Securities and Exchange Commission v. Shields et al
Filing
98
FINAL JUDGMENT by Clerk re: 97 Order on Motion for Judgment. By Clerk on 3/16/2015. (alowe)
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Civil Action No. 11-cv-02121-REB-MJW
SECURITIES AND EXCHANGE COMMISSION
Plaintiff
v.
JEFFORY D. SHIELDS (a/k/a JEFFREY D. SHIELDS) and
GEODYNAMICS, INC. (f/k/a or d/b/a GEODYNAMICS EXPLORATION, INC.)
Defendants
And
GEODYNAMICS, INC. JOHNSTON’S CORNER #1 and #2 JOINT VENTURE (d/b/a
GEODYNAMICS EXPLORATION, INC. JOHNSTON’S CORNER 1 & 2),
GEODYNAMICS, INC. HUSKIES #1 JOINT VENTURE (d/b/a HUSKIES NUMBER 1
JOINT VENTURE),
GEODYNAMICS, EXPLORATION, INC. TRUMPETER #1 and #2 JOINT VENTURE
(d/b/a FLORIBAMA-TRUMPETER 1&2 JV; TRUMPETER JV 1&2 – CARBOTEC;
TRUMPETER JV 1&2 – GEODYNAMICS),
GEODYNAMICS, INC. EVDA #1 JOINT VENTURE (d/b/a EVDA JOINT VENTURE),
HUSKIES LEASEHOLD JOINT VENTURE,
FLORIBAMA OIL CORPORATION,
CARBOTEC, INC.,
TRITON ENERGY ASSET MANAGEMENT, INC.,
T.E.A.M. PROPERTY MANAGEMENT, LLC,
S & P ENERGY, LLC,
AURUM ENERGY ASSOCIATES, LLC, and
UNUM, LLC
Relief Defendants
FINAL JUDGMENT
In accordance with the orders filed during the pendency of this case, and
pursuant to Fed. R. Civ. P. 58(a), the following Final Judgment is hereby entered.
Pursuant to the Order for Judgment [#97] of Judge Robert E. Blackburn entered
on March 16, 2015 it is
ORDERED that judgment is entered as follows:
1. That defendant Jeffory D. Shields and his agents, servants, employees,
attorneys, and all persons in active concert or participation with them who receive actual
notice of the 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 (codified at 15 U.S.C. § 78j(b)), and Rule 10b-5
promulgated thereunder (codified at 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;
2. That defendant Jeffory D. Shields and his agents, servants, employees,
attorneys, and all persons in active concert or participation with them who receive actual
notice of the final judgment, by personal service or otherwise, are permanently
restrained and enjoined from violating Section 17(a) of the Securities Act of 1933
(codified at 15 U.S.C. § 77q(a)) in the offer or sale of any security by the use of any
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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;
3. That defendant Jeffory D. Shields and his agents, servants, employees,
attorneys, and all persons in active concert or participation with them who receive actual
notice of the final judgment, by personal service or otherwise, are permanently
restrained and enjoined from violating Section 5(a) and (c) of the Securities Act (codified
at 15 U.S.C. § 77e(a) and (c)) 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
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(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 (codified at 15 U.S.C. § 77h);
4. That defendant Jeffory D. Shields and his agents, servants, employees,
attorneys, and all persons in active concert or participation with them who receive actual
notice of the final judgment, by personal service or otherwise, are permanently
restrained and enjoined from violating Section 15(a) of the Exchange Act (codified at 15
U.S.C. § 78o(a)) by directly or indirectly acting as a broker or dealer (other than such a
broker or dealer whose business is exclusively intrastate and who does not make use of
any facility of a national securities exchange) and making use of the mails or any means
or instrumentality of interstate commerce 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 broker or
dealer is registered as provided by law;
5. That defendant Jeffory D. Shields is liable for disgorgement of $4,613,124.97,
representing profits gained as a result of the conduct alleged in the Complaint, which is
deemed satisfied by the order of restitution and forfeiture in the Judgment entered on
August 15, 2014, in the related criminal case; provided, further, that as agreed to by the
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parties, the court is not imposing a civil penalty in this case in light of the criminal
sanctions ordered in the related criminal case against Mr. Shields;
6. That the Consent is incorporated herein with the same force and effect as if
fully set forth herein, and that defendant Jeffory D. Shields shall comply with all
undertakings and agreements set forth therein;
7. That all pending claims against defendant Geodynamics, Inc., and each and
all relief defendants are dismissed.
8. This case is closed.
Dated at Denver, Colorado this 16th day of March, 2015.
FOR THE COURT:
JEFFREY P. COLWELL, CLERK
By: s/
A. Lowe
A. Lowe
Deputy Clerk
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