Securities And Exchange Commission v. Neufeld et al

Filing 24

MOTION by Plaintiff Securities And Exchange Commission for judgment Agreed Final Judgment (Attachments: # 1 Exhibit 1, # 2 Exhibit 2)(Shoenthal, Andrew)

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

Case No.: 10-CV-2399
Judge John F. Grady
Magistrate Judge Nolan

Defendants.
PLAINTIFF’S MOTION FOR ENTRY OF AGREED FINAL JUDGMENT
Plaintiff Securities and Exchange Commission (the “Commission”) respectfully moves
this Court for entry of the proposed agreed final judgment as to 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

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.
2.

The Defendants on April 27, 201 consented to the entry of an order that

permanently enjoined them 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 Investment Advisers Act of 1940 (“Advisers Act”) and Rule
206(4)-8 thereunder.

(Docket No. 20)

The Defendants also agreed 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.

The order did not resolve the

appropriateness or amount of a civil penalty.
3.

The Defendants now agree to the entry of the proposed final judgment which sets

a civil penalty in the amount of $75,000 pursuant to Section 209(e) of the Advisers Act [15
U.S.C. 80b-9(e)] against Neufeld and no civil penalty against Paridon. Defendants executed a
consent to the entry of the proposed final judgment, a copy of which is attached as Exhibit 2.
4.

The entry of the proposed final judgment obviates the need for a hearing on the

merits, conserves judicial resources, and resolves this lawsuit.
Dated: November 10, 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 November 10, 2011, I caused a copy of the foregoing Plaintiff’s
Motion for Entry of Agreed Final Judgment 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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