Securities and Exchange Commission v. Thomas Rubin et al

Filing 44

FINAL JUDGMENT by Judge James V. Selna as to Defendants Thomas Rubin and BGLR Enterprises. (twdb)

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DAVID WILLIAMS (Cal. Bar No. 183854)
ANTONIA CHION
RICKY SACHAR
MICHAEL L. RIEDLINGER
Attorneys for Plaintiff
SECURITIES AND EXCHANGE
COMMISSION
100 F Street, N.E.
Washington, DC 20549-4010
Telephone: [phone] (Williams)
Facsimile: [phone] (Williams)
e-mail: [e-mail]

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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
Plaintiff,

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vs.
THOMAS RUBIN AND BGLR
ENTERPRISES, LLC

Case No. SACV-11-01466 (JVS)
Hon. James V. Selna
FINAL JUDGMENT AS TO
DEFENDANTS THOMAS RUBIN
AND BGLR ENTERPRISES

Defendants.
Plaintiff Securities and Exchange Commission commenced this action by
filing its Complaint against Defendants Thomas Rubin and BGLR Enterprises LLC
(“Defendants”). Defendants previously entered general appearances and consented

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to the Court’s jurisdiction over them and the subject matter of this action. See
Docket No.’s 29, 32. Defendant Thomas Rubin also previously consented to: a
permanent injunction prohibiting violations of Sections 10(b) of the Exchange Act

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of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)]; Section 17(a) of the Securities Act

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of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)]; Sections 5(a) and (c) of the

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SEC v. RUBIN, et al., FINAL JUDGMENT AS TO
DEFENDANT THOMAS RUBIN AND DEFENDANT
BGLR, LLC

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Securities Act [15 U.S.C. §§ 77e]; a ten-year penny stock bar; the Commission’s
entitlement to disgorgement and prejudgment interest, and to a civil money penalty

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pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)]. Docket No.

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32. Defendant BGLR Enterprises LLC previously consented to a permanent

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injunction prohibiting violations of Sections 5(a) and (c) of the Securities Act [15
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U.S.C. §§ 77e]; a ten-year penny stock bar; the Commission’s entitlement to

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disgorgement and prejudgment interest, and to a civil money penalty pursuant to

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Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)].
The Court previously entered Judgments as to Defendants providing, among
other things, that the amounts of disgorgement, prejudgment interest, and civil

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money penalties against each Defendant be determined upon the Commission’s

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motion. Id. On October 11, 2013, the Plaintiff filed its motion, along with a

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declaration in support and memorandum of law to set disgorgement, prejudgment

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interest, and civil penalty amounts. The Court having reviewed the Plaintiff’s

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motion and supporting materials, having heard from the parties, and being fully

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advised of the premises, orders as follows:
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I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that

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Defendants are liable, jointly and severally, for disgorgement of $1,323,838,

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representing profits gained as a result of the conduct alleged in the Complaint,

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SEC v. RUBIN, et al., FINAL JUDGMENT AS TO
DEFENDANT THOMAS RUBIN AND DEFENDANT
BGLR, LLC

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together with prejudgment interest thereon in the amount of $461, 023, covering the
period beginning on December 7, 2006 for trading in Bluefire, for which the

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proceeds prior to PJI were $893,237; beginning on September 30, 2006 for

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Mattman, for which the proceeds prior to PJI were $165,952; and beginning on

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October 23, 2006 for Straight Up, for which the proceeds prior to PJI were
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$264,649. Defendant Thomas Rubin is further liable for a civil penalty in the

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amount of $130,000 pursuant to Section 20(d) of the Securities Act [15 U.S.C. §

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77t(d)]. Defendants shall satisfy this obligation by paying the full combined

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amount within 14 days after entry of this Final Judgment by certified check, bank

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cashier's check, or United States postal money order payable to the Clerk of this

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Court, together with a cover letter identifying the particular Defendant as a

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defendant in this action; setting forth the title and civil action number of this action

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and the name of this Court; and specifying that payment is made pursuant to this

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Final Judgment. Defendants shall simultaneously transmit photocopies of such

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payment and letter to the Commission’s counsel in this action. By making this

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payment, each Defendant relinquishes all legal and equitable right, title, and interest

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in such funds, and no part of the funds shall be returned to Defendant. Defendants

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shall pay post-judgment interest on any delinquent amounts pursuant to 28 U.S.C.

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§ 1961.

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The Clerk shall deposit the funds into an interest bearing account with the
Court Registry Investment System (“CRIS”) or any other type of interest bearing
SEC v. RUBIN, et al., FINAL JUDGMENT AS TO
DEFENDANT THOMAS RUBIN AND DEFENDANT
BGLR, LLC

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account that is utilized by the Court. These funds, together with any interest and
income earned thereon (collectively, the “Fund”), shall be held in the interest

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bearing account until further order of the Court. In accordance with 28 U.S.C.

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§ 1914 and the guidelines set by the Director of the Administrative Office of the

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United States Courts, the Clerk is directed, without further order of this Court, to
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deduct from the income earned on the money in the Fund a fee equal to ten percent

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of the income earned on the Fund. Such fee shall not exceed that authorized by the

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Judicial Conference of the United States.
Amounts ordered to be paid as civil penalties pursuant to this Judgment shall
be treated as penalties paid to the government for all purposes, including all tax

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purposes. To preserve the deterrent effect of the civil penalty, Defendants shall not,

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after offset or reduction of any award of compensatory damages in any Related

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Investor Action based on Defendant’s payment of disgorgement in this action,

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argue that it is entitled to, nor shall it further benefit by, offset or reduction of such

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compensatory damages award by the amount of any part of Defendant’s payment of

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a civil penalty in this action (“Penalty Offset”). If the court in any Related Investor

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Action grants such a Penalty Offset, Defendant shall, within thirty (30) days after

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entry of a final order granting the Penalty Offset, notify the Commission's counsel

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in this action and pay the amount of the Penalty Offset to the United States

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Treasury or to a Fair Fund, as the Commission directs. Such a payment shall not be
deemed an additional civil penalty and shall not be deemed to change the amount of
SEC v. RUBIN, et al., FINAL JUDGMENT AS TO
DEFENDANT THOMAS RUBIN AND DEFENDANT
BGLR, LLC

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the civil penalty imposed in this Judgment. For purposes of this paragraph, a
"Related Investor Action" means a private damages action brought against

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Defendant by or on behalf of one or more investors based on substantially the same

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facts as alleged in the Complaint in this action.

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II.
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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this
Court shall retain jurisdiction of this matter for the purposes of enforcing the terms

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of this Final Judgment.
Dated: January 22, 2014

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____________________________________
Hon. James V. Selna
UNITED STATES DISTRICT JUDGE

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SEC v. RUBIN, et al., FINAL JUDGMENT AS TO
DEFENDANT THOMAS RUBIN AND DEFENDANT
BGLR, LLC

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PROOF OF SERVICE

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I am over the age of 18 years and not a party to this action. My business
address is:

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U.S. SECURITIES AND EXCHANGE COMMISSION, 100 F Street, N.E.,
Washington, D.C. 20549-5977

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Telephone No. [phone]; Facsimile No. [phone].

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[X]

On October 11, 2013, I caused to be served the document entitled NOTICE OF
LODGING PROPOSED JUDGMENT AS TO THOMAS RUBIN AND BGLR
ENTERPRISES AND PROPOSED FINAL JUDGMENT on all the parties to this
action addressed as stated on the attached service list:
[]

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OFFICE MAIL: By placing in sealed envelope(s), which I placed for
collection and mailing today following ordinary business practices. I am
readily familiar with this agency’s practice for collection and processing of
correspondence for mailing; such correspondence would be deposited with
the U.S. Postal Service on the same day in the ordinary course of business.
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PERSONAL DEPOSIT IN MAIL: By placing in sealed envelope(s),
which I personally deposited with the U.S. Postal Service. Each such
envelope was deposited with the U.S. Postal Service at Los Angeles,
California, with first class postage thereon fully prepaid.

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EXPRESS U.S. MAIL: Each such envelope was deposited in a
facility regularly maintained at the U.S. Postal Service for receipt of
Express Mail at Los Angeles, California, with Express Mail postage
paid.

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HAND DELIVERY: I caused to be hand delivered each such envelope to
the office of the addressee as stated on the attached service list.

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UNITED PARCEL SERVICE: By placing in sealed envelope(s)
designated by United Parcel Service (“UPS”) with delivery fees paid or
provided for, which I deposited in a facility regularly maintained by UPS or
delivered to a UPS courier, at Los Angeles, California.

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ELECTRONIC MAIL: By transmitting the document by electronic mail to
the electronic mail address as stated on the attached service list.

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E-FILING: By causing the document to be electronically filed via the
Court’s CM/ECF system, which effects electronic service on counsel who are
registered with the CM/ECF system.

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FAX: By transmitting the document by facsimile transmission. The
transmission was reported as complete and without error.

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I declare under penalty of perjury that the foregoing is true and correct.

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Date: October 11, 2013

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SEC v. RUBIN, et al., NOTICE OF LODGING
FINAL JUDGMENT MEDIA GROUP, LLC

/s/ David Williams
A. David Williams

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SEC v. RUBIN et al, LLC
United States District Court – Central District of California
SACV-11-01466 (JVS)

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SERVICE LIST

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Edward Gartenberg, counsel for Thomas Rubin
[e-mail]
Gartenberg Gelfand Hayton & Selden LLP
801 South Figueroa Street, Suite 2170
Los Angeles, California 90017

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SEC v. RUBIN, et al., FINAL JUDGMENT AS TO
DEFENDANT THOMAS RUBIN AND DEFENDANT
BGLR, LLC

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