Securities and Exchange Commission v. MAM Wealth Management, LLC et al

Filing 63

JUDGMENT OF PERMANENT INJUNCTION filed by Judge S. James Otero against defendant MAMW REAL ESTATE FUND GENERAL PARTNER, LLC and its agents etc. from violating Section 17(a) of the Securities Act of 1933 etc.Defendant shall pay disgorgement of ill-got ten gains, prejudgment interest thereon, and a civil penalty.Court shall determinethe amounts of the disgorgement and civil penalty upon motion of the Commission. Prejudgment interest shall be calculated from April 1, 2009, based on the rate of interest used by the Internal Revenue Service for the underpayment of federal income tax. (lc)

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1 2 3 4 5 6 7 JOHN B. BULGOZDY, Cal. Bar No. 219897 Email: bulgozdyj@sec.gov SUSAN F. HANNAN, Cal. Bar No. 97604 Email: hannans@sec.gov Attorneys for Plaintiff Securities and Exchange Commission Rosalind R. Tyson, Regional Director John M. McCoy III, Associate Regional Director 5670 Wilshire Boulevard, 11th Floor Los Angeles, California 90036 Telephone: (323) 965-3998 Facsimile: (323) 965-3908 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 SECURITIES AND EXCHANGE COMMISSION, 12 Plaintiff, 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 vs. MAM WEALTH MANAGEMENT, LLC; MAMW REAL ESTATE FUND GENERAL PARTNER, LLC; ALEX MARTINEZ; and RAPHAEL SANCHEZ, Defendants. Case No. CV 11-2934 SJO (JCx) JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF AS TO DEFENDANT MAMW REAL ESTATE FUND GENERAL PARTNER, LLC 1 The Securities and Exchange Commission having filed a Complaint and 2 Defendant MMW Real Estate Fund General Partner, LLC (“Defendant”) having 3 entered a general appearance; consented to the Court’s jurisdiction over Defendant 4 and the subject matter of this action; consented to entry of this Judgment of 5 Permanent Injunction and Other Relief (“Judgment”) without admitting or denying 6 the allegations of the Complaint (except as to jurisdiction); waived findings of fact 7 and conclusions of law; and waived any right to appeal from this Judgment: I. 8 9 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 10 and Defendant’s agents, servants, employees, attorneys, and all persons in active 11 concert or participation with them who receive actual notice of this Judgment by 12 personal service or otherwise are permanently restrained and enjoined from 13 violating Section 17(a) of the Securities Act of 1933 (the “Securities Act”), 15 14 U.S.C. § 77q(a), in the offer or sale of any security by the use of any means or 15 instruments of transportation or communication in interstate commerce or by use 16 of the mails, directly or indirectly: 17 (a) to employ any device, scheme, or artifice to defraud; 18 (b) to obtain money or property by means of any untrue statement of a 19 material fact or any omission of a material fact necessary in order to 20 make the statements made, in light of the circumstances under which 21 they were made, not misleading; or 22 (c) 23 which operates or would operate as a fraud or deceit upon the 24 purchaser. 25 26 to engage in any transaction, practice, or course of business II. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 27 Defendant and Defendant’s agents, servants, employees, attorneys, and all persons 28 in active concert or participation with them who receive actual notice of this 1 1 Judgment by personal service or otherwise are permanently restrained and enjoined 2 from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act 3 of 1934 (the “Exchange Act”), 15 U.S.C. § 78j(b), and Rule 10b-5 promulgated 4 thereunder, 17 C.F.R. § 240.10b-5, by using any means or instrumentality of 5 interstate commerce, or of the mails, or of any facility of any national securities 6 exchange, in connection with the purchase or sale of any security: 7 (a) to employ any device, scheme, or artifice to defraud; 8 (b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the 9 10 light of the circumstances under which they were made, not 11 misleading; or 12 13 14 15 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. III. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 16 Defendant shall pay disgorgement of ill-gotten gains, prejudgment interest thereon, 17 and a civil penalty pursuant to Section 20(d) of the Securities Act, 15 U.S.C. § 18 77t(d), and Section 21(d)(3) of the Exchange Act, 15 U.S.C. § 78u(d)(3). The 19 Court shall determine the amounts of the disgorgement and civil penalty upon 20 motion of the Commission. Prejudgment interest shall be calculated from April 1, 21 2009, based on the rate of interest used by the Internal Revenue Service for the 22 underpayment of federal income tax as set forth in 26 U.S.C. § 6621(a)(2). In 23 connection with the Commission’s motion for disgorgement and/or civil penalties, 24 and at any hearing held on such a motion: (a) Defendant will be precluded from 25 arguing that it did not violate the federal securities laws as alleged in the 26 Complaint; (b) Defendant may not challenge the validity of the Consent or this 27 Judgment; (c) solely for the purposes of such motion, the allegations of the 28 Complaint shall be accepted as and deemed true by the Court; and (d) the Court 2 1 may determine the issues raised in the motion on the basis of affidavits, 2 declarations, excerpts of sworn deposition or investigative testimony, and 3 documentary evidence, without regard to the standards for summary judgment 4 contained in Rule 56(c) of the Federal Rules of Civil Procedure. In connection 5 with the Commission’s motion for disgorgement and/or civil penalties, the parties 6 may take discovery, including discovery from appropriate non-parties. 7 IV. 8 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 9 Consent is incorporated herein with the same force and effect as if fully set forth 10 herein, and that Defendant shall comply with all of the undertakings and 11 agreements set forth therein. 12 V. 13 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 14 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 15 of this Judgment. 16 17 18 19 Dated: January 31, 2012 ________________________________ HON. S. JAMES OTERO UNITED STATES DISTRICT JUDGE 20 21 22 23 24 25 26 27 28 3

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