Stratos

ESG Capital Partners LP v. Stratos

Good Law

22 F. Supp. 3d 1042·2014 WL 2009102·2014 U.S. Dist. LEXIS 67919

United States District Court, Central District of CaliforniaMay 16, 2014Case No. 2:13-cv-01639-ODW(SHx)California2,039 words

Opinion

Lead Opinion

Wright, J.

ORDER DENYING DEFENDANT TROY STRATOS’S MOTION TO STAY PROCEEDINGS PENDING CRIMINAL CASE RESOLUTION [131]

I. INTRODUCTION

The United States Government alleges that Defendant Troy Stratos engaged in *1044 two separate schemes to defraud investors interested in purchasing pre-IPO Face-book shares. The first scheme, which the Government alleges took place between 2006 and 2007, involved Nicole Murphy. (Id.) The second scheme, which the Government alleges took place between 2010 and 2012, involved Plaintiff ESG Capital Partners LP and its limited partners (collectively, “ESG”). (Id.) On May 28, 2013, the Government filed a superseding indictment against Stratos, adding various fraud counts based on the ESG scheme. (Id.)

In March 2018, ESG filed this action against Stratos based in part on the same set of facts the Government alleges in the superseding indictment. After answering the Complaint in August 2013, Stratos filed this Motion to Stay Proceedings Pending Criminal Case Resolution on April 7, 2014. Stratos argues that a stay is warranted because forcing him to engage in discovery with ESG with jeopardize his Fifth Amendment privilege against self-incrimination. (Mot. 1-2.) But…

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