds and
property frozen pursuant to the preliminary injunction for its cooperation and work with the
Accounting Firm.
SO ORDERED.
Dated: Las Vegas, Nevada
March 11, 2014
March , 2014
________________________________
HON. JAMES C. MAHAN
UNITED STATES DISTRICT JUDGE

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