A federal judge in Atlanta has named a receiver and put down a permanent injunction in the case involving Chattanooga native John Woods, who the Securities and Exchange Commission said carried out a "massive Ponzi scheme."
The injunction "restrains and enjoins Woods and Horizon from dissipating, concealing, or transferring any assets which could be the subject of an order directing disgorgement or the payment of civil money penalties in this action, and so that prompt service on appropriate financial institutions can be made to prevent any potential dissipation of assets governed by this order."
Judge Steven Grimberg also put down an order forbidding altering or destroying any documents pertinent to the case.
The assets of Woods and Horizon were ordered to be frozen.
He said Woods could have access to some funds, saying, "Woods shall be limited to a maximum of $10,000 per month for personal expenses and no more than $25,000 per month for legal fees and retainers from this account."
A. Cotton Wright of the law firm Grier Wright and Martinez PA was named as receiver to oversee the assets and obligations of Woods and Horizon.