Securities and Exchange Commission v. Daniel B Vazquez, Sr. et al

Filing 15

FINAL JUDGMENT AS TO DEFENDANT GILBERT FLUETSCH by Judge Cormac J. Carney: Re Stipulation for Final Judgment 12 . (mt)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,

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vs.
DANIEL B. VAZQUEZ, SR.,
GILBERT FLUETSCH, AND
HOPLON FINANCIAL GROUP,
Defendants.

Case No. 8:18−cv−0047 CJC (KESx)
FINAL JUDGMENT AS TO
DEFENDANT GILBERT FLUETSCH

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FINAL JUDGMENT AS TO DEFENDANT GILBERT FLUETSCH

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The Securities and Exchange Commission having filed a Complaint and

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Defendant Gilbert Fluetsch (“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 Section 20(d) of the Securities Act, 15 U.S.C.

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§ 77t(d) and Section 21(d)(3) of the Exchange Act, 15 U.S.C. § 78u(d)(3) Judgment

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without admitting or denying the allegations of the Complaint (except as to

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jurisdiction and except as otherwise provided herein in paragraph IV); waived

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

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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

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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 Judgment by personal service or

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

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

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

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described in (a).
II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant 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 Judgment by personal service or

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

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

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described in (a).

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

III.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

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is liable for disgorgement of $54,086.00, 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 $6,562.72, and a civil penalty in the amount of $54,086.00 pursuant to

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Section 20(d) of the Securities Act, 15 U.S.C. § 77t(d) and Section 21(d)(3) of the

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Exchange Act, 15 U.S.C. § 78u(d)(3). Defendant shall satisfy this obligation by
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paying $114,734.72 to the Securities and Exchange Commission in accordance with

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the payment schedule set forth below.

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Defendant may transmit payments electronically to the Commission, which

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

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also 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
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
and shall be accompanied by a letter identifying the case title, civil action number,
and name of this Court; Gilbert Fluetsch as a defendant in this action; and specifying
that payment is made pursuant to this Final Judgment.
Defendant shall simultaneously transmit photocopies of evidence of payment
and case identifying information to the Commission’s counsel in this action. By
making this payment, Defendant relinquishes all legal and equitable right, title, and
interest in such funds and no part of the funds shall be returned to Defendant. The
Commission shall send the funds paid pursuant to this Final Judgment to the United
States Treasury.
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for
purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code,
11 U.S.C. § 523, the allegations in the complaint are true and admitted by Defendant,
and further, any debt for disgorgement, prejudgment interest, civil penalty or other
amounts due by Defendant under this Judgment or any other judgment, order, consent
order, decree or settlement agreement entered in connection with this proceeding, is a
debt for the violation by Defendant of the federal securities laws or any regulation or
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order issued under such laws, as set forth in Section 523(a)(19) of the Bankruptcy

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Code, 11 U.S.C. § 523(a)(19).

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V.
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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Judgment.

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VI.

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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 Judgment forthwith and
without further notice.

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Dated: May 21, 2018
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UNITED STATES DISTRICT JUDGE

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