Securities and Exchange Commission v. BIC Real Estate Development Corporation et al

Filing 219

JUDGMENT as to Bic Real Estate Development Corporation, signed by Chief Judge Lawrence J. O'Neill on 5/1/17. (Marrujo, C)

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JOHN B. BULGOZDY (Cal. Bar No. 219897)
Email: [e-mail]
MANUEL VAZQUEZ (Cal. Bar No. 295576)
Email: [e-mail]
MATTHEW T. MONTGOMERY (Cal. Bar No. 260149)
Email: [e-mail]
Attorneys for Plaintiff
Securities and Exchange Commission
Michele Wein Layne, Regional Director
Alka Patel, Associate Regional Director
John W. Berry, Associate Regional Director
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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EASTERN DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,

Case No. 1:16-cv-00344-LJO-JLT

Plaintiff,

JUDGMENT AS TO BIC REAL
ESTATE DEVELOPMENT
CORPORATION

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vs.

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BIC REAL ESTATE
DEVELOPMENT CORPORATION
and DANIEL R. NASE, individually
and d/b/a BAKERSFIELD
INVESTMENT CLUB,

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Defendants,

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BIC SOLO 401K TRUST and
MARGARITA NASE,
Relief Defendants.

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The Securities and Exchange Commission (“SEC”) having filed a Complaint,

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and Defendant BIC Real Estate Development Corporation (“Defendant”), having

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entered a general appearance; consented to the Court’s jurisdiction over Defendant

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and the subject matter of this action; consented to entry of this Judgment without

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admitting or denying the allegations of the Complaint (except as to jurisdiction),

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waived findings of fact and conclusions of law; 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 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 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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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 (“Securities Act”), 15 U.S.C. § 77q(a), in the offer or sale of

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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

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make the statements made, in light of the circumstances under which

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they were made, not misleading; or

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(c)

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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

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

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Defendant is permanently restrained and enjoined from violating Section 5 of the

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Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any

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applicable exemption:

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(a)

Unless a registration statement is in effect as to a security, making use of

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any means or instruments of transportation or communication in

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interstate commerce or of the mails to sell such security through the use

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or medium of any prospectus or otherwise;
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(b)

Unless a registration statement is in effect as to a security, carrying or

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causing to be carried through the mails or in interstate commerce, by

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any means or instruments of transportation, any such security for the

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purpose of sale or for delivery after sale; or

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(c)

Making use of any means or instruments of transportation or

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communication in interstate commerce or of the mails to offer to sell or

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offer to buy through the use or medium of any prospectus or otherwise

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any security, unless a registration statement has been filed with the SEC

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as to such security, or while the registration statement is the subject of a

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refusal order or stop order or (prior to the effective date of the

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registration statement) any public proceeding or examination under

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Section 8 of the Securities Act [15 U.S.C. § 77h].

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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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IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant shall pay disgorgement of $12,623,963.47, jointly and severally with

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Defendant Daniel R. Nase. Defendant shall satisfy this obligation, in whole or in

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part, by the distribution of funds recovered by the Receiver, net of all administrative

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or other expenses.

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V.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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

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this Court shall retain jurisdiction of this matter for the purposes of enforcing the

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terms of this Judgment.

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VII.

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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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IT IS SO ORDERED.
Dated:

/s/ Lawrence J. O’Neill _____

May 1, 2017

UNITED STATES CHIEF DISTRICT JUDGE

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