Trabulse

PRELIMINARY INJUNCTION ORDER AND OTHER ANCILLARY RELIEF

INTRODUCTION

In this enforcement action, the Securities and Exchange Commission charges defendant Alexander James Trabulse, a San Francisco hedge fund manager, with defrauding investors by misrepresenting the fund’s profitability and misusing fund assets. Fahey Fund, L.P., Fahey Financial Group, Inc., International Trade & Data, and ITD Trading are named as the relief defendants. The SEC moves for an order enjoining Trabulse from violating the securities laws and making distributions to himself pending further order. The SEC also moves for the following ancillary relief: (i) appointing a monitor to oversee the operations of defendant and relief defendants; (ii) requiring a verified accounting; (iii) preventing destruction of documents; and (iv) permitting expedited discovery. For the reasons stated below, plaintiffs motion for a preliminary injunction and other ancillary relief is largely GRANTED.

STATEMENT

Defendant Alexander Trabulse operates the hedge funds at issue. He formed Fa-hey Fund, L.P. in 1997 to invest in securities and other financial instruments. He remains its general partner. Fahey Financial Group is a…