In what is basically a continuation of litigation previous to the 2015 case freeze, the SEC has filed a renewed default judgment movement towards DFRF Enterprises.
Of their February 1st movement the SEC argues that DFRF Enterprises is in default, as a result of Daniel Filho filed a response to their unique compliant on behalf of the corporate.
Filho just isn’t an lawyer, and DFRF just isn’t permitted to proceed as a professional se defendant. The Fee requests that the Court docket enter a default judgment towards DFRF.
Daniel Filho (proper) owned and operated DFRF Enterprises.
Following felony proceedings drawn out over various years, Filho was declared incompetent to face trial in July, 2018.
The SEC asserts DFRF Enterprises
obtained no proceeds from gold mining operations. DFRF paid no insurance coverage premiums to Accedium.
DFRF obtained no proceeds from a credit score line with Platinum Swiss Belief. DFRF made no charitable donations.
DFRF didn’t register its inventory with the Fee.
Defendants Filho, Valdes, Dalman, Jesus, and Da Silva knew or have been reckless in not figuring out that their representations on behalf of DFRF have been materially false and deceptive.
Between June 2014 and Might 2015, DFRF raised greater than $15 million from greater than 1,400 buyers.
DFRF had no unbiased income besides the cash obtained from buyers.
Throughout the identical interval, DFRF paid roughly $1.6 million to buyers for the return of principal or purported month-to-month funds. DFRF made these funds solely by recycling a portion of the funds obtained from different buyers.
In different phrases, DFRF used cash obtained from some buyers to pay different buyers – the hallmark of a Ponzi scheme.
The SEC argues that as a result of DFRF Enterprises has defaulted, that it’s ‘factual allegations should be taken as true‘.
The Fee requests that the Court docket enter a remaining judgment as to DFRF (within the kind submitted herewith) that features a everlasting injunction towards future violations of the related securities legal guidelines, an order to pay a complete of $17,669,640 for disgorgement and prejudgment curiosity, and an order to pay an acceptable civil penalty.
As per the SEC vs. DFRF Enterprises case docket, an Different Dispute Decision Listening to has been scheduled for Might seventh.
I’m not clear on whether or not the SEC’s default judgment movement will probably be dominated on previous to the ADR listening to.
I’ll be checking the case docket periodically although so keep tuned for updates.
Replace twenty ninth April 2019 – As per an April twenty fourth order, the scheduled Might seventh mediation listening to has been cancelled.
The cited purpose for the cancellation is ‘the case just isn’t ripe for mediation at the moment‘.
Replace twelfth June 2019 – An entry of default was recorded towards DFRF Enterprises on Might 14th.
A subsequent $17.9 million greenback remaining judgment was entered on June fifth.