Securities and Exchange Commission v. Scott London et al

Filing 7

JUDGMENT by Judge R. Gary Klausner, in favor of Securities and Exchange Commission against Scott London. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendants agents, servants, employees, attorneys, and all persons in active conce rt or participation with them who receive actual notice of this 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 Exchan ge Act) [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5]. Defendant shall pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil penalty pursuant to 21A of the Exchange Act, [15 U.S.C. § 78u-1]. (See order for further details). (shb)

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1 2 3 4 5 6 7 8 JS-6 LYNN M. DEAN, Cal. Bar No. 205562 Email: deanl@sec.gov WILLIAM S. FISKE, Cal. Bar. No. 123071 Email: fiskew@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 9 UNITED STATES DISTRICT COURT 10 CENTRAL DISTRICT OF CALIFORNIA 11 12 13 SECURITIES AND EXCHANGE COMMISSION, Case No. 13-CV-02558 RGK (PJWx) Plaintiff, JUDGMENT AS TO DEFENDANT SCOTT LONDON 14 15 16 17 vs. SCOTT LONDON AND BRYAN SHAW, Defendants. 18 19 The Securities and Exchange Commission having filed a Complaint and 20 Defendant Scott London having entered a general appearance; consented to the 21 Court’s jurisdiction over Defendant and the subject matter of this action; consented 22 to entry of this Judgment; waived findings of fact and conclusions of law; and 23 waived any right to appeal from this Judgment: 24 25 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 26 and Defendant’s agents, servants, employees, attorneys, and all persons in active 27 concert or participation with them who receive actual notice of this Judgment by 28 1 1 personal service or otherwise are permanently restrained and enjoined from 2 violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 3 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 9 10 11 12 13 14 state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were 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. II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 15 that Defendant shall pay disgorgement of ill-gotten gains, prejudgment interest 16 thereon, and a civil penalty pursuant to 21A of the Exchange Act, [15 U.S.C. 17 § 78u-1]. The Court shall determine the amounts of the disgorgement and civil 18 penalty upon motion of the Commission. Prejudgment interest shall be calculated 19 from October 1, 2010 based on the rate of interest used by the Internal Revenue 20 Service for the underpayment of federal income tax as set forth in 26 U.S.C. 21 § 6621(a)(2). In connection with the Commission’s motion for disgorgement 22 and/or civil penalties, and at any hearing held on such a motion: (a) Defendant will 23 be precluded from arguing that he did not violate the federal securities laws as 24 alleged in the Complaint; (b) Defendant may not challenge the validity of the 25 Consent or this Judgment; (c) solely for the purposes of such motion, the 26 allegations of the Complaint shall be accepted as and deemed true by the Court; 27 and (d) the Court may determine the issues raised in the motion on the basis of 28 2 1 affidavits, declarations, excerpts of sworn deposition or investigative testimony, 2 and documentary evidence, without regard to the standards for summary judgment 3 contained in Rule 56(c) of the Federal Rules of Civil Procedure. In connection 4 with the Commission’s motion for disgorgement and/or civil penalties, the parties 5 may take discovery, including discovery from appropriate non-parties. 6 III. 7 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 8 Consent is incorporated herein with the same force and effect as if fully set forth 9 herein, and that Defendant shall comply with all of the undertakings and 10 agreements set forth therein. 11 IV. 12 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 13 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 14 of this Judgment. 15 16 17 Dated: June 27, 2013 __________________________________ UNITED STATES DISTRICT JUDGE 18 19 20 21 22 23 24 25 26 27 28 3

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