Securities and Exchange Commission v. Harrison Schumacher et al

Filing 18

JUDGMENT FOR INJUNCTIVE AND OTHER RELIEF AS TO DEFENDANT PAUL J. MYSYK (SEE DOCUMENT FOR SPECIFICS) 15 filed by Judge Dean D. Pregerson (lc)

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NO JS-6

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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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Case No. 15-CV-06388 DDP
JUDGMENT FOR INJUNCTIVE AND
OTHER RELIEF AS TO
DEFENDANT PAUL J. MYSYK

vs.
HARRISON SCHUMACHER, et al.
Defendants.

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The Securities and Exchange Commission (“Commission”) having filed a
Complaint and Defendant Paul J. Mysyk (“Defendant”) having entered a general

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appearance; consented to the Court’s jurisdiction over Defendant and the subject

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matter of this action; consented to entry of this Judgment without admitting or

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denying the allegations of the Complaint (except as to jurisdiction); waived

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findings of fact and conclusions of law; and waived any right to appeal from this

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Final Judgment:

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I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant
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is permanently restrained and enjoined from violating Section 17(a)(2), (3) of the
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Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)(2), (3) ] in the
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offer or sale of any security by the use of any means or instruments of
transportation or communication in interstate commerce or by use of the mails,
directly or indirectly:

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(a)

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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(b)

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
provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
binds the following who receive actual notice of this Judgment by personal service

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

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

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anyone described in (a).

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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that Defendant is permanently restrained and enjoined from violating Section 5 of

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the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any

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applicable exemption:

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(a)

Unless a registration statement is in effect as to a security, making use

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of any means or instruments of transportation or communication in

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interstate commerce or of the mails to sell such security through the

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use or medium of any prospectus or otherwise;
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(b)

Unless a registration statement is in effect as to a security, carrying or
causing to be carried through the mails or in interstate commerce, by

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any means or instruments of transportation, any such security for the

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purpose of sale or for delivery after sale; or
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(c)

Making use of any means or instruments of transportation or
communication in interstate commerce or of the mails to offer to sell
or offer to buy through the use or medium of any prospectus or

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otherwise any security, unless a registration statement has been filed

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with the Commission as to such security, or while the registration

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statement is the subject of a refusal order or stop order or (prior to the

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effective date of the registration statement) any public proceeding or
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examination under Section 8 of the Securities Act [15 U.S.C. § 77h].

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

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

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anyone described in (a).

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III.
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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
that Defendant is permanently barred from participating in an offering of penny

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stock, including engaging in activities with a broker, dealer, or issuer for purposes
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of issuing, trading, or inducing or attempting to induce the purchase or sale of any

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penny stock. A penny stock is any equity security that has a price of less than five

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dollars, except as provided in Rule 3a51-1 under the Exchange Act [17 C.F.R.

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240.3a51-1].
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IV.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the

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Consent is incorporated herein with the same force and effect as if fully set forth

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herein, and that Defendant shall comply with all of the undertakings and

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agreements set forth therein.

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V.

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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 Judgment and of resolving Plaintiff’s requests for other relief against the

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Defendant as set forth in the Complaint.

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Dated: August 28, 2015
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UNITED STATES DISTRICT JUDGE

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