Securities and Exchange Commission v. Justin Moongyu Lee et al

Filing 38

FINAL JUDGMENT AS TO DEFENDANT THOMAS EDWARD KENT by Judge R. Gary Klausner in favor of Securities and Exchange Commission against Thomas Edward Kent. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 (the Securities Act) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of transportation or communicationin interstate commerce or by use o f the mails, directly or indirectly:(a) to employ any device, scheme, or artifice to defraud; (b) to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statem ents made, in light of the circumstances under which they were made, not misleading; or (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $102,548.20, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $14,680.80, for a t otal of $117,229.00. Defendant shall satisfy thisobligation by paying $117,229.00 to the Securities and Exchange Commission within 14 days after entry of this Final Judgment. (See order for further details). Related to: Stipulation for Settlement 35 . (shb)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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WESTERN DIVISION

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SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,

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vs.
JUSTIN MOONGYU LEE;
REBECCA TAEWON LEE;
THOMAS EDWARD KENT;
AMERICAN IMMIGRANT
INVESTMENT FUND I, LLC;
BIOFUEL VENTURE IV, LLC;
BIOFUEL VENTURE V, LLC;
NEXLAND, INC., dba NEXLAND
INVESTMENT GROUP; and
NEXSUN ETHANOL, LLC,
Defendants.

Case No. 2:14-cv-06865 RGK (Ex)
FINAL JUDGMENT AS TO
DEFENDANT THOMAS EDWARD
KENT

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The Securities and Exchange Commission having filed a Complaint and

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Defendant Thomas Edward Kent 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 and except as otherwise

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provided herein in paragraph V); waived findings of fact and conclusions of law; and

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waived any right to appeal from this Final Judgment:

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I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is

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permanently restrained and enjoined from violating Section 17(a) of the Securities

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Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any

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security by the use of any means or instruments of transportation or communication

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in interstate commerce or by use of the mails, 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

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material fact or any omission of a material fact necessary in order to

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make the statements made, in 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 transaction, practice, or course of business which
operates or would operate as a fraud or deceit upon the purchaser.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Final Judgment by personal

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service or otherwise: (a) Defendant’s agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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II.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
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is permanently restrained and enjoined from violating, directly or indirectly, Section

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10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. §

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78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using

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any means or instrumentality of interstate commerce, or of the mails, or of any

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facility of any national securities exchange, in connection with the purchase or sale of

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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 the light

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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.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Final Judgment by personal

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service or otherwise: (a) Defendant’s agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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III.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

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is liable for disgorgement of $102,548.20, representing profits gained as a result of

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the conduct alleged in the Complaint, together with prejudgment interest thereon in

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the amount of $14,680.80, for a total of $117,229.00. Defendant shall satisfy this

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obligation by paying $117,229.00 to the Securities and Exchange Commission within

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14 days after entry of this Final Judgment. Defendant may transmit payment

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electronically to the Commission, which will provide detailed ACH transfer/Fedwire

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instructions upon request. Payment may also be made directly from a bank account

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via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm.
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Defendant may also pay by certified check, bank cashier’s check, or United States

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postal money order payable to the Securities and Exchange Commission, which shall

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be delivered or mailed to

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Enterprise Services Center

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Accounts Receivable Branch

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6500 South MacArthur Boulevard

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Oklahoma City, OK 73169

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and shall be accompanied by a letter identifying the case title, civil action number,

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and name of this Court; Thomas Edward Kent as a defendant in this action; and

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specifying that payment is made pursuant to this Final Judgment. Defendant shall

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simultaneously transmit photocopies of evidence of payment and case identifying

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information to the Commission’s counsel in this action. By making this payment,

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Defendant relinquishes all legal and equitable right, title, and interest in such funds

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and no part of the funds shall be returned to Defendant. The Commission shall hold

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the funds (collectively, the “Fund”) and may propose a plan to distribute the Fund

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subject to the Court’s approval. The Court shall retain jurisdiction over the

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administration of any distribution of the Fund. If the Commission staff determines

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that the Fund will not be distributed, the Commission shall send the funds paid

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pursuant to this Final Judgment to the United States Treasury. The Commission may

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enforce the Court’s judgment for disgorgement and prejudgment interest by moving

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for civil contempt (and/or through other collection procedures authorized by law) at

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any time after 14 days following entry of this Final Judgment. Defendant shall pay

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post judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.

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IV.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

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shall pay a civil penalty in the amount of $102,548.20 to the Securities and Exchange

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Commission pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and

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Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall make
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this payment within 14 days after entry of this Final Judgment. Defendant may

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transmit payment electronically to the Commission, which will provide detailed ACH

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transfer/Fedwire instructions upon request. Payment may also be made directly from

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a bank account via Pay.gov through the SEC website at

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http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified

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check, bank cashier’s check, or United States postal money order payable to the

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Securities and Exchange Commission, which shall be delivered or mailed to

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Enterprise Services Center

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Accounts Receivable Branch

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6500 South MacArthur Boulevard

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Oklahoma City, OK 73169

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and shall be accompanied by a letter identifying the case title, civil action number,

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and name of this Court; Thomas Edward Kent as a defendant in this action; and

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specifying that payment is made pursuant to this Final Judgment. Defendant shall

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simultaneously transmit photocopies of evidence of payment and case identifying

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information to the Commission’s counsel in this action. By making this payment,

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Defendant relinquishes all legal and equitable right, title, and interest in such funds

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and no part of the funds shall be returned to Defendant. The Commission shall send

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the funds paid pursuant to this Final Judgment to the United States Treasury.

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Defendant shall pay post-judgment interest on any delinquent amounts pursuant to 28

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USC § 1961.

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V.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for

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purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code,

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11 U.S.C. § 523, the allegations in the complaint are true and admitted by Defendant,

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and further, any debt for disgorgement, prejudgment interest, civil penalty or other

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amounts due by Defendant under this Final Judgment or any other judgment, order,

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consent order, decree or settlement agreement entered in connection with this
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proceeding, is a debt for the violation by Defendant of the federal securities laws or

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any regulation or order issued under such laws, as set forth in Section 523(a)(19) of

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the Bankruptcy Code, 11 U.S.C. § 523(a)(19).

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VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court

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shall retain jurisdiction of this matter for the purposes of enforcing the terms of this

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Final Judgment.

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VII.

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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 forthwith

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and without further notice.

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Dated: September 21, 2015
________________________________
HONORABLE R. GARY KLAUSNER
UNITED STATES DISTRICT JUDGE

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