Securities and Exchange Commission v. Newpoint Financial Services Inc et al

Filing 481

FINAL JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF AGAINST DEFENDANT GISSOU RASTEGAR FARAHI 479 ; Upon motion of the Commission, the Court shall determine whether it is appropriate to order disgorgement of ill-gotten gains and/or a civil penalt y. If disgorgement is ordered, Defendant shall payprejudgment interest thereon, calculated from May 1, 2003, based on the rate ofinterest used by the Internal Revenue Service for the underpayment of federalincome tax by Judge Dean D. Pregerson. (SEE DOCUMENT FOR OTHER SPECIFICS). (lc)

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JOHN B. BULGOZDY, Cal Bar. No. 219897
Email: [e-mail]
BERNARD B. SMYTH III, Cal. Bar No. 217741
Email: [e-mail]
Attorneys for Plaintiff
Securities and Exchange Commission
Michele Wein Layne, Regional Director
John W. Berry, Regional Trial Counsel
5670 Wilshire Boulevard, 11th Floor
Los Angeles, California 90036
Telephone: [phone]
Facsimile: [phone]

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,

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vs.
NEWPOINT FINANCIAL SERVICES,
INC.; JOHN FARAHI; GISSOU
RASTEGAR FARAHI; and ELAHEH
AMOUEI,

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Defendants,
and
TRIPLE “J” PLUS, LLC; QUIFF
INVESTMENTS, LTD.; JUSTIN P.
FARAHI; and JOSHUA A. FARAHI,
Relief Defendants.

Case No. CV 10-00124 DDP (JEMx)
FINAL JUDGMENT OF
PERMANENT INJUNCTION AND
OTHER RELIEF AGAINST
DEFENDANT GISSOU RASTEGAR
FARAHI

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The Securities and Exchange Commission having filed a Complaint and

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Defendant Gissou Rastegar Farahi having entered a general appearance; consented

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to the Court’s jurisdiction over her and the subject matter of this action; consented

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to entry of this Final Judgment without admitting or denying the allegations of the

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Complaint (except as to jurisdiction and except as otherwise provided herein in

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paragraph VI); waived findings of fact and conclusions of law; and waived any

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right to appeal from this Final Judgment:
I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant

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and Defendant’s agents, servants, employees, attorneys, and all persons in active

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concert or participation with them who receive actual notice of this Final Judgment

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by personal service or otherwise are permanently restrained and enjoined from

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violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of

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1934 (“Exchange Act”), 15 U.S.C. § 78j(b), and Rule 10b-5 promulgated

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thereunder, 17 C.F.R. § 240.10b-5, by using any means or instrumentality of

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interstate commerce, or of the mails, or of any facility of any national securities

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exchange, in connection with the purchase or sale of any security:

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(a)

to employ any device, scheme, or artifice to defraud;

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(b)

to make any untrue statement of a material fact or to omit to

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state a material fact necessary in order to make the statements

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made, in light of the circumstances under which they were

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made, not misleading; or

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(c)

to engage in any act, practice, or course of business which
operates or would operate as a fraud or deceit upon any person.

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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that Defendant and Defendant’s agents, servants, employees, attorneys, and all

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persons in active concert or participation with them who receive actual notice of
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this Final Judgment by personal service or otherwise are permanently restrained

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and enjoined from violating Section 17(a) of the Securities Act of 1933

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(“Securities Act”), 15 U.S.C. § 77q(a), in the offer or sale of any security by the

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use of any means or instruments of transportation or communication in interstate

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commerce or by the use of the mails, directly or indirectly:

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(a)

to employ any device, scheme, or artifice to defraud;

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(b)

to obtain money or property by means of any untrue statement

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of a material fact or any omission of a material fact necessary in

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order to make the statements made, in light of the circumstances
under which they were made, not misleading; or

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(c)

to engage in any transaction, practice, or course of business

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which operates or would operate as a fraud or deceit upon a

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purchaser.

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III.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that Defendant and Defendant’s agents, servants, employees, attorneys, and all

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persons in active concert or participation with them who receive actual notice of

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this Final Judgment by personal service or otherwise are permanently restrained

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and enjoined from violating Section 5 of the Securities Act, 15 U.S.C. § 77e, by,

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directly or indirectly, in the absence of any applicable exemption:

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(a)

Unless a registration statement is in effect as to a security,

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making use of any means or instruments of transportation or

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communication in interstate commerce or of the mails to sell

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such security through the use or medium of any prospectus or

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otherwise;

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(b)

Unless a registration statement is in effect as to a security,

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carrying or causing to be carried through the mails or in

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interstate commerce, by any means or instruments of
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transportation, any such security for the purpose of sale or for

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delivery after sale; or

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(c)

Making use of any means or instruments of transportation or

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communication in interstate commerce or of the mails to offer to

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sell or offer to buy through the use or medium of any prospectus

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or otherwise any security, unless a registration statement has

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been filed with the Commission as to such security, or while the

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registration statement is the subject of a refusal order or stop

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order or (prior to the effective date of the registration statement)

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any public proceeding or examination under Section 8 of the

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Securities Act, 15 U.S.C. § 77h.

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IV.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that, upon motion of the Commission, the Court shall determine whether it is

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appropriate to order disgorgement of ill-gotten gains and/or a civil penalty pursuant

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to Section 20(d) of the Securities Act, 15 U.S.C. § 77t(d), and Section 21(d)(3) of

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the Exchange Act, 15 U.S.C. § 78u(d)(3), and, if so, the amount(s) of the

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disgorgement and/or civil penalty. If disgorgement is ordered, Defendant shall pay

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prejudgment interest thereon, calculated from May 1, 2003, based on the rate of

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interest used by the Internal Revenue Service for the underpayment of federal

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income tax as set forth in 26 U.S.C. § 6621(a)(2). In connection with the

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Commission’s motion for disgorgement and/or civil penalties, and at any hearing

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held on such a motion: (a) Defendant will be precluded from arguing that she did

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not violate the federal securities laws as alleged in the Complaint; (b) Defendant

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may not challenge the validity of the Consent or this Final Judgment; (c) solely for

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the purposes of such motion, the allegations of the Complaint shall be accepted as

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and deemed true by the Court; and (d) the Court may determine the issues raised in

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the motion on the basis of affidavits, declarations, excerpts of sworn deposition or
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investigative testimony, and documentary evidence, without regard to the standards

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for summary judgment contained in Rule 56(c) of the Federal Rules of Civil

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Procedure. In connection with the Commission’s motion for disgorgement and/or

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civil penalties, the parties may take discovery, including discovery from

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appropriate non-parties.

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V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the

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Consent is incorporated herein with the same force and effect as if fully set forth

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herein, and that Defendant shall comply with all of the undertakings and

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agreements set forth herein.

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VI.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely

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for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy

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Code, 11 U.S.C. §523, the allegations in the complaint are true and admitted by

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Defendant, and further, any debt for disgorgement, prejudgment interest, civil

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penalty or other amounts due by Defendant under this Final Judgment or any other

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judgment, order, consent order, decree or settlement agreement entered in

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connection with this proceeding, is a debt for the violation by Defendant of the

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federal securities laws or any regulation or order issued under such laws, as set

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forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19).

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VII.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this

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Court shall retain jurisdiction of this matter for the purposes of enforcing the terms

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of this Judgment.

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Dated : February 05, 2014

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______________________________________
HONORABLE DEAN D. PREGERSON
UNITED STATES DISTRICT JUDGE

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