Securities and Exchange Commission v. Safevest LLC et al

Filing 108

FINAL JUDGMENT by Judge James V. Selna against Safevest LLC. Related to: Stipulation for Order 106 . (twdb)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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SOUTHERN DIVISION

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SECURITIES AND EXCHANGE
COMMISSION,

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Plaintiff,

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vs.
SAFEVEST, LLC; JON G. ERVIN; and
JOHN V. SLYE;
Defendants.

Case No. SACV08-00473 JVS (MLGx)
FINAL JUDGMENT AGAINST
DEFENDANT SAFEVEST, LLC

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The Securities and Exchange Commission having filed a Complaint and

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Defendant Safevest, LLC (“Safevest”) 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); waived findings of fact and

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conclusions of law; 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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and Defendant’s officers, agents, servants, employees, attorneys, and all persons in

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active concert or participation with them who receive actual notice of this Final

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Judgment by personal service or otherwise are permanently restrained and enjoined

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from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act

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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

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interstate commerce, or of the mails, or of any facility of any national securities

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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

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material fact necessary in order to make the statements made, in the

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light of the circumstances under which they were made, not

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misleading; or

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(c)

to engage in any act, practice, or course of business which operates or
would operate as a fraud or deceit upon any person.
II.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant and Defendant’s officers, agents, servants, employees, attorneys, and all

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persons in active concert or participation with them who receive actual notice of

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this Final Judgment by personal service or otherwise are permanently restrained
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and enjoined from violating Section 17(a) of the Securities Act of 1933 (the

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“Securities Act”), 15 U.S.C. § 77q(a), in the offer or sale of any security by the use

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of any means or instruments of transportation or communication in interstate

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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)

to engage in any transaction, practice, or course of business which
operates or would operate as a fraud or deceit upon the purchaser.
III.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that in light

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of the Commission’s determination not to seek disgorgement and civil penalties

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based on the Declaration Of Thomas A. Seaman In Support Of Motion For Order

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Closing Case And Discharging The Receiver Effective Upon Completion Of The

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Final Closing Tasks And for Other Related Relief (Dkt. No. 98), evidencing that

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there are insufficient funds in the receivership estate to pay the Receiver and his

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professionals more than a small percentage of the fees and expenses they incurred

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or to make a distribution to investors, the Court is not ordering the Defendant to

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pay disgorgement or a civil penalty in this action.

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IV.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the

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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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V.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that
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paragraphs IV. through XIV. of the Preliminary Injunction entered May 12, 2008

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(Dkt. No. 16), which govern the conduct of the receivership in this action, shall

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remain in full force and effect until further order of this Court.

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VI.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this

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Court shall retain jurisdiction of this matter for the purposes of enforcing the terms

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of this Final Judgment.
VII.

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

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Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment

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forthwith and without further notice.

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DATED: February 27, 2014

_________________________________
HONORABLE JAMES V. SELNA
UNITED STATES DISTRICT JUDGE

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