UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA SACRAMENTO
October 13, 2009
SECURITIES AND EXCHANGE COMMISSION, PLAINTIFF
ANTHONY VASSALLO, ET AL, DEFENDANTS.
The opinion of the court was delivered by: Judge Lawrence K. Karlton
ORDER DIRECTING BROKERAGE HOUSES TO PRODUCE DOCUMENTS AND CLOSE ALL EIMT BROKERAGE ACCOUNTS
On April 30, 2009, this Court filed the Order Appointing Temporary Receiver for Equity Investment Management and Trading, Inc. ("EIMT") and Order to Show Cause for Appointment of Permanent Receiver ("OAR") and on July 31, 2009, the Court filed an Order permanently appointing Receiver. Pursuant to the OAR, for good cause shown, and in order to empower and authorize the Receiver to carry out his duties and obligations,
THE COURT HEREBY FINDS AND ORDERS AS FOLLOWS:
EIMT investor funds were utilized to purchase investments through several brokerage houses, including but not limited TradeStation Securities, Inc., Options XPress and TD Ameritrade (the "Brokerages"). Receiver's investigation has revealed that a variety of accounts were opened at the Brokerages, some of which were in the name of EIMT, and others of which may have been in the name of EIMT Properties, LLC, Anthony Vassallo, or Kenneth Kenitzer, or for which Anthony Vassallo or Kenneth Kenitzer had signing authority (the "EIMT Brokerage Accounts"). Receiver's investigation has further revealed that at least one EIMT Brokerage Account, TradeStation Account Number 172-81228JB3, in the name of EIMT, is frozen, but contains $2,283.00.
To facilitate Receiver's investigation as to whether any other EIMT Brokerage Accounts are still in existence, to recover any assets contained in any such EIMT Brokerage Accounts, and to trace investor funds any and all Brokerages, including, but not limited to TradeStation Securities, Inc., Options XPress and TD Ameritrade, are hereby directed to provide to Receiver information and documentation concerning any and all EIMT Brokerage Accounts (including, TradeStation Account Number 172-81228JB3, held in the name of EIMT) from January 1, 2006, including, but not limited to statements and other documentation reflecting receipts by and disbursements from such accounts, account numbers and account holder identification.
Furthermore, any and all brokerage houses, including, but not limited to TradeStation Securities, Inc., Options XPress and TD Ameritrade, are hereby directed to close any and all EIMT Brokerage Account(s) and remit to Receiver any money or securities contained in the EIMT Brokerage Account(s) (including, TradeStation Account Number 172-81228JB3, held in the name of EIMT).
All Brokerages, including, but not limited to TradeStation Securities, Inc., Options XPress and TD Ameritrade, are hereby further directed to cooperate fully with Receiver in transmitting these documents and assets to him and in Receiver's activities, investigation and inquiries on behalf of this Court.
IT IS SO ORDERED.
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