United States District Court, C.D. California, Southern Division
PRELIMINARY INJUNCTION AGAINST ALL
DEFENDANTS
CORMAC
J. CARNEY UNITED STATES DISTRICT JUDGE
This
matter came before the Court upon the Application of
Plaintiff Securities and Exchange Commission
("SEC") for a Temporary Restraining Order, Order to
Show Cause Why a Preliminary Injunction Should Not Be
Granted, and Orders (1) Freezing Assets; (2) Repatriating
Assets; (3) Requiring Accountings; and (4) Prohibiting the
Destruction of Documents (Dkt. No. 4, the "TRO
Application"), and upon the SEC's Motion for Orders
Requiring the Repatriation of Assets and Accountings (Dkt.
No. 15, the "Motion for Repatriation and
Accountings")
The
Court, having considered the SEC's Complaint, the TRO
Application, the supporting Memorandum of Points and
Authorities, the supporting declarations and exhibits, and
the other evidence and argument presented to the Court,
entered a Temporary Restraining Order, Order to Show Cause
Why a Preliminary Injunction Should Not Be Granted, and
Orders (1) Freezing Assets; and (2) Prohibiting the
Destruction of Documents (Dkt. No. 14, the "TRO");
The Court, having considered the Defendants' oppositions
to the TRO and the Preliminary Injunction, the
Defendants' opposition to the SEC's Motion for
Repatriation and Accountings, and the SEC's papers
replying thereto, finds that:
A. This Court has jurisdiction over the parties to, and the
subject matter of, this action.
B. The SEC has made a sufficient and proper showing in
support of the relief granted herein, as required by Section
20(b) of the Securities Act of 1933 ("Securities
Act") (15 U.S.C. s 77t(b)) and Section 21(d) of the
Securities Exchange Act of 1934 ("Exchange Act")
(15 U.S.C. § 78u(b)) by evidence establishing a
prima facie case and reasonable likelihood that the
Defendants have engaged in, are engaging in, are about to
engage in, and will continue to engage in, unless restrained,
transactions, acts, practices and courses of business that
constitute violations of Section 17(a) of the Securities Act,
15 U.S.C. § 77q(a), and Section 10(b) of the Exchange
Act, 15 U.S.C. § 78j(b), and Rule 10b-5 thereunder, 17
C.F.R. § 240.10b-5.
C. Good cause exists to believe that, unless restrained and
enjoined by order of this Court, Defendants will dissipate,
conceal, or transfer assets which could be the subject to an
order directing disgorgement or the payment of civil money
penalties in this action. It is appropriate for the Court to
issue this Preliminary Injunction to prevent the dissipation
of assets.
D. Good cause exists to believe that the repatriation of
assets held in foreign locations is necessary.
E. Good cause exists to believe that an accounting of assets
is necessary.
F. Good cause exists to believe that, unless restrained and
enjoined by order of this Court, Defendants may alter or
destroy documents relevant to this action.
I.
IT IS
HEREBY ORDERED that the SEC's a Preliminary Injunction
shall issue and the SEC's Motion for Repatriation and
Accountings is GRANTED.
II.
IT IS
FURTHER ORDERED that Defendants Charles C. Liu
("Liu"); Xin Wang a/k/a Lisa Wang
("Wang"); Pacific Proton Therapy Regional Center,
LLC ("Pacific Proton"); Pacific Proton EB-5 Fund,
LLC ("PPEB5 Fund"); and Beverly Proton Center, LLC
f/k/a Los Angeles County Proton Therapy, LLC ("Beverly
Proton"), 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 Order, by personal service
or otherwise, and each of them, be and hereby are
preliminarily restrained and enjoined from, directly or
indirectly, in the offer or sale of any ...