Securities and Exchange Commission v. Secure Investement Services, Inc., et al
Filing
899
STIPULATION and ORDER signed by Judge Garland E. Burrell, Jr on 8/22/11 ORDERING that the Commission is authrized to pay the funds represented by the check in Exhibit C over the Receiver by negotiating the check to him otherwise; and the amount of the check, $12,366.32, shall be credited against Snowden's liability under the final judgment against her to reduce the amount of disgorgement still owed by $12,366.32.(Mena-Sanchez, L)
1 JOHN S. YUN (Cal. Bar No. 112260)
THOMAS J. EME (Illinois Bar No. 6224870)
2
Attorneys for Plaintiff
3 SECURITIES AND EXCHANGE COMMISSION
44 Montgomery Street, Suite 2600
4 San Francisco, California 94104
Telephone: (415) 705-2500
5 Facsimile: (415) 705-2501
6
7
8
UNITED STATES DISTRICT COURT
9
EASTERN DISTRICT OF CALIFORNIA
10
SACRAMENTO DIVISION
11
SECURITIES AND EXCHANGE COMMISSION,
Case No. 2:07-cv-01724-GEB-CMK
12
Plaintiff,
STIPULATION AND [PROPOSED] ORDER
REGARDING DEFENDANT SNOWDEN’S
DISGORGEMENT
13
vs.
14
SECURE INVESTMENT SERVICES, INC.,
15 AMERICAN FINANCIAL SERVICES, INC.,
LYNDON GROUP, INC., and KIMBERLY A.
16 SNOWDEN,
17
Defendants.
18
19
20
21
22
23
24
25
26
BACKGROUND
Plaintiff Securities and Exchange Commission (“the Commission”) states as follows:
1.
The Commission’s complaint alleged that the Defendants operated a securities fraud
scheme that raised over $25 million from hundreds of investors. (Compl. Par. 1-3.) The complaint
also asked the Court to appoint a receiver to protect investor assets and order the Defendants to
disgorge their ill-gotten gains. Id. Par. 4.
2.
The Court appointed Michael J. Quilling as the Receiver over the three corporate
defendants (Secure Investment Services, Inc., American Financial Services, Inc., and Lyndon Group,
27
28
2
STIPULATION RE DISGORGEMENT
1 Inc.) Since his appointment, the Reciever has been managing the assets of the receivership estate for
2 the benefit of investors.
3
3.
On November 6, 2009, the Court issued a final judgment as to Defendant Kimberly A.
4 Snowden (“Snowden”). The final judgment, attached as Exhibit A, ordered that Snowden is liable
5 for disgorgement in the amount of $574,518.45, together with prejudgment interest thereon in the
6 amount of $53,103.32, for a total of $627,621.77 (“the Disgorgement Amount”). (Exh. A p.1). The
7 final judgment provided that payment of the Disgorgement amount “shall be made to the Clerk of this
8 Court.” (Exh. A p. 2.)
9
4.
As evidenced by attached Exhibit B, the Commission filed a claim in Snowden’s
10 bankruptcy proceeding seeking to collect on the judgment. In partial satisfaction of this claim, the
11 Commision recently received a check from the bankruptcy trustee payable to the Commission in the
12 amount of $12,366.32. A redacted copy of the check is attached as Exhibit C.
STIPULATION
13
14
The undersigned parties agree and stipulate as follows:
15
5.
Notwithstanding the final judgment’s direction that the Disgorgement Amount be paid
16 to the Clerk of Court, the $12,366.32 paid to the Commission by the bankruptcy trustee should be
17 paid over to the Receiver for him to use for the benefit of investors.
18
6.
The amount of $12,366.32 should be credited against Snowden’s liability under the
19 final judgment to reduce the amount of the disgorgement still owed by $12,366.32.
20
7.
No Defendant admits to any civil or criminal liability by way of this stipulation.
21
22
Respectfully submitted,
23
24
SECURITIES AND EXCHANGE
COMMISSION
25
26 Dated: August 22, 2011
27
28
/s/ Thomas J. Eme
Thomas J. Eme
John S. Yun
Attorneys for Plaintiff Securities and
Exchange Commission
-2-
STIPULATION RE DISGORGEMENT
1
2 Dated: August 22, 2011
3
4
Dated: August 22, 2011
5
6
/s/ Jonz Norine (as authorized on Aug. 18, 2011)
Jonz Norine
Attorney for Defendant Kimberly A. Snowden
/s/ Michael J. Quilling (as authorized on Aug. 12, 2011)
Michael J. Quilling
Receiver for Defendants Secure Investment Services,
Inc,. American Financial Services, Inc., and Lyndon
Group, Inc.
7
8
ORDER
9
10
IT IS HEREBY ORDERED that:
11
1.
The Commission is authorized to pay the funds represented by the check in Exhibit C
12 over to the Receiver by negotiating the check to him or otherwise; and
13
2.
The amount of the check, $12,366.32, shall be credited against Snowden’s liability
14 under the final judgment against her to reduce the amount of disgorgement still owed by $12,366.32.
15
nd
16 SIGNED this 22 day of August, 2011.
17
GARLAND E. BURRELL, JR.
United States District Judge
18
19
20
21
22
23
24
25
26
27
28
-3-
STIPULATION RE DISGORGEMENT
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?