Luiz Capuci Jr. went to Brazil after discovering out that his Ponzi scheme, Mining Capital Coin, was being investigated.
Capuci deliberate this motion as a result of he thought that Brazil’s behavior of not extraditing its individuals would protect him from the legislation.
Sadly, issues have not fairly labored out like that.
The SEC is transferring ahead with its civil lawsuit by different service whereas the DOJ is unable to maneuver ahead with its legal case towards Capuci (Capuci remains to be a needed fugitive in hiding).
One thing that Capuci is undoubtedly displeased with.
Capuci expressed his disappointment in an intent doc filed on September 27.
The legislation agency, Wellman and Warren, said within the submitting on behalf of Capuci (proper);
By proposing to depend on Brazilian legislation, Wellman & Warren, LLP, which is particularly representing Defendant Capuci on this case, hereby serves discover that it intends to introduce issues of international legislation.
On August twenty sixth, the SEC submitted its movement for alternate service. By the Hague Conference, the regulator goals to serve Capuci and his confederate in crime, Emerson Pires, within the movement.
The SEC has additionally requested for authorization to serve Capuci by e mail as a result of serving Capuci in individual can take a while. particularly through e mail to the California-based attorneys representing Capuci.
Capuci responds to that by saying, “Brazil doesn’t authorize e mail service on people in its nation,” which is supported by a “assertion of Brazilian authorized authority.”
As a result of e mail will take up essentially the most time, Capuci needs the SEC banned from service.
The SEC acknowledges that the Conference is related on this case. It additionally acknowledges that it could actually perform service through the Conference. It claims that it’s going to take “eight to 12 months to impact service on the person defendants,” which is the one cause why it’s looking for an alternate technique of service.
As a result of it thinks it should take an excessive amount of time, the SEC doesn’t want to serve in accordance with the Conference.
This isn’t a suitable justification for ignoring the express provisions of the Conference.
Capuci contends that if the SEC’s request had been granted, it could be troublesome for him to reach his enchantment towards the injunction towards Mining Capital Coin.
The SEC has till October 4th to reply to Capuci’s reply, which we anticipate submitting inside the coming 24 hours.
Nonetheless, in relation to the MCC injunction, Capuci has additionally submitted a humorous reply to being found making an attempt to promote frozen property.
The SEC moved for Capuci to be held in contempt after studying that he had a number of frozen property property provided on the market.
On September 27, Capuci submitted his rejoinder, arguing
The SEC hasn’t supplied any supporting information for its declare.
The SEC claims to the Courtroom that Capuci bought or in any other case transferred any of the property protected by the preliminary injunction, nevertheless it has supplied no proof to assist this declare.
The SEC’s movement must be rejected because of this alone.
Capuci contends that regardless that the MCC order has successfully frozen his property, itemizing them on the market doesn’t suggest he intends to really promote them.
The SEC has already acknowledged that this habits doesn’t violate the asset freeze. Extra related, nevertheless, is the truth that the preliminary injunction ruling itself doesn’t forbid such conduct.
In different phrases, until the property which were blocked are literally bought, Capuci hasn’t damaged the injunction.
The injunction makes no point out of Capuci’s being forbidden from “attempting” or “making an attempt” to promote his property.
Based on the ruling, Capuci is merely forbidden from “disposing of” or “promoting” his properties.
The qualifying wording that will have prevented Capuci from attempting to promote any of his property might have been included by the SEC, nevertheless it was chosen to not.
The SEC should subsequently reside with the phrase it chosen.
Capuci’s try and wiggle out of being caught is entertaining, however it’s unclear whether or not the court docket will settle for his b.s.
Based on the SEC’s petition, co-defendant Emerson Pires had beforehand bought a frozen Florida property asset.
Pires (proper), who can be going through prices of contempt, has to date ignored all filings within the SEC’s case and has additionally fled to Brazil.
The identical deadline has been set for the SEC to reply to Capuci’s contempt response because it was for the choice service movement.