Securities and Exchange Commission v. Paul A. Garcia et al

Filing 10

FINAL JUDGMENT AS TO DEFENDANT RICHARD T. WOODS by Judge Cormac J. Carney, re consent 4 . (see document for details). (dro)

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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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Case No. 8:17-cv-00174
FINAL JUDGMENT AS TO
DEFENDANT RICHARD T. WOODS

vs.
PAUL A. GARCIA, CALIBER
CAPITAL MANAGEMENT, LLC,
PARTNER MEDICAL SOLUTIONS,
LLC, RICHARD T. WOODS, and
CALIBER PARTNERSHIP I, LLC,
Defendants, and
ACER CAPITAL GROUP, INC. and
GREENEONE.COM, INC.,
Relief Defendants.

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FINAL JUDGMENT AS TO WOODS

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CASE NO. 8:17-cv-00174

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FINAL JUDGMENT

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The Securities and Exchange Commission having filed a Complaint and

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Defendant Richard T. Woods (“Woods” or “Defendant”) having entered a general

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appearance; consented to the Court’s jurisdiction over Defendant and the subject

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matter of this action; consented to entry of this Final Judgment without admitting or

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denying the allegations of the Complaint (except as to jurisdiction and except as

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otherwise provided herein in paragraph V); waived findings of fact and conclusions

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

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I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Woods is

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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 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 make the

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statements made, in light of the circumstances under which they were made,

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not misleading; or

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(c)

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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 Final Judgment by personal

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service or otherwise: (a) Woods’ officers, agents, servants, employees, and attorneys;

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

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described in (a).

to engage in any transaction, practice, or course of business which

FINAL JUDGMENT AS TO WOODS

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CASE NO. 8:17-cv-00174

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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant is liable for disgorgement of $5,000, representing ill-gotten gains from the

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conduct alleged in the Complaint, together with prejudgment interest thereon in the

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amount of $143, and a civil penalty in the amount of $25,000 pursuant to Section

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20(d) of the Securities Act. Defendant shall satisfy this obligation by paying $30,143

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to the Securities and Exchange Commission pursuant to the terms of the payment

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schedule set forth in paragraph III below.

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Defendant may transmit payment electronically to the Commission, 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. Defendant 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; Woods as a defendant in this action; and specifying that

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payment is made pursuant to this Final Judgment.

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Defendant shall simultaneously transmit photocopies of evidence of payment

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

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making this payment, Defendant relinquishes all legal and equitable right, title, and

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

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The Commission may enforce the Court’s judgment for disgorgement and
prejudgment interest by moving for civil contempt (and/or through other collection
FINAL JUDGMENT AS TO WOODS

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CASE NO. 8:17-cv-00174

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

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Judgment. Defendant shall pay post judgment interest on any delinquent amounts

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pursuant to 28 U.S.C. § 1961.

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The Commission may propose a plan to distribute the funds paid pursuant to

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this Final Judgment, together with any interest and income earned thereon

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(collectively, the “Fund”) subject to the Court’s approval. Such a plan may provide

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that the Fund shall be distributed pursuant to the Fair Fund provisions of Section

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308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain jurisdiction over

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the administration of any distribution of the Fund. If the Commission staff

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determines that the Fund will not be distributed, the Commission shall send the funds

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paid pursuant to this Final Judgment to the United States Treasury.

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Regardless of whether any such Fair Fund distribution is made, amounts

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ordered to be paid as civil penalties pursuant to this Judgment shall be treated as

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penalties paid to the government for all purposes, including all tax purposes. To

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preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or

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reduction of any award of compensatory damages in any Related Investor Action

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based on Defendant’s payment of disgorgement in this action, argue that he is entitled

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to, nor shall he further benefit by, offset or reduction of such compensatory damages

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award by the amount of any part of Defendant’s payment of a civil penalty in this

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action (“Penalty Offset”). If the court in any Related Investor Action grants such a

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Penalty Offset, Defendant shall, within 30 days after entry of a final order granting

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the Penalty Offset, notify the Commission’s counsel in this action and pay the amount

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of the Penalty Offset to the United States Treasury or to a Fair Fund, as the

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Commission directs. Such a payment shall not be deemed an additional civil penalty

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and shall not be deemed to change the amount of the civil penalty imposed in this

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Judgment. For purposes of this paragraph, a “Related Investor Action” means a

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private damages action brought against Defendant by or on behalf of one or more

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investors based on substantially the same facts as alleged in the Complaint in this
FINAL JUDGMENT AS TO WOODS

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CASE NO. 8:17-cv-00174

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action.
III.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Woods shall pay the total of disgorgement, prejudgment interest, and penalty due of

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$30,143 in three installments to the Commission according to the following

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schedule: (1) $10,143 within 14 days of entry of this Final Judgment; (2) $10,000

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within 180 days of entry of this Final Judgment; and (3) $10,000 within 365 days of

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entry of this Final Judgment. Payments shall be deemed made on the date they are

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received by the Commission and shall be applied first to post judgment interest,

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which accrues pursuant to 28 U.S.C. § 1961 on any unpaid amounts due after 14 days

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of the entry of Final Judgment. Prior to making the final payment set forth herein,

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Woods shall contact the staff of the Commission for the amount due for the final

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payment.

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If Woods fails to make any payment by the date agreed and/or in the

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amount agreed according to the schedule set forth above, all outstanding payments

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under this Final Judgment, including post-judgment interest, minus any payments

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made, shall become due and payable immediately at the discretion of the staff of the

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Commission without further application to the Court.
IV.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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the Consent of Defendant is incorporated herein with the same force and effect as if

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fully set forth herein, and that Defendant shall comply with all of the undertakings

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and agreements set forth therein.
V.

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

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solely for purposes of exceptions to discharge set forth in Section 523 of the

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Bankruptcy Code, 11 U.S.C. §523, the allegations in the Complaint are true and

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admitted by Woods, and further, any debt for disgorgement, prejudgment interest,
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civil penalty, or other amounts due by Woods under this Final Judgment or any other

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judgment, order, consent order, decree, or settlement agreement entered in connection

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with this proceeding, is a debt for the violation by Woods of the federal securities

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laws or any regulation or order issued under such laws, as set forth in Section

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523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19).

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VI.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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

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terms of this Final Judgment.

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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 forthwith

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and without further notice.

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Dated: February 7, 2017

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____________________________________

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UNITED STATES DISTRICT JUDGE

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FINAL JUDGMENT AS TO WOODS

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CASE NO. 8:17-cv-00174