Securities and Exchange Commission v. M & A West, Inc. et al

Filing 182

ORDER re 181 Order on Motion for Summary Judgment (vrwlc2, COURT STAFF) (Filed on 11/13/2009)

1 2 3 4 5 6 7 8 9 United United States District Court For the Northern District of California 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 On July 23, 2009, plaintiff Securities and Exchange Commission moved for summary judgment and an injunction against defendant Zahra R Gilak. Doc #175. After Gilak did not respond to IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v M & A WEST, INC, et al, Defendants. /

No

C 01-3376 VRW ORDER

plaintiff's motion, the court ordered Gilak to show cause why plaintiff's motion for summary judgment should not be granted. #178. Doc

Gilak has not submitted a response to the court's order and

the deadline for doing so has passed.

1 2 3 4 5 6 7 8 9 United States District Court For the Northern District of California 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Because Gilak was given opportunity to oppose the motion and did not, plaintiff's motion for summary judgment and an injunction against Gilak (Doc #175) is GRANTED. The court further adopts the proposed order lodged by the Commission. This order provides not only the detailed recitals of

the statutory and regulatory provisions that form the basis for judgment against Gilak, but also sets the terms of injunctive relief and civil monetary penalties to which the Commission is entitled. To the extent that there is any inconsistency between

that order and this order, this order shall control. Finally, a word on the amount of civil penalties that is appropriate. The Commission seeks "third tier" penalties for The maximum third-tier penalty for actions taken

Gilak's conduct.

at the time of the conduct in this case is $110,000, although this may be imposed for each violation. See 15 USC § 77t(d); 15 USC § Beyond stating that it seeks

78u(d)(3); 17 CFR § 201.1001 & tbl 1.

third-tier penalties, the Commission has not proposed a particular penalty or a method for accessing the penalty. Nor, of course, has

Gilak taken a position on the appropriate amount of civil monetary penalties. Based on the facts of this case, the court concludes

that a single $110,000 penalty for each of Gilak's six guilty counts is warranted. Accordingly, the court assesses a $660,000 This is incorporated into the detailed

civil monetary penalty.

order and injunction (Doc #181) filed with this order. // // // // 2

1 2 3 4 5 6 7 8 9 United States District Court For the Northern District of California 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

In sum, the Commission's motion for summary judgment (Doc #175) is GRANTED.

IT IS SO ORDERED.

VAUGHN R WALKER United States District Chief Judge

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