Securities and Exchange Commission v. Loomis et al

Filing 82

ORDER OF INJUNCTION AS TO DEFENDANT JOHN HAGENER signed by Judge Kimberly J. Mueller on 4/12/13. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant Hagener's Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Hagener shall comply with all of the undertakings and agreements set forth therein; This Court shall retain jurisdiction over this matter for all purposes, including but not limited to, enforcing the terms of this Order of Injunction. (Becknal, R)

1 MARC J. FAGEL (Cal. Bar No. 154425)
JOHN S. YUN (Cal. Bar No. 112260)
2 [e-mail]
JEREMY E. PENDREY (Cal. Bar No. 187075)
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[e-mail]
4 Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION
5 44 Montgomery Street, Suite 2800
San Francisco, California 94104
6 Telephone: [phone]
Facsimile: [phone]
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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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SACRAMENTO DIVISION

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13 SECURITIES AND EXCHANGE COMMISSION,
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Plaintiff,
vs.

16 LAWRENCE “LEE” LOOMIS, LOOMIS WEALTH
SOLUTIONS, LLC, JOHN HAGENER, AND LISMAR
17 FINANCIAL SERVICES, LLC,
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Case No. 2:10-cv-00458-KJM-KJN

ORDER OF INJUNCTION AS TO
DEFENDANT JOHN HAGENER

Defendants.

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Plaintiff United States Securities and Exchange Commission (“Commission”), having filed its

22 complaint in this action, and Defendant John Hagener, having entered an appearance in this case and
23 having submitted the Consent of John Hagener to Injunction (“Consent”), in which he has admitted
24 the jurisdiction of this Court over him and over the subject matter of this action; consented to the
25 entry of this Injunction without admitting or denying any of the allegations in the complaint except as
26 to jurisdiction; waived findings of fact and conclusions of law; and waived any right to a trial or to an
27 appeal from this Order of Injunction as to Defendant John Hagener (“Order of Injunction”):
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I.
SEC v. LOOMIS, ET AL.
Case No. 2:10-cv-00458-KJM-KJN

HAGENER INJUNCTION

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IT IS HEREBY ORDERED, ADJUDGED AND DECREED that Hagener and his agents,

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servants, employees, attorneys-in-fact, and all persons in active concert or participation with any

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of them, who receive actual notice of this Order of Injunction, by personal service or otherwise,

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and each of them1, are permanently enjoined and restrained 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. § 78j(b),

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and Rule 10b-5, 17 C.F.R. § 240.10b-5, 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, in connection

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with the purchase or sale of any 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 material fact

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necessary in order to make the statements made, in the light of the circumstances under

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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

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a fraud or deceit upon any person.

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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Hagener and

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his agents, servants, employees, attorneys-in-fact, and all persons in active concert or participation

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with any of them, who receive actual notice of this Order of Injunction, by personal service or

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otherwise, and each of them, are permanently enjoined and restrained from violating Section 17(a)

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of the Securities Act of 1933 (the “Securities Act”), 15 U.S.C. § 77q(a), in the offer or sale of any

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security by the use of any means or instruments of transportation or communication in interstate

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commerce or by use of the mails, directly or indirectly:

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(a) employing any device, scheme, or artifice to defraud;

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(b) obtaining money or property by means of any untrue statement of a material fact or any

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omission of a material fact necessary in order to make the statements made, in light of

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the circumstances under which they were made, not misleading; or

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See, e.g., SEC v. Current Fin. Serv., Inc. 100 F. Supp. 2d 1 (D.D.C. 2000).

SEC v. LOOMIS, ET AL.
Case No. 2:10-cv-00458-KJM-KJN

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HAGENER INJUNCTION

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(c) engaging 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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III.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that Hagener and

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his agents, servants, employees, attorneys-in-fact, and all persons in active concert or participation

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with any of them, who receive actual notice of this Order of Injunction, by personal service or

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otherwise, and each of them, are permanently enjoined and restrained from violating Sections 5(a)

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and 5(c) of the Securities Act, 15 U.S.C. §§ 77e(a) & 77e(c), by, directly or indirectly, in the

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absence of any applicable exemption, making use of any means or instruments of transportation or

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communication in interstate commerce or of the mails:
(a) to sell a security through the use or medium of any prospectus or otherwise, unless a
registration statement is in effect as to the security; or

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(b) to offer to sell or offer to buy through the use or medium of any prospectus or

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

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Commission as to such security.

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IV.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that Hagener and

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his agents, servants, employees, attorneys-in-fact, and all persons in active concert or participation

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with any of them, who receive actual notice of this Order of Injunction, by personal service or

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otherwise, and each of them, are permanently enjoined and restrained from violating, directly or

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indirectly, Sections 206(1) and 206(2), of the Investment Advisers Act of 1940 (the “Advisers

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Act”), 15 U.S.C. §§ 80b-6(1) & 80b-6(2), by the use of the mails or any means or instrumentality

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of interstate commerce:

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(a) employing any device, scheme, or artifice to defraud any client or prospective client;

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(b) engaging in any transaction, practice, or course of business which operates as a fraud or

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deceit upon any client or prospective client; or
(c) engaging in any act, practice, or course of business which is fraudulent, deceptive, or
manipulative.
SEC v. LOOMIS, ET AL.
Case No. 2:10-cv-00458-KJM-KJN

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HAGENER INJUNCTION

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V.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that Hagener and

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his agents, servants, employees, attorneys-in-fact, and all persons in active concert or participation

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with any of them, who receive actual notice of this Order of Injunction, by personal service or

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otherwise, and each of them, are permanently enjoined and restrained from violating Section

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206(4) of the Advisers Act, 15 U.S.C. § 80b-6(4), and Rule 206(4)-8, 17 C.F.R. §275.206(4)-8, by

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the use of the mails or any means or instrumentality of interstate commerce, directly or indirectly:

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(a) making any untrue statement of a material fact, or omitting to state a material fact
necessary in order to make the statements made, in the light of the circumstances under

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which they were made, not misleading, to any investor or prospective investor in a

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pooled investment vehicle; or

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(b) otherwise engaging in any act, practice or course of business that is fraudulent,

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deceptive, or manipulative with respect to any investor or prospective investor in a

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pooled investment vehicle.

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VI.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant Hagener’s

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Consent is incorporated herein with the same force and effect as if fully set forth herein, and that

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Hagener shall comply with all of the undertakings and agreements set forth therein.

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VII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain

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jurisdiction over this matter for all purposes, including but not limited to, enforcing the terms of

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this Order of Injunction.

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IT IS SO ORDERED.

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Dated: April 12, 2013.

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UNITED STATES DISTRICT JUDGE

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SEC v. LOOMIS, ET AL.
Case No. 2:10-cv-00458-KJM-KJN

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HAGENER INJUNCTION

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APPROVED AS TO FORM:

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Klaus J. Kolb
13620 Lincoln Way
Suite 380
Auburn, California 95603
Tel: [phone]
E-mail: [e-mail]
Attorney for Defendant John Hagener

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SUBMITTED BY:

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John S. Yun
SECURITIES AND EXCHANGE COMMISSION
44 Montgomery Street, Suite 2800
San Francisco, California 94104
Tel: [phone]
E-mail: [e-mail]
Attorney for Plaintiff

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SEC v. LOOMIS, ET AL.
Case No. 2:10-cv-00458-KJM-KJN

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HAGENER INJUNCTION