LODGED

Case 8:21-cv-00403-JVS-ADS Document 5-1 Filed 03/02/21 Page 1 of 8 Page ID #:64

CLERK, U.S. DISTRICT COURT

MAR - 2 2021
CENTRAL DISTRICT OF CALIFORNIA
RS
BY: ___________________ DEPUTY

1 LESLIE J. HUGHES
(pro hac vice application pending)
2 HughesLJ@sec.gov
SECURITIES AND EXCHANGE COMMISSION
3 1961 Stout Street, Suite 1700
Denver, Colorado 80294-1961
4 Telephone: (303) 844-1000
Facsimile: (303) 297-3529
5 Local Counsel:
AMY JANE LONGO (Cal. Bar No. 198304)
6 longoa@sec.gov
SECURITIES AND EXCHANGE COMMISSION
7 444 S. Flower Street, Suite 900
Los Angeles, California 90071
8 Telephone: (323) 965-3998
Facsimile: (213) 443-1904
9
10
UNITED STATES DISTRICT COURT
11
CENTRAL DISTRICT OF CALIFORNIA
12
13 SECURITIES AND EXCHANGE Case No. 8:21-CV-00403-JVS-ADSx
COMMISSION,
14 [PROPOSED] ORDER (1) FREEZING
Plaintiff, ASSETS; (2) PERMITTING
15 ALTERNATIVE MEANS OF
vs. SERVICE; (3) REQUIRING AN
16 ACCOUNTING; (4) PERMITTING
ANDREW L. FASSARI, EXPEDITED DISCOVERY; (5)
17 PROHIBITING DESTRUCTION OF
DOCUMENTS; AND (6) TO SET
18 HEARING ON ORDER TO SHOW
Defendant. CAUSE
19
20
(FILED UNDER SEAL)
21
22
23 This matter came before the Court upon the Application of Plaintiff Securities

24 and Exchange Commission (“SEC”) for Order (1) Freezing Assets; (2) Permitting

25 Alternative Means of Service; (3) Requiring An Accounting; (4) Granting Expedited

26 Discovery; (5) Prohibiting Destruction of Documents; and (6) To Set Hearing On

27 Order to Show Cause (the “Asset Freeze Application”).

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1 The Court, having considered the SEC’s Complaint, the Asset Freeze
2 Application, the supporting Memorandum of Points and Authorities, the supporting
3 declarations and exhibits, and the other evidence and argument presented to the
4 Court, finds that:
5 A. This Court has jurisdiction over the parties to, and the subject matter of,
6 this action.
7 B. The SEC has made a sufficient and proper showing as required by
8 Section 20(b) of the Securities Act of 1933 (“Securities Act”) (15 U.S.C.
9 § 77t(b)), and Section 21(d) of the Securities Exchange Act of 1934
10 (“Exchange Act”) (15 U.S.C. § 78u(b)) that it is likely to succeed on the
11 merits of its claims that Andrew L. Fassari (“Fassari”) violated Section
12 17(a) of the Securities Act, 15 U.S.C. § 77q(a); Section 10(b) of the
13 Securities Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5 thereunder,
14 17 C.F.R. § 240.10b-5.
15 C. Good cause exists to believe that, unless restrained and enjoined by
16 order of this Court, Defendant Fassari will dissipate, conceal, or transfer
17 assets which could be the subject to an order directing disgorgement or
18 the payment of civil money penalties in this action. It is appropriate for
19 the Court to issue this Order freezing assets so that prompt service on
20 appropriate financial institutions can be made, thus preventing the
21 dissipation of assets.
22 D. Good cause exist to believe that expedited discovery and alternative
23 means of service are warranted.
24 E. Good cause exists to believe that an immediate sworn accounting of
25 assets is necessary to identify the source and location of Fassari’s assets.
26 F. Good cause exists to believe that, unless restrained and enjoined by
27 order of this Court, Defendant may alter or destroy documents relevant
28 to this action.

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1 I.
2 IT IS HEREBY ORDERED that the SEC’s Asset Freeze Application is
3 GRANTED.
4 II.
5 IT IS FURTHER ORDERED that, pending further action by this Court,
6 A. $1,859,387 of assets, funds, or other property of Defendant Fassari,
7 wherever located or by whomever held, and whether acquired before or after
8 institution of this action, are frozen (with allowance for necessary and reasonable
9 living expenses to be granted by this Court only upon good cause shown by
10 application to the Court with notice to and an opportunity for the SEC to be heard);
11 B. Defendant Fassari and his agents, servants, employees, attorneys-in-fact,
12 and those persons in active concert or participation with him who receive actual
13 notice of this order by personal service or otherwise, and each of them, shall hold and
14 retain within their control, and otherwise prevent any disposition, transfer, pledge,
15 encumbrance, assignment, dissipation, concealment, or other disposal whatsoever
16 (including the use of any credit cards or other incurring of debt) of any of their funds,
17 property (including money, virtual currency or other digital asset, real or personal
18 property, tangible assets, securities, commodities, choses in action, or other property
19 of any kind whatsoever, in whatever form such assets may exist and wherever
20 located) or other assets or things of value held by them, under their control or over
21 which they exercise actual or apparent investment or other authority, in whatever
22 form such assets may presently exist and wherever located, up to $1,859,387; and
23 C. Any bank, financial, brokerage institution, or other person or entity
24 holding any funds, securities or other assets in the name of, for the benefit of, or
25 under the control of Defendant Fassari and his family members, agents, servants,
26 employees, attorneys-in-fact, and those persons in active concert or participation
27 with him, shall hold and retain within their control and prohibit the withdrawal,
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1 removal, transfer or other disposal of any such funds or other assets.

2 This Order specifically applies, but is not limited, to the following accounts:
3
BANK NAME ACCOUNT NAME ACCOUNT NO.
4
E*Trade Securities Andrew L. Fassari 67820255
5 LLC
6 E*Trade Securities Andrew L. Fassari 68033014
LLC
7
JP Morgan Chase Bank Andrew L. Fassari 4921328278
8
9
D. No person or entity, including the Defendant Fassari or any creditor or
10
claimant against him or any person acting on behalf of such creditor or claimant,
11
shall take any action to interfere with the asset freeze, including, but not limited to,
12
the filing of any lawsuits (whether to recover assets or seek relief from Defendant
13
or to seek relief on behalf of Defendant), liens, or encumbrances, or bankruptcy
14
cases to impact the property and assets subject to this order; provided, however,
15
that any party or non-party may seek leave from this order upon a proper showing.
16
E. Copies of this Order may be served by any means, including facsimile
17
transmission and email, upon any entity or person that may have possession,
18
custody, or control of any assets of Defendant Fassari that may be subject to any
19
provision of this Order.
20
III.
21
IT IS FURTHER ORDERED that Defendant Fassari within five days of the
22
issuance of this Order, shall prepare and deliver to the SEC a detailed and complete
23
schedule of all of his personal assets, including all real and personal property
24
exceeding $5,000 in value, and all bank, securities, and other accounts identified by
25
institution, branch address and account number. The accounting shall include a
26
description of the sources of all such assets. Such accounting shall be filed with the
27
Court and a copy shall be delivered to the SEC to the attention of Leslie J. Hughes,
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1 counsel for the SEC. After completion of the accounting, Defendant shall produce to
2 the SEC at a time agreeable to the SEC, all books, records and other documents
3 supporting or underlying his accounting.
4 IV.
5 IT IS FURTHER ORDERED that any person who receives actual notice of this
6 Order by personal service or otherwise, and who holds, possesses or controls assets
7 exceeding $5,000 for the account or benefit of the Defendant, shall within 5 days of
8 receiving actual notice of this Order provide counsel for the SEC with a written
9 statement identifying all such assets, the value of such assets, or best approximation
10 thereof, and any account numbers or account names in which the assets are held.
11 V.
12 IT IS FURTHER ORDERED that, except as otherwise ordered by this Court,
13 Defendant Fassari, and his agents, servants, employees, attorneys, and those persons
14 in active concert or participation with any of them, who receive actual notice of this
15 Order, by personal service or otherwise, and each of them, be and hereby are
16 temporarily restrained and enjoined from, directly or indirectly: destroying,
17 mutilating, concealing, transferring, altering, or otherwise disposing of, in any
18 manner, any documents, which includes all books, records, computer programs,
19 computer files, computer printouts, contracts, emails, correspondence, memoranda,
20 brochures, or any other documents of any kind in their possession, custody or control,
21 however created, produced, or stored (manually, mechanically, electronically, or
22 otherwise), pertaining in any manner to Defendant Fassari.
23 VI.
24 IT IS FURTHER ORDERED that the SEC’s application for expedited
25 discovery concerning Defendant, his assets and activities, is granted and that,
26 commencing with the time and date of this Order, in lieu of the time periods, notice
27 provisions, and other requirements of Rules 26, 30, 33, 34, 36, and 45 of the Federal
28 Rules of Civil Procedure and the corresponding Local Rules of this Court, discovery

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1 shall proceed as follows:

2 A. Pursuant to Rule 30(a) of the Federal Rules of Civil Procedure, the
3 parties may take depositions of parties or any third parties upon oral
4 examination on two days’ notice of any such deposition. Depositions
5 shall be taken telephonically or by video conference. Depositions may be
6 taken Monday through Saturday. As to the Defendant, and his agents,
7 servants, promoters, employees, brokers, associates, and any person who
8 transferred money to or received money from the bank accounts
9 identified above, the SEC may depose such witnesses after serving a
10 deposition notice by facsimile, hand or overnight courier upon such
11 individuals, and without serving a subpoena on such witness.
12 Depositions that have not been signed by the witness may be used for
13 purposes of the hearing on the SEC’s application for preliminary
14 injunction;
15 B. Pursuant to Rule 33(a) of the Federal Rules of Civil Procedure, the
16 Parties shall answer interrogatories within three days of service of such
17 interrogatories. Interrogatories may be served and answered by
18 facsimile, e-mail, mail, hand or overnight courier upon the parties or
19 their counsel;
20 C. Pursuant to Rule 34(b) of the Federal Rules of Civil Procedure, the
21 parties shall produce all documents requested within five days of service
22 of such request. Documents produced to the SEC shall be delivered to
23 Leslie Hughes [GIVE CONTACT INFO] or such other place as counsel
24 for the SEC may direct in writing. Requests for production may be
25 served by facsimile, e-mail, mail, hand or overnight courier upon the
26 parties or their counsel;
27 D. Pursuant to Rule 36(a) of the Federal Rules of Civil Procedure, the
28 parties shall respond to requests for admissions within three days of

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1 such requests. Requests for admission may be served by facsimile, e-

2 mail, mail, hand or overnight courier upon the parties or their counsel;
3 and
4 E. In connection with any discovery from any non-party, deposition or
5 document discovery may be had within five days of service of a
6 subpoena pursuant to Rule 45. Service of a subpoena may be made by
7 facsimile, e-mail, mail, hand or overnight courier; and
8 C. All discovery requests and responses may be served via email, facsimile,
9 or by hand on counsel for the parties.
10 VII.
11
12 IT IS FURTHER ORDERED that this Asset Freeze Order shall expire at _____
13 on _________________, 2021 unless for good cause shown it is extended or the
14 parties against whom it is directed consent that it may be extended for a longer
15 period.
16 VIII.
17 IT IS FURTHER ORDERED that at _____ on _________________, 2021, or
18 as soon thereafter as the parties may be heard, the Defendant shall appear before the
19 Honorable ____________________, Judge of the United States District Court for the
20 Central District of California, to show cause, if there be any, why the asset freeze
21 should not continue until this matter is determined on the merits. Any declarations,
22 affidavits, points and authorities, or other submissions in support of, or in opposition
23 to, the issuance of such an Order shall be filed with the Court and emailed to Leslie J.
24 Hughes, counsel for the SEC, at hugheslj@sec.gov, and the offices of the Defendant
25 or his attorneys no later than _____ on _____________, 2021. Any reply papers shall
26 be filed with the Court and delivered to opposing counsel no later than _____ on
27 , 2021.
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1 IX.
2 IT IS FURTHER ORDERED that this Court shall retain jurisdiction over this
3 action for the purpose of implementing and carrying out the terms of all orders and
4 decrees which may be entered herein and to entertain any suitable application or
5 motion for additional relief within the jurisdiction of this Court.
6
7 IT IS SO ORDERED.
8
9 Dated: ___________, 2021 ________________________________
UNITED STATES DISTRICT JUDGE
10
11 Presented by:
12 Amy J. Longo
Leslie J. Hughes (pro hac vice application pending)
13 Attorneys for Plaintiff
Securities and Exchange Commission
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