Securities and Exchange Commission v. Peter H. Pocklington et al

Filing 202

FINAL JUDGMENT AS TO DEFENDANT TERRENCE J. WALTON 174 by Judge Fernando L. Aenlle-Rocha : Defendant Terrence J. Walton is permanently restrained and enjoined from violating the Securties Act as cited. Defendant shall pay a civil penalty in the amount of $27,162.00 to the Securities and Exchange Commission. Defendant shall make this payment within 30 days after entry of this FinalJudgment. (SEE DOCUMENT FOR COMPLIANCE REQUIREMENTS AND DEADLINES). (lc)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,

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v.
PETER H. POCKLINGTON,
LANTSON E. ELDRED, TERRENCE
J. WALTON, YOLANDA C.
VELAZQUEZ a/k/a LANA
VELAZQUEZ a/k/a LANA PULEO,
VANESSA PULEO, ROBERT A.
VANETTEN, NOVA OCULUS
PARTNERS, LLC, f/k/a THE EYE
MACHINE, LLC, and AMC
HOLDINGS, LLC,
Defendants.
EVA S. POCKLINGTON, DTR
HOLDINGS, LLC, COBRA
CHEMICAL, LLC, and GOLD STAR
RESOURCES, LLC,
Relief Defendants.

Case No. 5:18-cv-00701-FLA (SPx)
FINAL JUDGMENT AS TO
DEFENDANT TERRENCE J.
WALTON [DKT. 174]

FINAL JUDGMENT AS TO TERRENCE J. WALTON

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The Securities and Exchange Commission (the “Commission”) having filed a

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Complaint and Defendant Terrence J. Walton (“Defendant”) having entered a general

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appearance; consented to the court’s jurisdiction over Defendant and the subject

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matter of this action; consented to entry of this Final Judgment without admitting or

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

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otherwise provided herein in paragraph III); waived findings of fact and conclusions

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of law; and waived any 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 Section 17(a)(3) of the Securities

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Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)(3)] in the offer or sale of any

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security by the use of any means or instruments of transportation or communication

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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

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make the statements made, in light of the circumstances under which

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they were made, 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: (a) Defendant’s officers, agents, servants, employees, and

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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).

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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant shall pay a civil penalty in the amount of $27,162.00 to the Securities and

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Exchange Commission pursuant to Section 20(d) of the Securities Act 15 U.S.C.

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§ 77t(d). Defendant shall make this payment within 30 days after entry of this Final

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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
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,

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and name of this court; Terrence J. Walton 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 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 may enforce the court’s judgment for penalties by the use of

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all collection procedures authorized by law, including the Federal Debt Collection

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Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil contempt for the

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violation of any court orders issued in this action. Defendant shall pay post judgment

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interest on any amounts due after 30 days of the entry of this Final Judgment pursuant

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to 28 U.S.C. § 1961. The Commission shall hold the funds, together with any interest
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and income earned thereon (collectively, the “Fund”), pending further order of the

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court.

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The Commission may propose a plan to distribute the Fund subject to the

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court’s approval. Such a plan may provide that the Fund shall be distributed pursuant

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to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002.

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The court shall retain jurisdiction over the administration of any distribution of the

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Fund, and the Fund may only be disbursed pursuant to an Order of the court.

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Regardless of whether any such Fair Fund distribution is made, amounts

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ordered to be paid as civil penalties pursuant to this Judgment shall be treated as

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penalties paid to the government for all purposes, including all tax purposes. To

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preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or

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reduction of any award of compensatory damages in any Related Investor Action

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based on Defendant’s payment of disgorgement in this action, argue that he is entitled

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

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award by the amount of any part of Defendant’s payment of a civil penalty in this

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action (“Penalty Offset”). If the court in any Related Investor Action grants such a

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Penalty Offset, Defendant shall, within 30 days after entry of a final order granting

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the Penalty Offset, notify the Commission’s counsel in this action and pay the amount

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of the Penalty Offset to the United States Treasury or to a Fair Fund, as the

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Commission directs. Such a payment shall not be deemed an additional civil penalty

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and shall not be deemed to change the amount of the civil penalty imposed in this

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Judgment. For purposes of this paragraph, a “Related Investor Action” means a

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private damages action brought against Defendant by or on behalf of one or more

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investors based on substantially the same facts as alleged in the Complaint in this

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action.

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III.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for
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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IV.

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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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Dated: May 9, 2022
FERNANDO L. AENLLE-ROCHA
United States District Judge

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