Securities & Exchange Commission v. CMKM Diamonds, Inc.

This is an appeal by Harold Gewerter, a Nevada attorney, seeking review of the Nevada district court’s order denying his motion to quash a subpoena for bank records of his client trust account. The district court concluded that it did not have the authority to consider Gewerter’s motion since the subpoena was issued by another district court. We hold that we have jurisdiction over this appeal in the circumstances of this case, because the bank has no incentive to disobey the subpoena and force an otherwise appealable contempt order. We affirm the district court, because it correctly interpreted the provisions of Rule 45 of the Federal Rules of Civil Procedure governing issuance and quashing of subpoenas.

I. Factual and Procedural Background

In April 2008, the Securities and Exchange Commission (“SEC”) filed a civil action in the United States District Court for the District of Nevada against several defendants, including an individual named John Edwards, alleging that they had violated federal securities laws. In June 2009, the Nevada district court entered a final judgment in favor of the SEC and ordered Edwards to pay nearly $55 million in disgorgement, civil…