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)

1
2
3
4
5
6
7
8

JS-6

LYNN M. DEAN, Cal. Bar No. 205562
Email: [e-mail]
WILLIAM S. FISKE, Cal. Bar. No. 123071
Email: [e-mail]
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: [phone]
Facsimile: [phone]

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