The opinion of the court was delivered by: Cormac J. Carney United States District Judge
AMENDED PRELIMINARY INJUNCTION AND OTHER PROVISIONAL RELIEF
I. FINDINGS OF FACT AND CONCLUSIONS OF LAW
Plaintiff the Securities and Exchange Commission ("SEC") has filed a Complaint seeking a permanent injunction and other relief, and a motion for a preliminary injunction pursuant to Rule 65(a) of the Federal Rules of Civil Procedure. The Court has considered the Complaint, exhibits, memoranda, and declaration, and now finds and concludes that:
A. This Court has subject matter jurisdiction over this action.
B. On November 12, 2009, the SEC filed an Ex Parte Application for a Temporary Restraining Order and Orders: (1) Freezing Assets, (2) Appointing a Temporary Receiver, (3) Prohibiting the Destruction of Documents, and (4) Granting Expedited Discovery, and (5) an Order to Show Cause Re Preliminary Injunction and Appointment of a Permanent Receiver.
C. On November 16, 2009, the Court granted a temporary restraining order ("TRO") and orders freezing assets, appointing Robb Evans & Associates LLC as temporary receiver, and prohibiting the destruction of documents. The Court also ordered to show cause why a preliminary injunction should not issue and why a permanent receiver should not be appointed.
D. As part of its November 16, 2009 TRO, the Court found that there is good cause to believe that Defendants Homestead Properties, L.P., Homestead Limited, L.L.C., IFC, Biddlecome, and Tak might be engaging in, or may continue to engage in, practices that violate Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act"), 15 U.S.C. §§ 77e(a), 77e(c), and 77q(a), Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. §§ 78j(b) and 78o(a), and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5, and Sections 204, 206(1), (2), and (4) of the Investment Advisers Act of 1940 ("Advisers Act"), 15 U.S.C. §§ 80b-4, 80b-6(1), (2) and (4) and Rule 206(4)-8 thereunder, 17 C.F.R. § 275.206(4)-8.
a. "Defendants" refers to Homestead Properties, L.P., Homestead Limited, L.L.C., California Wealth Management Group, d.b.a. IFC Advisory, Heath Biddlecome, and William C. Tak;
b. "Relief Defendants" refers to Homestead Northland MHC, LLC and Jackson MHC, L.L.C.;
c. "Homestead Entities" refers to Homestead Properties, L.P., Homestead Limited, L.L.C., Homestead Northland MHC, LLC and Jackson MHC, L.L.C.
III. PRELIMINARY INJUNCTION
a. Defendants, Relief Defendants and their officers, agents, servants, employees, attorneys, subsidiaries and affiliates, and those persons in active concert or participation with any of them, who receive actual notice of this Preliminary Injunction and Other Provisional Relief, by personal service or otherwise, and each of them, are PRELIMINARILY RESTRAINED AND ENJOINED from directly or indirectly transferring, assigning, selling, hypothecating, changing, wasting, dissipating, converting, concealing, encumbering, or otherwise disposing of, in any manner, any funds, assets, securities, claims, or other real or personal property, including any notes or deeds of trust or other interests in real property, wherever located, of Defendants Homestead Entities or their subsidiaries or affiliates, owned by, controlled by, managed by or in the possession or custody of any of ...