U.S. Securities and Exchange Commission v. Okhotnikov et al

Filing 62

MOTION by Plaintiff U.S. Securities and Exchange Commission for judgment by Consent as to Defendant Carlos L. Martinez (Attachments: # 1 Consent of Defendant Carlos L. Martinez)(Costello, Patrick)

Case: 1:22-cv-03978 Document #: 62 Filed: 11/21/22 Page 1 of 7 PageID #:338

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
)
)
)
Plaintiff,
)
)
v.
)
)
VLADIMIR OKHOTNIKOV,
)
JANE DOE a/k/a LOLA FERRARI,
)
MIKAIL SERGEEV,
)
SERGEY MASLAKOV,
)
SAMUEL D. ELLIS,
)
MARK F. HAMLIN,
)
SARAH L. THEISSEN,
)
CARLOS L. MARTINEZ,
)
RONALD R. DEERING,
)
CHERI BETH BOWEN, and
)
ALISHA R. SHEPPERD,
)
)
Defendants.
__________________________________________ )
SECURITIES AND EXCHANGE COMMISSION

Case No. 22 C 3978
Judge Jorge L. Alonso

PLAINTIFF’S AGREED MOTION FOR ENTRY OF
PARTIAL JUDGMENT BY CONSENT AS TO DEFENDANT CARLOS L. MARTINEZ
Plaintiff Securities and Exchange Commission respectfully moves the Court for entry of
Partial Judgment by Consent as to Defendant Carlos L. Martinez (“Martinez”).
In support of this motion, the SEC shows the Court as follows:
1.

The SEC filed its Complaint in this matter on August 1, 2022 (Dkt# 1) alleging,

among other things, violations of the registration and antifraud provisions of the federal
securities laws – specifically, Sections 5 and 17(a) of the Securities Act of 1933, 15 U.S.C. §§
77e, 77q(a); and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, 15
U.S.C. § 78j(b), 17 C.F.R. § 240.10b-5.

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2.

The SEC filed prior Agreed Motions on August 2, 2022 (Dkt# 5), August 10,

2022 (Dkt# 17), and September 1, 2022 (Dkt# 29), seeking entry by consent of a final judgment
as to Defendant Samuel D. Ellis (“Ellis”), and partial judgments by consent as to Defendants
Sarah L. Theissen (“Theissen”), Mark F. Hamlin (“Hamlin”), and Cheri Beth Bowen (“Bowen”).
By Minute Entries on August 4, 2022 (Dkt# 8), August 25, 2022 (Dkt# 24), and September 2,
2022 (Dkt# 31), the Court granted the prior Agreed Motions, and subsequently, on August 8,
2022, August 25, 2022, and September 2, 2022, the Court entered final judgment against Ellis
(Dkt# 16), and partial judgments against Theissen (Dkt# 15), Hamlin (Dkt# 25), and Bowen
(Dkt# 33).
3.

As with Theissen, Hamlin, and Bowen, Martinez also has agreed to a partial

settlement of the SEC’s claims. Attached as Exhibit 1 is his signed consent to the proposed
partial judgment. This judgment obviates the need to litigate substantive liability on the part of
Martinez, and permanently enjoins him from violating the federal securities laws at issue in the
Complaint as well as from engaging in certain other activity. The proposed judgment further
provides that monetary relief sought by the SEC – in the form of disgorgement, prejudgment
interest, and a civil penalty – shall be determined by the Court at a later date on the SEC’s
motion.
4.

District courts routinely have entered judgments based on this type of

“bifurcated” settlement in SEC enforcement actions, and have adopted the procedures described
in the attached consent for the monetary relief portion of the proceedings. See, e.g., SEC v.
Daubenspeck, 469 F. Supp. 3d 859, 860 (N.D. Ill. 2020); SEC v. Zenergy Int’l, Inc., No. 135511, 2016 U.S. Dist. LEXIS 127630, at *2-4 (N.D. Ill. Sept. 20, 2016); SEC v. Integrity Fin.
AZ, LLC, No. 10-782, 2012 U.S. Dist. LEXIS 6758, at *3-4 (N.D. Ohio Jan. 20, 2012).

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5.

In the attached consent, Martinez has agreed the SEC “may present the [proposed

judgment] to the Court for signature and entry without further notice.” (See Ex. 1, at ¶ 15.)
Under Fed. R. Civ. P. 54(b), there is no just reason to delay entry of the proposed judgment, and
the SEC submits entry of the judgment will conserve judicial resources and streamline the issues
in this litigation. In addition, there is little risk of a piecemeal appeal, as Martinez has waived
his right to appeal from the judgment. (See Ex. 1, at ¶ 7.)
6.

This case will proceed in full as to the remaining Defendants – Vladimir

Okhotnikov; Mikail Sergeev; and Ronald R. Deering – and is not affected by entry of the
proposed judgment.1
7.

Pursuant to the Court’s Individual Practices, the proposed judgment in Word

format is being emailed separately to Chambers.
WHEREFORE, for the reasons cited above, the SEC respectfully requests the Court grant
this motion and enter the proposed judgment.

DATED: November 21, 2022

Respectfully submitted,
SECURITIES AND EXCHANGE COMMISSION
By:

/s/ Patrick R. Costello
Timothy S. Leiman ([e-mail]) (IL #6270153)
Chicago Regional Office
175 W. Jackson Blvd., Suite 1450
Chicago, IL 60604
Telephone: [phone]

1

Defendants Jane Doe a/k/a Lola Ferrari and Sergey Maslakov are in default, and the
Court will hear the SEC’s pending motion for default judgment (Dkt# 49) on November 29,
2022. See Dkt# 53. In addition, Defendant Alisha R. Shepperd has agreed to a partial settlement
of the SEC’s claims, and the SEC will file her consent along with a motion for entry of partial
judgment.
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Patrick R. Costello ([e-mail]) (FL #75034)
Christopher J. Carney ([e-mail]) (DC #472294)
Washington, DC Office
100 F Street NE
Washington, DC 20549-5949
Telephone: [phone]
Admitted Pro Hac Vice
Attorneys for Plaintiff

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CERTIFICATE OF SERVICE
I certify that on November 21, 2022, I caused to be served the foregoing PLAINTIFF’S
AGREED MOTION FOR ENTRY OF PARTIAL JUDGMENT BY CONSENT AS TO
DEFENDANT CARLOS L. MARTINEZ on Defendants at the addresses and by the means set
forth on the attached Service List.

/s/ Patrick R. Costello
Patrick R. Costello

Case: 1:22-cv-03978 Document #: 62 Filed: 11/21/22 Page 6 of 7 PageID #:343

Service List
Vladimir Okhotnikov
c/o James G. Lundy
Foley & Lardner LLP
321 North Clark Street, Suite 3000
Chicago, IL 60654
[e-mail]

By CM/ECF

Mark F. Hamlin
c/o Ryan Willis, Christian Dysart, James Kurosad
Dysart Willis
530 Hillsborough Street, Suite 200
Raleigh, NC 27603
[e-mail]
[e-mail]
[e-mail]

By electronic mail

Sarah L. Theissen
c/o Gregg N. Sofer and Patrick Coffey
Husch Blackwell LLP
111 Congress Avenue, Suite 1400
Austin, TX 78701-4093
[e-mail]
[e-mail]

By CM/ECF

Carlos L. Martinez
c/o Bruce Lewitas
Lewitas Hyman
161 N. Clark St., Suite 1600
Chicago, IL 60601
[e-mail]

By electronic mail

Ronald R. Deering
c/o Peter King and Cindy Innocent
Guerra King P.A.
The Towers at Westshore
1408 N. Westshore Blvd., Suite 1010
Tampa, FL 33607
[e-mail]
[e-mail]

By CM/ECF

David A. Baugh
O’Hagan Meyer, LLC
One E. Wacker Drive, Suite 3400
Chicago, IL 60601
[e-mail]

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Cheri Beth Bowen
c/o Celiza (Lisa) Bragança
Bragança Law LLC
5250 Old Orchard Road, Suite 300
Skokie, IL 60077
[e-mail]

By electronic mail

Alisha R. Shepperd
c/o Matthew Mueller
Fogarty Mueller Harris, PLLC
100 E Madison St., Suite 202
Tampa, FL 33602-4703
[e-mail]

By electronic mail

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