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)

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1 JINA L. CHOI (N.Y. Bar No. 2699718) SUSAN F. LaMARCA (Cal. Bar No. 215231) 2 E. BARRETT ATWOOD (Cal. Bar No. 291181) 3 WADE RHYNE (Cal. Bar No. 216799) 4 VICTOR HONG (Cal. Bar No. 165938) 5 6 Attorneys for Plaintiff SECURITIES AND EXCHANGE COMMISSION 7 44 Montgomery Street, Suite 2800 San Francisco, California 94104 8 Telephone: (415) 705-2500 Facsimile: (415) 705-2501 9 10 UNITED STATES DISTRICT COURT 11 NORTHERN DISTRICT OF CALIFORNIA 12 SAN FRANCISCO DIVISION 13 14 SECURITIES AND EXCHANGE COMMISSION, Case No. 3:14-CV-02743-HSG (DMR) 15 FINAL JUDGMENT AS TO DEFENDANT ROSHANLAL CHAGANLAL 16 Plaintiff, vs. 17 SALEEM KHAN, et al., 18 Defendants. 19 20 21 22 23 24 25 26 27 28 FINAL JUDGMENT AS TO DEFENDANT CHAGANLAL CASE NO. 3:14-CV-02743-HSG 1 The Securities and Exchange Commission having filed a Complaint and Defendant Roshanlal 2 Chaganlal (“Defendant”) having entered a general appearance; consented to the Court’s jurisdiction 3 over Defendant and the subject matter of this action; consented to entry of this Final Judgment 4 without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived 5 findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment: I. 6 7 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently 8 restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities 9 Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated 10 thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or 11 of the mails, or of any facility of any national securities exchange, in connection with the purchase or 12 sale of any security: 13 (a) to employ any device, scheme, or artifice to defraud; 14 (b) to make any untrue statement of a material fact or to omit to state a material fact 15 necessary in order to make the statements made, in the light of the circumstances 16 under which they were made, not misleading; or 17 18 19 (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 20 Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive 21 actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s officers, 22 agents, servants, employees, and attorneys; and (b) other persons in active concert or participation 23 with Defendant or with anyone described in (a). 24 II. 25 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section 26 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)], Defendant is prohibited, for 10 years 27 following the date of entry of this Final Judgment, from acting as an officer or director of any issuer 28 FINAL JUDGMENT AS TO DEFENDANT CHAGANLAL -2- CASE NO. 3:14-CV-02743-HSG 1 that has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l] 2 or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]. 3 III. 4 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is 5 liable for disgorgement of $130,000, representing profits gained as a result of the conduct alleged in 6 the Complaint, together with prejudgment interest thereon in the amount of $14,680, and a civil 7 penalty in the amount of $130,000 pursuant to Section 21A of the Exchange Act [15 U.S.C. § 78u-1]. 8 Defendant shall satisfy this obligation by paying $274,680 to the Securities and Exchange 9 Commission within 14 days after entry of this Final Judgment. 10 Defendant may transmit payment electronically to the Commission, which will provide 11 detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a 12 bank account via through the SEC website at 13 Defendant may also pay by certified check, bank cashier’s check, or United States postal money 14 order payable to the Securities and Exchange Commission, which shall be delivered or mailed to 15 16 17 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 18 and shall be accompanied by a letter identifying the case title, civil action number, and name of this 19 Court; Roshanlal Chaganlal as a defendant in this action; and specifying that payment is made 20 pursuant to this Final Judgment. 21 Defendant shall simultaneously transmit photocopies of evidence of payment and case 22 identifying information to the Commission’s counsel in this action. By making this payment, 23 Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part of the 24 funds shall be returned to Defendant. The Commission shall send the funds paid pursuant to this 25 Final Judgment to the United States Treasury. 26 27 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) 28 FINAL JUDGMENT AS TO DEFENDANT CHAGANLAL -3- CASE NO. 3:14-CV-02743-HSG 1 at any time after 14 days following entry of this Final Judgment. Defendant shall pay post judgment 2 interest on any delinquent amounts pursuant to 28 U.S.C. § 1961. IV. 3 4 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of 5 exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, any debt 6 for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this 7 Final Judgment or any other judgment, order, consent order, decree or settlement agreement entered 8 in connection with this proceeding, is a debt for the violation by Defendant of the federal securities 9 laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the 10 Bankruptcy Code, 11 U.S.C. § 523(a)(19). Nothing in this Final Judgment, including this paragraph, 11 affects Defendant’s rights under the Fifth Amendment in any proceeding, regardless whether the 12 Commission is a party. V. 13 14 15 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. 16 VI. 17 There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil 18 Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. 19 20 21 Dated: September 21, 2016 22 23 24 ____________________________________ Hon. Haywood S. Gilliam, Jr. UNITED STATES DISTRICT JUDGE 25 26 27 28 FINAL JUDGMENT AS TO DEFENDANT CHAGANLAL -4- CASE NO. 3:14-CV-02743-HSG

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