Court Enforces SEC Subpoenas Ordering Witnesses to Produce Documents and Appear for Testimony
Litigation Release No. 24423 / March 15, 2019
Securities and Exchange Commission v. Christina Marie Daniels, et al., No. 2:19-mc-00023-DSF-JEM (C.D. Cal. filed February 14, 2019)
On March 13, 2019, the Securities and Exchange Commission obtained an order upon consent compelling Christina Marie Daniels of Riverside, California, Kim Bennett of Missoula, Montana, and Valentino Moca of Prescott Valley, Arizona to comply with investigative subpoenas for documents and testimony.
On February 14, 2019, the SEC filed an application in U.S. District Court for the Central District of California seeking an order directing compliance with its investigative subpoenas. According to the SEC's application, the SEC is investigating, among other things, whether certain individuals or entities engaged in the offer and sale of unregistered securities. Based on its ongoing investigation, the SEC has reason to believe that Daniels, Bennett, and Moca, who each purportedly personally invested in the unregistered securities, may have been involved in raising substantial amounts of money from others. In October 2018, the SEC issued subpoenas to Daniels, Bennett, and Moca, seeking the production of documents, including communications with prospective investors, as well as materials shown or provided to prospective investors. The subpoenas also require Daniels, Bennett, and Moca to appear for investigative testimony.
Daniels, Bennett, and Moca each consented to the entry of the order compelling them to produce documents and appear for investigative testimony. The SEC is continuing its fact-finding investigation in this matter and the application does not reflect a determination that anyone has violated the federal securities laws.