Securities and Exchange Commission v. Ron K. Harrison et al

Filing 97

FINAL JUDGMENT AS TO DEFENDANT GLOBAL TRADING INSTITUTE, LLC by Judge Sherilyn Peace Garnett. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant GTI is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b ) of the Securities Exchange Act of 1934. 15 U.S.C. 78j(b), and Rule 10b-5 thereunder, 17 C.F.R. 240.10b-5, in connection with the purchase or sale of any security, by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange. (MD JS-6, Case Terminated). (iv)

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JS-6

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,

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Plaintiff,
vs.
RON K. HARRISON; AND GLOBAL
TRADING INSTITUTE, LLC,

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Defendants,
and
IRINA PARFYONOVA,
Relief Defendant.

Case No. 8:21-cv-01610-SPG-DFM
FINAL JUDGMENT AS TO
DEFENDANT GLOBAL TRADING
INSTITUTE, LLC

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This matter came before the Court on the Plaintiff Securities and Exchange

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Commission’s (“SEC” or “Commission”) Motion for Default Judgment against

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Defendant Global Trading Institute, LLC (“GTI” or “Defendant”). The Court, having

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considered the SEC’s First Amended Complaint, the Motion, the supporting

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Memorandum of Points and Authorities, the supporting declaration and exhibits,

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supplemental briefing concerning the same, and the other evidence and argument

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presented to the Court, finds that:
I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant

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GTI is permanently restrained and enjoined from violating, directly or indirectly,

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Section 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 thereunder, 17 C.F.R. § 240.10b-5, in connection with the

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purchase or sale of any security, by using any means or instrumentality of interstate

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commerce, or of the mails, or of any facility of any national securities exchange:

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(a)

to employ any device, scheme, or artifice to defraud; or

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(b)

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

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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 provided

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in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the

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following who receive actual notice of this Judgment by personal service or otherwise:

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(a) GTI’s officers, agents, servants, employees, and attorneys; and (b) other persons in

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active concert or participation with GTI or with anyone described in (a).

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II.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant

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GTI 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

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the statements made, in light of the circumstances under which they were

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made, not misleading; or

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(c)

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

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in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the

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following who receive actual notice of this Judgment by personal service or otherwise:

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(a) GTI’s officers, agents, servants, employees, and attorneys; and (b) other persons in

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active concert or participation with GTI or with anyone described in (a).
III.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant

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GTI is permanently restrained and enjoined from violating Sections 206(1) and (2) of

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the Investment Advisers Act of 1940 (“Advisers Act”) [15 U.S.C. §§ 80b-6(1) &

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80b-6(2)], while acting as an investment adviser, by use of the mails or any means or

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instrumentality of interstate commerce, directly or indirectly:

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(a)

prospective client; or

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to employ any device, scheme, or artifice to defraud any client or

(b)

to engage in any transaction, practice, or course of business which operates
as a fraud or deceit upon any client or prospective client.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided

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in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the

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following who receive actual notice of this Judgment by personal service or otherwise:

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(a) GTI’s officers, agents, servants, employees, and attorneys; and (b) other persons in

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active concert or participation with GTI or with anyone described in (a).

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IV.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to

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Section 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], GTI is permanently

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restrained and enjoined from directly or indirectly, including through any entity it owns

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or controls, accessing any securities brokerage account of any third-party, including

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doing so with the consent of the account holder.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided

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in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the

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following who receive actual notice of this Judgment by personal service or otherwise:

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(a) GTI’s officers, agents, servants, employees, and attorneys; and (b) other persons in

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active concert or participation with GTI or with anyone described in (a).
V.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that

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(1) Defendant GTI is liable, jointly and severally with Defendant Ron K. Harrison

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(“Harrison”), for disgorgement of $37,594.71 with prejudgment interest of $1,822.06

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for a total of $40,080.82, which represents net profits gained as a result of the conduct

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alleged in the First Amended Complaint. Defendant shall satisfy this obligation by

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paying $40,080.82 to the Securities and Exchange Commission within 30 days after

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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.

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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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Defendant may also pay by certified

Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
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and shall be accompanied by a letter identifying the case title, civil action number, and

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name of this Court; GTI as a defendant in this action; and specifying that payment is

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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.

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The Commission may enforce the Court’s judgment for disgorgement and

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prejudgment interest by using all collection procedures authorized by law, including,

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but not limited to, moving for civil contempt at any time after 30 days following entry

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of this Final Judgment.

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Defendant shall pay post judgment interest on any amounts due after 30 days of

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the entry of this Final Judgment pursuant to 28 U.S.C. § 1961. The Commission shall

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hold the funds, together with any interest and income earned thereon (collectively, the

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“Fund”), pending further order of the Court.

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The Commission may propose a plan to distribute the Fund subject to the Court’s

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approval. Such a plan may provide that the Fund shall be distributed pursuant to the

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Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court

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shall retain jurisdiction over the administration of any distribution of the Fund and the

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Fund may only be disbursed pursuant to an Order of the Court.

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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, or other amounts due by

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Defendant under this Final Judgment or any other judgment, order, consent order,

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decree or settlement agreement entered in connection with this proceeding, is a debt

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for the violation by Defendant of the federal securities laws or any regulation or order
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issued under such laws, as set forth in Section 523(a)(19) of the Bankruptcy Code,

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11 U.S.C. § 523(a)(19).
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 purposes of enforcing the terms of this

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Judgment.
VIII.

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There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules

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of Civil Procedure, the Clerk is ordered to enter this Judgment forthwith and without

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further notice.

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IT IS SO ORDERED.

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March 26, 2024
Dated: _______________

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HON. SHERILYN PEACE GARNETT
UNITED STATES DISTRICT JUDGE

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