Securities & Exchange Commission v. Presto Telecommunications, Inc.

MEMORANDUM *

Alfred Louis Vassallo, Jr. appeals the district court’s preliminary injunction and order appointing a receiver in a civil enforcement action brought by the Securities and Exchange Commission (“SEC”) against Vassallo and his company, Presto Telecommunications, Inc. (“Presto”), for alleged violations of federal securities law. Vassallo also appeals the district court’s order of May 24, 2005, which confirms the receiver’s authority to sell Vassallo’s family residence in order to pay the fees, costs, and expenses of the receiver. We affirm in part and dismiss in part.

Because the district court issued a permanent injunction in its final judgment, the preliminary injunction has merged into the final decree. See In re Estate of Ferdinand Marcos Human Rights Litigation, *430 94 F.3d 539, 544 (9th Cir.1996). Accordingly, we dismiss the appeal of the preliminary injunction as moot. See id.

The district court did not abuse its discretion 1 by invoking its inherent equitable power to appoint a receiver and freeze Vassallo’s assets as a form of ancillary relief. See SEC v. Capital Consultants, LLC, 397 F.3d 733 ,. 738 (9th Cir.2005); SEC v. Wencke, 622 F.2d 1363 , 1369 (9th…