Securities and Exchange Commission v. Justin Samuel Cary

Filing 16

FINAL JUDGMENT as to Defendant Justin Samuel Gary 15 by Judge David O. Carter: See document for further information. (MD JS-6, Case Terminated). (lwag)

JS-6
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GARY Y. LEUNG (Cal. Bar No. 302928)
Email: [e-mail]
TODD S. BRILLIANT (Cal. Bar No. 147727)
Email: [e-mail]
Attorneys for Plaintiff
Securities and Exchange Commission
Michele Wein Layne, Regional Director
Alka N. Patel, Associate Regional Director
Amy J. Longo, Regional Trial Counsel
444 S. Flower Street, Suite 900
Los Angeles, California 90071
Telephone: [phone]
Facsimile: [phone]

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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.

Case No. 8:17-cv-01649-DOC-JCG
FINAL JUDGMENT AS TO
DEFENDANT JUSTIN SAMUEL
CARY [15]

JUSTIN SAMUEL CARY,
Defendant.

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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 Justin Samuel Cary (“Defendant”) having entered a general appearance;

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consented to the Court’s jurisdiction over Defendant 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 and except as otherwise

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provided herein in paragraph VI); waived findings of fact and conclusions of law; and

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waived any right to appeal from this Final Judgment:

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I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 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 any

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

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

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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

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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.

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

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

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with anyone described in (a).

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FINAL JUDGMENT

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II.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant

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to Section 21(d)(2) of the Exchange Act, 15 U.S.C. § 78u(d)(2), and/or Section 20(e)

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of the Securities Act, 15 U.S.C. § 77t(e), Defendant is prohibited, for five years

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following the date of entry of this Final Judgment, from acting as an officer or

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director of any issuer that has a class of securities registered pursuant to Section 12 of

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the Exchange Act, 15 U.S.C. § 78l, or that is required to file reports pursuant to

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Section 15(d) of the Exchange Act, 15 U.S.C. § 78o(d).

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

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is liable for disgorgement of $8,140.25, representing profits gained as a result of the

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

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amount of $514.78, and a civil penalty in the amount of $8,140.25 pursuant to

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Section 21(d) and Section 21A of the Exchange Act, 15 U.S.C. §§ 78u(d), 78u-1.

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Defendant shall satisfy this obligation by paying $16,795.28 to the Securities and

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Exchange Commission pursuant to the terms of the payment schedule set forth in

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paragraph IV below after entry of this Final Judgment.

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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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FINAL JUDGMENT

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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; Justin Samuel Cary as a defendant in this action; and

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specifying that 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. The

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

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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

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pursuant to 28 U.S.C. § 1961.

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IV.
Justin Samuel Cary shall pay the total of disgorgement, prejudgment interest,

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and penalty (name as applicable) due of $16,795.28 in 2 installments to the

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Commission according to the following schedule: (1) $8,655.03, within 14 days of

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entry of this Final Judgment; (2) $8,140.25, within 365 days of entry of this Final

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Judgment. Payments shall be deemed made on the date they are received by the

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Commission and shall be applied first to post judgment interest, which accrues

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pursuant to 28 U.S.C. § 1961 on any unpaid amounts due after 14 days of the entry of

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Final Judgment. Prior to making the final payment set forth herein, Justin Samuel

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

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payment.

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If Justin Samuel Cary fails to make any payment by the date agreed and/or in

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

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

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

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staff of the Commission without further application to the Court.

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

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Consent is incorporated herein with the same force and effect as if fully set forth

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herein, and that Defendant shall comply with all of the undertakings and agreements

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set forth therein.

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VI.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for

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purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code,

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11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant,

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and further, any debt for disgorgement, prejudgment interest, civil penalty or other

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amounts due by Defendant under this Final Judgment or any other judgment, order,

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consent order, decree or settlement agreement entered in connection with this

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proceeding, is a debt for the violation by Defendant of the federal securities laws or

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any regulation or order issued under such laws, as set forth in Section 523(a)(19) of

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

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VII.

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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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January 5, 2018
Dated: ___________

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_______________________________
UNITED STATES DISTRICT JUDGE
DAVID O. CARTER

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FINAL JUDGMENT

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