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 to Show Cause and for an Order of Civil Contempt, requesting that the Court hold Douglas in contempt for a second time.

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An exception to this rule exists when there is an Order to Show Cause with temporary restraints.

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Faced with these confused, if not contradictory, claims in the Petition, the Nevada bankruptcy court sua sponte entered order to the three revenue agencies to show cause why Nevada was the appropriate district for the Chapter 7 proceeding.

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