A federal appeals court has upheld an asset freeze and preliminary injunction against Reven Holdings and its principals in a Securities and Exchange Commission fraud case.
The Tenth Circuit’s October 14 opinion leaves interim protections in place while the enforcement action continues. It expressly distinguishes its assessment of the SEC’s likely success from a final determination that the defendants committed fraud.
The allegations concern statements to investors about executive pay, audited accounts, preparations for a public offering and other litigation.
The court said the traditional four-part test for preliminary relief applies, including likely success, irreparable harm, the balance of equities and the public interest. It rejected the defendants’ argument that the district court had to hold an evidentiary hearing in the circumstances presented.
Reven argued the freeze damaged the assets it was meant to preserve, including drug-development interests. The appeals court found the lower court’s modifications sufficiently addressed preservation concerns without requiring the entire freeze to be lifted.
The case returns for further proceedings.
Official opinion, Nos. 24-1235 and 24-1309.
