Case 1:15-cv-07400-CM-JLC Document 3 Filed 09/18/15 Panera ¢. JUDGE MCMANCN USDC SDNY DOCUMENT ELECTRONICALLY FILED DOC #: UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK RONALD W. FREEMAN and CYNTHIA FREEMAN, Plaintiffs, a5 wW 7400 -against- INVICTUS CAPITAL, LLC, JOHN CARRIS INVESTMENTS LLC, ORDER TO SHOW CAUSE GEORGE CARRIS, MICHAEL K. CLARK, Defendants. X Upon the Affidavit of Plaintiff Ronald W. Freeman swom to on September 17, 2015, Affirmation of Michael S. Finkelstein, Esq., affirmed on September 17, 2015, and the ‘Memorandum of Law in Support of this Order to Show Cause, it is hereby ORDERED that the above-named Defendants show cause before this Court, at 500 Pearl Street, New York NY, in Room (1, at_[0 Am, on OF S015 ores soon thereafter as counsel can be heard, why an order should not be issued pursuant to Rule 65 of the Federal Rules of Civil Procedure, granting Plaintiffs’ request: 1. For a preliminary injunction restraining Defendants, and any other person in active concert or participation with Defendants, from transferring, encumbering, hypothecating, and/or dissipating either Plaintiffs’ Four Hundred Sixty-Five Thousand Dollars ($465,000.00) entrusted to Defendants, or any assets or property to which any part of Plaintiffs’ money was used to acquire an interest or create value; 2. For a pre-judgment attachment in the amount of Four Hundred Sixty-Five Thousand Dollars ($465,000.00) and freezing TD Bank Account No. 4262148616;Case 1:15-cv-07400-CM-JLC Document3 Filed 09/18/15 Page 2 of 4 3. For the imposition of a constructive trust over any and all assets to which any part of Plaintiffs’ Four Hundred Sixty-Five Thousand Dollars ($465,000.00) was transferred; 4, For Defendants to provide an accounting as to the specific identity or whereabouts of the Plaintiffs’ Four Hundred Sixty-Five Thousand Dollars ($465,000.00) paexi 2 s = — Over IT IS FURTHER ORDERED that pending the hearing on this motion{ Defertants-aad. AMDT 15 PU MERE cA DAUD YSot YE hang what Wet) Defendants\ officers, agents, servants, employees, attdmeys, and other persons in active concert Yank Hai 4 f or participation with are hereby: restrained from transferring, encumbering, hypothecating, and/or dissipating monies to which any part of Plaintiffs’ Four Hundred Sixty- Five Thousand Dollars ($465,000.00) was transferred or used to create an interest in or create value in assets; and it is further ORDERED that a copy of this order, together with the papers upon which it is granted, be / served upon the Defendants omtzeimrexpectivesounsel on or before Cjitewbee > Don” Ye Fee mesh Current pub if other! y rert matt ONE by certified mail{andharamctrserieebe deemed good and suicient. 9 7 otat le Kled ‘The evidence submitted in support of Plaintif’s application indicates that in or about (2, Bk June 2013, the Financial Industry Regulatory Authority (“FINRA”) brought an enforcement “we | Crk proceeding (“DOE”) against John Carris Investments (“John Carris”) for selling interests in Invictus Capital, its own holding company, which was already insolvent, and therefore was functioning as a Ponzi scheme. Nevertheless, between December 2013 and March 2014, through its broker, Olori Hamilton (a.k.a. Dennis Hamilton) John Carris sold Four Hundred Fifteen ‘Thousand Dollars ($415,000.00) worth of preferred stock to Plaintiffs, knowing that same was worthless. The money was wired from Claimants’ account held by COR Clearing to an account at TD Bank, where it was used to pay other investors, and, upon information and belief, theCase 1:15-cv-07400-CM-JLC Document 3 Filed 09/18/15 Page 3 of 4 Plants hl tam sepackter Arey Craoty ft Machen ac idee, % bo Che hf 60% ° Qt Sahn Cares aver teens OS ae ay) te mactn y Bak vote fr ow. c WaiyP ble at TD Bak hee ovod _ © amr @ A. Daratin Rank om eflow~ nied net Sn or wt Ty Bronk feeenl re mite le “wt 2 Contr dates nn barerte fe fhe December ty re YS REM 24, US, Docume rent be gre 4yCase 1:15-cv-07400-CM-JLC Document 3 Filed 09/18/15 Page 4 of 4 Principals of John Carris, including George Carris and Michael Clark. After a plenary hearing FINRA Doe expelled John Carris from FINRA membership and barred George Carris from Res prain tll fee lek ot CFE, , / Dated: seman tee Cro Fes te om October / New York, New York Is Commer Cy g chanhss ) associating with any FINRA member firm in any capacity. USD.