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THE UNITED STATES DISTRICT COURT


FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

SECURITIES AND EXCHANGE


COMMISSION,
Applicant,
v.
SECURITIES COMPLIANCE
GROUP, LTD., MEGAN M.
RUETTIGER and ADAM S. TRACY,
Respondents.

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_________________________________
APPLICATION OF THE SECURITIES AND EXCHANGE COMMISSION
FOR AN ORDER TO SHOW CAUSE AND FOR AN ORDER REQUIRING
RESPONDENTS TO COMPLY WITH ADMINISTRATIVE SUBPOENAS
Pursuant to Fed. R. Civ. P. 81(a)(3), the United States Securities and
Exchange Commission (the Commission) respectfully requests that summary
proceedings be opened for the purposes of its Application for an Order to Show
Cause and for an Order Requiring Respondents to Comply with Administrative
Subpoenas. In support the Commission shows as follows:

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I. Introduction
1.

This action has become necessary due to the continued contumacy of

Respondents Securities Compliance Group, Ltd. (Securities Compliance),


Megan M. Ruettiger (Ruettiger) and Adam S. Tracy (Tracy) with respect to 6
Commission-issued subpoenas over an extended period of approximately 9
months. Respondents have refused to even partially comply with the subpoenas
requiring them to produce documents and to appear for testimony in connection
with the Commission's ongoing investigation of certain public companies, as well
as Securities Compliance, and persons associated with those issuers. As reflected
in the Commissions Memorandum in Support and the attachments thereto,
Respondents have been given numerous opportunities for late compliance and have
refused in every instance.
2.

The Commission is investigating whether Securities Compliance, through

Tracy, its managing partner, and/or other officers, directors, employees or agents,
including Ruettiger, may have violated and may be violating, inter alia, Section
17(a) of the Securities Act of 1933 (Securities Act) [15 U.S.C. 77q(a)], Section
10(b) of the Securities Exchange Act of 1934 (Exchange Act) [15 U.S.C.
78j(10)], and Rule 10b-5 thereunder [17 C.F.R 240.10b-5], Section 13(a) of the
Exchange Act [15 U.S.C. 78m(a)], and Rules 13a-1 and 13a-13 thereunder [17
2

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C.F.R. 240.13a-1 and 240.13a-13], and Section 15(d) of the Exchange Act [15
U.S.C. 78o(d)] and Rules 15d-1 and 15d-13 thereunder [17 C.F.R. 240.15d-1
and 240.15d-13].
3.

The subpoenas relate to an investigation concerning possible violations by

Respondents, including, among other things, engaging in, or intending to engage


in, offering frauds. The violations involve potential misstatements and omissions
of material fact in pending or recently effective Form S-1 registration statements. .
Since April, 2014, fifteen corporations have filed with the Commission similar
Form S-1 and Form S-1A registration documents and amendments to register
initial public offerings with Tracy acting as either the drafter of the documents,
providing a legal opinion on the registration statement, or both. These filings have
common characteristics and indicate that some of these companies: (1) may not
appear to be viable developmental stage companies; (2) may be seeking to create
fraudulent shell companies that evade requirements applicable to offerings by
blank check companies under Rule 419 promulgated under the Securities Act of
1933 (Securities Act); or (3) may have failed to disclose the identity of their true
control persons, promoters and gatekeepers.

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4.

The Commission hereby applies to this Court for an Order requiring

Respondents to show cause why they should not be ordered to appear for testimony
and provide document production, pursuant to subpoenas properly issued by the
Commission and served upon them in connection with an ongoing Commission
law enforcement investigation. The Commission further requests that the Court
thereafter enter an Order requiring Respondents to obey the subpoenas.
5.

Jurisdiction is conferred upon this Court, and venue properly lies within the

Northern District of Georgia, pursuant to Section 21(c) of the Exchange Act, 15


U.S.C. 78u(c). Section 21(c) of the Exchange Act provides that in case of a
refusal to obey a subpoena, the Commission may invoke the aid of any court of
the United States within the jurisdiction of which such investigation or
proceeding is carried on, or where such person resides or carries on business, in
requiring the attendance and testimony of witnesses and the production of books,
papers, correspondence, memoranda, and other records. (Emphasis added.)
6.

In support of this Application, the Commission submits the accompanying

declaration of Commission Staff Attorney Edward H. Saunders (Saunders Dec.),


the exhibits thereto, and a Memorandum in Support of Application of the
Securities and Exchange Commission For an Order to Show Cause and For an
Order Requiring Respondents to Comply with Administrative Subpoenas.
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II.

Factual Summary

7.

On October 28, 2015, pursuant to Section 20(a) of the Securities Act [15

U.S.C. 77t(a)] and Section 21(a) of the Exchange Act [15 U.S.C. 78u(a)], the
Commission issued an Order Directing Private Investigation and Designating
Officers to Take Testimony in an investigation captioned In the Matter of Sonant
Communications Corp., and Certain Other Issuers (the "Formal Order"). Saunders
Dec., 6.
8.

The Formal Order explicitly designated Mr. Saunders, among other

Commission staff members, as an officer of the Commission for purposes of the


investigation, and empowered each person so designated to subpoena witnesses
and require the production of any evidence deemed relevant or material to the
inquiry. Saunders Dec., 8.
9.

Mr. Saunders, acting on behalf of the Commission pursuant to the Formal

Order, caused the service of six subpoenas, dated November 3, 2015, January 25,
2016, February 11, 2015, February 18, 2015, and April 21, 2016 (on this date, Mr.
Saunders served 2 subpoenas, one each to Tracy and Ruettiger), (the Subpoenas)
on Respondents Securities Compliance, Ruettiger and/or Tracy seeking documents
and/or testimony. Saunders Dec., 10-36, and Exhibits B, G, H, I, J and K
thereto.
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10.

One of the Subpoenas required Respondents to produce documents to the

Commissions Atlanta Regional Office on November 19, 2015. None of the


Respondents has produced any documents pursuant to the Subpoenas.1 Saunders
Dec., 10-21 and Exhibits C, D, E and F thereto.
11.

With respect to testimony, despite being given numerous extensions many

granted after Respondents counsel had promised compliance by a certain date,


and then failed to appear with his clients none of the Respondents have appeared
for testimony as required by the Subpoenas. Saunders Dec., 22-35; 37 and
Exhibits L and M thereto.
12.

The documents and testimony required under the Subpoenas are relevant to

the matter under investigation, are not otherwise in the Commissions possession,
and may provide evidence as to whether Respondents, and/or others violated the
federal securities laws. Saunders Dec., 10-35; 37 and Exhibits A-M thereto.

On March 14, 2016, Respondents counsel produced approximately 1,000


pages of documents that he claimed were responsive to the staffs subpoenas.
Saunders Dec., 20. Upon review, however, the staff determined the documents
were totally non-responsive. Id. In fact, Respondents counsel later admitted the
documents related to an entirely separate SEC investigation involving Tracy and
Securities Compliance that originated in a different SEC Regional Office. Saunders
Dec., 22.

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The documents sought by the Commission are, therefore, relevant and important to
the Commission's investigation and within the scope of the Formal Order.
WHEREFORE, the Commission respectfully requests:
I.
That the Court enter an Order to Show Cause, directing Respondents
Securities Compliance, Ruettiger and Tracy to show cause why this Court should
not enter an Order requiring their appearance for testimony and their production of
the requested documents;
II.
That the Court enter an Order requiring Respondents Securities Compliance,
Ruettiger and Tracy to comply fully with the Subpoenas; and
III.
That the Court order such other and further relief as may be necessary and
appropriate to achieve compliance with the Subpoenas.

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Dated: June 15, 20162


Respectfully submitted,
/s/ W. Shawn Murnahan
M. Graham Loomis
Regional Trial Counsel
Georgia Bar No. 457868
Email: loomism@sec.gov
W. Shawn Murnahan
Senior Trial Counsel
Georgia Bar No. 529940
Email: murnahanw@sec.gov
Attorneys for Plaintiff
SECURITIES AND EXCHANGE
COMMISSION
Atlanta Regional Office
950 East Paces Ferry Road, N.E.,
Suite 900
Atlanta, Georgia 30326-1382
(404) 842-7669 (Murnahan)

Pursuant to Local Rule 7.1D, counsel for the Commission certifies that this
Application of the Securities and Exchange Commission for an Order to Show Cause
and for an Order Requiring Respondents to Comply with Administrative Subpoenas
has been prepared in 14 point Times New Roman font, which is approved by the
Court in LR 5.1B.
8

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THE UNITED STATES DISTRICT COURT


FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

SECURITIES AND EXCHANGE


COMMISSION,
Applicant,
v.
SECURITIES COMPLIANCE
GROUP, LTD., MEGAN M.
RUETTIGER and ADAM S. TRACY,
Respondents.

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: Civil Action No.
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_________________________________
MEMORANDUM IN SUPPORT OF APPLICATION OF THE SECURITIES
AND EXCHANGE COMMISSION FOR AN ORDER TO SHOW CAUSE
AND FOR AN ORDER REQUIRING RESPONDENTS TO
COMPLY WITH ADMINISTRATIVE SUBPOENAS
The United States Securities and Exchange Commission (the "Commission")
respectfully submits this memorandum in support of its Application of the
Securities and Exchange Commission for an Order to Show Cause and for an
Order Requiring Respondents to Comply with Administrative Subpoenas (the
"Application").

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I.

Introduction
Respondents Securities Compliance Group, Ltd. (Securities Compliance),

Megan M. Ruettiger (Ruettiger) and Adam S. Tracy (Tracy) have repeatedly


failed to comply with 6 validly issued and served subpoenas requesting testimony
and document production. With the earliest subpoena at issue dated November 3,
2015, Respondents have ignored numerous second chances to comply granted by
the Commission staff.
The subpoenas relate to an investigation concerning possible violations by
Respondents including, among other things, engaging in, or intending to engage in,
offering frauds based upon potential misstatements and omissions of material fact
in pending or recently effective Form S-1 1 registration statements and
amendments. Since April, 2014, fifteen corporations have filed with the
Commission similar Form S-1 and Form S-1A registration documents and
amendments to register initial public offerings with Tracy acting as either the

A Form S-1 is a Commission form promulgated pursuant to the Securities Act


that dictates the information required to be included in an investment prospectus for
public companies. See e.g., Ashburn Family Properties, LLC v. EBR Huntsville,
LLC, et al., Civil Action No. 5:15-CV-650-CLS (N.D.Ala.), 2016 WL 159324 at *5
(January 14, 2016). In this case, Respondents filed Forms S-1 for the shell
companies in order to be able to issue and sell stock on a public market.

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drafter of the documents, providing a legal opinion on the registration statement, or


both. These filings have common characteristics and indicate that some of these
companies: (1) may not appear to be viable developmental stage companies; (2)
may be seeking to create fraudulent shell companies that evade requirements
applicable to offerings by blank check companies under Rule 419 promulgated
under the Securities Act of 1933 (Securities Act); or (3) may have failed to
disclose the identity of their true control persons, promoters and gatekeepers.
Section 22(b) of the Securities Act of 1933 (the "Securities Act") [15 U.S.C.
77v(b)] and Section 21(c) of the Securities Exchange Act of 1934 (the "Exchange
Act") [15 U.S.C. 78u(c)], authorize this Court to order enforcement of a
Commission subpoena. See, e.g., SEC v. Jerry T. OBrien, Inc., 467 U.S. 735, 741
(1984). The order to show cause procedure is appropriate for a subpoena
enforcement proceeding. See FEC v. Committee to Elect Lyndon LaRouche, 613
F.2d 849, 853 (D.C. Cir. 1979) (affirming district court's enforcement of Federal
Election Commission subpoenas through order to show cause proceeding), cert.
denied, 444 U.S. 1074 (1980); see also, United States v. Stoltz, 525 F. Supp. 617,
619-620 (D.D.C. 1981) (Department of Energy subpoena). In support of this
Application, the Commission has filed the declaration of Commission Staff
Attorney Edward H. Saunders ("Saunders Dec."), along with attached exhibits.
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Because of Respondents failure to comply with the Commissions


subpoenas, the Commission is unable to obtain all of the documents and testimony
necessary to conduct its investigation. Accordingly, the Commission requests that
the Court grant this Application and order the requested relief. See O'Brien, supra,
467 U.S. at 750-751 (noting importance that investigations into violations of
federal securities laws be conducted in an expeditious manner).
II.

Factual Background
a. The Commissions Investigation
On October 28, 2015, the Commission issued an Order Directing Private

Investigation and Examination and Designating Officers to Take Testimony in a


matter entitled In the Matter of Sonant Communications and Certain Other Issuers
(the "Formal Order"), pursuant to Section 20(a) of the Securities Act and Section
21(a) of the Exchange Act. See June 13, 2016 Declaration of Edward H. Saunders
(Saunders Dec.), 6, attached to this Memorandum as Exhibit 1; see also Exhibit
A attached to the Saunders Dec. (copy of the Formal Order). The Commissions
investigation In the Matter of Sonant Communications Corp. and Certain Other
Issuers is being conducted by the Commission's Atlanta Regional Office (ARO),
which is located in the Northern District of Georgia. Saunders Dec., 9.

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In the Formal Order, the Commission directed that an investigation be


conducted to determine, among other things, whether any persons engaged in
violations of antifraud and registration provisions of the federal securities laws,
including violations of Section 17(a) of the Securities Act, Sections 10(b),
13(a) and 15(d) of the Exchange Act, and Rules l0b-5, 13a-1, 13a-13, 15d-1 and
15d-13 promulgated thereunder. Saunders Dec. 8, Exhibit A.
The Formal Order designated Commission Staff Attorney Edward H.
Saunders (Saunders) and other members of the staff as officers of the
Commission for purposes of the investigation, and empowered him to subpoena
witnesses and require the production of any evidence deemed relevant or material
to the inquiry. Saunders Dec., 8.
b. Respondents' Failure to Comply with Valid Commission Subpoenas
i.

The Staffs Subpoenas for Documents

On or about Tuesday, November 3, 2015, Saunders issued and served a


subpoena via United Parcel Service requiring Securities Compliance to produce
certain documents to ARO by Thursday, November 19, 2015 (the November 3rd
subpoena). Saunders Dec. 10. (A copy of the November 3rd subpoena and the
United Parcel Service (UPS) proof of delivery are attached to the Saunders Dec.
as Exhibit B.)
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On Monday, December 7, 2015, Saunders received a call from James


Alexander Rue, Esq. (Rue), who stated that he represented Securities
Compliance and Tracy. 2 During that call, Rue informed Saunders that Saunders
would have the documents responsive to the November 3rd subpoena by the next
day, Tuesday, December 8, 2015. During the call, Saunders told Rue that, if it
would be easier for Rue, the documents could be delivered as late as Friday,
December 11, 2015. No such documents arrived by close of business on
December 11, 2015. Saunders Dec. 11.
On Friday, December 18, 2015, Saunders called Rue stating that he had not
received the subpoenaed documents and asked when they would be received. Rue
responded that he would have them delivered that afternoon. No such documents
were received by close of business that day. Saunders Dec. 12.
On Tuesday, January 5, 2016, Saunders called Rue to ask when he could
expect to receive the subpoenaed documents. During that conversation, Rue told
Saunders that he would deliver the documents to ARO by Friday, January 8, 2016.
Rue also stated that the responsive documents consisted of a stack approximately 3

Rue is a former ARO trial attorney who is well known to ARO staff.

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inches high and a few cd disks. No such documents were received by close of
business on January 8, 2016. Saunders Dec. 13.
On Tuesday, January 12, 2016, Saunders called Rue a third time pointing out
that no documents responsive to the November 3rd subpoena had been received.
During that call, Rue represented that he had already sent the documents via the
United States Postal Service to ARO the previous week. Saunders responded that
no such package had been received at ARO. Saunders then offered to doublecheck with other ARO staff in order to ensure that the package Rue claimed to
have sent had not been misplaced. Rue responded that Saunders did not need to
check on the package, as he would send another copy. No such documents were
received. Saunders Dec. 14.
On Tuesday, January 19, 2016, Saunders called Rue for a fourth time stating
that no subpoenaed documents on behalf of Securities Compliance had been
received. Rue responded that he would send the documents on either Thursday,
January 21, 2016 or Friday, January 22, 2016. No documents responsive to the
November 3rd subpoena were received from Rues office by close of business on
Friday, January 22, 2016. Saunders Dec. 15.
On Monday, February 1, 2016, Saunders sent Rue a letter (the February 1st
letter) referencing their previous phone discussions and informed Rue that Rue
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had until 5:00 p.m. on Thursday, February 4, 2016 to produce the subpoenaed
documents. The February 1st letter stated that if the subpoenaed documents were
not produced by the time and date stated above, the staff would consider all
available options including, but not limited to, the filing of a subpoena
enforcement action. No documents responsive to the November 3rd subpoena
were received by close of business on Thursday, February 4, 2016. Saunders Dec.
16. (A copy of the February 1st letter is attached to the Saunders Dec. as Exhibit
C.)
On Wednesday, February 10, 2016, Saunders called Rue pointing out once
again that no documents had been received. Rue responded by stating that he
would deliver the responsive documents to ARO the next day, Thursday, February
11, 2016. Saunders sent Rue a letter confirming this discussion on February 10,
2016 (the February 10th letter). No such documents were received by close of
business on February 11, 2016. Saunders Dec. 17. (A copy of the February 10th
letter is attached to the Saunders Dec. as Exhibit D.)
On Tuesday, February 16, 2016, Saunders called Rue to confront Rue with
the fact that no documents responsive to the November 3rd subpoena had been
received. Rue replied that the documents [were] in the mail and that the staff
would get them tomorrow or the next day. Saunders sent Rue a letter confirming
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this discussion on February 16, 2016 (the February 16th letter). No such
documents were received by close of business on Friday, February 19, 2016.
Saunders Dec. 18. (A copy of the February 16th letter is attached to the Saunders
Dec. as Exhibit E.)
Rue finally produced some documents purportedly on behalf of Securities
Compliance on Monday, March 14, 2016. However, Saunders review of the
documents revealed that none of them were responsive to the November 3rd
subpoena for the following reasons: (1) none of the documents produced appear to
relate to any information regarding the entities and individuals named in the
subpoena; (2) those documents which are legible related to two companies that had
no bearing to this investigation; (3) there was no explanation of which pages
responded to which specific document request and no privilege log; and (4) of the
documents produced, 859 pages were either completely blank, unreadable due to
illegible copies or duplicates of other documents in the same production. Saunders
Dec. 19.
On Thursday, April 14, 2016, Saunders sent Rue a letter stating that the
documents he produced in response to the November 3rd subpoena were not
responsive for the reasons stated above (the April 14th letter). The April 14th
letter also gave Rue a deadline of 4:00 p.m. on Friday, April 22, 2016 to produce
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documents responsive to the November 3rd subpoena. No such documents were


produced. Saunders Dec. 20. (A copy of the April 14th letter is attached to the
Saunders Dec. as Exhibit F.)
On Monday, April 18, 2016, Saunders received a call from Rue. During that
call, Saunders asked Rue why Rue had produced documents to the Commission
that were not responsive to the November 3rd subpoena. Rue answered that he had
sent documents that Tracy prepared for a separate SEC subpoena concerning an
entirely different investigation. Rue stated that he would speak to his client
regarding the production of documents that were relevant to the November 3rd
subpoena. As of the filing of this action, no documents responsive to the
November 3rd subpoena have been produced by either Securities Compliance or its
counsel. Saunders Dec. 21.
The documents sought from Securities Compliance are relevant and
important to the Staff's investigation, are not already within the Commissions
possession, and cannot be obtained through other witnesses. Saunders Dec. 22.
ii.

The Staffs Subpoenas for Testimony

On Monday, January 25, 2016, Saunders issued a subpoena (the January


25th subpoena) for Respondent Tracy to testify at ARO on Thursday, February
10, 2016. Tracy failed to appear for his testimony on the February 10th date.
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Saunders Dec. 23. (A copy of the January 25th subpoena and UPS confirmation
of delivery is attached to the Saunders Dec. as Exhibit G.)
When Tracy failed to appear for testimony on February 10th, Saunders
called Rue asking for an explanation. Rue claimed that after receiving the January
26th subpoena, Rue sent Saunders an e-mail suggesting different dates. During
that call, Saunders told Rue that he had not received such an e-mail. Saunders told
Rue, however, that he would, again, check his e-mail to see if it had somehow been
missed. Saunders double-checked his email and found no such message. After
checking his e-mail, Saunders called Rue for a second time that day, asking Rue to
resend the original e-mail suggesting alternate dates for Tracys testimony. No
such e-mail was ever sent or produced by Rue. During the second call, Saunders
asked Rue to reschedule the date for Tracys testimony to Thursday, February 18,
2016 or Friday, February 19, 2016. Rue replied that he would try. That same
day, Saunders wrote Rue a letter stating that if Rue had not contacted Saunders
with a date for Tracys testimony by 5:00 p.m. the next day, Saunders would send
a subpoena for Tracys testimony to occur at ARO on Thursday, February 18,
2016. Saunders Dec. 24. (A copy of the February 10th letter is attached to the
Saunders Dec. as Exhibit D.)

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Rue failed to respond by close of business the next day, Thursday, February
11, 2016. Saunders then sent a second subpoena to Tracy in care of Rue for
Tracys testimony to occur on Thursday, February 18, 2016 at ARO. Saunders
Dec. 25. (A copy of the February 11, 2016 subpoena and UPS confirmation of
delivery is attached to the Saunders Dec. as Exhibit H.)
On Tuesday, February 16, 2016, Saunders called Rue to confirm Tracys
testimony for February 18th. Rue stated that, while he had spoken to Tracy, he had
been unable to confirm the February 18th testimony date. Saunders later called
Rue again the same day at approximately 4:00 p.m. During that second
conversation, Rue told Saunders that Rue had spoken with Tracy but was still
waiting to hear from him concerning an acceptable date. As a result of the two
conversations Saunders had with Rue that day, Saunders agreed to postpone
Tracys testimony to a date during the March 1-4, 2016 time period at ARO, and
Rue agreed to provide a date during that time period when Tracy could testify.
Saunders Dec. 26.
However, after the conversations on February 16, 2016, Rue failed to
contact the staff regarding a date for Tracys testimony during the March 1-4, 2016
time period. Consequently, on February 18, 2016, Saunders sent a third subpoena
for Tracys testimony in care of Rue, scheduling the testimony to occur at ARO on
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Thursday, March 3, 2016. Both Tracy and Rue failed to appear for Tracys
testimony as scheduled at 9:30 a.m. on March 3, 2016. Saunders Dec. 27. (A
copy of the February 18th subpoena and UPS confirmation of delivery is attached
to the Saunders Dec. as Exhibit I.)
On Thursday, April 14, 2016, Saunders sent Rue a letter referencing the
February 16 conversations. (A copy of the April 14th letter is attached to the
Saunders Dec. as Exhibit F.) In the April 14th letter, Saunders informed Rue that
the staff was giving Rue until April 22, 2016 to provide dates during the weeks of
May 16th and May 23rd when Tracy was available to testify at ARO. The letter
stated that the staff would consider filing a subpoena enforcement action against
his client if such testimony dates were not provided. Saunders Dec. 28.
On Monday, April 18, 2016, Rue called Saunders and stated that Rue would
make Tracy available for testimony at ARO on Tuesday, May 17, 2016. During
that conversation, Saunders told Rue that Saunders also wanted to take the
testimony of Respondent Ruettiger, an employee of Securities Compliance. Rue
agreed to provide Ruettiger for testimony on Tuesday, May 17th as well. During
that call, counsel both agreed that testimony on May 17th would begin with
Ruettiger at 9:30 a.m., to be followed by Tracys testimony at 1:00p.m. Saunders
Dec. 29.
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On Thursday, April 21, 2016, Saunders sent subpoenas for Ruettiger and
Tracy in care of Rue for their testimony to occur at ARO on Tuesday May, 17,
2016. Saunders Dec. 30. (Copies of these subpoenas and the UPS confirmations
of delivery are attached to the Saunders Dec. as Exhibits J and K, respectively).
Saunders also sent a cover letter to Rue confirming their conversation of April 18,
2016 (the April 21st letter). Saunders Dec. 30. (A copy of the April 21st letter
is attached to the Saunders Dec. as Exhibit L.)
On Tuesday, May 16, 2016, at approximately 9:00a.m., Rue called to inform
Saunders that neither Tracy nor Ruettiger would appear for testimony the next day,
Wednesday, May 17th. Rue also told Saunders that, if forced to testify, his clients
would invoke their Fifth Amendment right against self-incrimination in response to
all questions. When asked, Rue provided no explanation for Tracy and Ruettigers
failure to appear for their testimony the next day. During that conversation,
Saunders asked Rue to provide rescheduled testimony dates as soon as possible.
Saunders suggested either Tuesday, May 24, 2016 or Wednesday, May 25, 2016 as
the rescheduled dates. Saunders Dec. 31.
At approximately 2:00 p.m. on Monday, May 16, 2016, Saunders again
called Rue to ask whether Rue was able to confirm with his clients the rescheduled

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testimony dates Saunders had proposed. Rue indicated that he had not been able to
so confirm. Saunders Dec. 32.
Saunders called Rue again the next day, Tuesday, May 17, 2016. During
that call, Rue confirmed that Tracy and Ruettiger would make themselves available
for testimony at ARO on Tuesday, May 24, 2016. Counsel agreed that Ruettigers
testimony would be first (starting at 9:30 a.m.), to be followed immediately by
Tracys testimony. Saunders sent a letter to Rue that same day memorializing the
agreement (the May 17th letter). Saunders Dec. 33. (A copy of the May 17th
letter is attached to the Saunders Dec. as Exhibit M.)
On Monday, May 23, 2016 at approximately 5:00 p.m., Rue called Saunders
to say that neither Ruettiger nor Tracy would be appearing for their scheduled
testimony the next day. No reason was provided by Rue for Tracy and Ruettigers
failure to appear for their testimony the following day. Saunders Dec. 34.
Neither Ruettiger nor Tracy appeared for their testimony on Tuesday, May 24,
2016. Saunders Dec. 35.
1.

On June 14, 2016, Rue emailed Saunders indicating that Rue was out

of the county, returning on June 22, 2016. In the email message, Rue offered (as
he has several times before) to make his clients available. In this instance, Rue did
not include a date certain, but instead suggested that the parties find a mutually
15

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agreeable date after June 23, 2016. Saunders Dec. 36. (A copy of the June 14th
email is attached hereto as Exhibit N.)
The testimony of Ruettiger and Tracy are relevant and important to the
Staff's investigation, are not already within the Commissions possession, and
cannot be obtained through other witnesses. Saunders Dec. 37.
III.

This Court has the Power to Enforce the Subpoena


a. This Court has Jurisdiction and Venue Properly Lies in this District
When Congress created the Commission and assigned to it the responsibility

of protecting investors and ensuring the fairness and honesty of the nation's capital
markets, Congress gave the Commission broad authority to conduct investigations
and to demand production of evidence relevant to such investigations. See
Section 20(a) of the Securities Act, 15 U.S.C. 77t(a); Sections 21(a) and (b) of
the Exchange Act, 15 U.S.C. 78u(a) and (b); Jerry T. O'Brien, 467 U.S. at 745;
SEC v. Dresser Industries, Inc., 628 F.2d 1368, 1379-1380 (D.C. Cir.) (en banc),
cert. denied, 449 U.S. 993 (1980); SEC v. Arthur Young & Co., 584 F.2d 1018,
1023 (D.C. Cir. 1978), cert. denied, 439 U.S. 1071 (1979). The Commission and
its officers may, among other things, administer oaths, and subpoena witnesses and
compel their testimony and attendance. Section 20(a) of the Securities Act, 15
U.S.C. 77t(a); Section 21(b) of the Exchange Act, 15 U.S.C. 78u(b).
16

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When subpoenaed parties, such as Respondents, refuse to comply with


subpoenas issued by the Commission, the Commission has the authority to seek a
court order compelling such compliance. Congress has explicitly conferred
jurisdiction on the United States District Courts, upon application by the
Commission, to enforce the subpoena. See Section 22(b) of the Securities Act, 15
U.S.C. 77v(b); Section 21(c) of the Exchange Act, 15 U.S.C. 78u(c).
Accordingly, this Court has jurisdiction over the subject matter of this Application.
Venue is proper in this district because a Commission subpoena enforcement
action may be brought in any United States District Court "within the jurisdiction
of which such investigation or proceeding is carried on." Section 21(c) of the
Exchange Act, 15 U.S.C. 78u(c). Here, the investigation is being conducted and
managed by the Commission's enforcement staff in the Atlanta Regional Office,
and the subpoenas were issued in and made returnable to Atlanta, Georgia.
Saunders Dec., 9-10; 23; 25; 27; 30, and Exhibits A, B, G, H, I, J and K. Thus,
venue is proper notwithstanding the facts that Respondents Tracy and Ruettiger are
believed to be residents of Wheaton, Illinois, and Securities Compliance is,
according to public record, an Illinois corporation with its principal place of
business in Wheaton, Illinois. Because the investigation is being conducted in
Atlanta, venue appropriately lies in the Northern District of Georgia. Cf.
17

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Committee to Elect Lyndon La Rouche, 613 F.2d at 857 (finding FECs choice of
District of Columbia as its place of inquiry as within the "bound of
reasonableness," even where the appellants place of business was New York).
b. The Commission's Subpoena Satisfies All Requirements for
Enforcement
In general, "[a] district courts role in a proceeding to enforce an
administrative subpoena is limited." United States Equal Employment Opportunity
Commission v. Tire Kingdom, Inc., 80 F.3d 449, 450 (11th Cir. 1996). The court
may inquire into "(1) whether the administrative investigation is within the
agencys authority, (2) whether the agencys demand is too indefinite, and (3)
whether the information sought is reasonably relevant." Id., citing United States v.
Florida Azalea Specialists, 19 F.3d 620, 622-23 (11th Cir. 1994). Courts have
treated SEC subpoenas similarly to other agency subpoenas.
To enforce an SEC administrative subpoena, a court generally must be
satisfied that: (1) the investigation will be conducted pursuant to a legitimate
purpose; (2) that the inquiry may be relevant to that purpose; (3) that the
information sought is not already within the Commissions possession; and (4) that
the administrative steps required have been followed. See United States v. Powell,
379 U.S. 48, 57-58 (1964); see also RNR Enterprises, Inc., v. SEC, 122 F.3d 93,

18

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96-97 (2d Cir. 1997); SEC v. Howatt, 525 F.2d 226, 229 (1st Cir. 1975); SEC v.
Brigadoon Scotch Distributing Co., 480 F.2d 1047, 1054 (2d Cir. 1973), cert.
denied, 415 U.S. 915 (1974); Arthur Young, 584 F.2d at 1024. Once these
threshold criteria are met, the burden shifts to the opposing party to establish that
the subpoena is unreasonable. See Brigadoon Scotch, 480 F.2d at 1056. When the
Commission's inquiry is legally authorized and the information sought is relevant
to the inquiry, the burden of showing unreasonableness "is not easily met." Id.
i.

The Commission's Purpose is Legitimate.

As stated above, the Commission's investigation is being conducted pursuant


to a Formal Order issued by the Commission in accordance with Section 20(a) of
the Securities Act and Section 21(b) of the Exchange Act. These provisions
authorize the Commission to conduct investigations in its discretion to determine
whether any provisions of the Securities Act, Exchange Act, or the rules or
regulations promulgated thereunder, "have been or are about to be violated." See
15 U.S.C. 77t(a); 15 U.S.C. 78u(a).
The Formal Order authorizes the designated officers of the Commission to
investigate, among other things, whether violations of the registration and antifraud
provisions of the federal securities laws have occurred. The Commission
possesses regulatory authority over the registration and antifraud provisions and
19

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has a Congressional mandate to enforce them. See, e.g., 15 U.S.C. 77t(b); 15


U.S.C. 78u(d) (authorizing the Commission to commence injunctive actions in
federal district court).
Moreover, the Commission need not go so far as to show probable or
reasonable cause to conduct an investigation. See, e.g., Howatt, 525 F.2d at 229;
Brigadoon Scotch, 480 F.2d at 1053. Rather, the Supreme Court has compared an
agency inquiry to that of a grand jury, which can investigate on mere suspicion that
the law has been violated, without a showing of probable cause: "[A]n
administrative agency charged with seeing that the laws are enforced . . . is more
analogous to the Grand Jury, which does not depend on a case or controversy for
power to get evidence but can investigate merely on suspicion that the law is being
violated, or even just because it wants assurance that it is not." United States v.
Morton Salt Co., 338 U.S. 632, 642 (1950), cited in United States v. Florida
Azalea Specialists, 19 F.3d 620, 622-23 (11th Cir. 1994). See also United States v.
Bisceglia, 420 U.S. 141, 147-48 (1975); SEC v. First Security Bank of Utah, 447
F.2d 166, 168 (10th Cir. 1971), cert. denied, 404 U.S. 1038 (1972).
In this case, the Staff seeks to investigate whether Securities Compliance, its
officers and directors, and/or other persons, including Tracy and Ruettiger, have
violated the antifraud and registration provisions of the federal securities laws.
20

Case 1:16-mi-00041-WSD-CMS Document 1-1 Filed 06/15/16 Page 21 of 24

This type of Commission investigation is legitimate and lawful and within the
parameters of the authorizing statutes and case law.
ii.

The Commission seeks information that may be relevant to


the legitimate purpose of the investigation.

The measure of relevance used in subpoena enforcement actions is quite


broad. Florida Azalea Specialists, 19 F.3d at 624. In this case, both the documents
and the testimony sought from Respondents fall well within the applicable
standard. The Commission seeks to learn, among other things, whether
Respondents and/or others have violated the antifraud and registration provisions
of the federal securities laws. In particular, the Commission seeks information
concerning the transactions and activities of Securities Compliance and persons
associated with it such as Tracy and Ruettiger. The documents sought from
Respondents are relevant to establishing possible violations of these laws. Their
testimony would also help to delineate any possible violations and provide other
relevant information regarding Securities Compliance.
iii.

The Information Sought is not Already within the


Commissions Possession.

Respondents almost certainly have documents about Securities Compliance's


transactions and activities that are not already in the Commission's possession.
The staff has documents regarding Securities Compliance that are publicly
21

Case 1:16-mi-00041-WSD-CMS Document 1-1 Filed 06/15/16 Page 22 of 24

available, as well as some documents obtained from other entities relevant to


Securities Compliance and a number of the fifteen corporations where Securities
Compliance drafted the Form S-1, Tracy provided a legal opinion, or both. For the
investigation to run its proper course, however, the Commission staff must review
the presumably very relevant documents in the possession of Securities
Compliance. Tracy is a principal of Securities Compliance and controls it, and
Ruettiger is believed to be a key employee. The documents sought by the Staff
may reveal whether Respondents and their representatives made materially false or
misleading statements on the Forms S-1 filed by Securities Compliance and other
companies at issue in the investigation. Moreover, because Respondents have
refused to appear for testimony and there is no alternative source for that
information, Respondents testimony evidence is not within the Commission's
possession. All the sought information will further the Staff's investigation of
possible federal securities laws violations. Saunders Dec., 22;37.
iv.

The Commission has Satisfied the Administrative


Requirements.

The Commission issued the subpoenas at issue here in accordance with


applicable administrative requirements. Section 19(c) of the Securities Act [15
U.S.C. 77s(c)] and Section 21(b) of the Exchange Act [15 U.S.C. 78u(b)]

22

Case 1:16-mi-00041-WSD-CMS Document 1-1 Filed 06/15/16 Page 23 of 24

provide that the Commission may, in the course of conducting investigations,


designate officers and empower them, among other things, to subpoena witnesses.
In this instance, a Staff Attorney of the Division of Enforcement, designated in a
Formal Order as an officer of the Commission, issued the Subpoenas. Saunders
Dec., 9-10; 23; 25; 27; 30, and Exhibits A, B, G, H, I, J and K.
An officer of the Commission may serve an investigative subpoena by
several methods, including by sending the subpoenas through a commercial courier
service or express delivery service. See 17 C.F.R. 203.8, 201.232(c), and
201.150(c)(3). The Subpoenas were served via United Parcel Service. Saunders
Dec., 10. Moreover, Rue implicitly acknowledged receipt of the subpoenas over
numerous conversations with Saunders during the fall of 2015 and the spring of
2016. Saunders Dec., passim. The subpoenas were validly issued and served in
compliance with applicable administrative procedures.
IV.

Conclusion

WHEREFORE, for the reasons stated above and in the Commission's


Application, the Commission requests that the Court grant the Application and
enter an Order: (i) requiring Respondents to each show cause why Respondents
should not be ordered to appear for testimony pursuant to the subpoenas properly

23

Case 1:16-mi-00041-WSD-CMS Document 1-1 Filed 06/15/16 Page 24 of 24

issued by the Commission and served upon Respondents; and (ii) requiring
Respondents to comply with the subpoenas.
Dated: June 15, 20163
Respectfully submitted,
/s/ W. Shawn Murnahan
M. Graham Loomis
Regional Trial Counsel
Georgia Bar No. 457868
Email: loomism@sec.gov
W. Shawn Murnahan
Senior Trial Counsel
Georgia Bar No. 529940
Email: murnahanw@sec.gov
Attorneys for Plaintiff
SECURITIES AND EXCHANGE
COMMISSION
Atlanta Regional Office
950 East Paces Ferry Road, N.E.,
Suite 900
Atlanta, Georgia 30326-1382
(404) 842-7669 (Murnahan)

Pursuant to Local Rule 7.1D, counsel for the Commission certifies that this
Memorandum in Support of Application of the Securities and Exchange Commission
for an Order to Show Cause and for an Order Requiring Respondents to Comply with
Administrative Subpoenas has been prepared in 14 point Times New Roman font,
which is approved by the Court in LR 5.1B.

24

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 1 of 14

THE UNITED STATES DISTRICT COURT


FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

SECURITIES AND EXCHANGE


COMMISSION,
Applicant,

Civil Action No.

v.

SECURITIES COMPLIANCE
GROUP,LTD.,ADAM S. TRACY and
MEGAN S. RUETTIGER,
Respondents.

DECLARATION OF EDWARD H.SAUNDERS


I, Edward H. Saunders, pursuant to 28 U.S.C. 1746, do hereby declare as
follows:
1.

I am an attorney licensed in the State of Georgia. I have been licensed in

Georgia since 1982.


2.

I am employed as a Staff Attorney by the United States Securities and

Exchange Commission ("Commission")in the Division of Enforcement, at the


Commission's regional office in Atlanta, Georgia.

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 2 of 14

3.

This declaration is submitted in support ofthe Application of the

Commission for an Order to Show Cause and for an Order Requiring Respondents
to Comply with Administrative Subpoenas (the "Application") directed to
Respondents Securities Compliance Group, Ltd.("Securities Compliance"), Adam
S. Tracy, Esq.("Tracy") and Megan S. Ruettiger ("Ruettiger"). Upon information
and belief, Tracy is the principal of Securities Compliance, anon-public
corporation located in Wheaton, Illinois. Ruettiger is an employee of Securities
Compliance. Both Tracy and Ruettiger are believed to be residents of Wheaton,
Illinois.
4.

Along with other members ofthe Commission's Staff in the Division of

Enforcement("the Staff'), I am conducting an investigation captioned In the


Matter of Sonant Communications, Corp. and Certain Other Issuers. I strongly
believe that Securities Compliance, Tracy and Ruettiger all have either documents
or information that is relevant to the Staff's investigation.
5.

The subpoenas relate to an investigation concerning possible violations by

Respondents including, among other things, engaging in, or intending to engage in,
offering frauds based upon potential misstatements and omissions of material fact
in pending or recently effective Form S-1 registration statements and amendments.
Since April, 2014, fifteen corporations have filed with the Commission similar

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 3 of 14

Form S-1 and Form S-1 A registration documents and amendments to register
initial public offerings with Tracy acting as either the drafter ofthe documents,
providing a legal opinion on the registration statement, or both. These filings have
common characteristics and indicate that some ofthese companies:(1) may not
appear to be viable developmental stage companies;(2) may be seeking to create
fraudulent shell companies that evade requirements applicable to offerings by
"blank check" companies under Rule 419 promulgated under the Securities Act of
1933 ("Securities Act"); or(3)may have failed to disclose the identity oftheir true
control persons, promoters and gatekeepers.
ISSUANCE OF FORMAL ORDER OF INVESTIGATION
BY COMMISSION
6.

On October 28, 2015,the Commission issued an Order Directing Private

Investigation and Examination and Designating Officers to Take Testimony in a


matter entitled In the Matter of Sonant Communications and Certain Other Issuers
(the "Formal Order"), pursuant to Section 20(a)ofthe Securities Act of 1933 (the
"Securities Act") and Section 21(a) ofthe Securities Exchange Act of 1934(the
"Exchange Act").(A copy of the Formal Order is attached hereto as Exhibit A.)
7.

In the Formal Order, the Commission directed that an investigation be

conducted to determine, among other things, whether persons associated with


Sonant Communications and certain other issuers of public stock engaged in
3

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 4 of 14

violations of antifraud and registration provisions ofthe federal securities laws,


including violations of Section 17(a) ofthe Securities Act, Sections 10(b),
13(a) and 15(d) of the Exchange Act, and Rules lOb-5, 13a-1, 13a-13, 15d-1 and
15d-13 promulgated thereunder.
8.

The Formal Order designated me and other members of the Staff as officers

ofthe Commission for purposes ofthe investigation, and empowered me to


subpoena witnesses and require the production of any evidence deemed relevant or
material to the inquiry.
9.

The Commission's investigation In the Matter of Sonant Communications

Corp. and Certain Other Issuers is being conducted by the Commission's Atlanta
Regional Office("ARO"), which is located in the Northern District of Georgia.
ISSUANCE OF SUBPOENAS AND NONCOMPLIANCE
A. The Staffs Subpoenas for Documents
10.

On or about Tuesday, November 3, 2015, I issued and served a subpoena via

United Parcel Service requiring Securities Compliance to produce certain


documents to ARO by Thursday, November 19, 2015 ("the November

3ra

subpoena"). (A copy ofthe November 3rd subpoena and the United Parcel Service
("UPS")proof of delivery are attached hereto as E~ibit B.) (All subsequent
subpoenas were also served via UPS.)

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 5 of 14

11.

On Monday, December 7, 2015, I received a call from Alex Rue, Esq., who

stated that he represented Securities Compliance and Tracy. During that call, Mr.
Rue informed me that I would have the documents responsive to the November

3ra

subpoena by the next day, Tuesday, December 8, 2015. During the call, I told Mr.
Rue that, if it would be easier for him, the documents could be delivered as late as
Friday, December 11, 2015. No such documents arrived by close of business on
December 11, 2015.
12.

On Friday, December 18, 2015, I called Mr. Rue stating that I had not

received the subpoenaed documents and asked when I would receive them. Mr.
Rue responded that he would have them delivered that afternoon. No such
documents were received by close of business that day.
13.

On Tuesday, January 5, 2016, I called Mr. Rue to ask when I could expect to

receive the subpoenaed documents. During that conversation, Mr. Rue told me
that he would deliver the documents to the SEC by Friday, January 8, 2016. He
also stated that the responsive documents consisted of a stack approximately 3
inches high and a few cd disks. No such documents were received by close of
business on January 8, 2016.
14.

On Tuesday, January 12, 2016, I called Mr. Rue for a third time pointing out

that no documents responsive to the November 3rd subpoena had been received.

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 6 of 14

During that call, Mr. Rue represented that he had already sent the documents via
the United States Postal Service to ARO the previous week. I responded that no
such package had been received at ARO. However, I told Mr. Rue that I would
double-check with the staff in order to ensure that the package he claimed to have
sent had not been misplaced. Mr. Rue responded that I did not need to check on
the package, as he would send me another copy. No such documents were
received from Mr. Rue's office.
15.

On Tuesday, January 19, 2016,I called Mr. Rue a fourth time stating that no

subpoenaed documents on behalf of Securities Compliance had been received. Mr.


Rue responded that he would send the documents on either Thursday, January 21,
2016 or Friday, January 22, 2016. No documents responsive to the November

3rd

subpoena were received from Mr. Rue's office by close of business on Friday,
January 22, 2016.
16.

On Monday,February 1, 2016,I sent Mr. Rue a letter ("the February

1St

letter") referencing our previous phone discussions and informed him that he had
unti15:00 p.m. on Thursday, February 4, 2016 to produce the subpoenaed
documents. The February 1St letter stated that if the subpoenaed documents were
not produced by the time and date stated above, the Staff would consider all
available options including, but not limited to, the filing of a subpoena

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 7 of 14

enforcement action. No documents responsive to the November 3ra subpoena were


received by close of business on Thursday, February 4, 2016. (A copy ofthe
February 1St letter is attached hereto as E~ibit C.)
17.

On Wednesday, February 10, 2016,I called Mr. Rue pointing out once again

that no documents responsive to the November 3rd subpoena had been received.
Mr. Rue responded by stating that he would deliver the responsive documents to
ARO the next day, Thursday, February 11, 2016. I sent Mr. Rue a letter
confirming this discussion on February 10, 2016 ("the February 10th letter"). No
such documents were received by close of business on February 11, 2016.(A copy
ofthe February 10th letter is attached hereto as E~ibit D.)
18.

On Tuesday, February 16, 2016, I called Mr. Rue to inform him that still no

documents responsive to the November 3rd subpoena had been received. Mr. Rue
replied that the documents "are in the mail" and I should "get them tomorrow or
the next day." I sent Mr. Rue a letter confirming this discussion on February 16,
2016("the February 16th letter"). No such documents were produced by close of
business on Friday, February 19, 2016. (A copy ofthe February 16th letter is
attached as Exhibit E.)
19.

Mr. Rue finally produced some documents purportedly on behalf of

Securities Compliance on Monday, March 14, 2016. However, my review ofthe

~l

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 8 of 14

documents revealed that none ofthem were responsive to the November 3rd
subpoena for the following reasons:(1)none of the documents produced appear to
relate to any information regarding the entities and individuals named in the
subpoena;(2)those documents which are legible related to two companies that had
no bearing to this investigation;(3)there was no explanation of which pages
responded to which specific document request and no privilege log; and (4)ofthe
documents produced, 859 pages were either completely blank, unreadable due to
illegible copies or duplicates of documents produced.
20.

On Thursday, April 14, 2016, I sent Mr. Rue a letter stating that the

documents he produced in response to the November 3rd subpoena were not


responsive for the reasons stated in paragraph 20, above ("the April 14th letter").
The April 14th letter also gave Mr. Rue a deadline of4:00 p.m. on Friday, Apri122,
2016 to produce documents responsive to the November 3rd subpoena. No such
documents were produced.(A copy of the April 14th letter is attached hereto as
Exhibit F.)
21.

On Monday, April 18, 2016, I received a call from Mr. Rue. During that

call, I asked Mr. Rue why he had produced documents to the Commission that
were not responsive to the November 3rd subpoena. Mr. Rue told me that he had
sent documents that Tracy had prepared for a separate SEC subpoena concerning

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 9 of 14

an entirely different investigation. Mr. Rue stated that he would speak to his client
regarding the production of documents that were relevant to the November

3ra

subpoena. As of the date ofthis declaration, no documents responsive to the


November 3rd subpoena have been produced by either Securities Compliance or its
counsel, Mr. Rue.
22.

The documents sought from Securities Compliance are relevant and

important to the Staffs investigation, are not already within the Commission's
possession, and cannot be obtained through other witnesses.
B. The Staffs Subpoenas for Testimony
23.

tH
On Monday, January 25, 2016,I issued a subpoena ("the January 25

subpoena")for Tracy to testify at ARO on Thursday, February 10, 2016. Tracy


failed to appear for his testimony on the February 10th date. (A copy ofthe January
25th subpoena and UPS confirmation of delivery is attached hereto as E~ibit G.)
24.

When Tracy failed to appear for his testimony on February 10th, I called Mr.

Rue that day asking for an explanation. Mr. Rue claimed that after receiving the
January 26th subpoena, he sent me an e-mail suggesting different dates. During that
call, I told Mr. Rue that I had not received such an e-mail. I told him, however,
that I would, again, check my e-mail to see if it had somehow been missed. I
double-checked my email and found no such message. After checking my e-mail,

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 10 of 14

I called Mr. Rue for a second time that day, asking him to resend the original email suggesting alternate dates for Tracy's testimony. No such e-mail was ever
produced by Mr. Rue. During that second call, I asked Mr. Rue to reschedule the
date for Tracy's testimony to Thursday, February 18, 2016 or Friday, February 19,
2016, to which Rue replied that he "would try." That same day, I wrote Mr. Rue a
letter stating that if he had not contacted me with a date for Tracy's testimony by
5:00 p.m. the next day, I would him send a subpoena for Tracy's testimony to
occur at ARO on Thursday, February 18, 2016. (A copy of the February l Oth letter
is attached hereto as E~ibit D.)
25.

Mr. Rue failed to respond by close of business the next day, Thursday,

February 11, 2016. Consequently, I sent a second subpoena to Tracy in care of Mr.
Rue for Tracy's testimony to occur on Thursday, February 18, 2016 at ARO. (A
copy of the February 11, 2016 subpoena and UPS confirmation of delivery is
attached hereto as E~ibit H.)
26.

On Tuesday, February 16, 2016,I called Mr. Rue to confirm Tracy's

testimony for February 18th. Mr. Rue said that, while he had spoken to Tracy, he
had been unable to confirm the February 18th testimony date. I later called Mr.
Rue for a second time that day at approximately 4:00 p.m. During that second
conversation, Mr. Rue told me that he had spoken with Tracy but was still waiting

10

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 11 of 14

to hear from him concerning an acceptable date. As a result of my two


conversations with Mr. Rue that day, I agreed to postpone Tracy's testimony to a
date during the March 1-4, 2016 time period at ARO,and that Mr. Rue agreed to
provide a date during that time period when Tracy could testify.
27.

However, after my two conversations with Mr. Rue on February 16, 2016,

Mr. Rue failed to contact the staff regarding a date for Tracy's testimony during
the March 1-4, 2016 time period. As a result, on February 18, 2016,I sent Tracy a
third subpoena for his testimony in care of Mr. Rue, scheduling Tracy's testimony
to occur at ARO on Thursday, March 3, 2016. Both Tracy and Mr. Rue failed to
appear for Tracy's testimony as scheduled at 9:30 a.m. on March 3, 2016. (A copy
ofthe February 18th subpoena and UPS confirmation of delivery is attached hereto
as E~ibit I.)
28.

On Thursday, April 14, 2016,I sent Mr. Rue a letter referencing the

conversations contained in paragraphs 24 through 27. (This is the same letter


tH
referenced in paragraph 21 and attached hereto as E~ibit F). In the April 14
letter, I informed Mr. Rue that the staff was giving him until Apri122, 2016 to
provide dates during the weeks of May 16th and May 23rd when Tracy was
available to testify at ARO. The letter stated that the Staff would consider filing a

11

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 12 of 14

subpoena enforcement action against his client if such testimony dates were not
provided.
29.

On Monday, April 18, 2016, Mr. Rue called me and stated that he would

make Tracy available for testimony at ARO on Tuesday, May 17, 2016. During
that conversation, I told Mr. Rue that I also wanted to take the testimony of
Ruettiger, an employee of Securities Compliance. Mr. Rue agreed to provide
Ruettiger for testimony on Tuesday, May 17th as well. During that call, we agreed
that testimony on May 17th would begin with Ruettiger at 9:30 a.m. to be followed
by Tracy's testimony at 1:OOp.m.
30.

On Thursday, Apri121, 2016,I sent subpoenas for Ruettiger and Tracy in

care of Mr. Rue for their testimony to occur at ARO on Tuesday May, 17, 2016.
(Copies of these subpoenas and the UPS confirmations of delivery are attached
hereto as Exhibits J and K,respectively). I also sent a cover letter to Mr. Rue
confirming our conversation of April 18, 2016("the Apri121 St letter"). (A copy of
the Apri121 St letter is attached hereto as E~ibit L.)
31.

On Tuesday, May 16, 2016, at approximately 9:OOa.m., Mr. Rue called to

inform me that neither Tracy nor Ruettiger would appear for testimony the next
day, Wednesday, May 17th. He also told me that, if forced to testify, his clients
would invoke their Fifth Amendment right against self-incrimination in response to

12

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 13 of 14

all questions. When asked, Mr. Rue provided no explanation for Tracy and
Ruettiger's failure to appear for their testimony the next day. During that
conversation, I asked Mr. Rue to provide rescheduled testimony dates as soon as
possible. I suggested either Tuesday, May 24, 2016 or Wednesday, May 25, 2016
as the rescheduled dates.
32.

I called Mr. Rue back at approximately 2:00 p.m. on Monday, May 16, 2016

to ask whether Mr. Rue was able to confirm with his clients my proposed
rescheduled testimony dates. Mr. Rue stated that he had not been able to so
confirm.
33.

I called Mr. Rue again the next day, Tuesday, May 17, 2016. During that

call, Mr. Rue confirmed that Tracy and Ruettiger would make themselves available
for testimony at ARO on Tuesday, May 24, 2016. We agreed that Ruettiger's
testimony would be first (starting at 9:30 a.m.), to be followed immediately by
Tracy's testimony. I sent a letter to Mr. Rue that same day memorializing our
conversation (`the May 17th letter"). (A copy of the May 17th letter is attached
hereto as Exhibit M.)
34.

On Monday, May 23, 2016 at approximately 5:00 p.m., Mr. Rue called me

to say that neither Ruettiger nor Tracy would be appearing for their scheduled

13

Case 1:16-mi-00041-WSD-CMS Document 1-2 Filed 06/15/16 Page 14 of 14

testimony the next day. No reason was provided by Mr. Rue for Tracy and
Ruettiger's failure to appear for their testimony the following day.
35.

Neither Ruettiger nor Tracy appeared for their testimony on Tuesday, May

24, 2016.
36.

On June 14, 2016, Mr. Rue emailed me indicating that he was out ofthe

county, returning on June 22, 2016. In his message, Mr. Rue offered (as he has
several times before)to make his clients available. In this instance, he did not
include a date certain, but instead suggested that the parties find a mutually
agreeable date after June 23, 2016. Mr. Rue's email made no mention of
producing the subpoenaed documents.(A copy ofthe June 14th email is attached
hereto as E~iibit N.)
37.

The testimonies of Ruettiger and Tracy are relevant and important to the

Staffs investigation, are not already within the Commission's possession, and
cannot be obtained through other witnesses.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on June 15, 2016.

~~
Edward H. Saunders
Staff Attorney
United States Securities and Exchange Commission
14

Case 1:16-mi-00041-WSD-CMS Document 1-3 Filed 06/15/16 Page 1 of 6

EXHIBIT A
Formal Order

Case 1:16-mi-00041-WSD-CMS Document 1-3 Filed 06/15/16 Page 2 of 6

NON-l'UBlLi(:
Ui~ii'i'i11i) S'T'ATES (JI<" AMEi2ICr~.
l3ef~yrc the
CONIM~SSIC.}~7
SLCU~ZI'~'IT~,S ~i~IJ[,XCI~AIVG~;
C)ctol~er 28, ?..f)15

Cn trte Nlafter of

f)1tllER DiREC`~`ING PR.IVA7"E


XNVES'1'X(,ATTE)1V ANI)I~:XAMINA'1"~O1V
AND DLSIGNAT'ING +nFFICFRS TO 'TAK.I;
TES'T`IMONY

SonaritCU~mi~irrnicati~is Corp,
and Certain Other Issuers
A-03672

~.
The C;ommission's pudic af~icial files disclose that:
its princi~aal
A.. Sox~ant Gomrnunications Corp.("Sonant") is a Wyotxxing corporation with
ion
S-1
registrat
a
offce in. Pompano ~3each, Florida. Un August 4, ?._U 1 S, Sonant filed Form
seeking
2$, 2Ui 5,
statement with t ae Coznniission and filed an arnendmez~t thereto on Septeznl~er
tion
The
.
re~;istta
offering
public
000
$3,OOQ,
a
in
to register 10,000,000 common shares
statzinent has not become effective.
in Hong
B. Gusher, Ina("Gusl~en")is a Nevada cor~~oration wiCh its principal office
the
with
nt
Kong, C}iit7a. Ozi June 1, 2015, Goshen fried a Farm S-1 registrafia~i stateme
201.5, seeking to register
Commission and filed arnez7drnents #hereto on July ~,2015 a~icl July 23,
000 public offering.
a
$2,072.,
ira
s~~ares
n
commo
Z,OOU,000 common shares and resell 590,000
"I`he registration statement became effective oxi July 31, 2015.
l office its Minden,
L. Fklips Corp.(`<Eklips") is a Nevada corparatiot~ vvitlx its princii~a
t. with the
Ncvaci~z. On Jan~Y~ury 8, 2015, f1'klips filed n Form S-1 registratiarz statemen
20,215, tlpril 28,
Commissic~t~ at~d filed ametidn~~er~ts #lYereto on February I0, 2f)~5, March
04 coxnman s~~axes
S,OOO,Q
register
to
seeking
2p 15, September 1. S, 201 ~ arzd Oclaber 13, 2015,
e.
effectiv
become
an a X100,000 pui~iic offering. TiYie registratzun statement has not
with its ~rinci.~al
~3. Strang Solutions, Ixxc.{"StroY7g Solucic~ns7tl) is a Nevada corporation
a Form S-l. re~;istr~ation
c~flice era Kharkov,[Ikraine. 4)n April 8,ZO l S, Strong Salo#ions f1~c:1
June
26,2U1S, August 18,2015
on
thereto
statea~rie~xt with. the CaX~~z~issiou anci fi1~d azz~endments
in a $165,000 public
acid Se~t~n~ber 1.6, 2015, seeking to register 1,650,fl00 common shares
offezing. The re~isttatioil staten7.erit has not become effective.
corpoz~atic~l~ with its
I:. Command Conrol Center harp.("Command Cautrol"} is a Neva~cla
ftc:d a Farm
ci
Cc~nlrc~l
Com.man
~~yiic~ci~~al catfice ira :[3c~sti~n, lv~assachusetts. t.)n I~/Iarch 2fi, 2Q15,

Case 1:16-mi-00041-WSD-CMS Document 1-3 Filed 06/15/16 Page 3 of 6

r
S-1 registrat.~c~r~ statert~ent ~vitl~ t1~e Commission and filed amendments thereto on Se~iembe 18,
a
20l 5 and Septei~lber 25, 2015, set.kirig to te~;ister 80,t)Q0,000 commt~r~ shares in $4,OOO,UO(}
~~ublic c~ffe~~ing. 1'lae registratic~i~ state7T~cnt has not become effective.
C~. 'I'o~hc~an I~c~lc3.ings, I~~c.("~I~o;;k~oan")is a C)elaware corporation with its ~~riixcipal office
irz Osaka, ,ia.~~ar~. f:3n April 3, 2014,"l~oshoaxa sled a Form S-~l registr~atioi~ statement with tkte.
Co~x~~rnissic~rr acid ailed ak~aenc~t~lcnts iheretc~ on May 1i, 2014,.)une 12, 201 1, .Culy 9,?014, July
r
7.9, 2014, August 21, 2014, S~x~teii~it~~.r 9, 2014,(~ccober i, 2014, nct<>ber 21, 2014, Nove~~a~e
common
Q
~~egister
2,000,OO
t4
seeking
12, 2014, Noverz~t~er 28, 201.4 acad Uccenabcr 8, 2014,
on
shares and resell 70,000,040 cornmi~n shares in a $72,0 0,000 ~~ublic offering. The registrati
state~i~ent became effective on llccember 11, 2014.
G. NL One Corp.{"NL()ne")is a Nevada corporation with its principal office in
Cranston, Khode Island. On Septezx~ber 3, 2014, NC., One filed a ~or7r~. S-1 registratioxl statement
1,
with the Coirzrriission and tiled amendments thereto on (Uctobe- 15, 2014, November 20, 201
2015,
April
29,
December 8, 2014, February .3, 2015, February 12, 2015, April K, 2015 and
seeking to register 24,$82,000 shares in a X497,640 secondary offering. Tlae registzaiion
siatemen.t became effective on Nlay 1, 2015.
H. Carbon Ceedit I~~tertaational, Inc.("Carbon")is a Nevada corporation with its priyicipa~
office in I.,os Angeles, California. On October 8, 2014, Carbon fi1~d a Lorin S-l. with the
Commission and filed aiz~endments ltaereto on December 14, 2014, January 14, 2U 15 and
~~~bruary 2, 201 S, seeking to register 4,000,000 common shares in a $400,000 public ofCeritig.
"I~he registration slat~.zx~ent became efi.'ective on February 6, 20J.S.
T4A Optical Tech, Inc.("'1~OA Optical"} is a Delati~vare cor~~oration with its principal
I.
office in Osaka, Japan.. On Novernb~r i8,2014, TOA Optical f.rled a Donn S-1 with the
201 S
C`omxnissiota and tiled acx~et~da~~e~ats tl~eret~ an January 20,2015, March 3, 2015,.E1pri17,
sharesrn
at~d May 15, 2015, seekinf; to register B4O00,OOU shares and xese1160,000,000 commoxa
S,
June
2015.
on
effective
bec~ume
t
statemen
a $17,000,000 publzc c~tfering. "I'he registration
I1VIC izac.("1J'VIC")is a Nevada corporation with its principal office ix~ Las Vegas,
J.
nts
T~levada. On May 8,2015, UVIC elect a Form S-I with the Co~nmissiozi and flied amendme
7,000,000 shares in
thereto on J~~iie l5, 20l 5, July 7.5, 2()I5 and July 28, 2015,seeking to register
on August 7, 2015.
a $70,000 public offeri~ig. The registration statement becaime effective
principal
K. Supreme Legal, Inc.("Supreme Legal"} is a Nevada cozpo~atiorl with its
S-1 with
Farm.
a
hied
Legal
office in Santa Clara, Califanzia. On November 17, 20I4, Supreme
2015, May 15,
the Commission and filed atnendnnents thereto an February 1K, 2015, March 3,
r 1 1, 2015 and
2011 S,.Tune 1 U, 20i 5,.Curse 12., 2015, July 1b, 2Q 15, /~u~;ust 11, 201.5, Septembe
The
o#fering.
public
$40Q,000
in
a
Qctaber 2, 2015, seeking I:a register 4,000,000 s[~ares
registration statement has not become effective.
Office in
Z,. Triinax Consulting, Inc.(`Tricnax")zs a. Nevada corporation with. ifis principal
the
Beverley 1iills, California. On November 18, 2Q 14, `I'rinna~c .filed a Forn~ S-1 with
March 9,
and
2015
30,
Jaxivary
Commission and ~Ied atnendn~ents thereto on January 2, 2015,

Case 1:16-mi-00041-WSD-CMS Document 1-3 Filed 06/15/16 Page 4 of 6

(~OQ public; offering. T'l~e a~e~istration


2015, seeking to register 4,OQ0,000 shares in a ~40fl,
statement became ~:ff:ecti ve on Ma~~ch 2.0, 201 S.
la corporation with its principal offce in
1V1. Ivl~' Ventures, Iz~c.("MI' Ve~7tw~es") is a Nc,va.c
V<;.tares filed a Dorm S-1 with tl~e
~.,i~ng T=3e~ich, Itie~v York. On Septembez~ 12, 2UI4, Ml'
7_.3, 20 i 4 and Novetxzbcr 21, 201 ~,
Commission. acid filed amet7dn~ents thereto on October
pui~lic ofleri.x~g. The re~istrati~t~ statea~ient
seeking t~ register 2,000,000 shares in a $200,000
becait~e: e;}fecti ve o!~ l:)ccen~bex 11, 201 ~.
atioX~ with its principal office icy
I~1. Itealco Interriativtial, Ca~c.("Realco")is a Nevada corpor
Realco Tiled a Form S-1 with tie
K.iryat Sefer, Modi.ita. Il1it, Israel. On Mar~;h 7.6, 2014,
8, 2014, May 3U, 2014, June 24, 2014, July
t:oza~missiorz at~d filed art~endnlents thczetc~ orz May
sha~~es in a $400,000 public offerin.~.
14, 201.4 and July 2l,2014,seeking to register 2,000,000
7, 2014.
Tlie registration statement bec~nie ~;.ff:ective on August
with its principal office in Hoi1g
O. XYI Uroup, Inc.("XYI"j is a Nevada corporation
S-1 with the(:ommission and filed an
Kong, China.. On February 27, 2015, XYI filed a Form
er 2 0,000 shares izi a $336,Q04 public
ayY~eridrzzent thereto on August 3, 20I5, seeking to regist
e effective.
c~~eri~~g. "Che registration statement has not becom

aission that tends to show

Caznrt
Men7bers of the staff Piave reported information to the
that from at least A~~ri13, 201 -:

ties Aci of 1933{"Securities Act"),


~^~. In ~~ossi~le violation of ~eciiou l7(a) of the Securi
Su~nene Legal, and XYI,their officers,
Sox~ant, F:;klips, Strom; Solutions, Coz~ru~iand Control,
affiliates and/or other personas or entities,
cii.rectors, employers, partners, subsidiaries, and/or
i securities, may have been or mad be
directly or iidirectly, in the offer or sale of certaiz
or obtainicig money ar property by Yi~eans of
exnployzng devices, schemes, ar artifices to defraud,
state material facts necessary in order to make
ur~txve statements of material fact or omitting to
s under which they were or are made, not
the statements made, in the light ofthe circumstance
ces or sourers of'business which operated,
misleading, or engaging zn transactions, acts, practi
upon any person. As part ofor iza connection with
operate or would operate as a fiaud or deceit
or indirect.iy, may have been car may be, among
t~~.s~ ~.ctivi.ti.es, such persflns ~r entities, drrectly
or fatting to disclose material :Facts
other th.i.~i~s, making false statements of material fact
sses, operations, management, control
concerning, anong other things, the intended busine
s, Strong Solutions, Coznznand Cc~ntroi,
persons, anal. #'financial cu~idition of Sonant, l:;klip
Supreme Le~ai, and XYI.
ties Act ~znd Section. ZU(b)of the
I3. 1~~ passible violation of Section i7(a) of the Securi
"Exchange A.ct")anc! Rule l Ob-5 thezeuiader, Gusfier~,
Securities Exchange Act of 1934(
"~'rimax, MP Ventures, Realco and their
'I"os~oan, NL One, Carbon, UVIC,TOA Optical,
, ancUor affiliates and/or other persons or
officers, directors, employees, partners, subsidiaries
or in connection with the purchase nr sale of
ez~.l:ities, directly or indirectly, iu the offer or sate

Case 1:16-mi-00041-WSD-CMS Document 1-3 Filed 06/15/16 Page 5 of 6

s, sc:hez~aes, nr ~~a.-I.i~ces tee defraud,


cc:rtai~~ s4curities, n ay have; be;cn ~r may he e~rapioyi~~~ device
of matefiat fact or oinif.tin~ tc~ state
c~bi~inrrrg rrroric y car ~~rt~aperty key sn~ans of uz~tri~e st~tera~ents
iri the light of the. circumstaiaces
material fac;is r~.ecessary izt order to make ll~e statements mace,

engaging in transactions, acts, practices


under which. they rr~er~e t~r~ are xzaade, not n~isf.eading, or
opeA~ate as a t'raud or deceit upon a~~y
or courses of business wF~icPi vperatec~, t~p~rate, or tiaould
sz~ch persi~ris or erati.ties, ~ireclly or
perso~l. As pa~~t off.' car i~x cozu~ecti~aa with these activities,
, naaitin~ false statt;mer~ts of m<~~erial
indirectly, may knave been ~r ~tirxy die, axx~r~cr~; oth r thza~gs
among ~thzr things, the antendet~ businesses,
fact or faiting to disclose rnatc;rral facts c~~~cei~nx~xg,
ial condition cif Crusherz,"I'osk~~an, NL (:)ne,
operations, maziagen~erit, control persa~7s, aird financ
arid. t{.~alco.
Lari~on, UVIC,TOA Optical, Trirnax:, M~ Ventures
l~.ct a~~d Rules 13~-1 az~d 13a-13
~;. In passible vivlatiaz~ ofSection 13(a) of the Exctiax~ge
directr~rs, employees, ~7~ItI1f:L'Sy subsidiaries,
thereunder, Tc~shuan acid TOA t)~~tica~, its offcers,
g to die hied with the Comrnissic~n
and/oz affiliates, rxiay lave bc;en or znay be fitin~; or causin
quaxter~y reports on Dorm l 4-Q, anal
annual xe~orts c~~~. ~'c~rti7 1.()-~, eurr~nt reports on Dorm B~K,
may co~itain false staxements of material
any an~.endme:nts traereto tixat n ay have c.ant~ined and
facts necessary, iii order t4 make tl~.e
fact or m.ay have u~x~titteci and r~aay omit to state rr~aierial
under which they were or are made, n<~t
s~atem.ents made, izy t ie l~bht o#`tie circumstances

misleading.
u~~e het and Rules i5d-1 ~~cl., 15d-1.3
ll. in passible vialati~3n ofSeetic~n 15(d)of the Ex.ch:
Optical, CJVIC, Trirnax, MP Ven.f.res,
thereunder, Gust~c~r, Taslzoan, NL One;, Caxban, TflA
iaries, andlor affiliates, may .hive
rs,
Realeo, their officers, ~ii~ectars, employees, paz~tne subsid
annuat reports an I'Qrm ~0~-~, anal/i~r
been iiirig or carxsing to be filed with The Co~iimi~sion
thereto, that rr~ay have contained. a~.d zx~ay
quarterly reports ut~. Dorm 1Q-Q,and any arnendnnants
omitted and may arnit to state nnatsrial facts
contain false staterraerats of materiaf fact ter i~ay .have
floe light of the circumstances under w~i.c~
necessary, in. order cc~ z~1ak~ the statements made,in
they were ar are niac~e, fiat misleading.
such persorss or entities,. directly or
E. While ~n~;a~~i ire the above-dcscrib~d activities,
means or iristrurnents of tr~nsport~iicaza. ar
indirectly, may hate beer ar nx~y t~ making use of any
ox of any facility c~fany national
cozx~munieation in int~rs#;~t~ eotl~tlrierce, or ofthe mails,
securities.exchange.

anr~. cle~r.~.i.ng such acts and


7.'~~~ Conzmissian, haviaRg cv~sidered the staff's report
n 17(x) of the S~cr.~ities Act, Sections 10(b),
prac:tiu;s, if ~~ue, tc~ be ~assiblt; violations ofSectio
lflb-S, 13a-1, 13a-13, 15d-1 and 15d~J.3
13(a) and 15(d.) r~ftlle lCxchange Act, and Rules
priat~ and. hereby:
proznul.~;ateci th~reui~der, fcnd~ it necessary anti apprca
ofthe Securities Act ~zr.d Sectia~~
ORDERS, pursuant to the q~rovisions of Section 2t}(a)
~n be u~1ad~ t~ deterc~ine wh.~ther any
21(a) ofthe JCxchat~~~ Act, that a private inve5tigati
~o ~ng~e in, any ofthe r~~artc~ci a~;ts or
}persons ox entiiic;s have engaged in, or aze aboa~t
~sr abject;
practices ox any acfis or ~~ractic~s ofsi~nil~r purport
G~

Case 1:16-mi-00041-WSD-CMS Document 1-3 Filed 06/15/16 Page 6 of 6

~n 19(c;) of tire: Se~;urifies .Acl and Section


C)kZI?T`hS, pursuant to the pravi~ions of Se~tic
ch in~~estagati~~a, Walter E. Jospin, William ~'.
21{b)~f ttre Ex~.hange Act, t~aat faz ~utpo~es afsu
ers,.Tohzi G. Westr-ic~, (+i~icheal l~. Wats~~~,
Hicks, Stephen 1 . tjonahue, Lctward Ii. Saund
n Jeffries, Kr~sta Caran~n ~n~ I3ci.an ~3asingea and
~ou~;las I7ykhuizeri, Jt~i~r C)'Efallozan,.iusti
of the C;o~nrnissio~~ and are ~rr~.pc~wered to
each of them, are herc;by desi~?;nat~;d as ofCcers
w~iinesse~, connpe! fl~cic ~ttenda.~~ae, taace evidence,
admir.~ister <~aths and aftirt~~atians, sttt~~oe:ria
s,conespoiidence, rnemor~~r,da., o.r. ether reccsrds
and require thc~. ~~rnductior of any b~oe>ks, paper
and to perfUrcx~ all. other duties in ~~nne.~.ti~ca.
dec~~ned relevant car materiel tp ll~e inquiry,
tliere~~~itki as }~rescrii~ed by lar~v.
c~ 8(e) of the Securities Act, th~.t a~i
ORI~ER.S, pursuant to t.txe prc~visians of 5ectia
carder should issue un.c~.er SecCion 8(d) nf. t.lx~.:
a
ex.amrnation fae made to determi~xe wX~Gther stop
~n s#ate~nents and amendments thereto filed by
Securities Act with respect to fhe registr~,tic
Command Control, Tnshoan, NL Oxxe, f~;arbari, "N'OA.
Sonaz~t, Goshen, f..;klrps, Stroizg Solutions,
Ventures, R.ealco ar~~i XY[; and
C)1~tical, I~VIC, Su~ccme Legal, Tritt~ax, ~!IP
of Section 8(e} of the Sccuriiics A.ci:,
I'UR1'HL~t +l"}RDrR_S, pursuant to the p~ovisions
Walter E..fosprn,'~illiam 1'. ~-Iicks, Stephen E.
that for tY~e purpose ofsuch exarniriation,
ick, Micheal I). Watson, Douglas Dykhuizen, Jc~l~n
Dc~rxahue, Edward H. Saunders, Ja~~.rr G. Westr
~3rian L~asinger, and each of then, acre l~erel~y
U'Hal~~ran,1'ustin 3effries, ICrysta Cannon and
are empowered to have access to and may de~na~i.d
designated as officers ofthe Comrrxis~iz~n and
may administer oaths and af~irnnatic~ns to an~i
the production ofany books and papers, azad
Solutians, Command Control, Tashoan, NI~ C~3ne,
examine Sonant, Goshen, Eklips, Str~rrg
,Trinna~c, MP Ventures, I2.ealcn and XYI, th.e
Cark7on, TC7A ~?~tical, UVIC,Suprecrze Leal
ct of any rz~atter relevant to the examination, and may,
underwriter, ar tuzy other ~ersan, in respe
ui'a balance; sheet exhit~iting the assets of Sonant,
in their discretion, require the production
ConUrol, Toshoan, NL Una, Carbon, TOA Optical,
Goshen, Lkli~as, :Strong Solutions, Command
res, R.~al~o and XYi,ox their incoz~.e statement, or.
IJViC, ~u~reme Legal,.Trimax, MP Ventu
ieci accountant approved by the Commission.
both, to ~e c;ertified by a public or ce;rtif
k3y tl~e Commission.

~3rcnt J. T^fields
Secretary

~~r. '# . ~'~tet'~on


/~~s~~~~~~t ~ecret~rr~r

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 1 of 32

EXHIBIT B
Securities Compliance subpoena package dated November 3,2015 and the
United Parcel Service proof of delivery.

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 2 of 32

LJNIT'ED STATES
SECURITIES AND EXCHANGE COMMISSION
ATLANTA REGIONAL OFFICE
950 East Paces Ferry Road,N.E. Suite 900
Atlanta, Georgia 30326-1382
Telephone: (a04)842-7680
Facsimile: (404)842-7633

Edward H. Saunders
Senior Counsel

November 3,2015
VIA UNITED PARCEL SERVICE
Custodian of Records
Securities Compliance Group, Ltd.
520 W.Roosevelt Road, Suite 201
Wheaton, Illinois 60187
Re:

In The Matter of Sonant Communications Corp., and Certain Other Issuers(A-03672

Dear Sir or Madam:


The staff ofthe U.S. Securities and Exchange Commission is conducting an investigation
in the matter identified above. The enclosed subpoena has been issued to Securities Compliance
Group, Ltd("Securities Compliance")as part of this investigation. The subpoena requires you to
give us certain documents and to provide sworn testimony. It also requires you to preserve
evidence, including electronically stored information. Please note that if you comply with the
instructions for producing documents, you will not need to appear for testimony at the
indicated time.
Please read the subpoena and this letter carefully. This letter answers some questions you
may have about the subpoena. You should also read the enclosed SEC Form 1662. You must
comply with the subpoena. You may be subject to a fine if you do not.
Producine Documents
What materials do I have to produce?
The subpoena requires you to give us the documents described in the Attachment to the
subpoena. You must provide these documents by Thursday, November 19,2015 at 9:30 a.m.
The Attachment to the subpoena defines some terms(such as "document")before listing what
you must provide.
Please note that if copies of a document differ in any way,they are considered separate
documents and you must send each one. For example,if you have two copies ofthe same letter,
but only one of them has handwritten notes on it, you must send both the clean copy and the one

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 3 of 32

Custodian of Records
Securities Compliance Group, Ltd.
November 3,2015
Page 2 of5
with notes. If you prefer, you may send us photocopies ofthe originals. The Commission
cannot reimburse you for copying expenses. The copies must be identical to the originals,
including even faint mazks or print. If you choose to send copies, you must keep the originals in
a safe place. The staff will accept the copies for now, but may require you to produce the
originals at a later date.
If you do send us photocopies, please put an identifying notation on each page ofeach
document to indicate that it was produced by you and number the pages of all the documents
submitted. For example, if Jane Doe sends documents to the staff, she may number the pages
JD-1, JD-2, JD-3, etc., in a blank corner ofthe documents. Please make sure the notation and
number do not conceal any writing or marking on the document. If you send us originals, please
do not add any identifying notations.
The staff requests that you provide the applicable in both paper as well as in a compatible
electronic format. Please have your electronic production produced to the Commission pursuant
to the SEC Data Delivery Standards attached hereto.

Do 1need to send anything else?


You should enclose a list briefly describing each item you send. The list should state
which paragraphs)in the subpoena attachment that each item responds to. A copy ofthe
subpoena should be included with the documents that are produced.
Passwords for documents,files, compressed archives, and encrypted media should be
provided separately either via email addressed to ENF-CPU@sec.gov,or in a sepazate cover
letter mailed separately from the data.
Please include a cover letter stating whether you believe you have met your obligations
under the subpoena by searching carefully and thoroughly for everything called for by the
subpoena,and sending it all to us.

What if.l do not send everything described in the attachment to the subpoena?
The subpoena requires you to send all the materials described in it. If, for any reason
including aclaim ofattorney-client privilege you do not produce something called for by the
subpoena, you should submit a list of what you are not producing. The list should describe each
item separately, noting:

its author(s);

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 4 of 32

Custodian of Records
Securities Compliance Group, Ltd.
November 3,2015
Page 3 of5
its date;
its subject matter;
the name ofthe person who has the item now,or the last person known to have had it;
the names ofeveryone who ever had the item or a copy of it, and the names ofeveryone

who was told the item's contents; and


the reason you did not produce the item.
If you withhold anything on the basis ofa claim ofattorney-client privilege or attorney work
product protection, you should also identify the attorney and client involved.
Where shouldIsend the materials?
You may send the documents to:
ENF-CPU
U.S. Securities and Exchange Commission
100 F St., N.E., Mailstop 5973
Washington, DC 20549-5973
For smaller electronic productions under l OMB in size, the materials may be emailed to the
following email address: ENF-CPU@sec.gov.
Please send a copy of all responsive materials to:
Edward H. Saunders, Esy.
U.S. Securities and Exchange Commission
950 East Paces Ferry Road, N.E., Suite 900
Atlanta, Georgia 30326-1232
Testi in
Where and when do 1 testify?
The subpoena requires you to come to the Commission's offices at 950 East Paces Ferry
Road,N.E., Suite 900, Atlanta, Georgia 30326-1232 on Thursday,November 19,2015,at 9:30
a.m,to testify under oath in the matter identified on the subpoena. Your testimony will be

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 5 of 32

Custodian of Records
Securities Compliance Group, Ltd.
November 3,2015
Page 4 of5
recorded by audio and stenographic means. But, as noted above,if you comply with all the
directions for producing documents,we will not require you to testify at the indicated time.
We may require your testimony later, however.
Other Important Information

May I have a lawyer help me respond to the subpoena?


Yes. You have the right to consult with and be represented by your own lawyer in this
matter. Your lawyer may also advise and accompany you when you testify. We cannot give you
legal advice.

What will the Commission do with the materials Isend and the testimony 1provide?
The enclosed SEC Form 1662 includes a List ofRoutine Uses ofinformation provided to
the Commission. This form has other important information for you. Please read it cazefully.

What will the Commission do with the materials Isend?


The enclosed SEC Form 1662 includes a List ofRoutine Uses ofinformation provided to
the Commission. This form has other unportant information for you. Please read it cazefully.

Has the Commission determined that anyone has done anything wrong?
trying

to determine
This investigation is anon-public,fact-finding inquiry. We are
whether there have been any violations ofthe federal securities laws. The investigation and the
subpoena do not mean that we have concluded that you or anyone else has broken the law. Also,
the investigation does not mean that we have a negative opinion ofany person, entity or security.

Important Policy Concerning Settlements


Please note that, in any matter in which enforcement action is ultimately deemed to be
warranted, the Division of Enforcement will not recommend any settlement to the Commission
unless the party wishing to settle certifies, under penalty ofperjury, that all documents
responsive to Commission subpoenas and formal and informal document requests in this matter
have been produced.

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 6 of 32

Custodian c~fiZ~cards
Securities Camplia~lce CTroup, Ltd.
Nove~~~ber 3,2015
Page 5 cat 5
1 haue r-ecrd lhis letter, the subpaenu, ar~d tfre ,S'EC Fvrm 1662, bztt Istill have cJuestions. ~i~l~at
shoulcll tlo?
If you have any oilier questions, ynu may call m~ at(~q4) H42-7b80.
Very t~vly ~~ours,

~~~_

Edward H. Saunders
Senior Counsel
Division ofEnforcement

Enclosures:

Subpoena
~t~bp~ena flttachn~ent
SL~C Delivery Standards
SAC Form 1662

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 7 of 32

SUBPQENA

TJNITE:D STATES CF AMERICA


SECLJ1tI'~`IES AND EXCHANGE COMMISSION
IT7 Thy Matter Uf'Sc~n~~t Comnlunicati~ns C,t7r}~.. and Gert<iin Other Issuers (/1-03672)
C~rstodian of TZecords
Securities Gonipliance Graup, Ltr~.
520 W..Roosevelt Road, Suite 2~1
1~h~atan, Illinois 601 ~7
YOU MUST PRODUCE everything specified in the Attachment to this subpoena to officers ofthe
Securities and Exchan~c Commission at fhe place, date ana time specified below: United States
Securities and Exchange Cc~m.inission,9Sq East Paces Ferry Itnad, N.~,, SL~ite 90Q, Atlanta,
Georgia ~U326-1382 on '[liursd~y, November 19,2()15 at 9:30 a.rn.
Y4U MUST TESTIFY before officers o~'the Securities and Exchange Commission at the place,
date and time specifed below: United States Securities and exchange Conanlissian,950 East daces
Ferry Roars, N.E., Suite 900, A:tlant~, Georgia 30326-1382 on Thursday,November 1 ~,2015 at 9:30
a.m.
FEDERAL LAW REQUIRES Y()U TO COMPL'i'WXTI-i THIS SUBPOENA.
~~~iliicc~ tc~ cc~niply may subject you to ~ fine and/or inaprisanment.

By:

~~-"~~ ~~
Edward ~-I. Saunders
S~:nior Counsel
Division ofEnforcement

-~~~-~'t..------

Date: November 3, 2Q15

I am an o:fficcr of the Securities and I~xcllange Commission auth~rir~d tc~ issue sub~aenas in this
matter. "Clie Securityes and Lxch~ngc Commission }Yas issued a far~ilal order autl~nri;ring this
investi~aiion under Section 2()(a) Uf the Securities Act o1' 1933("Securities J~ct")and SECtion 21(b)
of the Seeuriti~s Exch~n~e Act of l 934. The Canlmission has ~Iso issued ate Orc~c~r of Examination
udder Section 8(c)ofthe Securities Act..
NOTICE'r~ W17'N~5S:

iFyau claim << witness fee or mile~gc, submit this subpoena with dte claim voucher.

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 8 of 32

In The Matter of Sonant Communications Corp., and Certain Other Issuers


(A-03672)
ATTACHMENT TO SUBPOENA
To: Custodian o!Records
Securities Compliance Group,Ltd.
Dated November 3,2015
I. Instructions and Definitions
You must keep, maintain and otherwise preserve all original documents
responsive to this subpoena.
2.

Please number any photocopied documents that you produce. Do not number
original documents.

3.

Please produce an index of all documents that you produce per subpoena,
paragraph, and subparagraph number.

4.

Please produce a log of any responsive documents that you do not produce on the
claim of privilege. Please state in the log:(a)the date and number of pages of the
document; (b) its title (if any); (c) its general subject matter; (d) the name and
address of the author of the document;(e) the name and address of each person
who possessed a copy of the document;(~ the name and address of each person
to whom the document was distributed, shown, described or explained; (g) the
relationship of the author to each person who possessed a copy, and each person
to whom the document was distributed, shown, described or explained; (h) the
present location and custodian of the document; (i) the particular privilege
claimed and a full description of the factual grounds upon which it is being
withheld; and (j) all facts which, objectively viewed, may raise an issue regazding
whether the privilege has been waived.

5.

Please produce a log of any responsive documents that aze known to you but are
not presently in your possession, custody or control. Please state in the log the
present or last known locations and custodians of the document, or otherwise the
identity of the persons or entities most likely to have relevant knowledge
regazding the document.

6.

Please produce a log of any responsive documents that have been destroyed,
discarded, or lost. Please include: (a) the date and number of pages of the
document; (b) its title (if any); (c) its general subject matter; (d) the name and
address of the author of the document;(e) the name and address of each person
who possessed a copy of the document;(:~ the name and address of each person
to whom the document was distributed, shown, described or explained; (g) the
date, manner and reason the document was destroyed, lost, or discarded;(h) the

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 9 of 32

names and addresses of all persons who were involved in destroying, discarding
or losing the document, and all persons who authorized that the document be
destroyed or discazded; and (i) the names and addresses of all persons and entities
that might still have a copy ofthe document or any part of it.
7.

You are required to preserve and maintain all computers used by directors,
officers, principals, partners, portfolio managers, research analysts, investment
advisors, registered representatives, employees, lobbyists, and consultants of
Securities Compliance Group, Ltd.("Securities Compliance")and all information
stored on said computers for the period of Mazch 1, 2014 through October 31,
2015. This includes, but is not limited to, hard drives (both desktop and laptop),
peripheral storage devices (disks, jump drives, blackberries, smartphones, etc.)
and your computer servers. The failure to preserve and retain the computers used
by the directors, officers, principals, partners, portfolio managers, research
analysts,investment advisors, registered representatives, employees, lobbyists and
consultants of Securities Compliance as well as its exchange server(s), will
constitute spoliation of evidence and may subject you to potential sanctions. To
this end, you should, among other things, preserve all computing devices
currently or previously issued to the directors, officers, principals, partners,
portfolio managers, research analysts, investment advisors, registered
representatives, employees,lobbyists, and consultants of Securities Compliance in
a manner designed to prevent data alteration, deletion, or spoliation that may
occur whether through operator or operating system action. Furthermore, you
should terminate all document retention policies which might operate to azchive
or purge data/electronically stored information from the email, instant message, or
network storage for directors, officers, principals, partners, portfolio managers,
research analysts, investment advisors, registered representatives, lobbyists, and
consultants of Securities Compliance.

For the purpose ofthis subpoena,the following definitions apply:


1.

Communication. The term "communication" means the transmittal of


information (in the form offacts, ideas, inquiries, or otherwise);

2.

You or Your. The term "you" or "your" refers to Securities Compliance Group,
Ltd., a law firm based in Wheaton, Illinois, and includes its successors/assigns,
subsidiaries, affiliates, divisions, depaztments, officers, directors, principals,
representatives, lobbyists, partners, employees, agents, or independent contractors
of it during the Relevant Period;

3.

Document. The term "document" is defined to be synonymous in meaning and


equal in scope to the usage of this term in Federal Rule of Civil Procedure 34(a),
including, without limitation, electronic or computerized data compilations. A
draft or non-identical copy is a separate document within the meaning of this
term;

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 10 of 32

4.

Securities Compliance. The term "Securities Compliance" means Securities


Compliance Group, Ltd., a law firm based in Wheaton, Illinois, and includes its
successors/assigns, subsidiaries, affiliates, divisions, departments, officers,
directors, principals, representatives, lobbyists, partners, employees, agents, or
independent contractors of it;

5.

Tracy. The term "Tracy" refers to Adam S. Tracy, the General Counsel and
Managing Partner of Securities Compliance during the Relevant Period;

6.

Sonant. The term "Sonant" refers to Sonant Communications Corp., a Wyoming


corporation, and includes its successors/assigns, subsidiaries, affiliates, divisions,
departments, officers, directors, principals, representatives, lobbyists, partners,
employees, agents, or independent contractors of it during the Relevant Period;

7.

Steinhart. The term "Steinhart" refers to Chad Steinhart, a director and the
Chairman ofthe Board of Sonant;

8.

King. The term "King" refers to Colm King, listed as the Chief Financial Officer
("CFO")on Sonant's Form S-1 filed on August 4,2015;

9.

Lancer. The term "Lancer" refers to Daniel Lancer, listed as the Chief Executive
Officer("CEO")on SonanYs Form S-1 filed on August 4,2015;

10.

Goshen. The term "Goshen" refers to Goshen, Inc., a Nevada corporation, and
includes its successors/assigns, subsidiaries, affiliates, divisions, departments,
officers, directors, principals, representatives, lobbyists, partners, employees,
agents, or independent contractors ofit during the Relevant Period;

11.

Lung. The term "Lung" refers to Huang Pin Lung,the CEO ofGoshen;

12.

Kit. The term "Kit" refers to Cheung Yat Kit, a director of Goshen;

13.

Eklips. The term "Eklips" refers to Eklips Corp., a Nevada corporation, and
includes its successors/assigns, subsidiaries, affiliates, divisions, departments,
officers, directors, principals, representatives, lobbyists, partners, employees,
agents, or independent contractors of it during the Relevant Period;

14.

Sisko. The term "Sisko" refers to Dmitrij Sisko, the CEO of Eklips;

15.

Strong Solutions. The term "Strong Solutions" refers to Strong Solutions, Inc., a
Nevada corporation, and includes its successors/assigns, subsidiaries, affiliates,
divisions, departments, officers, directors, principals, representatives, lobbyists,
partners, employees, agents, or independent contractors of it during the Relevant
Period;

16.

Guzii. The term "Guzii" refers to Andrii Guzii, the CEO of Strong Solutions;

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 11 of 32

17.

Command Control. The term "Command Control" refers to Command Control


Center Corp., a Nevada corporation, and includes its successors/assigns,
subsidiaries, affiliates, divisions, departments, officers, directors, principals,
representatives, lobbyists, partners, employees, agents, or independent contractors
of it during the Relevant Period;

18.

Trabelsi. The term "Trabelsi" refers to Nissim S. Trabelsi, the CEO of


Command Control;

19.

Toshoan. The term "Toshoan" refers to Toshoan Holdings, Inc., A Delaware


corporation, and includes its successors/assigns, subsidiaries, affiliates, divisions,
departments, officers, directors, principals, representatives, lobbyists, partners,
employees, agents, or independent contractors ofit during the Relevant Period;

20.

Abe. The term "Abe" refers to Hajiime Abe,the CEO ofToshoan;

21.

Fukumoto. The term "Fukumoto" refers to Shunji Fukumoto, the secretary and
CFO of Toshoan;

22.

NL One. The term "NL One" refers to NL One Corporation, a Nevada


corporation, and includes its successors/assigns, subsidiaries, affiliates, divisions,
departments, officers, directors, principals, representatives, lobbyists, partners,
employees,agents, or independent contractors ofit during the Relevant Period;

23.

DeNunzio. The term DeNunzio refers to Jeffrey DeNunzio,the CEO ofNL One;

24.

Moody. The term "Moody"refers to Paul Moody,the secretary ofNL One;

25.

The term "Carbon Credit" refers to Carbon Credit


Carbon Credit.
Internatnional, Inc., a Nevada corporation, and includes its successors/assigns,
subsidiaries, affiliates, divisions, departments, officers, directors, principals,
representatives, lobbyists, partners, employees, agents, or independent contractors
ofit during the Relevant Period;

26.

Chavez. The term "Chavez" refers to Amber M. Chavez, the CEO of Carbon
Credit;

27.

TOA Optical Tech, Inc. The term "TOA Optical" refers to TOA Optical Tech,
Inc., a Delaware corporation, and includes its successors/assigns, subsidiaries,
affiliates, divisions, departments, officers, directors, principals, representatives,
lobbyists, partners, employees, agents, or independent contractors of it dwring the
Relevant Period;

28.

Shioya. The term "Shioya" refers to Tatsumi Shioya, the CEO ofTOA Optical;

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 12 of 32

29.

UViC. The term "UVIC" refers to WIC, Inc., a Nevada corporation, and
includes its successors/assigns, subsidiaries, affiliates, divisions, departments,
officers, directors, principals, representatives, lobbyists, partners, employees,
agents, or independent contractors of it during the Relevant Period;

30.

Umurzakov. The term "Umurzakov" refers to Iuldashkhan Umurzakov,the CEO


of UVIC;

31.

Supreme Legal. The term "Supreme Legal" refers to Supreme Legal, Inc., a
Nevada corporation, and includes its successors/assigns, subsidiaries, affiliates,
divisions, departments, officers, directors, principals, representatives, lobbyists,
partners, employees, agents, or independent contractors of it during the Relevant
Period;

32.

Harper. The term "Harper" refers to John W. Harper, the CEO of Supreme
Legal;

33.

Trimax. The term "Trimax" refers to Trimax Consulting, Inc., a Nevada


corporation, and includes its successors/assigns, subsidiaries, affiliates, divisions,
departments, officers, directors, principals, representatives, lobbyists, partners,
employees, agents, or independent contractors of it during the Relevant Period;

34.

Toelaram-Waterford. The term "Toelaram-Waterford" refers to Oeshadebie


Toelaram-Waterford, the CEO ofTrimax;

35.

MP Ventures. The term "MP Ventures" refers to MP Ventures, Inc., a Nevada


corporation, and includes its successors/assigns, subsidiaries, ~liates, divisions,
departments, officers, directors, principals, representatives, lobbyists, partners,
employees, agents, or independent contractors ofit during the Relevant Period;

36.

Poretsky. The term "Poretsky" refers to Mark Poretsky, the CEO of MP


Ventures;

37.

Realco. The term "Realco" refers to Realco International, Inc., a Nevada


corporation, and includes its successors/assigns, subsidiaries, affiliates, divisions,
departments, officers, directors, principals, representatives, lobbyists, partners,
employees, agents, or independent contractors ofit during the Relevant Period;

38.

Friedman. The term "Friedman" refers to Steven Allen Friedman, the CEO of
Realco;

39.

XYI. The term "XYI" refers to XYI Group, Inc., a Nevada corporation, and
includes its successors/assigns, subsidiaries, affiliates, divisions, departments,
officers, directors, principals, representatives, lobbyists, partners, employees,
agents, or independent contractors of it during the Relevant Period;

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 13 of 32

40.

Wah. The term "Wah"refers to Wong Heng Wah,the CEO of XYI;

41.

Kuang. The term "Kuang" refers to Lee Chong Kuang,a director of XYI;

42.

Scrudato. The term "Scrudato" refers to John Scrudato, a Califon, New Jersey
CPA,the auditor for Strong Solutions, Cazbon, Supreme Legal, Trimax, MP
Ventures and Realco, and includes its successors/assigns, subsidiaries, affiliates,
divisions, departments, officers, directors, principals, representatives, lobbyists,
partners, employees, agents, or independent contractors of it during the Relevant
Period;

43.

AJSH. The term "AJSH" refers to AJSH & Co., of New Dehli, India, the auditor
for Sonant and WIC,and includes its successors/assigns, subsidiaries, affiliates,
divisions, departments, officers, directors, principals, representatives, lobbyists,
partners, employees, agents, or independent contractors of it during the Relevant
Period;

44.

Weld Asia. The term "Weld Asia" refers to Weld Asia Associates of Kuala
Lumper., Malaysia, the auditor for Gushen and XYI, and includes its
successors/assigns, subsidiaries, ai~iliates, divisions, departments, officers,
directors, principals, representatives, lobbyists, partners, employees, agents, or
independent contractors ofitduring the Relevant Period;

45.

MaloneBailey. T'he term "MaloneBailey" refers to MaloneBailey LLP. Of


Houston, Texas, the auditor for NL One, and includes its successors/assigns,
subsidiaries, affiliates, divisions, departments, officers, directors, principals,
representatives, lobbyists, parhiers, employees, agents, or independent contractors
of it during the Relevant Period;

46.

Gillespie. The term "Gillespie" refers to Gillespie &Associates, PLLC of


Seattle, Washington, the auditor for Eklips, and includes its successors/assigns,
subsidiaries, affiliates, divisions, departments, officers, directors, principals,
representatives, lobbyists, partners, employees, agents, or independent contractors
ofit during the Relevant Period;

47.

Weinstein. The term "Weinstein" refers to Dov Weinstein & Co., of Jerusalem,
Israel, the auditor for Command Control, and includes its successors/assigns,
subsidiaries, affiliates, divisions, departments, officers, directors, principals,
representatives, lobbyists, partners, employees, agents, or independent contractors
of it during the Relevant Period;

48.

DKM. The term "DKM" refers to DKM Certified Public Accountants, of


Clearwater, Florida, the auditor for Toshoan, and includes its successors/assigns,
subsidiaries, ~liates, divisions, departments, officers, directors, principals,
representatives, lobbyists, partners, employees, agents, or independent contractors
of it during the Relevant Period;

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 14 of 32

49.

Messineo. The term "Messineo" refers to Messineo & Co., CPAs LLC, of
Clearwater, Florida, the auditor for TOA Optical, and includes its
successors/assigns, subsidiaries, affiliates, divisions, departments, officers,
directors, principals, representatives, lobbyists, partners, employees, agents, or
independent contractors ofit during the Relevant Period;

50.

Sonant Systems. The term "Sonant Systems" refers to Sonant Systems, Inc., a
Nevada corporation, and includes its successors/assigns, subsidiaries, ~liates,
divisions, departments, officers, directors, principals, representatives, lobbyists,
partners, employees, agents, or independent contractors of it during the Relevant
Period; and

51.

Relevant Period. The term "Relevant Period" means Mazch 1, 2014 through
October 31,2015.
II. Documents and Information to be Produced

Pursuant to the attached subpoena, you must produce all the following documents
and information:
Please provide all documents between Securities Compliance and the following
entities relating to all Form S-1 and S-1/A registration statements filed with the
Commission during the Relevant Period:
(a)Sonant;
(b) Gushen;
(c)Eklips;
(d)Strong Solutions;
(e)Command Control;
(fl Toshoan;
(g)NL One;
(h) Carbon Credit;
(i)TOA Optical;
(i) WIC;
(k)Supreme Legal;
(1) Trimax;
(m)MP Ventures;
(n) Realco;
(o)XYI;
(p)Scrudato;
(c~ AJSH;
(r) Weld Asia;
(s) MaloneBailey;
(t) Gillspie;
(u) Weinstein;

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 15 of 32

(v)DKM;
(w)Messineo; and
(x)Sonant Systems.
2.

Please provide all communications, to include, but not limited to, correspondence,
e-mails, faxes, phone records, and instant messages between Securities
Compliance and the following companies during the Relevant Period:
(a) Sonant;
(b)Gushen;
(c)Eklips;
{d)Strong Solutions;
(e)Command Control;
(fl Toshoan;
(g)NL One;
(h)Carbon Credit;
(i)TOA Optical;

G)wlc;
(k)Supreme Legal;
(1) Trimax;
(m)MP Ventures;
(n)Realco;
(o)XYI;
(p)Scrudato;
(c~ AJSH;
(r) Weld Asia;
(s) MaloneBailey;
(t) Gillspie;
(u) Weinstein;
(v)DKM
(w)Messineo; and
(x)Sonant Systems.
3.

Please provide all communications to include, but not limited to, correspondence,
e-mails, faxes, phone records, and instant messages between Tracy and the
following companies during the Relevant Period:
(a)Sonant;
(b)Gushen;
(c)Eklips;
(d)Strong Solutions;
(e)Command Control;
(fl Toshoan;
(g)NL One;
(h)Carbon Credit;
(i)TOA Optical;

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 16 of 32

(j) UVIC;
(k)Supreme Legal;
(1) Trimax;
(m)MP Ventures;
(n)Realco;
(o)XYI;
(p)Scrudato;
(c~ AJSH;
(r) Weld Asia;
(s) MaloneBailey;
(t) Gillespie;
(u) Weinstein;

(v)DKM;
(w)Messineo; and
(x)Sonant Systems.
4.

Please provide all communications,to include, but not limited to, correspondence,
e-mails, faxes, phone records, and instant messages between Securities
Compliance and the following individuals during the Relevant Period:
(a)Steinhart;
~)~ng~
(c)Lancer;
(d)Lung;
(e)Kit;
(fl sisko;
(g)Guzii;
(h)Trablesi;
(i) Abe;
(j) Fukumoto;
(k)DeNunzio;
(1) Moody;
(m)Chavez;
(n)Shioya;
(o) Umurrakov;
(p)Harper;
(c~ Toelaram-Waterford;
(r)Poretsky;
(s)Friedman;
(t) Wah;and
(u)Kuang.

5.

Please provide all communications, to include, but not limited to, correspondence,
e-mails, faxes, phone records, and instant messages between Tracy and the
following individuals during the Relevant Period:

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 17 of 32

(t) Gillspie;
(u) Weinstein;
(v)DKM;
(w)Messineo; and
(x) Sonant Systems.
7.

Documents sufficient to identify all phone and fax numbers used by the following
individuals during the Relevant Period that are in the possession, custody or
control of Securities Compliance:
(a) Steinhart;
(b)King;
(c)Lancer;
(d)Lung;
(e)Kit;
(fl Sisko;
(g)Guzii;
(h)Trablesi;
(i) Abe;
(j)Fukumoto;
(k)DeNunzio;
(1) Moody;
(m)Chavez;
(n)Shioya;
(o)Umurzakov;
(p)Harper;
(c~ Toelaram-Water;Ford;
(r)Poretsky;
(s)Friedman;
(t) Wah;and
(u)Kuang.

8.

Documents sufficient to identify all phone providers used by you, to include the
provider's full name and business address, during the Relevant Period;

9.

Documents sufficient to identify all phone numbers and fax numbers used by you
during the Relevant Period;

10.

Documents sufficient to identify all e-mail providers used by you, to include the
provider's full name and business address, during the Relevant Period;

11.

Documents sufficient to identify all e-mail addresses used by you during the
Relevant Period; and

12.

All phone and fax bills of Securities Compliance during the Relevant Period.

11

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 18 of 32

U.~. Securities and Ehchnnge Commission


Deis Uslivery Standards
~~;q_
Y(:~lp~r~

~,

U.S. Seearites and [;xcl~ange Commission

~~~'

Data Delivery S#~nclarcls

~
n~
`~'.i1,Xky1~'

This document describes the technical requirements for paper and electronic document productions to the U.S.
Securities a~~ci Exchan~;c Camia~ission (SI: C). **Any nrapaset! ~/e fnrm~rts t~tlter /Iran these cleseribed
hel'ow nsust he ~Iiscr~sse~J wrtlz the le,~r[rl trrtcl f~rhnic~~l staff of`f/re S'GC Division n1'Fnfnrcement nri~~r tra
sr~bniisrior~."*
Cicneral (nstructians

Deliveryi'ormats...........................................................................................................................................................................2
I.

Gorrcnrrluncc~ ]tnt~eti Pnx~i~tiaru..........................................................................................................................................?


l. lrna~;es ..............................................................................................................................................................................2
2. Concordance /nrcrgeQ~ or Opricon Cross-Keference rite..................................................................................................?

3. Co~icardn~rce~ Data T'ile..................................................................................................................................................3


4. Text ..................................................................................................................................................................................3
5. Linked Native Files ..........................................................................................................................................................3

IJ. Naive File PraduCtic~ns without loadfiles..............................................................................................................................3


Ill. Adobe PDF File Arotiuctinns...........................................................................................................................................3
!V. Audio. Files ..........................................................................................................................................................................4

V. Video l~iles............................................................................................................................................................................4
V[. Electronic "trade and Bank Records ....................................................................................................................................~1
V[I. Electronic Phone Records...................................................................................................................................................~

General Instructions
F..lectronic files musi be pec~duced in their native E'ormat,i.e, the format in which they ire ordinarily used and maintlined during the
normal course cif business. For c;xample, nn MS Excel Flc must be produced as 7n ~fS Excel file rather than an image of a
spreadsheet (Nate: An tfdahe PAFftle is ~(cn~rstdered a dativefile unlessifie dnrrrmen! was initiu!!j~ creatert as u PDF.)
In th4 event produacd files require the use of proprietary soRw~re not commonly i'aund in the workplace, the SEC will explore
other forn~at options with the producing party.
The proposed use of file de-duplicatiai methadplo~ies ar c~~m~~z~~rr=assislEd review or rechnv/v~}'^GSS75JC(IY@VlG'W ~TAR~ (I111'111~

the processing of documcntfi must be discussed with aa~d approved by the legal and tachnical stMCf of the Division of
knfarc~ment {E'~F). Ifyaur production will 6e de-duplics~ted it is vit11 thflt you 1)preserve any unique tnetad:ta associated with
the dupliclte Files, fir example,custodian ngme, wind,2)make that unique met~data part ofyour production to the SEC.

1
ltcv l~l?OIA

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 19 of 32

U.S. Securities and Exchange Commission


Data Delivery Standards

General requirements for ALL document productions are:


1. A cover letter should be included with each production and include the following:
A list ofeach piece of media included in the production with its unique production volume number
a.
A list ofcustodians, identifying the Bates range for each custodian.
b.
The time zone in which the emails were standardized during conversion.
c.
2. Data can be produced on CD, DVD, thumb drive, etc., using the media requiring the least number of deliverables and
labeled with the following:
Case number
a.
Production date
b.
Producing parry
c.
Bates range
d.
3. All submissions must be organized by custodian unless otherwise instructed.
4. All document family groups, i.e. email attachments, embedded files, etc., should be produced together and children files
should follow parent files sequentially in the Bates numbering.
5. All load-ready collections should include only one data load file and one image pointer file.
b. All load-ready text must be produced as separate text files.
7. All load-ready collections should account for custodians in the custodian field.
8. Audio files should be separated from data files if both are included in the production.
9. Only alphanumeric characters and the underscore character are permitted in file names and tolder Dames. Special characters
are not permitted.
l0. All data productions must be produced using industry standard self-extracting encryption software.
11. Passwords for documents, files, compressed archives and encrypted media must be provided separately either via email or in a
separate cover letter from the media.
12. All productions should be produced free ofcomputer viruses.
13. Additional technical descriptions can be found in the addendum to this document.
*Please note that productions that come via United States Postal Service are subject to Mail Irradiation, as a result electronic
productions may be damaged.*

Delivery Formats
I.

Concordances Imaged Prnductions


The SEC prefers that all documents and data be produced in a structured format prepared for Concordance. All
scanned paper electronic file collections should be converted to TIFF files, Bates numbered, and
include fully searchable text files.
1. Images
a. Black and white images must be 300 DPI Group IV single-page TIFF files.
b. Color images must be produced in JPEG format.
b. File names cannot contain embedded spaces or special characters(including the comma).
c. Folder names cannot contain embedded spaces or special characters(including the comma).
d. All TIFF image files must have a unique file name,i.e. Bates number.
e. Images must be endorsed with sequential Bates numbers in the lower right corner ofeach image.
f. The number ofTIFF files per folder should not exceed 500 files.
g. Excel spreadsheets should have a placeholder image named by the Bates number ofthe file.
h. AUTOCAD/photograph files should be produced as a single page JPEG file.

Rev 10/2014

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 20 of 32

U.S. Securities and Exchange Commission


Data Delivery Standards
2. Concordance Imaged OR Opticoa Cross-Reference File
The image cross-reference file to link the images to the database should be a comma- delimited file consisting of
seven fields per line with a line in the cross-reference file for every image in the database with the following
format:
ImagelD, YolumeLabe%ImageFilePath,DocumenlBreaA~FolderBreak,BoxBreak.Pag
3. Conco~dance~ Data File
The data file(.DAT)contains all ofthe fielded information that will be loaded into the Concordances database.
a. The first line ofthe.DAT file must be a header row identifying the field names.
b. The.DAT file must use the following Concordances default delimiters:
Comma ~g ASCII character(020)
Quote p ASCII character(254)
c. Date fields should be provided in the format: mm/dd/yyyy
d. Date and time fields must be two separate fields.
e. Ifthe production includes imaged emails and attachments, the attachment fields must be included to preserve the
parendchild relationship between an email and its attachments.
f. An OCRPATH field must be included to provide the file path and name of the extracted text file on the produced
storage media. The text file must be named after the FIRSTBATES. Do not include the text in the .DAT file.
g. For production with native files, a NATIVEL[NK field must be included to provide the file path and name of the
native file on the produced storage media.
h. BEGAT"C and ENDATT fields must be two separate fields.
i. A complete list of metadata fields is available in Addendum A to this document.
4. Text
Text must be produced as separate text files, not as fields within the .DAT file. The full path to the text file(OCRPATI~
should be included in the .DAT file. We require document level ANSI text files, named per the FIRSTBATFS/Image Key.
(Please note in the cover letter ifany non-ANSI text files are included in the production.) Extracted text must be in a separate
folder, one text file per document. The number offiles per folder should not exceed 500 files. There should be no special
characters(including commas in the folder names). For redacted documents,provide the full text for the redacted version.
5. Linked Native Files
Copies oforiginal email and native file documents/attachments must be included for aU electronic productions.
a. Native file documents must be named per the FIRSTBATES number.
b. The full path ofthe native file must be provided in the.DAT file for the LINK field.
c. The number of native files per folder should not exceed 500 files.
II.

Native File Production without Loadfiles


With prior approval, native files may be produced without loadfiles. The files must be produced as they are maintained in
the normal course of business and organized by custodian-named file folders. When approved, Outlook (.PST) and Lotus
Notes(.NSF) email files may be produced in native file format. A separate folder should be provided for each custodian.

III.

Adobe PDF File Production


With prior approval, Adobe PDF files may be produced in native file format.
1. PDF files should be produced in separate folders named by the custodian. The folders should not contain any
special characters(including commas).
2. All PDFs must be unitized at the document level, i.e., each PDF should represent a discrete document.
3. All PDF files must contain embedded text that includes all discernible words within the document,not selected text
or image only. This requires all layers ofthe PDF to be flattened first.
4. ifPDF files are Bates endorsed,the PDF files must be named by the Bates range.

Rev 10/2014

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 21 of 32

U.S. Securities and Exchange Commission


Data Delivery Standards
IV. Audio Files
Audio files from telephone recording systems must be produced in a format that is playable using Microsoft Windows
Media PlayerT"'. Additionally, the call information (metadata) related to each audio recording MUST be provided. The
metadata file must be produced in a delimited text format. Field names must be included in the first row ofthe text file.
The metadata must include, at a minimum,the following fields:
Caller's name or accoundidentification number
1) Caller Name:
2) Originating Number: Caller's phone number
3) Called Party Name: Called party's name
4) Terminating Number: Called party's phone number
Date ofcall
5) Date:
Time ofcall
6) Time:
Filename ofaudio file
7) Filename:
V.

Video Files
Video files must be produced in a format that is playable using Microsoft Windows Media PlayerTM,

VI.

Electronic Trade aad Baok Records


When producing electronic trade and bank records, provide the files in one ofthe following formau:
MS Excel spreadsheet with header information detailing the field structure. If any special codes exist in the dataset, a
separate document must be provided that details all such codes. If details ofthe field structure do not fit in the header,
a separate document must be provided that includes such details.
Delimited text file with header information detailing the field structure. The preferred delimiter is a vertical bar "~". If
any special codes exist in the dataset, a separate document must be provided that details all such codes.If details ofthe
field structure do not fit in the header,a separate document must be provided that includes such details.

VII. Electronic Phone Records


When producing electronic phone records, provide the files in the following format:
1. MS Exccl spreadsheet with header information detailing the field structure. If any special codes exist in the dataset, a
sepazate document must be provided that details atl such codes. If details ofthe field structure do not fit in the header,
a separate document must be provided that includes such details. Data must be formatted in its native format (i.e.
dates in a date format, numbers in an appropriate numerical format,and numbers with leading zeroes as text).
a The metadata that must be included is outline in Addendum B of this document. Each field of data must be
loaded into a separate column. For example, Date and Start_Time must be produced in separate columns and
not combined into a single column coetaining both pieces ofinformation. Any fields ofdata that are provided
in addition to those listed in Addendum B must also be loaded into separate columns.

Rev 102014

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 22 of 32

U.S. Securities and Exchange Commission


Data Delivery Standards

ADDENDUM A

The metadata of electronic document collections should be extracted and provided in a .DAT file using the field definition and
formatting described below:
Sam le Data
EDC0000001
EDC0000001

ATTACHRANGE

EDC0000001- EDC0000015

BEGAT"fACH
ENDATTACH
PARENT_BATES

EDC0000001
EDC000001S
EDC0000001

CHILD BATES

EDC0000002;EDC0000014

CUSTODIAN

Smith,John

FROM

John Smith

TO

Coffman,Janice; LeeW
[mailto:LeeWQMSN.com]

CC

Frank Thompson [mailto:


frank Thompson@cdt.comj

BCC

John Cain

SUBJECT

Board Meeting Minutes

DATE SENT

10/12/2010

Descri lion
First Bates number of native file documendemail
Last Bates number of native file document/email
"*The LASTBATES field should be populated
for sin le a e documents/emails.
Bates number of the first page of the parent
document to the Bates number of the last page of the
last attachment"child" document
First Bates number ofattachment ran e
Last Bates number ofattachment ran e
First Bates number ofparent document/Email
**This PARENT BATES field should be populated
in each record representing an attachment "child"
document
First Bates number of"child" attachment(s); can be
more than one Bates number listed depending on the
number ofattachments
'*The CHILD BATES field should be populated in
each record re resentin a azenY'document
Bmail: mailbox where the email resided
Native: Individual from whom the dceument
mated
Email: Sender
Native: Authors)ofdocument
**semi-colon should be used to separate multiple
entries
Recipients)
**semi-colon should be used to separate multiple
entries
Carbon copy recipients)
**semi-colon should be used to separate multiple
entries
Blind carbon copy recipients)
+*semi-colon should be used to separate multiple
entries
Email: Subject line ofthe email
Native: Title ofdocument ifavailable
Email: Date the email was sent
Native: em
Email: Time the email was send Time zone in whic
the emails were standardized during conversion.
Native:(empty)
"'This data must be a separate field and cannot be
combined with the DATE_SENT field;
on

"

Field Name
FIRSTBATES
LASTBATES

TIME SENT/I'IME 07:05 PM GMT


ZONE

TIME ZONE

GMT

The time zone in which the emails were standardize


during conversion.
Email: Time zone
Native:(empty)

Rev 10/2014

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 23 of 32

U.S. Securities and Exchange Commission


Data Delivery Standards
WNK

ll:~UU l~ ~ut;000UUU l.msg

HyPCI'gnK t0 tllC Eillell Of ~8I1Ve ItIC gOCUmCrlt

**The linked file must be named per the


FIRSTBATES number
The content type ofan Email or native file document
as identified/extracted from the header
The file type extension representing the Email or
native file document; will vary depending on the
email format
Email: (empty)
Native: Author ofthe document
Email: (empty)
Native: Date the document was created

MIME TYPE

MSG

FILE EXTEN

MSG

AUTHOR

John Smith

DATE_CREATED

10/10/2010

TIME_CREATED

Email: (empty)
Native: Time the document was created
'''This data must be a separate field and cannot be
combined with the DATE CREATED field
Email: (empty)
10/12/2010
Native: Date the document was last modified
Email: (empty)
07:00 PM
Native: Time the document was last modified
**This data must be a separate field and cannot be
combined with the DATE MOD field
Email: (empty)
10/12/2010
Native: Date the document was last accessed
Email: (empty)
07:00 PM
Native: Time the document was last accessed
''*This data must be a separate field and cannot be
combined with the DATE ACCESSD field
Email: (empty)
10/12/2010
Native: Date the document was last tinted
Size of native file documendemail in KB
5,952
Number of a es in native file documendemail
1
Email: (empty)
J:1Shared\Smith)\October
Native: Path where native file document was stored
Agenda.doc
includin on final file name.
Emait: original location of email including original
Persona! Folders~Deleted
name.
file
Items~Board Meeting
Native: em
Minutes.ms
<000805c2c71b$75977050$cb Email: Unique Message ID
Na6ve: em
SN>
8306d1
d 131dd02c5e6eec4693d9a069 MDS Hash value ofthe document
8aft95c
2fcab58712467eab4004583eb
8fb7f89
Path to extracted text ofthe native file
TEXT/001/EDC000OOOI.bct

DATE_MOD
TIME_MOD

DATE_ACCESSD
T1ME_ACCESSD

PRINTED_DATE
FILE SIZE
PGCOUNT
PATH

INTFILEPATH

INTMSGID
MDSHASH

OCRPATH

Sample Imp Loadfile: _

10:25 AM

_____

iMG0000001E:~001\IMG0000001.71F,Y,,,
IMG0000002E:~001\IMG0000002.TIF,,,,
IMG0000003E:\001\I MGOOU0003.TIF,,,,
IMG0000004E:\001\IMG0000003.TIF,Y,,,
IMG0000005E:\001\IMG0000003.TIF,Y,,,
IMGOOOOU06E:\001\IMG0000003.'flF,,,,

6
Rev 10/2014

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 24 of 32

U.S. Securities and Exchange Commission


Data Delivery Standards
ADDENDUM B
For Electronic Phone Records, include the following fields in separate columns:
For Calls:
l) Account Number
2) Connection Date Date the call was received or made
3) Connection Time Time call was received or made
4) Seizure Time Time it took for the call to be placed in seconds
5) Originating Number Phone that placed the call
6) Terminating Number Phone that received the call
7) Elapsed Time The length oftime the call lasted, preferably in seconds
8) End Time The time the call ended
9) Number Dialed Actual number dialed
0) IMEI Originating Unique id to phone used to make call
11) IMEI Terminating Unique id to phone used to receive call
12) IMSI Originating Unique id to phone used to make call
13) IMSI Terminating- Unique id to phone used to receive call
14) Call Codes Identify call direction or other routing information
15) Time Zone Time Zone in which the call was received or placed, ifapplicable

For Text messages:


1) Account Number
2) Connection Date Date the text was received or made
3) Connection Time Time text was received or made
4) Originating Number Who placed the text
5) Terminating Number Who received the text
6) lMEI Originating Unique id to phone used to make text
7) IMEI Terminating Unique id to phone used to receive text
8) IMSI Originating - Unique id to phone used to make text
9) IMSI Terminating- Unique id to phone used to receive text
10) Text Code Identify text direction, or other text routing information
11) Text Type Code Type oftext message(sent SMS,MMS,or other)
12) Time Zone Time Zone in which the call was received or placed, if applicable

For Mobile Data Usage:


1)
2)
3)
4)
5)
6)
7)
8)

Account Number
Connection Date Date the data was received or made
Connection Time Time data was received or made
Originating number Number that used data
IMEI Originating Unique id of phone that used data
IMSI Originating - Unique id ofphone that used data
Data or Data codes IdentiFy data direction, or other data routing information
Time Zone Time Zone in which the call was received or placed, if applicable

Rev 10/2014

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 25 of 32

SECURITIES AND EXCHANGE COMNIISSION


Washington,D.C.20549
Supplemental Information for Persons Requested to Supply
Information Voluntarily or Directed to Supply Information
Pursuant to a Commission Subpoena
A. False Statements and Documents
Section 1001 of Title 18 of the United States Code provides as follows:
[V1l]hoever, in any matter within the jurisdiction of the executive, legislative, orjudicial branch of the
Government of the United States, knowingly and willfully
(1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact;
(2) makes any materially false, fictitious, or fraudulent statement or representation; or
(3) makes or uses any false writing or document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry;
shall be fined under this title, imprisoned not more than 5 years ... or both.
B. Testimony
If your testimony is taken, you should be aware of the following:
1. Retort!. Your testimony will be transcribed by a reporter. If you desire to go off the record, please indicate this to
the Commission employee taking your testimony, who will determine whether to grant your request. The reporter
will not go off the record at your, or your counsel's, direction.
2. Counsel. You have the right to be accompanied, represented and advised by counsel of your choice. Your
counsel may advise you before, during and after your testimony; question you briefly at the conclusion of your
testimony to darify any of the answers you give during testimony; and make summary notes during your
testimony solely for your use. If you are aaompanied by counsel, you may consult privately.
If you are not accompanied by counsel, please advise the Commission employee taking your testimony if, during the
testimony, you desire to be accompanied, represented and advised by counsel. Your testimony will be adjourned
once to afford you the opportunity to arrange to be so accompanied, represented or advised.
You maybe represented by counsel who also represents other persons involved in the Commission's investigation.
This multiple representation, however, presents a potential conflict of interest if one clients interests are or may be
adverse to anothers. If you are represented by counsel who also represents other persons involved in the
investigation, the Commission will assume that you and counsel have discussed and resolved all issues concerning
possible conflicts of interest. The choice of counsel, and the responsibility for that choice, is yours.
3.

Transcript Availability. Rule 6 of the Commission's Rules Relating to Investigations, 17 CFR 203.6, states:
A person who has submitted documentary evidence or testimony in a formal investigative proceeding
shall be enQUed, upon written request, to procure a copy of his documentary evidence or a transcript of
his testimony on payment of the appropriate fees: Provided, however, That in a nonpublic formal
investigative proceeding the Commission may for good cause deny such request. fn any event, any
witness, upon proper identification, shall have the right to inspect the official transcript of the witness'
own testimony.

If you wish to purchase a copy of the transcript of your testimony, the reporter will provide you with a copy of the
appropriate form. Persons requested to supply information voluntarily will be allowed the rights provided by this rule.

Whoever

4. Perjury. Section 1621 of Title 18 of the United States Code provides as follows:
(1)having taken an oath before a competent tribunal, officer, or person, in any pse in which a law of
the United States authorizes an oath to be administered, that he will testify, declare, depose, or certify
truly, or that any written testimony, dedaration, deposition, or certificate by him subscribed, is true,
willfully and contrary to such oath states or subscxibes any material matter which he does not believe to
be true; or
SEC 1662(09-14)

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 26 of 32

(2)in any declaration, certificate, veriflca6on, or statement under penalty of perjury as permitted under
section 1746 of title 28, United States Code, willfully subscribes as true any material matter which he
does not believe to be true;
is guilty of perjury and shall, except as othervvise expressly provided by law, be fined underthis title or
imprisoned not more than five years, or both.
5. Fifth Amendment and Voluntary Testimony.ln formation you give may be used against you in any federal, state,
local or foreign administrative, civil or criminal proceeding brought by the Commission or any other agency.
You may refuse, in accorcJance with the rights guaranteed to you by the Fifth Amendment to the Constitution of the
United States, to give any information that may tend to incriminate you.
If your testimony is not pursuant to subpoena, your appearance to testify is voluntary, you need not answer any
question, and you may leave whenever you wish. Your cooperation is, however, appreaated.
6. Formal Orcfer Availability. If the Commission has issued a formal order of investigation, ft will be shown to you
during your testimony, at your request. If you desire a copy of the formal order, please make your request in writing.
C. Submissions and Settlements
Rule 5(c)of the Commission's Rules on Informal and Other Procedures, 17 CFR 202.5(c), states:
Persons who become involved in .. ,investigations may,on their own initiative, submit a written
statement to the Commission setting forth their interests and position in regard to the subject matter
of the investigation. Upon request, the staff, in its discretion, may advise such persons of the
general nature of the investigation, including the indicated violations as they pertain to them, and
the amount of time that may be available for preparing and submitting a statement prior to the
presentation of a staff recommendation to the Commission for the commencement of an
administrative or injunction proceeding. Submissions by interested persons should be forwarded to
the appropriate Division Director or Regional Director with a copy to the staff members conducting
the investigation and should be clearly referenced to the specific investigation to which they relate.
In the event a recommendation for the commencement of an enforcement proceeding is presented
by the staff, any submissions by interested persons will be forwarded to the Commission in
conjunction with the staff memorandum.
The staff of the Commission routinely seeks to introduce submissions made pursuant to Rule 5(c) as evidence in
Commission enforcement proceedings, when the staff deems appropriate.
Rule 5(~ of the Commission's Rules on Informal and Other Procedures, 17 CFR 202.50, states:
In the course of the Commission's investigations, avil lawsuits, and administrative proceedings, the
staff, with appropriate authorization, may discuss with persons involved the disposition of such
matters by consent, by settlement, or in some other manner. It is the policy of the Commission,
however, that the disposition of any such matter may not, expressly or impfiedly, extend to any
criminal charges that have been, or may be, brought against any such person or any
recommendation with respect thereto. Accordingly, any person involved in an enforcement matter
before the Commission who consents, or agrees to consent, to any judgment or order does so
solely for the purpose of resolving the claims against him in that investigative, civil, or
administrative matter and not for the purpose of resolving any criminal charges that have been, or
might be, brought against him. This policy reflects the fact that neither the Commission nor its staff
has the authority or responsibility for instituting, conducting, settling, or otherwise disposing of
criminal proceedings. That authority and responsibility are vested in the Attorney General and
representatives of the Department of Justice.
D. Freedom of Information Act
The Freedom of Information Act, 5 U.S.C. 552(the'FOIA"), generaUy provides for disclosure of information to the
public. Rule 83 of the Commission's Rules on Inforrnation and Requests, 17 CFR 200.83, provides a procedure by
which a person can make a written request that information submitted to the Commission not be disclosed under the
FOIA. That rule states that no determination as to the validity o(such a request will be made until a request for
disclosure of the information under the FOIA is received. Acxordingly, no response to a request that information not
be disclosed under the FOIA is necessary or will be given until a request for disclosure under the FOIA is received. 11
you desire an acknowledgment of receipt of your written request that information not be disclosed under the FOIA,
please provide a duplicate request, together with a stamped, self-addressed envelope.

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 27 of 32

E. Authority for Solicitation of Information


Persons Directed to Supply Information Pursuant to Subpoena. The authority for requiring production of information is
set forth in the subpoena. Disclosure of the information to the Commission is mandatory, subject to the valid assertion
of any legal right or privilege you might have.
Persons Requested to Supply information Voluntarily. One or more of the following provisions authorizes the
Commission to solicit the infoRnation requested: Sections 19 and/or 20 of the Securities Act of 1933; Section 21 of
the Securities Exchange Act of 1934; Section 321 of the Trust Indenture Act of 1939; Section 42 of the Investment
Company Act of 194; Section 209 of the Investment Advisers Act of 1940; and 17 CFR 202.5. Disclosure of the
requested information to the Commission is voluntary on your part.
F. Effect of Not Supplying Information
Persons Directed to Supply information Pursuant to Subpoena. If you fail to comply with the subpoena, the
Commission may seek a court order requiring you to do so. If such an order is obtained and you thereafter fail to
supply the information, you may be subject to civil andlor criminal sanctions for contempt of court. In addition, if the
subpoena was issued pursuant to the Securities Exchange Act of 1934, the Investment Company Act of 1940, andlor
the Investment Advisers Act of 1940, and if you, without just cause, fail or refuse to attend and testify, or to answer
any lawful inquiry, or to produce books, papers, correspondence, memoranda, and other records in compliance with
the subpoena, you may be found guilty of a misdemeanor and fined not more than $1,000 or imprisoned for a teRn of
not more than one year, or both.
Persons Requested to Supply Information Voluntarity.T here are no direct sanctions and thus no direct effects for
failing to provide all or any part of the requested information.
G. Princfpal Uses of information
The Commission's principal purpose in soliciting the information is to gather facts in order to determine whether any
person has violated, is violating, or is about to violate any provision of the federal securities laws or rules for which
the Commission has enforcement authority, such as rules of securities exchanges and the rules of the Muniapal
Securities Rulemaking Board. Facts developed may, however, constitute violations of other laws or rules. Information
provided maybe used in Commission and other agency enforcement proceedings. Unless the Commission or its staff
explicitly agrees to the contrary in writing, you should not assume that the Commission or its staff acquiesces in,
accedes to, or concurs or agrees with, any position, condition, request, reservation of right, understanding, or any
other statement that purports, or may be deemed, to be or to reflect a limitation upon the Commission's receipt, use,
disposition, transfer, or retention, in accordance with applicable law, of information provided.
H. Routine Uses of Information
The Commission often makes its files available to other governmental agenaes, particularly United States Attorneys
and state proseators. There is a likelihood that information supplied by you will be made available to such agencies
where appropriate. Whether or not the Commission makes its files available to other governmental agencies is, in
general, a confidential matter between the Commission and such other governmental agencies.
Set forth below is a list of the routine uses which may be made of the information famished.
1. To appropriate agencies, entities, and persons when (a) it is suspected or confirmed that the security or
confidentiality of information in the system of records has been compromised;(b)the SEC has determined that, as a
result of the suspected or confirrned compromise, there is a risk of harm to economic or property interests, identity
theft or fraud, or harm to the security or integrity of this system or other systems or programs (whether maintained by
the SEC or another agency or entity) that rely upon the compromised information; and (c)the disclosure made to
such agenaes, entities, and persons is reasonably necessary to assist in connection with the SEC's efforts to
respond to the suspected or confirrned compromise and prevent, minimize, or remedy such hams.
2. To other federal, state, local, or foreign law enforcement agenaes; securities self-regulatory organizations; and
foreign financial regulatory authorities to assist in or coordinate regulatory or law enforcement activities with the SEC.
3. To national securities exchanges and national securities associations that are registered with the SEC,the
Municipal Securities Rulemaking Board; the Securities Investor Protection Corporation; the Public Company
Accounting Oversight Board; the federal banking authorities, including, but not limited to, the Board of Governors of
the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation; state
securities regulatory agencies or organizations; or regulatory authorities of a foreign government in connection with
their regulatory or enforcement responsibilities.

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 28 of 32

4. By SEC personnel for purposes of investigating possible violations of, or to conduct investigations authorized by,
the federal securities laws.
5. In any proceeding where the federal securities laws are in issue or in which the Commission, or past or present
members of its staff, is a party or otherwise involved in an official capacity.
6. In connection with proceedings by the Commission pursuant to Rule 102(e) of its Rules of Practice, 17 CFR
201.102(e).
7. To a bar association, state accountancy board, or other federal, state, local, or foreign licensing or oversight
authority; or professional association or seN-regulatory authority to the extent that it performs similar functions
(including the Public Company Accounting Oversight Board)for investigations or possible disciplinary action.
8. 7o a federal, state, local, tribal, foreign, or international agency, if necessary to obtain information relevant to the
SEC's deasion concerning the hiring or retention of an employee; the issuance of a security clearance; the letting of
a contract; or the issuance of a license, grant, or other benefit.
9. To a federal, state, Iocal, tribal, foreign, or international agency in response to its request for information
concerning the hiring or retention of an employee; the issuance of a security clearance; the reporting of an
investigation of an employee; the letting of a contract; or the issuance of a license, grant, or other benefit by the
requesting agency, to the extent that the information is relevant and necessary to the requesting agency's decision on
the matter.
10. To produce summary descriptive statistics and analytical studies, as a data source for management information,
in support of the function for which the records are collected and maintained or for related personnel management
functions or manpower studies; may also be used to respond to general requests for statistical information (without
personal identification of individuals) under the Freedom of Information Act.
11. To any trustee, receiver, master, special counsel, or other individual or entity that is appointed by a court of
competent jurisdiction, or as a result of an agreement between the parties in connection with litigation or
administrative proceedings involving allegations of violations of the federal securities laws(as defined in section
3(a)(47)of the Securities Exchange Ad of 1934, 15 U.S.C. 78c(a)(47))or pursuant to the Commission's Rules of
Practice, 17 CFR 201.100 900 or the Commission's Rules of Fair Fund and Disgorgement Plans, 17 CFR
201.1100-1106, or otherwise, where such trustee, receiver, master, special counsel, or other individual or entity is
specifiglly designated to perform particular functions with respect to, or as a result of, the pending action or
proceeding or in connection with the administration and enforcement by the Commission of the federal securities laws
or the Commission's Rules of Practice or the Rules of Fair Fund and Disgorgement Plays.
12. To any persons during the course of any inquiry, examination, or investigation conducted by the SEC's staff, or in
connection with civil litigation, if the staff has reason to believe that the person to whom the record is disclosed may
have further information about the matters related therein, and those matters appeared to be relevant at the time to
the subject matter of the inquiry.
13. To interns, grantees, experts, contractors, and others who have been engaged by the Commission to assist in
the performance of a service related to this system of records and who need access to the records for the purpose of
assisting the Commission in the efficient administration of its programs, including by performing clerical,
stenographic, or data analysis functions, or by reproduction of records by electronic or other means. Recipients of
these records shall be required to comply with the requirements of the Privacy Act of 1974, as amended,5 U.S.C.
552a.
14. In reports published by the Commission pursuant to authority granted in the federal securities laws(as such term
is defined in section 3(a)(47)of the Securities Exchange Ad of 1934, 15 U.S.C. 78c(ax47)), which authority shall
include, but not be limited to, section 21(a)of the Securities Exchange Act of 1934, 15 U.S.C. 78u(a)).
15. To members of advisory committees that are created by the Commission or by Congress to render advice and
recommendations to the Commission or to Congress, to be used solely in connection with their official designated
functions.
16. To any person who is or has agreed to be subject to the Commission's Rules of Conduct, 17 CFR 200.735-1 to
200.735-18, and who assists in the investigation by the Commission of possible violations of the federal securities
laws(as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)), in the
preparation or conduct of enforcement actions brought by the Commission for such violations, or othervvise in
connection with the Commission's enforcement or regulatory functions under the federal securities laws.

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 29 of 32

17. To a Congressional office from the record of an individual in response to an inquiry from the Congressional office
made at the request of that individual.
18. To members of Congress, the press, and the public in response to inquiries relating to particular Registrants and
their activities, and other matters under the Commission's jurisdiction.
19. To prepare and publish information relating to violations of the federal securities laws as provided in 15 U.S.C.
78c(a)(47)), as amended.
20. To respond to subpoenas in any litigation or other proceeding.
21. To a trustee in bankruptcy.

avil

22. To any governmental agency, governmental or private collection agent, consumer reporting agency or
commeroial reporting agency, governmental or private employer of a debtor, or any other person, for collection,
including collection by administrative offset, federal salary offset, tax refund oNset, or administrative wage
or administrative proceedings.
garnishment, of amounts owed as a result of Commission

Small Business Owners: The SEC always welcomes comments on how it can better assist small businesses. If you
would like more information, or have questions or comments about federal securities regulations as they affect small
businesses, please contact the Office of Small Business Policy,in the SEC's Division of Corporation Finance, at 202551-3460. If you would prefer to comment to someone outside of the SEC, you can contact the Small Business
Regulatory Enforcement Ombudsman at http://www.sba.gov/ombudsman or toll free at 888-REG-FAIR. The
Ombudsman's office receives comments from small businesses and annually evaluates federal agency enforcement
activities for their responsiveness to the special needs of smaq business.

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 30 of 32


Page 1 of 1

'UPS CampusShip: Shipment Label

UPS CampusShip: ~ewlPrint Label


1. Ensure there are no other shipping or tracking labels attached to your package. Select the
Print button on the print dialog box that appears. Note: If your browser does not support this function
select Print from the File menu to print the label.
2. Fold the printed {abet at the solid line below. Place the label in a UPS Shipping Pouch. If you do
not have a pouch, a~x the folded label using clear plastic shipping tape over the entire label.
3. GETTING YOUR SHIPMENT TO UPS
Customers with a Daily Pickup
Your driver will pickup your shipments)as usual.
Customers without a Daily Pickup
Take your package to any location of The UPS StoreA~, UPS Access Point(TM) location, UPS Drop
Box, UPS Customer Center, UPS Alliances (Office DepoU4~ or StaplesA~) or Authorized Shipping
Outlet near you. Items sent via UPS Return Services(SM)(including via Ground) are also accepted at
Drop Boxes. 7o find the location nearest you, please visit the Resources area of CampusShip and
select UPS Locations.
Schedule a same day or future day Pickup to have a UPS driver pickup all your CampusShip
packages.
Hand the packa~e to any UPS driver in your area.
UPS Access Point7"'
UPS Access PointT"'
UPS Access Point
THE UPS STORE
THE UPS STORE
THE UPS STORE
2625 PIEDMONT RD NE
4060 PEACHTREE RD
3535 PEACHTREE RD NE
ATLANTA ,GA 30324
30319
,GA
ATLANTA
30326
ATLANTA ,GA

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Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 31 of 32


February 9, 2016
Shipper A3749A
Page 1 of 1

ups
ATTN :ANGELA JOHNSON
PHONE : (404)842-5764

DELIVERY NOTIFICATION
~l~~i:~~~~:z~~~E

SHIPMENT TO:

Shipper Number............................A3749A

ANGELA JOHNSON
SEC ATLANTA REG OFFICE
905 PACES FERRY RD NE
ATLANTA GA 30326
SECURITIES COMPLIANCE GROUP,
ADAM S. TRACY, ESQ.
520 W ROOSEVELT RD STE 201
WHEATON IL 60187
Tracking Identification Number...1ZA3749ANT97404819

According to our records, 1 parcel was delivered on 11/04/15 at 10:02 A.M., and left with a PERSON AT
YOUR CUSTOMER'S LOCATION.

PZC1 EDB;000A0000

Case 1:16-mi-00041-WSD-CMS Document 1-4 Filed 06/15/16 Page 32 of 32


February 9, 2016
Shipper A3749A
Page 1 of 1

ups
ATTN : ANGELA JOHNSON
PHONE : (404)842-5764

DELIVERY NOTIFICATION
INQUIRY FROM:

SHIPMENT TO:

Shipper Number............................A3749A

ANGELA JOHNSON
SEC ATLANTA REG OFFICE
905 PACES FERRY RD NE
ATLANTA GA 30326
SECURITIES COMPLIANCE GROUP,
ADAM S. TRACY, ESQ.
520 W ROOSEVELT RD STE 201
WHEATON IL 60187
Tracking Identification Number...1ZA3749ANT97404819

According to our records, 1 parcel was delivered on 11/04/15 at 10:02 A.M., and left with a PERSON AT
YOUR CUSTOMER'S LOCATION.

fiZ~l~~:111 ~ 1111

Case 1:16-mi-00041-WSD-CMS Document 1-5 Filed 06/15/16 Page 1 of 3

EXHIBIT C
Letter to Alex Rue,Esq. dated February 1,2016.

Case 1:16-mi-00041-WSD-CMS Document 1-5 Filed 06/15/16 Page 2 of 3

UNITED STATES
SECtJR1TIES.l1ND fXt.'~:(ANG~ C`OMMISSIOI
A'I'L~S.NTA REGIt~NAL nFF'ICE
DSO E ast Paces Ferry Road, N..F;. S~iite 900
Atlanta, Georgia 30326-1382
Telephone: (404)842-7680
Facsimile: (404)842-7633

Edward ki. Satuiders


Senior Counsel

February 1, 2016
VlA E-MAIL:
a1c~alcYruelaw.carn
VIA UNITED PARCEL SEIt.VICE:
Alex Rue, F,sq.
AlexRueI,aw,LLC
4060 Peachtree Road, Suite I)511
Atlanta, Georgia 30319
Ete:

[n The Matter of Sonant Communications Coxp., and Certain Other Issuers(A-()3672,

Dear Mr. Rue:


As you will recall on November 3, 2U 15,1 sent a subpoen~~ fir documents to Securities
Compliance Group, Ltd.("Securities Compliance") that requested these daculiients be provided
to us no latex than Thursday, Novembf;r 19, 2015("due date"). The subpoenaed docuine.nts have
yet to be delivered to this office. Since the passing of the due date,I have spoken to you on five
separate occasions where, each time, you have promised delivery ofthe subpoenaed documents,
to na avail.
On Mondt~y,I7ecernber 7,?O1 S,T received a call from yo~7, where you notified me that
you represent Securities Compliance and Adatzi Tracy("Tracy"). Yau informed m.e that .I would
have the subpoenaed documents the next day, Tuesday, December 8,2015, f1,t that time, I stated,
if it would be easier for you,the documents could be delivered as .late as l~riday, December 11,
2015. No such documents arrived by close of business on. December 1.1, 2015.
nn Iiriciay, December 18, 20l 5,I called you stating that I had not received the
subpc~e~~.acd. clocumen.ts and asked when I would receive them. You responded that you would
have them. delivered to me that. afternoon. No such documents were received.
~n Tuesday, January S, 201 C,I called you again,to ask whin 1 shaulil expect to receive
the subpoenaed. documents. Youx response was that I would receive them by Friday, January 8,
2016. You ~~lso told nee that the documents con. steel z~f a stack appro,cimately 3 inches high and
a few cd disks. lea such doc~nients were xeeeived by close of business nn January f~, 201b.

Case 1:16-mi-00041-WSD-CMS Document 1-5 Filed 06/15/16 Page 3 of 3

Alex Rue, Esc.


Febniary 1, 2016
Page 2 oC2
On Tuesday, January 12, 2 16,I calked you for the third time stating #hat 1 still had not
received any subpoenaed documents. You tall me that you had alre~rciy sent. the documents via
"ARO")the previous week. I
the[Jnited States Postal Service to the Atlanta Regional Office(
responded that nn one at the ARO had received a package from you. ~Iowever, I woutd doublecheck. Yau responded that I did not need to check on the package as you would send nne another
copy. No documents were received.
On Tuesday, January 19, 2016, I called you for the fouxth time stating that X still had not
received any subpoenaed documents from you on behalf of your clients. You responded that you
would send me the documents on either Thursday, January 21, 2016 or Friday, January 22,2016.
No documents have been produced.
I have provided every opportunity far you, on behalf of your clients,to frilly comply with
the outstanding subpoena. Unfortunately, you have chosen to withhold the subpoenaed
documents. I am,thereFare, placing you on notice that you lave until 5:00 p.rr~. on Thursday,
rebruary 4,2016 to produce the subpoenaed documents. If the documents are not produced to
this office by fhe time and date stated above, please be advised that we will consider all options
available to us, including, but not limited to, the filing of a subpoena enforcement action against
Securities Compliance and Tracy.
If you have any other questions,please call me at(404)842-7680.
Sincerely,

Edward II. Saunders


Senior Counsel
Diviszon of Enforcernerit

Case 1:16-mi-00041-WSD-CMS Document 1-6 Filed 06/15/16 Page 1 of 3

EXHIBIT D
Letter to Alex Rue,Esq. dated February 10,2016.

Case 1:16-mi-00041-WSD-CMS Document 1-6 Filed 06/15/16 Page 2 of 3

1.11V1~1 L',Ll ~1A1~~~

S1CURITIES AND IXCFI~NGI~,C'OMMISSIC)N


.A1'1.,AN'.1'A TZECxI~NAL OI'FICF
950 East Paces Fezry Road, N.E. Suite 900
Atlanta, Georgia 3032b-1382
'Telephone: (40~)842-76~U
Facsimile: (404)842-763J

}~:dward l:l. Sauiders


Senior Cowasel

~~ebntary ]U, 2,U 16


VTA E-MAID::
alex(C~alexruela~~.cot~1
VlA CJNI'I'EI) PATtCEL SERVICE:
Alex Rue,Esq.
,A1exRue:IaaGr~, I.,I:.C;
4060 I?eachtree Road, Suite, AS11
Atlanta, Georgia 30319
Re:

Iz~ The Matter o#'Sanant Communications Corp.,and Certain Other Issuers~A-03b72~

Dear Mr. Rue:


You tiviii recall that I called you today to ask why you and your client, Adam 'Tracy, did
"ARO").
not appear for testimony scheduled far this anonxin~ at the Atlanta Regional +Office(
The scheduled testimony was p~.zrsuant to a subpoena I sent to yaux client in care of you at your
a:ffiee address. ~X~u responded that you sent me an e-mlil last week requesting alternate dates for
Mr. "Tracy's testimony. I replzed that I was unaware of any such e-mail. 'We then discussed
future elates f'or Mr. Tracy's testimony when you stated that he wc~ulc~ be avv.lable "...cluring the
week of the fourteenth or the week after." I asked if your client would be ~varlable f'or testimony
during the first ~~veelc <~f Mardi, 201 b. You told me that you thought those dates would work and
said you pre#'erred Wednesday, Thursday or Friday of that week (March 2"`~, 3r`~ or 4t~'). I
responded that X wanted to first check to see if I received your e-mail zz~c~ would then get back to
you to tiu~tlize a date :for Mr. Tracy's testimony.
t promptly called you back stating That I had no retard of the e-snail you claimed tv have
sent me last week. T also asked you if we could schedule Mr.'l'racy's testimony f<>r the week of
February l4, 2016, specifreally Thursday, February l8, 2016. Yc~u replied that you ~vc~uld leave
to check r~i#k~ year client and ~vc~~ild het back to mc. I asked it' yc~u could set me know by the end
of the day to ~~vhich you ie~lieci sleet "...1 will. try." In lacking at xny calendar again, I am atso
available to take Mr. Tracy's testimony on T~~day, February 19, 2016. Testimony on eith~;r
~.Ch.~~rsday, Febraary l8th <~r Friday, February 19th will lie at the AfZn. I:f I do not receive a
res~ians~ from yc~L~. in rva~atin.g by S:Ot~ p,rn.. toxnoz~r~w, T. wi).1 send. yot~ a. s~.ibp~~en~. tnx y~~~r clienk
to testify ~t the ADO on Thixrsday, Febn~ary l 8, 2(? l ~i.

Case 1:16-mi-00041-WSD-CMS Document 1-6 Filed 06/15/16 Page 3 of 3

Alex due, l,sq.


Februazy 10, ~U 1 b
Yage 2.of2
'lease verify in Ming that you received the subpoena package to 1VIr. Tracy tlxat was
delivered by United Parcel Service <~n January 2Ci, 2016 to your office. Please also send me a
copy of your original e-mail from last week that referenced. alternative dates for Mr. Tracy's
testimony. I am trying to determiize why I never xeccivcc~ this c-mail.
I want to ensure that there are no additional misunderstandings between us. As such,
please confirm t~ me in writing that: X) you are still repres~.ntin~ both Eldain 'Tracy and Securities
Compliance Citoup, Ltd.("Securities Conzpliancc"); 2) you lave been authorized to accept
service of process on behalf of both your clients; axad 3) the correct address of your law firm is
406Q Peachtree Road, Suite D511, Atlanta, Georgia 30319.
Finally, I told you that I still have not rECeived any documents responsive to the subpoena
issued to Secwnities Compliance on Novennber 3, 2015. I want to remind you that during our
phone call today, you stated that the documents would be received tomorrow, February 11, 2016
~.t the A.RO.
If there is any information in this letter that you believe to be inaccurate, please let me
know in writing.
Sincerely,
'~~
~(~

//Y

Edward I~. Sauticters


Senior Colmsel
Division ofenforcement

Case 1:16-mi-00041-WSD-CMS Document 1-7 Filed 06/15/16 Page 1 of 4

EXHIBIT E
Letter to Alex Rue,Esq. dated February 16,2016.

Case 1:16-mi-00041-WSD-CMS Document 1-7 Filed 06/15/16 Page 2 of 4

iJNITED STATES
SECURITIES AND EXCHANGE COMIvIISSTON
ATLANTA REGIONAL OFFICE
950 East Paces Ferry Road, N.E. Suite 900
Atlanta, Georgia 30326-1382
Telephone: (404)842-7680
Facsimile: (404)842-7633

Edward H.Saunders
Senior Counsel

February 16,2016
VIA E-MAIL:
alex(c~alexruelaw.com
VIA UNITED PARCEL SERVICE:
Alex Rue,Esq.
AlexRueLaw,LLC
4060 Peachtree Road,Suite D511
Atlanta, Georgia 30319
Re:

In The Matter of Sonant Communications Corp., and Certain Other Issuers 1A-03672)

Dear Mr. Rue:


You will recall our phone conversation that occurred today at 1:50 p.m., where I asked if
you had communicated with your client, Adam Tracy("Mr. Tracy")in order to finalize a date to
appeaz for testimony at the Atlanta Regional Office("A.RO"). You responded that you still had
not heard back from Mr. Tracy, however you would try to contact him by the end of today and
reconnect with me. I did not hear back from you and accordingly called you again at 4:00 p.m. to
ask whether you had communicated with Mr. Tracy. In response you noted that you did in fact
speak with your client, however you are waiting to hear back from him concerning an acceptable
testimony date.
In addition to this news, you stated that Mr. Tracy could probably be available for
testimony during the week of February 22-26`x, 2016. I suggested that you make arrangements
with Mr. Tracy to come in for testimony at the ARO on the first week of Mazch, March 1-4~',
2016. You responded that you will discuss these dates Mr. Tracy and contact me in writing with
your selected date preferences among the given dates in March cited above.
At this point I want to remind you that Mr. Tracy was subpoenaed to appeaz for testimony
on February 10, 2016. Both you and client did not show up for testimony. I then sent a second
subpoena to Mr. Tracy in caze of you to appear for testimony this Thursday, February 18, 2016.
In our second phone call this afternoon at 4:00 p.m., you told me that you had received the
subpoena but was still waiting to hear from Mr. Tracy on acceptable testimony dates. As a result,
I have agreed to reschedule the February 18~' testimony date to a date during the March 1-4`x,
2016 time period. Please understand that Mr. Tracy remains under subpoena.

Case 1:16-mi-00041-WSD-CMS Document 1-7 Filed 06/15/16 Page 3 of 4

~11c.c Itu~, ~sq.


~ehruary 16, 2Q 1 G
Pale 2 of2
~inall~, as you are aware, I still. httve nax received ~;ny dpcclments from you on behalf of
Ivir. "Tracy and/or Securifiics Cornpli~nce C.~roup, Ltd. These documents were subpnenaecl an
November 3, 2p15. You assured m~ today that the doctun~nts "are in the mail" and I should "get
them. tomorrow or the next day." '1"h s is now the seventh. time you promised to deliver the
subpoenaed dacum~nts.
I look forward t~ receiving; floc documents you sent to me in the mail this week as well as
coming;to a resolution on the testimony date in c~ue4tian..

Sincerely,

Cclward I-I. Saunders


Senior Coun~el
:Division of Enforcement

Case 1:16-mi-00041-WSD-CMS Document 1-7 Filed 06/15/16 Page 4 of 4


UPS CampusShip: Shipment Label

Page 1 of 1

UPS CampusShip: View/Print Label


1. Ensure there are no other shipping or tracking labels attached to your package. Select the
Print button on the print dialog box that appears. Note: If your browser does not support this function
select Print from the File menu to print the label.
2. Fold the printed label at the solid line below. Place the label in a UPS Shipping Pouch. If you do
not have a pouch, affix the folded label using clear plastic shipping tape over the entire label.
3. GETTING YOUR SHIPMENT TO UPS
Customers with a Daily Pickup
Your driver will pickup your shipments) as usual.
Customers without a Daily Pickup
Take your package to any location of The UPS Store, UPS Access Point(TM) location, UPS Drop
Box, UPS Customer Center, UPS Alliances {O~ce Depoi~ or Staples) or Authorized Shipping Outlet
near you. Items sent via UPS Return Services(SM)(including via Ground) are also accepted at Drop
Boxes. To find the location nearest you, please visit the Resources area of CampusShip and select
UPS Locations.
Schedule a same day or future day Pickup to have a UPS driver pickup all your CampusShip
packages.
Hand the packa~e to any UPS driver in your area.
UPS Access PointT""
UPS Access Pointe"
UPS Access Point
THE UPS STORE
THE UPS STORE
THE UPS STORE
2625 PIEDMONT RD NE
4062 PEACHTREE RD NE
3535 PEACHTREE RD NE
ATLANTA ,GA 30324
ATLANTA ,GA 30319
ATLANTA ,GA 30326

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Case 1:16-mi-00041-WSD-CMS Document 1-8 Filed 06/15/16 Page 1 of 5

EXHIBIT F
Letter to Alex Rue,Esq. dated Apri114,2016.

Case 1:16-mi-00041-WSD-CMS Document 1-8 Filed 06/15/16 Page 2 of 5

tJ't~Cl'I'~~~ ~'I'A'I'"I~;

sr~c~u~~~rl~s ~~rr~ ~xcx~~GE c~~~~~sszc~~


~,'I"i:.~~1N7`,A IZ~;GICINAL UFF~'ICE
9~t)fast faces Ferry Roacl, N.T ., quite 400
1ltlanta, Ucoxgia 3Q326-13$2
Telephone: (404)842-7680
Facsimile: (404)$42-7b33

Edward 1-1.. Saunders


Seninr Counsel

April 14, 201.6


VIII B-MAIL
Alex~c7alcxruclaw.cone
VIA iJNITEI7 PA.ELCEL SERVICE
Alex Rue, Esc.
AlexRue.I,aw, X,LC
4060 Yeachtzee Road, Suite DS 21
Atlanta, Georgia 30319
lte:

In the Matter of"~anant Communications.Cori.and Certain UtherIssuers(A-03672

I:)eax Mr. i2uec


I have nc7r~v had ara oppot~tiuuty to review the document ~ro~~rctic7n you produced on behalf
of youx client, Securities Compliance Group,Ltd.,("Securities Compliance")to the Atla~ita
Regional Office("ARO")on March 14,2016. Xou will reca11 that the docunicnt production was in
response fn a subpoexla I sent to your client on November 3,2015 (tkie "November 3`d subpoena"},
.more than #ive months ago. The November 3rd subpoena cozlsisted oftwelve categories of
document requests. Your response to the November 3`d'subp~ena consisted ofapproximately 2,259
pages that were iza complete random order.
l do ttot ~ielieve that any ofthe ~rodueed c~ocumezits are r~5pansive to tyre Noveini~er 3`d
subpoena fir the Lc>llc~win~ reasans:(1)none ofthe documents produced appear to relate to a~zy
inf<7rm~ttior~ red ardin~ the entities and individuals named in the document requests;(2) those
d.ocnzx~eaats wl~icll are readable relate to two con~pan.ies th~rt, to any knowledge, aae not related to this
ingest gati~n.;(3)there was no Uxplaaiation of which pages responded tt> which specific document
zec~uest and no privilege Ic~g; and {4} ofthe documents produced, 859 pages were either completely
bl~u~k gages, usireadal~le due to illegible copies or duplicates c~F~ci~euments pr~t~c~uced.
Yot7 have assured m.e on at ).e~~st seen different c>~ cas Uns that res~onsive documents wc7utd
be prc>c~uced(See my letters to you dated Febzuary 1, 2016 and ~ebr~7ary 1(i, 2016.). Mc~rec~ver, yo~.~
have never objected to prc>duci~g an.y ofthe subpc~enacd doeurriet~ts.
dour client, Adam Tracy("'I'xacy'~ ha:.~ also.failed t~ appc~r .Ic~r tr~~ti.m.c~ny at the ARC..?
ri~rrc~. r~.s }rou will rt>call, I issued a ~t~bp4aena #.~~ "1;'r~~~y, in. ~ax~ cif your ~~ftice, ~n J~~uary 2.5, 2016
fE~z testi~ni~.ny c>n Febn~~ry l 0,20l ~, When you and yo~rr client failcci to appear fir testimony an

Case 1:16-mi-00041-WSD-CMS Document 1-8 Filed 06/15/16 Page 3 of 5

Alex Rue Esc.


April 14,?016
Page 2 of3
that clay,[celled you later that sarc7e day in order to ascertain the rc;ason. Yc~u replied that you had
sent me an e-mail t1~e previous week requesting alternate. dates.
A:Fter I ctleckec~ xx~y e-mail, I called yuu back stating that I had never received such an e-mail
and requested that you resend it. No such e-.mail was ever produced by ycau..I.)uring that call., Y. also
a.5keci if we could reschedule Tracy's testimony for T'hursclay, February 1$, 2016. I asked ifyou
could let me know by tie end afthe day(February 10, 2016). When I did not hear from you that
day, .I wrote you a letter stating that, ifyou failed to provide me with testimony dates for Tracy by
5:U0 p.m. ~n February 1 1, 2016,I would send Tracy a second subpoena,in care of your office,
requiring Tracy to appear for testimony atthe AI2U an "C"hursday, Febt-uary 18, 201.6. (See my letter
to you dated ~'ebruaiy 10, 2016.).
I did not hear from you by the deadline. As a result, I sent'C'racy anothex subpoena,in care
~f'yc~ur office, for his testimony to occur aC the ARU on February l $,2016. I, again, heard nothing
in response from you. On February 16, 2016, salted you to ask if you had communicated with
'Pracy concerning; his upcoming testimony. You stated that you .had not heard from your client. I
then called you a second time at 4:00 p.rn.that same day, During that conversation, you told zz~e
that you had spo~Cen to your client but were still waiting to hear from him concerning an acceptable
testimony date. As a result cif our two conversations on Febz~uary l6,20..16, I agreed to resck~ed.ule
Tracy's testimony to a date clurin~ 'the March 1-4, 201b time period(See zx~y letter to you dated
3~el~n~ary 16, 2d 1 b).
After cur conversations on February .16, 2016,1 never heard from you regarding a mate for
"l rae.y's testimony at the SRO during the March I-4, 2Q16 time period. pn Febraary 18, 2016,:I
sent Tracy a.~~other subpoena iz~ care of your office fc+r his testimony to occur at the ARC on
Th~.usday, March. 3,2016. No response was forthcoming from you. 4z~ Thursday, Mardi 3,2016,
you and Tracy, again, failed to appear fc~r 'T'racy's testimony.
[ havG; ~t~ovi.ded you acid yc~titr clients every opportunity to comply with the outstanding
d.oct~r~lent an~3 to stimony stibpoez~as to n~ avail. I am,therefore, placing; you on notice that ecru have
until ~:t)0 p.m. an Friday, April 22,20i ~ to produce all ofthe .subpoen~ecl documents as xequired by
th.e Navy tuber 3r`~ subpoena. You alse~ have until Apri122,20~6 within which to provide nee dates
during the weeks of May 16~' ~n~ Ntay 23`d when Tracy is available to testify at the AkO. 1fthe
subpoc:aiaed clocl7ments as well as a date for 'I'.racy's testixxxony at thy. AR(~ c~l~ri~~g thi weeks ~f May
1.6th and May 2.3rd are not prot~uced to this office by the tzrne and date st~teci above, phase be
advise_ci th~~t ~3re w~ri:ll consider all options available to ns, including, but t~r~t limited tc>, the ~ti~i~ of a
scib~c~e,na ~:nforcemeni action against your clien#s `securities Ct~.rzlpli.atxce and 'I`racy.

Case 1:16-mi-00041-WSD-CMS Document 1-8 Filed 06/15/16 Page 4 of 5

f~l~:x IZt~~ l3sy.


~~ril 14, 2016
Page 3 of3
If you have any c~uestiolis, please contact me at(~(~4)$42-76$f1.
SinecrelY,
~r
Laward x. saunaers
Senior Gaunsel

Case 1:16-mi-00041-WSD-CMS Document 1-8 Filed 06/15/16 Page 5 of 5


~I':~ C`an~~u~Sl~i~y: Sl~i~~i~e;~if L.ab~t

Page l ~[' l

UP5 CampusShip: View/Pr6r~t ~.abe!


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Print button on the print dialog box that appears. Note: If your browser daes not support this funs#ion
select Print from the Fide menu #o print the label.
2, iold the printed label at the solid line below. Place the label in a UPS whipping .Pouch. If you do
not have a pouch, affix the folded label using clear plastic shipping tape aver the entire {abet.
3. ~Ei'TING YOl1R SHIPMENT TO UPS
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Your driver will pickup your shipments) as usual.
Customers without a Daily Pickup
Take your package to any location of The UPS'Store~, UPS Access Point(TM) location, UF'S Drop
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near you. Items sent via UPS Return Services(SM)(including via Ground) are also accepted at Drop
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Schedule a same day or future day Pickup to have a UPS driver pickup all your CampusShip
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Hand the package to any UPS driver in your area.
UF'S Access PointT"'
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THE t!F'S STORE
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3535 PEACHTREE RD NE
4062 PEACMTREE F2D NE
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ATLANTA ,GA 30326
ATLANTA ,GA 30319
A7lANTA ,GA 30324

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Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 1 of 24

EXHIBIT G
Adam Tracy subpoena package dated January 25,2016 and the United Parcel
Service proof of delivery.

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 2 of 24

Y.

UNTIED STATES
SECURITIES AND EXCHANGE COMMISSIQN
ATLANTA REGIONAL OFFICE
East
950
Paces Ferry Road,N.E. Suite 900
Atlanta,Georgia 30326-1382
Edward H.Saunders
Senior Counsel

Telephone: (404)842-7680
Facsimile: (404)842-7633

January 25,2016
VIA UNITED PARCEL SERVICE
Adam S. Tracy,Esq.
c% Alex Rue,Fsq.
A1exRueL,aw,LLC
4060 Peachtree Road,Suite D511
Atlanta, Georgia 30319
Re:

In The Matter ofSonant Communications Corp.. and Certain Other Tssuers~A-03672

Dear Mr. Tracy:


The staf~'ofthe U.S. Securities and Exchange Commission is conducting an investigation
in the matter identified above. The enclosed subpoena has been issued to you as part ofthis
investigation. The subpoena requires you to provide sworn testimony. Please read the subpoena
and this letter carefully. This letter answers some questions you may have about the subpoena.
You should also read the enclosed SEC Form 1662. You must comply with the subpoena. You
may be subject to a fine ifyou do nod We have also included a Background Questionnaire form.
Please complete the enclosed form and return it to ns prior to your scheduled testimony.
Tesfi
Where and when doItestify?
The subpoena requires you to come to the Atlanta office of the United States Securities
and Exchange Commission,950 East Paces Ferry Road,N.E. Suite 900, Atlanta, Georgia 303261382 on Wednesday, February 10, 2016 at 9:30 a.m. to testify under oath in the matter
identified on the subpoena.
Other ImportantInformation
what will the Commission do with the tesfimorry 1provide?
The enclosed SEC Form 1662 includes a List of Routine Uses ofinformation provided to
the Commission. This form has other important information for you. Please read it carefully.

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 3 of 24

Adam S. Tracy, Esq.


J<~nuary 25, 2416
Page 2 of2

Has the Cornmrssion delerminecl shat anyone has done afrythin~ ~t.rong?
This investigation is a nnn-public, fact-finding inquiry. We are trying to determine
whether there have been any violations of the federal securities laws. The investigation and the
subpoena do not mean that we have concluded that you or anyone else has broken the law. Also,
the investigation does not mean that we have a negative opinion ofany person, entity or security.
bnportant Policy Concerning Se1lCc~nrerrts
Please note that, in any matter in which enforcement action is ultimately deemed to be
warranted, the Division ofEnforcement will not recommend any settlement to the Commission
unless the party wishing to settle certifies, under penalty of perjury, that all documents responsive
to Commission subpoenas end formal and informal document requests in this matter have been
produced.
1 have read this letter, the subpoena, and the SEC Form .I b62, but 1 still have questions. l~'hat
should Iclo?
If you have any other questions,.you may call me at(404)8427680.
Sincerely,

Edward H. Saunders
Senior Counsel
Division ofEnforcerrient

Enclosures:

Subpoena
Background Questionnaire
SEC Farm 1562

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 4 of 24

SUBPOENA

UNITED STATES 4F AME.~tICA


SECURITIES AND EXCHANGE COMMISSION
1n The Matter ofSonant Communications Com., and Certain Other Issuers fA-03672
Adam S. Tracy, Esq.
c/o Alex Rue, Esq.
AlexRueL,aw,LLC
4060 Peachtree Road, Suite D51 I
Atlanta, Georgia 30319

YOU MUST TESTX~Y before o~eers ofthe Securiries and Fa:change Commission at the place,
date and tinne specified below: United States Securities and Exchange Commission,950 East Paces
Ferr}~ Road,N.E., Suite 900, Atlanta, Georba 30326-1382 on Wednesday,Febru~y 10, 2Q16 at
9:30 am.

FEDERAL LAW REQU;iItES YOU TO COMPLY WITH TI3TS SUBPOENA.


Failure to comply may subject you to a fine and/or imprisonment.

By:

~~~x"-~~..1 r.~- I) ~~~--~_


Edward H. Saunders
Senior Counsel
Division ofEnforcement

Date: January 25,2016

T am an officer oPtihe Securities and E~:change Commission authorized to issue subpoenas in this
matter. The Securities and Exchange Commission has issaed a formal order authorizing this
investigation under Section 20(a)ofthe Securities Act of 1933("Securities Act's and Section 2](a}
ofthe Securities Exchange Act of 1934. T'he Commission has also issued an Order ofExamination
under Section 8(e)ofthe Securities Act.

NOTICE TO W1TI~ESS:

If you claim a ~vifxess t'ec or miJe~~e,submit this subpoena with the claim voucher.

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 5 of 24

BACKGROUND QUESTIONNAIRE
Please respond to the following questions in the space provided. If you need additional
space for any response, you may attach additional pieces of paper.
Today's date:
1. What is your full name?
2. Have you ever been known by any other name? Yes _ No _
If yes, list each such name and the periods)in which you were known by that name.

3. Date and Place ofBirth?

4. Country ofCitizenship?
5. Marital Status? Married ~ Divorced _Single _
If you have ever been married,state for each marriage:(i)the dates)oftbe marriage;
(ii)the name of your spouse;(iu) your spouse's birth name,ifdifferent;(iv) your
spouse's age; and(v)your spouse's occupation.

6. List the names,ages and occupations of your children,ifany.

7. List all reside~,ces you occupied at any time during the last[three] years, inciuciing
vacation homes,beginning with your current residea~ce. Far each residence, state the
address, dates ofresidence,and all telephone numbers(including facsimile numbers)
listed at that address.

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 6 of 24

Background Questionnaire
Page 2
$. List all telephone numbers and telecommunication services that were in your name or
that you regularly used at any time during the last[three] years. Include all residential,
business, cellular, credit card,and VOID telephone numbers, including those listed in
your response to question 7, and services such as GoogleVoice,Skype,video conference
serviccs. For each telephone number,state the names)of the corresponding carriers)
(e.g., AT&T,Verizon, Vonage, Skype,etc.).

9. List the universal resource locator(URL)for all websites or blogs that you established or
for which you had the authori#y to control content,at any time during the last[three]
years. For each website, state the names)ofthe domain name regisccar(e.g. GoDaddy)
through which the URL was obtained,the names)ofall individuals or enrities who
provided web site hosting or design services, whether the website contained primarily
business or personal information,and the time period in which it was active.

10. List all electronic mail addresses and social networking accounts(e.g. Facebook,
Linke~iIa, Twitter,Instagram,Flickr, and Google+)that were in your name or that you
regularly used at any time during the last[three] years. Include all personal, business and
shared electronic mail addresses and social networking accounts. For each electronic
mail address and social networking acxount,state the names)oftl~e con~esponding
Internet service providers)(e.g., Google, Yahoo,AOL,or your employer), whether the
address was used primarily for business or personal correspondence,and the time period
in which it was active.

1 t. List all usernames for instant messaging and similaz electronic communication services
(including, but not limited to, Bloomberg, Skype,whatsapp), other than those listed in
your response to questions 8 through 10,that were in your name or that you regularly
used at any tinne during the last[three] years. Include all personal, business and shared
addresses. For each username,state the names)ofthe communication service provider
{e.g., Googly, AOL,etc.), whether the address was used primarily for business or

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 7 of 24

Background Questionnaire
Page 3
personal correspondence, the time period in which it was arrive, and the name ofthe
software applications)(e.g., GTa1k,ICQ, MSN Messenger) you used to access it.

12. List all Internet message boazds or discussion fonuns(including, but not limited to,
Money Maker Group,PNQI Message Board,Investors Hub Daily}of which you were a
member or on which you posted any messages at any time during the last [three] years.
For each message boazd or discussion forum,state the service provider and your member
name or identification in#'ormation.

PUBLICLY-HELD COMPANIES
13. Are you now,or have you ever been,an officer or director ofany publicly-held
company? Yes _ No
If yes, identify each such company,its CUSIP,and any exchange on which it is or was
listed, and state your positions(including membership on any Board or management
committces)and the dates you held each position.

14. Are you now,or have you ever been,a beneficial ovimer, directly or indirectly, offive per
cent or more ofany class ofequity securities ofany publicly held company? Yes _ No _
If yes, identify each such company,its CUSIP,and any exchange on which it is or was
listed, and state tbe amount,percentage,and dates of your ownership.

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 8 of 24

Background Questionnaire
Page 4
PRIVATELY-HELD COMPANIES
15.

Are you now,or have you ever been,a beneficial owner,directly or indirectly, ofany
privately-held company(i.e., corporation, partnership, limited liability company or other
corporate form)? Yes_ No_
If yes, identify each such company,including address and other contact information, and
state your positions and the dates you held each position.

16.

Are you now,or have you ever been,a manager or a member ofany privately-held
company(i.e., corporation, partnership, limited liability company or other corporate
form)? Yes_ No
If yes,identify each such company,including address and other contact information,and
state your positions and the dates ybu held each position.

SECURIT~S ACCOUNTS
17. List all securities or brokerage accounts that you have held in your name,individually or
jointly,at any time during the last[three] years. Include all foreign accounts. For each
such accotwt,identify:(i)the brokerage firm;(u)the location ofthe branch where your
account is or was held;(iii) your broker,{iv}the type ofaccount(i.e., cash, margin or
IRA);(v}the account number,and(vi) whether any person has ever held discretionary
authority or power ofattorney over the account; ifso,name such person(s).

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 9 of 24

Background Questionnaire
Page 5
18. List all securities ar brokerage accounts(including foreign accounts),other than those
listed in your answer to Question 17,in which you had any direct or indirect beneficial
interest at anytime during the last[three] years. For each such account, provide the
information requested by question 17.

19. List all securities or brokerage accounts(including foreign accounts), other than those
listed in your answer to question 17 or 18,over which you had any control at any fiime
during the last[three) years. For each such account, provide the information requested by
question 17.

BANK ACCOUNTS
20. List all accounts you have held in your name at any financial institution(i.e., bank,thrift,
or credit union)at any time during the last[three) years. Include all foreign accounts.
For each such accflunt, identify:~)the financial institution;(ii)the address ofthe branch
at which your account is or was held;(iii)the type ofaccount(i.~,checking; savings,
money mazket or IRA);(iv)the account number; and(v)whether any person has ever had
discr~ionary authority or power ofattorney over the account; ifso,name such person{s).

21. List all accounts at financial institutions(including foreign accounts},other than those
listed in your answer to question 20,in which you had any direct or indirect beneficial
interest at any time during the last[three) years. For each such account, provide the
information requested by question 20.

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 10 of 24

Background Questionnaire
Page6

22. List all accounts at financial institutions(including foreign accounts), other than those
listed in your answer to question 24 or 21,over which you bad any control at any time
during the last [three] years. For each such account, provide the information requested by
question 20.

23. List any other accounts(including foreign accounts), other than those listed in your
answers to questions 20 through 22,that were held in your name,in which you had any
director indirect beneficial interest, or over which you had any control,that you have
used to transfer funds in the last[three) years,including, but not limited to,PayPat
accounts. For each such account,provide the information requested by question 20.

PRIOR PROCEEDINGS
24. Have you ever testified in any pzoceeding conducted by the staff ofthe Securities and
Exchange Commission,a U.S. or foreign federal or state agency,a U.S. or foreign federal
"FINRA'~
or state court,a stock exchange,the Financial Inciusay Regulatory Authority(
proceeding
arbitration
any
in
or
"SRO',
(
or any otherself-regulatory organization
related to securifies transactions? Yes _ No _
If yes,for each such proceeding,identify:(i)the title ofthe proceeding;(ii)the
organization or agency,and(iu)the dates)on which you testified.

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 11 of 24

Background Questionnaire
Page 7
25. Have you ever been deposed in connection with any court proceeding? Yes _ No _
If yes,for each such proceeding, identify:(i)the title ofthe proceeding,and (ii)the
'
dates)on which you were deposed.

26. Have you ever been named as a defendant or respondent in any action or proceeding
brought by the SEC,any other U.S.or foreign federal agency, a state securities agency,
FINRA,an SRO,or any exchange? Yes _ No _
If yes,for each such proceeding,identify:(i)the tifle ofthe proceeding,{ii)the agency or
tribunal;(iii)tbe substance ofthe allegations;(iv)the outcome ofthe proceeding; and
(v)the date ofthe outcome.

27. Have you ever been a defendant in any action {other than those listed in response to
question 2b)alleging violations ofthe federal securities laws? Yes _ No ~.
If yes,for each such proceeding,identify:(~ the title ofthe proceeding;(ii)the court or
tribunal;(iii)the outcome ofthe proc~ading; and(iv} the date othe outcome.

28. Have you ever been a defendant in any criminal proceeding other than one involving a
minor traffic offense? Yes _ No _
If yes,for each such proceeding,identify:(i)tbe title ofthe proceeding;{ii)the court or
tribunal;(iii)the outcome ofthe proceeding; and(iv)the date ofthe outcome.

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 12 of 24

Background Questionnaire
Page 8
EDUCATIONAL HISTORY
29. Provide the requested inforniation about each educational institution that you have
attended, beginning with the most recent and working backward to the date that you
completed high school.
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30.Other than courses taken in connection wi#h institutions listed in response to question 29,
list any securities, accounting or business related courses taken since high school. For
each such course,identify the date that the course was completed and the name ofthe
institution or organization that offered the course.

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 13 of 24

Background QuesUionnaire
Page 9
PROFESSIONAL LICENSES/CLUBS
31. Do you hold,or have you ever held,any pmfessional license? Yes_ No _

(ui}

If yes,for each such license, identify:(i)the license number or attorney bar number;
the date the license was awarded;(iv} the date such
(ii) the Licensing organization;
license terminated, if applicable;(v)the dates)ofany disciplinary proceedings)against
you: and (vi)the outcome ofany such disciplinary proceeding (e.g., reprimand,
suspension, revocation).

32. Are you,or have you ever been,a member ofany professional or business club or
organization? Yes _ No _
If yes,list for each:(i)the name ofthe club or organization;(ii) its address; Cii)the
dates)of your membership; and(iv)service in any governance roles {e.g., board
member,committee member,etc.)including title and dates ofservice.

33.Are you,or have you been in the last[threcj years,a member ofany social clubs,
charities or nonprofit ozganizations? Yes _ No _

{n)

If yes,list for eack:(i)the name ofthe social club,charity or nonprofit organization;


its address;(iii) the dates)of your membership; and(iv)service in any governance
roles (e.g., board member,committee member,etc.)including title and dates ofservice..

EMPLOYMENT HISTORY
34. Are you,or have you ever been,an employee ofa broker, dearer, inveshnent adviser,
investment company,municipal securities dealer, manicipaI advisor, transfer agent, or

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 14 of 24

Background Questionnaire
Page 10
nationally recognized statistical rating organization? Yes _ No _
If yes, list for each:(i)the jurisdiction ofthe entity;(ii) your CRD number;(iii)the
entity's CRD number;(iv)the entity's SEC File number,(v)the entity's CUSIP number,
and(vi)any foreign registration information similar to the foregoing.

35. State your employment activities, beginning with the present and working backward to
the date that you completed high school and attach a recent copy of your resume or
curriculum vitae.
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S~parisoc

Tide

Oasis of'Fmptoysmc

S~pavi:

Tick

DaW ofEmPtoya~at

Suyavisor

Emptoyer's NamdSelf-Employmcat
Telephone AiamLa~

Emptoycr's Saco Address


~Y

tiP~

City

Tine

Domes ofFaupbymeat

Tide

Dines ofF~ployaeat

~a~i%a

Title

D~a ofF.mptoyoesa

S~avis~

Tiile

Data of~rt+PlgYmeqt

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 15 of 24

Background Questionnaire
Page 11

Emptoya's NamdSclf-Employmcnt
Telcptrone Numbs

Employcr's Suety Acldma


Camtry

Zip Ck

City

Sate

Titk

Data otEmploymea~

SuPavisor

TiQc

Dales of Employment

Supttvisor

Tide

Ikza ofEmploymcnt

Supavisw

Tillc

Daxs ofEmpbymed

Supervise

Employer's NamelSeif-Employmcnt
Tckphono Number

Emp}oya's Street Address


CotrotrY

ZiP COdC

City

SWte

Tide

Dues ofEmployment

Suporvisor

Title

Dais o(Employmuq

Supervisor

Tick

Ihtts olEmPlayweat

Supv'sot

Tide

TJ~rs oEF~p10

Sapresor

Employer's NamdSel!Employ~aeat
Tdepbonc Numbs

Empbyer's Sbcet Addirss


State

City

Cn+mtry

ZiA rode

Bata ofFmploymeet

Supm'+sor

Dnteso[Employmeat

S~vu~

Title

Dffics o(EmFluYmrnt

S"pa~~sr

Title

DaYS oFEmPtoyaKat

SuPav~sor

Title

--

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 16 of 24

Background Questionnaire
Page 12

Employers t~fm,e~seu-Employ,nenc
Telep6oue Number

Employu's 5trat Addrtss


City

SU7e

Ca~mtry

ZiP Code

I?ata ofEmP

~+P~~

Tide

Data ofEmploymeat

Supmisw

Title

Dma oEEmPloymeet

Spervism

Tqk

Dma ofEmploymeat

Supnvisar

CONTIl~TUE ON ADDITIONAL SHEETS IF NECESSARY

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 17 of 24

SECi.TRIT'TES AND EXCIiANGE COMIVIISSION


Washington,D.C.20549
Supplements! Information for Persons Requested to Supply
Information Voluntarily or Directed to Suppty Information
Pursuant to a Commission Subpoena
A. False Statements and Documents
Section 9001 of Title 18 of the United States Gode provides as fopows:
(Wjhcever, in any matter within the jurisdiction of the executive, legislative, orjuc4aal branch of the
Gavemment of the United States, knowingly and wififully
(4) falsifies, conceaks, or covers up by any Uidc, scheme, or device a maternal fact
(2) makes any materially false, fictitious, or fraudulent statement or represer~ta6on; or
(3) makes ar uses any false writing or document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry;
shad be fined under this title, imprisoned trot more than 5 years... ar both.
B. i'esUmony
If your testimony is taken, you should be aware of the foIlawi~g:
1. i2ecorcf. Your testimony will be transcribed by a reporter. If you desire to go off the oeoard, please irxiicate this to
the Commission employee taking your testirrmny, who will determi~ whether to grant your request The reporter
wiq not go offi the recorcl at your, or your cowuel's, direction.
2. Counsel. You have the rfyht to be aaompanied,represented and advised by course!of your ch~ce. Your
counsel may advise you before, during and after your testimony; ques8on you brieQy at the conclusion of your
testimony to clarify any of the answers you give during testimony; aril make sammary notes during your
testimony solely for your use. N you are accompanied by counsel, you may cansulf privately.
ff you are not aocorrtpanied by counsel, please advise the Commission employee taidng your testimony if, durirsg the
testimony, you desire to be accompanied, ~eprnsenfed and advised by counsel_ Yourtestirtany will be adjourned
once to afford you the opportunity to arrange to be so accompanied, represented or advised.
You may be represented by counsel who also represents other persons imrdved in the Commission's investigation.
This multiple representation. however. Presents a pot~tial conflict ofinterest ~one d'~enYs interests are or maybe
adverse to anofhers. if you are represented by caurzsel who also repre,~ents otlzer persons involved in the
investigation, the Commission will assume that you and counsel have discussed and resolved alt issues concerning
possible conflicts of interest. The choice of counsel, and the espons~bility for that ctroice, is yours.
3.

Tiansaipt Availabifrty. Rule 6 ofthe Commission's Rules Relating to Invest~ations, 17 CFR 203.6,states:
A person who has submitted documentary evidence or testimony in a formal irne~igative proceeding
sha(1 be entitled, upon written request,to procure a copy of his doamentaty evidence or a transcript of
his tesfimony on payment of the appropr+ate tees: F'mvided, howgvsr,That in a nonpublic formal
investigative proceeding the C~nmisssiorn may for good cause deny such request. In any event, any
witrsess, upon proper identification, shall have the right to inspect the offcaai trartsaipt of the witness'
awn testimmony.

of
N you wish to purchase a copy of ttse transcript M your testimony,the reporter will provide you with a copy the
appropriate form. Persons requested to supply information votuntan'ty will be allowed the rights provided by this rule.
4. Perjury. Section 1621 of Ti@e 18 of tfie United States Code provides as follows:
Whcever
{9}havircy taken an oath before a com#>efent tribunal, officer, or persai, in any case in which a law of
the United States authorizes an oath to be administered, that he w~i testify, declare, depose, or certify
truly, or that any written testimony, declaration, deposition, or certificate by him subscribed, is true,
willfully and contrary to such oath slates or subscribes any material matter which he does not believe to
be true; or
SEC 1662(09-94)

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 18 of 24

(2)in any dedaratio~, certificate, verification, or statement under penali~r of perjury as pertnitied under
section 1746 oftitle 28, United States Code, willfully subsafbes as true any material matter which he
does nat believe ~ be true;
w
is guilty of perjury and shag, except as otherwise expressly provided by law, be fined under this title
imprisoned not mane the five years, or both.
any federal, state,
3. Fi/th Amendment and V~untary Tes6'mony.l~ formation you give maybe used against you in
any other agency.
foal or foreign adrttinistrative, civil or criminal proceeding brought by the Canmission or
t to the Constitution of the
You may refuse, in acxoRlarxe with ffie rights guaranteed to you by the Fifth Amendmen
United States, to give any iMamaGon that may Fend to incriminate you.
answer any
It your testimony is not pursuant to subpoena, yow~ appearance to testify is voluntary, you need not
d.
appreaate
n
however,
is,
cooperatio
Your
wish.
you
whenever
leave
may
question, and you
on, it vw'N be shown to you
6. Formal QnierAvar7atx7il~! K the Commiss~ has issued a formal ceder of investigati
make your quest ai writing.
during your testimony, at your request. If you desire a copy of the formal order please
C. Submtsslons and Settlements
Rule 5(c) ofthe Commisslai's Rules on Informal and Other Procedures, iT CFR 2025(c),

states:

a written
Persons who become invohred in ...inuestigations may,on their own iniHa~ve, wit
subject matter
the
to
regard
In
and
po~t~n
ihefr
inter
forth
seriing
n
Comrt~s~
the
to
statement
of tF~e
ofthe Imrestiya6an. upon requesk the staff, in its d~netian, may advise sixfi persons
and
to
general naihme o/Mte ~nresHgateon. ir~cludug the ind'~cated violations as they pertain them,
prior to the
the amourrt of time #tort may be available tot preparing and sing a statement
of an
presentation ofa s~atf reoomrtie~dation ~ Uie Commission far the canmenceme~
be forvvaMed to
should
persons
ink
~s
by
Subrnissior
.
prooeedirsg
Irj
or
ive
admmisdat
conducting
the appropriate Division Dae~or or Regional Director with a Dopy do the staff members
wtuch they rela~a.
the investigafro~ mid should be dearly refierenced bo the speafic investigation bo
d
is
In the evetrt a recornrr~endation for the corrurter~oernent of~ e~foac~nent prooe~ng
n
by the staff, any subrt~sions by inter~esled persons wip be frnwanded to the Commissio in
conjunCtian with the staff rt~erriarandum.
to Rule 5(c)as evidence in
'the stall of Uie Cort~nission roulir~ty sec-!cs to irttroduoe su~rissions made ~usuant
Commission enfofcemeRt proocedings, wheel the staff deems appropriate.
Rule 5{fl ofthe Commission's Rules on Irfomeal and Other Procedur~es.1T CFR

2025(fl, statQS:

s~ the
In the course ofthe Cortxnission's investigati~s, civil IawsuRs, and acGninistrative Proaeed~u~g
of such
staff, with appropriate autho~iza6on, may c6scuss with persw~s involved the disposition
rtt, or in some other manner. It is Nee potxy of the Commission,
matters by cons~t,by
any
such matte'may not,expressly or impliecDy, extend to any
of
the
won
however, that
or any
cximinal charges tt~ have been,or may be, brotgM against arty suds person
rt matter
recommendation with respect thereto. AxordinglY,~YP~inwiwed in ao enfwcemer
or order does so
before the ConmfissiaE who consents. or agrees to amsent.t~ any Judgment
or
solely for Use pwpose ofresolving tl~e dims against him in that investigative, avil,
have been,or
that
d~arges
c~ninal
arty
resolving
of
purpose
the
f~
Dui
got
matter
~lminishative
the Carunission nor its staff
might be, brought ag~r~st horn. This poltcy redacts the fact that
,a othen~uise dispos(ng of
b~ity for ir~uting,Ong,
has the authority or
General and
crimin~ proceedings. That authority ark[~a~~ity are vested in the Attorney
Juice.
of
t
Departrnen
the
r~epregentatives of
D. Freedom of Uforn~ation Act
provides ror disdosune of information ~o the
The Freedom of Information Ad 5 U.S.C.552(the'FOIA7,generaNy
l7CFR 200.83, provides a prone by
Requests,
aria
n
)nformado
on
s
Rules
ms'
pubfia Ru}e 83 of the
Car mission not be disdased weer the
the
b
submitted
n
informatio
that
n request
which a person can make a
a ratwiq be made un51 a t~equest for
FOlA.That rule states that rm d~e~ermina6on as to the validity ofsuch
y. no response to a request that in6~nation rat
disdosur~e of tl~e information ~usder the FOIA is received. Ar~cord"ux,~
to dlsdosure under the FOIA Is received. if
r
urm!
a
be
give~t
will
or
teary
be disclosed ~tttder the FOtA is
not be d~sdosed under the FOIA,
won
that
request
written
ya+ desire an admawtedgmer~t of receipt of your
envelope.
sell
-adder
stamped,
a
with
~ogefher
ice,
duplicate
a
provide
please

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 19 of 24

E. Authority for Solicitation of tnfortnatlon


requiring produGioo of information is
Persons Directed to Supply nfamaGon Pwsuant to Subpoena. The authority For
mandatory, suBject to the valid assertion
set fiorth in the subpoena. Disclosure of the infonnalion to the Cortunission is
of any lrgal csght or privilege you might have.
provisions authorizes the
Persors Requested to Serpply Jnfamation Vokmtarify. One or more ofthe following
Securifies Act of 1933; Section 21 of
Commission to sopat the tntomation requesteck Sections 18 andlor 20 of the
of 1939; Section 42 offhe Investrnent
the Securities Exchange Act of 1934;Section 321 of Use Truss Indenture Act
of Ure
17 CFR 202.5.
and
of
1940;
Act
Advisers
t
the
inveshner~
of
209
Section
940;
i
of
Company Act
is
Comm'
P~
Y~
volur~uY ~
requested i~fomw6on to tl~e
F. Effect of NotSupplying InfirmaHon
the subpoena,the
Pe~sais Dirncted to Supply l~kxmatlon Pursuant~o Subpoena. tf yrou tail to comply with
}au theneafier faal M
arM
is
obtained
order
an
H
sufi
so.
do
to
you
requiring
order
court
Commission may seek a
of
in addition, if the
couR
contempt
for
sanctions
minal
artd/orcri
W
avd
supply ttie infamaGon, you may be subject
Compatry Act of1940, arxi/or
subpoena was issued pursuantto the Securities Exd~ange Act of 1934,the Investrnent and
testify,or~ aruwer
to attend
the Irnesbnent Adv+sers Act of 1940.and if you,wiftwetjtut case,fad w refuse
ntt cartq~Gance with
words
other
and
a,
m~torand
deuce.
Papers.
bodcs~
pr~od~e
to
or
i~iHD.
anY la~u~
ned /or a term pf
arimpriso
X1,000
than
more
fined
not
and
a
m~
of
guilty
found
be
the subpoena, you-may
not more than one yrear, or both.
Persons Requested to Supply lnlamation Vohm~rifj:T here are no direct sanctions
failing to provide all or any part of the regt~ed a~fomratioa

and thus no direct elfeds fior

G. Principal Uses of ~nformatlon


in
to determine wt~her any
The Commission's principal purpose in so~dting the iMarna~n is to gather facts eclat
laws or tides for which
securtties
fEderal
of
the
provisiat
arty
b
vto~abe
about
is
or
vlo~eg,
is
viotabed.
has
person
of~QAunidpal
rotes
the
s
and
exchange
secuti~es
of
~
n~les
stkM
a~dtorily~
t
an
the Commission h~
or noes. lnfornation
Securi~es Rulemalcing Board. Facts developed may. however,oons6tute violations of other laws
age~far~M proceedings. Unless tl~e Cron or Rs staff
provided maybe used in Commission and
sin,
d not a~trme that the Commission or its staff acq
explcidY agrees to the contrary in writitlg. You
n
ri9M.
of
a
~Y
reservatio
.
dMcJ~
re4uest,
undeistacs
Posif~,
anY
with,
agrexs
or
or
ors
to,
accedes
n's receipt, ase,
oUser statement that tx~rporfs, or may be deemed,to be or to relied a tirrrihation upon Ute Commissio
law,of infotrriation ptnvided.
w+th
disposidorf. trartssfier, or retention,in aocor
H. Routine t)ses of Mformation
govemrt~e~ agenaes~ Particx~larly United Stakes At~neys
The Commission often makes ifs files evadable ~o
do sod agencies
arzd st~~ prosecutors. There is a 6keChood that~supp}ied by you will be made evadable
tal ages is. in
where appropriate. YVhedter or not the Carimissron makes ~s files ava~bfe to otfr~r govemmer~
general, a confidential matter between the Carunission and such~govemmerrtal agencies.
n iumished.

Set faith below is a Hst of tF~e routine uses which may be made of the informatio

thatthe secur~ya
1. To appropriate agencies, ernities, and pers~s when(a)d is suspected or confirmed has determined tt~t, as a
has been canprumised~(b)the SEC
cw~fidentiaP~ty ~intormatian in the system of
or property ir~berests, identity
~es~t ofthe suspected or confirmed compromise,these is a risk of harm to economic
{whether ma~tairted by
or
programs
systems
other
or
tlus
system
of
or
irrtegrity
security
Nye
theft or fraud, or hams to
disd~une made ~
the
and
(c)
n;
lnfamado
ed
wmpnanis
fhe
re!y
upon
the SEC or anotlter agency or entity)that
n with fhe SECS efforts Eo
in
such agendas, entities, and persons is r~easaiab~r necessary to assist connectio such harm.
or remedy
respond to the wed or confirmed comprarase and prevent, minimlze~
self-regulatory organiza~ons; and
2. To other federal,state, Local, or foreign law e~a~o~erd agendas;securities
or law enface~r~nt a~itl~ with the SEC.
foreign financial regulatory authorities to assist in or caond'mafe reg~datory
that are registered with the SEC,the
3. Ta na6on~ sea~ritees exdiaru~es and na8onal seau~es assodations
Corporation; Use Public Co~any
Protection
imes~or
Seauilies
Ure
Hoarci;
ng
Municipal Securities Rulemaki
not limited toy the Board ~Govoemors of
but
ir~duding~
.
Accaur~ing ~versi~M Board;the federal b~ldc~g
the Federal deposit Insurance Corporation:state
the Federal Reserve System. Use Comptro~er ofthe(:utrency. and
s of a foreign governmentin won with
securities regulatory agenaes or orc~anizat+ons; or regulatcxy aukhoritie
li6es.
responsbi
nt
their regulatory or enforceme

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 20 of 24

4. By SEC personnel for purposes of imfestigating pass}ble violafi~ons af, or to conduct investigations authorized by,
tFte federal securities laws.
5. to any proceeding where the federal securitles laws are in issue or in which the Commission, or past or present
members ofits staff, is a party or ott~wise involved 'm an official capaaty.
6. In connection w+th proceedings by the Commission pursuant to Rule 102(ejof itg Rules of Practice, 17 CFR
201.102(e).
7. To a bar association, state accoun~r boarri, or other federal, state, lopl,a foreign Licensing or oversight
authority. a professions association or sel~nagulatory authority to the ex6ent thatit performs sim~az functions
(inducting the Public Company Accounting Oversight BoarcJ)for investigations a possible disaplinary action.
8. to a federal, shale,local,fibal, ~oregn, or ir~mationai agency, if necessary Ao obtain informatlon relevant to Use
SECS deasio~ concemir~g die hirirg or r~entlon of an ernpbyee; the issuance of a security clearance; the letting of
a conbrac~ a the issuance ofa fie,grant, or att~er benefd.
9. To a federal, stabs,local, ttibat. fo~ign, or ir~emaGonai agency at respa~se ~o ds request far information
concemit~g the Firing or retention of an employee:the issuance of a security deara~noe; the reporting d an
inv~estiga6on of an employee; tl~e I~ting ofa oontrac~ or the issuance of a boense.9raM, or other benefd by the
9 ~~Y.b the exFettt tFtat the iniwmation is relevant ark necessary ~01he requesdrtg agency's decision on
X4
the mater.
70. To produce staunary descriptive secs and ar~ytical sties,as a data souroe for management infonna6on,
in support atthe function for which ~e records are collected and maintained a Oor related personnel management
!unctions or manpower studies: maY also be used to t~espond to general requests for statistical information (without
personal identification of indivtdualsj tattler ~e Freedom of Information Act
masher,spew counsel,or other individual or ertt~y tF~ is appointed by a cbuR of
11. To arhr trustee,
cortPetent won,or as a resuR ofan agree~r~e~ between tl~e parties in corx~action vath litigation or
admbiishative proceedings invohring ~~dviolations of the federal se~x~ri~es laws(as defined 6~ section
3(aj(47)ofthe Securities E~ccf~ange Act d 1934. i3 U.S.C. 78c(ax47))or purs~rt4o the C~ommissia's Rules of
of Fair Fund a~ui Disgorgement Plans, l7 CFR
Pract~, 17 CFR 201.10 900athe Corrm~asion's
,~other individual or entity is
201.1100-ti06, ar otherwise. where such hum,~ceiver, master, special
functions with respect boy or as a tee of,the perxtu~g action or
specifically designated to perform
t by ripe Coovni~on ofthe federal securities laws
proceeding w in wnnedion with the admanstra5on and en
or the Commission's Rules of Practice or~ Ru1es of Fair Furzd and Disgorgement Plans.
12. To any persons during Ua course warty inquay,ewvnination, w(nv~gatiott conducted by the SEC's staff, or in
conr~edior+ with dull Gtigatian. H tl~e staff has reason ~o believe that tl~e person!otMtam the record is dished may
tt~enein, and tlwse matters appeased to be relevant at the time to
have further information about the mattes
the subject matter ofthe inq~dry.
i3. To ink,grate,experts,conhadas,and others who have been engaged by the Comm'~on to assist in
the performance ofa servk:e retaEed to this system of records arsd who need access ba the cords for the purpose of
of its pro9~,~~xJ byP~~R9
.
~
assisting the Commission ~ the effi~ent
steno9rap~ic. or data analysisfun~ons,a by t~eproduction ofteoads by elecho~dc orother means. RedpleMs of
these riecords shall be required Eo comply v~th the requ~eme~tts of the Privacy Act of 4974,as anended~ 5 U.S.C.
552x.
14. In reports published by the Commission purswsnt Oo authortty gr~ted in tl~e federal securities laws(as such term
is defined in section 3(ax47j of the Securities F~achange Act of1934,15 U.S.C.78c(aj(4~), which ~thnrity shall
inducts. but not be Grnited to, section 2t(a)ofthe Severities Exchange Act of 19Ci4, 13i1.S.C. 78u(a)).
15. To members of advisory oomrri~bees that are crea6ed by the Cornmiss~ or by Coru,~ress to render advice and
recanmendatians to the Commi~n or to Congress,to be used solely in co~u~ction wiU~ their official designated
functions.
to
76. 7o any person who is or has agreed ~O be subjeato Use Commission's Rules oEConduct, 17 CFR 200.735-1
the
federal
securities
of
vida6ons
pile
of
Commission
the
by
on
irw
the
M
a
and
who
735-18,
200.
in the
torus {as such term is defined in sectiar 3{a~4~ ofthe Securities F~achange Act of 1934, 15 U.S.C. 78c(a~47)),
preparation or conduct of~forceme~ ac~Ors bro~gM by the Commission for sect via~ations, or otherwise in
vent~~gu~tory turu~ions under the ~ederat securities larws.
oonnec~ion with the Corrurrission's e

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 21 of 24

77. To a Congressional office from the record of an individual in res{mnse to


made at the request of that individual.

an inquiry from the Congressional office

relating Eo particular Registrants and


78. To members of Congress,the press, and the public in response to a~quiries
their activities, and other mattefs under the Commission'sjurisdiction.
lavers as provided
t9. To prepare and palish intomiation relating to vio~atiors ofthe federal securities
78c(a)(47)), as amended.

in 95 U.S.C.

20. To respond to subpoenas in any lidgatan or other proceeding.


21. To a trustee in banlwptcy.
r reporting agency or
71. To ar~y govemmenhal agency,9ovemme~tat or private codeckon agent,consume
for caltecbon,
c~mmeraaf repwtin9 ~~Y~ governmental or private employer ofa debtor, w any other person,
or administrative wage
oNset,
re[und
tax
of~et,
salary
federal
offset,
ative
ac~ninistr
by
collection
including
gs.
garnishment,of amourns owed as a result of Commission avd or administrative proceedin
*****
cap beer assist sma~ businesses. ff you
Smal!Business Owmeix The SEC always welcomes comrn~Ms on how ~
kderal
sea~es reputations as tfi~y atfed smap
abaA
s
comment
or
questions
have
or
an,
infom~ati
would 1'ke more
Division of Corporation Finance, at 202the
SECS
PoGcy,+n
Business
Small
of
Office
businesses, please corrtact the
You
can contact the Smatt Business
the
5EC~
of
ou~de
~
someone
551-3460. tf you would priekr to camment
The
t Ombur~nan at http://wwwsbagov/ambudsman or toll free at886-REG-FAIR.
Regulatory Enfo

Ombudsman's office receives c~ne~ts fpm s~na~ businesses artd a~ra~aUy ew~lua6es
activities for their responsiveness to Uie spedal needs ofsnap busuess.

6ederal agency enforcement

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 22 of 24

Page i of 1

UPS CampusShip: Shipment Labe[

UPS CampusShip: VewlPrint Labei


d
package. Select the
1. Ensure there are no other shipping or tracking labels attache to your
not support this function
does
browser
your
If
Note:
appears_
that
box
dialog
print
the
Print button on
select Print from the File menu to print the label.
Pouch. If you do
in
2. Fold the printed label at the solid line below. Place the label a UPS Shipping
label.
entire
the
over
tape
shipping
plastic
not have a pouch, affix the folded label using char
3. GETTING YOUR SHIPMENT TO UPS
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Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 23 of 24

Your package has been delivered,


Delivery Date:

Tuesday, 01/26/2016

Delivery Time:

09:44 AM

At the request of SEC ATLANTA REG OFFICE, this notice is to confirm that following
shipment has been delivered.

Shipment Detail
Tracking Number:

Ship To:

1ZA3749A0197764I68
Alex Rue, Esq. for A. Tracy
AlexRueLaw, LLC
4062 PEACHTREE RD NE
ROOM A
ATLANTA, GA 30319
US

UPS Service:

NEXT DAY AIR

Number of Packages:

Weight:

0.5 LBS

Delivery Location:

FRONT DESK

Signed by:

MCCONNEHEAD

Reference Number 1:

A-03672

aGetthe UPS My Choice app for Facebook

~ Download the UPS. mobile ap

O 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the

Case 1:16-mi-00041-WSD-CMS Document 1-9 Filed 06/15/16 Page 24 of 24

color brown are trademarks of United Parcel Service of America, Inc. All rights
reserved.
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Confiact UPS

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 1 of 24

EXHIBIT H
Adam Tracy subpoena package dated February 11,2016 and the United
Parcel Service proof of delivery.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 2 of 24

UNITED S:1'ATES
S~;C;i.Tl~i"I'if:;S ,~lNL7 ~XC~~ANCrI C;C)MMISSION
ATLANTA REGIONAL OFFICE
950 East Pads berry Road,N.E. Suite 90U
Atlanta,. Georgia 30326-1382
Telephone: (404)842-76$0
F'acsimite; (~04}842-7633

Edward H.Saunders
senior Counsel

February 11,20X6
VIA E-MAIL,
alex~cr~,alexruelaw.cnm
VIA UNITED PARCEL STRVICE
Adam S. Tracy', Esq.
c% Alex Rue, Esq.
AIexTZueLaw,LLC
4060 Peachtree Road, Suite D511.
Atlanta, Georgia 303 X9
lie:

In The Matter of Sonant Communications Corp., and Certain Uther Issuers(A-03672

Dear Mr. Tracy:


The staff ofthe U.S. Securities and Exchange Com.missioii is conducting an investigation
in the matter identified above. The enclosed subpoena has been issued to you as part ofthis
investigation. 'I'he subpoena xequires you to provide swarm testimony. Please read the subpoena
and this letter carefully. This letter answers same questions you may hive about the subpoena.
You should also read the enclosed PLC Fon~a 1662. You must comply with the subpoena. You
may be subject to a fine if you do nvt. We have also included a Background Questionnaire form.
Please complete the enclosed ~`orm and return it to ins pr ox to your scheduled testimony.
Testi in
Where and when da 1 testify?
'The subpoena requires you to come to the Atlanta office of the United States Securities
and Exchari};e C~~xunzssion, 950 East Pa4es Ferry Rc~~cl, N.r. Suite 900, ,Eltlanta, CJeorgia 3t)3261382 on Tharsclay, February 1~3, 201.6 at 93U a.m. to testify under oath in the matter identified
azY the subpoena.
Other I~n~~rtant Infa~rmati~n
YVyiat tiv ll the C'vm~niss~ir~rr dv with the tes7irnorry I~~~oviile?

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 3 of 24

Aaam S. Tz~acy, Esc.


k'ebruaxy 11,2016
Page 2 of2
The enclosed SEC Fonn 1662 includes a List of Koutine 1Jses ~f information provided to
the Commission. This form has other important information for you. Please read it carefully.

fias the Commissi~~n determined that anyone has dine anything wr~n~?
This investigation is anon-public, :fact-finding inquiry. We are trying to determine
whether thexe have been any violations of the federal securities laws. The investigation and the
subpoena do not mean that we have concluded that you ox anyone else has broken the law. Also,
the investigation does .not mean that we have a negative opinion of any person,entity or security.
Important Policy Conce~ning Settlements
Please note that, in any matter iii which enforcement action is ultimately deemed to be
Warranted, the Division of Enforcement will not recommend any s~ttlezxaent to the Commission
unless the party wishing to settle certifies, under penalty ofperjury, that all documents respozisive
to Commission subpoenas and formal and informal document requests in this matter have been
proauc~d.
I have read this letter; the subpoena, artd the SEC Form .166.2, but 1 still have questions. What
shorticll coo?
If you have any other questions, you may call z~1e at(404)842-7G30.
Sincerely,

Edward ~I. Saunders


Senior Counsel
I7ivisi~r~ of Enforcement

Enclosures:

Subpoena
Background Questionnaire
SEC Form 1662

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 4 of 24

SUBPOENA

iTNITED STATES OF AM~RICA


SFCtJRITIES AND EXCHANGE COMMISSION
In The Matter o~Soi~ant Communications Corp., and Certain Other Isst~ers._~A-03G72 ,
Ac~~un S.'l'racy, }3sq.
c10 Alex Rue,Esq.
Ale:cRueLaw, T.LC
X060:Peachtree Road, Suite D511
Atlanta, Georgia 30319

Yt)U MUST''T':ESTIFY before officers ofthe Securities and Exchange Commission at the place,
date and time specil.zed below: United States Securities and Exchange Commission,950 East races
ferry Road, N.E., Suite 9Q0, Atlanta, Georgia 30326-X382 on Thursday, February 18,2016 at 9:30
a.m.

I~"EllERAL LAW RFQCIIRF.,S YOI7 T()COMPLY WITH THIS SUBPOENA.


Failure to c~lnply may subject you to a fine and/or imprisonment.

Hy:

~~
Edward 1I. Saunders
Senior Counsel
:Division o~ F.,n.ft~rce~nent

--

Date: Febniary 11, 2016

T am are csfficer ofthe Sectuities anti Exchange (~'o~ntttission ar~tltorized to issue subpr~enas in this
matter. 7'he Securities and Exchange Cornr~nission has issued a formal order authori~in~; thzs
i.nvestigatiori under Section 2{){a)ofthe Secririties Act of 1933("Securities Act")a~~.d Section 21(a)
ofthe Securities Exchange t~et of 1934. The Commission leas also issued an Order of Examinatiotl
lulc~er Se;ctior~ 8(e} o~'t}~e Secur.it.ies .Act.

NO"]'iCk;"I'C)1~U17-N[3SS

if you ciairn a tivitness fee or mileage, submit this subpo~;a wit~~ the claim vouc}~er.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 5 of 24

~3ACKGROUND ~,7U.ESTI()NNAIRE
Please respont~ to the following questions in the space proviciecc. If yo~~ neccl acltiitional
space for any response, you may attach adciitionnl pieces of paper.
Today's dale:
1. What i.s your. full z~.axne?

2. I-lave you ever been known by any other Y~ame? Yes _ No ,_


If yes, list each such name and the periods)in which you were known by that name.

3. Date and Place of Birth?

4. Country of Citicexiship?

5. Marital Status? Married _ I:)ivorced ,_ Single .___,


If yotY have ever been married, state for each naarrzage:(i) the dates) o~ the znarria~;e;
(ixj the name of your spouse; (iii) your spouse's birth name,ii` diLlerent; {iv) your
spouse's age; and (v) your spouse's occupation.

b. List the names, ages a~zd occupations of your children, if airy.

7. .List all residences yot~ occ~~~ieci at aay time during the .cast [three] years, inclt~di~zg
vacation. homes, bcginniY~~ Wirth your current residence. Igor each residence, state fhe
addzess, slates o:f residence, ~xzcl all telephone nuz~~bers (including facsimile ~zumt~~rs}
listed at that address.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 6 of 24

f3ackgiound Questionnaire
I.'a~;e 2
8. List all telephone ntirnbers ;Ynd telecomxaatiz~icatian services that ~~~ere in your name ar
that you rebularly used at any time: during; the last [three] years. Include all reside~rtial,
business, cellular, e.redit card, grid V4:)T~' telepl~ane nt~xxibers, including these listed in
your response to question 7, and services such as C'roo~;leVt~ice, Skype, video conference
services. Far each telephone number, state the :name{s) of tlae corresponding carriers)
(e,~., E1,'T'&I', Verizari, Vonage, Skype, etc.).

List the universal resoiuce locator(URL)for all websites or blo~;s that you established or
Cor which yoi~ had the authority to control content, at any time during the Last [three]
years. For each website, state the names)of the domain name registrar {e.~;. GoDaddy)
through which the URL was obtained, the natne(s) of all individuals or entities who
provided web site hosting or design services, whether the webs to colrtained primarily
business or persoxaal information, and the time period in which it was active.

lU. List all electronic mail addresses and social ~letworking acca~rnts (e.g. Facebook,
LinkedIn, Twitter, Instagram, Flickr, ~d CJOOgie+)that were in your natY~e or that you
regularly used at any time dtuing the last [tluee] years. Include all personal, business and
shared electronic mail addr~.sses and social networking accalrnts. Far each electronic
mail address and social ~ietw~rking account, state the n~rme(s) of the corzespa~7din~
intemet service pr~vicier(s)(e.g., Uoagle, Yahoo, A()L, ~r your employer), whether the
address was used prir~~arily fc~r business ~z' personal eorresponc~enee, and fhe time period
in which. it was active.

l 1. I_,ist all userna~n.~s .f~ ~~stant me:;s~3gang az~d s~niilar el~ctrc~nic canuli~rnication services
(including, but nc~t limited to, F3loomberg, Skye, whatsap~), ether than those listed ire
ya~iA~ res}~t~x~s~ to c~t~cstit~rt~s g t~u~augh 14, that were is~ yo~.tr zaal~ae c~~ that yc~l~ regulaz-ly
uscc~ at a1~y time iiurin~; ll~e last [three] years. ~ncl~ttle ail ~ers~~7~~1, buszs~ess anc~ shared
addresses. Foz- each i~sernamc, stag the names)of~the con}mur~ication service providet~
(e.~,r., ~"ro~7gle, ~t>I.,, ;tc.j, r~vli~ then the acitlress was used primarily for l~usinesy c~~.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 7 of 24

F3ackground Qutstiazmaire
rage 3
personal corresp~.ncierrce, the time period in which it was.active, lnd the name ofthe
software applications)(e.~., G7'alk,ICQ, MSN Messenger) you used to access it.

12. List all Internet message boards.. or discussion forums (incluciia~g, but not limited to,
Money Maker Group,I'NQT Message F3oard, Investors Hub Daily) of which you were a
member ox oii which you posted any messages at any tune during the last [three] years.
k~or each nyessage board or discussion ,fozum, state the service provider and your member
Warne ox identificatiaii information.

PU~iL:1:C;LY-MELD COMPANIES
13. Are you now, or have you ever been, an officer or director of any publicly-held
company? Yes _ No _,,,,
I F yes, idec~tify each such company,its CUSIP,and any exchange on which.it is or was
listed, and state y~urpositions (including membership an any Board ar management
commitfees) and the dates you held each position.

14. Are you now,or have yc~u ever been, a beneficial awn~r, directly or indirectly, offive per
cent or more of any class of equity securities of at~.y publicly held company? Yes _ No _.,
If yes, identify each such company,its CUSIP,and any exchange on which it is yr c~as
listed, and state the amount, percentage, and dates of your ownership.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 8 of 24

Background (~t~estionnaire
Pale 4
l?RIVI~,TELY-HELL)COMPANIES
15,

ire y~tr now,or have you ever been, a benel'zcial awnex, directly or indirectly, of auy
privately-held company (i.e., corporation, partnership, li~~iked liability company or other
corporate form)? Yes_ No~
If yes, identify each such company,including address and other contact information, and
state your positions and the dates you held each position.

1 ~.

you ever been, a manager or a member of any privately-held


company (i.e., corporation, partnership, limited liability company or other corporate
form)? Yes_ No~
Al'8 }'OLI XIOW, or have

If yes, identify eacl~z such company,including address and other contact inforrnatiotl, and
state your positions and the dates you held each position.

S~;C;L7Et1"T'I:ES ACCOUNTS
17. List all securities or brokerage accounts that you have held its your ylasne, individually or
jointly, at any time during the last [tluee] years. Include all foreign accounts, For each
such account, identify: (i) the brokerage firm;(ii) the location of~the bxanch where your
account is or was held;(iii) your broker;(iv) the type of account (i.e., cash, margin or
IRA);(r~~) the account number; and (vi) whether any person has ever held discretionary
authority or poti~~cr of attorney ovc;r the account; if so, name such pei:soza(s).

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 9 of 24

Back~rourid Questionnaire
Page 5
18. I ist all securities or brokerage accounts (iY~.c;luding foreign accounts), other than those
]fisted in yaux answer to question 17, in which you had any dzrect or indirect beneficial
interest at any lame during the last three.} years. For etch such account, provide the
information requested by question 17.

19. List all securities ~r brokerage accounts (including fore gxi accounts), ntl ~r than those
listed in your answer to question 17 or 18, over which you had any control at any time
during the last (three] years. For $ach such account,provide the information requested by
question 17.

~:3ANK ACC(}UNTS
20. List all accounts you have held in yaux name at any financial institution (i.e., b~annk, thrifi,
or credit union) at any time during fhe last [three] years. Include all foreign accounts.
For cacti such account, identify:(i)the financial institutzoi~;(ii) the address ofthe branch
at which your account is or was held;(iii) the type of'account (i.e., checking, savings,
maney.market or IRA);(~v)the account. nurnt~er .and.(vj whetllcr any person has ever had
discretionary authority or power of attorney over the account; ifso name such person(s).

21. List all accouiats at financial instituti~tis (neludin~; foreign accounts), other than those
fisted in your answer to question 20,in which you had any dzrect ar indirect beneficial
intez~~st at any time during the last [three] years. I~or each such account, provide the
information requested by question Z0.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 10 of 24

Background Questiotmaire
Pagc 6

22. List all accounts atfnancial institutions (including foreign accounts), otk~er than these
listed in yout~ answer to question 20 or 21,over which you had any control at any tiznc
during the last [tluee~ years. For each such account, provide the information requested by
question 20.

23, List any other accounts (including foreign accounts), other than those listed in your
answers to questions 20 through 22,that were held in your name,in which you had any
direct ox indirect beneficial intexest, or over which you b~aci any control, that you have
used.to transfer funds in the last [three].years, including, but not limited to, PayPal
accounts. For each such account, provide the information requested by question 20.

PRIUI~ PROC~EDTNGS
24. F~Iave you ever testified in arty proceeding conducted by the staff ofthe.Securities and
k3xchange Commission, a U.S. or foreign federal or slate agency, a U.S. or foreign federal
or state court,.a stock exchange,the Financial Industry Regulatory Authority("FTNItA")
~r any other self=regulatozy organization("SRO"), or in any arbitration proceeding
No
relntecl t~ securities transactions? Yes
If yes, for each such proc~.eding, identify:(i) the title cif the proceeding;{ii) the
organizatic~iz or agency; arid.(iii) the dates) on r~~~hich you testified.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 11 of 24

Background Quest arinaire


Page 7
25. Have you ever been de~~~sed i.n connection with airy court proceed n~:r Yes _ N~
If yes, for each 5l~ch proceeding, icle~.tify: (i) the title oftheprocceding, and (ii)the
dates)on which you wexe deposed.

26. have you ever been named as a defendant or respondent in any action or proceeding
brought by the SFC,any other LJ'.S. or .foreign federal agen~;y, a state securities agency,
FINRA,an SRO,or any exchange? Yes _ No _
If yes, fir eac~~ such proceeding,.identify: Othe title ofthe proceeding;(ii) the agency ox~
tribunal;(iii) the substance ofthe allegations;(iv)the outcome flf the proceeding; and
(v)the date o.f the outcome.

27. Have you ever been.a del~endan.t in zany action (other than those fisted in respo~ise to
question 26)alleging violations ofthe federal securities laws? Yes _ No
If yes, for each such proaeedi~ig, identify:(i}the title ofthe proceeding;(ii) tie court ur
tzxbunal; (iii) the outcome ofthe proceeding; and (iv) the date o#'the outcome.

28, ~Iav~: you ever. been a de. endruxt in any crirniz~.al ~raceedi~ag othez than or e inv~lvin~ a
minor tr~tffi~ offense? Yes iVo
If yes, for cauh such :proceeding,:identify:(i) thy. title: at't1~e proceeding; {ii} the court or
tribunal; (iiij the outcome ofthe proceeding; and.(iv} the date ofthe outcome.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 12 of 24

Bacl.ground Questie~nnaire
Page 8
EDUC~"~'IONAL HISTORY
29. Provide the requcsced information abaut each educational institution that you have
attended,, beginning with the most recent and working backward to the date that you.
campleted high school.

Name of Sohool
Siate

City

I~aies of Atte~Hlnnce: MontldYenr to T~dnntlJYear

Country

Zip Code

Dagree/Majnr

Mantb/Y~sr n I7e}~e~

Country

Zip Code

DegreelMajor

MondYeaz ofDegee

Country

Zip Cade

I)e~reelMejor

Month/Year ofI)eg~ee

Country

'Lip Code

Lkgrodfviajor

Monti /Year of Degtet

Name of School
Stetc

Ciry

Dates of Attendance; MonAYear ro MontlilYe+tr

Name of School
City

--~~-

State

Dates of Attendanoe: MonUJYear to MonUJYCaz

Name oC School
Clty

Spte

Dates oEAitendarice: MonthJYear to 3viontiJYear

30. Other than co~rses taken iii coa~nection wit}i institutions listed in response to question 29,
list any' s~:curitaes, accoulxtin~ or business related courses taken siYice l~igli school. For
~aclz such cornse, idea#iiy the date that the course was cc~~n}~leted and the nine a.f` khe
institution or organisation that offered t~~ course.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 13 of 24

~3ackground Questio~uxaire
Page 9
t'kOf~'~~SSIONAL LI'CENS~S/CLUBS
I. DO 'Olt IlOICl, ~r have

you ever held, any profess anal liceiYSe? Yes_ No

If yes, for each sucks license,identify:()the license number or attorney bar number;
(ii)the licensing organization;(iii) the date the license was awarded;(iv)the date such
license terminated, iappl cable;{v)the dates)of any disciptin~y proceeciing(s) against
you: and (vi) the outcome of any such disciplinary proceeding (e.g., repximand,
suspensiol, revocation).

32. Are you, or have you ever teen, a member of any professional or business club or
organization? Yes _ No _
If yes, List far each:(i)the name ofthe club or organization;(ii) its address;(iii) the
dates) of your membership; axed (iv)service in any govearnance roles (e.g., beard
member,committee member, etc.) including title and dates of service.

33. Are you, or }x~~ve yutx been in the last [three] years, a member ~f may social clubs,
cha~ities or nonprofit organizations? Yes u No
If yes, list for each:(i) the name ofthe social club, charity or nun~rofit organization;
(ii) its address;{iii) tl~e c3ate(sj cif yorir t7lembershi~; and (iv} service in any governance
roles (e.g., k~oard member, co~.r~xriitt:ec;.rnernt~~r, etc.)including title and dates of service..

EMPLO~MEN"l~ HISTORY
34. 11re yoLr, ~r have you ever been, ~i employee of a broker, dealer, investment adviser,
in~%estment coanpany, n~t~z~icipal securities dealer, municipal a~ivis~~r, transfer agent, or

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 14 of 24

Background Questioxa.naire
Page 10
nationally xecagnized st~~tistical rating organization? Yes~ No
If yLS, list for each:(i) the jurisdiction Ufthe entity; (ii} your CRS nuxabcr; (iii) the
entity's CRI)number,(iv)the entity's SEC File number;(v)the entity's CIISIP number;
and (vi) any foreign registration infornnation similar to the foregoing.

35. State your employment activities, beginning with the prese~tt and working backward to
the date that you completed high school and attach a recent copy of youx xesume or
cuzx~iculum vitae.

Employer's NamcJ&elf-Employment
.,..._.....~._......._.....~.w........~_
Biriploy~r's St~v'et Address
City

_._

_._,......._....~.._................~_...._.._........~............~

T~I~p6one Nwr~Uer
Stater

Country

`Lip Codc

'Pstle

Dates ofEmployment

Supervisor~~

Title

llates ofemployment

Supervisor

Dafes

Supervisor

Dates of Empioyrnenl

Supe.rvisur

Emptoy~7's Neme/Self-Employment
'Ptlepfione Nnmbex

Employer's Street Address


Country

'Lip

City

State

TiNe

Dates ofEmpfoymant

Supervi3or

title

37rtes off?mpioyment

Supervwor

Pitte

Dates of Fm~loyment

Supervisror

7)ate3 oC~:mploytuent

~u~vrsor

~~~~

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 15 of 24

Background Questionnaire
Page 11

Employer's NamcJSclf-Employment
Telephone Number

Timptuyer's Sircet Addmxs

lap Cock

Counhy

City

Stsie

Tiile

Dates ofEm to

ent

Sapervisa

TiBo

Dates ofEmploymwt

Supwisor

'1'itte

IJates of~mploymont

Supervisor

'Citlo

Uatcs of6mploymont

Supatvtsor

Employer's NnmelScJf-Employment
Telephone Nwnbcr

Fanployer's SVcet Address

Z.ip Code

Country

City

Stmte

Title

Uetas ofhmpluyment

Supervisor

'I'ille

Ustas ofEmployment

Supervisor

Title

Date~q of l'mployment

Supervisor

Titic

Dates ofEmploynxa~t

Su~crvisot

--_~.,.~_W____.
Employer's Name/Self-Employment

___._..__..._......

.~~____

7'alupiione Number

F.mplAyct's 5treet:Addrese
City

Tidy

State

Country

Zip Code

Dates ofEmpkymeot

Supervisor

Dates ofEmpioymd~t

5upervisor

Dates ofEni~itoymont
Detcs ofFmgloyment

Superviaar

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 16 of 24

Background Questionnaire
~'a~e l2

f~anployer's NamelSelf-I~:mpluyttivmt
1"elephvna Number

Employer's Sweet Address


Countiry

Zip Cock:

City

Skuto

Title

Dates ofLmploymont

Supervisor

Title

Dates ofEmployment

Supervisor

Title

Datcs ofEsmplpymeni

Supervixor

Titlo

Dates ofEmploym~nY

Supervisor

CONTINUE UI~ ADDITIONAL..SHEETS ~:~ N~G~SSAKY

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 17 of 24

S:C~aCURi7':IEfi ANll ~aXCHANGE COMMISSION


Washrngtoa,D.C.20549
Supglementat lnformatio~ for Persons Requested to Supply
[nformation Voluntarily or Directed to Supply Information
Pursuant to a Comnussion Sabpaena
A. false Statements and Documents
Section 1001 of Titie 18 of the United States Code provides as follows:
[W]hoever, in any matter within the jurisdiction of the executive, legislative, orjudicial branch of the
Government of the United States, knowingly and willfully-(1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact;
(2) makes any materially false, fictitious, or fraudulent statement or representation; or
(3) makes ar uses any false writing or document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry;
shall be fined under this title, imprisoned not more than 5 years .. , or both.
8. Testimony
If your testimony is taken, you should be aware of the following:
1. Record. Your testimony will be transcribed by a reporter. If you desire to go o9f the record, please indicate this to
the Commission employee taking your testimony, who will determine whether to grant your request. Tha reporter
will not go off the record at your, or your counsel's, direction.
2.

Counsel. You have the right to be accompanied, represented and advised by counsel of your choice. Your
Counsel may advise you before, during and after your testimony; question you briefly at the conclusion of your
testimony to clarify any of the answers you give during testimony; and make summary notes during your
testimony solely for your use. If you are accompanied by counsel, you may consult privately.

If you are not accompanied by counsel, please advise the Commission employee taking your testimony if, during the
testimony, you desire to be accompanied, represented and advised by counsel. Your testimony will be adjourned
once to afford you the opportunity to arrange to be so accompanied, represented or advised.
You may be represented by counsel who also represents other persons involved in the Commission's investigation.
This multiple representation, however, presents a potential conflict of interest if one client's interests are or may be
adverse to another's. If you are represented by counsel who also represents other persons involved in the
investigation, the Commission will assume that you and counsel have discussed and resolved ail issues concerning
possible conflicts of interest. The choice of counsel, and the responsibility for that choice, is yours.
3.

Transcript Availability. Rule 6 of the Commission's Rules Relating to Investigations, 17 CFR 203.6, states:
A person who has submitted documentary evidence or testimony in a formal investigative proceeding
shall be entitled, upon written request, to procure a copy of his documentary evidence or a transcript of
his testimony nn payment of the appropriate fees: Provided, however, That in a nonpublic formal
investigative proceeding the Commission may for good cause deny such request. In any event, any
witness, upon prnpPr identification, shall have the right to inspect the official transcript of the witness'
own testimony.

If you wish to purchase a copy of the transcript of your testimony, the reporter will provide you with a copy of the
appropriate form. Persons requested to supply information voluntarily will be allowed the rights provided by this rule.
4. Perjury. Sectir~n 1821 c~i Title 98 of the United States Code provides as follows:
Whoever
{1)having taken an oath before a competent tribunal, officer, or person, in any case in which a law of
the United States authorizes an oath to be administered, that he will testify, declare, depose, or certify
truly, or that any written #estimony, dedaration, deposition, or certificate by him subscribed, is true,
willfully and contrary to such oath states or subscribes any material matter which he does not believe to
be true; or

SEC 1662(09-14)

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 18 of 24

(2)in any declaration, certificate, verification, or statement under penalty of perjury as perrnitted under
section 1746 of title 28, United States Code, willfully subscribes as true any material matter which he
does not believe to be true;
is guilty of perjury and shall, except as otherwise expressly provided by law, be fined under this title or
imprisoned not mare than five years, nr both.
5. Fifth Amendment and Voluntary Tesfirr~nny.ln formation you give may be used against you in any federal, state,
local ar foreign administrative, civil ar criminal proceeding brought by the Commission nr any other agency.
You may refuse, in accordance with the rights guaranteed to you by the Fifth Amendment to the Constitution of the
United States, to give any information that may tend to incriminate you.
If your testimony is not pursuant to subpoena, your appearance to testify is voluntary, you need not answer any
question, and you may leave whenever you wish. Your cooperation is, however, apprecia#ed.
6. Formal Order Availability. If the Commission has issued a formal order of investigation, it will be shown t~ you
during your testimony, at your request. If you desire a copy of the formal orcier, please make your request in writing.
C. Submissions and Settlements
Rule 5(c) of the Commission's Rules on Informal and Other Procedures, 17 CFR 202.5(c), states:
Persons who become involved in ...investigations may, on their own initiative, submit a written
statement to the Commission setting forth their interests and position in regard to the subject matter
of the investigation. Upon request, the staff, in its discretion, may advise such persons of the
general nature of the investigation, including the indicated violations as they pertain to them, and
the amount of time that may be available far preparing and submitting a statement prior to the
presentation of a staff recommendation to the Commission for the commencement of an
administrative or injunction proceeding. Submissions by interested persons should be forwarded to
the appropriate Division Director ar Regional Director with a copy to the staff members conducting
the investigation and should be clearly referenced to the specific investigation to which they relate.
In the event a recommendation for the commencement of an enforcement proceeding is presented
by the staff, any submissions by interested persons will be forwarded to the Commission in
conjunction with the staff memorandum.
The staff of the Commission routinely seeks to introduce submissions made pursuant to Rule 5(c)as evidence in
Commission enforcement proceedings, when the staff deems appropriate.
Rule 5(fl of the Commission's Rules on Informal and Other Procedures, 17 CFR 202.5(t~, states:
In the course of the Commission's investigations, civil lawsuits, and administrative proceedings, the
staff, with appropriate authorization, may discuss with persons involved the disposition of such
matters by consent, by settlement, or in some other manner. It is the policy of the Commission,
however, that the disposition of any such matter may not, expressly or impliedly, extend to any
criminal charges that have been, or may be, brought against any such person or any
recommendation with respect thereto. Accordingly, any person involved in an enforcement matter
before the Commission who consents, or agrees to consent, to any judgment ar order does so
solely for the purpose of resolving the claims against him in that investigative, civil, or
administrative matter and not for the purpose of resolving any criminal charges thai have been, or
might be, brought against him. This policy reflects the fact that neither the Commission nor its staff
has the authority or responsibility far instituting, conducting, settling, or otherwise disposing of
criminal proceedings. That authority and responsibility are vested in the Attorney General and
representatives of the Department of Justice.
D. Freedom of Information Act
The Freedom of Information Act, 5 IJ.S.~. 552(the."FOIA"), generally provides for disclosure of information to the
pubiia. Rule 83 of the Commission's Rules on fnformatian and Requests, 17 CFR 200.83, provides a procedure by
which a person can make a written request that information submitted to the Commission not be disclosed under the
FOIA. That rule states that no determination as to the validity of such a request will be made until a request for
disclosure of the information under the FOIA is received. Accordingly, na responsa #a a request that information not
be disclosed under the FOIA is necessary or will be given until a request for disclosure under the FOIA is received. li
you desire an acknowledgment of receipt of your written request that information not be disclosed under the FOIA,
please provide a duplicate request, together with a stamped, self-addressed envelope.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 19 of 24

E. Authority far Solicitation of tnformatian


Persons Directed to Supply Informt~fion Pursuant to Subpoena. The authority for requiring production of information is
set forth in the subpoena. Disclosure of the information to the Commission is mandatory, subject to thr~ valid assertion
of any legal right nr privilege you might have.
Persons f?equasted to Supply Information Voluntarily. One or more of the following provisions authorizes the
Commission to solicit the information requested: Sections 19 and/ar 20 of the Securities Act of 1933; Section 21 of
the Securities Exchange Act of 1934; Section 321 of the Trust Indenture Act of 1939; Section 42 of the Investment
Company Act of 1940; Section 209 of the Investment Advisers Act of 1940; and 17 CFR 202.5. Disclosure of the
requested information to the Commission is voluntary on your part.
F. Effect of Not Supplying Information
Persons Directed to Supp/y Irifonnation Pursuant to Subpoena. If you fail to comply with the subpoena, the
Commission may seek a court order requiring you to do so. if such an order is obtained and you thereafter fail to
supply the information, you may be subject to civil and/or criminal sanctions for contempt of court. in addition, if the
subpoena was issued pursuant to the Securities Exchange Act of 1934, the Investment Company Act of 1940, and/or
the Investment Advisers Act of 1940, and if you, without just cause, fail or refuse to attend and testify, or to answer
any lawful inquiry, or to produce books, papers, correspondence, memoranda, and other records in compliance with
the subpoena, you may be found guilty of a misdemeanor and fined not more than $1,000 or imprisoned for a term of
not more than one year, or both,
Persons Requested to Supply Information Voluntarily.T here are no direct sanctions and thus no direct effects for
failing to provide all or any part of the requested information.
G. Principal Uses of hiformation
The Commission's principal purpose in soliciting the information is to gather facts in order to determine whether any
person has violated, is violating, or is about to violate any provision of the federal securities laws or rules for which
the Commission has enforcement authority, such as rules of securities exchanges and tha rules of the Municipal
Securities Rulemaking Board. Facts developed may, however, constitute violations of other laws or rules. Information
provided may be used in Commission and other agency enforcement proceedings. Unless the Commission or its staff
explicitly agrees to the contrary in writing, you should not assume that the Commission or its staff acquiesces in,
accedes to, or concurs or agrees with, any position, condition, request, reservation of right, understanding, or any
other statement that purports, or may be deemed, to be or to reflect a limitation upon the Commission's receipt, use,
disposition, transfer, or retention, in accordance with applicable law, of information provided.
H. Routine Uses of Information
The Commission often makes its files available to other governmental agencies, particularly United States Attorneys
and state prosecutors. There is a likelihood that information supplied by you will be made available to such agencies
where appropriate. Whether or not the Commission makes its files available to other governmental agencies is, in
general, a confidQntial matter between the Commission and such other governmental agencies.
Set forth below is a list of the routine uses which may be made of the information furnished.
1. Tc~ appropriate agencies, entities, and persons when (a) it is suspected or confirmed that the security or
confidentiality of infoRnatian in the system of rcards has been compromised;(b)the SEC has determined that, as a
result of the suspected or confirmed compromise, there is a risk of harm to economic or property interests, identity
theft or fraud, or harm to the security ar integrity of this system or other systems or programs (whether maintained by
the SEC or another agency or entity) that rely upon the compromised information; and (c) the disclosure made to
such agencies, entities, and persons is reasonably necessary to assisk in connection with the SEC's efforts fa
respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm,
2. To other federal, state, local, or foreign law enforcement agencies; securities self-regulatory organizations; and
foreign financial regulatory authorities ko assist in or coordinate regulatory or law enforczment activities with the SEC.
3. To national securities exchanges and natiana! securities associations that are registered with the SEC, the
Municipal Securities Rulemaking Board; the Securities Investor Protection Corporation; the Public Company
Accounting Oversight Board; tha federal banking authorities, including, but not limited to, the Board of Governors of
the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation; state
securities regulatory agencies or organizations; or regulatory authorities of a foreign government in connection with
their regulatory or enforcement responsibilities.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 20 of 24

4. ey 5EC personnel for purposes of investigating possible violations of, or to conduct investigations authorized by,
the federab securities laws.
5. In any proceeding where the federal securities laws are in issue or in which the Commission, or past ar present
membars of its staff, is e party or otherwise involved in an official capacity.
6. In aannectian with proceedings by the Commission pursuant to F2ule 102(e) of its Rules of Practice, 17 CFR
201.102(e).
7. To a bar association, state accountancy board, or other federal, state, focal, or foreign licensing or oversight
authority; or professional association or self-regulatory authority to the extent that it performs similar functions
(including the Public Company Accounting Oversight Board)for investigations or possible disciplinary action.
8. Ta a federal, state, local, tribal, foreign, or international agency, if necessary to obtain information relevant to the
SEC's decision concerning the hiring or retention of an employee; the issuance of a security clearance; the letting of
a contract; or the issuance of a license, grant, or other benefit.
9. To a federal, state, local, tribal, foreign, or international agency in response to its request for information
concerning the hiring or retention of an employee; the issuance of a security clearance; the reporting of an
investigation of an employee; the letting of a contract; or the issuance of a license, grant, or other benefit by the
requesting agency, to the extent that khe information is relevant and necessary to the requesting agency's decision pn
the matter.
10. To produce summary descriptive statistics and analytical studies, as a data source for management information,
in support of the function for which the records are collected and maintained or for related personnel management
functions or manpower studies; may also be used to respond to general requests for statistical information (without
personal identification of individuals) under the Freedom of Information Act.
11. To any trustee, receiver, master, special counsel, or other individual or entity that is appointed by a court of
competent jurisdiction, or as a result of an agreement between the parties in connection with litigation or
administrative proceedings involving allegations of violations of the federal securities laws(as defined in section
3(x)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47))or pursuant to the Commission's Rules of
Practice, 17 CFR 201.100 900 nr the Commission's Rules of Fair Fund and Disgorgement Plans, 17 CFR
201.1100-1106, or otherwise, where such trustee, receiver, master, special counsel, or other individual or entity is
specifically designated to perform particular functions with respect to, or as a result of, the pending action or
proceeding or in connection with the administration and enforcement by the Commission of the federal securities laws
or the Commission's Rules of Practice or the Rules of Fair Fund and Disgorgement Plans.
12. To any persons during the course of any inquiry, examination, or investigation conducted by the SEC's staff, or in
connection with civil litigation, if the staff has reason tU believe that the parson to whom the record is disclosed may
have further information about the matters related therein, and those matters appE+ared to be relevant at the time to
the subject matter of the inquiry.
13. To interns, grantees, experts, contractors, and others who have been engaged by the Commission to assist in
the performance of a service related to this system of records and who need access to the records for the purpose of
assisting the Commission in the efficient administration of its programs, including by performing clerical,
stenographic, or data analysis functions, or by reproduction of records by electronic or other means. t2ecipients of
these records shall be required to comply with the requirements of the Privacy Act of 1974, as amended,5 U.S.C.
552a.
14. In reports published by the Commission pursuant to authority granted in the federal securities laws(as such term
is defined in section 3(a)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)), which authority shall
include, but not be limited ta, section 21(a) of the Securities Exchange Act of 1934, 15 U.S.C. 78u(a)).
15. To members of advisory committees that are created by tha Commission or by Congress #o render advice and
recommendations to the Commission or to Congress, to be used solely in connection with their o~cial designated
functions.
16. To any person who is nr has agreed to be subject to the Commission's Rules of Conduct, 17 CFR 200.735-1 to
2D0.735-18, and who assists in the investigation by the Commission of possible violations of the federal securities
laws(as such term is defined in section 3(x)(47)of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a}(47)), in the
preparation or conduct of enforcement actions brought by the Commission for such violations, or otherwise in
connection with the Commission's enforcement or regulatory functions under the federal securities laws.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 21 of 24

17. To a Congressional office from the record of an individual in response to an inquiry from the Congressional office
made at the request aF that individual.
18. To members of Congress, the press, and the public in response to inquiries relating to particular Registrants and
their activities, and other matters under the Commission's jurisdiction.
19. To prepare and publish information relating to violations of the federal sacurities laws as provided in 15 U.S.C.
78c(a)(47)), as amended.
20. To respond to subpoenas in any litigation or other proceeding.
21. To a trustee in bankruptcy.
22. Ta any governmental agency, governmental or private collection agent, consumer reporting agency or
commercial reporting agency, governmental or private employer of a debtor, or any other person, for collection,
including collection by administrative offset, federal salary offset, tax refund offset, or administrative wage
garnishment, of amounts owed as a result of Commission civil ar administrative pracEedings.
~ ,r ~r * ,r

5ma/I Business Owners: The SEC always welcomes comments on how it can better assist small businesses. If you
would like more information, or have questions or comments about federal securities regulations as they affect small
businesses, please contact the Office of Small Business Policy,in the SEC's Division of Corporation Finance, at 202551-3460. If you would prefer to comment to someone outside of the SEC, you can contact the Small Business
Regulatory Enforcement Ombudsman at http://wvrw.sba.gov/ombudsman or toll free at 888-REG-FAIR. The
Ombudsman's office receives comments from small businesses and annually evaluates federal agency enforcement
activities for their responsiveness to the special needs of small business.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 22 of 24


Page 1 of 1.

UY5 CarupusShip: Shipment Label

UF'S CampusShip: ViewlPrint Label


1. Ensure there are no other shipping or tracking labels aftached to ~rnur package. Select the
Print button on the print dialog box that appears, Nnte: If your browser does nat support this fiunctian
select Print from the File menu to print the label.
2. Pori the printed label at the solid line below. Place the label in a UF'S Shipping F~auch. If you do
not have a pouch, affix 4he folded label using clear plastic shipping tape over the entire label.
3. GETTING YOUR SHIPMENT TO UPS
Customers with a Daily Pickup
Your driver will pickup your shipments) as usual.
Customers without a Daily Pickup
Take your package to any location of The UPS Storeff~, UPS Access Paint(TM) location, UPS Drop
Box, UPS Customer Center, UPS Alliances (Office DepotC~ or Staples) or Authorized Shipping Outlet
near you. Items sent via UPS Return Services(SM)(including via Ground) are also accepted at Drop
Boxes. To find the location nearest you, please visit the Resources area of CampusShip and select
UPS Locations.
Schedule a same day or fu#ure day Pickup to have a UPS driver pickup all your CampusShip
packages.
Hand the package to any UP5 driver in your area.
UPS Access PointTM
UPS Access PointTM
UPS Access Point7M
THE
UPS STORE
STORE
UPS
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THE UPS STORE
PIEDMONT RD NE
2625
NE
RD
PEACFiTREE
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ATLANTA ,GA 30324
ATLANTA ,GA 30319
A7LAN7A ,GA 30326

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Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 23 of 24

Johnson, Angela (Contractor)


UPS Quantum View <pkginfo@ups.com>
Friday, February 12, 2016 9:58 AM
Johnson, Angela (Contractor)
UPS Delivery Notification, Tracking Number 1ZA3749A0190719774

From:
Sent:
To:
Subject:

Your package has been delivered.


Delivery Date:

Friday, 02/12J2016

Delivery Time:

09:49 AM

At the request of SEC ATLANTA REG OFFICE, this notice is to confirm that following shipment has been
delivered.

Shipment Detail
Tracking Number:

Ship To:

1ZA3749A0190719774
Alex Rue, Esq.
AlexRueLaw, LLC
4060 PEACHTREE RD NE
ATLANTA, GA 30319
US

UPS Service:

NEXT DAY AIR

Number of Packages:

Weight:

0.5 LBS

Delivery Location:

INSIDE DELIVERY

Signed by:

SOBER

Reference Number 1:

A-03672

(~

~ :Download the UP5 mobile aop

Get the UPS My Choice apn for Facebook

O 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are
trademarks of United Parcel Service of America, Inc. All rights reserved.

Case 1:16-mi-00041-WSD-CMS Document 1-10 Filed 06/15/16 Page 24 of 24

All trademarks, trade names, or service marks that appear in connection with UPS's services are the
property of their respective owners.
Please do not reply directly to this e-mail. UPS will not receive any reply message.
For more information on UPS's privacy practices, refer to the UPS Privacy Notice.
For questions or comments, visit Con#act UPS.
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and you are instructed to please delete this e-mail immediately.

UPS Privacy Notice


Contact UPS

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 1 of 24

EXHIBIT I
Adam Tracy's February 18,2016 subpoena package and the United Parcel
Service proof of delivery.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 2 of 24

LJMTED STATES
SECURITIES AND EXCHANGE COMMISSION
ATLANTA REGIONAL OFFICE
950 East Paces Ferry Road, N.E. Suite 900
Atlanta, Georgia 30326-1382
Edward H. Saunders
Senior Counsel

Telephone: (404)842-7680
Facsimile: (404)842-7633

February 18,2016

VIA E-MAIL
alex alexruelaw.cozrx
VIA UNITED PARCEL SERVICE
Adam S. Tracy, Esq.
c%Alex Rue,Esq.
A 1exRueLaw,LLC
4060 Peachtree Road, Suite D511
Atlanta, Georgia 30319
Re:

In `The Matter of Sonant Communications Com.,and Certain Other Issuers(A-03672

Dear Mr. Tracy:


The staffofthe U.S. Securities and Exchange Commission is conducting an investigation
in the matter identified above. The enclosed subpoena has been issued to you as part of this
investigation. The subpoena requires you to provide sworn testimony. Please read the subpoena
and this letter carefully. This letter answers some questions you may have about the subpoena.
You should also read the enclosed SEC Form 1662. You must comply with the subpoena. You
may be subject to a fine if you do not. We have also included a Background Questionnaire form.
Please complete the enclosed form and return it to us prior to your scheduled testimony.
Please be advised that I have not received any documents responsive to the subpoena to
Securities Compliance Group, Ltd. dated November 3,2015. This failure to produce documents
has occurred despite seven conversations with your attorney over the last two and one half
months in which he assured me that these documents would be produced.
Testi in
Where and when do 1testify?
The subpoena requires you to come to the Atlanta office of the United States Securities
and Exchange Commission,950 East Paces Ferry Road,N.E. Suite 900, Atlanta, Georgia 30326-

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 3 of 24

tldam S."I`racy. Esq.


February I ~, 20I6
t'age 2 a~?
1.382 9n T~urs~ia~, March 3,2016 at 9:30 .i.m. to testify under oath in the matter identified on

the subpa~na.
~tli~r Import~~nf Inftar~~~~tio~~
~~'I7cxt tii~ill tl~e C'v~arr~is.sirar~ ~~iy ~+~i!{z Cite !c~titrr~rt~~ ~I;~tvvrtl~?

The enclosccl SAC ~"oec~1 16 2 inc:lucles a Lyst o'Routine Uses of information provicleci to
the Ca mission. "dais Farm }gas ot~~er irn~art~nt infarn titian far you.. Please read it carefully.

errs thc~ C:c~rrrmztsir~ c~ctc~rrt7zr~ecl ~'f~rr! crr7yc~rtc~ has clt~rze an~~tlrir~~ yurnr~g'?
`I"his investig~rtion is ~ nc~n-~~blic, fact-findiil~; inquiry. We are trying to cleterniine
whether tli~re have bye any violations ai'the federal securities laws. The investigakion and fhe
stibpaena da nat mec~ti that we have canclurle:d that you or anyone else has broken the law. fllsoa
the inve~ti~;atir~n c3c~es na1 m~a~a that we laa~r~ a negative. c~~inian o:f any person, entity car security.
lin~r~r~crnt Pr~lrc}J C."c~nc'~rnin~.Setticnients
~'l~as4 ante that, in any inatfier in tivh ch crrforcemcnt action is ultimately dce~axed to l~~
waanrante~, thr: Division at'~a1l~arcement will not recommend any settletxzent to the Cornmissinn
unless the party wishir~~; t~ settle cc;rtilies, unclear penalty of perjury, that all do4uments responsive
tc~ Cc7nznaissic~n subpoenas and ~orntal and informal document rc;quests in this matter have bEen
prod~.tced.
1 ~iuvc rend l~azs I~t~~r, tl~~x s~rb~3uet~Gl, anc~ ~t7e S.~'C" IYt~rnt 16t52, hu1.0 still Izc~ve ~~eertir~ns. ~h~r~
s1~~ulcl 1 ctc~?
if you have any other ~u~stions, you may call ~rn~ at {4Q4j 8~1~-7b30.
Sincerely,
~~~~.a~~
Edward H. Sunders
Senior C'aunsel
Division of'Enforcen~ent
Lnclasures:

Sub}~aena
Backgrouil~ Questionnaire
SI'C I~ortxi l(i~~

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 4 of 24

SUBPOENA

UNITED STATES OF AMERICA


SECURITICS AND EXCHANGE CUMM:TSSION
In The MHttcr ofSonant Communications Corp., and Certain Other Issuers(A-03b721
Adam S. Tracy, ~;sc~.
c/o Alex Rue, Esc.
AlexRuei,aw,LLC
4060 Peachtree Roacl, Suite D~ 11
Atlanta, Gear~ia 30319

YOU MtT~T 1:.~5'.I'IFX before officers ofthe Securities and ~xcl~ange Commission at the place,
date and time speciFed below: United Mates Securities and Exchange Commission,950 East Paces
I'~rry Road, N.E., Suite 900, Atllnta, Georgia 30326-138? on'Tl~ursday, March 3, 2016 at 9:30 a.m.

FE~3E1~L LAW REQUIRES YUU TO COMI'L'Y WITH THIS SI.~I3POENA.


I~ailur~ to caia~ply may subject yt~zi to a fine anriior im~~risc~nment.

By:

~~

,~.*~-C;~-~__,_.~._.._...

Date: I'ebn~ary 18, 2016

~;ciward ~-I. Saunders


Senior Counsel
Divisioia aIe nforcement

I aizi an oiiicer ofthe Securities and Exchange Cammissinn aut}xarir~d to issue subpaena~ in this
matter. '1"lie Securities and E cchange Commission has issued a formal order authorizing this
investigation under Section 20(a)ofthe Securities pct of 1933{"Sectrities Act-') and Section 21(a)
c~l~ the Securities Exc;ha~~ge het of 1934. The Commission .has also iss~ied an Under of E~a~nination
under Se~tic~rz ~3(~) of the Se~rities Act.

N07'ICI 7"U 1~V1'1"NE:SS:

tf yUU claun a witness f'ee or mileage, sii~mit t11is sut~~aoenwi wizl~ the claim voucher.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 5 of 24

BACKGROUND QUESTIONNAIRE
Please respond to the following questions in the space provided. If you need additional
space for any response, you may attach additional pieces of paper.
Today's date:
1. What is your full name?

No _
2. Have you ever been knovm by any other name? Yes`
If yes, list each such name and the periods)in which you were known by that name.

3. Date and Place of Birth?

4. Country of Citizenship?

5. Marital Status? Married _Divorced _Single


If you have ever been married, state for each marriage:(i)the dates} ofthe marriage;
(ii)the name of your spouse;(iii) your spouse's birth name,if different;(iv) your
spouse's age; and(v) your spouse's occupation.

6. List the names, ages and occupations of your children, if any.

7. List all residences you occupied at any time during the last [three] years, including
vacation homes, beginning with your current residence. For each residence, state the
address, dates ofresidence, and all telephone numbers(including facsimile numbers)
listed at that address.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 6 of 24

Background Questionnaire
Page 2

(e.g.,

8. List all telephone numbers and telecommunication services that were in your name or
that you regularly used at any time during the last [three] years. Include all residential,
business, cellular, credit card, and VOIP telephone numbers, including those listed in
your response to question 7, and services such as GoogleVoice, Skype, video conference
services. For each telephone number, state the names)ofthe corresponding carriers)
AT&T,Verizon, Vonage, Skype,etc.).

(e.g.

9. List the universal resource locator(URL)for all websites or blogs that you established or
for which you had the authority to control content, at any time during the last [three]
years. For each website, state the names)ofthe domain name registrar
GoDaddy)
through which the URL was obtained,the names)of all individuals or entities who
provided web site hosting or design services, whether the website contained primarily
business or personal information, and the time period in which it was active.

(e.g.,

(e.g.

Facebook,
10. List all electronic mail addresses and social networking accounts
LinkedIn, Twitter, Instagram, Flickr, and Google+)that were in your name or that you
regularly used at any time during the last [three] years. Include all personal, business and
shazed electronic mail addresses and social networking accounts. For each electronic
mail address and social networking account, state the names)ofthe corresponding
Google, Yahoo, AOL,or your employer), whether the
Internet service providers)
address was used primarily for business or personal correspondence, and the time period
in which it was active.

11. List all usernames for instant messaging and similar electronic communication services
(including, but not limited to, Bloomberg, Skype, whatsapp), other than those listed in
your response to questions 8 through 10, that were in your name or that you regularly
used at any time during the last [three] yeazs. Include all personal, business and shared
addresses. For each username, state the names)ofthe communication service provider
(e.g., Google, AOL,etc.), whether the address was used primarily for business or

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 7 of 24

Background Questionnaire
Page 3
personal correspondence, the time period in which it was active, and the name ofthe
software applications)(e.g., GTalk,ICQ, MSN Messenger) you used to access it.

12. List all Internet message boazds or discussion forums(including, but not limited to,
Money Maker Group,PNQI Message Board,Investors Hub Daily)of which you were a
mennber or on which you posted any messages at any time during the last [three] years.
For each message board or discussion forum, state the service provider and your member
name or identification information.

PUBLICLY-HELD COMPANIES
13. Are you now,or have you ever been, an officer or director of any publicly-held
company? Yes _ No _
Tf yes, identify each such company,its CUSIP,and any exchange on which it is or was
listed, and state your positions(including membership on any Boazd or management
committees) and the dates you held each position.

14. Are you now,or have you ever been, a beneficial owner, directly or indirectly, offive per
cent or more of any class of equity securities of any publicly held company? Yes _ No _
If yes, identify each such company,its CUSIP,and any exchange on which it is or was
listed, and state the amount, percentage, and dates of your ownership.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 8 of 24

Background Questionnaire
Page 4
PRIVATELY-HELD COMPANIES
Are you now,or have you ever been, a beneficial owner, directly or indirectly, of any
privately-held company (i. corporation, partnership, limited liability company or other
corporate form)? Yes No
e.,

15.

If yes, identify each such company,including address and other contact information, and
state your positions and the dates you held each position.

Are you now, or have you ever been, a manager or a member ofany privately-held
corporation, partnership, limited liability company or other corporate
company
form)? Yes_ No_
(i.e.,

16.

If yes, identify each such company,including address and other contact information, and
state your positions and the dates you held each position.

SECURITIES ACCOUNTS

(i.e.,

17. List all securities or brokerage accounts that you have held in your name,individual]y or
jointly, at any time during the last [three] years. Include all foreign accounts. For each
such account, identify:(i)the brokerage firm;(ii) the location ofthe branch where your
cash, margin or
account is or was held;(iii) your broker;(iv)the type ofaccount
ever
held
discretionary
number;
and
(vi)
whether
any
person
has
IRA);(v)the account
authority or power of attorney over the account; if so, name such person(s).

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 9 of 24

Background Questionnaire
Page 5
18. List all securities or brokerage accounts (including foreign accounts), other than those
listed in your answer to question 17,in which you had any direct or indirect beneficial
interest at any time during the last [three] years. For each such account, provide the
information requested by question 17.

19. List all securities or brokerage accounts(including foreign accounts), other than those
listed in your answer to question 17 or 18, over which you had any control at any time
during the last [three] yeazs. For each such account, provide the information requested by
question 17.

BANK ACCOUNTS

(i.e.,

(i.e.,

bank, thrift,
20. List all accounts you have held in your name at any financial institution
ox credit union) at any time during the last [three] years. Include all foreign accounts.
For each such account, identify:(i)the financial institution;(ii)the address ofthe branch
checking, savings,
at which your account is or was held;(iii) the type of account
money market or IRA);(iv)the account number; and(v)whether any person has ever had
discretionary authority or power ofattorney over the account; ifso, name such person(s).

21. List all accounts at financial institutions(including foreign accounts), other than those
listed in your answer to question 20, in which you had any direct or indirect beneficial
interest at any time during the last [three] years. For each such account, provide the
information requested by question 20.

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Background Questionnaire
Page 6

22. List all accounts at financial institutions(including foreign accounts), other than those
listed in your answer to question 20 or 21,over which you had any control at any time
during the last [three] years. For each such account, provide the information requested by
question 20.

23. List any other accounts(including foreign accounts), other than those listed in your
answers to questions 20 through 22,that were held in your name,in which you had any
direct or indirect beneficial interest, or over which you had any control, that you have
used to transfer funds in the last [three] years, including, but not limited to, PayPal
accounts. For each such account, provide the information requested by question 20.

PRIOR PROCEEDINGS
24. Have you ever testified in any proceeding conducted by the staffofthe Securities and
Exchange Commission,a U.S. or foreign federal or state agency,a U.S. or foreign federal
or state court, a stock exchange,the Financial Industry Regulatory Authority("FINRA")
or any other self-regulatory organization("SRO"), or in any arbitration proceeding
related to securities transactions? Yes _ No _
If yes, for each such proceeding,identify:(i)the title of the proceeding;(ii) the
organization or agency; and (iii) the dates)on which you testified.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 11 of 24

Background Questionnaire
Page 7
25. Have you ever been deposed in connection with any court proceeding? Yes _ No _
If yes,for each such proceeding, identify:(i)the title ofthe proceeding, and (ii) the
dates)on which you were deposed.

26. Have you ever been named as a defendant or respondent in any action or proceeding
brought by the SEC,any other U.S. or foreign federal agency, a state securities agency,
FINRA,an SRO,or any exchange? Yes _ No _
If yes,for each such proceeding, identify:(i)the title ofthe proceeding;(ii)the agency or
tribunal;(iii) the substance ofthe allegations;(iv)the outcome ofthe proceeding; and
(v)the date ofthe outcome.

27. Have you ever been a defendant in any action (other than those listed in response to
question 26)alleging violations ofthe federal securities laws? Yes _ No
If yes,for each such proceeding,identify:(i)the title ofthe proceeding;(ii)the court or
tribunal;(iii) the outcome ofthe proceeding; and (iv)the date ofthe outcome.

28. Have you ever been a defendant in any criminal proceeding other than one involving a
minor traffic offense? Yes _ No
If yes,for each such proceeding,identify:(i)the title ofthe proceeding;(ii)the court or
tribunal;(iii) the outcome ofthe proceeding; and (iv)the date ofthe outcome.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 12 of 24

Background Questionnaire
Page 8
EDUCATIONAL HISTORY
29. Provide the requested information about each educational institution that you have
attended, beguuung with the most recent and working backward to the date that you
completed high school.

Name ofSchool
City

State

Country

Zip Code
Month/Year of Degree

Data ofAtleodenx: Month/Yeer to Month/Year

Name ofSchool
State
Dates ofAnendance: Momh/Year to MonilJYcar

Country

Zip Code

DcgedMajor

MontldYear ofDegra

Country

Zip Code

fhgredMajor

Mon1h/Year of Degree

Country

Zip Code

DegedMajor

Mortth/Year of Degree

Name of School
City

SWU

Dates of Attendance: MontlJYear to Month/Year

Name of School
Ciry

State

Dales of Attendance: MoottYear ro Momh/Yeaz

30.Other than courses taken in connection with institutions listed in response to question 29,
list any securities, accounting or business related courses taken since high school. For
each such course, identify the date that the course was completed and the name ofthe
institution or organization that offered the course.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 13 of 24

Background Questionnaire
Page 9
PROFESSIONAL LICENSES/CLUBS
31. Do you hold, or have you ever held, any professional license? Yes_ No _

(e.g.,

If yes,for each such license, identify:(i)the license number or attorney bar number;
(ii) the licensing organization;(iii)the date the license was awarded;(iv)the date such
license terminated, if applicable;(v)the dates)of any disciplinary proceedings) against
reprimand,
you: and (vi)the outcome ofany such disciplinary proceeding
suspension, revocation).

32. Are you,or have you ever been,a member ofany professional or business club or
organization? Yes _ No _

(e.g.,

If yes, list for each:(i} the name ofthe club or organization;(ii) its address;(iii) the
board
dates)of your membership; and (iv)service in any governance roles
member,committee member,etc.)including title and dates ofservice.

33. Are you, or have you been in the last [three] years, a member ofany social clubs,
charities or nonprofit organizations? Yes _ No

(e.g.,

If yes, list for each:(i)the name ofthe social club, charity or nonprofit organization;
(ii) its address;(iii) the dates)of your membership; and (iv)service in any governance
board member,committee member,etc.) including title and dates ofservice..
roles

EMPLOYMENT HISTORY
34. Are you, or have you ever been,an employee of a broker, dealer, investment adviser,
investment company, municipal securities dealer, municipal advisor, transfer agent, or

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 14 of 24

Background Questionnaire
Page 10
nationally recognized statistical rating organization? Yes _ No _
If yes, list for each:(i)the jurisdiction ofthe entity;(ii) your CRD number;(iii) the
entity's CRD number;(iv)the entity's SEC File number;(v)the entity's CUSIP number;
and (vi) any foreign registration information similar to the foregoing.

35. State your employment activities, beginning with the present and working backwazd to
the date that you completed high school and attach a recent copy of your resume or
curriculum vitae.

Employer's Name/SelfEmployment
Telephone Number

Employer's Street Address


Country

State

Zip Code

Tide

Dates ofEmployment

Supervisor

Title

Dates oCEmployment

Supervisor

ofEmployment

Supervisor

Data oCF.rnployment

Supemsor

Title

Employer's NamdSelf-Employment
Telephone Number

Employer's Sveet Address


Country

Zip Code

Ciry

State

Title

Dates of Employmrnt

Supervisor

Title

Dates of Employmrnt

Supervisor

T~~~

Dates of Employment

Title

Dala of Employment

Supervisor

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 15 of 24

Background Questionnaire
Page 11

Employtt's Name/Self-Employmrnt
Telephone Number

Employer's Street Address


Ciry

Sute

Cowtry

Zip Code

Dates o!Fmploymrnt

Suprnisor

Tide

Data of Employmrnt

Suprnisor

Title

Data ofEmploymrnt

Supervisor

Title

Data oC Employmrnt

Supervisor

Employer's Name/Self-Employmrnt
Telephone Nwober

Employer's Strat Address


Ciry

Title

Tide

Smote

Country

Zip Code

Data ofEmploymrnl

Supervisor

Dales ofEmployment

Suprnisor

Data ofEmployment

Supervisor

Data of Employment

Supmisor

Employer's Name/Self-Employment
Telephone Tlumber

Employer's Shat Address


City

Stale

Title

Daics of Employment

Title

Data of Employment

Title

Country

Zip Cade

Superviwr

Dales oC Employrnrnt

Supervisor

Dates of Employmrnt

Supervisor

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 16 of 24

Background Questionnaire
Page 12

Employu's NameJSclf-Employment
Telephone Number

Employees StreM Address


Country

Zip Code

City

Stale

Title

Dales ofEmployment

Supervisor

Title

Data of Employment

Supervisor

Title

Data ofEmployment

Supervisor

TiAe

Data oEEmploymrnt

Supcvisor

\__r7!JMM[~]~/:\it+~~_I_~~~~ ~,[~L~~T~~:~s~`I
:
C~Z)`M1~~`lid=~i~~~i

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 17 of 24

SECURITIES AND EXCHANGE COMMISSION


Washington,D.C.20549
Supplemental Information for Persons Requested to Supply
Information Voluntarily or Directed to Supply Information
Pursuant to a Commission Subpoena
A. False Statements and Documents
Section 1001 of Title 18 of the United States Code provides as follows:
(WJhcever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the
Government of the Unfted States, knowingly and willfully
(1) falsifies, conceals, or covers up by any trick, scheme,or device a material fact;
(2) makes any materially false, fictitious, or fraudulent statement or representation; or
(3) makes or uses any false writing or document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry;
shall be fined under this title, imprisoned not more than 5 years ... or both.
B. Testimony
If your testimony is taken, you should be aware of the following:
RecorL Your testimony will be transcribed by a repoNer. If you desire to go off the record, please indicate this to
the Commission employee taking your testimony, who will determine whether to grant your request. The reporter
will not go off the record at your, or your counsel's, direction.
Counsel. You have the right to be accompanied, represented and advised by counsel of your choice. Your
counsel may advise you before, during and after your testimony; question you briefly at the conclusion of your
testimony to darify any of the answers you give during testimony; and make summary notes during your
testimony solely for your use. If you are accompanied by counsel, you may consult privately.
If you are not accompanied by counsel, please advise the Commission employee taking your testimony if, during the
testimony, you desire to be accompanied, represented and advised by counsel. Your testimony will be adjourned
once to afford you the opportunity to arrange to be so accompanied, represented or advised.
You may be represented by counsel who also represents other persons involved in the Commission's investigation.
This multiple representation, however, presents a potential conflict of interest if one GienYs interests are or may be
adverse to anothers. If you are represented by counsel who also represents other persons involved in the
investigation, the Commission will assume that you and counsel have discussed and resolved all issues concerning
possible conflicts of interest. The choice of counsel, and the responsibility for that choice, is yours.
3.

Tiansaipt Availability. Rule 6 of the Commission's Rules Relating to Investigations, 17 CFR 203.6, states:
A person who has submitted documentary evidence or testimony in a fomnal investigative proceeding
shall be entitled, upon written request, to procure a copy of his documentary evidence or a transcript of
his testimony on payment of the appropriate fees: Provided, however, That in a nonpublic formal
investigative proceeding the Commission may for good cause deny such request. In any event, any
witness, upon proper identification, shall have the right to inspect the o~cial transcript of the witness'
own testimony.

If you wish to purchase a copy of the transcript of your testimony, the reporter will provide you with a copy of the
appropriate forrn. Persons requested to supply information voluntarily will be allowed the rights provided by this rule.
4. Perjury. Section 1621 of Title 18 of the United States Code provides as follows:
Whoever
(1)having taken an oath before a competent tribunal, officer, or person, in any case in which a law of
the United States authorizes an oath to be administered, that he will Testify, declare, depose, or certify
truly, or that any written testimony, declaration, deposition, or certificate by him subscribed, is true,
willfully and contrary to such oath stales or subscribes any material matter which he does not believe to
be true; or
SEC 1662(09-14)

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 18 of 24

(2)in any declaration, certificate, verification, or statement under penalty of perjury as permitted under
section 1746 of title 28, United States Code, willfully subscribes as true any material matter which he
does not believe to be true;
is guilty of pery'ury and shall, except as otherwise expressly provided by law, be fined under this title or
imprisoned not more than five years, or both.
5. Filth Amendment and Voluntary Testimony. Information you give may be used against you in any federal, state,
local or foreign administrative, civil or criminal proceeding brought by the Commission or any other agency.
You may refuse, in accordance with the rights guaranteed to you by the Fifth Amendment to the Constitution of the
United States, to give any information that may tend to incriminate you.
If your testimony is not pursuant to subpoena, your appearance to testify is voluntary, you need not answer any
question, and you may leave whenever you wish. Your cooperation is, however, appreaated.
6. Formal Order Availability. If the Commission has issued a formal order of investigation, it will be shown to you
during your testimony, at your request. If you desire a copy of the format order, please make your request in writing.
C. Submissions and Settlements
Rule 5(c) of the Commission's Rules on Inforrnal and Other Procedures, 17 CFR 202.5(c), states:
Persons who become involved in ... investiga8ons may, on their own initiative, submit a written
statement to the Commission setting forth their interests and position in regard io the subject matter
of the investigation. Upon request, the staff, in its discretion, may advise such persons of the
general nature of the investigation, including the indipted violations as they pertain to them, and
the amount of time that may be available for preparing and submitting a statement prior to the
presentation of a staff recommendation to the Commission for the commencement of an
administrative or injunction proceeding. Submissions by interested persons should be forvvarded to
the appropriate Division Director or Regional Director with a copy to the staff members conducting
the investigation and should be clearly referenced to the specific investigation to which they relate.
!n the event a recommendation for the commencement of an enforcement proceeding is presented
by the staff, any submissions by interested persons will be forwarded to the Commission in
conjunction with the staff memorandum.
The staff of the Commission routinely seeks to introduce submissions made pursuant to Rule 5(c) as evidence in
Commission enforcement proceedings, when the staff deems appropriate.
Rule 5(~ of the Commission's Rules on Informal and Other Procedures, 17 CFR 202.5(fl, states:
In the course of the Commission's investigations, civil lawsuits, and administrative proceedings, the
staff, with appropriate authorization, may discuss with persons involved the disposition of such
matters by consent, by settlement, or in same other manner. It is the policy of the Commission,
however, that the disposition of any such matter may not, expressly or impliedly, extend to any
criminal charges that have been, or may be, brought against any such person or any
recommendation with respect thereto. Accordingly, any person involved in an enforcement matter
before the Commission who consents, or agrees to consent, to any judgment or order does so
solely for the purpose of resolving the daims against him in that investigative, avil, or
administrative matter and not for the purpose of resolving any criminal charges that have been, or
might be, brought against him. This policy reflects the fact that neither the Commission nor its staff
has the authority or responsibility for instituting, conducting, settling, or othervvise disposing of
criminal proceedings. That authority and responsibility are vested in the Attorney General and
representatives of the Department of Justice.
D. Freedom of Information Act
The Freedom of Information Act, 5 U.S.C. 552(the "FOIA"), generally provides for disclosure of information to the
public. Rule 83 a(the Commission's Rules on Information and Requests, 17 CFR 200.83, provides a procedure by
which a person can make a written request that information submitted to the Commission not be disclosed under the
FOIA. That rote states that no determination as to the validity of such a request will be made until a request for
disclosure of the information under the FOIA is received. Accordingly, no response to a request that information not
11
be disclosed under the FOIA is necessary or will be given until a request for disclosure under the FOIA is received.
FOIA,
under
the
disclosed
be
not
information
that
request
written
your
of
receipt
of
acknowledgment
an
desire
you
please provide a duplicate request, together with a stamped, self-addressed envelope.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 19 of 24

E. Authority for Solicitation of Information


Persons Directed to Supply Information Pursuant to Subpoena. The authority for requiring production of information is
set forth in the subpoena. Disclosure of the information to the Commission is mandatory, subject to the valid assertion
of any legal right or privilege you might have.
Persons Requested fo Supply Information Voluntarily. One or more of the (otlowing provisions authorizes the
Commission to solicit the information requested: Sections 19 andlor 20 of the Securities Act of 1933; Section 21 of
the Securities Exchange Act of 1934; Section 321 of the Trust Indenture Act of 1939; Section 42 of the Investment
Company Act of 1940; Section 209 of the Investment Advisers Act of 1940; artd 17 CFR 202.5. Disclosure of the
requested information to the Commission is voluntary on your part.
F. Effect of Not Supplying Information
Persons Directed to Supply Information Pursuant to Subpoena. If you fail to comply with the subpoena, the
Commission may seek a court order requiring you to do so. If such an order is obtained and you thereafter fail to
supply the information, you may be subject to civil and/or criminal sanctions for contempt of court. In addition, if the
subpoena was issued pursuant to the Securities Exchange Act of 1934, the Investment Company Act of 1940, and/or
the Investment Advisers Act of 1940, and if you, without just cause, tail or refuse to attend and testify, or to answer
any lawful inquiry, or to produce books, papers, correspondence, memoranda, and other records in compliance with
the subpoena, you may be found guilty of a misdemeanor and fined not more than $1,000 or imprisoned for a term of
not more than one year, or both.
Persons Requested to Supply Infomrafion Voluntarily. There are no direct sanctions and thus no direct effects for
failing to provide all or any part of the requested information.
G. Principal Uses of Information
The Commission's principal purpose in soliciting the information is to gather facts in order to determine whether any
person has violated, is violating, or is about to violate any provision of the federal securities laws or rotes for which
the Commission has enforcement authority, such as riles of securities exchanges and the rules of the Municipal
Securities Rulemaking Board. Facts developed may, however, constitute violations of other laws or rules. Information
provided maybe used in Commission and other agency enforcement proceedings. Unless the Commission or its staff
explicitly agrees to the contrary in writing, you should not assume that the Commission or its staff acquiesces in,
accedes to, or concurs or agrees with, any position, condition, request, reservation of right, understanding, or any
other statement that purports, or may be deemed, to be or to reflect a limitation upon the Commission's receipt, use,
disposition, transfer, or retention, in accordance with applicable law, of information provided.
H. Routine Uses of Information
The Commission often makes its files available to other governmental agenaes, particularly United States Attorneys
and state prosecutors. There is a likelihood that information supplied by you will be made available to such agencies
where appropriate. Whether or not the Commission makes its files available to other governmental agencies is, in
general, a confidential matter betvween the Commission and such other governmental agencies.
Set forth below is a list of the routine uses which may be made of the information furnished.
1. To appropriate agencies, entities, and persons when (a) it is suspected or confirmed that the security or
confidentiality of information in the system of records has been compromised;(b)the SEC has determined that, as a
result of the suspected or confirmed compromise, there is a risk of harm to economic or property interests, identity
theft or fraud, or harm to the security or integrity of this system or other systems or programs (whether maintained by
the SEC or another agency or entity) that rely upon the compromised information; and (c)the disGosure made to
such agenaes, entities, and persons is reasonably necessary to assist in connection with the SEC's efforts to
respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm.
2. To other federal, state, local, or foreign law enforcement agenaes; securities self-regulatory organizations; and
foreign financial regulatory authorities to assist in ar coordinate regulatory or law enforcement activities with the SEC.
3. To national securities exchanges and national securities associations that are registered with the SEC,the
Municipal Securities Rulemaking Board; the Securities Investor Protection Corporation; the Public Company
Accounting Oversight Board; the federal banking authorities, inGuding, but not limited to, the Board of Governors of
the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation; state
securities regulatory agenaes or organizations; or regulatory authorities of a foreign government in connection with
their regulatory or enforcement responsibilities.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 20 of 24

4. By SEC personnel for purposes of investigating possible violations of, or to conduct investigations authorized by,
the federal securities laws.
5. In any proceeding where the federal securities laws are in issue or in which the Commission, or past or present
members of its staff, is a party or othervvise involved in an official capacity.
6. In connection with proceedings by the Commission pursuant to Rule 102(e)of its Rules of Practice, 17 CFR
201.102(e).
7. To a bar association, state accountancy board, or other federal, state, local, or foreign licensing or oversight
authority; or professional association orself-regulatory authority to the extent that it performs similar functions
(including the Public Company Accounting Oversight Board)for investigations or possible disciplinary action.
8. To a federal, state, local, tribal, foreign, or international agency, if necessary to obtain information relevant to the
SEC's decision concerning the hiring or retention of an employee; the issuance of a security clearance; the letting of
a contract or the issuance of a license, grant, or other benefit.
9. To a federal, state, local, tribal, foreign, or international agency in response to its request for information
concerning the hiring or retention of an employee; the issuance of a security Gearance; the reporting of an
investigation of an employee; the letting of a contract; or the issuance of a license, grant, or other benefit by the
requesting agency, to the extent that the information is relevant and necessary to the requesting agency's decision on
the matter.
10. To produce summary descriptive statistics and analytical studies, as a data source for management information,
in support of the function for which the riecords are collected and maintained or for related personnel management
functions or manpower studies; may also be used to espond to general requests for statistical information (without
personal identification of individuals) under the Freedom of Information Act.
11. To any Vustee, receiver, master, speaal counsel, or other individual or entity that is appointed by a court of
competent jurisdiction, or as a result of an agreement between the parties in connection with IitigaGon or
administrative proceedings involving allegations of violations of the federal securities laws(as defined in section
3(a)(47)of the Securities Exchange Act of 1934, 15 U.S.C. 78c(aj(47))or pursuant to the Commission's Rules of
Practice, 17 CFR 201.100 900 or the Commission's Rules of Fair Fund and Disgorgement Plans, 17 CFR
201.1100-1106, or othervvise, where such trustee, receiver, master, special counsel, or other individual or entity is
specifically designated to perform particular functions with respect to, or as a result of, the pending action or
proceeding or in connection with the adminisVation and enforcement by the Commission of the federal securities laws
or the Commission's Rules of Practice or the Rules of Fair Fund and Disgorgement Plans.
12. To any persons during the course of any inquiry, examination, or investigation conducted by the SEC's staff, or in
connection with civil litigation, if the staff has reason to believe that the person to whom the record is disGosed may
have further inforrnation about the matters t~elated therein, and those matters appeared to be relevant at the time to
the subject matter of the inquiry.
13. To interns, grantees, experts, contractors, and others who have been engaged by the Commission to assist in
the perforrnance of a service related to this system of records and who need access to the records for the purpose of
assisting the Commission in the e~cient administration of its programs, including by performing clerical,
stenographic, or data analysis functions, or by reproduction of records by electronic or other means. Recipients of
these records shall be required to comply with the requirements of the Privacy Act of 1974, as amended,5 U.S.C.
552a.
14. In reports published by the Commission pursuant to authority granted in the federal securities laws(as such term
is defined in section 3(a)(47)of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)), which authority shall
include, but not be limited to, section 21(a) of the Securities Exchange Act of 1934, 15 U.S.C. 78u(a)).
15. To members of advisory committees that are created by the Commission or by Congress to render advice and
recommendations to the Commission or to Congress, to be used solely in connection with their official designated
functions.
16. To any person who is or has agreed to be subject to the Commission's Rules of Conduct, 17 CFR 200.735-1 to
200.735-18, and who assists in the investigation by the Commission of possible violations of the federal securities
laws(as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)), in the
preparation or conduct of enforcement actions brought by the Commission for such violations, or otherwise in
connection with the Commission's enforcement ar regulatory functions under the federal securities laws.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 21 of 24

17. To a Congressional office from the record of an individual in response to an inquiry from the Congressional office
made at the request of that individual.
78. To members of Congress, the press, and the public in response to inquiries relating to particular Registrants and
their activities, and other matters under the Commission's jurisdiction.
19. To prepare and publish inforrnation relating to violations of the federal securities laws as provided in 15 U.S.C.
78c(a)(47)), as amended.
20. To respond to subpoenas in any litigation or other proceeding
21. To a trustee in bankruptcy
22. To any governmental agency, governmental or private collection agent, consumer reporting agency or
commercial reporting agency, governmental or private employer of a debtor, or any other person, for collection,
including collection by administrative offset, federal salary offset, tax refund offset, or administrative wage
garnishment, of amounts owed as a result of Commission civil or administrative proceedings.

Small Business Owners: The SEC always welcomes comments on how it can better assist small businesses. If you
would like more information, or have questions or comments about federal securities regulations as they affect small
businesses, please contact the Once of Small Business Policy, in the SEC's Division of Corporation Finance, at 202551-3460. If you would prefer to comment to someone outside of the SEC, you can contact the Small Business
Regulatory Enforcement Ombudsman at http:Nwww.sba.gov/ombudsman or toll free at 888-REG-FAIR. The
Ombudsman's office receives comments from small businesses and annually evaluates federal agency enforcement
activities for their responsiveness to the special needs of small business.

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 22 of 24


UPS CampusSlup: Shipment Label

Page l of 1

UPS CampusShip: ViewlPrint Label


1. Ensure there are no other shipping or tracking labels attached to your package. Select the
Print button on the print dialog box that appears. Note: If your browser does not support this function
select Print front the File menu to print the label.
2. Fold the printed label at the solid line below. Place the label in a UPS Shipping Pouch. If you do
not have a pouch, affix the folded label using clear plas;ic shipping tape over the entire label.
3. GETTING YOUR SHIPMENT TO UPS
Customers with a Daily Pickup
Your driver will pickup your shipments) as usual.
Customers without a Daily Pickup
Take your package to any location of The UPS StoreO. UPS Access Point(TM) location, UPS Drop
Box, UPS Customer Center, UPS Alliances (Office DepotO or Staples)or Authorized Shipping Outlet
near you. Items sent via UPS Return Services(SM)(including via Ground) are also accepted at Drop
Boxes. To find the location nearest you please v~s~t the Resources area of CampusShip and select
UPS Locations.
Schedule a same day or future day Pickup to have a UPS driver pickup all your CampusShip
packages.
Hand the package to any UPS driver in your area
UPS Access PointT"`
UPS Access Pomt~''"
UPS Access PointT
THE UPS STORE
THE UPS STORE
THE UPS STORE
2625 PIEDMONT RD NE
4062 PEACHTREE RD NE
3535 PEACHTREE RD NE
ATLANTA ,GA 30324
ATLANTA .GA 30319
ATLANTA ,GA 30326

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Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 23 of 24

Saunders, Ed~nrard He
F~orri:
Sent:
To:
Subjec#:

UPS Quantum View <pkginfo@ups.com>


Friday, February 19, 2016 9:58 AM
Saunders, Edward H.
UPS Delivery Notification, Tracking Number 1ZA3749A0196934208

Your package has been delivered.

Delivery Date:

Friday, 02/19/2016

Delivery Time:

09:44 AM

At the request of SFC ATLANTA REG OFFICE, this notice is to confirm that following
sf~ipment has been delivered.

Shipment Detail
3racking fVumber

iZA3749A0196934208

Ship To:

Alex Rue, Esq.


AlexRueLaw, LI.0
4Q62 PEACH~TRFE RD NE
ROOM A
ATLANTA, GA 30319
US

UP5 Service:

NEXT DAY AIR

Number of PacEcages

shipment Type:

Letter

Delivery Locafian:

FRONT DESK

signed by:

MCCONNEH[AD

Reference f~umber ~.

A-3672

Get the UP5 My Choice ap.p fir Facebook

Download the UP5 mobile app

<c~ 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the

Case 1:16-mi-00041-WSD-CMS Document 1-11 Filed 06/15/16 Page 24 of 24

color brown are trademarks of United Parcel Service of America, Inc. All rights
reserved.
Ali trademarks, trade names, or service marks that appear in connection with UPS's
services are the property of their respective owners.
Please do not reply directly to this e-mail. UPS will not receive any reply message.
For more information on UPS's privacy practices, refer to the UPS Privacy Notice.
For questions or comments, visit Contact UPS.
This communication contains proprietary information and may he confidential. If you
are not khe intended recipient, the reading, copying, disclosure or other use of the
contents of this e-mail is strictly prohibited and you are instructed to please delete
this e-mail imrnediatPly.

11R~ Privacy (notice


Contact_UPS

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 1 of 23

EXHIBIT J
Adam Tracy's Apri121, 2016 subpoena package and the United Parcel Service
proof of delivery.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 2 of 23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
ATLANTA REGIONAL OFFICE
950 East Paces Ferry Road, N.E. Suite 900
Atlanta, Georgia 30326-1382
Telephone: (404)842-7680
Facsimile: (404)842-7633

Edward H. Saunders
Senior Counsel

Apri121, 2016
VIA E-MAIL
alex(a,alexruelaw.com
VIA UNITED PARCEL SERVICE
Adam S. Tracy, Esq.
c/o Alex Rue, Esq.
A 1exRueLaw, LLC
4062 Peachtree Road, Suite 511
Atlanta, Georgia 30319
Re:

7n The Matter of Sonant Communications Corp., and Certain Other Issuers(A-03672

Dear Mr. Tracy:


The staff of the U.S. Securities and Exchange Commission is conducting an investigation
in the matter identified above. The enclosed subpoena has been issued to you as part of this
investigation. The subpoena requires you to provide sworn testimony. Please read the subpoena
and this letter carefully. This letter answers some questions you may have about the subpoena.
You should also read the enclosed SEC Form 1662. You must comply with the subpoena. You
may be subject to a fine if you do not. We have also included a Background Questionnaire form.
Please complete the enclosed form and return it to us prior to your scheduled testimony.
Testi in
Where and when do Itestify?
The subpoena requires you to come to the Atlanta office of the United States Securities
and Exchange Commission, 950 East Paces Ferry Road, N.E. Suite 900, Atlanta, Georgia 303261382 on Tuesday, May 17,2016 at 1:00 p.m. to testify under oath in the matter identified on the
subpoena. Your testimony will continue through the next day, Wednesday, May 18, 2016, if
necessary.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 3 of 23

Adam S. Tracy, Esq.


Apri121, 2016
Page 2 of2
Other Important Information

What will the Commission do with the testimony Iprovzde?


The enclosed SEC Form 1662 includes a List of Routine Uses of information provided to
the Commission. This form has other important information for you. Please read it carefully.
Has the Commission determined that anyone has done anything wrong?
This investigation is anon-public, fact-finding inquiry. We are trying to determine
whether there have been any violations of the federal securities laws. The investigation and the
subpoena do not mean that we have concluded that you or anyone else has broken the law. Also,
the investigation does not mean that we have a negative opinion of any person, entity ox secuzity.
Important Policy Concerning Settlements
Please note that, in any matter in which enforcement action is ultimately deemed to be
warranted, the Division of Enforcement will not recommend any settlement to the Commission
unless the party wishing to settle certifies, under penalty ofperjury, that all documents responsive
to Commission subpoenas and formal and informal document xequests in this matter have been
produced.
I have read this letter, the subpoena, and the SEC Form 1662, but I still have questions. What
should Ido?
If you have any other questions, you may call me at(404)842-7680.
Sincerely,
-~__
r~~,
Edward H. Saunders
Senior Counsel
Division of Enforcement

Enclosures:

Subpoena
Background Questionnaire
SEC Form 1662

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 4 of 23

SUBPOENA

UNITED STATES OF AMERICA


SECURITIES AND EXCHANGE COMMISSION
In The Matter of Sonant Communications Corp., and Certain Other Issuers(A-03672
Adam S. Tracy, Esq.
c/o Alex Rue,Esq.
AlexRueLaw,LLC
4062 Peachtree Road, Suite 511
Atlanta, Georgia 30319
YOU MUST TESTIFY before officers ofthe Securities and Exchange Commission at the place,
date and time specified below: United States Securities and Exchange Commission,950 East Paces
Ferry Road, N.E., Suite 900, Atlanta, Georgia 30326-1382 on Tuesday, May 17, 2016 at 1:00 p.m.
and continuing through the next day, if necessary.

FEDERAI.LAW REQUIRES YOU TO COMPLY WITH THIS SUBPOENA.


Failure to comply may subject you to a fine and/or imprisonment.

~~

BY

Date: Arri121 2016

Edward H. Saunders
Senior Counsel
Division ofEnforcement

I am an officer ofthe Securities and Exchange Commission authorized to issue subpoenas in this
matter. The Securities and Exchange Commission has issued a formal order authorizing this
investigation under Section 20(a) ofthe Securities Act of 1933("Securities Act")and Section 21(a)
ofthe Securities Exchange Act of 1934. The Commission has also issued an Order of Examination
under Section 8(e)ofthe Securities Act.

NOTICE TO WITNESS:

If you claim a witness fee or mileage, submit this subpoena with the claim voucher.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 5 of 23

BACKGROUND QUESTIONNAIRE
Please respond to the following questions in the space provided. If you need additional
space for any response, you may attach additional pieces of paper.
Today's date:
1. What is your full name?

2. Have you ever been known by any other name? Yes _ No _


If yes, list each such name and the periods) in which you were known by that name.

3. Date and Place of Birth?

4. Country of Citizenship?

5. Marital Status? Married _Divorced _Single


If you have ever been married, state for each marriage: (i) the dates)of the marriage;
(ii) the name of your spouse; (iii) your spouse's birth name, if different;(iv) your
spouse's age; and (v) your spouse's occupation.

6. List the names, ages and occupations of your children, if any.

7. List all residences you occupied at any time during the last [three] years, including
vacation homes, beginning with your current residence. For each residence, state the
address, dates of residence, and all telephone numbers (including facsimile numbers)
listed at that address.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 6 of 23

Background Questionnaire
Page 2

(e.g.,

all

8. List telephone numbers and telecommunication services that were in your name or
that you regularly used at any time during the last [three] years. Include all residential,
business, cellular, credit card, and VOIP telephone numbers, including those listed in
your response to question 7, and services such as GoogleVoice, Skype, video conference
services. For each telephone number, state the names)of the corresponding carriers)
AT&T, Verizon, Vonage, Skype, etc.).

(e.g.

9. List the universal resource locator(URL)for all websites or blogs that you established or
for which you had the authority to control content, at any time during the last [three]
GoDaddy)
years. For each website, state the names)of the domain name registrar
who
entities
or
of
all
the
names)
individuals
obtained,
URL
was
the
which
through
primarily
contained
the
website
whether
services,
provided web site hosting or design
business or personal information, and the time period in which it was active.

(e.g.,

(e.g.

Facebook,
10. List all electronic mail addresses and social networking accounts
+)
name
in
or that you
your
were
that
and
Google
Flickr,
Instagram,
LinkedIn, Twitter,
business and
personal,
all
Include
regularly used at any time during the last [three] years.
shared electronic mail addresses and social networking accounts. For each electronic
mail address and social networking account, state the names)ofthe corresponding
Google, Yahoo, AOL,or your employer), whether the
Internet service providers)
address was used primarily for business or personal correspondence, and the time period
in which it was active.

(e.g.,

11. List all usernarnes for instant messaging and similar electronic communication services
(including, but not limited to, Bloomberg, Skype, whatsapp), other than those listed in
your response to questions 8 through 10, that were in your name or that you regularly
used at any time during the last [three] years. Include all personal, business and shared
addresses. For each usenname, state the names)of the communication service provider
Google, AOL, etc.), whether the address was used primarily for business or

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 7 of 23

Background Questionnaire
Page 3
personal correspondence, the time period in which it was active, and the name of the
software applications)(e.g., GTalk, ICQ, MSN Messenger) you used to access it.

12. Last all Internet message boards or discussion forums(including, but not limited to,
Money Maker Group,PNQI Message Board, Investors Hub Daily) of which you were a
member or on which you posted any messages at any time during the last [three] years.
For each message board or discussion forum, state the service provider and your member
name or identification information.

PUBLICLY-HELD COMPANIES
13. Are you now, or have you ever been, an officer or director of any publicly-held
company? Yes _ No _
If yes, identify each such company, its CUSIP,and any exchange on which it is or was
listed, and state your positions (including membership on any Board or management
committees) and the dates you held each position.

14. Are you now,or have you ever been, a beneficial owner, directly or indirectly, offive per
cent or more of any class of equity securities of any publicly held company? Yes _ No _
If yes, identify each such company, its CUSIP,and any exchange on which it is or was
listed, and state the amount, percentage, and dates of your ownership.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 8 of 23

Background Questionnaire
Page 4
PRIVATELY-HELD COMPANIES
Are you now, or have you ever been, a beneficial owner, directly or indirectly, of any
corporation, partnership, limited liability company or other
privately-held company
corporate form)? Yes_ No_
(i.e.,

15.

If yes, identify each such company, including address and other contact information, and
state your positions and the dates you held each position.

Are you now,or have you ever been, a manager or a member of any privately-held
company (i. corporation, partnership, limited liability company or other corporate
form)? Yes_ No_
e.,

16.

If yes, identify each such company, including address and other contact information, and
state your positions and the dates you held each position.

SECURITIES ACCOUNTS

(i.e.,

17. List all securities or brokerage accounts that you have held in your name, individually or
jointly, at any time during the last [three] years. Include all foreign accounts. For each
such account, identify:(i) the brokerage firm; (ii) the location of the branch where your
cash, margin or
account is or was held;(iii) your broker;(iv) the type of account
discretionary
has
held
ever
any
(vi)
and
person
whether
account
number;
the
IRA);(v)
such
person(s).
account;
if so, name
authority or power of attorney over the

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 9 of 23

Background Questionnaire
Page 5
18. List all securities or brokerage accounts (including foreign accounts), other than those
listed in your answer to question 17, in which you had any direct or indirect beneficial
interest at any time during the last [three] years. For each such account, provide the
information requested by question 17.

19. List all securities or brokerage accounts (including foreign accounts), other than those
listed in your answer to question 17 or 18, over which you had any control at any time
during the last [three] years. For each such account, provide the information requested by
question 17.

BANK ACCOUNTS

(i.e.,

(i.e.,

bank, thrift,
20. List all accounts you have held in your name at any financial institution
or credit union) at any time during the last [three] years. Include all foreign accounts.
For each such account, identify:(i) the financial institution; (ii) the address of the branch
checking, savings,
at which your account is or was held;(iii) the type of account
(v)
person has ever had
and
whether
any
account
number;
the
money market or IRA);(iv)
discretionary authority or power of attorney over the account; if so, name such person(s).

21. List all accounts at financial institutions (including foreign accounts), other than those
listed in your answer to question 20,in which you had any direct or indirect beneficial
interest at any time during the last [three] years. For each such account, provide the
information requested by question 20.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 10 of 23

Background Questionnaire
Page 6

22. List all accounts at financial institutions (including foreign accounts), other than those
listed in your answer to question 20 or 21, over which you had any control at any time
during the last [three] years. For each such account, provide the information requested by
question 20.

23. List any other accounts (including foreign accounts), other than those listed in your
answers to questions 20 through 22, that were held in your name, in which you had any
direct or indirect beneficial interest, or over which you had any control, that you have
used to transfer funds in the last [three] years, including, but not limited to, PayPal
accounts. For each such account, provide the information requested by question 20.

PRIOR PROCEEDINGS
24. Have you ever testified in any proceeding conducted by the staff of the Securities and
Exchange Commission, a U.S. or foreign federal or state agency, a U.S. or foreign federal
or state court, a stock exchange,the Financial Industry Regulatory Authority("FINRA")
or any other self-regulatory organization("SRO"), or in any arbitration proceeding
related to securities transactions? Yes No
If yes, for each such proceeding, identify:(i) the title of the proceeding;(ii) the
organization or agency; and (iii) the dates)on which you testified.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 11 of 23

Background Questionnaire
Page 7
25. Have you ever been deposed in connection with any court proceeding? Yes _ No
If yes, for each such proceeding, identify:(i) the title of the proceeding, and (ii) the
dates)on which you were deposed.

26. Have you ever been named as a defendant or respondent in any action or proceeding
brought by the SEC,any other U.S. or foreign federal agency, a state securities agency,
FINRA,an SRO,or any exchange? Yes _ No _
If yes, for each such proceeding, identify:(i) the title ofthe proceeding;(ii) the agency or
tribunal; (iii) the substance of the allegations;(iv) the outcome of the proceeding; and
(v)the date of the outcome.

27. Have you ever been a defendant in any action (other than those listed in response to
question 26) alleging violations of the federal securities laws? Yes _ No _
If yes, for each such proceeding, identify:(i) the title of the proceeding;(ii) the court or
tribunal; (iii) the outcome of the proceeding; and (iv)the date of the outcome.

28. Have you ever been a defendant in any criminal proceeding other than one involving a
minor traffic offense? Yes No
If yes, for each such proceeding, identify:(i) the title ofthe proceeding;(ii) the court or
tribunal; (iii) the outcome of the proceeding; and (iv) the date of the outcome.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 12 of 23

Background Questionnaire
Page 8
EDUCATIONAL HISTORY
29. Provide the requested information about each educational institution that you have
attended, beginning with the most recent and working backward to the date that you
completed high school.

Name of School
City

State

Dates of Anendarice: Mwuh/Year ro Month/Year

Country

Zip Code

Degree/Major

Month/Year oFDegree

Country

Zip Code

Deyree/Major

Month/Year of Degree

Country

Zip Code

Degrte/Major

Month/Ycar of Degree

Country

Zip Code

DegreeJMajor

Month/Year of Degree

Name of School
City

State

Dates of Attendance: MonttYear to Month/Year

Name of School
City

State

Dates of Attendance: Montl~/Year to Month/Year

Name of School
City

State

Dates of Attendance: Month/Year to Month/Year

30. Other than courses taken in connection with institutions listed in response to question 29,
list any securities, accounting or business related courses taken since high school. For
each such course, identify the date that the course was completed and the name of the
institution or organization that offered the course.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 13 of 23

Background Questionnaire
Page 9
PROFESSIONAL LICENSES/CLUBS
31. Do you hold, or have you ever held, any professional license? Yes_ No

(ix)

If yes, for each such license, identify:(i) the license number or attorney bar number;
the licensing organization;(iii) the date the license was awarded;(iv) the date such
license terminated, if applicable;(v)the dates)of any disciplinary proceedings) against
you: and (vi) the outcome of any such disciplinary proceeding (e.g., reprimand,
suspension, revocation).

32. Are you, or have you ever been, a member of any professional or business club or
organization? Yes _ No _

(e.g.,

If yes, list for each:(i) the name of the club or organization;(ii) its address;(iii) the
board
dates)of your membership; and (iv) service in any governance roles
service.
of
title
and
dates
including
member, committee member, etc.)

33. Are you, or have you been in the last [three] years, a member of any social clubs,
charities or nonprofit organizations? Yes _ No _

(e.g.,

If yes, list for each:(i)the name of the social club, charity or nonprofit organization;
(ii) its address; (iii) the dates)of your membership; and (iv) service in any governance
board member, committee member, etc.) including title and dates ofservice..
roles

EMPLOYMENT HISTORY
34. Are you, or have you ever been, an employee of a broker, dealer, investment adviser,
investment company, municipal securities dealer, municipal advisor, transfer agent, or

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 14 of 23

Background Questionnaire
Page 10
nationally recognized statistical rating organization? Yes _ No
If yes, list for each:(i) the jurisdiction of the entity; (ii) your CRD number;(iii) the
entity's CRD number;(iv) the entity's SEC File number;(v)the entity's CUSIP number;
and (vi) any foreign registration information similar to the foregoing.

35. State your employment activities, beginning with the present and working backward to
the date that you completed high school and attach a recent copy of your resume or
curriculum vitae.

Employer's Name/Self-Employmznt
Telephone Number

Employer's Street Address


Country

Zip Cade

Ciry

State

Title

Dates of Employmem

Supervisor

Dates of Employment

Supervisor

Dates of Employment

Supervisor

Dates of Employment

Supervisor

Title

Employer's Name/Self-Employment
Telephone Numbcr

Employer's Street Address


City

Siate

Counhy

Zip Code

Dates of Employment

Supervisor

Dates of Employment

Supervisor

Title

Dates of Employment

Supervisor

1'idz

Daies of Employment

Superoisa

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 15 of 23

Background Questionnaire
Page 11

Employer's NameJSeif-Employmen~
?clephone Number

Employcis Street Address


Coundy

Zip Code

City

State

Title

Dates of Employment

Supervisor

'title

Dates of Employment

Supervisor

Title

Dates of Employment

Supervisor

Title

Dates

Employer's Name/Self-Employment
Teieplione Number

Employer's Street Address


Coundy

Zip Code

City

State

'title

Dates of Employment

Supervisor

Title

Dates of Employmrnt

Supervisor

Title

Dates of Employment

Supervisor

Tile

Dates ofEmployment

Supervisor

Employer's Name/Self-Employment
Telephone Nmnber

Eanployer's Street Address


State

Country

Zip

Title

Dates oCEmployment

Supeevisa

Title

Dates of Employment

Supervisor

Tide

Dates of Fanployment

Supervisor

Tige

Dates of Employment

Supervisor

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 16 of 23

Background Questionnaire
Page 12

Employer's Name/Self-Employment
Telephone Number

Employer's Sirect Address


State

Code

Dates of Employment

Supervisor

Title

Dates ofEmployment

Supervisor

Title

Dates ofEmployment

Supervisor

Dates of Employment

CONTINUE ON ADDITIONAL SHEETS IF NECESSARY

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 17 of 23

SECURITIES AND EXCHANGE COMMISSION


Washington, D.C.20549
Supplemental Information for Persons Requested to Supply
information Voluntarily or Directed to Supply Information
Pursuant to a Commission Subpoena
A. False Statements and Documents
Section 1001 of Title 18 of the United States Code provides as follows:
[W]hoever, in any matter within the jurisdiction of the executive, legislative, orjudicial branch of the
Government of the United States, knowingly and willfully-(1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact;
(2) makes any materially false, fictitious, or fraudulent statement or representation; or
(3) makes or uses any false writing or document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry;
shall be fined under this title, imprisoned not more than 5 years ... or both.
B. Testimony
If your testimony is taken, you should be aware of the following:
1.

Record. Your testimony will be transcribed by a reporter. If you desire to go off the record, please indicate this to
the Commission employee taking your testimony, who will determine whether to grant your request. The reporter
will not go off the record at your, or your counsel's, direction.

2.

Counsel. You have the right to be accompanied, represented and advised by counsel of your choice. Your
counsel may advise you before, during and after your testimony; question you briefly at the conclusion of your
testimony to clarify any of the answers you give during testimony; and make summary notes during your
testimony solely for your use. If you are accompanied by counsel, you may consult privately.

If you are not accompanied by counsel, please advise the Commission employee taking your testimony if, during the
testimony, you desire to be accompanied, represented and advised by counsel. Your testimony will be adjourned
once to afford you the opportunity to arrange to be so accompanied, represented or advised.
You may be represented by counsel who also represents other persons involved in the Commission's investigation.
This multiple representation, however, presents a potential conflict of interest if one clients interests are or may be
adverse to anothers. If you are represented by counsel who also represents other persons involved in the
investigation, the Commission will assume that you and counsel have discussed and resolved all issues concerning
possible conflicts of interest. The choice of counsel, and the responsibility for that choice, is yours.
3.

Transcript Availability. Rule 6 of the Commission's Rules Relating to Investigations, 17 CFR 203.6, states:
A person who has submitted documentary evidence or testimony in a formal investigative proceeding
shall be entitled, upon written request, to procure a copy of his docw~nentary evidence or a transcript of
his testimony on payment of the appropriate fees: Provided, however, That in a nonpublic formal
investigative proceeding the Commission may for good cause deny such request. in any event, any
witness, upon proper identification, shall have the right to inspect the official transcript of the witness'
own testimony.

If you wish to purchase a copy of the transcript of your testimony, the reporter will provide you with a copy of the
appropriate form. Persons requested to supply information voluntarily will be allowed the rights provided by this rule.
4. Perjury. Section 1621 of Title 1 B of the United States Code provides as follows:
Whoever
(1) having taken an oath before a competent tribunal, officer, or person, in any qse in which a law of
the United States authorizes an oath to be administered, that he will testify, declare, depose, or certify
truly, or that any written testimony, dedaration, deposition, or certificate by him subscribed, is true,
willfully and contrary to such oath states or subscribes any material matter which he does not believe to
be true; or
SEC 1662(09-14)

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 18 of 23

(2) in any declaration, certificate, verification, or statement under penalty of perjury as permitted under
section 1746 of title 28, United States Code, willfully subscribes as true any material matter which he
does not believe to be true;
is guilty of perjury and shall, except as otherwise expressly provided by law, be fined under this title or
imprisoned not more than five years, or both.
5. Fifth Amendment and Voluntary Testimony.ln formation you give may be used against you in any federal, state,
local or foreign administrative, civil or criminal proceeding brought by the Commission or any other agency.
You may refuse, in accordance with the rights guaranteed to you by the Fifth Amendment to the Constitution of the
United States, to give any information that may tend to incriminate you.
If your testimony is not pursuant to subpoena, your appearance to testify is voluntary, you need not answer any
question, and you may leave whenever you wish. Your cooperation is, however, appreciated.
6. Fom~a/ Order Availability. If the Commission has issued a formal order of investigation, it will be shown to you
during your testimony, at your request. If you desire a copy of the formal order, please make your request in writing.
C. Submissions and Settlements
Rule 5(c) of the Commission's Rules on Informal and Other Procedures, 17 CFR 202.5(c), states:
Persons who become involved in ...investigations may, on their own initiative, submit a written
statement to the Commission setting forth their interests and position in regard to the subject matter
of the investigation. Upon request, the staff, in its discretion, may advise such persons of the
general nature of the investigation, including the indicated violations as they pertain to them, and
the amount of time that may be available for preparing and submitting a statement prior to the
presentation of a staff recommendation to the Commission for the commencement of an
administrative or injunction proceeding. Submissions by interested persons should be forwarded to
the appropriate Division Director or Regional Director with a copy to the staff members conducting
the investigation and should be clearly referenced to the specific investigation to which they relate.
In the event a recommendation for the commencement of an enforcement proceeding is presented
by the staff, any submissions by interested persons will be forvvarded to the Commission in
conjunction with the staff memorandum.
The staff of the Commission routinely seeks to introduce submissions made pursuant to Rule 5(c) as evidence in
Commission enforcement proceedings, when the staff deems appropriate.
Rule 5(~ of the Commission's Rules on Informal and Other Procedures, 17 CFR 202.50, states:
In the course of the Commission's investigations, civil lawsuits, and administrative proceedings, the
staff, with appropriate authorization, may discuss with persons involved the disposition of such
matters by consent, by settlement, or in some other manner. It is the policy of the Commission,
however, that the disposition of any such matter may not, expressly or impliedly, extend to any
criminal charges that have been, or may be, brought against any such person or any
recommendation with respect thereto. Accordingly, any person involved in an enforcement matter
before the Gommission who consents, or agrees to consent, to any judgment or order does so
solely for the purpose of resolving the claims against him in that investigative, civil, or
administrative matter and not for the purpose of resolving any criminal charges that have been, or
might be, brought against him. This policy reflects the fact that neither the Commission nor its staff
has the authority or responsibility for instituting, conducting, settling, or otherwise disposing of
criminal proceedings. That authority and responsibility are vested in the Attorney General and
representatives ofthe Department of Justice.
D. Freedom of Information Act
The Freedom of Information Act, 5 U.S.C. 552 (the FOIA"), generally provides for disclosure of information to the
public. Rule 83 of the Commission's Ftules on Information and Requests, 17 CFR 200.83, provides a procedure by
which a person can make a written request that information submitted to the Commission not be disdosed under the
FOIA. That rule states that no determination as to the validity of such a request will be made until a request for
disclosure of the information under the FOIA is received. Accordingly, no response to a request that information not
be disclosed under the FOIA is necessary or will be given until a request for disclosure under the FOIA is received. If
you desire an acknowledgment of receipt of your written request that information not be disclosed under the FOIA,
please provide a duplicate request, togetherwith a stamped, self-addressed envelope.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 19 of 23

E. Authority for Solicitation of Information


Persons Directed to Supply Information Pursuant to Subpoena. The authority for requiring production of information is
set forth in the subpoena. Disclosure of the information to the Commission is mandatory, subject to the valid assertion
of any legal right or privilege you might have.
Persons Requested to Supply Information Voluntarily. One or more of the following provisions authorizes the
Commission to solicit the information requested: Sections 19 and/or 20 of the Securities Act of 1933; Section 21 of
the Securities Exchange Act of 1934; Section 321 of the Trust Indenture Act of 1939; Section 42 of the Investment
Company Act of 1940; Section 209 of the Investment Advisers Act of 1940; and 17 CFR 202.5. Disclosure of the
requested information to the Commission is voluntary on your part.
F. Effect of Not Supplying Information
Persons Directed to Supply Information Pursuant to Subpoena. If you fail to comply with the subpoena, the
Commission may seek a court order requiring you to do so. If such an order is obtained and you thereafter fail to
supply the information, you may be subject to civil and/or criminal sanctions for contempt of court. In addition, if the
subpoena was issued pursuant to the Securities Exchange Act of 1934, the Investment Company Act of 1940, and/or
the Investment Advisers Act of 1940, and if you, without just cause, fail or refuse to attend and testify, or to answer
any lawful inquiry, or to produce books, papers, correspondence, memoranda, and other records in compliance with
the subpoena, you may be found guilty of a misdemeanor and fined not more than $1,000 or imprisoned for a term of
not more than one year, or both.
Persons Requested to Supply Information Voluntarily.T here are no direct sanctions and thus no direct effects for
failing to provide all or any part of the requested information.
G. Principal Uses of Information
The Commission's principal purpose in soliciting the information is to gather facts in order to determine whether any
person has violated, is violating, or is about to violate any provision of the federal securities laws or rules for which
the Commission has enforcement authority, such as rules of securities exchanges and the rules of the Municipal
Securities Rulemaking Board. Facts developed may, however, constitute violations of other laws or rules. Information
provided maybe used in Commission and other agency enforcement proceedings. Unless the Commission or its staff
explicitly agrees to the contrary in writing, you should not assume that the Commission or its staff acquiesces in,
accedes to, or concurs or agrees with, any position, condition, request, reservation of right, understanding, or any
other statement that purports, or may be deemed, to be or to reflect a limitation upon the Commission's receipt, use,
disposition, transfer, or retention, in accordance with applicable law, of information provided.
H. Routine Uses of Information
The Commission often makes its files available to other governmental agenaes, particularly United States Attorneys
and state prosecutors. There is a likelihood that information supplied by you will be made available to such agencies
where appropriate. Whether or not the Commission makes its files available to other governmental agencies is, in
general, a confidential matter between the Commission and such other governmental agencies.
Set forth below is a list of the routine uses which may be made of the information famished.
1. To appropriate agencies, entities, and persons when (a) it is suspected or confirmed that the security or
confidentiality of information in the system of records has been compromised;(b)the SEC has determined that, as a
result of the suspected or confirmed compromise, there is a risk of harm to economic or property interests, identity
theft or fraud, or harm to the security or integrity of this system or other systems or programs (whether maintained by
the SEC or another agency or entity) that rely upon the compromised information; and (c)the disclosure made to
such agenaes, entities, and persons is reasonably necessary to assist in connection with the SEC's efforts to
respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm.
2. To other federal, state, local, or foreign law enforcement agenaes; securities self-regulatory organizations; and
foreign financial regulatory authorities to assist in or coordinate regulatory or law enforcement activities with the SEC.
3. To national securities exchanges and national securities associations that are registered with the SEC, the
Municipal Securities Rulemaking Board; the Securities Investor Protection Corporation; the Public Company
Accounting Oversight Board; the federal banking authorities, including, but not limited to, the Board of Governors of
the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation; state
securities regulatory agencies or organizations; or regulatory authorities of a foreign government in connection with
their regulatory or enforcement responsibilities.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 20 of 23

4. By 5EC personnel for purposes of investigating possible violations of, or to conduct investigations authorized by
the federal securities laws.
5. In any proceeding where the federal securities laws are in issue or in which the Commission, or past or present
members of its staff, is a party or otherwise involved in an official capacity.
6. In connection with proceedings by the Commission pursuant to Rule 102(e) of its Rules of Practice, 17 CFR
201.102(e).
7. To a bar association, state accountancy board, or other federal, state, local, or foreign licensing or oversight
authority; or professional association or self-regulatory authority to the extent that it performs similar functions
(including the Public Company Accounting Oversight Board) for investigations or possible disciplinary action.
8. To a federal, state, local, tribal, foreign, or international agency, if necessary to obtain information relevant to the
SEC's decision concerning the hiring or retention of an employee; the issuance of a security clearance; the letting of
a contract; or the issuance of a license, grant, or other benefit.
9. To a federal, state, local, tribal, foreign, or international agency in response to its request for information
concerning the hiring or retention of an employee; the issuance of a security clearance; the reporting of an
investigation of an employee; the letting of a contract; or the issuance of a license, grant, or other benefit by the
requesting agency, to the extent that the information is relevant and necessary to the requesting agency's decision on
the matter.
10. To produce summary descriptive statistics and analytical studies, as a data source for management information,
in support of the function for which the records are collected and maintained or for related personnel management
functions or manpower studies; may also be used to respond to general requests for statistical information (without
personal identification of individuals) under the Freedom of Information Act.
11. To any trustee, receiver, master, special counsel, or other individual or entity that is appointed by a court of
competent jurisdiction, or as a result of an agreement between the parties in connection with litigation or
administrative proceedings involving allegations of violations of the federal securities laws (as defined in section
3(a)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)) or pursuant to the Commission's Rules of
Practice, 17 CFR 201.100 900 or the Commission's Rules of Fair Fund and Disgorgement Plans, 17 CFR
201.1100-1106, or othenrvise, where such trustee, receiver, master, special counsel, or other individual or entity is
specifically designated to perform particular functions with respect to, or as a result of, the pending action or
proceeding or in connection with the administration and enforcement by the Gommission of the federal securities laws
or the Commission's Rules of Practice or the Rules of Fair Fund and Disgorgement Plans.
12. To any persons during the course of any inquiry, examination, or investigation conducted by the SEC's staff, or in
connection with civil litigation, if the staff has reason to believe that the person to whom the record is disGosed may
have further information about the matters related therein, and those matters appeared to be relevant at the time to
the subject matter of the inquiry.
13. To interns, grantees, experts, contractors, and others who have been engaged by the Commission to assist in
the performance of a service related to this system of records and who need access to the records for the purpose of
assisting the Commission in the efficient administration of its programs, including by performing clerical,
stenographic, or data analysis functions, or by reproduction of records by electronic or other means. Recipients of
these records shall be required to comply with the requirements of the Privacy Act of 1974, as amended,5 U.S.C.
552a.
14. In reports published by the Commission pursuant to authority granted in the federal securities laws (as such term
is defined in section 3(a)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)), which authority shall
include, but not be limited to, section 21(aj of the Securities Exchange Act of 1934, 15 U.S.C. 78u(a)).
15. To members of advisory committees that are created by the Commission or by Congress to render advice and
recommendations to the Commission or to Congress, to be used solely in connection with their official designated
functions.
16. To any person who is or has agreed to be subject to the Commission's Rules of Conduct, 17 CFR 200.735-1 to
200.735-18, and who assists in the investigation by the Commission of possible violations of the federal securities
laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)), in the
preparation or conduct of enforcement actions brought by the Commission for such violations, or otherwise in
connection with the Commission's enforcement or regulatory functions under the federal securities laws.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 21 of 23

17. To a Congressional office from the record of an individual in response to an inquiry from the Congressional office
made at the request of that individual.
1 S. To members of Congress, the press, and the pubic in response to inquiries relating to particular Registrants and
their activities, and other matters under the Commission's jurisdiction.
19. To prepare and publish information relating to violations of the federal securities laws as provided in 15 U.S.C.
78c(a)(47)), as amended.
20. To respond to subpoenas in any litigation or other proceeding
21. To a trustee in bankruptcy.
22. To any governmental agency, governmental or private collection agent, consumer reporting agency or
commercial reporting agency, governmental or private employer of a debtor, or any other person, for collection,
including collection by administrative offset, federal salary offset, tax refund offset, or administrative wage
garnishment, of amounts owed as a result of Commission civil or administrative proceedings.

Small Business Owners: The SEC always welcomes comments on how it can better assist small businesses. If you
would like more information, or have questions or comments about federal securities regulations as they affect small
businesses, please contact the Office of Small Business Policy,in the SEC's Division of Corporation Finance, at 202551-3460. If you would prefer to comment to someone outside of the SEC, you can contact the Small Business
Regulatory Enforcement Ombudsman at http://www.sba.gov/ombudsman or toll free at 888-REG-FAIR. The
Ombudsman's office receives comments from small businesses and annually evaluates federal agency enforcement
activities for their responsiveness to the special needs of small business.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 22 of 23

Johnson, Angela (Contractor)


UPS Quantum View <pkginfo@ups.com>
Friday, April 22, 2016 9:52 AM
Johnson, Angela (Contractor)
UPS Delivery Notification, Tracking Number 1ZA3749A0199750124

From:
Sent:
To:
Subject:

Your package has been delivered.


pelivery Date:

Friday, 04/22J2016

Delivery Time:

09:41 AM

At the request of SEC ATLANTA REG OFFICE, this notice is to confirm that following shipment has been
delivered.

Shipment Detail
Tracking Number:

Ship To:

1ZA3749A019975C?124
Alex Rue, Esq.
Alex Rue Law, LLC
4062 PEACHTREE RD NE
ATLANTA, GA 30319
US

UPS Service:

NEXT DAY AIR

Number of Packages:

Weight:

0.5 LBS

Delivery Location:

INSIDE DELIVERY

Signed by:

HAM

Reference Number 1:

A-03672

;Get
`

~ - Download the UPS mobile app

the UPS My Choice app for Facebook

OO 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are
trademarks of United Parcel Service of America, Inc. All rights reserved.

Case 1:16-mi-00041-WSD-CMS Document 1-12 Filed 06/15/16 Page 23 of 23

All trademarks, trade names, or service marks that appear in connection with UPS's services are the
property of their respective owners.
Please do not reply directly to this e-mail. UP5 will not receive any reply message.
For more information on UPS's privacy practices, refer to the UPS Privacy Notice.
For questions or comments, visit Contact UPS.
This communication contains proprietary information and may be conFdential. If you are not the intended
recipient, the reading, copying, disclosure or other use of the contents of this e-mail is strictly prohibited
and you are instructed to please delete this e-mail immediately.

UPS Privacy Notice


Contact UPS

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 1 of 23

EXHIBIT K
Megan Ruettiger's Apri121,2016 subpoena package and the United Parcel
Service proof of delivery.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 2 of 23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
ATLANTA REGIONAL OFFICE
950 East Paces Ferry Road, N.E. Suite 900
Atlanta, Georgia 30326-1382
Telephone: (404)842-7680
Facsimile: (404)842-7633

Edward H. Saunders
Senior Counsel

Apri121, 2016
VIA E-MAIL
alex(a,alexruelaw.com
VIA UNITED PARCEL SERVICE
Megan Ruettiger
c/o Alex Rue, Esq.
A 1exRueLaw,LLC
4062 Peachtree Road, Suite 511
Atlanta, Georgia 30319
Re:

In The Matter of Sonant Communications Corp., and Certain Other Issuers(A-03672)

Dear Ms. Ruettiger:


The staff ofthe U.S. Securities and Exchange Commission is conducting an investigation
identified above. The enclosed subpoena has been issued to you as part ofthis
matter
the
in
investigation. The subpoena requires you to provide sworn testimony. Please read the subpoena
and this letter carefully. This letter answers some questions you may have about the subpoena.
You should also read the enclosed SEC Form 1662. You must comply with the subpoena. You
may be subject to a fine if you do not. We have also included a Background Questionnaire form.
Please complete the enclosed form and return it to us prior to your scheduled testimony.
Testi in

Where and when do I testify?


The subpoena requires you to come to the Atlanta office of the United States Securities
and Exchange Commission, 950 East Paces Ferry Road, N.E. Suite 900, Atlanta, Georgia 303261382 on Tuesday, May 17, 2016 at 9:30 a.m. to testify under oath in the matter identified on the
subpoena.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 3 of 23

Megan Ruettiger
Apri121, 2016
Page 2 of2
Other Important Information

What will the Commission do with the testimony Iprovide?


The enclosed SEC Form 1662 includes a List of Routine Uses ofinformation provided to
the Commission. This form has other important information for you. Please read it carefully.

Has the Commission determined that anyone has done anything wrong?
This investigation is anon-public, fact-finding inquiry. We are trying to determine
whether there have been any violations of the federal securities laws. The investigation and the
subpoena do not mean that we have concluded that you or anyone else has broken the law. Also,
the investigation does not mean that we have a negative opinion of any person, entity or security.
Important Policy Concerning Settlements
Please note that, in any matter in which enforcement action is ultimately deemed to be
warranted, the Division ofEnforcement will not recommend any settlement to the Commission
unless the party wishing to settle certifies, under penalty of perjury, that all documents responsive
to Commission subpoenas and formal and informal document requests in this matter have been
produced.
I have read this letter, the subpoena, and the SEC Form 1662, but I still have questions. What
should 1 do?
If you have any other questions, you may call me at(404)842-7680.
Sincerely,
~-J~-~
Edward H. Saunders
Senior Counsel
Division. of Enforcement

Enclosures:

Subpoena
Background Questionnaire
SEC Form 1662

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 4 of 23

~~-sr
IiIII~JFti
~~~
::a

SUBPOENA

UNITED STATES OF AMERICA


SECURITIES AND EXCHANGE COMMISSION
In The Matter of Sonant Communications Corp., and Certain Other Issuers(A-03672
Megan Ruettiger
c/o Alex Rue, Esq.
AlexRueLaw,LLC
4062 Peachtree Road, Suite 511
Atlanta., Georgia 30319

YOU MUST TESTIFY before officers ofthe Securities and Exchange Commission at the place,
date and time specified below: United States Securities and Exchange Commission,950 East Paces
Ferry Road, N.E., Suite 900, Atlanta, Georgia 30326-1382 on Tuesday, May 17,2016 at 9:30 a.m.

FEDERAL LAW REQUIRES YOU TO COMPLY WITH THIS SUBPOENA.


Failure to comply may subject you to a fine and/or imprisonment.

By:

z-~~%''~`/ ~~
Edward H. Saunders
Senior Counsel
Division ofEnforcement

-~.

Date: April 21, 2016

I am an officer of the Securities and Exchange Commission authorized to issue subpoenas in this
matter. The Securities and Exchange Commission has issued a formal order authorizing this
investigation under Section 20(a)ofthe Securities Act of 1933("Securities Act")and Section 21(a)
of the Securities Exchange Act of 1934. The Commission has also issued an Order ofExamination
under Section 8(e) ofthe Securities Act.

NOTICE TO WITNESS:

If you claim a witness fee or mileage, submit this subpoena with the claim voucher.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 5 of 23

BACKGROUND QUESTIONNAIRE
Please respond to the following questions in the space provided. if ~~ou need additional
space for any response, you may attach additional pieces of paper.

Today's date:
1. What is your full name?

2. Have you ever been known by any other name? Yes _ No _


If yes, list each such name and the periods) in which you were known by that name.

3. Date and Place of Birth?

4. Country of Citizenship?

5. Marital Status? Married _Divorced _Single _


If you ha~e ever been married, state for each marriage:(i) the dates)of the marriage;
(ii) the name of your spouse;(iii) your spouse's birth name, if different;(iv) your
spouse's age; and(v) your spouse's occupation.

6. List the names, ages and occupations of your children, if any.

7. List al} residences you occupied at any time during the last [three) years, including
vacation homes, beginning with your current residence. For each residence, state the
address, dates of residence, and all telephone nunnbers(including facsimile numbers)
listed at that address.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 6 of 23

.Background Questionnaire
Page 2

(e.g.,

8. List all telephone numbers and telecommunication services that were in your name or
that you regularly used at any time during the last [ttlree] years. Include all residential,
business, cellular, credit card, and VOTP telephone numbers, including those listed in
your response to question 7, and services such as GoogleVoice, Skype, video conference
services. For each telephone number, state the names)of the corresponding carriers)
AT&T, Verizon, Vonage, Skype, etc.).

(e.g.

9. List the universal resource locator(URL)for all websites or blogs that you established or
for which you had the authority to control content, at any time during the last [three]
GoDaddy)
years. For each website, state the names)of the domain name registrar
or
all
who
entities
of
individuals
names)
the
obtained,
was
URL
the
through which
primarily
website
contained
the
whether
provided web site hosting or design services,
business or personal information, and the time period in which it was active.

(e.g.,

(e.g.

Facebook,
10. List all electronic mail addresses and social networking accounts
+)
or that you
name
your
in
that
were
Google
and
Flickr,
Instagram,
LinkedIn, Twitter,
business and
all
(three]
personal,
Include
years.
regularly used at any time during the last
shared electronic mail addresses and social networking accounts. For each electronic
mail address and social networking account, state the names)ofthe corresponding
Google, Yahoo, AOL,or your employer), whether the
Internet service providers)
address was used primarily for business or personal correspondence, and the time period
in which it was active.

(e.g.,

11. List all usernames for instant messaging and similar electronic communication services
(including, but not limited to, Bloomberg, Skype, whatsapp), other than those listed in
your response to questions 8 through 10, that were in your name or that you regularly
used at any time during the last [three] years. Include all personal, business and shared
addresses. For each username, state the names)of the communication service provider
Google, AOL,etc.), whether the address was used primarily for business or

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 7 of 23

Background Questionnaire
Page 3
personal correspondence, the time period in which it was active, and the name of the
software applications)(e.g., GTakk,ICQ, MSN Messenger) you used to access it.

12. List all Internet message boards or discussion forums (including, but not limited to,
Money Maker Group,PNQI Message Board, Investors Hub Daily) of which you were a
member or on which you posted any messages at any time during the last [three] years.
For each message board or discussion forum, state the service provider and your member
name or identification information.

PUBLICLY-HELD COMPANIES
13. Are you now, or have you ever been, an officer or director of any publicly-held
company? Yes _ No
If yes, identify each such company, its CUSIP,and any exchange on which it is or was
listed, and state your positions(including membership on any Board or management
committees) and the dates you held. each position.

14. Are you now,or have you ever been, a benefccial owner, directly or indirectly, of five per
cent or more of any class of equity securities of any publicly held company? Yes _ No _
If yes, identify each such company, its CUSIP, and any exchange on which it is or was
listed, and state the amount, percentage, and dates of your ownership.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 8 of 23

Background Questionnaire
Page 4
PRIVATELY-HELD COMPANIES
Are you now, or have you ever been, a beneficial owner, directly or indirectly, of any
corporation, partnership, limited liability company or other
privately-held company
No_
corporate form)? Yes_
(i.e.,

15.

If yes, identify each such company, including address and other contact information, and
state your positions and the dates you he}d each position.

Are you now, or have you ever been, a manager or a member of any privately-held
corporation, partnership, limited liability company or other corporate
company
form)? Yes_ No_
(i.e.,

16.

If yes, identify each such company, including address and other contact information, and
state your positions and the dates you held each position.

SECURITIES ACCOUNTS

(i.e.,

17. List all securities or brokerage accounts that you have held in your name, individually or
jointly, at any time during the last [three] years. Include all foreign accounts. For each
such account, identify:(i)the brokerage firm;(ii) the location of the branch where your
cash, margin or
account is or was held;(iii) your broker;(iv) the type of account
ever
discretionary
held
has
person
any
whether
(vi)
IRA);(v)the account number; and
person(s).
authority or power of attorney over the account; if so, name such

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 9 of 23

Background Questionnaire
Page 5
18. List all securities or brokerage accounts (including foreign accounts), other than those
listed in your answer to question 17, in which you had any direct or indirect beneficial
interest at any time during the last [three] years. For each such account, provide the
information requested by question 17.

19. List all securities or brokerage accounts(including foreign accounts), other than those
listed in your answer to question 17 or 18, over which you had any control at any time
during the last [three] years. For each such account, provide the information requested by
question 17.

BANK ACCOUNTS

(i.e.,

(i.e.,

bank, thrift,
20. List all accounts you have held in your name at any financial institution
all
accounts.
or credit union) at any time during the last [three] years. Include foreign
For each such account, identify:(i) the financial institution; (ii) the address of the branch
checking,savings,
at which your account is or was held;(iii) the type of account
any
person has ever had
(v)
whether
and
number;
money market or IRA);(iv)the account
such person(s).
name
discretionary authority or power of attorney over the account; if so,

21. List all accounts at financial institutions (including foreign accounts), other than those
listed in your answer to question 20, in which you had any direct or indirect beneficial
interest at any time during the last [three) years. Por each such account, provide the
information requested by question 20.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 10 of 23

Background Questionnaire
Page 6

22. List all accounts at financial institutions (including foreign accounts), other than those
listed in your answer to question 20 or 21, over which you had any control at any time
during the last [three] years. for each such account, provide the inforn~ation requested by
question 20.

23. List any other accounts (including foreign accounts), other than those listed in your
answers to questions 20 through 22, that were held in your name, in which you had any
director indirect beneficial interest, or over which you had any control, that you have
used to transfer funds in the last [three] years, including, but not limited to, PayPal
accounts. For each such account, provide the information requested by question 20.

PRIOR PROCEEDINGS
24. Have you ever testified in any proceeding conducted by the staff of the Securities and
Exchange Commission, a U.S. or foreign federal or state agency, a U.S. or foreign federal
- - -- or state court, a stock exchange, the Financial Industry Regulatory Authority("FINRA")
or any other self-regulatory organization("SRO"), or in any arbitration proceeding
No
related to securities transactions? Yes
If yes, for each such proceeding, identify:(i) the title ofthe proceeding;(ii) the
organization or agency; and (iii) the dates)on which you testified.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 11 of 23

Background Questionnaire
Page 7
25. Have you ever been deposed in connection with any court proceeding? Yes _ No
If yes, for each such proceeding, identify:(i) the title of the proceeding, and (ii) the
dates) on which you were deposed.

26. Have you ever been named as a defendant or respondent in any action or proceeding
brought by the SEC, any other U.S. or Foreign federal agency, a state securities agency,
FINRA,an SRO,or any exchange? Yes _ No _
If yes, for each such proceeding, identify:(i) the title of the proceeding;(ii) the agency or
tribunal; (iii) the substance of the allegations;(iv) the outcome of the proceeding; and
(v)the date of the outcome.

27. Have you ever been a defendant in any action (other than those listed in response to
question 26)alleging violations of the federal securities laws? Yes _ No _
If yes; for~each such proceeding, identify:(i)the title of the proceeding;(ii) the court or
tribunal;(iii) the outcome of the proceeding; and (iv) the date of the outcome.

28. Have you ever been a defendant in any criminal proceeding other than one involving a
No
minor traffic offense? Yes
If yes, for each such proceeding, identify:(i) the title of the proceeding;(ii) the court or
tribunal;(iii) the outcome of the proceeding; and (iv) the date of the outcome.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 12 of 23

Background Questionnaire
Page R
EDUCATIONAL HIS"TORY
29. Provide the requested information about each educational institution that you have
attended, beginning wit11 the most recent and working backward to the date that you
completed high school.

Name of School

Ciry

Siate

Dates oCA~tendance: Monih/Year to Month/Year

Country

"Lip Cale

Degree/Major

Month/Year of Degree

Country

Zip Code

Degree/Major

Monih/Ycar o(Degren

Country

Zip Codt

Degee/Major

Month/Year of Degree

Country

Zip Code

DegreelMajor

Month/1ear of Degree

Namc of School

Ciry

Siate

Oates of Anendance: Month/Year w Montl~/Year

Name of School

Ciry

State

Dates oAttendance: Month/Year to Month/Year

Name of School

City

State

Daces of Attendance: Month/Year to Month/Ycar

30. Other than courses taken in connecrion with institutions listed in response to question 29,
list any securities, accounting or business related courses taken since high school. For
each such course, identify the date that the course was completed and the name of the
institution or organization that offered the course.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 13 of 23

Background Questionnaire
Page 9
PROFESSIONAL LICENSES/CLUBS
31. Do you hold, or have you ever held, any professional license? Yes_ No
If yes, for each such license, identify:(i) the license number or attorney bar number;
(ii) the licensing organization;(iii) the date the license was awarded;(iv) the date such
license tern~inated, if applicable;(v)the dates)of any disciplinary proceedings)against
you: and (vi) the outcome of any such disciplinary proceeding (e.g., reprimand,
suspension, revocation).

32. Are you, or have you ever been, a member of any professional or business club or
organization? Yes _ No
If yes, list for each:(i) the name of the club or organization;(ii) its address;(iii) the
dates)of your membership; and (iv) service in any governance roles (e.g., board
member, committee member,etc.) including title and dates of service.

33. Are you, or have you been in the last [three] years, a member of any social clubs,
charities or nonprofit organizations? Yes _ No _
If yes, list for each:(i) the name of the social club, charity or nonprofit organization;
(ii) its address;(iii) the dates)of your membership; and (iv) service in any governance
roles (e.g., board member, committee member, etc.) including title and dates of service..

EMPLOYMENT HISTORY
34. Are you, or have you ever been, an employee ofa broker, dealer, investment adviser,
investment company, municipal securities dealer, municipal advisor, transfer agent, or

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 14 of 23

Background Questionnaire
Page 10
nationally recognized statistical rating organization? Yes _ No
If yes, list for each:(i) the jurisdiction of the entity; (ii) your CRD number;(iii) the
entity's CRD number;(iv) the entity's SEC File number;(v)the entity's CUSIP number;
and (vi) any foreign registration information similar to the foregoing.

35. State your employment activities, beginning with the present and working backward to
the date that you completed high school and attach a recent copy of your resume or
curriculum vitae.

Employer's Name/Self-Employment
Telephone Number

Employer's Street Address


Country

Zip Code

Ciry

State

Title

Dates of Employment

Supervisor

Title

Dates of Employment

Supervisor

Tide

Dales of Employment

Supervisor

IYates of Employment

Supervisor

Employer's Name/Self-Employment
Telephone Number

Employer's Sweet Address


Ciry

Siate

Country

Zip Code

Dates oC Employment

Title

Dates of Employment

Supervisor

Title

Dates of Employment

Supmisor

Dates of[anploymcm

Supervisor

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 15 of 23

Background Questionnaire
Page 11

Employer's Name/Self-Employment
Telephone Number

Employer's Street Address


State

Cily

Title

?_ip Code

Country

Dateso(Employment

Supervisor'

Title

Dates of Employment

Supervisor

Tiilc

Dates of Employment

Supervisor

Title

Dates of Employment

Super~~sor

Employer's NamdSelf-Employment
Telephone Number

Employer's Sveet Address


Country

Zip Codc

Ciry

State

Tide

Dates of Employment

Supervisor

Title

Dates of Employment

Supervisor

Title

Dates of Employment

Supervisor

Title

Dates of Employment

Superviwr

Employer's NameJSelf-Employment
Telephone Humber

Employer's SUeei Address


Country

Zip Code

Ciry

Stale

'I'ittc

Dates of Employment

Supervisor

Tide

Dates of Employment

Supervisor

Ti~lc

Datums of Employmem

Supervisor

Tide

Data of Employment

Supervisor

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 16 of 23

Background Questionnaire
Page 12

i3mploycr's NamelSelGHmploymcm
Street Address

T~Icphone Number

Ciry

State

Title

Dales of Employment

Title

Dales of Employment

Title

Dates of Employment

Dales o(Gmploymeni

Country

Zip Code

Supervisor

Supervisor

Supervisor

CONTINUE ON ADDITIONAL SHEETS IF NECESSARY

~T

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 17 of 23

SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549
Supplemental Information for Persons Requested to Supply
Information Voluntarily or Directed to Supply Information
Pursuant to a Commission Subpoena
A. False Statements and Documents
Section 1001 of Title 18 of the United States Code provides as follows:
~W]hoever, in any matter within the jurisdiction of the executive, legislative, orjudicial branch of the
Government of the United States, knowingly and willfully-(1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact;
(2) makes any materially false, fictitious, or fraudulent statement or representation; or
(3) makes or uses any false writing or document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry;
shall be fined under this title, imprisoned not more than 5 years ... or both.
B. Testimony
If your testimony is taken, you should be aware of the following:
1.

Record. Your testimony will be transcribed by a reporter. If you desire to go off the record, please indicate this to
the Commission employee taking your testimony, who will determine whether to grant your request. The reporter
will not go off the record at your, or your counsel's, direction.

2. Counsel. You have the right to be accompanied, represented and advised by counsel of your choice. Your
counsel may advise you before, during and after your testimony; question you briefly at the conclusion of your
testimony to clarify any of the answers you give during testimony; and make summary notes during your
testimony solely for your use. If you are accompanied by counsel, you may consult privately.
if you are not accompanied by counsel, please advise the Commission employee taking your testimony if, during the
testimony, you desire to be accompanied, represented and advised by counsel. Your testimony will be adjourned
once to afford you the opportunity to arrange to be so accompanied, represented or advised.
You may be represented by counsel who also represents other persons involved in the Commission's investigation.
This multiple representation, however, presents a potential conflict of interest if one clients interests are or may be
adverse to another's. If you are represented by counsel who also represents other persons involved in the
investigation, the Commission will assume that you and counsel have discussed and resolved ail issues concerning
possible conflicts of interest. The choice of counsel, and the responsibility for that choice, is yours.
3.

Transcript Availability. Rufe 6 of the Commission's Rules Relating to Investigations, 17 CFR 203.6, states:
A person who has submitted documentary evidence or testimony in a formal investigative proceeding
shall be entitled, upon written request, to procure a copy of his documentary evidence or a transcript of
his testimony on payment of the appropriate fees: Provided, however, That in a nonpublic formal
investigative proceeding the Commission may for good cause deny such request. In any event, any
witness, upon proper identification, shall have the right to inspect the official transcript of the witness'
own testimony.

If you wish to purchase a copy of the transcript of your testimony, the reporter will provide you with a copy of the
appropriate form. Persons requested to supply information voluntarily will be allowed the rights provided by this rule.
4. Perjury. Section 1621 of Title 18 of the United States Code provides as follows:
Whoever-(1)having taken an oath before a competent tribunal, officer, or person, in any case in which a law of
the United States authorizes an oath to be administered, that he will testify, declare, depose, or certify
truly, or that any written testimony, declaration, deposition, or certificate by him subscribed, is true,
willfully and contrary to such oath states or subscribes any material matter which he does not believe to
be true; or
SEC 1662(09-14)

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 18 of 23

(2) in any declaration, certificate, verification, or statement under penalty of perjury as permitted under
section 1746 of title 28, United States Code, willfully subscribes as true any material matter which he
does not believe to be true;
is guilty of perjury and shall, except as otherwise expressly provided by law, be fined under this title or
imprisoned not more than five years, or both.
5. Fifth Amendment and Voluntary Testimony.in formation you give may be used against you in any federal, state,
local or foreign administrative, civil or criminal proceeding brought by the Commission or any other agency.
You may refuse, in accordance with the rights guaranteed to you by the Fifth Amendment to the Constitution of the
United States, to give any information that may tend to incriminate you.
If your testimony is not pursuant to subpoena, your appearance to testify is voluntary, you need not answer any
question, and you may leave whenever you wish. Your cooperation is, however, appreaated.
6. Formal Order Availability.) fthe Commission has issued a formal order of investigation, it will be shown to you
during your testimony, at your request. If you desire a copy of the formal order, please make your request in writing.
C. Submissions and Settlements
Rule 5(c) of the Commission's Rules on Informal and Other Procedures, 17 CFR 202.5(c), states:
Persons who become involved in ...investigations may, on their own initiative, submit a written
statement to the Commission setting forth their interests and position in regard to the subject matter
of the investigation. Upon request, the staff, in its discretion, may advise such persons of the
general nature of the investigation, including the indicated violations as they pertain to them, and
the amount of time that may be available for preparing and submitting a statement prior to the
presentation of a staff recommendation to the Commission for the commencement of an
administrative or injunction proceeding. Submissions by interested persons should be forwarded to
the appropriate Division Director or Regional Director with a copy to the staff members conducting
the investigation and should be clearly referenced to the specific investigation to which they relate.
In the event a recommendation for the commencement of an enforcement proceeding is presented
by the staff, any submissions by interested persons will be forwarded to the Commission in
conjunction with the staff memorandum.
The staff of the Commission routinely seeks to introduce submissions made pursuant to Rule 5(c) as evidence in
Commission enforcement proceedings, when the staff deems appropriate.
Rule 5(fl of the Commission's Rules on Informal and Other Procedures, 17 CFR 202.5(fl, states:
In the course of the Commission's investigations, civil lawsuits, and administrative proceedings, the
staff, with appropriate authorization, may discuss with persons involved the disposition of such
matters by consent, by settlement, or in some other manner. it is the policy of the Commission,
however, that the disposition of any such matter may not, expressly or impliedly, extend to any
criminal charges that have been, or may be, brought against any such person or any
recommendation with respect thereto. Accordingly, any person involved in an enforcement matter
before the Commission who consents, or agrees to consent, to any judgment or order does so
solely for the purpose of resolving the claims against him in that investigative, civil, or
administrative matter and not for the purpose of resolving any criminal charges that have been, or
might be, brought against him. This policy reflects the fact that neither the Commission nor its staff
has the authority or responsibility for instituting, conducting, settling, or otherwise disposing of
criminal proceedings. That authority and responsibility are vested in the Attorney General and
representatives of the Department of Justice.
D. Freedom of Information Act
The Freedom of Information Act, 5 U.S.C. 552(the "FOIA"), generally provides for disclosure of information to the
public. Rule 83 of the Commission's Rules on Information and Requests, 17 CFR 200.83, provides a procedure by
which a person can make a written request that information submitted to the Commission not be disclosed under the
FOIA. That rule states that no determination as #o the validity of such a request will be made until a request for
disclosure of the information under the FOIA is received. Accordingly, no response to a request that information not
be disclosed under the FOIA is necessary or will be given until a request for disclosure under the FOIA is received. If
you desire an acknowledgment of receipt of your written request that information not be disclosed under the FOIA,
please provide a duplicate request, together with a stamped, self-addressed envelope.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 19 of 23

E. Authority for Solicitation of Information


Persons Directed to Supply Information Pursuant to Subpoena.The aut hority for requiring production of information is
set forth in the subpoena. Disclosure of the information to the Commission is mandatory, subject to the valid assertion
of any legal right or privilege you might have.

Persons Requested to Supply Information Voluntarily. One or more of the following provisions authorizes the
Commission to solicit the information requested: Sections 19 and/or 20 of the Securities Act of 1933; Section 21 of
the Securities Exchange Act of 1934; Section 321 of the Trust Indenture Act of 1939; Section 42 of the Investment
Company Act of 1940; Section 209 of the Investment Advisers Act of 1940; and 17 CFR 202.5. Disclosure of the
requested information to the Commission is voluntary on your part.
F. Effect of Not Supplying Information
Persons Directed to Supply Information Pursuant to Subpoena.lf you f ail to comply with the subpoena, the
Commission may seek a court order requiring you to do so. If such an order is obtained and you thereafter fail to
supply the information, you may be subject to civil and/or criminal sanctions for contempt of court. In addition, if the
subpoena was issued pursuant to the Securities Exchange Act of 1934, the Investment Gompany Act of 1940, and/or
the Investment Advisers Act of 1940, and if you, without just cause, fail or refuse to attend and testify, or to answer
any lawful inquiry, or to produce books, papers, correspondence, memoranda, and other records incompliance with
the subpoena, you may be found guilty of a misdemeanor and fined not more than $1,000 or imprisoned for a term of
not more than one year, or both.
Persons Requested to Supply Infoanafion Voluntarily.There are no direct sanctions and thus no direct effects for
failing to provide all or any part of the requested information.
G. Principal Uses of Information
The Commission's principal purpose in soliciting the information is to gather facts in order to determine whether any
person has violated, is violating, or is about to violate any provision of the federal securities laws or rules for which
the Commission has enforcement authority, such as rules of securities exchanges and the rules of the Municipal
Securities Rulemaking Board. Facts developed may, however, constitute violations of other laws or rules. Information
provided may be used in Commission and other agency enforcement proceedings. Unless the Commission or its staff
explicitly agrees to the contrary in writing, you should not assume that the Commission or its staff acquiesces in,
accedes to, or concurs or agrees with, any position, condition, request, reservation of right, understanding, or any
other statement that purports, or may be deemed, to be or to reflect a limitation upon the Commission's receipt, use,
disposition, transfer, or retention, in accordance with applicable law, of information provided.
H. Routine Uses of Information
The Commission often makes its files available to other governmental agencies, particularly United States Attorneys
and state prosecutors. There is a likelihood that information supplied by you will be made available to such agencies
where appropriate. Whether or not the Commission makes its files available to other governmental agencies is, in
general, a confidential matter between the Commission and such other governmental agencies.
Set forth below is a list of the routine uses which may be made of the information furnished
1. To appropriate agencies, entities, and persons when (a) it is suspected or confirmed that the security or
confidentiality of information in the system of records has been compromised;(b) the SEC has determined that, as a
result of the suspected or confirmed compromise, there is a risk of harm to economic or property interests, identity
theft or fraud, or harm to the security or integrity of this system or other systems or programs(whether maintained by
the SEC or another agency or entity) that rely upon the compromised information; and (c) the disclosure made to
such agencies, entities, and persons is reasonably necessary to assist in connection with the SEC's efforts to
respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm.
2. To other federal, state, local, or foreign law enforcement agencies; securities self-regulatory organizations; and
foreign financial regulatory authorities to assist in or coordinate regulatory or law enforcement activities with the SEC.
3. To national securities exchanges and national securities associations that are registered with the SEC, the
Municipal Securities Rulemaking Board; the Securities Investor Protection Corporation; the Public Company
Accounting Oversight Board; the federal banking authorities, including, but not limited to, the Board of Governors of
the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation; state
securities regulatory agencies or organizations; or regulatory authorities of a foreign government in connection with
their regulatory or enforcement responsibilities.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 20 of 23

4. By SEC personnel for purposes of investigating possible violations of, or to conduct investigations authorized by,
the federal securities laws.
5. In any proceeding where the federal securities laws are in issue or in which the Commission, or past or present
members of its staff, is a party or othervise involved in an official capacity.
6. In connection with proceedings by the Commission pursuant to Rule 102(e)of its Rules of Practice, 17 CFR
201.102(e).
7. To a bar association, state accountancy board, or other federal, state, local, or foreign licensing or oversight
authority; or professional association or self-regulatory authority to the extent that it performs similar functions
(including the Public Company Accounting Oversight Board)for investigations or possible disciplinary action.
8. To a federal, state, local, tribal, foreign, or international agency, if necessary to obtain information relevant to the
SEC's decision concerning the hiring or retention of an employee; the issuance of a security clearance; the letting of
a contract; or the issuance of a license, grant, or other benefit.
9. To a federal, state, local, tribal, foreign, or international agency in response to its request for information
concerning the hiring or retention of an employee; the issuance of a security clearance; the reporting of an
investigation of an employee; the letting of a contract; or the issuance of a license, grant, or other benefit by the
requesting agency, to the extent that the information is relevant and necessary to the requesting agency's decision on
the matter.
10. To produce summary descriptive statistics and analytical studies, as a data source for management information,
in support of the function for which the records are collected and maintained or for related personnel management
functions or manpower studies; may also be used to respond to general requests for statistical information (without
personal identification of individuals) under the Freedom of Information Act.
11. To any trustee, receiver, master, special counsel, or other individual or entity that is appointed by a court of
competent jurisdiction, or as a result of an agreement between the parties in connection with litigation or
administrative proceedings involving allegations of violations of the federal securities laws (as defined in section
3(a)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)) or pursuant to the Commission's Rules of
Practice, 17 CFR 201.100 900 or the Commission's Rules of Fair Fund and Disgorgement Plans, 17 CFR
201.1100-1106, or otherwise, where such trustee, receiver, master, special counsel, or other individual or entity is
specifically designated to perform particular functions with respect to, or as a result of, the pending action or
proceeding or in connection with the administration and enforcement by the Commission of the federal securities laws
or the Commission's Rules of Practice or the Rules of Fair Fund and Disgorgement Plans.
12. To any persons during the course of any inquiry, examination, or investigation conducted by the SEC's staff, or in
connection with civil litigation, if the staff has reason to believe that the person to whom the record is disclosed may
have further information about the matters related therein, and those matters appeared to be relevant at the time to
the subject matter of the inquiry.
13. To interns, grantees, experts, contractors, and others who have been engaged by the Commission to assist in
the performance of a service related to this system of records and who need access to the records for the purpose of
assisting the Commission in the efficient administration of its programs, including by performing clerical,
stenographic, or data analysis functions, or by reproduction of records by electronic or other means. Recipients of
these records shall be required to comply with the requirements of the Privacy Act of 1974, as amended,5 U.S.C.
552a.
14. In reports published by the Commission pursuant to authority granted in the federal securities laws(as such term
is defined in section 3(a)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)), which authority shall
include, but not be limited to, section 21(a) of the Securities Exchange Act of 1934, 15 U.S.C. 78u(a)).
15. To members of advisory committees that are created by the Commission or by Congress to render advice and
recommendations to the Commission or to Congress, to be used solely in connection with their official designated
functions.
16. To any person who is or has agreed to be subject to the Commission's Rules of Conduct, 17 CFR 200.735-1 to
200.735-18, and who assists in the investigation by the Commission of possible violations of the federal securities
laws(as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(47)), in the
preparation or conduct of enforcement actions brought by the Commission for such violations, or othervvise in
connection with the Commission's enforcement or regulatory functions under the federal securities laws.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 21 of 23

17. To a Congressional office from the record of an individual in response to an inquiry from the Congressional office
made at the request of that individual.
18. To members of Congress, the press, and the public in response to inquiries relating to particular Registrants and
their activities, and other matters under the Commission's jurisdiction.
19. To prepare and publish information relating to violations of the federal securities laws as provided in 15 U.S.C.
78c(a)(47)), as amended.
20. To respond to subpoenas in any litigation or other proceeding.
21. To a trustee in bankruptcy.
22. To any governmental agency, governmental or private collection agent, consumer reporting agency or
commercial reporting agency, governmental or private employer of a debtor, or any other person, for collection,
including collection by administrative offset, federal salary offset, tax refund offset, or administrative wage
garnishment, of amounts owed as a result of Commission civil or administrative proceedings.

Sma11 Business Owners: The SEC always welcomes comments on how it can better assist small businesses. If you
would like more information, or have questions or comments about federal securities regulations as they affect small
businesses, please contact the Office of Small Business Policy,in t he SEC's Division of Corporation Finance, at 202551-3460. If you would prefer to comment to someone outside of the SEC, you can contact the Small Business
Regulatory Enforcement Ombudsman at http://www.sba.gov/ombudsman or toll free at 888-REG-FAIR. The
Ombudsman's office receives comments from small businesses and annually evaluates federal agency enforcement
activities for their responsiveness to the special needs of small business.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 22 of 23

Johnson, Angela (Contractor)


UPS Quantum View <pkginfo@ups.com>
Friday, April 22, 2016 9:52 AM
Johnson, Angela (Contractor)
UPS Delivery Notification, Tracking Number 1ZA3749A0199750124

From:
Sent:
To:
Subject:

Your package has been delivered.


Delivery Date:

Friday, 04/22J2016

Delivery Time:

09:41 AM

At the request of SEC ATLANTA REG OFFICE, this notice is to confirm that following shipment has been
delivered.

Shipment Detail
Tracking Number:

Ship To:

12A3749Afl19975Q124
Alex Rue, Esq.
Alex Rue Law, LLC
4062 PEACHTREE RD NE
ATLANTA, GA 30319
US

UPS Service:

NEXT DAY AIR

Number of Packages:

Weight:

0.5 LBS

Delivery Location:

INSIDE DELIVERY

Signed by:

HAM

Reference Number 1:

A-03672

~ _ Download the UPS mobile app

(~ _Get the UPS My Choice app for Facebook

OO 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are
trademarks of United Parcel Service of America, Inc. All rights reserved.

Case 1:16-mi-00041-WSD-CMS Document 1-13 Filed 06/15/16 Page 23 of 23

All trademarks, trade names, or service marks that appear in connection with UPS's services are the
property of their respective owners.
Please do not reply directly to this e-mail. UPS will not receive any reply message.
For more information on UPS's privacy practices, refer to the UPS Privacy Notice.
For questions or comments, visit Contact UPS.
This communication contains proprietary information and may be confidential. If you are not the intended
recipient, the reading, copying, disclosure or other use of the contents of this e-mail is strictly prohibited
and you are instructed to please delete this e-mail immediately.

UPS Privac~Notice
Con#act UPS

Case 1:16-mi-00041-WSD-CMS Document 1-14 Filed 06/15/16 Page 1 of 5

EXHIBIT L
Letter to Alex Rue,Esq. dated Apri121,2016 attaching the subpoena
packages of Tracy and Ruettiger.

Case 1:16-mi-00041-WSD-CMS Document 1-14 Filed 06/15/16 Page 2 of 5

u~a~f~~~~u s~r~~~~Ls
SECURITIES AND EXCHANGE C4MMISSTON
ATLANTA REGIONAL OFFICE
950 East Paees Ferry Raad,N.E. Suite 900
Atlanta, Georgia 30326-13$2
Telephone: (4U4)842-7680
Facsimile: (404)$42-7fi33

Edward H. Saunders
Senior Counsel

April 21, 2016


VIA E-MA:IL
al~x~~aiexruelaw.corn
VIA tINi1"ED Y1~RCEL SERVICE
Alex Rue,Esq.
A 1 exRuel,aw, LLC
4062 Peach~xee :Road, Suite 5]1
Atlanta, Cre~rgia 30319

Re:

In The Matter of Sonant Communications Cott., aryd Certaitx Other Issuers(A-03672)

Dear Mr. Kue:


Enclosed please find subpoenas for the testimony a f' Adam Tracy and 1Vlegan RuetCiger.
Pursuant tc~ our phone conversation on Monday, April 1$, 2U 16; I have schectt~led Ms. Kuett gex's
testimony for I'uesaay, May ]:7, 20I6 at 9:30 a.rn. with Mr. Tracy's testimony to foli~w that
same day starting at 1:OOp.m. Fer our conversation, we have agreed that, ifI have not completed
Mr. Tracy's testimony on Tuesday,May 17, 2016,I will complete his testimony the following
day, Wednesday, May 18, 2016. On our recent phone call, you informed' me that Mr.'Tracy
wuulci invoke his Fi(~la Amendment right against self-irzcrixni.na~on to my questions posed tc~ 1~irY~
during his testimony. Please let me know as soon as possible if Mr. Txacy changes his mind
regarding the exercise c~f'hi~ fifth Amen~iznent rights.
If you have Suzy other questions, you m~.y call me <it ~~It)~) 8~2-`76 0.
Sincerely,

__ .gym ~ ~'

Edward ~-I. Saunders


Senior C~~~:~~~s~;1.
Division cif'T;nforcement

Case 1:16-mi-00041-WSD-CMS Document 1-14 Filed 06/15/16 Page 3 of 5


Page 1 0~ 1

[.)PS CampusShip: ~lXipment I:.,abel

UPS CampusShip: VievvlPrint Lat~ei


1. Ensure there are no other shipping or tracking labels attached to your package. Select the
Print button on the print dialog box that appears. Note: If your browser does not support this function
select Print from the File menu to print the label.
2. Fold the printed label at the solid line below. Place the label in a UPS Shipping Pauch. if you do
not have a pouch, affix the folded label ~.ising clear plastic shipping tape over the entire label.
3. GET"t'ING YOUR SHIPMENT TO UPS
Customers with a Daily Pickup
Your driver will pickup your shipments} as usual.
Customers without a pally Pickup
Take your package to any location of The UPS Storeca~, UPS Access Point(TM) location, UPS Drop
Box, UPS Customer Center, UPS Alliances (Office Depat~ or Staples) or Authorized Shipping Outlet
near you. Items sent via Uf'S Return Services(SM)(including via Ground) are also accepted at drop
Boxes. To find the location nearest you, please visit the Resources area of CampusShip and select
UP5 Locations.
Schedule a same day or future day Pickup to have a UPS driver pickup all your CampusShip
packages.
Hand the package #o any UPS driver in your area.
UPS Access PointT""
UPS Access PointT""
UP5 Access PoinfiT""
THE UPS STORE
THE UPS STORE
THE UPS STORE
2625 PIEDMONT RD NE
4062 PEACHTREE RD NE
3535 PEACHTREE RD NE
ATLANTA ,GA 30324
30319
,GA
ATLANTA
ATLANTA ,GA 30326

FOLD HERE
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__1'rizitWincior~... 4/21%?Olb

Case 1:16-mi-00041-WSD-CMS Document 1-14 Filed 06/15/16 Page 4 of 5

Johnson, Angela (Contractor)


UPS Quantum View <pkginfo@ups.com>
Friday, April 22, 2016 9:52 AM
Johnson, Angela (Contractor)
UPS Delivery Notification, Tracking Number 1ZA3749A0199750124

From:
Sent:
To:
Subject:

Your package has been delivered.


Delivery Da#e:

Friday, 04/22/2016

Delivery Time:

09:41 AM

At the request of SEC ATLANTA REG OFFICE, this notice is to confirm that following shipment has been
delivered.

Shipment Detail
Tracking Number:

Ship To:

1ZA3749A0199750124
Alex Rue, Esq.
Alex Rue Law, LLC
4062 PEACHTREE RD NE
ATLANTA, GA 30319
US

UPS Service:

NEXT DAY AIR

Number of Packages:

Weight:

0.5 LBS

Delivery Location:

INSIDE DELIVERY

Signed by:

HAM

Reference Number 1:

A-03672

Download the UPS mobile aop

Get the UPS My Choice app for Facebook

O 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are
trademarks of United Parcel Service of America, Inc. All rights reserved.

Case 1:16-mi-00041-WSD-CMS Document 1-14 Filed 06/15/16 Page 5 of 5

All trademarks, trade names, or service marks that appear in connection with UPS's services are the
property of their respective owners.
Please do not reply directly to this e-mail. UPS will not receive any reply message.
For more information on UPS's privacy practices, refer to the UPS Privacy Notice.
For questions or comments, visit Contact UPS.
This communication contains proprietary information and may be confidential. If you are not the intended
recipient, the reading, copying, disclosure or other use of the contents of this e-mail is strictly prohibited
and you are instructed to please delete this e-mail immediately.

UPS Priva
Contact UPS

Natice

Case 1:16-mi-00041-WSD-CMS Document 1-15 Filed 06/15/16 Page 1 of 2

EXHIBIT M
Letter to Alex Rue,Esq. dated May 17,2016.

Case 1:16-mi-00041-WSD-CMS Document 1-15 Filed 06/15/16 Page 2 of 2

iJI~I'TF~~2 S'~'.A~"~S
,~"~~Ult1I IIS ANI:~ f~XC'.~.[.~,I'~1~Ci1 {~~~(;~i411v(iSSI~?l~l

X30 F8(7y~

~~.

~~

'~

~ati
.-.

9~0 Fist Paces Ferny Rc~ac~, i'~.~;,, ~uit~ X300

~C'NR%Xly

"T'eleph~)z~e: {x(34) 8~~2-'I(i8{J


Facsimile: (~t}4)842-763

kdxuard I.3. Saunders


Senior Ca~dnsct

May 1 "7, ?'016


VIA E-MAIL
Alexfcr),alexruela~~.corn
CIA UNC1}~;~ ~~'~~Z:(;;~;L ~T~;~~'VILE
~11ex K.ue,:Lsq.
Alexltue~,aw, LLB
4U(1 ~'e~olltr~ee ~.oad, ~~x 511
fltlant~~, Gec~xgia ~U319
I.Ze:

In the Matter of 5ana~nt t~;ornunicatii~~s C;or~~. ~~zac~ C"e~rtan Uth~r~ssuers A-0~6'~~

I:)eax Mr.:~:~re:
This wzll coni7rm oux conversation this aftez~naon where we agreed that tl~e testimonies of
~ic~th ~e~an ~tue~ti~er and ~d<~n~ '.!..racy, ~ s~., originally scheduled to occur today at tie Atlanta
TZ:eginnal office{"ATLCa99), would be rescheduled for Tuescfa~r, M~.y 24,2416 at t11e t~iRG. We will

bc~;in with lVt~.:~uettiger's testizn~ny at y:30 a.rn. to be fo}lowed.immediately by Mr.'Tracy's


te;siaz~aony.
I Elsa want to cc~r~:~irm tkaat both :1VCs. ltuett ger and 1V1r. Tracy plat to invoke thEir Fifth
A.~.~end~xa~l~t right ag~u:~~st selfincrirninaticaix in any questions ~,~ked ~~`t1~e~i~ regarclin~; this
ixxvest ~atio~a. !'lease left me ~n,or~v irnired atcly if my ~~nci~ rratand~n~ c~#this is inec~axect.
Ik }~ot7 h~~ve ruay c~u~stcans, Tease contact me ~t(4010 84"?-7~$0.
S.incerelr~,

1:~:cil~ard k-I. ~a~~nciers


Seniai(:'ounsel

Case 1:16-mi-00041-WSD-CMS Document 1-16 Filed 06/15/16 Page 1 of 1

Saunders, Edward H.
From:
Sent:
To:
Subject:

Alex Rue <arue307@gmail.com>


Tuesday, June 14, 2016 1:01 AM
Saunders, Edward H.
Adam Tracy

Mr. Saunders,
I am out ofthe country and have just noticed that my email has not'sent' for several days.
I will return to the US on June 22 and will make Mr Tracy, et al. available after that time at your convenience.
Again I apologize for my inability to communicate. I will only get email intermittently for the next few days. But tell me what dates
work for you after June 23rd and I will arrange to make my clients available.
X
=
A. Rue

Case 1:16-mi-00041-WSD-CMS Document 1-17 Filed 06/15/16 Page 1 of 6

AO 440 (Rev. 06/12) Summons in a Civil Action

UNITED STATES DISTRICT COURT


for the
Northern District of Georgia

Securities and Exchange Commission

Plaintiff(s)
v.

Securities Compliance Group, Ltd., Adam S. Tracy


and Megan S. Ruettiger

)
)
)
)
)
)

Civil Action No.

)
)

Defendant(s)

SUMMONS IN A CIVIL ACTION


To: (Defendant's name and addresl Adam S. Tracy
CIO James Alexander Rue
AlexRueLaw, LLC

4060 Peachtree Road, Suite 0511


Atlanta, GA 30319

A lawsuit has been filed against you.


Within 21 days after service of this summons on you (not counting the day you received it)

or 60 days if you

are the United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ.
P. 12 (a)(2) or (3)

you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of

the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff or plaintiff's attorney,
whose name and address are:
W. Shawn Murnahan
Securities and Exchange Commission
950 East Paces Ferry Road, N.E., Suite 900
Atlanta, GA 30326-1382

If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint.
You also must file your answer or motion with the court.

CLERK OF COURT

Date:

Signature ofClerk or Deputy Clerk

Case 1:16-mi-00041-WSD-CMS Document 1-17 Filed 06/15/16 Page 2 of 6

AO

440 (Rev. 06/12)

Summons in a Civil Action

(Page 2)

Civil Action No.


PROOF OF SERVICE
(This section should not befiled with the court unless required by Fed. R. Civ. P. 4 (1))

This summons for (name of individual and title, ifany)


-----------

was received by me on (date)

0 I personally served the summons on the individual at (place)


on (date)
------------

---- --

; or

-----------

0 I left the summons at the individual's residence or usual place of abode with (name)
, a person of suitable age and discretion who resides there,
--------

on (date)

, and mailed a copy to the individual's last known address; or

0 I served the summons on (name of individual)

, who is

designated by law to accept service of process on behalf of (name oforganization)


on (date)

; or

------- ----------

0 I returned the summons unexecuted because

; or

0 Other (specify):

My fees are$

for travel and$

for services, for a total of$

I declare under penalty of perjury that this information is true.

Date:

-----

Server's signature

Printed name and title

Server's address
Additional information regarding attempted service, etc:

----

0.00

Case 1:16-mi-00041-WSD-CMS Document 1-17 Filed 06/15/16 Page 3 of 6

AO 440 (Rev. 06112) Summons in a Civil Action

UNITED STATES DISTRICT COURT


for the

Northern District of Georgia

Securities and Exchange Commission

)
)
)
)
)

Plaintiff(s)

v.

Securities Compliance Group, Ltd., Adam S. Tracy


and Megan S. Ruettiger

------- ----"-

Civil Action No.

)
)
)
)

Defendant(s)

SUMMONS IN A CIVIL ACTION

To: (Defendant's name and address) Securities Compliance Group, Ltd.


C/O James Alexander Rue
AlexRueLaw, LLC

4060 Peachtree Road, Suite 0511


Atlanta, GA 30319

A lawsuit has been filed against you.


Within 21 days after service of this summons on you (not counting the day you received it)- or 60 days if you
are the United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ.
P. 12 (a)(2) or (3) -you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of
the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff or plaintiff's attorney,
whose name and address are:
W. Shawn Murnahan
Securities and Exchange Commission
950 East Paces Ferry Road, N.E., Suite 900
Atlanta, GA 30326-1382

If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint.
You also must file your answer or motion with the court.

CLERK OF COURT

Date:

Signature of Clerk or Deputy Clerk

Case 1:16-mi-00041-WSD-CMS Document 1-17 Filed 06/15/16 Page 4 of 6

AO 440 (Rev.

06/12) Summons in a Civil Action (Page 2)

Civil Action No.

PROOF OF SERVICE

(ThLr; section should not be filed with the court unless required by Fed. R. Civ. P. 4 (/))
This summons for (name ofindividual and title, ifany)
was received by me on (date)

CJ I personally served the summons on the individual at (place)


on (date)

; or

------- -- ------

CJ I left the summons at the individual's residence or usual place of abode with (name)
-----

, a person of suitable age and discretion who resides there,


-------

0n (date)

, and mailed a copy to the individual's last known address; or

CJ I served the summons on (name ofindividual)

, who is

designated by law to accept service of process on behalf of (name of organization)


on (date)

; or

CJ I returned the summons unexecuted because

; or

CJ Other (specify):

My fees are$

for travel and $

for services, for a total of$

I declare under penalty of perjury that this information is true.

Date:

Server 's signature

Printed name and title

....

. ...... .

..........

. .. ......... ..... ........

Server's address
Additional information regarding attempted service, etc:

...

--,....... ...

0.00

Case 1:16-mi-00041-WSD-CMS Document 1-17 Filed 06/15/16 Page 5 of 6

AO 440 (Rev. 06/12) Summons in a Civil Action

UNITED STATES DISTRICT COURT


for the

Northern District of Georgia

Securities and Exchange Commission

------------- -------------------- -- .

Plaintiff(s)
v.
Securities Compliance Group, Ltd., Adam S. Tracy
and Megan S. Ruettiger

Defendant(s)

)
)
)
)
)
)
)
)
)
)
)
)

Civil Action No.

SUMMONS IN A CIVIL ACTION

To: (Defendant's name and address) Megan S. Ruettiger


C/O James Alexander Rue
AlexRuelaw, LLC

4060 Peachtree Road, Suite 0511


Atlanta, GA 30319

A lawsuit has been filed against you.


Within 21 days after service of this summons on you (not counting the day you received it)- or 60 days if you
are the United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ.
P. 12 (a)(2) or (3) you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of
the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff or plaintiff's attorney,
whose name and address are:
W. Shawn Murnahan
Securities and Exchange Commission
950 East Paces Ferry Road, N.E., Suite 900
Atlanta, GA 30326-1382

If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint.
You also must file your answer or motion with the court.

CLERK OF COURT

Date:

--

Signature of Clerk or Deputy Clerk

Case 1:16-mi-00041-WSD-CMS Document 1-17 Filed 06/15/16 Page 6 of 6

AO 440 (Rev, 06/12) Summons in a Civil Action (Page 2)

Civil Action No.


PROOF OF SERVICE

(This section should not be filed with the court unless required by Fed. R. Civ. P. 4 (l))
This summons for (name ofindividual and title, if any)
__,______.
__

was received by me on (date)

0 I personally served the summons on the individual at (place)


on

; or

(date)
------ ----

0 I left the summons at the individual's residence or usual place of abode with (name)
, a person of suitable age and discretion who resides there,
----------

on (date)

'and mailed a copy to the individual's last known address; or


---

0 I served the summons on (name ofindividual)

, who is

designated by law to accept service of process on behalf of (name oforganization)


on (date)

; or

0 I returned the summons unexecuted because

; or

0 Other (specify):

My fees are$

for travel and$

for services, for a total of$

I declare under penalty of perjury that this information is true.

Date:

Server's signature

Printed name and title

Server's address
Additional information regarding attempted service, etc:

0.00

Case 1:16-mi-00041-WSD-CMS Document 1-18 Filed 06/15/16 Page 1 of 2


CIVIL COVER SHEET

JS44(Rev. 1/16 NDGA)

The JS44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law,except as
provided by local rules of court. This form is required [or the use of the Clerk of Court for the purpose of initiating the civil docket record. (SEE INSTRUCTIONS ATTACHED)

I.(a)PLAINTIFFS)

DEFENDANTS)

Securities and Exchange Commission

Securities Compliance Group, Ltd., Adam S.


Tracy and Megan S. Ruettiger

COUNTY OF RESIDENCE OF FIRST LISTED


DEFENDANT DuPage County, Illinois

~b~ COUNTY OF RESIDENCE OF FIRST LISTED


PLAINTIFF

(IN U.S. PLAINTIFF CASES ONLY)

(EXCEPT IN U.S. PLAINTIFF CASES)

NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF


LAND INVOLVED

ATTORNEYS (IF KNOWN)

(C) ATTOl~l\EYS (FIRM NAME,ADDRESS,TELEPIiONE NUMBER,AND


E-MAIL ADDRESS)

W. Shawn Murnahan
Securities and Exchange Commission
950 East Paces Ferry Road, N.E., Suite 900
Atlanta, GA 30326-1382
Tel.:(404)842-7669 email: murnahanw@sec.gov

III. CITIZENSHIP OF PRINCIPAL PARTIES

II. BASIS OF JURISDICTION

(PLACE AN "X"IN ONE BOX FOR PLAINTIFF AND ONE BOX FOR DEFENDANT)
(FOR DIVERSITY CASES ONLY)

(PLACE AN "X^ IN ONE BOX ONLY)

1 p`SA~~RNMENT 3

James Alexander Rue


AlexRueLaw, LLC
4060 Peachtree Road, Suite D511
Atlanta, GA 30319
Tel:(404)808-1397 email: alex@alexruelaw.com

PLF

DEF

Dl

PLF
CITIZEN OF THIS STATE

N.S. OVERNMENT NOT A PARTY)

~MENT 4~
NDICATE CITIZENSIiIP OF PARTIES
2 DEFENp
IN ITEM I[I)

2 CITIZEN OF ANOTHER STATE 5


~

DEF
4

PLACEPOF BUINESIN THIS TATE

5
PLACEO BSINESSIN ANOTHER
STATE

3 3 CITIZEN OR SUBJECT OF A
FOREIGN COUNTRY

IV.

FOREIGN NATION

ORIGIN (PLACE AN "X "IN ONE BOX ONLY)

TRANSFERRED FROM
.1 ORIGINAL
2 REMOVED FROM ~3 REMANDED FROM 4 REINSTATED OR S ANOTHER DISTRICT
(Specify District)
STATE
COURT
APPELLATE
COOK
REOPENED
PROCEEDING

6 MULTIDISTRICT
LITIGATION

APPEAL TO DISTRICT JUDGE


7 FROM MAGISTRATE JUDGE
JUDGMENT

V. CAUSE OF ACTION (CITE TfIE U.S. CIVIL STATUTE UNDER WfllCH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF CAUSE - DO NOT CITE
JURISDICTIONAL STATUTES UNLESS DIVERSITY

Enforcement of administrative subpoena pursuant to Section 22(b) of the Securities Act of 1933[15
U.S.C. 77v(b) and Section 21(c) of the Securities Exchange Act of 1934[15 U.S.C. 78u(c)

(IF COMPLEX,CHECK REASON BELOV~


1. Unusually large number of parties.

6. Problems locating or preserving evidence

2. Unusually large number of claims or defenses.

7. Pending parallel investigations or actions by government.

3. Factual issues are exceptionally complex

8. Multiple use ofexperts.

4. Greater than normal volume of evidence.

9. Need for discovery outside United States boundaries.

5. Extended discovery period is needed.

10. Existence ofhighly technical issues and proof.

CONTINUED ON REVERSE
ROA OFFICE USE ONLY
RECEIPT #

AMOUNT f

NDGE

MAG. JUDGE
(Refe`mt)

APPLYAIG IFP

MAG.JUDGE(IFP)

NATURE OF SUIT

CAUSE OF ACCION

Case 1:16-mi-00041-WSD-CMS Document 1-18 Filed 06/15/16 Page 2 of 2


VI.

NATURE OF SUIT cp~A~E AN "X"IN ONE BOX ONLY)

CONTRACT - "0" MONTHS DISCOVERY TRACK


I50 RECOVERY OF OVERPAYMENT &
ENFORCEMENT OF LODGMENT
I52 RECOVERY OF DEFAULTED STUDENT
LOANS (ExcL Veterans)
153 RECOVERY OF OVERPAYMENT OF
VETERAN'S BENEFITS

CONTRACT - "4" MONTHS DISCOVERY TRACK


1 IO INSURANCE

o~zo ENE

I30 MILLER ACT


140 NEGOTIABLE INSTRUMENT
151 MEDICARE ACT
0160 STOCKHOLDERS'SUITS
D 190 OTHER CONTRACT
0195 CONTRACT PRODUCT LIABILITY
196 FRANCHISE

REAL PROPERTY - "4" MONTHS DISCOVERY


TRACK
X210 LAND CONDE[v1I~'ATION
0220 FORECLOSURE
0230 RENT LEASE & E78CTMENT
240 TORTS TO LAND
0245 TORT PRODUCT LWBILITY
290 ALL OTHER REAL PROPERTY
TORTS -PERSONAL INIURY - "4" MONTHS
DISCOVERY TRACK
310 AIRPLANE
O3I5 AIRPLANE PRODUCT LIABILITY
0320 ASSAULT,LIBEL &SLANDER
330 FEDERAI.BMPLOYERS'LIABILITY
340 MARINE
345 MARINE PRODUCT LIABILITY
350 MOTOR VEHICLE
355 MOTOR VEHICLE PRODUCT LIABILITY
0360 OTHER PERSONAL INIURY
362 PERSONAL INJURY -MEDICAL
MALPRACTICE
365 PERSONAL INJURY -PRODUCT LIA8IWTY
0367 PERSONAL INJURY -HEALTH CARL/
PHARMACEUTICAL PRODUCT LIABILITY
0368 ASBESTOS PERSONAL INJURY PRODUCT
LIABILITY

TORTS -PERSONAL PROPERTY - "4" MONTHS


DISCOVERY TRACK
370 OTHER FRAUD
371 TRUTH IN LENDING
X380 OTHER PERSONAL PROPERTY DAMAGE
385 PROPERTY DAMAGE PRODUCT LIABILITY

CIVIL RIGHTS - "4" MONTHS DISCOVERY TRACK


441 VOTING
442 EMPLOYMENT
443 HOUSING/ ACCOMMODATIONS
444 WELFARE
440 OTHBR CIVIL RIGHTS
445 AMERICANS with DISABILITIES - Employment
446 AMERICANS with DISABILITIBS - O[her
448 EDUCATION

IMMIGRATION - "0" MONTHS DISCOVERY TRACK

SOCIAL SECURITY - "0"MONTHS DISCOVERY


TRACK
[~86I HIA (I395f~
862 BLACK LUNG (923)
863 DIWC (405(g))
863 DIW W (405(g))
864 SSID TITLE XVf
865 RSI (405(8))

FEDERAL TAX SUITS - "4" MONTHS DISCOVERY


TRACK
870 TAXES (O.S. Plaintiffor Defendant)
87l IRS -THIRD PARTY 26 USC 7609

462 NATURALIZATION APPLICATION


465 OTHER IMMIGRATION ACTIONS

PRISONER PETITIONS - "0" MONTHS DISCOVERY


TRACK
463 HABEAS CORPUS- AGen Detainee
510 MOTIONS TO VACATB SENTENCE
530 HABEAS CORPUS
535 HABEAS CORPUS DEATH PENALTY
540 MANDAMUS &OTHER
550 CIVIL RIGHTS -Filed Pro ae
555 PRISON CONDITIONS)-Filed Pro ae
X560 CIVIL DETAINEE: CONDITIONS OF
CONFIN8M8NT

PRISONER PETITIONS - "4" MONTHS DISCOVERY


TRACK
4550 CIVIL RIGHTS - Fded by Counsel
555 PRISON CONDITIONS)-Filed by Counsel
FORFEITURE/PENALTY - "4" MONTHS DISCOVERY
TRACK
X625 DRUG RELATED SEIZURE OF PROPERTY
2I USC S61
Q690 OTHER
LABOR - "4" MONTHS DISCOVERY TRACK
~7I0 FAIR LABOR STANDARDS ACT
720 LABOR/MGMT. RELATIONS
740 RAILWAY LABOR ACT

OTHER STATUTES - "4" MONTHS DISCOVERY


TRACK
375 FALSE CLAIMS ACT
376 QUI TAM 31 USC 3729(a)
400 STATE REAPPORTIONMENT
430 HANKS AND BANKING
450 COMMERCEflCC RATES/ETC.
460 DEPORTATION
X470 RACKETEER INFLUENCED AND WRRUPT
ORGANIZATIONS
480 CONSUMER CREDIT
490 CABLF/SATBLLITE TV
890 OTHER STATUTORY ACTIONS
89l AGRICULTURAL ACTS
0893 ENVIRONMENTAL MATTERS
Q895 FREEDOM OF INFORMATION ACT
899 ADMINISTRA77VE PROCEDURES ACT /
REVIEW OR APPEAL OF AGENCY DECISION
950 CONSTITUTIONALITY OF STATE STATUTES

OTHER STATUTES - "8" MONTHS DISCOVERY


TRACK
Q 410 ANTITRUST
850 SBCURITIES /COMMODITIES / EXCfIANGE
OTHER STATUTES - "0" MONTHS DISCOVERY
TRACK
~896 ARBITRATION
(Confirm / Vazate /Order /Modify)

751 FAMILY and MEDICAL LEAVE ACT


790 OTHER LABOR LITIGATION
791 EMPL. RET. INC. SECURITY ACl'

PROPERTY RIGHTS - "4" MONTHS DISCOVERY TRACK


820 COPYRIGHTS
840 TRADEMARK

PROPERTY RIGHTS - "8" MONTHS DISCOVERY TRACK

* PLEASE NOTE DISCOVERY


TRACK FOR EACH CASE TYPE.
SEE LOCAL RULE 26.3

830 PATENT

BANKRUPTCY - "0" MONTHS DISCOVERY TRACK


422 APPEAL 28 USC 158
423 WITHDRAWAL 28 USC IS7

VII. REQUESTED IN COMPLAINT:


CHECK IF CLASS ACTION UNDER F.RCiv.P. 23

DEMAND $

JURY DEMAND DYES D NO (CHECK YES ONLY IF DEMANDED IN COMPLAINT)

VIII. RELATED/REFILED CASES)IF ANY


JUDGE

DOCKET NO.

CIVIL CASES ARE DEEMED RELATED IF THE PENDING CASE INVOLVES: (cHEcx nrrxoriunTe eox)
1. PROPERTY INCLUDED IN AN EARLIER NUMBERED PENDING SUIT.
D2. SAME ISSUE OF FACT OR ARISES OUT OF THE SAME EVENT OR TRANSACTION INCLUDED IN AN EARLIER NUMBERED PENDING SUIT.
3. VALIDITY OR INFRINGEMENT OF THE SAME PATENT,COPYRIGHT OR TRADEMARK INCLUDED IN AN EARLIER NUMBERED PENDING SUIT.
4. APPEALS ARISING OUT OF THE SAME BANKRUPTCY CASE AND ANY CASE RELATED THERETO WHICH HAVE BEEN DECIDED BY THE SAME
BANKRUPTCY JUDGE.
5. REPETITIVE CASES FILED BY PRO SE LITIGANTS.
6. COMPANION OR RF.i,ATFA CASE.TO CASE(51 BE[N

7.
DISMISSED. Tltis case IS IS NOT(check one box)SUBSTANTIALLY THE SAME CASE.

ATURE OF ATTORNEY OF RECORD

DATE