Securities and Exchange Commission v. Justin Robert King et al
Filing
67
JUDGMENT AS TO DEFENDANT JUSTIN ROBERT KING 66 by Judge James V. Selna. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities E xchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security: (a) to employ any device, scheme, or artifice to defraud; (b) to make any untrue statement of a material fact or to omit to state a material fact necessary in or der to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. [See document for further details.] (es)
1
2
3
4
5
6
7
8
9
UNITED STATES DISTRICT COURT
10
CENTRAL DISTRICT OF CALIFORNIA
11
SOUTHERN DIVISION
12
13
SECURITIES AND EXCHANGE
COMMISSION,
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Plaintiff,
vs.
JUSTIN ROBERT KING; AND
ELEVATE INVESTMENTS LLC,
Defendants,
SHANNON LEIGH KING,
Relief Defendant.
Case No. SACV 20-02398 JVS (DFMx)
JUDGMENT AS TO DEFENDANT
JUSTIN ROBERT KING
1
The Securities and Exchange Commission having filed a Complaint and
2
Defendant Justin Robert King (“Defendant”) having entered a general appearance;
3
consented to the Court’s jurisdiction over Defendant and the subject matter of this
4
action; consented to entry of this Judgment without admitting or denying the
5
allegations of the Complaint (except as to jurisdiction and except as otherwise
6
provided herein in paragraph VI); waived findings of fact and conclusions of law; and
7
waived any right to appeal from this Judgment:
I.
8
9
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
10
permanently restrained and enjoined from violating, directly or indirectly, Section
11
10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. §
12
78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using
13
any means or instrumentality of interstate commerce, or of the mails, or of any
14
facility of any national securities exchange, in connection with the purchase or sale of
15
any security:
16
(a)
to employ any device, scheme, or artifice to defraud;
17
(b)
to make any untrue statement of a material fact or to omit to state
18
a material fact necessary in order to make the statements made, in the light of
19
the circumstances under which they were made, not misleading; or
20
(c)
to engage in any act, practice, or course of business which
21
operates or would operate as a fraud or deceit upon any person.
22
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as
23
provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
24
binds the following who receive actual notice of this Judgment by personal service or
25
otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and
26
(b) other persons in active concert or participation with Defendant or with anyone
27
described in (a).
28
1
II.
1
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)
to engage in any transaction, practice, or course of business which
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 Judgment by personal service or
17
otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and
18
(b) other persons in active concert or participation with Defendant or with anyone
19
described in (a).
III.
20
21
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
22
Defendant is permanently restrained and enjoined from violating Section 206(4) of
23
the Advisers Act, 15 U.S.C. §§ 80b-6(4), and Rule 206(4)-8, 17 C.F.R. §275.206(4)-8
24
while acting as an investment adviser to a pooled investment vehicle, directly or
25
indirectly, by use of the mails or means or instrumentalities of interstate commerce:
26
27
(a)
to make untrue statements of a material fact or omitted to state a
material fact necessary in order to make the statements made, in the light of the
28
2
1
circumstances under which there were made, not misleading, to any investor or
2
prospective investor in the pooled investment vehicle; or
3
(b)
to engage in acts, practices, or courses of business that were
4
fraudulent, deceptive, or manipulative with respect to any investor or
5
prospective investor in the pooled investment vehicle.
6
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as
7
provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also
8
binds the following who receive actual notice of this Judgment by personal service or
9
otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and
10
(b) other persons in active concert or participation with Defendant or with anyone
11
described in (a).
12
IV.
13
Upon motion of the Commission, the Court shall determine whether it is
14
appropriate to order disgorgement of ill-gotten gains and/or a civil penalty pursuant to
15
Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)], Section 21(d)(3) of the
16
Exchange Act [15 U.S.C. § 78u(d)(3)], and Section 209(e)(1) of the Advisers Act [15
17
U.S.C. § 80b-9(e)(1)] and, if so, the amount(s) of the disgorgement and/or civil
18
penalty. If disgorgement is ordered, Defendant shall pay prejudgment interest
19
calculated from June 1, 2019, based on the rate of interest used by the Internal
20
Revenue Service for the underpayment of federal income tax as set forth in 26 U.S.C.
21
§ 6621(a)(2). In connection with the Commission’s motion for disgorgement and/or
22
civil penalties, and at any hearing held on such a motion: (a) Defendant will be
23
precluded from arguing that he did not violate the federal securities laws as alleged in
24
the Complaint; (b) Defendant may not challenge the validity of the Consent or this
25
Judgment; (c) solely for the purposes of such motion, the allegations of the Complaint
26
shall be accepted as and deemed true by the Court; and (d) the Court may determine
27
the issues raised in the motion on the basis of affidavits, declarations, excerpts of
28
sworn deposition or investigative testimony, and documentary evidence, without
3
1
regard to the standards for summary judgment contained in Rule 56(c) of the Federal
2
Rules of Civil Procedure. In connection with the Commission’s motion for
3
disgorgement and/or civil penalties, the parties may take discovery, including
4
discovery from appropriate non-parties.
V.
5
6
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the
7
Consent is incorporated herein with the same force and effect as if fully set forth
8
herein, and that Defendant shall comply with all of the undertakings and agreements
9
set forth therein.
VI.
10
11
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for
12
purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code,
13
11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant,
14
and further, any debt for disgorgement, prejudgment interest, civil penalty or other
15
amounts due by Defendant under this Judgment or any other judgment, order, consent
16
order, decree or settlement agreement entered in connection with this proceeding, is a
17
debt for the violation by Defendant of the federal securities laws or any regulation or
18
order issued under such laws, as set forth in Section 523(a)(19) of the Bankruptcy
19
Code, 11 U.S.C. §523(a)(19).
20
21
VII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court
22
shall retain jurisdiction of this matter for the purposes of enforcing the terms of this
23
Judgment.
24
25
26
27
28
4
1
VIII.
2
There being no just reason for delay, pursuant to Rule 54(b) of the Federal
3
Rules of Civil Procedure, the Clerk is ordered to enter this Judgment forthwith and
4
without further notice.
5
6
7
8
Dated: May 27, 2021
____________________________________
UNITED STATES DISTRICT JUDGE
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
5
PROOF OF SERVICE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
I am over the age of 18 years and not a party to this action. My business address is:
U.S. SECURITIES AND EXCHANGE COMMISSION,
444 S. Flower Street, Suite 900, Los Angeles, California 90071
Telephone No. (323) 965-3998; Facsimile No. (213) 443-1904.
On May 26, 2021, I caused to be served the documents entitled JUDGMENT
AS TO DEFENDANT JUSTIN ROBERT KING on all the parties to this action
addressed as stated on the attached service list:
☐
OFFICE MAIL: By placing in sealed envelope(s), which I placed for
collection and mailing today following ordinary business practices. I am readily
familiar with this agency’s practice for collection and processing of correspondence
for mailing; such correspondence would be deposited with the U.S. Postal Service on
the same day in the ordinary course of business.
☐
PERSONAL DEPOSIT IN MAIL: By placing in sealed envelope(s),
which I personally deposited with the U.S. Postal Service. Each such envelope was
deposited with the U.S. Postal Service at Los Angeles, California, with first class
postage thereon fully prepaid.
☐
EXPRESS U.S. MAIL: Each such envelope was deposited in a facility
regularly maintained at the U.S. Postal Service for receipt of Express Mail at Los
Angeles, California, with Express Mail postage paid.
☐
HAND DELIVERY: I caused to be hand delivered each such envelope to the
office of the addressee as stated on the attached service list.
☐
UNITED PARCEL SERVICE: By placing in sealed envelope(s) designated
by United Parcel Service (“UPS”) with delivery fees paid or provided for, which I
deposited in a facility regularly maintained by UPS or delivered to a UPS courier, at
Los Angeles, California.
☐
ELECTRONIC MAIL: By transmitting the document by electronic mail to
the electronic mail address as stated on the attached service list.
☒
E-FILING: By causing the document to be electronically filed via the Court’s
CM/ECF system, which effects electronic service on counsel who are registered with
the CM/ECF system.
☐
FAX: By transmitting the document by facsimile transmission. The
transmission was reported as complete and without error.
I declare under penalty of perjury that the foregoing is true and correct.
Date: May 26, 2021
/s/ Lynn M. Dean
Lynn M. Dean
27
28
1
2
SEC v. Justin Robert King, et al.
United States District Court—Central District of California
Case No. 8:20-cv-02398-JVS-DFM
3
SERVICE LIST
1
4
5
6
7
8
9
10
11
12
13
14
Kyra E. Andrassy (by ECF)
SMILEY WANG-EKVALL
3200 Park Center Drive, Suite 250
Costa Mesa, CA 92626
714-445-1000 Phone
714-445-1017 Fax
kandrassy@swelawwfirm.com
Counsel for Receiver for Defendant Elevate Investments LLC
Michael J. Quinn, Esq. (by ECF)
Vedder Price LLP
1925 Century Park East, Suite 1900
Los Angeles, CA 90067
mquinn@vedderprice.com
Counsel for Justin King and Shannon King
15
16
17
18
19
20
21
22
23
24
25
26
27
28
2
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?