Securities and Exchange Commission v. Parrish

Filing 14

FINAL DEFAULT JUDGMENT by Clerk in favor of Securities and Exchange Commission against Larry Michael Parrish re: 13 Order on Motion for Default Judgment by Judge William J. Martinez on 9/25/2012 and Edward P. Butler, Deputy Clerk (ervsl, )

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Judge William J. Martínez
Civil Action No.

11-cv-00558-WJM-MJW

SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
v.
LARRY MICHAEL PARRISH,
Defendant.

FINAL DEFAULT JUDGMENT

Pursuant to and in accordance with Fed. R. Civ. P. 58(a) and the Order Granting
Plaintiff’s Motion for Default Judgment, entered by the Honorable William J. Martínez,
United States District Judge, on September 25, 2012,
IT IS ORDERED as follows:
1.

Plaintiff SEC’s Motion For Default Judgment Against Defendant Larry
Michael Parrish (ECF No. 12) is GRANTED;

2.

Defendant and Defendant’s agents, servants, employees, attorneys, and
all persons in active concert or participation with them who receive actual
notice of this Final Judgment by personal service or otherwise are
permanently restrained and enjoined from violating, directly or indirectly,
Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”)
[15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. §
240.10b-5], by using any means or instrumentality of interstate commerce,

or of the mails, or of any facility of any national securities exchange, in
connection with the purchase or sale of any security: (a) to employ any
device, scheme, or artifice to defraud; (b) to make any untrue statement of
a material fact or to omit to state a material fact necessary in order to
make the statements made, in the light of the circumstances under which
they were made, not misleading; or (c) to engage in any act, practice, or
course of business which operates or would operate as a fraud or deceit
upon any person;
3.

Defendant and Defendant’s agents, servants, employees, attorneys, and
all persons in active concert or participation with them who receive actual
notice of this Final Judgment by personal service or otherwise are
permanently restrained and enjoined from violating Section 17(a) of the
Securities Act of 1933 (the “Securities Act”) [15U.S.C. § 77q(a)] in the
offer or sale of any security by the use of any means or instruments of
transportation or communication in interstate commerce or by use of the
mails, directly or indirectly: (a) to employ any device, scheme, or artifice to
defraud; (b) to obtain money or property by means of any untrue
statement of a material fact or any omission of a material fact necessary in
order to make the statements made, in light of the circumstances under
which they were made, not misleading; or (c) to engage in any transaction,
practice, or course of business which operates or would operate as a
fraud or deceit upon the purchaser;

4.

Defendant and Defendant’s agents, servants, employees, attorneys, and

all persons in active concert or participation with them who receive actual
notice of this Final Judgment by personal service or otherwise are
permanently restrained and enjoined from violating Section 5 of the
Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of
any applicable exemption: (a) Unless a registration statement is in effect
as to a security, making use of any means or instruments of transportation
or communication in interstate commerce or of the mails to sell such
security through the use or medium of any prospectus or otherwise; (b)
Unless a registration statement is in effect as to a security, carrying or
causing to be carried through the mails or in interstate commerce, by any
means or instruments of transportation, any such security for the purpose
of sale or for delivery after sale; or (c) Making use of any means or
instruments of transportation or communication in interstate commerce or
of the mails to offer to sell or offer to buy through the use or medium of
any prospectus or otherwise any security, unless a registration statement
has been filed with the Commission as to such security, or while the
registration statement is the subject of a refusal order or stop order or
(prior to the effective date of the registration statement) any public
proceeding or examination under Section 8 of the Securities Act [15
U.S.C. § 77h];
5.

Defendant and Defendant’s agents, servants, employees, attorneys, and
all persons in active concert or participation with them who receive actual
notice of this Order of Permanent Injunction by personal service or

otherwise are permanently restrained and enjoined from violating, directly
or indirectly, Section 15(a) of the Exchange Act [15 U.S.C. § 78o(a)], by
using any means or instrumentality of interstate commerce, or of the
mails, or of any facility of any national securities exchange to effect any
transactions in, or to induce or attempt to induce the purchase or sale of,
any security (other than an exempted security or commercial paper,
bankers’ acceptances, or commercial bills) unless such person is
registered with the Commission as a broker or dealer in accordance with
Section 15(b) of the Exchange Act;
6.

Defendant and Defendant’s agents, servants, employees, attorneys, and
all persons in active concert or participation with them who receive actual
notice of this Order of Permanent Injunction by personal service or
otherwise are permanently restrained and enjoined from violating, directly
or indirectly, Section 206(1), (2), and (4) and Rule 206(4)-8 of the Advisers
Act [15 U.S.C. § 80b-6(1), (2), and (4) and 17 C.F.R. § 275.206(4)-8], by,
while acting as an investment adviser, directly or indirectly, with scienter,
employing devices, schemes, or artifices to defraud clients or prospective
clients; engaging in transactions, practices, or courses of business which
operated or operate as a fraud or deceit upon any client or prospective
client; and engaging in acts, practices, or courses of business which are
fraudulent, deceptive, or manipulative;

7.

Defendant is liable for disgorgement of $4,139,857.55, representing profits
gained as a result of the conduct alleged in the Complaint, together with

prejudgment interest thereon in the amount of $847,919.71. Defendant
shall satisfy this obligation by paying $4,987,777.26 within 14 days after
entry of this Final Judgment by certified check, bank cashier’s check, or
United States postal money order payable to the Securities and Exchange
Commission. The payment shall be delivered or mailed to the Office of
Financial Management, Securities and Exchange Commission, 100 F
Street, NE, Stop 6042, Washington DC 20549, and shall be accompanied
by a letter identifying Parrish as a defendant in this action; setting forth the
title and civil action number of this action and the name of this Court; and
specifying that payment is made pursuant to this Final Judgment.
Defendant shall pay post-judgment interest on any delinquent amounts
pursuant to 28 USC § 1961. The Commission shall remit the funds paid
pursuant to this paragraph to the United States Treasury;
8.

Defendant shall pay a civil penalty in the amount of $4,987,777.26
pursuant to 15 U.S.C. §§ 77t(d)(2) and 78u(d)(3)(B). Defendant shall
make this payment within 14 days after entry of this Final Judgment by
certified check, bank cashier’s check, or United States postal money order
payable to the Securities and Exchange Commission. The payment shall
be delivered or mailed to the Office of Financial Management, Securities
and Exchange Commission, 100 F Street, NE, Stop 6042, Washington DC
20549, and shall be accompanied by a letter identifying Parrish as a
defendant in this action; setting forth the title and civil action number of
this action and the name of this Court; and specifying that payment is

made pursuant to this Final Judgment. Defendant shall pay
post-judgment interest on any delinquent amounts pursuant to 28 USC §
1961. The Commission shall remit the funds paid pursuant to this
paragraph to the United States Treasury; and
9.

This Court shall retain jurisdiction of this matter for the purposes of
enforcing the terms of this Final Judgment.

10.

As of the date of entry of final judgment, the current post-judgment interest
rate is

0.18% pursuant to 28 USC § 1961.

Dated at Denver, Colorado, this

APPROVED:

25th

day of September 2012.

BY THE COURT:
JEFFREY P. COLWELL, CLERK

Judge William J. Martínez
United States District Court

By: s/ Edward P. Butler
Edward P. Butler, Deputy Clerk