Securities and Exchange Commission v. Anthony Todd Johnson et al

Filing 37

FINAL JUDGMENT PURSUANT TO CONSENT 35 by Judge Mark C. Scarsi: Defendant C-Quadrant LLC and its agents etc are permanently restrained and enjoined from violating, directly or indirectly re the Securities Exchange Act (see document for specified section cites therein). (lc)

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1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 SECURITIES AND EXCHANGE COMMISSION, 12 Case No. 5:20-cv-01493-MCS (SHKx) FINAL JUDGMENT AS TO DEFENDANT C-QUADRANT LLC Plaintiff, 13 14 15 16 vs. ANTHONY TODD JOHNSON (aka TODD JOHNSON), et al, Defendants. 17 18 19 The Securities and Exchange Commission having filed a Complaint and 20 defendant C-Quadrant LLC (“Defendant”) having entered a general appearance; 21 consented to the Court’s jurisdiction over Defendant and the subject matter of this 22 action; consented to entry of this Final Judgment without admitting or denying the 23 allegations of the Complaint (except as to jurisdiction); waived findings of fact and 24 conclusions of law; and waived any right to appeal from this Final Judgment: 25 26 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 27 permanently restrained and enjoined from violating, directly or indirectly, Section 28 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 1 1 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using 2 any means or instrumentality of interstate commerce, or of the mails, or of any 3 facility of any national securities exchange, in connection with the purchase or sale of 4 any security: 5 (a) to employ any device, scheme, or artifice to defraud; 6 (b) to make any untrue statement of a material fact or to omit to state a 7 material fact necessary in order to make the statements made, in the light 8 of the circumstances under which they were made, not misleading; or (c) 9 to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 10 11 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 12 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 13 binds the following who receive actual notice of this Final Judgment by personal 14 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 15 attorneys; and (b) other persons in active concert or participation with Defendant or 16 with anyone described in (a). II. 17 18 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 19 Defendant is permanently restrained and enjoined from violating Section 17(a) of the 20 Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale 21 of any security by the use of any means or instruments of transportation or 22 communication in interstate commerce or by use of the mails, directly or indirectly: 23 (a) to employ any device, scheme, or artifice to defraud; 24 (b) to obtain money or property by means of any untrue statement of a 25 material fact or any omission of a material fact necessary in order to 26 make the statements made, in light of the circumstances under which 27 they were made, not misleading; or 28 /// 2 1 (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 2 3 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 4 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 5 binds the following who receive actual notice of this Final Judgment by personal 6 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 7 attorneys; and (b) other persons in active concert or participation with Defendant or 8 with anyone described in (a). III. 9 10 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 11 Defendant is permanently restrained and enjoined from violating Section 5 of the 12 Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any 13 applicable exemption: 14 (a) Unless a registration statement is in effect as to a security, making use of 15 any means or instruments of transportation or communication in 16 interstate commerce or of the mails to sell such security through the use 17 or medium of any prospectus or otherwise; 18 (b) Unless a registration statement is in effect as to a security, carrying or 19 causing to be carried through the mails or in interstate commerce, by any 20 means or instruments of transportation, any such security for the purpose 21 of sale or for delivery after sale; or 22 (c) Making use of any means or instruments of transportation or 23 communication in interstate commerce or of the mails to offer to sell or 24 offer to buy through the use or medium of any prospectus or otherwise 25 any security, unless a registration statement has been filed with the 26 Commission as to such security, or while the registration statement is the 27 subject of a refusal order or stop order or (prior to the effective date of 28 the registration statement) any public proceeding or examination under 3 1 Section 8 of the Securities Act [15 U.S.C. § 77h]. 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 3 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 4 binds the following who receive actual notice of this Final Judgment by personal 5 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 6 attorneys; and (b) other persons in active concert or participation with Defendant or 7 with anyone described in (a). 8 IV. 9 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 10 Consent is incorporated herein with the same force and effect as if fully set forth 11 herein, and that Defendant shall comply with all of the undertakings and agreements 12 set forth therein. V. 13 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 15 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 16 Final Judgment. VI. 17 18 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 19 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 20 and without further notice. 21 22 23 24 Dated: November 20, 2020 ________________________________ MARK C. SCARSI UNITED STATES DISTRICT JUDGE 25 26 27 28 4

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