Case 6:08-cv-00187-LED Document 20 Filed 05/21/2008 Page 1 of 4

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF TEXAS
TYLER DIVISION

COMMODITY FUTURES TRADING :

COMMISSION, :
:
Plaintiff, :
:
:
v.
: CIVIL ACTION NO.: 6:08cv187
:
GEORGE D. HUDGINS, individually and dba :
GEORGE D. HUDGINS, L.L.C. :
:
Defendant :
:
:
:

DEFENDANT’S UNOPPOSED MOTION FOR TEMPORARY AND LIMITED

MODIFICATION TO ASSET FREEZE FOR REASONABLE LIVING EXPENSES
UNTIL DATE OF SHOW CAUSE HEARING ON PRELIMINARY INJUNCTION
AND MEMORANDUM IN SUPPORT

Defendant George D. Hudgins, individually and doing business as George D. Hudgins,

LLC (“Hudgins” or “Defendant”), respectfully requests that this Court enter an Order

temporarily modifying this Court’s May 13, 2008 Statutory Restraining Order (“SRO”) to allow

for reasonable living expenses, as set forth and in the manner set forth below, until the date of the

hearing on the Order to show cause regarding preliminary injunction and other relief (“Motion”).

In support of this Motion, Defendant states:

1. The United States Commodity Futures Trading Commission (“Commission” or

“Plaintiff”) filed its Complaint for Permanent Injunction, Civil Monetary Penalty, and Other

Equitable Relief (“Complaint”) against Defendant on May 13, 2008.

2. That same day, the Commission sought and obtained an Ex Parte SRO To Freeze
 Case 6:08-cv-00187-LED Document 20 Filed 05/21/2008 Page 2 of 4

Assets and Preserve Books and Records and for an Accounting, and an Order to Show Cause

Regarding Preliminary Injunction.

3. The Court granted the SRO in its entirety, and ordered the Defendant to appear

before the Court on May 22, 2008 to show cause (“Show Cause Hearing”) why an Order for

Preliminary Injunction should not be granted to prohibit further violations of Commodity

Exchange Act (“CEA”), as amended, 7 U.S.C. §§ 1 et seq. (2002), and Commission Regulations

(“Regulations”), 17 C.F.R. §§ 1.1 et seq. (2008), promulgated thereunder.

4. Simultaneous with the filing of this Motion, the parties have also filed a Joint

Motion to Reschedule Show Cause Hearing Regarding Preliminary Injunction, and to Extend

and Maintain the Statutory Restraining Order Freezing Assets, Preserving Books and Records

and For an Accounting (“Joint Motion”).

5. The SRO further ordered that “this Order [SRO] shall remain in full force and

effect until further order of this Court, and that his Court retains jurisdiction of this matter for all

purposes.” (See SRO, Part IX, at p. 9.)

6. Part I of the SRO (¶¶ 13-14) restrains and enjoins Defendant, and his agents,

servants, employees, attorneys and persons in active concert or participant with him, from

“directly or indirectly transferring, selling, alienating, liquidating, encumbering, pledging,

leasing, loaning, assigning, concealing, dissipating, converting, withdrawing, or otherwise

disposing of any assets . . . .”

7. Pending the Show Cause Hearing, the Defendant requests a temporary and limited

modification to the asset freeze to permit him to pay for his reasonable living expenses in the

amount of not more than $1,500 per week.

8. Plaintiff has no objection to permitting Defendant to pay for his reasonable

367557 2
 Case 6:08-cv-00187-LED Document 20 Filed 05/21/2008 Page 3 of 4

living expenses, but no other expenses, so long as: (a) Defendant does not exceed $1,500 per

week; (b) the $1,500 is used solely for reasonable living expenses; (c) Defendant charges any

and all such expenses to the following credit card, and no other credit card: VISA – Farmers

State Bank; (d) Defendant maintains and provides to the Commission receipts of any and all

living expenses charged to that card on a weekly basis; and (e) any modification to the asset

freeze as provided in this paragraph does not extend beyond the scope of this paragraph, or the

date of the Show Cause Hearing, or as further provided by order of this Court. In addition,

Plaintiff reserves the right to challenge as “unreasonable” the $1,500 amount should good cause

exist to do so.

CONCLUSION

WHEREFORE, and for the foregoing reasons, Defendant’s Unopposed Motion For

Temporary and Limited Modification to Asset Freeze for Reasonable Living Expenses Until

Date of Show Cause Hearing On Preliminary Injunction. A copy of a proposed order is attached

hereto.

Respectfully submitted,

DEFENDANT GEORGE D. HUDGINS dba

GEORGE D. HUDGINS L.L.C.

By: /s/ Charles M. Meadows

Charles M. Meadows
Texas State Bar No. 13886700

Meadows, Collier, Reed, Cousins & Blau L.L.P.

601 Main Street, Suite 3700
Dallas, TX 75202
Telephone: (214) 744-3700
Fax: (214) 747-3732

367557 3
 Case 6:08-cv-00187-LED Document 20 Filed 05/21/2008 Page 4 of 4

CERTIFICATE OF SERVICE

I hereby certify that on the 21st day of May, 2008, I filed Defendants’ motion via the

Court’s CM/ECF system, which will send electronic notice to all counsel of record.

By: /s/ Charles M. Meadows

367557 4