The plaintiffs brought a motion for contempt against the Lin Defendants for failing to comply with previous court orders, including a Mareva injunction, which required them to provide affidavits of assets, submit to examinations under oath, and provide a monthly accounting.
The Lin Defendants failed to attend the examinations, failed to provide the required information, and could not be located.
The court declined to make a formal finding of contempt at this stage, noting it is a remedy of last resort.
Instead, the court issued a declaration of breach, struck the Lin Defendants' pleadings, froze their assets without allowance for business expenses, and set a timetable for the plaintiffs to move for default judgment.