Securities and Exchange Commission v. Justin Robert King et al
Filing
71
FINAL JUDGMENT AS TO DEFENDANT ELEVATE INVESTMENTS LLC 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 Securiti es Exchange 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 nat ional 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 i n order 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 . IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement in the amount of $2,354,884, plus prejudgment interest thereon in the amount of $65,309.50, representing net profits gained as a result of th e conduct alleged in the Complaint, which amounts shall be deemed satisfied by the funds currently in the possession of the Court-appointed Receiver in this action. Related to: Stipulation for Judgment, 70 [See Judgment for further details.] (es)
1
2
3
4
5
6
7
8
9
UNITED STATES DISTRICT COURT
10
CENTRAL DISTRICT OF CALIFORNIA
11
12
13
SECURITIES AND EXCHANGE
COMMISSION,
14
Plaintiff,
15
16
17
18
19
20
21
22
23
24
25
26
27
28
vs.
JUSTIN ROBERT KING; AND
ELEVATE INVESTMENTS LLC,
Defendants,
SHANNON LEIGH KING,
Relief Defendant.
Case No. SACV 20-02398 JVS (DFMx)
FINAL JUDGMENT AS TO
DEFENDANT ELEVATE
INVESTMENTS LLC
1
The Securities and Exchange Commission having filed a Complaint and
2
Defendant Elevate Investments LLC having entered a general appearance; consented
3
to the Court’s jurisdiction over Defendant and the subject matter of this action;
4
consented to entry of this Final 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 Final Judgment:
8
9
I.
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 a
18
material fact necessary in order to make the statements made, in the light of the
19
circumstances under which they were made, not misleading; or
20
(c)
21
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 Final Judgment by personal
25
service or otherwise: (a) Defendant’s officers, agents, servants, employees, and
26
attorneys; and (b) other persons in active concert or participation with Defendant or
27
with anyone described in (a).
to engage in any act, practice, or course of business which operates or
28
1
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).
III.
20
21
to engage in any transaction, practice, or course of business which
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
22
permanently restrained and enjoined from violating Section 206(4) of the Advisers
23
Act, [15 U.S.C. § 80b-6(4)], and Rule 206(4)-8 thereunder, [17 C.F.R. § 275.206(4)-
24
8], directly or indirectly, by the use of the mails or any means or instrumentality of
25
interstate commerce, while acting as an investment adviser to a pooled investment
26
vehicle:
27
(a)
to make any untrue statement of a material fact or omitting to state a
28
material fact necessary to make the statements made, in the light of the
2
1
circumstances under which they were made, not misleading, to any investor or
2
prospective investor in a pooled investment vehicle; or
3
(b)
4
deceptive, or manipulative with respect to any investor or prospective investor
5
in a 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 Final Judgment by personal
9
service or otherwise: (a) Defendant’s officers, agents, servants, employees, and
to engage in any act, practice, or course of business that is fraudulent,
10
attorneys; and (b) other persons in active concert or participation with Defendant or
11
with anyone described in (a).
IV.
12
13
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
14
Defendant is liable for disgorgement in the amount of $2,354,884, plus prejudgment
15
interest thereon in the amount of $65,309.50, representing net profits gained as a
16
result of the conduct alleged in the Complaint, which amounts shall be deemed
17
satisfied by the funds currently in the possession of the Court-appointed Receiver in
18
this action.
19
The Receiver shall hold the funds (collectively, the “Fund”) until further order
20
of this Court. The Receiver may propose a plan to distribute the Fund subject to the
21
Court’s approval, and the Court shall retain jurisdiction over the administration of
22
any distribution of the Fund.
V.
23
24
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the
25
Consent is incorporated herein with the same force and effect as if fully set forth
26
herein, and that Defendant shall comply with all of the undertakings and agreements
27
set forth therein.
28
3
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 of the federal securities laws or any regulation
9
or order issued under such laws, as set forth in Section 523(a)(19) of the Bankruptcy
10
Code, 11 U.S.C. §523(a)(19).
VII.
11
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
VIII.
16
There being no just reason for delay, pursuant to Rule 54(b) of the Federal
17
Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith
18
and without further notice.
19
20
21
22
23
Dated: January 18, 2022
____________________________________
HON JAMES V. SELNA
UNITED STATES DISTRICT JUDGE
24
25
26
27
28
4
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
27
PROOF OF SERVICE
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 January 18, 2022, I caused to be served the document entitled
[PROPOSED] FINAL JUDGMENT AS TO RELIEF DEFENDANT ELEVATE
INVESTMENTS LLC 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: January 18, 2022
/s/ Lynn M. Dean
Lynn M. Dean
28
5
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
6
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?