Securities And Exchange Commission v. Saleem M. Khan, et al

Filing 139

JUDGMENT as to Roshanlal Chaganlal. Signed by Judge Haywood S. Gilliam, Jr. on 9/21/2016. (Attachments: # 1 Certificate/Proof of Service)(ndrS, COURT STAFF) (Filed on 9/21/2016)

1 JINA L. CHOI (N.Y. Bar No. 2699718)
SUSAN F. LaMARCA (Cal. Bar No. 215231)
2 [e-mail]
E. BARRETT ATWOOD (Cal. Bar No. 291181)
3 [e-mail]
WADE RHYNE (Cal. Bar No. 216799)
4 [e-mail]
VICTOR HONG (Cal. Bar No. 165938)
5 [e-mail]
6 Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION
7 44 Montgomery Street, Suite 2800
San Francisco, California 94104
8 Telephone: [phone]
Facsimile: [phone]
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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN FRANCISCO DIVISION

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14 SECURITIES AND EXCHANGE COMMISSION,

Case No. 3:14-CV-02743-HSG (DMR)

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FINAL JUDGMENT AS TO
DEFENDANT ROSHANLAL
CHAGANLAL

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Plaintiff,
vs.

17 SALEEM KHAN, et al.,
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Defendants.

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FINAL JUDGMENT AS TO DEFENDANT CHAGANLAL

CASE NO. 3:14-CV-02743-HSG

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The Securities and Exchange Commission having filed a Complaint and Defendant Roshanlal

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Chaganlal (“Defendant”) having entered a general appearance; consented to the Court’s jurisdiction

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over Defendant and the subject matter of this action; consented to entry of this Final Judgment

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without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived

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findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment:
I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently

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restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities

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Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated

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thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or

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of the mails, or of any facility of any national securities exchange, in connection with the purchase or

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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

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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.

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

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Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive

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actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s officers,

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agents, servants, employees, and attorneys; and (b) other persons in active concert or participation

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with Defendant or with anyone described in (a).

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II.

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

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21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)], Defendant is prohibited, for 10 years

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following the date of entry of this Final Judgment, from acting as an officer or director of any issuer

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FINAL JUDGMENT AS TO DEFENDANT CHAGANLAL

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CASE NO. 3:14-CV-02743-HSG

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that has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l]

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or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)].

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III.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is

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liable for disgorgement of $130,000, representing profits gained as a result of the conduct alleged in

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the Complaint, together with prejudgment interest thereon in the amount of $14,680, and a civil

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penalty in the amount of $130,000 pursuant to Section 21A of the Exchange Act [15 U.S.C. § 78u-1].

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Defendant shall satisfy this obligation by paying $274,680 to the Securities and Exchange

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Commission within 14 days after entry of this Final Judgment.

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Defendant may transmit payment electronically to the Commission, which will provide

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detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a

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bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm.

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Defendant may also pay by certified check, bank cashier’s check, or United States postal money

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order payable to the Securities and Exchange Commission, which shall be delivered or mailed to

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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 name of this

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Court; Roshanlal Chaganlal as a defendant in this action; and specifying that payment is made

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pursuant to this Final Judgment.

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Defendant shall simultaneously transmit photocopies of evidence of payment and case

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identifying information to the Commission’s counsel in this action. By making this payment,

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Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part of the

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funds shall be returned to Defendant. The Commission shall send the funds paid pursuant to this

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Final Judgment to the United States Treasury.

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The Commission may enforce the Court’s judgment for disgorgement and prejudgment
interest by moving for civil contempt (and/or through other collection procedures authorized by law)

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FINAL JUDGMENT AS TO DEFENDANT CHAGANLAL

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CASE NO. 3:14-CV-02743-HSG

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at any time after 14 days following entry of this Final Judgment. Defendant shall pay post judgment

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interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.
IV.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of

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exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, any debt

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for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this

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Final Judgment or any other judgment, order, consent order, decree or settlement agreement entered

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in connection with this proceeding, is a debt for the violation by Defendant of the federal securities

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laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the

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Bankruptcy Code, 11 U.S.C. § 523(a)(19). Nothing in this Final Judgment, including this paragraph,

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affects Defendant’s rights under the Fifth Amendment in any proceeding, regardless whether the

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Commission is a party.
V.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.

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VI.
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There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil
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Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.
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Dated: September 21, 2016

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____________________________________
Hon. Haywood S. Gilliam, Jr.
UNITED STATES DISTRICT JUDGE

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FINAL JUDGMENT AS TO DEFENDANT CHAGANLAL

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CASE NO. 3:14-CV-02743-HSG