Securities and Exchange Commission v. Forum National Investments Ltd. et al

Filing 56

JUDGMENT OF PERMANENT INJUNCTION AND DISGORGEMENT AS TO DEFENDANT DANIEL CLOZZA (DKT. 52 ) filed by Judge John A. Kronstadt. Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934. This Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Judgment. (ah)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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EASTERN DIVISION

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SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,

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vs.
FORUM NATIONAL INVESTMENTS LTD.,
DANIEL CLOZZA,
ROBERT LOGAN DUNN,
WILLIAM BRAD ANGUKA, and
AHMAD FARID GHAZNAWI,

CIVIL NO.
5:14-cv-02376-JAK(DTBx)

Defendants.

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JUDGMENT OF PERMANENT INJUNCTION AND DISGORGEMENT AS TO
DEFENDANT DANIEL CLOZZA
The Securities and Exchange Commission ("SEC") having filed a Complaint and Defendant
Daniel Clozza having entered a general appearance; consented to the Court’s jurisdiction over

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Defendant and the subject matter of this action; consented to entry of this Judgment without

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admitting or denying the allegations of the Complaint (except as to jurisdiction and except as

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otherwise provided herein in paragraph VII.); waived findings of fact and conclusions of law; and

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waived any right to appeal from this Judgment:

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I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently
restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities
Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated

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thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce,
or of the mails, or of any facility of any national securities exchange, in connection with the
purchase or sale of 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 material fact

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necessary in order to make the statements made, in the light of the circumstances

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under which they were made, not misleading; or

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(c)

to engage in any act, practice, or course of business which operates or would

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operate as a fraud or deceit upon any person.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in

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Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

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receive actual notice of this Judgment by personal service or otherwise: (a) Defendant’s officers,

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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 that the Court

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shall, upon motion of the SEC, order whether an Officer and Director Bar or Penny Stock Bar

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should be ordered against Defendant, including the length (if any) of such bars. Defendant further

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agrees that in connection with the SEC’s motion, and at any hearing held on such a motion: (a)

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Defendant will be precluded from arguing that he did not violate the federal securities laws as

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alleged in the Complaint; (b) Defendant may not challenge the validity of this Consent or the

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Judgment; (c) solely for the purposes of such motion, the allegations of the Complaint shall be

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accepted as and deemed true by the Court; and (d) the Court may determine the issues raised in the

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motion on the basis of affidavits, declarations, excerpts of sworn deposition or investigative

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testimony, and documentary evidence, without regard to the standards for summary judgment
contained in Rule 56(c) of the Federal Rules of Civil Procedure, except that either Party may move
the Court to allow discovery in connection with such motion and any opposition to such motion.

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III.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for

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disgorgement of $52,917, representing profits gained as a result of the conduct alleged in the

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Complaint, together with prejudgment interest thereon in the amount of $5,691. Defendant shall

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satisfy this obligation by paying $58,608 pursuant to the terms of the payment schedule set forth in

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paragraph IV. below.

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Defendant may transmit payment electronically to the SEC, which will provide detailed

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ACH transfer/Fedwire instructions upon request. Payment 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.

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Defendant may also pay by certified check, bank cashier’s check, or United States postal money

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order payable to the 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, and name of this

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Court; Daniel Clozza as a defendant in this action; and specifying that payment is made pursuant to

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this Judgment.

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Defendant shall simultaneously transmit photocopies of evidence of payment and case

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identifying information to the SEC’s counsel in this action. By making this payment, Defendant

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relinquishes all legal and equitable right, title, and interest in such funds and no part of the funds

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shall be returned to Defendant. The SEC shall send the funds paid pursuant to this Judgment to the

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

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pursuant to 28 USC § 1961.

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IV.
Daniel Clozza shall pay the total disgorgement and prejudgment interest due of $58,608
USD to the SEC according to the following schedule: (1) $10,000 USD, within 14 days of entry of
this Judgment; and (2) $48,608 USD, within one year of entry of this Judgment. Payments shall be

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deemed made on the date they are received by the SEC and shall be applied first to post judgment

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interest, which accrues pursuant to 28 U.S.C. § 1961 on any delinquent amounts due. Prior to

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making the final payment set forth herein, Daniel Clozza shall contact the staff of the SEC for the

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amount due for the final payment.

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If Daniel Clozza fails to make any payment by the date agreed and/or in the amount agreed
according to the schedule set forth above, all outstanding payments under this Judgment, including

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post-judgment interest, minus any payments made, shall become due and payable immediately at
the discretion of the staff of the SEC without further application to the Court.
V.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is

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incorporated herein with the same force and effect as if fully set forth herein, and that Defendant

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shall comply with all of the undertakings and agreements set forth therein.

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VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of

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exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the

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allegations in the complaint are true and admitted by Defendant, and further, any debt for

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disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this

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Judgment or any other judgment, order, consent order, decree or settlement agreement entered in

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connection with this proceeding, is a debt for the violation by Defendant of the federal securities

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laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the
Bankruptcy Code, 11 U.S.C. §523(a)(19).VIII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain

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jurisdiction of this matter for the purposes of enforcing the terms of this Judgment.

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VII.

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There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil

Procedure, the Clerk is ordered to enter this Judgment forthwith and without further notice.
Dated: February 29, 2016

__________________________________
JOHN A. KRONSTADT
UNITED STATES DISTRICT JUDGE

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