United States Securities and Exchange Commission v. Cohn et al

Filing 60

MOTION by Plaintiff United States Securities and Exchange Commission for judgment and Relief (Attachments: # 1 Exhibit Criminal Information, # 2 Exhibit Plea Agreement, # 3 Exhibit Criminal Judgment, # 4 Exhibit Cohn's Consent in Court Action and Offer of Settlement in Follow-On Administrative Proceeding, # 5 Exhibit Proposed Order)(Polish, Jonathan)

EXHIBIT 3

Case: 1:16-cr-00325 Document #: 38 Filed: 01/25/17 Page 1 of 9 PageID #:263

UNITED STATES DISTRICT COURT
Northern District of Illinois
UNITED STATES OF AMERICA
v.

JUDGMENT IN A CRIMINAL CASE
Case

Number:

l6 CR 325

USM

Clayton Andrew Cohn

Number:

51209-424

DanielCollins
Defendant's Attomey

THE DEFENDANT:

I
!
!

pleaded guilty to count(s) I of the Information.
which was accepted by the court.
pleaded nolo contendere to
after a plea of not guilty.
was found guilty on

count(s)
count(s)

Title & Section
r8 u.s.c. s 1343

ofthese offenses:
Nature of Offense

Offense Ended

Wire Fraud

The defendant is adiudicated

813U13

Count

The defendant is sentenced as provided in pages 2 through 8 ofthisjudgment. The sentence is imposed pursuant to the Sentencing Reform

Act of 1984.

E

fne defendant

!

Count(s)

has been found not guilty on count(s)

dismissed on the motion of the United States.

It is ordered that the defendant must noti$ the United States Attorney for this District within 30 days
mailing address until all fines, restitution, costso and special assessments imposed by this j
restitution, the defendant must notiry the court and United States Attorney of material

of

residence, or

Jorge L. Alonso, United States District Judge
Name and Title of Judge

Case: 1:16-cr-00325 Document #: 38 Filed: 01/25/17 Page 2 of 9 PageID #:264
a Criminal Case

ILND 2458 (Rev. 08/0212016) Judgment in

DEFENDANT: CLAYTON ANDREW COHN
CASE NUMBER: 16 CR 325
Sheet 2

IMPRISONMENT
The defendant is hereby committed to the custody of the United States Bureau of Prisons to be imprisoned for a total term of:
Fifty two (52) months on Count I of the Information'

I

fne court makes the following recommendations to the Bureau of Prisons: The court recommends that Defendant be housed at Oxford.
The court recommends Defendant shall be placed in an institution where the defendant can participate in the Residential Drug Abuse
Program and in a mental health treatment program.

!
I

fne defendant is remanded to the custody of the United
fne defendant shall surrender to the United

f] ut
!
I

as

States Marshal.

States Marshal for this district:

on

notified by the United States Marshal.

fne defendant shall surrender for service of sentence

[l
E
E

before 2:00 pm on

at the institution designated by the Bureau of Prisons:

4ll7ll7.

ur notified by the United States Marshal.
u. notified by the Probation or Pretrial Services Office.

RETURN
I have executed this judgment

Defendant delivered on

as

follows:

with a certified copy of this

at

judgment.

LINITED STATES MARSHAL

By
DEPUTY UNITED STATES MARSHAL

Case: 1:16-cr-00325Case
Document #: 38 Filed: 01/25/17 Page 3 of 9 PageID #:265
a Criminal

ILND 2458 (Rev. 08/0212016) Judgment in

DEFENDANT: CLAYTON ANDREW COHN
CASE NUMBER: 16 CR 325
Sheet 3

Supervised Release

Judgment

- Page 3 of 8

MANDATORY CONDITTONS OF SUPERVTSED RELEASE PURSUANT TO 18 U.S.C $ 3583(d)

You must report to the probation office in the district to which you are released within 72 hours of release from the custody of the
Bureau of Prisons. The court imposes those conditions identified by checkmarks below:

During the period of supervised release:

X (l) you shall not commit another Federal, State, or local crime.
X (2) you shall not unlawfully possess a controlled substance.
tr (3) you shall attend a public, private, or private nonprofit offender rehabilitation

program that has been approved by the court,
an approved program is readily available within a 50-mile radius of your legal residence. [Use for a first conviction of a
domestic violence crime, as defined in $ 3561(b).]

tr

(4) you shall register

x
x

(5)
(6)

if

and comply with all requirements of the Sex Offender Registration and Notification Act (42 U.S.C. S
169r3).
you shall cooperate in the collection of a DNA sample if the collection of such a sample is required by law.
you shall refiain from any unlawful use of a controlled substance AND submit to one drug test within l5 days of release on
supervised release and at least two periodic tests thereafter, up to 104 periodic tests for use ofa controlled substance during
each year of supervised release. [This mandatory condition may be ameliorated or suspended by the court for any defendant
ifreliable sentencing information indicates a low risk offuture substance abuse by the defendant.]

DISCRETIONARY CONDITIONS OF SUPERVTSED RELEASE PURSUANT TO 18 U.S.C $ 3563(b) AND
18 u.S.C $ 3s83(d)
Discretionary Conditions
The court orders that you abide by the following conditions during the term of supervised release because such
conditions are reasonably related to the factors set forth in $ 3553(aXl) and (aX2XB). (C). and (D): such conditions involve only such
deprivations of liberty or property as are reasonably necessary for the purposes indicated in $ 3553 (aX2) (B). (C). and (D): and such
conditions are consistent with any pertinent policy statement issued by the Sentencing Commission pursuant to 28 U.S.C. 994a.
The court imposes those conditions identified by checkmarks below:
During the period of supervised release:
tr (l) you shall provide financial supportto any dependents iffinancially able.
X Q) you shall make restitution to a victim of the offense under $ 3556 (but not subject to the limitation of g 3663(a) or
g

tr
X

(3)
@)

tr

(5)

X

(6)

Xo)
X
X

(8)
(e)

3663A(cXlXA)).

you shall give to the victims of the offense notice pursuant to the provisions of S 55, as follows: i,i=1,=
you shall work at least 40 hours per week at a lawful occupation unless excused by the probation for schooling, training,
or other acceptable reasons.
you shall refrain from engaging in a specified occupation, business, or profession bearing a reasonably direct relationship
to the conduct constituting the offense, or engage in such a specified occupation, business, or profession only to a stated
degree or under stated circumstances; (if checked yes, please indicate restriction(s)) Ti
you shall not knowingly meet, communicate, or otherwise interact with a person whom you know to be engaged, or
planning to be engaged, in criminal activity.
E visiting the following type of places: ;"";;.
I knowingly meeting or communicating with the following persons: i - ...
you shall refrain from ! any or I excessive use of alcohol (defined as I having a blood alcohol concentration greater
than 0.08; or E
), or any use of a narcotic drug or other controlled substance, as defined in $ 102 of the Controlled
Substances Act (21 U.S.C. S 802), without a prescription by a licensed medical practitioner.
you shall refrain from possessing a firearm, destructive device, or other dangerous weapon.
you shall participate, at the direction of a probation officer, in a substance abuse treatment program, which may
include urine testing up to a maximum of 104 tests per year.
you shall participate, at the direction of a probation officer, in a mental health treatment program, which may include
the use of prescription medications.
E you shall participate, at the direction of a probation officer, in medical care; (if checked yes, please specifu: i .)
(intermittent confinement)^:y_9y,shall remain in the custody of the Bureau of Prisons during nights, weekends, or other
intervals of time, totaling ',lfil,ffi [no more than the lesser of one year or the term of imprisonment authorized for the

x

tr

(10)

Case: 1:16-cr-00325 Document #: 38 Filed: 01/25/17 Page 4 of 9 PageID #:266
a Criminal Case
Judgment - Page 4 of 8
Release

ILND 2458 (Rev. 08/0212016) Judgment in

DEFENDANT: CLAYTON ANDREW COHN
CASE NUMBER: l6 CR 325
Supervised

Sheet 3

offense], during the first year ofthe term ofsupervised release (provided, however, that a condition set forth in $
a violation of a conditionofsupervised release in accordance with $ 3583(eX2)
and only when facilities are available) for the following period HH;,,.. .
(community confinement): you shall reside at, or participate in the program of a community corrections facility
(including a facility maintalned or under contract to the Bureau of Prisons) for all or part of the term of supervised
""
months.
release, for a period
you shall work in community service 1s1ffiffiry1t* hours as directed by a probation officer.
' or refrain from residing in a specified place or area:;1i6.;
you shall reside in the following place or
,
you shall not knowingly leave the judicial district in which you are being supervised without the prior permission of the
court or a probation officer.
you shall report to a probation officer in a manner and fiequency as reasonably directed by the court or the probation
officer.
you shall permit a probation officer to visit you X at any reasonable time or
as
,
at
at
at
E at a community service location
other reasonable location specified by a probation officer
you shall permit confiscation of any contraband observed in plain view of the probation officer.
you shall notifl/ the probation officer withinT2 hours, of becoming aware of any changes or planned change in employer,
workplace or residence.
you shall notiry a probation officer promptly, within 72 hours, if arrested or queg{9--1ed by a law enforcement officer.
(home confinement): you shall remain at your place of residence for a total of ' :"'' months during nonworking hours.
[This condition may be imposed only as an alternative to incarceration.]
Compliance with this condition shall be monitored by telephonic or electronic signaling devices (the selection of
which shall be determined by a probation officer). Electronic monitoring shall ordinarily be used in connection
with home detention as it provides continuous monitoring of your whereabouts. Voice identification may be used
in lieu of electronic monitoring to monitor home confinement and provides for random monitoring of your
whereabouts. If the offender is unable to wear an electronic monitoring device due to health or medical reasons, it
is recommended that home confinement with voice identification be ordered, which will provide for random
checks on your whereabouts. Home detention with electronic monitoring or voice identification is not deemed
appropriate and cannot be effectively administered in cases in which the offender has no bona fide residence, has a
history of violent behavior, serious mental health problems, or substance abuse; has pending criminal charges
elsewhere; requires l?equent travel inside or outside the district; or is required to work more than 60 hours per

3563(bxt0) shall be imposed only for

n

(

I

I

)

tr 02)
fl (13)
X (14)
X (15)

of

area:

X (16) X
X 07)

x
tr

( I 8)
(19)

tr

I
[l

home

E

work

!

school

I

specified:

week.
You shall pay the cost of electronic monitoring or voice identification at the daily contractual rate, if you are
financially able to do so.
tr The Court waives the electronic/location monitoring component of this condition.
you shall comply with the terms of any court order or order of an administrative process pursuant to the law of a State,
the District of Columbia, or any other possession or territory of the United States, requiring payments by you for the
support and maintenance of a child or of a child and the parent with whom the child is living.
(deportation): you shall be surrendered to a duly authorized official of the Homeland Security Department for a
determination on the issue of deportability by the appropriate authority in accordance with the laws under the
Immigration and Nationality Act and the established implementing regulations. If ordered deported, you shall not
reenter the United States without obtaining, in advance, the express written consent of the Attorney General or the
Secretary of the Department of Homeland Security.
you shall satisfy such other special conditions as ordered below.
(if required to register under the Sex Offender Registration and Notification Act) you shall submit at any time, with or
without a warrant, to a search ofyour person and any property, house, residence, vehicle, papers, computer, other
electronic communication or data storage devices or media, and effects, by any law enforcement or probation officer
having reasonable suspicion concerning a violation ofa condition ofsupervised release or unlawful conduct by you, and
by any probation officer in the lawful discharge ofthe officer's supervision functions (see special conditions section).

tr

n

(20)

tr

Ql)

X
tr

Q2)
Q3)

tr e4) other:

SPECIAL CONDITIONS OF SUPERVISED RELEASE PURSUANT TO 18 U.S.C.3563(b)(22) and 3s83(d)
The court imposes those conditions identified by checkmarks below:

During the term of supervised release:

tr

(l)

tr

Q)

if you have not obtained

a high school diploma or equivalent, you shall participate in a General Educational
Development (GED) preparation course and seek to obtain a GED within the first year of supervision.
you shall participate in an approved job skill-training program at the direction of a probation officer within the first 60
days of placement on supervision.

Case: 1:16-cr-00325 Document #: 38 Filed: 01/25/17 Page 5 of 9 PageID #:267

ILND 2458 (Rev. 08/0212016) Judgment in aCriminal Case

DEFENDANT: CLAYTON ANDREW COHN
CASE NUMBER: 16 CR 325
Supervised Release

Sheet 3

tr

@)

X (5)
tr

(6)

tr

O

tr
tr

(8)
(9)

X (10)
X

(

tr

02)

tr

(13)

I

I

)

Judgment- Page 5 of8

from employment, perform at least 20 hours of community service per week alfl}_9=$irection of the U.S. Probation Office
until gainfully employed. The amount of community service shall not exceed '--"ii hours.
you shall not maintain employment where you have access to other individual's personal information, including, but not
limited to, Social Security numbers and credit card numbers (or money) unless approved by a probation olTicer.
you shall not incur new credit charges or open additional lines of credit without the approval of a probation officer unless
you are in compliance with the financial obligations imposed by this judgment.
you shall provide a probation officer with access to any requested financial information necessary to monitor compliance
with conditions of supervised release.
you shall notify the court of any material change in your economic circumstances that might affect your ability to pay
restitution, fines, or special assessments.
you shall provide documentation to the IRS and pay taxes as required by law.
you shall participate in a sex offender treatment program. The specific program and provider will be determined by a
probation officer. You shall comply with all recommended treatment which may include psychological and physiological
testing. You shall maintain use of all prescribed medications.
tr You shall comply with the requirements of the Computer and Internet Monitoring Program as administered by the
United States Probation Office. You shall consent to the installation of computer monitoring software on all
identified computers to which you have access. The software may restrict and/or record any and all activity on the
computer, including the capture of keystrokes, application information, Internet use history, email
correspondence, and chat conversations. A notice will be placed on the computer at the time of installation to
warn others of the existence of the monitoring software. You shall not remove, tamper with, reverse engineer, or
in any way circumvent the software.
tr The cost of the monitoring shall be paid by you at the monthly contractual rate, if you are financially able, subject
to satisfaction of other financial obligations imposed by this judgment.
tr You shall not possess or use any device with access to any online computer service at any location (including
place of employment) without the prior approval of a probation officer. This includes any Internet service
provider, bulletin board system, or any other public or private network or email system.
t] You shall not possess any device that could be used for covert photography without the prior approval ofa
probation officer.
n You shall not view or possess child pornography. If the treatment provider determines that exposure to other
sexually stimulating material may be detrimental to the treatment process, or that additional conditions are likely
to assist the treatment process, such proposed conditions shall be promptly presented to the court, for a
determination, pursuant to 18 U.S.C. $ 3583(eX2), regarding whether to enlarge or otherwise modifu the
conditions of supervision to include conditions consistent with the recommendations of the treatment provider.
t] You shall not, without the approval of a probation officer and treatment provider, engage in activities that will put
you in unsupervised private contact with any person under the age of I 8, or visit locations where children
regularly congregate (e.g., locations specified in the Sex O-fferrder Registration and Notification Act.)
,ifi;iii;,iiiiii[Names]
tr This condition does not apply to your family members:
tr Your employment shall be restricted to the district and division where you reside or are supervised, unless
approval is granted by a probation officer. Prior to accepting any form ofemploymentyou shall seek the approval
ofa probation officer, in order to allow the probation officer the opportunity to assess the level ofrisk to the
community you will pose if employed in a particular capacity. You shall not participate in any volunteer activity
that may cause you to come into direct contact with children except under circumstances approved in advance by
a probation officer and treatment provider.
tr You shall provide the probation officer with copies of your telephone bills, all credit card statements/receipts, and
any other financial information requested.
tr You shall comply with all state and Iocal laws pertaining to convicted sex offenders, including such laws that
impose restrictions beyond those set forth in this order.
you shall pay any financial penalty that is imposed by this judgment that remains unpaid at the commencement of the
term of supervised release. Your monthly payment schedule shall be an amount that is at least $ 1fu or tW, of your
net monthly income, defined as income net of reasonable expenses for basic necessities such as food, shelter, utilities,
insurance, and employment-related expenses.
you shall not enter into any agreement to act as an informer or special agent of a law enforcement agency without the
permission of the court.
which you received during the commission of
you shall repay the United States "buy money" in the amount of $
this offense.
if the probation officer determines that you pose a risk to another person (including an organization or members of the
community), the probation officer may require you to tell the person about the risk, and you must comply with that
instruction. Such notification could include advising the person about your record ofarrests and convictions and
substance use. The probation officer may contact the person and confirm that you have told the person about the risk.

Case: 1:16-cr-00325 Document #: 38 Filed: 01/25/17 Page 6 of 9 PageID #:268
a Criminal Case
Judgment - Page 6 ofS
Release

ILND 2458 (Rev. 08/0212016) Judgment in
iheet 3 - Supervised

DEFENDANT: CLAYTON ANDREW COHN
CASENUMBER: l6CR325

tr

(14)

other:ffiffiffiffi

Case: 1:16-cr-00325 Document #: 38 Filed: 01/25/17 Page 7 of 9 PageID #:269
Case

ILND 2458 (Rev. 08/0212016) Judgment in
Sheet 5 - Criminal Monetary Penalties

a

Criminal

DEFENDANT: CLAYTON ANDREW COHN
CASE NUMBER: l6 CR 325

CRIMINAL MONETARY PENALTIES
The defendant must pay the total criminal monetary penalties under the schedule of payments on Sheet 6.

!

Fine

fne determination of restitution is deferred until

Restitution

$0.00

Assessment
$ r 00.00

Totals

$1,5s6,488.1I

. An Amended Judgment in a Criminql Case (Ao 245c) will be entered after such

determination.

I

fne defendant must make restitution (including community restitution) to the following payees in the amount listed below.
If the defendant makes a partial payment,

each payee shall receive an approximately proportioned payment, unless specified otherwise in

the priority order or percentage payment column below. However, pursuant to 18 U.S.C. S 3664(D, all nonfederal victims must be paid
before the United States is paid.

Total Loss*

Name of Payee

Priority or

Restitution Ordered

Percentase
See

Attached Exhibit

Totals:

x
tr

x

Restitution amount ordered pursuant to plea agreement $ 1,556,488.1 I
The defendant must pay interest on restitution and a fine of more than $2,500, unless the restitution or fine is paid in full before
the fifteenth day after the date of the judgment, pursuant to 18 U.S.C. S 3612(f). All of the payment options on Sheet 6 may be
subject to penalties for delinquency and default, pursuant to l8 U.S.C. $ 3612(g).
The court determined that the defendant does not have the ability to pay interest and it is ordered that:

X
n
tr

$1,556,488.1I

the interest requirement is waived for the restitution amount.
the interest requirement for the

is modified as follows:

The defendant's non-exempt assets, if any, are subject to immediate execution to satisff any outstanding restitution or fine

obligations.

* Findings for the total amount of

losses are required under Chapters 109A,
before April23, 1996.
after September 13, 1994, but

ll0,

110A, and

ll3A

of Title l8 for offenses committed on or

Case: 1:16-cr-00325 Document #: 38 Filed: 01/25/17 Page 8 of 9 PageID #:270

RESTITUTION EXHIBIT
(NAMES AND ADDRESSES OF VICTIMS)

16 CR 32s

USA VS. CLAYTON ANDREW COHN
SEALED

Case: 1:16-cr-00325Case
Document #: 38 Filed: 01/25/17 Page 9 of 9 PageID #:271
a Criminal

ILND 2458 (Rev. 08/0212016) Judgment in
Sheet 6 - Schedule of Paymonts

Judgment

-

Page 8 of 8

DEFENDANT: CLAYTON ANDREW COHN
NUMBER: 16 CR 325

CASE

SCHEDULE OF PAYMENTS
Having assessed the defendant's ability to pay, payment of the total criminal monetary penalties is due as follows:

A

X

Lump sum payment of $1,656,488.1 I due immediately.

tr
X

Btr
Ctr
D

tr

balance due not later

than

balance due in accordance with

, or

E

c,

E

D,

E

Payment to begin immediately (may be combined with

Payment in
commence

E

C,

I r below; or

E

D, or

!

n below); or

of

(e.g., months

oryears),to

over a period of
$
from imprisonment to a term of supervision; or

(e.g., months

oryears),to

(e.g. weekly, monthly, quarterly) installments of
of this judgment; or

Payment in equal

commence

E, or

$

over a period

(e.s., 30 or 60 days) after the date

equal

(e.g. weekly, monthly, quarterly) installments of

(e.5., 30 or 60 days) after release

E

tr

(e.g., 30 or 60 days) after release from imprisonment.
Payment during the term of supervised release will commence
The court will set the payment plan based on an assessment of the defendant's ability to pay at that time; or

F

X

Special instructions regarding the payment of criminal monetary penalties:
The defendant shall pay the restitution imposed by this judgment, and that remains unpaid at the commencement of the term
supervised release, at arate of at least l0 percent of the defendant's monthly income.

within

of

Unless the court has expressly ordered otherwise, if this judgment imposes imprisonment, payment of criminal monetary penalties is due
during imprisonment. AII criminal monetary penalties, except those payments made through the Federal Bureau of Prisons' Inmate Financial
Responsibility Program, are made to the clerk of the court.
The defendant shall receive credit for all payments previously made toward any criminal monetary penalties imposed.

tr
Case

Joint and Several

Number

Total Amount

Defendant and Co-Defendant Names

(including defendant

nu

Joint and Several
Amount

Corresponding Payee,

if

Appropriate

mber)

tr

The defendant shall pay the cost ofprosecution.

tr

The defendant shall pay the following court cost(s):

n

The defendant shall forfeit the defendant's interest in the following property to the United States:

Payments shall be applied in the following order: (l) assessment, (2) restitution principal, (3) restitution interest, (4) fine principal,
(5) fine interest, (6) community restitution, (7) penalties, and (8) costs, including cost of prosecution and court costs.