Securities and Exchange Commission v. MAM Wealth Management, LLC et al
Filing
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FINAL JUDGMENT AND PERMANENT INJUNCTION filed by Judge S. James Otero against defendant RaFael R Sanchez. Defendant Martinez is liable, jointly and severally with defendant Alex Martinez, for disgorgement of $9,901,536.00 representing ill-gotten gains as a result of the conduct alleged in the Complaint, plus prejudgment interest thereon in the amount of $1,110,418.15, for a total judgment of $11,011,954.15. Defendant shall satisfy this obligation by paying $11,011,954.15 within 14 days after entry of this Final Judgment.Sanchez shall pay a civil penalty in the amount of $398,321.00. Post-judgment interest to accrue pursuant to 28 USC 1961. (MD JS-6. Case Terminated) (lc) Modified on 7/2/2012 (lc).
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UNITED STATES DISTRICT COURT
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CENTRAL DISTRICT OF CALIFORNIA
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Securities and Exchange Commission,
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Plaintiff,
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v.
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MAM Wealth Management, LLC; MAMW )
Real Estate Fund General Partner, LLC; )
Alex Martinez; and Raphael Sanchez,
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Defendants.
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NO. CV 11-02934 SJO (JCx)
FINAL JUDGMENT AS TO DEFENDANT
RAFAEL SANCHEZ
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This matter having came before the Court on the Securities and Exchange Commission's
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("Commission") Motion to Determine Disgorgement and Penalties, and for Entry of Final
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Judgment. Defendant Rafael Sanchez ("Sanchez" or "Defendant")1 previously entered a general
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appearance; consented to the Court's jurisdiction over Defendant and the subject matter of this
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action; and consented to entry of a Judgment of Permanent Injunction and Other Relief without
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admitting or denying the allegations of the Complaint (except as to jurisdiction), which order was
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On the caption page of the Complaint, the Commission erroneously spelled Sanchez's first
name as "Raphael". The correct spelling of Defendant's first name is "Rafael".
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entered. Having now considered the Commission's motion and all papers for and against, the
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Court finds it appropriate to enter this Final Judgment against Defendant.
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I.
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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's
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agents, servants, employees, attorneys, and all persons in active concert or participation with them
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who receive actual notice of this Judgment by personal service or otherwise are permanently
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restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 (the "Securities
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Act"), 15 U.S.C. § 77q(a), in the offer or sale of any security by the use of any means or
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instruments of transportation or communication in interstate commerce or by use of the mails,
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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 of a material fact or
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any omission of a material fact necessary in order to make the statements made, in light of the
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circumstances under which they were made, not misleading; or
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(c)
to engage in any transaction, practice, or course of business which operates or
would operate as a fraud or deceit upon the purchaser.
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II.
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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's
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agents, servants, employees, attorneys, and all persons in active concert or participation with them
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who receive actual notice of this Judgment by personal service or otherwise are permanently
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restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities
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Exchange Act of 1934 (the "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 interstate commerce,
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or of the mails, or of any facility of any national securities exchange, in connection with the
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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 state a material fact
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necessary in order to make the statements made, in the light of the circumstances under which
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they were 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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III.
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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and
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Defendant's agents, servants, employees, attorneys, and all persons in active concert or
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participation with them who receive actual notice of this Judgment by personal service or
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otherwise are permanently restrained and enjoined from violating, directly or indirectly, while acting
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as an investment adviser, Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (the
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"Advisers Act"), 15 U.S.C. §§ 80b-6(1) & 80b-6(2), by using the mails or any means or
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instrumentality of interstate commerce:
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(a)
to employ any device, scheme, or artifice to defraud any client or prospective client;
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(b)
to engage in any transaction, practice, or course of business which operates as a
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fraud or deceit upon any client or prospective client.
IV.
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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant Martinez is
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liable, jointly and severally with defendant Alex Martinez, for disgorgement of $9,901,536,
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representing ill-gotten gains as a result of the conduct alleged in the Complaint, plus prejudgment
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interest thereon in the amount of $1,110,418.15, for a total judgment of $11,011,954.15.
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Defendant shall satisfy this obligation by paying $11,011,954.15 within 14 days after entry of this
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Final Judgment by certified check, bank cashier's check, or United States postal money order
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payable to the Securities and Exchange Commission. The payment shall be delivered or mailed
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to the Office of Financial Management, Securities and Exchange Commission, Operations Center,
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6432 General Green Way, Mail Stop 0-3, Alexandria, Virginia 22312, and shall be accompanied
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by a letter identifying the Defendant making the payment and identifying him as a Defendant in
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this action; setting forth the title and civil action number of this action and the name of this Court;
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and specifying that payment is made pursuant to this Final Judgment. Defendant shall pay
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post-judgment interest on any delinquent amounts pursuant to 28 USC § 1961. The Commission
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shall remit the funds paid pursuant to this paragraph to the United States Treasury. The
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Commission may enforce the Court's judgment for disgorgement and prejudgment interest by
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moving for civil contempt (and/or through other collection procedures authorized by law) at any
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time after 14 days following entry of this Final Judgment. In response to any such civil contempt
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motion by the Commission, Defendant may assert any legally permissible defense.
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V.
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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Sanchez shall pay a civil
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penalty in the amount of $398,321, pursuant to Section 20(d) of the Securities Act, 15 U.S.C.
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§ 77t(d), Section 21(d)(3) of the Exchange Act, 15 U.S.C. § 78u(d)(3), and Section 209(e)(1) of
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the Advisers Act, 15 U.S.C. § 80b-9(e)(1). Defendant shall each make this payment within 14
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days after entry of this Final Judgment by certified check, bank cashier's check, or United States
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postal money order payable to the Securities and Exchange Commission. The payment shall be
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delivered or mailed to the Office of Financial Management, Securities and Exchange Commission,
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Operations Center, 6432 General Green Way, Mail Stop 0-3, Alexandria, Virginia 22312, and shall
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be accompanied by a letter identifying the defendant making the payment and identifying him as
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a Defendant in this action; setting forth the title and civil action number of this action and the name
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of this Court; and specifying that payment is made pursuant to this Final Judgment. Defendant
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shall pay post-judgment interest on any delinquent amounts pursuant to 28 USC § 1961. The
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Commission shall remit the funds paid pursuant to this paragraph to the United States Treasury.
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V.
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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction
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of this matter for the purposes of enforcing the terms of this Final Judgment.
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VI.
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There being no just reason for delay, the Clerk is ordered to enter this Final Judgment forthwith
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and without further notice.
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IT IS SO ADJUDGED.
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Dated: July 2, 2012.
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S. JAMES OTERO
UNITED STATES DISTRICT JUDGE
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