Securities and Exchange Commission v. Charles C. Liu et al

Filing 277

FINAL JUDGMENT AS TO DEFENDANTS PACIFIC PROTON THERAPY REGIONAL CENTER, LLC; PACIFIC PROTON EB-5 FUND, LLC; and BEVERLY PROTON CENTER, LLC f/k/a LOS ANGELES COUNTY PROTON THERAPY, LLC by Judge Cormac J. Carney. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that: defendant Pacific Proton Therapy Regional Center, LLC is liable for disgorgement of $2,255,701.00; together with prejudgment interest thereon in the amount of $7,519.00; defendant Pacific Proton EB-5 Fund, LLC is liable for disgorgement of $24,712,217.00; together with prejudgment interest thereon in the amount of $82,374.06. See document for further information. (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.

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CHARLES C. LIU;
XIN WANG a/k/a LISA WANG;
PACIFIC PROTON THERAPY
REGIONAL CENTER, LLC;
PACIFIC PROTON EB-5 FUND,
LLC; and BEVERLY PROTON
CENTER, LLC f/k/a LOS ANGELES
COUNTY PROTON THERAPY,
LLC,

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Defendants.

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Case No. SACV16-00974-CJC (AGRx)
FINAL JUDGMENT AS TO
DEFENDANTS PACIFIC PROTON
THERAPY REGIONAL CENTER,
LLC; PACIFIC PROTON EB-5 FUND,
LLC; and BEVERLY PROTON
CENTER, LLC f/k/a LOS ANGELES
COUNTY PROTON THERAPY, LLC

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The Securities and Exchange Commission (“SEC” or the “Commission”)

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having filed a Complaint and Defendants Pacific Proton Therapy Regional Center,

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LLC, Pacific Proton EB-5 Fund, LLC, and Beverly Proton Center, LLC f/k/a Los

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Angeles County Proton Therapy, LLC, having entered a general appearance;

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consented to the Court’s jurisdiction over Defendants 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:

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I.
IT IS HEREBY ORDERED, ADJUDGED AND DECREED that Defendants

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are permanently restrained and enjoined from violating Section 17(a) of the Securities

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Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any

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security, by the use of any means or instruments of transportation or communication

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in interstate commerce or by the 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 to state 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.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Order by personal service or

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otherwise: (a) Defendants’ officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendants or with anyone

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described in (a).

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II.

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IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Defendants

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are permanently restrained and enjoined from violating, directly or indirectly, Section

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10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C.

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§78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5(a) and (c)],

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by using any means or instrumentality of interstate commerce, or of the mails, or of

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any facility of any national securities exchange, in connection with the purchase or

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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 omit to state a

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

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of the circumstances under which they were made, not 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; or

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Order by personal service or

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otherwise: (a) Defendants’ officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendants or with anyone

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described in (a).

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III.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Defendants,

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and their officers, agents, servants, employees, attorneys, subsidiaries and affiliates,

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and those persons in active concert or participation with any of them, who receive

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actual notice of this Order, by personal service or otherwise, and each of them, be and

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hereby are permanently restrained and enjoined from, directly or indirectly,

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participating in the offer or sale of any security which constitutes an investment in a

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“commercial enterprise” under the United States Government EB-5 visa program
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administered by the United States Citizenship and Immigration Service (“USCIS”),

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including engaging in activities with a broker, dealer, or issuer, or a Regional Center

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designated by the USCIS, for purposes of issuing, offering, trading, or inducing or

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attempting to induce the purchase or sale of any such EB-5 investment.

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IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that: defendant

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Pacific Proton Therapy Regional Center, LLC is liable for disgorgement of

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$2,255,701.00, representing profits gained as a result of the conduct alleged in the

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Complaint, together with prejudgment interest thereon in the amount of $7,519.00;

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and defendant Pacific Proton EB-5 Fund, LLC is liable for disgorgement of

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$24,712,217.00, representing profits gained as a result of the conduct alleged in the

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Complaint, together with prejudgment interest thereon in the amount of $82,374.06.

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Defendants Pacific Proton Therapy Regional Center, LLC and Pacific Proton EB-5

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Fund, LLC shall satisfy this obligation by paying the above-referenced amounts to

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the Securities and Exchange Commission within 14 days after entry of this Final

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Judgment. Defendants’ disgorgement and prejudgment interest obligation shall be

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credited by any amounts paid by the court-appointed receiver, Michael A.

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Grassmueck (“Receiver”), to the Securities and Exchange Commission upon the

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Receiver’s discharge by the Court.

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Defendants may transmit payment electronically to the SEC, which will

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provide detailed ACH transfer/Fedwire instructions upon request. Payment may also

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be made directly from a bank account via Pay.gov through the SEC website at

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http://www.sec.gov/about/offices/ofm.htm. Defendants may also pay by certified

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check, bank cashier’s check, or United States postal money order payable to the

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Securities and Exchange Commission, which shall be delivered or mailed to

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Enterprise Services Center

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Accounts Receivable Branch

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6500 South MacArthur Boulevard
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Oklahoma City, OK 73169

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and shall be accompanied by a letter identifying the case title, civil action number,

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and name of this Court; Pacific Proton Therapy Regional Center, LLC, Pacific Proton

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EB-5 Fund, LLC, and Beverly Proton Center, LLC f/k/a Los Angeles County Proton

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Therapy, LLC as defendants in this action; and specifying that payment is made

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pursuant to this Final Judgment.

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Defendants shall simultaneously transmit photocopies of evidence of payment

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and case identifying information to the SEC’s counsel in this action. By making this

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payment, Defendants relinquish all legal and equitable right, title, and interest in such

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funds and no part of the funds shall be returned to Defendants. The Commission

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shall send the funds paid pursuant to this Final Judgment to the United States

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Treasury.
The SEC may enforce the Court’s judgment for disgorgement and prejudgment

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interest by moving for civil contempt (and/or through other collection procedures

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authorized by law) at any time after 14 days following entry of this Final Judgment.

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Defendants shall pay post judgment interest on any delinquent amounts pursuant to

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28 U.S.C. § 1961.

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V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the SEC

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has determined to forego seeking a civil penalty against Defendants, and the claim for

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a civil penalty against Defendants is hereby withdrawn.

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VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court

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

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Final Judgment.

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IT IS SO ORDERED.

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Dated: February 5, 2018

________________________________
CORMAC J. CARNEY
UNITED STATES DISTRICT JUDGE

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