Preliminary injunction granted against Daniel Filho & DFRF
In addition to a hearing heard in the Daniel Filho criminal case, Tuesday also saw a hearing take place in the SEC’s civil complaint against Filho and DFRF Enterprises.
The hearing was brief and resulted in a preliminary injunction granted against defendants DFRF Enterprises, Daniel Filho, Wanderley Dalman, Gaspar Jesus, Eduardo Da Silva, Heriberto Valdes, Jeffrey Feldman and Romildo Cunha.
The granting of the injunction now sees the above defendants immediately ordered to:
- cease employing any device, scheme or artifact to defraud
- cease making any untrue statements or omitting to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading
- cease engaging in any act, practice or course of business which operated or could operate as a fraud or deceit upon any person
- not obtain any property by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading
- cease engaging in any transaction, practice or course of business which operates or would operate as a fraud or deceit upon the purchaser
- cease making use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell any security through the use or medium of any prospectus, unless a registration is in effect as to such security
- cease carrying or causing to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any security for the purpose of sale or for delivery after sale, unless a registration is in effect as to such security
- cease making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed with the Commission as to such security
- prohibited from taking any action to withdraw, sell, pay transfer, dissipate, assign, pledge, alienate, encumber, dispose of or diminish the value of in any way any funds or other assets in their possession (outside of ordinary living expenses)
- cease soliciting, accepting or depositing any monies obtained from actual or prospective investors in activities related to DFRF Enterprises
- prohibited from opening new bank accounts at any bank, brokerage firm or other financial institution
- prohibited from destroying, mutilating, concealing, altering, disposing of, transferring custody of any items, including not limited to any books, records, documents, correspondence, contracts, agreements, assignments, obligations, tape recordings, computer media or other property relating to themselves or DFRF Enterprises
The preliminary injunction not only applies to the named defendants, but also any ‘agents, servants, employees, attorneys and other persons in active concert or participation with them’.
Some thirteen banks were named in the injunction, with Bank of America, Central Florida Educators Federal Credit Union, Citibank, Citizens Bank, Eastern Bank, First Bank of Peurto Rico, JPMorgan Chase Bank, Regions Bank, Santander Bank, Suncoast Credit Union, SunTrust Bank, TD Bank and Wells Fargo Bank all ordered to continue holding and retaining any funds related to the defendants.
(The banks) shall continue to hold and retain such funds or other assets within their control and shall prohibit the withdrawal, removal, sale, payment, transfer, dissipation, assignment, pledge, alienation, encumbrance, diminution in value or other disposal of any such funds or other assets.
All such funds or other assets are hereby frozen.
The SEC were also granted permission to ‘conduct document discovery for the limited purpose of monitoring and seeking judicial enforcement of the asset freeze’.
In making her decision, Judge Patti ruled that it was “reasonably likely” that
- Daniel Filho and co-defendants had directly or indirectly engaged in the violations alleged in the SEC’s complaint
- unless restrained and enjoined by a court-order, the violations will be repeated
- Daniel Filho and co-defendants have been unjustly enriched through the activities alleged in the SEC’s complaint
- unless ordered not to by the court, Daniel Filho and co-defendants may dissipate and conceal assets that could be subject to an order of disgorgement or an order to pay civil monetary penalties
The granting of the preliminary injunction was also found to be “in the public interest”.
Footnote: Our thanks to Don@ASDUpdates for providing a copy of Judge Saris’ July 28th order granting the SEC a preliminary injunction against DFRF Enterprises, Daniel Filho, Wanderley Dalman, Gaspar Jesus, Eduardo Da Silva, Heriberto Valdes, Jeffrey Feldman and Romildo Cunha.