Upon studying of an investigation into his Ponzi scheme Mining Capital Coin, Luiz Capuci Jr. deserted his life within the US and fled to Brazil.
It was a calculated transfer, with Capuci believing Brazil’s coverage of not extraditing its residents would defend him from justice.
Sadly that hasn’t fairly panned out.
Whereas the DOJ’s felony case towards Capuci is in a stalemate (Capuci stays a wished fugitive in hiding), the SEC is pushing ahead its civil case via various service.
One thing Capuci is undoubtedly not completely satisfied about.
Capuci made his displeasure identified in a September twenty seventh intent submitting.
On behalf of Capuci (proper), the legislation agency Wellman and Warren acknowledged within the submitting;
Wellman & Warren, LLP, specifically showing for Defendant Capuci, hereby offers discover that it proposes to boost problems with international legislation by meaning to depend on the legislation of the Federal Republic of Brazil.
The SEC filed its various service movement on August twenty sixth. Within the movement the regulator seeks to serve Capuci and accomplice in crime Emerson Pires via the Hague Conference.
That may take time, so the SEC has alternatively requested permission to serve Capuci through e mail. Particularly through e mail to Capuci’s California-based attorneys.
Supported by a “declaration of Brazilian authorized authority”, Capuci’s reply to that’s “Brazil doesn’t enable e mail service on people in its nation.”
Capuci needs the SEC barred from service through e mail, as a result of that may waste probably the most period of time.
The SEC admits that the Conference applies on this matter. It additional admits that it might probably effectuate service via the Conference. Its solely cause for looking for another methodology of service is as a result of it contends that it’ll take “eight to 12 months to impact service on the Particular person Defendants.”
The SEC doesn’t wish to serve pursuant to the Conference, because the SEC believes it should take a time interval that’s too lengthy for its liking.
This isn’t a sound cause to avoid the expressed phrases of the Conference.
Capuci additionally argues that if the court docket granted the SEC’s movement, it will undermine his pending attraction towards the Mining Capital Coin injunction.
The court docket has given the SEC till October 4th to file its reply to Capuci’s response, which we’re anticipating over the following 24 hours.
Talking of the MCC injunction although, Capuci has additionally filed a hilarious response to getting caught attempting to promote frozen belongings.
After discovering Capuci had a number of frozen property belongings listed on the market, the SEC moved for Capuci to be present in contempt.
Capuci filed his response on September twenty seventh, arguing;
The SEC has not introduced any proof to substantiate its assertion.
Whereas it represents to the Court docket that Capuci disposed of belongings coated underneath the preliminary injunction, the SEC fails to point out one instance of any property that was both transferred or offered to a 3rd occasion.
Because of this alone, the SEC’s movement ought to be denied.
Capuci argues that, whereas he does certainly have belongings frozen by the MCC injunction listed on the market, that doesn’t equate to an intent to really promote them.
The SEC already acknowledged such conduct shouldn’t be a violation of the asset freeze. However extra importantly, the preliminary injunction order itself doesn’t prohibit such exercise.
In different phrases, Capuci hasn’t violated the injunction till the second the frozen belongings are literally offered.
The order doesn’t include language that Capuci is prohibited from “making an attempt” or “attempting” to promote his properties.
As a substitute, the order states that Capuci is simply prohibited from truly “disposing of” or “promoting” his properties.
The SEC might have included the qualifying language that may have precluded Capuci from even making an attempt any disposition of his belongings, however it determined to not.
Subsequently, the SEC should reside with the language it selected.
Whereas Capuci’s try and weasel out of getting caught is definitely amusing, whether or not the court docket buys his bullshit stays to be seen.
Of their submitting, the SEC famous co-defendant Emerson Pires had already offered a frozen Florida property asset.
Pires (proper) can be up for contempt however, additionally having fled to Brazil, has so far ignored all filings within the SEC’s case.
As with the choice service movement, the SEC has been given until October 4th to file a reply to Capuci’s contempt response.