SHARON L. GLEASON, District Judge.
Before the Court at Docket 3 is Plaintiff ConocoPhillips Alaska, Inc.'s ("ConocoPhillips") Ex Parte Motion for Temporary Restraining Order and Preliminary Injunction. Also before this Court at Docket 6 is Plaintiff's Motion for Expedited Consideration of its Ex Parte Motion for Temporary Restraining Order and Preliminary Injunction.
In its Complaint, ConocoPhillips asserts eight counts against Forrest Wright, Amanda Wright, Nathan Keays, Kelly Keays, Eco Edge Armoring LLC, David Benefield, Wright Capital Investments, LLC, and DB Oilfield Support Services ("Defendants") including: (1) RICO claims, (2) embezzlement, (3) fraud, (4) conversion, (5) unjust enrichment, (6) breach of contract, (7) constructive trust, and (8) piercing the corporate veil.
ConocoPhillips seeks a temporary restraining order with the stated purpose of preventing Defendants from "withdrawing, transferring, or dissipating in any manner any funds, or selling any real or personal property (including vehicles) until such time as the Court has ruled further on a Motion for Preliminary Injunction, or otherwise prevent the transfer or sale of any assets purchased, or partially purchased, paid for or maintained with the fraudulently obtained, embezzled funds."
ConocoPhillips asserts that between April and October 2019, Mr. Wright fraudulently obtained approval to purchase materials and services from DB Oilfield and Eco Edge totaling more than $7,000,000.
The security manager for ConocoPhillips, Jeff Laughlin, launched an investigation into Mr. Wright upon receiving an anonymous tip that Mr. Wright had authorized payments of nearly $4,000,000 to DB Oilfield for products that had never been delivered.
DB Oilfield invoiced ConocoPhillips in the amount of $4,148,000 for a patented pipe racking system that it purportedly delivered to a Fairbanks railroad yard.
In the course of his investigation, Mr. Laughlin determined that in February 2019, Mr. Wright also initiated the process to approve Eco Edge as a vendor.
In addition to the pipe inspection services, Mr. Keays offered Mr. Wright 11,000 feet of "joint retainers" (sections of pipe) at a liquidation price.
Finally, Mr. Laughlin determined that Forrest and Amanda Wright formed Wright Capital Investments LLC ("Wright Capital") in Nevada on or around July 21, 2019 and, shortly thereafter, used Wright Capital to purchase more than $4,000,000 worth of real estate in Las Vegas.
The standard for obtaining a temporary restraining order is the same as that for a preliminary injunction. Plaintiffs seeking injunctive relief must establish "(1) they are likely to succeed on the merits; (2) they are likely to suffer irreparable harm in the absence of preliminary relief; (3) the balance of equities tips in their favor; and (4) a preliminary injunction is in the public interest."
Injunctive relief is an equitable remedy, and "[t]he essence of equity jurisdiction is the power of the court to fashion a remedy depending upon the necessities of the particular case."
Based on the record before it, the Court finds that ConocoPhillips is likely to succeed on the merits of this action and obtain a judgment ordering a return of their funds. Among other things, Plaintiff has provided an affidavit from its security manager, Mr. Laughlin, that provides extensive and detailed evidence resulting from his investigation in support of Plaintiff's allegations against Defendants.
Further, ConocoPhillips has demonstrated that it is likely to suffer irreparable harm if injunctive relief is not ordered with respect to Defendants' funds and assets. In light of Plaintiff's complaint against them, Defendants would be incentivized to make their funds and assets unavailable, to the extent possible, thereby irreparably harming ConocoPhillips in the amount that it is unable to recover. The record demonstrates that Defendants have already pursued a $4,000,000 out-of-state real estate opportunity.
The Court finds that the balance of equities tips in ConocoPhillips' favor. Although Defendants will undoubtedly be burdened by the constraints on their financial freedom that Plaintiff seeks, the loss is only temporary. In contrast, should Defendants dispose of or otherwise make unavailable their funds and assets, ConocoPhillips could be permanently harmed. Moreover, injunctive relief to prevent Defendants from transferring funds or assets received from ConocoPhillips is in the public interest. The public has a vested interest in preventing embezzlers from dissipating fraudulently obtained assets, as well as an interest in protecting employers and businesses from fraud by their employees.
For these reasons, the Court finds that a temporary restraining order is warranted. Further, the Court will enter the temporary restraining order without notice to Defendants as the record before the Court clearly shows that ConocoPhillips would suffer immediate and irreparable injury, loss, or damage before Defendants can be heard in opposition.
In light of the foregoing, Plaintiff's Motion for Expedited Consideration of its Ex Parte Motion is GRANTED and Plaintiff's Ex Parte Motion for a Temporary Restraining Order is GRANTED. The Court order as follows:
1. All funds held in any and all accounts owned or controlled by Forrest Wright, Amanda Wright, Nathan Keays, Kelly Keays, David Benefield, Eco Edge Armoring, LLC, DB Oilfield Support Services, and/or Wright Capital Investments, LLC, or any combination thereof are hereby frozen, specifically including but not limited to AlaskaUSA Federal Credit Union Account #1700047859829 (held by DB Oilfield Support Services) and account #170001977951 (held by Eco Edge Armoring, LLC). AlaskaUSA, and all other financial institution where Defendants have accounts, shall not allow any disbursements or transfers of any type from such accounts until this order expires, or until further order of this Court.
2. Forrest Wright, Amanda Wright, Nathan Keays, Kelly Keays, David Benefield, Eco Edge Armoring, LLC, CB Oilfield Support Services, and Wright Capital Investments, LLC shall not sell, transfer, or dispose of any assets received from ConocoPhillips or any assets—including any real property, any personal tangible property and any intangible property—purchased, partially purchased, paid for, or maintained with any assets, or money received from or paid to them by ConocoPhillips.
3. This Temporary Restraining Order is
4. This Temporary Restraining Order shall expire
5. A hearing on ConocoPhillips' Motion for a Preliminary Injunction is schedule before this Court for
6. The following procedure shall govern the hearing on the preliminary injunction motion:
(a) Each party shall be accorded a total of one hour for the presentation of any evidence and argument by counsel.
(b) A party may rely on the affidavits submitted with its motion, opposition or reply in lieu of, or in addition to, the presentation of direct testimony by that witness, but only so long as the affiant is present at the hearing for cross-examination.
7. ConocoPhillips shall make all reasonable efforts to immediately serve upon Defendants this order, and a copy of all moving papers, and shall file proof of service thereof.