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August 21, 2007

Honorable David H. Coar
United States District Court

Re: Federal Trade Commission v. Sili Neutraceuticals, TIC, and Brian McDaid
No. 07C4541

Dear Judge Coar:
I have been retained to represent the defendants Brian McDaid and Sili Neutraceuticals, LLC, in this FTC enforcement action assigned to your Honor. I have secured Mr. Wernikoff's permission to write directly to your Honor to address scheduling issues. Defendants are specifically requesting a continuance of the status conference scheduled for Wednesday, August 22, 2007, at 9:00 a.m.

The defendants and their attorneys reside in the Philadelphia metropolitian area, and are apparently the subject of an active grand jury investigation within the Eastern District of Pennsylvania. The TRO entered in your Honor's enforcement case froze all of the defendant's assets, and their bank accounts, and prohibits defendant McDaid from spending any money or operating his legitimate business entities. Further, the mandatory disclosure provisions of that TRO present substantial, serious Fifth Amendment issues for defendant McDaid. The Assistant United States Attorney supervising the grand jury investigation in Philadelphia will not agree to immunize whatever statements Mr. McDaid makes here, and will not agree to permit some disclosures to be made here without arguing that these disclosures constitute Fifth Amendment waivers.

I have been negotiating with FTC counsel over the last few days on the scope of an agreed Preliminary Injunction, but we do not yet have an agreement to offer for the Court's approval. I think I speak for both counsel when I say that we are optimistic that the remaining gaps can be bridged before next Monday's scheduled Preliminary Injunction hearing.

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Finally, I am in the process of trying to secure local counsel in your Honor's district. I have been handicapped so far by the limitations imposed on Mr. McDaid's ability to spend money to hire counsel. I also hope to have the local counsel issue addressed before Monday's scheduled hearing.

We respectfully request a continuance of the status conference scheduled tomorrow. We appreciate your consideration.

Respectfully submitted,

cc:
Steven M. Weririkoff
Marissa J. Reich

Attachment	Date	Size
DefLetterJudge.pdf	08/24/07 10:36 am	65.71 KB