The opinion of the court was delivered by: Terrence F. McVerry United States District Court Judge
TEMPORARY RESTRAINING ORDER
AND NOW, this 20th day of February 2009, upon consideration of PLAINTIFFS' MOTION FOR TEMPORARY RESTRAINING ORDER AND/OR PRELIMINARY INJUNCTION (Document No. 2) and affidavits, and after hearing in person or by telephone on this date from counsel for all parties except for Deborah Duffy and Westridge Capital Management Enhancement Funds, Inc., as well as counsel for non-party United States Commodity Futures Trading Commission ("CFTC"),*fn1 the Court finds that the standards set forth in Fed. R. Civ. P. 65 have been met except as to Defendants Jack Eldred Reynolds, James Carder and Deborah Duffy, and therefore, it is hereby ORDERED, ADJUDGED and DECREED that PLAINTIFFS' MOTION FOR TEMPORARY RESTRAINING ORDER AND/OR PRELIMINARY INJUNCTION (Document No. 2) is GRANTED IN PART as follows:
1. Effective immediately, Defendants Westridge Capital Management, Inc., WG Trading Company Limited Partnership, Westridge Capital Management Enhancement Funds, Inc., WG Trading Investors, LP, Paul Greenwood, and Stephen Walsh, and any other person acting on behalf of any of them, are prohibited from soliciting or accepting any customer or pool participant funds or placing trades for any pools that they operate or accounts that they own or control or which are held in any of their names, except for liquidation of existing positions;
2. Effective immediately, Defendants Westridge Capital Management, Inc., WG Trading Company Limited Partnership, Westridge Capital Management Enhancement Funds, Inc., WG Trading Investors, LP, Paul Greenwood, and Stephen Walsh and any other person acting on behalf of any of them are prohibited from disbursing or transferring any funds (other than to margin existing positions or for payment of normal and reasonable business operating expenses and payroll for employees other than Greenwood and Walsh) from any accounts (bank, trading, or any other types of accounts, including but not limited to securities, and any other investment instruments or investment vehicles or loan agreements) which any of them owns or controls (including customer and pool accounts) or which are held in any of their names, without prior approval from the National Futures Association ("NFA") or the Court.
3. With the exception of normal and reasonable household and personal living expenses and attorney fees, costs and expenses, Defendants Paul Greenwood and Stephen Walsh are prohibited from concealing, transferring, disposing, gifting, encumbering, selling, liquidating or conveying any interest in any real or personal property in which said Defendant has any ownership or other legal or equitable interest, including, without limitation, any and all assets of the individual Defendants held in any financial institution. Any financial institution, or any other person or entity served with a copy of this Order, shall for the pendency of this Action or until further order of Court, hold and retain within such entity's or person's control, and prohibit the withdrawal, removal, assignment, transfer, pledge, hypothecation, encumbrance, disbursement, dissipation, conversion, sale, liquidation or other disposal of any assets held by or under such entity's or person's control: (a) on behalf of, or for the benefit of said Defendant(s); (b) in any account maintained in the name of, or subject to withdrawal by said Defendant(s); or (c) that are subject to access or use by, or under the signatory power of, said Defendant(s);
4. Defendants Westridge Capital Management, Inc., WG Trading Company Limited Partnership, Westridge Capital Management Enhancement Funds, Inc., WG Trading Investors, LP, Paul Greenwood, and Stephen Walsh are prohibited from destroying, mutilating, concealing or disposing of any books and records, documents, correspondence, brochures, manuals, electronically stored data or tape records of the Defendants, wherever located. To the extent that said Defendants have heretofore produced business documents and/or records to any government or regulatory agency, including NFA, within the preceding six months, a copy of said documents and/or records shall be produced to Plaintiffs on or before Monday, March 2, 2009. Hereafter, during the course of this litigation said Defendants shall simultaneously produce to Plaintiffs a copy of any and all business documents and/or records produced to any government or regulatory agency;
5. The Court takes under advisement the request of Plaintiffs and a number of Defendants to appoint a Receiver. Counsel for the parties shall confer with one another and consult with any interested government agencies, including the CFTC, in an effort to agree upon the appointment of a named Receiver and the duties to be assumed by such Receiver. Counsel shall file an appropriate motion or report to the Court regarding this aspect of the matter on or before Monday, March 2, 2009.
6. Without any objection from counsel for Defendants who participated in this proceeding, the requirement for Plaintiffs to post a bond is waived at this time.
7. An evidentiary hearing on this Temporary Restraining Order is scheduled on Thursday, ...