Securities And Exchange Commission v. Neufeld et al

Filing 16

MOTION by Plaintiff Securities And Exchange Commission for judgment AGREED OF PERMANENT INJUNCTIONS AND DISGORGEMENT (Attachments: # 1 Exhibit 1 - Text of Proposed Order, # 2 Exhibit 2- Consents of Defendants)(Shoenthal, Andrew)

Securities And Exchange Commission v. Neufeld et al

Doc. 16

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. JEFFREY R. NEUFELD and PARIDON CAPITAL MANAGEMENT LLC f/k/a TRITONE CAPITAL MANAGEMENT, LLC Defendants. PLAINTIFF'S MOTION FOR ENTRY OF AGREED JUDGMENT FOR PERMANENT INJUNCTIONS AND DISGORGEMENT Plaintiff Securities and Exchange Commission (the "Commission") respectfully moves this Court for entry of the proposed agreed judgment for permanent injunctions and disgorgement for Defendants Jeffrey R. Neufeld ("Neufeld") and Paridon Capital Management, LLC f/k/a Tritone Capital Management, LLC ("Paridon") (collectively, the "Defendants"), a copy of which is attached as Exhibit 1. In support of the motion, the Commission states as follows: 1. On April 19, 2010, the Commission filed a Complaint against Defendants for Case No.: 10-CV-2399 Judge John F. Grady Magistrate Judge Nolan

violating the federal securities laws. (Docket No. 1) The Commission alleges that Paridon, an unregistered investment adviser, and its owner, Neufeld, fraudulently operated the TCM Global Strategy Fund, LP an unregistered investment commodity pool, by reporting false and fictitious rates of returns and assets under management to investors and prospective investors. The Court entered a Preliminary Injunction Order on April 21, 2010.

Dockets.Justia.com

2.

The proposed Judgment, among other things, permanently enjoins Defendants

from violating Section 17(a) of the Securities Act of 1933, Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Sections 206(1), 206(2), 206(3), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder. The Judgment also orders Defendants to pay $53,182.33 in disgorgement and prejudgment interest to an investor in the Paridon Currency Fund, LP, an unregistered investment pool also managed by Defendants. 3. Defendants executed a consent to the entry of the proposed Judgment, a copy of

which is attached hereto as Exhibit 2. 4. The entry of the proposed Judgment obviates the need for a hearing on the merits

and conserves judicial resources. 5. The proposed Judgment does not impose civil penalties. The parties will continue

to work together to resolve this issue. However if the parties cannot agree, the proposed Judgment provides that the Court shall determine the appropriateness and the amount of the civil penalty. Dated: March 25, 2011 Respectfully submitted,

By:

/s/ Andrew Shoenthal Andrew Shoenthal Linda T. Ieleja Gregory von Schaumburg 175 West Jackson Blvd., Suite 900 Chicago, Illinois 60604 Telephone: [phone] Facsimile: [phone] Attorneys for the Plaintiff Securities and Exchange Commission

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CERTIFICATE OF SERVICE I hereby certify that, on March 25, 2011, I caused a copy of the foregoing Plaintiff's Motion for Entry of Agreed Judgment for Permanent Injunctions and Disgorgement to be served upon the following counsel by the Court's ECF system and email: Jason S. Lewis ([e-mail]) Jason M. Hopkins ([e-mail]) Locke Lord Bissell & Liddell LLP 2200 Ross Avenue, Suite 2200 Dallas, Texas 75201 Julie C. Webb ([e-mail]) Locke Lord Bissell & Liddell LLP 111 South Wacker Drive Chicago, Illinois 60606 /s/ Andrew Shoenthal Andrew Shoenthal

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