Securities and Exchange Commission v. Aletheia Research and Management Inc et al
Filing
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JUDGMENT AS TO DEFENDANT PETER J. EICHLER, JR. by Judge John F. Walter. IT IT HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active concert or participation with hi m who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), 1 5 U.S.C. 78j(b), and Rule 10b-5 promulgated thereunder, 17 C.F.R. 240.10b-5, by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sal e of any security: (a) to employ any device, scheme, or artifice to defraud; (b) to make any untrue statement of material fact or to omit to state a material fact necessary in order to make the statement made, not misleading; or (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. (See document for further details), in favor of Securities and Exchange Commission against Aletheia Research and Management Inc (bp)
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JOHN B. BULGOZDY, Cal. Bar No. 219897
Email: bulgozdyj@sec.gov
GARY Y. LEUNG, L.R. 83-2.4.1 leave to practice granted
Email: leungg@sec.gov
JANET E. MOSER, Cal. Bar No. 199171
Email: moserj@sec.gov
Attorneys for Plaintiff
Securities and Exchange Commission
Michele Wein Layne, Regional Director
Lorraine B. Echavarria, Associate Regional Director
John W. Berry, Regional Trial Counsel
5670 Wilshire Boulevard, 11th Floor
Los Angeles, California 90036
Telephone: (323) 965-3998
Facsimile: (323) 965-3908
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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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vs.
ALETHEIA RESEARCH AND
MANAGEMENT, INC., and PETER J.
EICHLER, JR.,
Defendants.
Case No. CV12-10692 JFW (RZx)
JUDGMENT AS TO DEFENDANT
PETER J. EICHLER, JR.
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The Securities and Exchange Commission having filed a Complaint and
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Defendant Peter J. Eichler, Jr. having entered a general appearance; consented to
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the Court’s jurisdiction over Defendant and the subject matter of this action;
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consented to entry of this Final Judgment without admitting or denying the
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allegations of the Complaint (except as to jurisdiction); waived findings of fact and
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conclusions of law; and waived any 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 him 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 (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
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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 state a
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material fact necessary in order to make the statements made, in light
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of the circumstances under which 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.
II.
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 him 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, Sections 206(1), 206(2) and 206(4) of the
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Investment Advisers Act (“Advisers Act”), 15 U.S.C. § 80b-6(1), (2) and (4), and
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Rule 206(4)-8(a) promulgated thereunder, 17 C.F.R. § 275.206(4)-8(a), by using
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the mails or any means of instrumentality of interstate commerce:
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(a)
prospective client;
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(b)
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to engage in any transaction, practice, or course of business which
operates as a fraud or deceit upon any client or prospective client; or
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to employ any device, scheme, or artifice to defraud any client or
(c)
to engage in any act, practice, or course of business which is
fraudulent, deceptive, or manipulative.
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
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that Defendant shall pay disgorgement of ill-gotten gains, prejudgment interest
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thereon, and a civil penalty pursuant to Section 21(d)(3) of the Exchange Act, 15
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U.S.C. § 78u(d)(3), and Section 209(e) of the Advisers Act, 15 U.S.C. § 80b-9(e).
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The Court shall determine the amounts of the disgorgement and civil penalty upon
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motion of the Commission. Prejudgment interest shall be calculated from
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December 14, 2012, based on the rate of interest used by the Internal Revenue
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Service for the underpayment of federal income tax as set forth in 26 U.S.C. §
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6621(a)(2). In connection with the Commission’s motion for disgorgement and/or
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civil penalties, and at any hearing held on such a motion: (a) Defendant will be
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precluded from arguing that it did not violate the federal securities laws as alleged
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in the Complaint; (b) Defendant may not challenge the validity of the Consent or
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this Final Judgment; (c) solely for the purposes of such motion, the allegations of
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the Complaint shall be accepted as and deemed true by the Court (except for the
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three dollar figures alleged in the final sentence of Paragraph 3, the percentage
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return figures alleged in the tables contained in Paragraphs 31 and 32, the dollar
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and percentage figures alleged in the last sentence of Paragraph 38, and the three
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dollar figures alleged in Paragraph 39); and (d) the Court may determine the issues
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raised in the motion on the basis of affidavits, declarations, excerpts of sworn
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deposition or investigative testimony, and documentary evidence, without regard to
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the standards for summary judgment contained in Rule 56(c) of the Federal Rules
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of Civil Procedure. In connection with the Commission’s motion for disgorgement
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and/or civil penalties, the parties may take discovery, including discovery from
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appropriate non-parties.
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IV.
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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 Final Judgment.
V.
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There being no just reason for delay, pursuant to Rule 54(b) of the Federal
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Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment
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forthwith and without further notice.
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Dated: November 7, 2013
______________________________
UNITED STATES DISTRICT
JUDGE JOHN F. WALTER
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