A September thirteenth scheduling order has set an SEC v. OnPassive trial date for April sixth, 2026.
Word this isn’t a typo, the trial is scheduled eighteen months out from September, 2024.
The court docket’s scheduling order follows OnPassive proprietor Ashraf Mufareh’s movement to dismiss the case being denied on August twenty seventh.
Following the dismissal, Mufareh and his spouse filed their reply to the SEC’s August 2023 filed grievance.
The SEC alleges Mufareh and his spouse defrauded shoppers out of $108 million. Mufareh and his spouse deny the entire SEC’s claims.
Mufareh and the SEC had been in settlement discussions whereas a choice on Mufareh’s movement to dismiss was pending.
An replace on proceedings is supplied in a September eleventh joint submitting requesting an discovery deadline extension;
The Events have additionally met and conferred to resolve discovery disputes on a number of events. Regardless of these efforts, the Events agree that an extension of the deadlines is critical to finish truth and skilled discovery on this case.
A part of the explanation discovery is complicated is as a result of SEC eager to depose OnPassive staff in India.
On October 10, 2023, the Events collectively submitted a Uniform Case Administration Report wherein they famous that depositions could also be taken in India, which can require requests for the Courtroom to situation Letters Rogatory to the Indian Central Authority.
The Events said that ONPASSIVE would take all needed steps to obviate the necessity for Letters Rogatory together with by making staff obtainable for depositions to the extent potential.
The Events agree that an extension of the deadlines is critical to finish truth and skilled discovery on this case.
That is so largely due to the problems previewed within the Uniform Case Administration Report, particularly that as a consequence of the truth that sure witnesses and proof are situated in India the Events require extra time to finish discovery.
Who precisely the SEC will depose stays a degree of battle.
The Events haven’t but reached settlement concerning the potential depositions of as much as 14 foreign-located witnesses (many former staff of ONPASSIVE affiliate entities), lots of which would require the issuance of Letters of Request to India and will take a number of months for India to course of.
Mufareh has additionally, thus far, been unable to offer the SEC with extra requested discovery.
Important doc discovery can also be nonetheless pending together with, amongst different issues, important software program code within the possession of the Defendants which is situated abroad.
This core proof is critical earlier than the Events can take sure depositions and disclose skilled experiences.
I’m attempting to not learn an excessive amount of between the traces however these deposition discovery points observe OnPassive staff in India hanging again in June.
On the time, OnPassive’s Indian staff declare they hadn’t been paid for six months. Whether or not that is nonetheless the case stays unclear.
Both method, I’m certain there’s various OnPassive staff who’ll be keen to talk to the SEC.
And eventually on a doubtlessly associated word, OnPassive’s web site has now been down for over 24 hours. OnPassive’s web site is believed to have been hosted and operated from inside India.
Whether or not OnPassive’s web site happening is expounded to worker points in India, and/or the SEC’s pending depositions of mentioned staff, is unclear.
To one of the best of my information Ash Mufareh hasn’t publicly addressed OnPassive’s web site happening.
OnPassive’s Twitter account stopped posting on June twenty third. The final video add to OnPassive’s YouTube channel was on Could thirtieth.
