Moorehead

ORDER GRANTING WADE CO-WART’S MOTION TO EXECUTE ON THE INJUNCTION BOND

This matter comes before the Court on Wade Cowart’s motion to execute against bond. The Court finds this motion suitable for determination on the papers submitted and without oral argument pursuant to Civil Local Rule 7.1(d)(1).

BACKGROUND

Jack Moorehead is the inventor and co-inventor of water purification technology. Moorehead formed a company called Automatic Control Technologies, Inc. (“ACT”). In 1994, Automatic Control Corporation (“ACC”) purchased the assets and assumed selected liabilities of ACT. ACC then did a reverse merger with Coronado Capital Corporation (“CCC”), a publicly-traded shell. The merged company became Plaintiff Sionix. Sionix is involved in the research, development, and creation of water reclamation technologies for commercial use.

Moorehead transferred seven patents relating to water purification technology to the corporations he formed. Sionix currently owns these seven patents. Moore-head, S. Donna Friedman, and Laura and Cheryl Friedman are former Sionix officers and directors and Sionix shareholders. Beginning in 1998 and up to March, 1999, Wade Cowart purchased Sionix shares…