The president of MX Factors, the Riverside-based firm accused of operating a Ponzi scheme, is seeking to overturn the court order freezing his assets and appointing a receiver, according to court documents.
Richard Harkless is asking a federal judge to limit the temporary restraining order issued last week, calling it "exceedingly broad and unwarranted." Harkless said the government has mis-stated the evidence it obtained in its investigation of MX Factors.
The Securities and Exchange Commission, which filed an emergency action to stop MX Factors last week, has not shown "there is a reasonable likelihood the violations will be repeated," according to a response to the suit received Friday by Federal District Court in Riverside.
A hearing on appointing a company to oversee the return of money to Inland Empire investors the government says are Ponzi-scheme victims is scheduled for Monday in the U.S. District Court.
