Faced with these confused, if not contradictory, claims in the Petition, the Nevada bankruptcy court sua sponte entered orderto the three revenue agencies toshowcause why Nevada was the appropriate district for the Chapter 7 proceeding.
On January 23, 2012, doing its best imitation of Inspector Javert and after learning that Douglas had returned to the U.S., the SEC filed a Motion for a Rule toShowCause and for an Order of Civil Contempt, requesting that the Court hold Douglas in contempt for a second time.