USSEC

FINDINGS OF FACT AND CONCLUSIONS OF LAW REGARDING THE PLAINTIFF’S APPLICATION FOR A PERMANENT INJUNCTION

Now before the Court is the plaintiffs application for a permanent injunction. Pursuant to Federal Rule of Civil Procedure 52(a), the Court hereby issues the following Findings of Fact and Conclusions of Law. The plaintiffs request for a permanent injunction is hereby GRANTED.

I.FINDINGS OF FACT

A. Introduction

1. This litigation involves a land development project known as the Rancho Lu-cerne Master Planned Community (“the project,” “the development,” or “Rancho Lucerne”) located in San Bernardino County, California. The project envisions a community with up to 4,257 single family homes on 1,375 acres, a twenty-seven-hole “replica” public golf course, and thirty acres of commercial property. The developer of the project is Pacific Golf Community Development LLC (“Pacific Golf’ or “the developer”), a California limited liability company. The manager and principal of Pacific Golf is Mr. Manoucher Sarbaz.

2. In the course of financing the project, Mr. Sarbaz has worked closely with the defendant Pacific Genesis Group, Inc. (“PGG”), a broker-dealer registered with the United…