Securities and Exchange Commission v. Ascenergy LLC et al

Filing 27

ORDER Granting Plaintiff's 4 Motion for Preliminary Injunction. Signed by Chief Judge Gloria M. Navarro on 10/29/2015. (Copies have been distributed pursuant to the NEF - SLD)

Case 2:15-cv-01974-GMN-PAL Document 4-1 Filed 10/13/15 Page 2 of 5
RECEIVED
FILED
-SERVED ON
==ENTERED COUNSEUPARfilS OF RECORD

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UNITED STATES DISTRICT COURT

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CLERK US DISTRICT COURT
DISTRICT OF NEVADA
DEPUTY

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SECURITIES AND EXCHANGE
COMMISSION,

Case No.:

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BY:

ORDER GRANTING PLAINTIFF'S
MOTION FOR PRELIMINARY
INJUNCTION

Plaintiff,

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vs.

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OCT 1 3 2015

DISTRICT OF NEVADA

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ASCENERGY LLC and
JOSEPH (a/k/a JOEY) GABALDON,

2:15-cv-01974-GMN-PAL

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Defendants,

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PYCKL LLC and ALANAH
ENERGY, LLC,

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Relief Defendants.

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29th
October
This matter came on before the Court this _ _ day of - - -, 2015, on Plaintiff
Securities and Exchange Commission's ("Commission") Motion for Preliminary Injunction
against Defendants Ascenergy LLC and Joseph (a/k/a Joey) Gabaldon (collectively,

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"Defendants").
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In the Motion the Commission seeks an order preliminarily enjoining Defendants from

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engaging in certain conduct in violation of the federal securities laws. Having considered the

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Commission's motion, supporting Memorandum of Law, exhibits, and the argument of counsel,

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if any, the Court finds:

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1.

This Court has jurisdiction over the subject matter of this action and over

Defendants.

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Case 2:15-cv-01974-GMN-PAL Document 4-1 Filed 10/13/15 Page 3 of 5

2.

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The Commission is a proper party to bring this action seeking the relief sought in

its Complaint and in its Motion.
3.

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There is good cause to believe that Defendants have engaged in acts and practices

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which constitute violations of Section 17(a) of the Securities Act of 1933 ("Securities Act") [15

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U.S.C. § 77q(a)] and Section lO(b) of the Securities Exchange Act of 1934 ("Exchange Act") [15

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U.S.C. §§ 78j(b)] and Rule lOb-5 thereunder [17 C.F.R. § 240.lOb-5].

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4.

There is good cause to believe that Defendants will continue to engage in the acts

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and practices constituting the violations set forth above unless restrained and enjoined by order
of this Court.
5.

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There is good cause to believe that Defendants used improper means to obtain

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investor funds and assets. There is good cause to believe that investor funds and assets obtained
through Defendants' unlawful activities have been misapplied and will be misappropriated,

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wasted, or otherwise used to the detriment of investors. Furthermore, there is good cause to
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believe that Defendants do not have sufficient funds or assets to satisfy the relief that might be
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ordered in this action.
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The Commission has demonstrated a prima facie case that a violation of the

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federal securities laws has occurred and a reasonable likelihood that the violations will be

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repeated.

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7.

The Commission has demonstrated a probability of success on the merits, the

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likelihood of irreparable injury, and that serious questions are raised and the balance of hardships
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tips in favor of granting the relief sought.
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The Commission has also demonstrated the likelihood of the dissipation of

investor assets and the likely inability to recover investor funds if relief is not granted.

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Case 2:15-cv-01974-GMN-PAL Document 4-1 Filed 10/13/15 Page 4 of 5

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IT IS THEREFORE ORDERED THAT:
PRELIMINARY INJUNCTION
(SECTION 17(a) OF THE SECURITIES ACT)

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Defendants and their officers, agents,'servants, employees, attorneys, and all persons in

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active concert or participation with them who receive actual notice of this Order by personal

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service or otherwise, are restrained and enjoined in the offer or sale of any securities by use of

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any means or instruments of transportation or communication in interstate commerce or by use

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of the mails from, directly or indirectly:

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(a) Employing any device, scheme, or artifice to defraud;
(b) Obtaining money or property by means of any untrue statement of a material fact or

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any omission to state a material fact necessary in order to make the statements made,

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in light of the circumstance under which they were made, not misleading; or

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(c) Engaging in any transactions, practices or courses of business which operate or

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would operate as a fraud or deceit upon any purchaser or prospective purchaser.

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[Securities Act 17(a) (15 U.S.C. 77q(a))].

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PRELI1\1INARY INJUNCTION
(SECTION lO(b) OF THE EXCHANGE ACT AND RULE lOb-5)

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Defendants and their officers, agents, servants, employees, attorneys, and all persons in
active concert or participation with them who receive actual notice of this Order by personal
service or otherwise, are restrained and enjoined from making use of any means or

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instrumentalities of interstate commerce or of the mails, or of any facility of a national security

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exchange, directly or indirectly, in connection with the purchase or sale of any security:
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(a) To employ any device, scheme, or artifice to defraud;

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Case 2:15-cv-01974-GMN-PAL Document 4-1 Filed 10/13/15 Page 5 of 5

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(b) To make any untrue statement of a material fact or to omit to state a material fact

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necessary in order to make the statements made, light of the circumstances under

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which they were made, not misleading;

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(c) To engage in any act, practice, or course of business which operates or would operate
as a fraud or deceit upon any person; or
(d) To use or employ any manipulative or deceptive device or contrivance in

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contravention of a rule or regulation prescribed by the Securities and Exchange
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Commission.
[Exchange Act§ IO(b) (15 U.S.C. § 78j(b)) and Rule IOb-5 (17 C.F.R. 240.lOb-5)].

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IT IS SO ORDERED:

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United States District Judge
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3:00
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Signed at _ _ _ a.m. I p.m. on October~ 2015.

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