Securities and Exchange Commission v. Global Materials & Services Inc et al

Filing 68

FINAL JUDGMENT as to DEFENDANT EDIFY CAPITAL GROUP, INC. by Judge David O. Carter. (See Order for details) (db)

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JOHN E. BIRKENHEIER Email: [e-mail] ANDREA R. WOOD Email: [e-mail] MARGARET GEMBALA NELSON Email: [e-mail] U.S. Securities and Exchange Commission 175 W. Jackson Blvd., Suite 900 Chicago, Illinois 60604 Telephone: [phone] Facsimile: [phone] LOCAL COUNSEL DAVID J. VAN HAVERMAAT, Cal. Bar No. 175761 Email: [e-mail] U.S. Securities and Exchange Commission 5670 Wilshire Blvd., 11th Floor Los Angeles, California 90036 Telephone: [phone] Facsimile: [phone] Attorneys for Plaintiff U.S. Securities and Exchange Commission UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA SECURITIES AND EXCHANGE COMMISSION, Plaintiff, vs. GLOBAL MATERIALS & SERVICES, FINAL JUDGMENT AS TO INC. et al., DEFENDANT EDIFY CAPITAL GROUP, INC. Defendants, and FLINN SPRINGS INN, INC., Relief Defendant. Case No. SACV 08-881 DOC (RNBx)

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The Securities and Exchange Commission having filed a Complaint and Defendant Edify Capital Group, Inc. having entered a general appearance; consented to the Court's jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment: I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating Section 5 of the Securities Act ("Securities Act") [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption: (a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in the interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise; (b) Unless a registration statement is in effect as to a security, carrying or causing to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale; or (c) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed with the Commission as to such security, or while the registration statement is the subject of a refusal order or stop order or (prior to the effective date of the registration

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statement) any public proceeding or examination under Section 8 of the Securities Act [15 U.S.C. § 77h]. II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are 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 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: (a) (b) to employ any device, scheme, or artifice to defraud; to make any untrue statement of a material fact or to omit to state a

material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) to engage in any act, practice, or course of business which operates or III. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein. IV. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.
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would operate as a fraud or deceit upon any person.

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V. 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 Final Judgment forthwith and without further notice.

____________________________________ UNITED STATES DISTRICT JUDGE

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