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

Filing 11

FINAL JUDGMENT AS TO DEFENDANT CALIBER PARTNERSHIP I, LLC by Judge Cormac J. Carney, re consent 5 .(see document for details). (MD JS-6, Case Terminated). (dro)

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JS-6

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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.

Case No. 8:17-cv-00174
FINAL JUDGMENT AS TO
DEFENDANT CALIBER
PARTNERSHIP I, LLC

PAUL A. GARCIA, CALIBER
CAPITAL MANAGEMENT, LLC,
PARTNER MEDICAL SOLUTIONS,
LLC, RICHARD T. WOODS, and
CALIBER PARTNERSHIP I, LLC,
Defendants, and

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ACER CAPITAL GROUP, INC. and
GREENEONE.COM, INC.,
Relief Defendants.

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FINAL JUDGMENT AS TO CALIBER
PARTNERSHIP I, LLC

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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 Caliber Partnership I, LLC (“Caliber” or “Defendant”) having entered a

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

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subject matter of this action; consented to entry of this Final Judgment without

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admitting or denying the allegations of the Complaint (except as to jurisdiction);

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waived findings of fact and conclusions of law; and waived any right to appeal from

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this Final Judgment:

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I.

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

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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], by using

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

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

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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 to omit to state a

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

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circumstances under which they were made, not misleading; or

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(c)

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would operate as a fraud or deceit upon any person.

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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) Caliber’s officers, agents, servants, employees, and

to engage in any act, practice, or course of business which operates or

FINAL JUDGMENT AS TO CALIBER
PARTNERSHIP I, LLC

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CASE NO. 8:17-cv-00174

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attorneys; and (b) other persons in active concert or participation with Caliber or

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anyone described in (a).
II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Caliber is permanently restrained and enjoined from violating Section 17(a) of the

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

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

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communication 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) Caliber’s officers, agents, servants, employees, and

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attorneys; and (b) other persons in active concert or participation with Caliber or with

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anyone described in (a).

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

III.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Caliber is permanently restrained and enjoined from violating Section 5 of the

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Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any

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applicable exemption:

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(a)

Unless a registration statement is in effect as to a security, making use of
any means or instruments of transportation or communication in

FINAL JUDGMENT AS TO CALIBER
PARTNERSHIP I, LLC

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CASE NO. 8:17-cv-00174

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

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or medium of any prospectus or otherwise;

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(b)

Unless a registration statement is in effect as to a security, carrying or

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causing to be carried through the mails or in interstate commerce, by any

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means or instruments of transportation, any such security for the purpose

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of sale or for delivery after sale; 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 or

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

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any security, unless a registration statement has been filed with the

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Commission as to such security, or while the registration statement is the

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subject of a refusal order or stop order or (prior to the effective date of

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the registration statement) any public proceeding or examination under

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

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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) Caliber’s officers, agents, servants, employees, and

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attorneys; and (b) other persons in active concert or participation with Caliber or with

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anyone described in (a).
IV.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant is liable for disgorgement of $545,000, representing ill-gotten gains from

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

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the amount of $25,298, for a total of $570,298. Defendant shall satisfy this obligation

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by paying $570,298 to the Securities and Exchange Commission within 14 days after

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entry of this Final Judgment.

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Defendant may transmit payment electronically to the Commission, which will
FINAL JUDGMENT AS TO CALIBER
PARTNERSHIP I, LLC

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CASE NO. 8:17-cv-00174

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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; Caliber 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 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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The Commission may enforce the Court’s judgment for disgorgement and

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

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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
FINAL JUDGMENT AS TO CALIBER
PARTNERSHIP I, LLC

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CASE NO. 8:17-cv-00174

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pursuant to 28 U.S.C. § 1961.

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V.

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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.

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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 CALIBER
PARTNERSHIP I, LLC

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CASE NO. 8:17-cv-00174

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FINAL JUDGMENT AS TO CALIBER
PARTNERSHIP I, LLC

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CASE NO. 8:17-cv-00174