Securities and Exchange Commission v. Robert Yang et al

Filing 106

JUDGMENT AS TO DEFENDANT SUNCOR HESPERIA, LLC by Judge Stephen V. Wilson, in favor of Securities and Exchange Commission against Suncor Hesperia, LLC (bm)

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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, 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 Judgment by personal service or

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otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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

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)

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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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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 Judgment by personal service or

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otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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to obtain money or property by means of any untrue statement of a

to engage in any transaction, practice, or course of business which

III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant shall pay disgorgement of ill-gotten gains and prejudgment interest

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thereon; that the amounts of the disgorgement and civil penalty shall be determined

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by the Court upon motion of the Commission; and that prejudgment interest shall be

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calculated from December 5, 2012, based on the rate of interest used by the Internal

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Revenue Service for the underpayment of federal income tax as set forth in 26 U.S.C.

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§ 6621(a)(2). Upon motion of the Commission, the Court shall determine whether a

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civil penalty 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)] is appropriate and, if

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so, the amount of the penalty. In connection with the Commission’s motion for

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disgorgement and/or civil penalties, and at any hearing held on such a motion: (a)

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Defendant will be precluded from arguing that it did not violate the federal securities

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laws as alleged in the Complaint; (b) Defendant may not challenge the validity of the

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Consent or this Judgment; (c) solely for the purposes of such motion, the allegations

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of the Complaint shall be accepted as and deemed true by the Court; and (d) the Court
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