Securities and Exchange Commission v. Thomas Rubin et al

Filing 33

JUDGMENT by Judge James V. Selna, AS TO DEFENDANT BGLR ENTERPRISES, LLC: 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 Judgment by personal service or otherwise are permanently restrained and enjoined from violating Section 5(a) and 5(c) of the Securities Act [15 U.S.C. 77e] by, directly or indirectly, in the absence of any applicable exemption: (See document for further details.) 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 Judgment. (rla)

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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
SOUTHERN DIVISION

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SECURITIES AND EXCHANGE
COMMISSION,

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Plaintiff,

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Case No. SACV11-01466
JVS MLGx

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Hon. James V. Selna

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v.

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THOMAS RUBIN, CHRISTOPHER
SCOTT, BGLR ENTERPRISES, LLC, and
E-INFO SOLUTIONS LLC,

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Defendants.

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JUDGMENT AS TO DEFENDANT BGLR ENTERPRISES, LLC

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The Securities and Exchange Commission having filed a Complaint and

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Defendant BGLR Enterprises, LLC having entered a general appearance; consented

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to the Court’s jurisdiction over Defendant and the subject matter of this action;

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consented to entry of this Judgment without admitting or denying the allegations of

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the Complaint (except as to jurisdiction); waived findings of fact and conclusions of

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law; and waived any right to appeal from this Judgment:

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I.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that Defendant and Defendant's 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 Judgment by personal service or otherwise are permanently restrained and

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enjoined from violating Section 5(a) and 5(c) of the Securities Act [15 U.S.C. §

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77e] by, directly or indirectly, in the absence of any applicable exemption:

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(a)

Unless a registration statement is in effect as to a security, making use

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of any means or instruments of transportation or communication in

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interstate commerce or of the mails to sell such security through the

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use or medium of any prospectus or otherwise; or

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(c)

Making use of any means or instruments of transportation or

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communication in interstate commerce or of the mails to offer to sell

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or offer to buy through the use or medium of any prospectus or

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otherwise any security, unless a registration statement has been filed

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with the Commission as to such security, or while the registration

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statement is the subject of a refusal order or stop order or (prior to the

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effective date of the registration statement) any public proceeding or

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examination under Section 8 of the Securities Act [15 U.S.C. § 77h].

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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that pursuant to Section 20(g) of the Securities Act [15 U.S.C. § 77t(g)], Defendant

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is prohibited for ten years following the date of entry of this Judgment, from

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participating in an offering of penny stock, including engaging in activities with a

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broker, dealer, or issuer for purposes of issuing, trading, or inducing or attempting

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to induce the purchase or sale of any penny stock. A penny stock is any equity

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security that has a price of less than five dollars, except as provided in Rule 3a51-1

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under the Exchange Act [17 C.F.R. 240.3a51-1].

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III.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that Defendant shall pay disgorgement of ill-gotten gains, prejudgment interest

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thereon, and a civil penalty pursuant to Section 20(d) of the Securities Act [15

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U.S.C. § 77t(d)], all of which the Defendant is jointly and severally liable with the

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individual Thomas Rubin. The Court shall determine the amounts of the

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disgorgement and civil penalty upon motion of the Commission. Prejudgment

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interest shall be calculated from the dates of the various violations, based on the

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rate of interest used by the Internal Revenue Service for the underpayment of

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federal income tax as set forth in 26 U.S.C. § 6621(a)(2). In connection with the

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Commission’s motion for disgorgement and/or civil penalties, and at any hearing

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held on such a motion: (a) Defendant will be precluded from arguing that he did not

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violate the federal securities laws as alleged in the Complaint; (b) Defendant may

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not challenge the validity of the Consent or this Judgment; (c) solely for the

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purposes of such motion, the allegations of the Complaint shall be accepted as and

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deemed true by the Court; and (d) the Court may determine the issues raised in the

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motion on the basis of affidavits, declarations, excerpts of sworn deposition or

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investigative testimony, and documentary evidence, without regard to the standards

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for summary judgment contained in Rule 56(c) of the Federal Rules of Civil

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Procedure. In connection with the Commission’s motion for disgorgement and/or

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civil penalties, the parties may take discovery, including discovery from appropriate

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non-parties.

IV.

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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 Judgment.

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Dated: May 21, 2013

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JAMES V. SELNA
UNITED STATES DISTRICT JUDGE

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