ORDER TO MR. SHENKMAN TO SHOW CAUSE WHY HE SHOULD NOT BE HELD IN CONTEMPT AND SANCTIONED

Re: ECF No. 357, 378, 384

LAUREL BEELER, Magistrate Judge.

The court assumes the reader's familiarity with the subject matter and procedural history of this case.1 Briefly stated, defendant Gregory Shenkman owes plaintiff Forreststream Holdings Ltd. more than $5.3 million on the judgment in this case.2 Mr. Shenkman has not made any payments toward this judgment in the nearly 23 months since judgment was entered.3

Forreststream has attempted to take discovery of Mr. Shenkman and his assets.4 The court has issued numerous orders directing Mr. Shenkman to respond to Forreststream's discovery requests and to turn over certain assets.5 Mr. Shenkman has willfully failed to comply with the court's orders. See, e.g., Forreststream Holdings Ltd. v. Shenkman, No. 16-cv-01609-LB, 2018 WL 6522218, at *3-4 (N.D. Cal. Dec. 11, 2018) (discussing Mr. Shenkman's willful violation of court orders).6

On January 2, 2019, the court issued an order directing Mr. Shenkman to pay to Forreststream from the account of GS&Co., LLC ("GS&Co.") $19,000 ("Turnover Order").7 (This amount was later reduced to $15,950.8) The court further ordered that "[Mr.] Shenkman shall neither cause nor permit the transfer of any funds from the GS&Co. Account until his obligation imposed by this paragraph is satisfied."9 On March 1, 2019, Forreststream filed a notice stating that Mr. Shenkman has not paid the $15,950 to Forreststream but has caused multiple disbursements from the GS & Co., account for personal purposes, in violation of the Turnover Order.10

On February 11, 2019, the court issued an order directing Mr. Shenkman to take certain enumerated actions to begin to bring himself into compliance with the court's prior orders ("Compliance Order").11 Among other things, the Compliance Order required Mr. Shenkman (1) by February 21, 2019, to prepare a list of all wristwatches he has or ever had in his possession, custody, or control at any point between January 1, 2016 and the present, review that list with his ex-wife Yelena Shenkman, and produce the list to Forreststream with a declaration sworn under penalty of perjury attesting to the completeness and accuracy of that list and attesting that he reviewed that list with Ms. Shenkman,12 and (2) by February 14, 2019, to produce all financial-account statements from January 1, 2016 to the present for himself, GS&Co., and MeForo USA, Inc., and, for any account statements he did not produce, produce to Forreststream a declaration sworn under penalty of perjury describing with specificity what efforts he made to obtain such account statements and why he was unable to do so.13 On March 1, 2019, Forreststream filed a notice stating that Mr. Shenkman has not provided the required declaration regarding his watches (after twice requesting an extension from Forreststream) and has not provided all financial-account statements and has not provided the required declaration regarding his efforts to obtain such financial-account statements, in violation of the Compliance Order.

The court orders Mr. Shenkman to show cause why he should not be held in contempt and sanctioned for (1) not producing the declaration regarding his watches, (2) not producing the declaration regarding his efforts to obtain financial-account statements, and (3) causing disbursements from the GS&Co. account for personal purposes. Mr. Shenkman is ordered to appear in person before the court on March 7, 2019 at 9:30 a.m. and show cause.14 The court further orders Mr. Shenkman to file any written response to Forreststream's notice by March 5, 2019. Forreststream may file a reply by March 6, 2019 at 2:00 p.m. The court reemphasizes again its earlier, repeated warnings to Mr. Shenkman that sanctions for contempt may include incarceration.15

IT IS SO ORDERED.