Consent Injunction SEC v. Arise Bank Et Al.
Consent Injunction SEC v. Arise Bank Et Al.
Consent Injunction SEC v. Arise Bank Et Al.
This matter came before the Court this 9th day of March, 2018 on the unopposed motion of
Plaintiff the SEC to enter a Preliminary Injunction against Defendants Jared Rice, Sr. and
AriseBank (“Defendants”).
Without admitting the allegations made in the Complaint, Defendants have agreed that this
Court has jurisdiction over them and over the subject matter of this action and have agreed to waive
The Court having considered the SEC’s motion and supporting evidence, the parties’
IT IS THEREFORE ORDERED:
I.
During the pendency of this case, each Defendant is restrained and enjoined from violating
Sections 5(a) and 5(c) of the Securities Act [15 U.S.C. §§ 77e(a) and 77e(c)] by, directly or
interstate commerce or of the mails to sell through the use or medium of any written
Case 3:18-cv-00186-M Document 61 Filed 03/09/18 Page 2 of 7 PageID 1078
ii. for the purpose of sale or delivery after sale, carrying or causing to be carried
interstate commerce or of the mails to offer to sell or offer to buy through the use or
As provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
binds the following who receive actual notice of this Order by personal service or otherwise: (a)
the officers, agents, servants, employees, and attorneys of the Defendants; and (b) other persons in
active concert or participation with the Defendants, or with anyone described in (a).
II.
During the pendency of this case, each Defendant is restrained and enjoined from violating
Section 17(a)(2) of the Securities Act [15 U.S.C. § 77q(a)(2)] in the offer or sale of any security
commerce or by use of the mails, directly or indirectly, by at least negligently obtaining money
fact necessary in order to make the statements made, in light of the circumstances under which
As provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
binds the following who receive actual notice of this Order by personal service or otherwise: (a)
the officers, agents, servants, employees, and attorneys of the Defendants; and (b) other persons in
Page 2 of 7
Case 3:18-cv-00186-M Document 61 Filed 03/09/18 Page 3 of 7 PageID 1079
active concert or participation with the Defendants, or with anyone described in (a).
III.
During the pendency of this case, each Defendant is restrained and enjoined from
violating, directly or indirectly, Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule
interstate commerce, or of the mails, or of any facility of any national securities exchange, in
connection with the purchase or sale of any security, knowingly or recklessly making any untrue
statement of a material fact or to omit to state a material fact necessary in order to make the
statements made, in light of the circumstances under which they were made, not misleading.
As provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
binds the following who receive actual notice of this Order by personal service or otherwise: (a)
the officers, agents, servants, employees, and attorneys of the Defendants; and (b) other persons in
active concert or participation with the Defendants, or with anyone described in (a).
IV.
Defendants and persons acting on behalf of a Defendant who receive actual notice of this Order by
personal service or otherwise are restrained and enjoined from, directly or indirectly, making any
advances on any line of credit and any charges on any credit card), or effecting any sale, gift,
sufficient proof to the Court of sufficient funds or assets to satisfy all claims alleged in the SEC's
Complaint, or the posting of a bond or surety sufficient to assure payment of any such claim.
Further, any bank, trust company, broker-dealer, financial institution, depository (or other)
institution, coin exchanges, entity, or individual holding accounts or assets for or on behalf of any of
Page 3 of 7
Case 3:18-cv-00186-M Document 61 Filed 03/09/18 Page 4 of 7 PageID 1080
the Defendants shall make no transactions in assets, securities, investments, funds, digital
currencies, virtual currencies, cryptocurrencies, or any other tangible or intangible assets (excepting
funds, digital currencies, virtual currencies, cryptocurrencies, or any other tangible or intangible
assets (including extensions of credit, or advances on existing lines of credit), including the honor of
any negotiable instrument (including, specifically, any check, draft, or cashier's check) purchased by
Notwithstanding the foregoing, each Defendant shall be allowed to receive, or have spent on
their behalf, certain funds from third parties. These funds must: (1) be given voluntarily by those
third parties, without Defendants making or controlling the decision to contribute the funds; and (2)
be sourced only from funds that Defendants do not control and never have controlled or from funds
earned by Defendants through lawful employment after the date of this order. These funds may be
spent on living expenses for Defendants and their dependents, Defendant’' legal fees, and court
ordered expenses such as child support. Defendants will deposit and maintain any funds received in
specifically identified accounts, which are to be used for those purposes only. Those accounts may
furnish login credentials to any such accounts to the SEC and, upon the request of the SEC, provide
evidence of the sources and uses of funds. Subject to the voluntariness and sourcing restrictions
noted above, third parties may pay Defendants’ legal fees directly to each Defendant’s lawyer
As provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
binds the following who receive actual notice of this Order by personal service or otherwise: (a)
the officers, agents, servants, employees, and attorneys of the Defendants; and (b) other persons in
active concert or participation with the Defendants, or with anyone described in (a).
Page 4 of 7
Case 3:18-cv-00186-M Document 61 Filed 03/09/18 Page 5 of 7 PageID 1081
V.
The SEC may cause a copy of this Order to be served on any bank, trust company, broker-
dealer, financial institution, coin exchange, depository (or other) institution, entity, or individual
either by United States mail, email, facsimile, or by an alternative provision for service permitted
by Rule 4 of the Federal Rules of Civil Procedure, or as this Court may direct by further order, as
if such service were personal service, to restrain and enjoin any such bank, company, institution,
exchange, entity, or individual from disbursing assets, directly or indirectly, to or on behalf of the
VI.
The Defendants, and any entities or affiliates under their control, are restrained and
enjoined from destroying, removing, mutilating, altering, concealing, secreting, or disposing of,
in any manner, any of their books, records, documents, accounts, account passwords, encryption
passwords, computer passwords, device PINs and passwords, cryptographic keys, or any
instruments, data, and papers relating in any manner to the matters set forth in the SEC's
Complaint and the underlying motion and brief, unless otherwise ordered by this Court.
As provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
binds the following who receive actual notice of this Order by personal service or otherwise: (a)
the officers, agents, servants, employees, and attorneys of the Defendants; and (b) other persons in
active concert or participation with the Defendants, or with anyone described in (a).
VII.
The United States Marshal in any district in which any of the Defendants reside resides,
transacts business, or may be found, is hereby authorized and directed to make service of process
at the request of the SEC. Furthermore, the SEC is permitted to effect service of all pleadings
and other papers, including court orders, by facsimile, overnight courier, email, or mail upon the
Page 5 of 7
Case 3:18-cv-00186-M Document 61 Filed 03/09/18 Page 6 of 7 PageID 1082
Defendants and their agents or their attorneys or by an alternative provision for service permitted
by Rule 4 of the Federal Rules of Civil Procedure, or as this Court may direct by further order.
VIII.
Defendant Rice shall surrender his passport to the Clerk of the Court and is barred from
traveling outside the United States, until further Order of this Court.
IX.
The Defendants, and their directors, officers, agents, servants, employees, attorneys,
depositories, banks, and those persons in active concert or participation with anyone or more of
(A) take such steps as are necessary to repatriate to the territory of the United States all
are held by them or are under their direct or indirect control, jointly or singly, and
transfer such funds into the Registry of the United States District Court, Northern
(B) provide the SEC and the Court a written description of the funds, assets, securities,
repatriated.
X.
The hearing on the SEC's Motion for a Preliminary Injunction, scheduled to take place at
Tuesday, March 13, 2018, at 9:00 a.m. in Courtroom 1570, is CANCELLED as to Defendants Rice
and AriseBank.
XI.
This order shall remain in effect during the pendency of this case or until further order of the
Page 6 of 7
Case 3:18-cv-00186-M Document 61 Filed 03/09/18 Page 7 of 7 PageID 1083
Court.
________________________________
BARBARA M. G. LYNN
CHIEF JUDGE
s/ John A. Garland_________________
John A. Garland
Garland, Samuel & Loeb, P.C.
3151 Maple Drive
Atlanta, GA 30305
404-975-0459
[email protected]
Counsel for Defendant Jared Rice, Sr.
Page 7 of 7