US Securities and Exchange Commission v. Wallin

Filing 6

MOTION by Plaintiff US Securities and Exchange Commission for judgment (Attachments: # 1 Exhibit 1 (Consent), # 2 Exhibit 2 (Judgment))(Qualls, Alyssa)

EXHIBIT 2

UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

UNITED STATES SECURITIES AND
EXCHANGE COMMISSION,
Plaintiff,
v.
JOHN F. WALLIN,
Defendant.

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Civil Action No.
JURY TRIAL DEMANDED

JUDGMENT AS TO DEFENDANT JOHN F. WALLIN
The Securities and Exchange Commission having filed a Complaint and Defendant John
F. Wallin having entered a general appearance; consented to the Court’s jurisdiction over
Defendant and the subject matter of this action; consented to entry of this Judgment without
admitting or denying the allegations of the Complaint (except as to jurisdiction and except as
otherwise provided herein in Paragraph VI); waived findings of fact and conclusions of law; and
waived any right to appeal from this Judgment:

I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
permanently restrained and enjoined from violating Rule 13a-14 [17 C.F.R. 240.13a-14],
promulgated under Section 13(a) of the Securities Exchange Act of 1934 (“Exchange Act”) [15
U.S.C. § 78m(a)], by signing any certification containing any untrue statement, which is filed as
an exhibit to any report filed with the Commission on Form 10-Q, Form 10-K, Form 20-F or
Form 40-F under Section 13(a) of the Exchange Act.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Judgment by personal service or otherwise: (a) Defendant’s officers,
agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).

II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently restrained and enjoined from aiding and abetting any violation of Section 13(a) of
the Exchange Act [15 U.S.C. § 78m(a)], and Rules 13a-1 and 13a-13 promulgated thereunder
[17 C.F.R. 240.13a-1 & 17 C.F.R. 240.13a-13], by knowingly or recklessly providing substantial
assistance to an issuer that is required to file, in accordance with such rules and regulations as the
Commission may prescribe as necessary or appropriate for the proper protection of investors and
to insure fair dealing in the security –
(1) such information and documents (and such copies thereof) as the Commission shall
require to keep reasonably current the information and documents required to be
included in or filed with an application or registration statement filed pursuant to
Section 12 of the Exchange Act [15 U.S.C. § 78l], except that the Commission may
not require the filing of any material contract wholly executed before July 1, 1962; or
(2) such annual reports (and such copies thereof), certified if required by the rules and
regulations of the Commission by independent public accountants, and such quarterly
reports (and such copies thereof), as the Commission may prescribe;

where any such information, document, or report contains 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.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Judgment by personal service or otherwise: (a) Defendant’s officers,
agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).

III.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section
21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], it is appropriate, and necessary for the
benefit of investors, that Defendant is prohibited from acting as an officer or director of any
issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act [15
U.S.C. § 78l] or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15
U.S.C. § 78o(d)].

IV.
Upon motion of the Commission, the Court shall determine whether it is appropriate to
order a civil penalty pursuant to Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]
and, if so, the amount of the civil penalty. In connection with the Commission’s motion for civil
penalties, and at any hearing held on such a motion: (a) Defendant will be precluded from
arguing that he did not violate the federal securities laws as alleged in the Complaint; (b)
Defendant may not challenge the validity of the Consent or this Judgment; (c) solely for the

purposes of such motion, the allegations of the Complaint shall be accepted as and deemed true
by the Court; and (d) the Court may determine the issues raised in the motion on the basis of
affidavits, declarations, excerpts of sworn deposition or investigative testimony, and
documentary evidence, without regard to the standards for summary judgment contained in Rule
56(c) of the Federal Rules of Civil Procedure. In connection with the Commission’s motion for
civil penalties, the parties may take discovery, including discovery from appropriate non-parties.

V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is
incorporated herein with the same force and effect as if fully set forth herein, and that Defendant
shall comply with all of the undertakings and agreements set forth therein.

VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of
exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the
allegations in the complaint are true and admitted by Defendant, and further, any debt for
disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this
Judgment or any other judgment, order, consent order, decree or settlement agreement entered in
connection with this proceeding, is a debt for the violation by Defendant of the federal securities
laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the
Bankruptcy Code, 11 U.S.C. §523(a)(19).

VII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Judgment.

Dated: ______________, _____
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UNITED STATES DISTRICT JUDGE