Securities and Exchange Commission v. JustInfo LLC et al
Filing
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AMENDED FINAL JUDGEMENT AND PERMANENT INJUNCTION AS TO DEFENDANT JUSTINFO LLC UPON CONSENT 5 by Judge Otis D. Wright, II :Defendant is liable for disgorgement, jointly and severally with Defendant David Weddle, of $375,037.00, representing profi ts gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $13,285.34, for a total of $388,322.34.Defendant shall pay a civil penalty in the amount of $905,353.00 to the Securities and Exchange CommissionRelated to: REQUEST to Alter Judgment re Consent Judgment,, 11 . Unopposed Request to Correct Final Judgment as to Defendant Justinfo LLC 15 (lc)
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
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v.
JUSTINFO LLC, DAVID WEDDLE,
AND SCOTT ALLENSWORTH
Defendants.
Case No. 2:17-cv-07426 ODW(MRWx)
AMENDED
FINAL JUDGMENT AS TO
DEFENDANT JUSTINFO LLC
FINAL JUDGMENT AS TO DEFENDANT JUSTINFO LLC
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The Securities and Exchange Commission having filed a Complaint and
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Defendant JustInfo LLC (the “Defendant”) having entered a general appearance;
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consented to the Court’s jurisdiction over Defendant and the subject matter of this
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action; 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); waived findings of fact and conclusions of law; and waived any
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right to appeal from this Final Judgment:
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I.
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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
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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 of the
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circumstances under which they were made, not misleading; or
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(c)
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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:
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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).
to engage in any act, practice, or course of business which operates or
(a) Defendant’s officers, agents, servants, employees, and
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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 17(a) of the
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Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale
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of any security by the use of any means or instruments of transportation or
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communication 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 make the
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statements made, in light of the circumstances under which they were made,
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not misleading; or
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(c)
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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:
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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).
(a) Defendant’s officers, agents, servants, employees, and
III.
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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 5 of the
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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 of
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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 use
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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
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causing to be carried through the mails or in interstate commerce, by any
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means or instruments of transportation, any such security for the purpose
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of sale or for delivery after sale; or
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(c)
Making use of any means or instruments of transportation or
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communication in interstate commerce or of the mails to offer to sell or
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offer to buy through the use or medium of any prospectus or otherwise
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any security, unless a registration statement has been filed with the
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Commission as to such security, or while the registration statement is the
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subject of a refusal order or stop order or (prior to the effective date of
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the registration statement) any public proceeding or examination under
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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 Final Judgment by personal
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service or otherwise:
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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).
(a) Defendant’s officers, agents, servants, employees, and
IV.
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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
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Defendant is liable for disgorgement, jointly and severally with Defendant David
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Weddle, of $375,037, representing profits gained as a result of the conduct alleged in
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the Complaint, together with prejudgment interest thereon in the amount of
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$13,285.34, for a total of $388,322.34. Defendant shall satisfy this obligation by
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paying $388,322.34 to the Securities and Exchange Commission within14 days after
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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.
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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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Defendant may also pay by certified
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; JustInfo as a defendant in this action; and specifying that
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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.
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The Commission shall hold the funds (collectively, the “Fund”) and may
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propose a plan to distribute the Fund subject to the Court’s approval. The Court shall
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retain jurisdiction over the administration of any distribution of the Fund. If the
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Commission staff determines that the Fund will not be distributed, the Commission
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shall send the funds paid pursuant to this Final Judgment to the United States
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Treasury.
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The Commission may enforce the Court’s judgment for disgorgement and
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prejudgment interest by moving for civil contempt (and/or through other collection
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procedures authorized by law) at any time after 14 days following entry of this Final
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Judgment. Defendant shall pay post judgment interest on any delinquent amounts
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pursuant to 28 U.S.C. § 1961.
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V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
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shall pay a civil penalty in the amount of $905,353 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
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satisfy this obligation by paying $905,353 to the Securities and Exchange
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Commission within 14 days after entry of the 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
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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; JustInfo LLC 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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VI.
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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 agreements
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set forth therein.
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VIII.
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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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IT IS SO ORDERED.
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October 24, 2017
____________________________________
OTIS D. WRIGHT, II
UNITED STATES DISTRICT JUDGE
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PROOF OF SERVICE
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I am over the age of 18 years and not a party to this action. My business address is:
U.S. SECURITIES AND EXCHANGE COMMISSION,
444 S. Flower Street, Suite 900, Los Angeles, California 90071
Telephone No. (323) 965-3998; Facsimile No. (213) 443-1904.
On October 23, 2017, I caused to be served the document entitled FINAL
JUDGMENT AS TO DEFENDANT JUSTINFO LLC on all the parties to this
action addressed as stated on the attached service list:
OFFICE MAIL: By placing in sealed envelope(s), which I placed for
collection and mailing today following ordinary business practices. I am readily
familiar with this agency’s practice for collection and processing of correspondence
for mailing; such correspondence would be deposited with the U.S. Postal Service on
the same day in the ordinary course of business.
PERSONAL DEPOSIT IN MAIL: By placing in sealed envelope(s),
which I personally deposited with the U.S. Postal Service. Each such envelope was
deposited with the U.S. Postal Service at Los Angeles, California, with first class
postage thereon fully prepaid.
EXPRESS U.S. MAIL: Each such envelope was deposited in a facility
regularly maintained at the U.S. Postal Service for receipt of Express Mail at Los
Angeles, California, with Express Mail postage paid.
HAND DELIVERY: I caused to be hand delivered each such envelope to the
office of the addressee as stated on the attached service list.
UNITED PARCEL SERVICE: By placing in sealed envelope(s) designated
by United Parcel Service (“UPS”) with delivery fees paid or provided for, which I
deposited in a facility regularly maintained by UPS or delivered to a UPS courier, at
Los Angeles, California.
ELECTRONIC MAIL: By transmitting the document by electronic mail to
the electronic mail address as stated on the attached service list.
E-FILING: By causing the document to be electronically filed via the Court’s
CM/ECF system, which effects electronic service on counsel who are registered with
the CM/ECF system.
FAX: By transmitting the document by facsimile transmission. The
transmission was reported as complete and without error.
I declare under penalty of perjury that the foregoing is true and correct.
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Date: October 23, 2017
/s/ Sarah Mitchell
Sarah Mitchell
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SEC v. JUSTINFO LLC, et al.
United States District Court—Central District of California
Case No. 2:17-cv-07426 ODW(MRWx)
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SERVICE LIST
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Scott White (via U.S. Mail)
300 E. Main Street
4th Floor
Lexington, KY 40507
Counsel for Defendants JUSTINFO LLC and DAVID WEDDLE
Scott Allensworth (via U.S. Mail)
23220 Haskell Vista Lane
Newhall, CA 91321
Pro Se Defendant Scott Allensworth
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