Securities and Exchange Commission v. Efstratios D. Argyropoulos et al
Filing
5
JUDGMENT AS TO DEFENDANTS EFSTRATIOS "ELIAS" D. ARGRYROPOULOS AND PRIMA CAPITAL GROUP, INC. by Judge R. Gary Klausner. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED thatDefendants and Defendants officers, agents, servants, employees, attorney s, andall persons in active concert or participation with them who receive actual notice ofthis Judgment by personal service or otherwise are permanently restrained andenjoined from violating Section 17(a) of the Securities Act of 1933 (the Securitie sAct), 15 U.S.C. § 77q(a), in the offer or sale of any security by the use of anymeans or instruments of transportation or communication in interstate commerceor by use of the mails, directly or indirectly:(a) to employ any device, scheme, or ar tifice to defraud;(b) to obtain money or property by means of any untrue statement of amaterial fact or any omission of a material fact necessary in order tomake the statements made, in light of the circumstances under whichthey were made, not misleading; or(c) to engage in any transaction, practice, or course of business whichoperates or would operate as a fraud or deceit upon the purchaser. (MD JS-6, Case Terminated). (See document for further details) (bp)
1
2
3
4
5
6
7
KAREN L. MATTESON (Cal. Bar No. 102103)
Email: mattesonk@sec.gov
JACOB A. REGENSTREIF (Cal. Bar No. 234734
Email: regenstreifj@sec.gov
JS-6
Attorneys for Plaintiff
Securities and Exchange Commission
Michele W. Layne, Regional Director
Lorraine B. Echavarria, Associate Regional Director
John W. Berry, Regional Trial Counsel
444 South Flower Street, Suite 900
Los Angeles, California 90071
Telephone: (323) 965-3998
Facsimile: (323) 965-3908
8
9
10
UNITED STATES DISTRICT COURT
11
CENTRAL DISTRICT OF CALIFORNIA
12
13
SECURITIES AND EXCHANGE
COMMISSION,
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Plaintiff,
vs.
EFSTRATIOS “ELIAS” D.
ARGRYROPOULOS, AND
PRIMA CAPITAL GROUP, INC.,
Defendants.
Case No. 2:14-cv-9800 RGK (JPRx)
[PROPOSED] JUDGMENT AS TO
DEFENDANTS EFSTRATIOS “ELIAS”
D. ARGRYROPOULOS AND PRIMA
CAPITAL GROUP, INC.
1
The Securities and Exchange Commission having filed a Complaint and
2
Defendants Efstratios “Elias” D. Argyropoulos and Prima Capital Group, Inc.
3
(“Defendants”) having entered a general appearance; consented to the Court’s
4
jurisdiction over Defendants and the subject matter of this action; consented to
5
entry of this Judgment without admitting or denying the allegations of the
6
Complaint (except as to jurisdiction and except as otherwise provided herein in
7
paragraph V); waived findings of fact and conclusions of law; and waived any
8
right to appeal from this Judgment:
I.
9
10
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that
11
Defendants and Defendants’ officers, agents, servants, employees, attorneys, and
12
all persons in active concert or participation with them who receive actual notice of
13
this Judgment by personal service or otherwise are permanently restrained and
14
enjoined from violating Section 17(a) of the Securities Act of 1933 (the “Securities
15
Act”), 15 U.S.C. § 77q(a), in the offer or sale of any security by the use of any
16
means or instruments of transportation or communication in interstate commerce
17
or by use of the mails, directly or indirectly:
18
(a)
to employ any device, scheme, or artifice to defraud;
19
(b)
to obtain money or property by means of any untrue statement of a
20
material fact or any omission of a material fact necessary in order to
21
make the statements made, in light of the circumstances under which
22
they were made, not misleading; or
23
24
25
(c)
to engage in any transaction, practice, or course of business which
operates or would operate as a fraud or deceit upon the purchaser.
II.
26
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that
27
Defendants and Defendants’ officers, agents, servants, employees, attorneys, and
28
all persons in active concert or participation with them who receive actual notice of
1
1
this Judgment by personal service or otherwise are permanently restrained and
2
enjoined from violating, directly or indirectly, Section 10(b) of the Securities
3
Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. § 78j(b), and Rule 10b-5
4
promulgated thereunder, 17 C.F.R. § 240.10b-5, by using any means or
5
instrumentality of interstate commerce, or of the mails, or of any facility of any
6
national securities exchange, in connection with the purchase or sale of any
7
security:
8
(a)
to employ any device, scheme, or artifice to defraud;
9
(b)
to make any untrue statement of a material fact or to omit to state a
10
material fact necessary in order to make the statements made, in the
11
light of the circumstances under which they were made, not
12
misleading; or
(c)
13
to engage in any act, practice, or course of business which operates or
would operate as a fraud or deceit upon any person.
14
III.
15
16
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that
17
Defendants and Defendants’ officers, agents, servants, employees, attorneys, and
18
all persons in active concert or participation with them who receive actual notice of
19
this Judgment by personal service or otherwise are permanently restrained and
20
enjoined from, directly or indirectly, unless they are registered with the SEC in
21
accordance with Section 15(b) of the Exchange Act, 15 U.S.C. § 78o(b), making
22
use of the mails, or any means or instrumentality of interstate commerce to effect
23
any transactions in, or to induce or attempt to induce the purchase or sale of, any
24
security (other than an exempted security or commercial paper, bankers’
25
acceptances, or commercial bills), in violation of Section 15(a) of the Exchange
26
Act, 15 U.S.C. § 78o(a).
27
///
28
///
2
IV.
1
2
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that
3
Defendants shall pay disgorgement of ill-gotten gains and prejudgment interest
4
thereon, and Argyropoulos shall also pay a civil penalty pursuant to Section 20(d)
5
of the Securities Act, 15 U.S.C. § 77t(d), and Section 21(d)(3) of the Exchange
6
Act, 15 U.S.C. § 78u(d)(3). The Court shall determine the amounts of
7
disgorgement and civil penalty upon motion of the Commission. Prejudgment
8
interest shall be calculated from October 25, 2013, based on the rate of interest
9
used by the Internal Revenue Service for the underpayment of federal income tax
10
as set forth in 26 U.S.C. § 6621(a)(2). In connection with the Commission’s
11
motion for disgorgement and/or civil penalties, and at any hearing held on such a
12
motion: (a) Defendants will be precluded from arguing that they did not violate the
13
federal securities laws as alleged in the Complaint; (b) Defendants may not
14
challenge the validity of the Consent or this Judgment; (c) solely for the purposes
15
of such motion, the allegations of the Complaint shall be accepted as and deemed
16
true by the Court; and (d) the Court may determine the issues raised in the motion
17
on the basis of affidavits, declarations, excerpts of sworn deposition or
18
investigative testimony, and documentary evidence, without regard to the standards
19
for summary judgment contained in Rule 56(c) of the Federal Rules of Civil
20
Procedure. In connection with the Commission’s motion for disgorgement and/or
21
civil penalties, the parties may take discovery, including discovery from
22
appropriate non-parties.
23
24
V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely
25
for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy
26
Code, 11 U.S.C. §523, the allegations in the complaint are true and admitted by
27
Defendant Argyropoulos, and further, any debt for disgorgement, prejudgment
28
interest, civil penalty or other amounts due by Defendant Argyropoulos under this
3
1
Judgment or any other judgment, order, consent order, decree or settlement
2
agreement entered in connection with this proceeding, is a debt for the violation by
3
Defendant Argyropoulos of the federal securities laws or any regulation or order
4
issued under such laws, as set forth in Section 523(a)(19) of the Bankruptcy Code,
5
11 U.S.C. §523(a)(19).
6
VI.
7
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this
8
Court shall retain jurisdiction of this matter for the purposes of enforcing the terms
9
of this Judgment.
VII.
10
11
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, there
12
being no just reason for delay, the Clerk of the Court is hereby directed, pursuant
13
to Rule 54(b) of the Federal Rules of Civil Procedure, to enter this Judgment
14
forthwith.
15
16
17
Dated: January 05, 2015
__________________________________
UNITED STATES DISTRICT JUDGE
18
19
20
21
22
23
24
25
26
27
28
4
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?