Following a request by the SEC on February 18th, the iPro Network civil trial has been delayed for a fifth time.
As revealed in a subsequent stipulation, this time the delay is attributable to the use of gift cards in iPro Network.
Initially there seemed to be a discovery dispute between the SEC and defendant Daniel Pacheco.
(The SEC’s) position is that, after the close of fact discovery, Defendant articulated new facts regarding the payment of commissions which are relevant to the claims and defenses in this case and which require additional discovery.
(Daniel Pacheco’s) position is that (the SEC) is not entitled to take further discovery and that no new facts were articulated after the close of discovery.
The parties agree that judicial intervention is necessary to resolve whether Plaintiff may take additional discovery.
That was the situation as described by the SEC in their February 18th trial continuance motion.
On February 19th the court ordered the trial be continued, paving the way for the SEC to explore the use of gift cards.
Four days later Pacheco appears to have caved, likely realizing discovery was likely going to be reopened.
On February 23rd the SEC filed another stipulation, in which it was disclosed;
The SEC and Defendant Daniel Pacheco (together, the “Parties”) have since further met and conferred as to the issue of reopening discovery.
The Parties have come to a compromise by which discovery will be reopened for the limited purpose of taking discovery as to the use of gift cards in the IPro program.
On February 24th the court reopened discovery, allowing the SEC to seek the information they’re after.
Discovery shall be reopened for the purpose of taking discovery as to the use of gift cards in the IPro program.
Gift cards suggests the SEC might be probing money laundering within iPro Network.
That in turn could lead to criminal charges from the DOJ – but without further details that’s only speculation.
What we do know is the SEC intends to depose iPro Network’s “accounting expert”
about opinions disclosed on or after February 23, 2020, regarding IPro’s use of gift cards.
For now discovery has been reopened, and the SEC has until June 8th to file any subsequent discovery related motions.
The SEC v. iPro Network civil trial is now scheduled for November 9th, 2021.