Securities and Exchange Commission v. JustInfo LLC et al
Filing
35
FINAL JUDGEMENT AS TO DEFENDANT SCOTT ALLENSWORTH 34 by Judge Consuelo B. Marshall, in favor of Securities and Exchange Commission against Scott Allensworth: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $335,260 representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $11,269.83, for a total of $346,529.83. Defendant shall satisfy this obligation by paying $346,529.83 to the Securities and Exchange Commission within 14 days after entry of this Final Judgment. (see document for further details) Related to: Stipulation for Judgment 34 (MD JS-6, Case Terminated). (bm)
1
2
3
4
5
6
7
KRISTIN S. ESCALANTE (Cal. Bar No. 169635)
Email: Escalantek@sec.gov
SANA MUTTALIB (Cal. Bar No. 267005)
Email: Muttalibs@sec.gov
JS-6
Attorneys for Plaintiff
Securities and Exchange Commission
Michele Wein Layne, Regional Director
Alka N. Patel, Associate Regional Director
Amy J. Longo, Regional Trial Counsel
444 S. Flower Street, Suite 900
Los Angeles, California 90071
Telephone: (323) 965-3998
Facsimile: (213) 443-1904
8
UNITED STATES DISTRICT COURT
9
CENTRAL DISTRICT OF CALIFORNIA
10
11
12
13
SECURITIES AND EXCHANGE
COMMISSION,
14
Plaintiff,
15
16
17
18
vs.
Case No. 2:17-cv-07426-CBM-JPR
FINAL JUDGEMENT AS TO
DEFENDANT SCOTT
ALLENSWORTH [34]
JUSTINFO LLC, DAVID WEDDLE,
AND SCOTT ALLENSWORTH,
Defendants.
19
20
21
22
23
24
25
26
27
28
FINAL JUDGMENT AS TO DEFENDANT SCOTT ALLENSWORTH
The Securities and Exchange Commission having filed a Complaint and
Defendant Scott Allensworth (the “Defendant”) having entered a general appearance;
consented to the Court’s jurisdiction over Defendant and the subject matter of this
action; consented to entry of this Final Judgment without admitting or denying the
allegations of the Complaint (except as to jurisdiction and except as otherwise
provided herein); waived findings of fact and conclusions of law; and waived any
right to appeal from this Final Judgment:
1
I.
1
2
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
3
permanently restrained and enjoined from violating, directly or indirectly, Section
4
10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. §
5
78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using
6
any means or instrumentality of interstate commerce, or of the mails, or of any
7
facility of any national securities exchange, in connection with the purchase or sale of
8
any security:
9
(a)
to employ any device, scheme, or artifice to defraud;
10
(b)
to make any untrue statement of a material fact or to omit to state a
11
material fact necessary in order to make the statements made, in the light of the
12
circumstances under which they were made, not misleading; or
13
(c)
14
would operate as a fraud or deceit upon any person.
15
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as
16
provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
17
binds the following who receive actual notice of this Final Judgment by personal
18
service or otherwise: (a) Defendant’s officers, agents, servants, employees, and
19
attorneys; and (b) other persons in active concert or participation with Defendant or
20
with anyone described in (a).
to engage in any act, practice, or course of business which operates or
II.
21
22
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
23
Defendant is permanently restrained and enjoined from violating Section 17(a) of the
24
Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale
25
of any security by the use of any means or instruments of transportation or
26
communication in interstate commerce or by use of the mails, directly or indirectly:
27
(a)
to employ any device, scheme, or artifice to defraud;
28
2
1
(b)
2
material fact or any omission of a material fact necessary in order to make the
3
statements made, in light of the circumstances under which they were made,
4
not misleading; or
5
(c)
6
to obtain money or property by means of any untrue statement of a
to engage in any transaction, practice, or course of business which
operates or would operate as a fraud or deceit upon the purchaser.
7
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as
8
provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
9
binds the following who receive actual notice of this Final Judgment by personal
10
service or otherwise: (a) Defendant’s officers, agents, servants, employees, and
11
attorneys; and (b) other persons in active concert or participation with Defendant or
12
with anyone described in (a).
III.
13
14
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
15
Defendant is permanently restrained and enjoined from violating Section 5 of the
16
Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any
17
applicable exemption:
18
(a)
Unless a registration statement is in effect as to a security, making use of
19
any means or instruments of transportation or communication in
20
interstate commerce or of the mails to sell such security through the use
21
or medium of any prospectus or otherwise;
22
(b)
Unless a registration statement is in effect as to a security, carrying or
23
causing to be carried through the mails or in interstate commerce, by any
24
means or instruments of transportation, any such security for the purpose
25
of sale or for delivery after sale; or
26
(c)
Making use of any means or instruments of transportation or
27
communication in interstate commerce or of the mails to offer to sell or
28
offer to buy through the use or medium of any prospectus or otherwise
3
1
any security, unless a registration statement has been filed with the
2
Commission as to such security, or while the registration statement is the
3
subject of a refusal order or stop order or (prior to the effective date of
4
the registration statement) any public proceeding or examination under
5
Section 8 of the Securities Act [15 U.S.C. § 77h].
6
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as
7
provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
8
binds the following who receive actual notice of this Final Judgment by personal
9
service or otherwise: (a) Defendant’s officers, agents, servants, employees, and
10
attorneys; and (b) other persons in active concert or participation with Defendant or
11
with anyone described in (a).
IV.
12
13
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
14
Defendant is liable for disgorgement of $335,260 representing profits gained as a
15
result of the conduct alleged in the Complaint, together with prejudgment interest
16
thereon in the amount of $11,269.83, for a total of $346,529.83. Defendant shall
17
satisfy this obligation by paying $346,529.83 to the Securities and Exchange
18
Commission within 14 days after entry of this Final Judgment.
19
Defendant may transmit payment electronically to the Commission, which will
20
provide detailed ACH transfer/Fedwire instructions upon request. Payment may also
21
be made directly from a bank account via Pay.gov through the SEC website at
22
http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified
23
check, bank cashier’s check, or United States postal money order payable to the
24
Securities and Exchange Commission, which shall be delivered or mailed to
25
Enterprise Services Center
26
Accounts Receivable Branch
27
6500 South MacArthur Boulevard
28
Oklahoma City, OK 73169
4
1
and shall be accompanied by a letter identifying the case title, civil action number,
2
and name of this Court; Scott Allensworth as a defendant in this action; and
3
specifying that payment is made pursuant to this Final Judgment.
4
Defendant shall simultaneously transmit photocopies of evidence of payment
5
and case identifying information to the Commission’s counsel in this action. By
6
making this payment, Defendant relinquishes all legal and equitable right, title, and
7
interest in such funds and no part of the funds shall be returned to Defendant.
8
The Commission shall hold the funds (collectively, the “Fund”) and may
9
propose a plan to distribute the Fund subject to the Court’s approval. The Court shall
10
retain jurisdiction over the administration of any distribution of the Fund. If the
11
Commission staff determines that the Fund will not be distributed, the Commission
12
shall send the funds paid pursuant to this Final Judgment to the United States
13
Treasury.
14
The Commission may enforce the Court’s judgment for disgorgement and
15
prejudgment interest by moving for civil contempt (and/or through other collection
16
procedures authorized by law) at any time after 14 days following entry of this Final
17
Judgment. Defendant shall pay post judgment interest on any delinquent amounts
18
pursuant to 28 U.S.C. § 1961.
19
20
21
22
V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
23
shall pay a civil penalty in the amount of $335,260 to the Securities and Exchange
24
Commission pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and
25
Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall
26
satisfy this obligation by paying $335,260 to the Securities and Exchange
27
Commission within 14 days after entry of this Final Judgment.
28
Defendant may transmit payment electronically to the Commission, which will
5
1
provide detailed ACH transfer/Fedwire instructions upon request. Payment may also
2
be made directly from a bank account via Pay.gov through the SEC website at
3
http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified
4
check, bank cashier’s check, or United States postal money order payable to the
5
Securities and Exchange Commission, which shall be delivered or mailed to
6
Enterprise Services Center
7
Accounts Receivable Branch
8
6500 South MacArthur Boulevard
9
Oklahoma City, OK 73169
10
and shall be accompanied by a letter identifying the case title, civil action number,
11
and name of this Court; Scott Allensworth as a defendant in this action; and
12
specifying that payment is made pursuant to this Final Judgment.
13
Defendant shall simultaneously transmit photocopies of evidence of payment
14
and case identifying information to the Commission’s counsel in this action. By
15
making this payment, Defendant relinquishes all legal and equitable right, title, and
16
interest in such funds and no part of the funds shall be returned to Defendant. The
17
Commission shall send the funds paid pursuant to this Final Judgment to the United
18
States Treasury. Defendant shall pay post-judgment interest on any delinquent
19
amounts pursuant to 28 USC § 1961.
20
21
VI.
22
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the
23
Consent is incorporated herein with the same force and effect as if fully set forth
24
herein, and that Defendant shall comply with all of the undertakings and agreements
25
set forth therein.
26
27
28
VII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for
purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code,
6
1
11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant,
2
and further, any debt for disgorgement, prejudgment interest, civil penalty or other
3
amounts due by Defendant under this Final Judgment or any other judgment, order,
4
consent order, decree or settlement agreement entered in connection with this
5
proceeding, is a debt for the violation by Defendant of the federal securities laws or
6
any regulation or order issued under such laws, as set forth in Section 523(a)(19) of
7
the Bankruptcy Code, 11 U.S.C. §523(a)(19).
8
VIII.
9
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court
10
shall retain jurisdiction of this matter for the purposes of enforcing the terms of this
11
Final Judgment.
12
IX.
13
There being no just reason for delay, pursuant to Rule 54(b) of the Federal
14
Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith
15
and without further notice.
16
17
Dated: March 13, 2018
18
____________________________________
____________________________________
_ _ _ _
_
_ _ _ _
19
CONSUELO B. MARSHALL
20
UNITED STATES DISTRICT JUDGE
21
22
23
24
25
26
27
28
7
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?