Securities and Exchange Commission v. Thomas Miller et al

Filing 197

FINAL JUDGMENT AS TO DEFENDANT THOMAS MILLER ONLY 192 by Judge Consuelo B. Marshall. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Rule 13a-14 of the Securities Exchange Act of 1934 by certifying a periodic report containing false statements filed by an issuer in accordance with Exchange Act Section 13(a). IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a civil penalty in the amount of $55,000 to the Securities and Exchange Commission pursuant to Section 21(d)(3) of the Exchange Act, 15 U.S.C. Section 78u(d). Defendant shall make this payment within 14 days after entry of this Final Judgment. Defendant shall pay post-judgment interest on any delinquent amounts. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. See order for further details. (shb)

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GARY Y. LEUNG (Cal. Bar No. 302928)
Email: [e-mail]
LYNN M. DEAN (Cal. Bar No. 205562)
Email: [e-mail]
Attorneys for Plaintiff
Securities and Exchange Commission
Michele Wein Layne, Regional Director
Amy Jane Longo, Regional Trial Counsel
444 S. Flower Street, Suite 900
Los Angeles, California 90071
Telephone: [phone]
Facsimile: [phone]

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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,

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Plaintiff,

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vs.
THOMAS MILLER and WILLIAM
LIANG,
Defendants.

Case No. 2:17-cv-00897-CBM-RAO
FINAL JUDGMENT AS TO
DEFENDANT THOMAS MILLER
ONLY [ 192]

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FINAL JUDGMENT AS TO DEFENDANT THOMAS MILLER

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The Securities and Exchange Commission having filed a Complaint and

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Defendant Thomas Miller having entered a general appearance; consented to the

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Court’s jurisdiction over Defendant and the subject matter of this action; consented to

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entry of this Final Judgment without admitting or denying the allegations of the

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Complaint (except as to jurisdiction and except as otherwise provided herein in

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paragraph VI); waived findings of fact and conclusions of law; and waived any right

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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 Rule 13a-14 of the Securities

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Exchange Act of 1934 (“Exchange Act,”) 17 C.F.R. § 240.13a-14, by certifying a

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periodic report containing false statements filed by an issuer in accordance with

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Exchange Act Section 13(a).

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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 officers, agents, servants, employees, and

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

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with anyone described in (a).

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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant is permanently restrained and enjoined from violating Section 13(b)(5) of

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the Exchange Act, 15 U.S.C. § 78m(b)(5) and Rule 13b2-1 thereunder, 17 C.F.R. §

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240.13b2-1, by knowingly circumventing or knowingly failing to implement a system

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of accounting controls or by knowingly falsifying any book, record, or account, of

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such issuer.

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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 officers, agents, servants, employees, and

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

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with anyone described in (a).

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III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is permanently restrained and enjoined from aiding and abetting any

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violation of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act of the

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Exchange Act, 15 U.S.C. §§ 78m(b)(2)(A) and (B), by knowingly or recklessly

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providing substantial assistance to an issuer in:

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1)

failing to make and keep books, records, and accounts, which, in

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reasonable detail, accurately and fairly reflect the transactions and dispositions of the

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assets of the issuer; or

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2)

failing to devise and maintain a system of internal accounting controls

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sufficient to provide reasonable assurances that transactions are recorded as necessary

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to permit preparation of financial statements in conformity with generally accepted

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accounting principles or any other criteria applicable to such statements, and to

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maintain accountability for assets.

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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 officers, agents, servants, employees, and

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

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with anyone described in (a).

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

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shall pay a civil penalty in the amount of $55,000 to the Securities and Exchange

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Commission pursuant to Section 21(d)(3) of the Exchange Act, 15 U.S.C. § 78u(d).

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Defendant shall make this payment within 14 days after entry of this Final Judgment.

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Defendant may transmit payment electronically to the Commission, which will

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provide detailed ACH transfer/Fedwire instructions upon request. Payment may also

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be made directly from 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
Accounts Receivable Branch
6500 South MacArthur Boulevard
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 Miller as a defendant in this action; and specifying

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that payment is made pursuant to this Final Judgment.

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Defendant shall simultaneously transmit photocopies of evidence of payment

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and case identifying information to the Commission’s counsel in this action. By

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making this payment, Defendant relinquishes all legal and equitable right, title, and

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interest in such funds and no part of the funds shall be returned to Defendant. The

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Commission shall send the funds paid pursuant to this Final Judgment to the United

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States Treasury. Defendant shall pay post-judgment interest on any delinquent

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amounts pursuant to 28 USC § 1961.

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V.
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 agreements

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set forth therein.

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VI.
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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VII.

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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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IX.

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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: February 14, 2019
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HON. CONSUELO B. MARSHALL
UNITED STATES DISTRICT JUDGE

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