U.S. Securities and Exchange Commission v. Renato Rodriguez et al

Filing 15

FINAL JUDGMENT AS TO DEFENDANT RENATO RODRIGUEZ by Judge Andrew J. Guilford. (see document for details). (MD JS-6, Case Terminated). (dro)

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1 2 3 4 5 6 7 LYNN M. DEAN (Cal. Bar No. 205562) Email: deanl@sec.gov PETER DEL GRECO (Cal. Bar No. 164925) Email: delgrecop@sec.gov JS-6 Attorneys for Plaintiff Securities and Exchange Commission Michele Wein Layne, Regional Director Alka N. Patel, Associate Regional Director 444 S. Flower Street, Suite 900 Los Angeles, California 90071 Telephone: (323) 965-3998 Facsimile: (213) 443-1904 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 12 13 SECURITIES AND EXCHANGE COMMISSION, 14 Plaintiff, 15 16 17 18 vs. Case No. SACV 17-0375-AG(JDEx) FINAL JUDGMENT AS TO DEFENDANT RENATO RODRIGUEZ RENATO RODRIGUEZ and GUTEMBERG DOS SANTOS, Defendants. 19 20 21 22 23 24 25 26 27 28 1 1 FINAL JUDGMENT AS TO DEFENDANT RENATO RODRIGUEZ 2 The Securities and Exchange Commission having filed a Complaint and 3 Defendant Renato Rodriguez having entered a general appearance; consented to the 4 Court’s jurisdiction over Defendant and the subject matter of this action; consented to 5 entry of this Final Judgment without admitting or denying the allegations of the 6 Complaint (except as to jurisdiction and except as otherwise provided herein in 7 paragraph VI); waived findings of fact and conclusions of law; and waived any right 8 to appeal from this Final Judgment: 9 10 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 11 permanently restrained and enjoined from violating, directly or indirectly, Section 12 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 13 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using 14 any means or instrumentality of interstate commerce, or of the mails, or of any 15 facility of any national securities exchange, in connection with the purchase or sale of 16 any security: 17 (a) to employ any device, scheme, or artifice to defraud; 18 (b) to make any untrue statement of a material fact or to omit to state a 19 material fact necessary in order to make the statements made, in the light of the 20 circumstances under which they were made, not misleading; or 21 (c) 22 would operate as a fraud or deceit upon any person. 23 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 24 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 25 binds the following who receive actual notice of this Final Judgment by personal 26 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 27 attorneys; and (b) other persons in active concert or participation with Defendant or 28 with anyone described in (a). to engage in any act, practice, or course of business which operates or 2 1 II. 2 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 3 Defendant is permanently restrained and enjoined from violating Section 17(a) of the 4 Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale 5 of any security by the use of any means or instruments of transportation or 6 communication in interstate commerce or by use of the mails, directly or indirectly: 7 (a) to employ any device, scheme, or artifice to defraud; 8 (b) to obtain money or property by means of any untrue statement of a 9 material fact or any omission of a material fact necessary in order to make the 10 statements made, in light of the circumstances under which they were made, 11 not misleading; or 12 (c) 13 operates or would operate as a fraud or deceit upon the purchaser. 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 15 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 16 binds the following who receive actual notice of this Final Judgment by personal 17 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 18 attorneys; and (b) other persons in active concert or participation with Defendant or 19 with anyone described in (a). to engage in any transaction, practice, or course of business which 20 21 III. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 22 Defendant is permanently restrained and enjoined from violating Section 5 of the 23 Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any 24 applicable exemption: 25 (a) Unless a registration statement is in effect as to a security, making use of 26 any means or instruments of transportation or communication in 27 interstate commerce or of the mails to sell such security through the use 28 or medium of any prospectus or otherwise; 3 1 (b) Unless a registration statement is in effect as to a security, carrying or 2 causing to be carried through the mails or in interstate commerce, by any 3 means or instruments of transportation, any such security for the purpose 4 of sale or for delivery after sale; or 5 (c) Making use of any means or instruments of transportation or 6 communication in interstate commerce or of the mails to offer to sell or 7 offer to buy through the use or medium of any prospectus or otherwise 8 any security, unless a registration statement has been filed with the 9 Commission as to such security, or while the registration statement is the 10 subject of a refusal order or stop order or (prior to the effective date of 11 the registration statement) any public proceeding or examination under 12 Section 8 of the Securities Act [15 U.S.C. § 77h]. 13 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 14 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 15 binds the following who receive actual notice of this Final Judgment by personal 16 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 17 attorneys; and (b) other persons in active concert or participation with Defendant or 18 with anyone described in (a). 19 20 IV. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 21 Defendant is liable, jointly and severally with Gutemberg Dos Santos, for 22 disgorgement of $1,400,000, representing profits gained as a result of the conduct 23 alleged in the Complaint, and a civil penalty in the amount of $160,000 pursuant to 24 Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the 25 Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall satisfy this obligation by 26 paying $1,560,000 to the Securities and Exchange Commission within 14 days after 27 entry of this Final Judgment. 28 Defendant may transmit payment electronically to the Commission, which will 4 1 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 2 be made directly from a bank account via Pay.gov through the SEC website at 3 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 4 check, bank cashier’s check, or United States postal money order payable to the 5 Securities and Exchange Commission, which shall be delivered or mailed to 6 Enterprise Services Center 7 Accounts Receivable Branch 8 6500 South MacArthur Boulevard 9 Oklahoma City, OK 73169 10 and shall be accompanied by a letter identifying the case title, civil action number, 11 and name of this Court; Renato Rodriguez as a defendant in this action; and 12 specifying that payment is made pursuant to this Final Judgment. 13 Defendant shall simultaneously transmit photocopies of evidence of payment 14 and case identifying information to the Commission’s counsel in this action. By 15 making this payment, Defendant relinquishes all legal and equitable right, title, and 16 interest in such funds and no part of the funds shall be returned to Defendant. The 17 Commission shall send the funds paid pursuant to this Final Judgment to the United 18 States Treasury. 19 The Commission may enforce the Court’s judgment for disgorgement and 20 prejudgment interest by moving for civil contempt (and/or through other collection 21 procedures authorized by law) at any time after 14 days following entry of this Final 22 Judgment. Defendant shall pay post judgment interest on any delinquent amounts 23 pursuant to 28 U.S.C. § 1961. 24 25 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 26 Consent is incorporated herein with the same force and effect as if fully set forth 27 herein, and that Defendant shall comply with all of the undertakings and agreements 28 set forth therein. 5 1 2 VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for 3 purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 4 11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant, 5 and further, any debt for disgorgement, prejudgment interest, civil penalty or other 6 amounts due by Defendant under this Final Judgment or any other judgment, order, 7 consent order, decree or settlement agreement entered in connection with this 8 proceeding, is a debt for the violation by Defendant of the federal securities laws or 9 any regulation or order issued under such laws, as set forth in Section 523(a)(19) of 10 the Bankruptcy Code, 11 U.S.C. §523(a)(19). 11 VII. 12 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 13 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 14 Final Judgment. 15 16 17 18 6/8/2017 Dated: ______________, _____ ____________________________________ UNITED STATES DISTRICT JUDGE ANDREW J GUILFORD 19 20 21 22 23 24 25 26 27 28 6

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