CIVIL ACTION NO.: 1: 15cv538-MHT - DINAR, CORP., INC.

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U.S. COMMODITY FUTURES
TRADING COMMISSION,
    
                   Plaintiff,

                  v. 

DINAR, CORP., INC.;
MY MONEX, INC., a Nevada Corporation;
and HUSAM TAYEH 
                      
                   Defendants, 

THEODORE S. HUDSON, II; and
MY MONEX, INC., an Alabama Corporation
                        

                   Relief Defendants                            
 
***********************************



CIVIL ACTION NO.:  1: 15cv538-MHT

FILED UNDER SEAL

_______________________________________

 
SEALED ORDER GRANTING COMMISSION'S EX PARTE STATUTORY RESTRAINING ORDER

Plaintiff, the U.S. Commodity Futures Trading Commission ("Commission"), has filed a
Complaint  for  Permanent  Injunction  and  Other  Relief,  and  has  moved,  pursuant  to  Section
6c(a)  of  the  Commodity  Exchange  Act  (the  "Act"),  7  U.S.C.  $  13a-1(a)  (2012)  and  Federal
Rule  of  Civil  Procedure  ("Fed.  R.  Civ.  P.")  65(b),  for  an  in  camera,  ex  parte  statutory
restraining order enjoining Defendants Dinar Corp, Inc. ("DCI"), My Monex, Inc., a Nevada
corporation ("Monex NV") and Husam Tayeh ("Tayeh") (collectively the "Defendants") and
Relief  Defendants  Theodore  S.  Hudson,  II  ("Hudson")  and  My  Monex,  Inc.,  an  Alabama
corporation ("Monex  AL")  (collectively  the "Relief  Defendants"),  from  destroying,  altering,
or disposing of, or refusing to permit authorized representatives of the Commission to inspect
and  copy  any  books  or  records  or  other  documents,  including  electronically  stored 
information  ("ESI"),  and  further  enjoining  Defendants  and  Relief  Defendants  from
withdrawing,  transferring,  removing,  dissipating,  or  disposing  of  any  funds,  assets  or  other
property.    The  Court  has  considered  the  pleadings,  declarations,  exhibits,  and  memorandum
filed in support of the Commission's motion for a statutory restraining order, and finds that:

     1.  This Court has jurisdiction over the parties and over the subject matter of this
action pursuant to Section 6c of the Act, 7 U.S.C. $ 13a-1 (2012), and Section 2(c)(2) of the
Act, 7 U.S.C. $ 2(c)(2) (2012).

     2.  Venue lies properly within this District pursuant to Section 6c(e) of the Act, 7
U.S.C.  13a-1(e)  (2012)  in  that  the  acts  or  practices  described  in  the  Complaint  took  place
and/or are taking place within this District.

     3.  There is good cause to believe that Defendants have engaged in, are engaging
in  and  are  about  to  engage  in  certain  unlawful  conduct,  including,  but  not  limited  to:  a
fraudulent  scheme  involving  the  offering  of  agreements,  contracts  or  transactions  in  offexchange  foreign  currency  ("forex")  on  a  leveraged,  margined,  or  financed  basis,  totaling
more than $27 million, to retail customers who were not eligible contract customers ("ECPs")
and that do not result in actual delivery of forex within two (2) days of the transaction date(s);
the  failure  of  DCI  and  Monex  NV  to  register  with  the  Commission  as  registered  foreign
exchange dealers ("RFED"); and the failure of Tayeh to register with the Commission as an
associated person ("AP") of the RFEDs DCI and/or Monex NV, in connection with financed
retail  forex  transactions  as  described  in  Section  2(c)(2)(C)(i)  of  the  Act,  7  U.S.C.
$ 2(c)(2)(C)(i) (which are subject to the anti-fraud provisions of Section 4b(a)(2)(A) and (C)
of  the  Act,  7  U.S.C.  $  6b(a)(2)(A),  (C),  pursuant  to  Sections  2(c)(2)(C)(ii)(I)  and
2(c)(2)(C)(iv) of the Act, 7 U.S.C. $$ 2(c)(2)(C)(ii)(I), 2(c)(2)(C)(iv)), in violation of Sections
2(c)(2)(C)(iii)(I)(aa),  and  4b(a)(2)(A),  (C)  of  the  Act,  7 U.S.C.  $$ 2(c)(2)(C)(iii)(I)(aa)  and
6b(a)(2)(A),  (C)  (2012),  and  Commission  Regulation  5.3(a)(6)(i)  and  (ii),  17  C.F.R.
$5.3(a)(6)(i)  and  (ii)  (2014).    In  addition,  there  is  good  cause  to  believe  that  some  of  the
Defendants' customers' funds have been and/or are currently held in one or more accounts in
the name of, or under the control of, Relief Defendants, who have no legitimate interest in or
entitlement to these funds received as a result of Defendants' unlawful conduct. 

     4.  There  is  good  cause  to  believe  that  immediate  and  irreparable  damage  to  the
Court's ability to grant effective final relief for customers in the form of monetary redress will
occur  from  the  sale,  transfer,  assignment,  or  other  disposition  by  Defendants  and/or  Relief
Defendants  of  assets  or  records  unless  Defendants  and  Relief  Defendants  are  immediately
restrained and enjoined by Order of the Court.

     5.  There  is  good  cause  for  the  Court  to  impose  a  restraining  order  prohibiting
Defendants and Relief Defendants and their agents, servants, employees, attorneys, and other
persons who are in active concert or participation with them, from withdrawing, transferring,
removing, dissipating, or disposing of any funds, assets, or other property owned, controlled,
managed,  or  held  by  or  on  behalf  of,  or  for  the  benefit  of  Defendants  and/or  Relief
Defendants.

     6.  There  is  good  cause  for  entry  of  an  order  prohibiting  Defendants  and  Relief
Defendants,  and  their  agents,  servants,  employees,  assigns,  attorneys,  and  persons  in  active
concert  or  participation  with  the  Defendants  and/or  Relief  Defendants,  including  any
successor thereof, from destroying records and/or denying agents of the Commission access to
inspect  and  copy  records  to  ensure  that  Commission  representatives  have  immediate  and
complete access to all such books and records.

     7.  Absent the entry of this statutory restraining order, the Defendants and Relief
Defendants are likely to dissipate or transfer assets and destroy business records. 

     8.  This  is  a  proper  case  for  granting  an  ex  parte  statutory  restraining  order  to
preserve  the  status  quo,  protect  public  customers  from  loss  and  damage,  and  enable  the
Commission to fulfill its statutory duties, therefore the Court orders as follows:

DEFINITIONS

     For the purposes of this Order, the following definitions apply:
     9.  The term "assets" means any legal or equitable interest in, right to, or claim to,
any real or personal property, whether individually or jointly, directly or indirectly controlled,
and  wherever  located,  including  but  not  limited  to:  chattels,  goods,  instruments,  equipment,
fixtures,  general  intangibles,  effects,  leaseholds  mail  or  other  deliveries,  inventory,  checks,
notes,  accounts  (including,  but  not  limited  to,  bank  accounts  and  accounts  at  other  financial
institutions), credits, receivables, lines of credit, contracts (including spot, futures, options, or
swaps  contracts),  insurance  policies,  and  all  cash,  wherever  located,  whether  in  the  United
States or outside the United States. 

     10.  The  term,  "document"  is  synonymous  in  meaning  and  equal  in  scope  to  the
usage of the term in Fed. R. Civ. P. 34(a), and includes, but is not limited to, all writings or
printed  matter  of  any  kind,  including  without  limitation:  records,  correspondence,
memoranda,  notes,  rolodexes,  address  books,  diaries,  statistics,  e-mail,  letters,  telegrams,
minutes,  contracts,  reports,  studies,  checks,  statements,  receipts,  returns,  summaries,
pamphlets,  books,  prospectuses,  interoffice  or  intra-office  communications,  telephone
message  slips,  offers,  notations  of  conversations,  bulletins,  drawings,  plans,  computer
printouts, computer input or output, teletypes, facsimiles, invoices, worksheets, ledger books,
books of accounts, and all drafts, alterations, modifications, changes and amendments of any
of  the  foregoing.    The  term  "document"  also  includes  graphs,  charts,  photographs,
phonographic  record,  audio  and  video  recordings,  computer  records,  and  other  data
compilations  from  which  information  can  be  obtained  or  translated,  if  necessary,  through
detection devices into reasonable usable form.  The term "document" also refers to each and
every document in your actual or constructive possession, including but not limited to: (i) all
documents within your custody or control of any of your present or former agents, employers,
employees, partners, and (ii) all documents which you have a legal or equitable right to obtain
from  another  person.    A  draft  or  non-identical  copy  is  a  separate  document  within
the meaning  of  the  term.    A  document  also  includes  the  file  and  folder  tabs  associated  with
each original and copy.  

     11.   "Defendants" refers to DCI, Monex NV and Tayeh, and/or any person insofar
as he or she is acting in the capacity of an officer, agent servant, employee, and/or attorney of
the Defendants and any person or entity who receives actual notice of this Order by personal
service  or  otherwise  insofar  as  he,  she  or  it  is  acting  in  concert  or  participation  with  the
Defendant(s). 

     12.  "Relief  Defendants"  refers  to  Hudson  and  Monex  AL,  and/or  any  person
insofar  as  he  or  she  is  acting  in  the  capacity  of  an  officer,  agent  servant,  employee,  and/or
attorney of the Relief Defendants and any person or entity who receives actual notice of this
Order  by  personal  service  or  otherwise  insofar  as  he,  she  or  it  is  acting  in  concert  or
participation with the Relief Defendant(s). 
 
         RELIEF GRANTED

I.  RESTRAINING  ORDER  PROHIBITING  THE TRANSFER, REMOVAL, DISSIPATION AND DISPOSAL OF ASSETS

IT IS HEREBY ORDERED that

     13.  Plaintiff's  Ex  Parte  Motion  for  Statutory  Restraining  Order  (doc.  no.  5)  is GRANTED as set forth herein.

     14.  The  Defendants  and  Relief  Defendants  and  their  agents,  servants,  employees,
assigns, attorneys, person and/or entity in active concert or participation with them, including
any successor thereof, and persons in active concert or participation with them, who receive
actual  notice  of  this  Order  by  personal  service  or  otherwise,  are  immediately  restrained  and
enjoined, except as otherwise ordered by this Court, from directly or indirectly: transferring,
selling,  alienating,  liquidating,  encumbering,  pledging,  leasing,  loaning,  assigning,
concealing,  dissipating,  converting,  withdrawing,  or  otherwise  disposing  of  any  assets,
wherever  located,  including  Defendants'  and/or  Relief  Defendants  assets  held  outside  the
United  States;  provided  however,  that  if  Defendants  DCI,  Monex  NV  and/or  Tayeh  have  or
control any accounts in which there are any open trading positions in contracts, agreements,
or transactions in commodity futures, options on commodity futures, and/or forex or options
relating  thereto,  Defendants  shall  forthwith  close  out  or  liquidate  any  and  all  such  open
positions.  

     15.  Defendants and Relief Defendants are restrained and enjoined from directly or
indirectly  opening  or  causing  to  be  opened  any  safe  deposit  boxes  titled  in  the  name  of,  or
subject to, access by Defendant(s) and/or Relief Defendants.

     16.  The assets affected  by this Order shall include both existing assets and assets
acquired after the effective date of this Order.

II.  MAINTENANCE OF AND ACCESS TO BUSINESS RECORDS 

      IT IS HEREBY ORDERED that:

     17.  The  Defendants,  Relief  Defendants,  and  their  agents,  servants,  employees,
assigns,  attorneys,  and  person  in  active  concert  or  participation  with  them,  including  any
successor  thereof,  who  receive  actual  notice  of  this  Order  by  personal  service  or  otherwise,
are restrained  from directly or indirectly destroying, mutilating, erasing, altering, concealing
or  disposing  of,  in  any  manner,  directly  or  indirectly,  any  documents  that  relate  to  the
business practices or business or personal finances of any Defendant and/or Relief Defendant.

III.  BOND NOT REQUIRED OF PLAINTIFF 

       IT IS FURTHER ORDERED that:

     18.   As  Plaintiff  is  an  agency  of  the  United  States  of  America  which  has  made  a
proper  showing  under  Section  6c(b)  of  the  Act,  7  U.S.C.  13a-1(b)  (2012),  this  restraining
order is granted without bond.  Accordingly, the Commission need not post a bond.  

IV.  INSPECTION AND COPYING OF BOOKS AND RECORDS 

       IT IS FURTHER ORDERED that:

     19.   Representatives  of  the  Commission  shall  be  immediately  allowed  to  inspect
the  books,  records,  and  other  documents  of  the  Defendants,  Relief  Defendants,  and  their
agents  including,  but  not  limited  to,  paper  documents,  electronically  stored  information
("ESI"), tape recordings, and computer discs, wherever they may be situated and whether they
are  in  the  possession  of  the  Defendants,  Relief  Defendants  or  others,  and  to  copy  said
documents, data and records, either on or off the premises where they may be situated.

     20.  Defendants and Relief Defendants shall, within 24 hours of the service of this
Order  upon  them,  cause  to  be  prepared  and  delivered  to  the  Commission,  a  detailed  and
complete schedule of all passwords for any encrypted ESI in the possession or control of the
Defendants  and/or  Relief  Defendants  that  relate  to  the  business  practices  of  any  Defendant
and/or Relief Defendant or the business or personal finances of any Defendant and/or Relief
Defendant.    Defendants  and  Relief  Defendants  shall,  within  24  hour  of  the  service  of  this
Order  upon  them,  cause  to  be  prepared  and  delivered  to  the  Commission,  a  detailed  and
complete schedule of all desk top computers, laptop computers and/or other computers owned
and/or used by them in connection with their business.  The schedules required by this section
shall include at a minimum the make, model and description of each, along with the location,
the name of the person primarily assigned to use the computer, and all passwords necessary to
access and use the software contained on the computer and/or PDA.  The Commission and/or
its representative shall be authorized to make an electronic, digital or hard copy of all of the
data contained on the computer(s).

     21.  Within  five  (5)  business  days  following  the  service  of  this  Order,
Defendants  and  Relief  Defendants  shall  provide  the  Commission  immediate  access  to  all
records  of  Defendants  and/or  Relief  Defendants  held  by  financial  institutions  located  within
or outside the territorial United States by signing the Consent to Release of Financial Records
attached to this Order and submitting same to counsel for the Commission.

V.  SERVICE  OF  ORDER  AND  ASSISTANCE  OF  FEDERAL  BUREAU  OF INVESTIGATION,  UNITED  STATES  MARSHALS  SERVICE  AND  OTHER  LAW ENFORCEMENT 

      IT IS FURTHER ORDERED that: 

     23.  Copies  of  this  Order  may  be  served  by  any  means,  including  facsimile
transmission,  upon  any  financial  institution  or  other  entity  or  person  that  may  have
possession,  custody,  or  control  of  any  documents  or  assets  of  any  Defendant  and/or  Relief
Defendant or that may be subject to any provision of this Order.

     22.  Timothy  J.  Mulreany,  JonMarc  P.  Buffa,  Kyong  J.  Koh,  Patricia  Gomersall,
Jeremy  Christianson,  and  representatives  of  the  Federal  Bureau  of  Investigation,  and  the
United States Marshal Service are specially appointed by the Court to effect service.

     23.  The  Federal  Bureau  of  Investigation  and  the  United  States  Marshal's  Service
and  other  any  other  cooperating  federal,  state  or  local  law  enforcement  officials,  are  hereby
authorized to accompany and assist the Commission's representatives outside and inside the
premises  of  Defendants  and/or  Relief  Defendants,  as  well  as  to  secure  the  premises,  in  the
service and execution of this Order. 

     24.  The  Commission  shall  promptly  file  proof  of  service  with  the  Court  once
service has been accomplished.

V.  SERVICE ON THE COMMISSION 

      IT IS FURTHER ORDERED that:

     25.   The Defendants and Relief Defendants shall comply with all electronic filing
rules and requirements of the U.S. District Court of the Middle District of Alabama and shall
serve all pleadings, correspondence, notices required by this Order, and other materials on the
Commission by delivering a copy to Timothy J. Mulreany, Division of Enforcement, 
U.S.  Commodity  Futures  Trading  Commission,  1155  21st  Street,  N.W.,  Washington,  D.C.
20581,  by  electronic  filing,  e-mail,  personal  delivery  or  courier  service  (such  as  Federal
Express  or  United  Parcel  Service)  and  not  by  regular  mail  due  to  potential  delay  resulting
from  heightened  security  and  decontamination  procedures  applicable  to  the  Commission's
regular mail. 

VI.  FORCE AND EFFECT 

      IT IS FURTHER ORDERED that:

     26.  This  Statutory  Restraining  Order  is  binding  on  all  parties  to  this  action,  their
officers, agents, servants, employees, and attorneys, and on those persons in active concert or
participation  with  them  who  receive  actual  notice  of  this  Statutory  Restraining  Order.    This
Court retains jurisdiction of this matter for all purposes.

     27.  Plaintiff is directed to comply with Local Rule 4.1, and promptly effect service
of  process  on  Defendants  and  Relief  Defendants  in  accordance  with  Local  Rule  4.1,  and  to
provide  Defendants  and  Relief  Defendants  with  all  of  the  material  required  by  the  Local
Rules.  Plaintiff is under a continuing obligation to notify and serve any papers subsequently
filed  with  the  Court  on  Defendants  and  Relief  Defendants  until  the  preliminary  injunction
hearing  or  until  counsel  for  Defendants  and  Relief  Defendants  files  a  notice  of  appearance,
whichever occurs first.

     28.  Defendants and Relief Defendants are hereby ordered to SHOW CAUSE why
the  Plaintiff's  separately  filed  Motion  for  Preliminary  Injunction  should  not  be  granted,  and
shall  file  their  response(s)  thereto,  including  all  counter  or  opposing  affidavits  and  a
memorandum of legal authority, within ten (10) days of service.

     29.  The  restraining  order  will  expire  14  days  from  the  date  of  this  order,  on
August 10, 2015.

     30.  A  HEARING  as  to  whether  this  Statutory  Restraining  Order  should  be
converted  to  a  preliminary  injunction  will  be  held  on  August  10,  2015  at  10:00  a.m.  in
Courtroom  2FMJ  of  the  Frank  M.  Johnson  Jr.  United  States  Courthouse  Complex,  One
Church  Street,  Montgomery,  Alabama,  before  the  undersigned.    Counsel  shall  appear  in
person and telephonic appearances will not be permitted.

     31.  The Clerk of the Court is DIRECTED to email a copy of this Order to counsel
for the Plaintiff and confirm receipt of same.

DONE, this the 27th day of July, 2015.
                           /s/  Myron  H.  Thompson                   
                        UNITED STATES DISTRICT JUDGE
 
cc:   Counsel of Record

It looks like DinarCorp was selling reserves illegally.  So, will anyone who has paid and received their order have to return them?

Just guessing, but most likely not ... however I suspect those who have been purchasing them and have not paid them off are most likely screwed.

it's illegal for any of those currency dealers to sell reserves.  Especially since more likely they didn't have the dinar in storage to protect the reserve.