Champion-Cain
Securities and Exchange Commission v. Champion-Cain
Opinion
Trial Court Opinion
I. BACKGROUND
23 On August 28, 2019, the Securities and Exchange Commission (“SEC”) brought this 24 action against Defendants ANI Development, LLC (“ANI Development”) and Gina 25 Champion-Cain and Relief Defendant American National Investments, Inc. (“ANI Inc.”), 26 alleging violations of federal securities laws based on a purportedly fraudulent liquor 27 license loan scheme. ECF No. 1. Along with the Complaint, the SEC filed a Joint Motion 28 and Stipulated Request seeking a preliminary injunction, appointment of a permanent Receiver, and other related relief (ECF No. 2), which the Court granted on September 3, 2019. ECF No. (“the Appointment Order”). In the Appointment Order, the Court established an equity receivership, appointing Krista Freitag as Receiver of ANI Development and ANI Inc. and authorizing her to take control over all funds and assets owned, managed, or in the possession or control of the receivership entities. See id. at 14- 16. Relevant here, the Receiver was granted full power over all premises owned, leased, occupied, or otherwise controlled by the receivership entities. Id. at 14. Additionally, 9 …