United States Securities and Exchange Commission v. Western International Securities, Inc. et al

Filing 137

FINAL JUDGMENT AS TO DEFENDANT STEVEN GRAHAM by Judge Wesley L. Hsu in favor of United States Securities and Exchange Commission against Steven Graham: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoine d. Defendant shall satisfy this obligation by paying $44,199.66 to the Securities and Exchange Commission within 30 days after entry of this Final Judgment. 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 document for further details) Related to: NOTICE OF MOTION AND MOTION for Judgment by Consent 129 . (bm)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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UNITED STATES SECURITIES
AND EXCHANGE COMMISSION,

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Plaintiff,

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v.
Case No. 2:22-cv-04119-WLH-JCx

WESTERN INTERNATIONAL
SECURITIES, INC., NANCY COLE,
PATRICK EGAN, ANDY
GITIPITYAPON, STEVEN
GRAHAM, and THOMAS SWAN,

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Defendants,

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FINAL JUDGMENT AS TO DEFENDANT STEVEN GRAHAM

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The Securities and Exchange Commission having filed a Complaint and

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Defendant Steven Graham (“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
provided herein in paragraph IV); waived findings of fact and conclusions of law;

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Final Judgment as to Defendant Steven Graham

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Case No. 2:22-cv-04119-WLH-JC

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and waived any right to appeal from this Final Judgment:
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, directly or indirectly, Rule

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15l-1(a)(1) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 CFR

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§ 240.15l-1(a)(1)], by failing, when making a recommendation of any securities

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transaction or investment strategy involving securities to a retail customer, to act in
the best interest of the retail customer at the time the recommendation is made,
without placing his financial or other interest ahead of the interest of the retail

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customer.
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 Final Judgment by personal
service or otherwise: (a) Defendant’s officers, agents, servants, employees, and
attorneys; and (b) other persons in active concert or participation with Defendant
or with anyone described in (a).

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II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that Defendant is liable for disgorgement of $30,186.59, representing net profits

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gained as a result of the conduct alleged in the Complaint, together with

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prejudgment interest thereon in the amount of $1,513.07, and a civil penalty in the
Final Judgment as to Defendant Steven Graham

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Case No. 2:22-cv-04119-WLH-JC

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amount of $12,500 pursuant to Sections 21(d)(3), (5), and (7) of the Exchange Act
[15 U.S.C. §§ 78u(d)(3), (5), (7)]. Defendant shall satisfy this obligation by paying
$44,199.66 to the Securities and Exchange Commission within 30 days after entry

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of this Final Judgment.
Defendant may transmit payment electronically to the Commission, which
will provide detailed ACH transfer/Fedwire instructions upon request. Payment

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may also be made directly from a bank account via Pay.gov through the SEC
website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by
certified check, bank cashier’s check, or United States postal money order payable

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to the Securities and Exchange Commission, which shall be delivered or mailed to
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
and shall be accompanied by a letter identifying the case title, civil action number,

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and name of this Court; Steven Graham as a defendant in this action; and

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specifying that payment is made pursuant to this Final Judgment.

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Defendant shall simultaneously transmit photocopies of evidence of

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payment and case identifying information to the Commission’s counsel in this

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action. By making this payment, Defendant relinquishes all legal and equitable

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right, title, and interest in such funds and no part of the funds shall be returned to
Defendant.

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Final Judgment as to Defendant Steven Graham

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The Commission may enforce the Court’s judgment for disgorgement and
prejudgment interest by using all collection procedures authorized by law,
including, but not limited to, moving for civil contempt at any time after 30 days

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following entry of this Final Judgment.
The Commission may enforce the Court’s judgment for penalties by the use
of all collection procedures authorized by law, including the Federal Debt

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Collection Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil
contempt for the violation of any Court orders issued in this action. Defendant
shall pay post judgment interest on any amounts due after 30 days of the entry of

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this Final Judgment pursuant to 28 U.S.C. § 1961. The Commission shall hold the

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funds, together with any interest and income earned thereon (collectively, the

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“Fund”), pending further order of the Court.
The Commission may propose a plan to distribute the Fund subject to the
Court’s approval. Such a plan may provide that the Fund shall be distributed
pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act

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of 2002. The Court shall retain jurisdiction over the administration of any

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distribution of the Fund and the Fund may only be disbursed pursuant to an Order

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of the Court.
Regardless of whether any such Fair Fund distribution is made, amounts
ordered to be paid as civil penalties pursuant to this Judgment shall be treated as
penalties paid to the government for all purposes, including all tax purposes. To
Final Judgment as to Defendant Steven Graham

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preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or
reduction of any award of compensatory damages in any Related Investor Action
based on Defendant’s payment of disgorgement in this action, argue that he is

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entitled to, nor shall he further benefit by, offset or reduction of such compensatory

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damages award by the amount of any part of Defendant’s payment of a civil

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penalty in this action (“Penalty Offset”). If the court in any Related Investor

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Action grants such a Penalty Offset, Defendant shall, within 30 days after entry of
a final order granting the Penalty Offset, notify the Commission’s counsel in this
action and pay the amount of the Penalty Offset to the United States Treasury or to

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a Fair Fund, as the Commission directs. Such a payment shall not be deemed an

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additional civil penalty and shall not be deemed to change the amount of the civil

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penalty imposed in this Judgment. For purposes of this paragraph, a “Related
Investor Action” means a private damages action brought against Defendant by or
on behalf of one or more investors based on substantially the same facts as alleged
in the Complaint in this action.
III.

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

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Final Judgment as to Defendant Steven Graham

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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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V.

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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.

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Dated: August 28, 2024
____________________________________
HON. WESLEY L. HSU
UNITED STATES DISTRICT JUDGE

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Final Judgment as to Defendant Steven Graham

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Case No. 2:22-cv-04119-WLH-JC