Equinox appeals order freezing its assets

Equinox International Corp. of Las Vegas said it asked the 9th Circuit Court of Appeals in San Francisco to lift a temporary restraining order freezing its assets pending a hearing on Aug. 16 on the government's motion for a permanent injunction against the company.

Equinox had asked Federal Judge Johnnie Rawlinson in Las Vegas on Monday for an emergency order allowing it to conduct business, but brought the same motion to the U.S. Court of Appeals on Tuesday because the federal judge wasn't immediately available to conduct a hearing, said Paul Hourihan, Equinox's attorney.

"The emergency motion has been sent today to a panel of three judges in San Francisco. The hearing on this motion will begin tomorrow (Wednesday)," he said, adding a ruling is expected to be reached before the Aug. 16 hearing.

In a statement Tuesday, the multilevel marketing company also denied allegations of unfair and deceptive trade practices, false advertising, securities violations and running pyramid schemes.

These allegations were made in a suit filed last week against Equinox by the Federal Trade Commission, Nevada and five other states. Rawlinson last week froze the company's assets and appointed a receiver to study its books in advance of the Aug. 16 hearing, when the government is expected to ask that Equinox be closed permanently.

Equinox said it will mount a vigorous legal defense to show the legitimacy of its operations.

The company alleged in the statement the FTC didn't give it prior notice of its application for a restraining order or an opportunity to respond to its allegations.

It accused the FTC of using "ambush tactics to interrupt its business operations and to install a temporary receiver," and has therefore violated basic constitutional rights to due process.

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