Securities and Exchange Comission v. Eng Taing and Touzi Capital, LLC

Summary

The United States District Court for the Southern District of California denied Vince Faridani’s motion to intervene as of right in the Securities and Exchange Commission’s enforcement action against Eng Taing and Touzi Capital, LLC. The court held that although Faridani had a significantly protectable investment interest, he failed to show that the SEC inadequately represented his interests.

Holdings

1. Faridani demonstrated a significantly protectable interest because his claimed investment was a legally protected property interest directly related to the SEC's claims concerning allegedly ill-gotten gains.
2. Faridani failed to establish inadequate representation because he shared the SEC's ultimate objective and made only conclusory assertions that the SEC would not adequately protect his interests.
3. The motion to intervene was denied because Faridani failed to satisfy the inadequate-representation requirement of Rule 24(a).

Questions Presented

1. Whether Faridani satisfied the requirements for intervention as of right under Federal Rule of Civil Procedure 24(a).
2. Whether Faridani showed that the SEC inadequately represented his interest when he and the SEC shared the ultimate objective of maximizing distributions to defrauded investors and deterring future fraud.

Disposition

other