Securities and Exchange Commission v. Berger et al

Filing 45

JUDGMENT in favor of Plaintiff Securities and Exchange Commission against Defendant Global Peopleline Telecom, Inc. Judgment in the amount of $ $650,000. Signed by District Judge Robert H. Cleland. (LWag)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
________________________________________________
:
SECURITIES AND EXCHANGE COMMISSION,
:
:
Plaintiff,
:
:
v.
: 11-cv-10403
: Hon. Robert H. Cleland
GREGG M.S. BERGER, et al.,
: Mag. Judge Paul J. Komives
:
Defendants.
:
________________________________________________:

FINAL JUDGMENT AS TO DEFENDANT GLOBAL PEOPLELINE TELECOM, INC.
Plaintiff Securities and Exchange Commission ("Commission"), having moved for
judgment by default and for the entry of an order of permanent injunction and other relief against
defendant Global Peopleline Telecom, Inc. (“Global Peopleline”); and
It further appearing that there is no just reason for delay and that there is sufficient basis
herein for the entry of this Final Judgment and Order;
IT IS HEREBY ORDERED THAT:
I.
The Commission’s motion is hereby GRANTED, and judgment by default is hereby
entered against Global Peopleline.
II.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and
Defendant's agents, servants, employees, attorneys, and all persons in active concert or
participation with them who receive actual notice of this Final Judgment by personal service or
otherwise are permanently restrained and enjoined from violating, directly or indirectly, Section

10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and
Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or
instrumentality of interstate commerce, or of the mails, or of any facility of any national
securities exchange, in connection with the purchase or sale of any security:
(a)

to employ any device, scheme, or artifice to defraud;

(b)

to make any untrue statement of a material fact or to omit to state a material fact
necessary in order to make the statements made, in the light of the circumstances
under which they were made, not misleading; or

(c)

to engage in any act, practice, or course of business which operates or would
operate as a fraud or deceit upon any person.
III.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
and Defendant's agents, servants, employees, attorneys, and all persons in active concert or
participation with them who receive actual notice of this Final Judgment by personal service or
otherwise are permanently restrained and enjoined from violating Section 17(a) of the Securities
Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the
use of any means or instruments of transportation or communication in interstate commerce or
by use of the mails, directly or indirectly:
(a)

to employ any device, scheme, or artifice to defraud;

(b)

to obtain money or property by means of 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;
or

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(c)

to engage in any transaction, practice, or course of business which operates or
would operate as a fraud or deceit upon the purchaser.
IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
and Defendant's agents, servants, employees, attorneys, and all persons in active concert or
participation with them who receive actual notice of this Final Judgment by personal service or
otherwise are permanently restrained and enjoined from violating Sections 5(a) and 5(c) of the
Securities Act [15 U.S.C. §§ 77e(a) and 77e(c)] by, directly or indirectly, in the absence of any
applicable exemption:
(a)

Unless a registration statement is in effect as to a security, making use of any
means or instruments of transportation or communication in interstate commerce
or of the mails to sell such security through the use or medium of any prospectus
or otherwise;

(b)

Unless a registration statement is in effect as to a security, carrying or causing to
be carried through the mails or in interstate commerce, by any means or
instruments of transportation, any such security for the purpose of sale or for
delivery after sale; or

(c)

Making use of any means or instruments of transportation or communication in
interstate commerce or of the mails to offer to sell or offer to buy through the use
or medium of any prospectus or otherwise any security, unless a registration
statement has been filed with the Commission as to such security, or while the
registration statement is the subject of a refusal order or stop order or (prior to the
effective date of the registration statement) any public proceeding or examination

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under Section 8 of the Securities Act [15 U.S.C. § 77h].
V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
and Defendant’s agents, servants, employees, attorneys, and all persons in active concert or
participation with them who receive actual notice of this Final Judgment by personal service or
otherwise are permanently restrained and enjoined from violating Section 13(a) of the Exchange
Act [15 U.S.C. § 78m(a)] and Rules 12b-20 and 13a-1thereunder [17 C.F.R. §§ 240.12b-20, and
240.13a-1] by, directly or indirectly, in a report filed with the Commission making or causing to
be made a materially false or misleading statements; or omitting to state, or causing another
person to omit to state, any material fact necessary in order to make statements made, in light of
the circumstances under which such statements were made, not misleading.
VI.
Defendant shall pay a civil penalty in the amount of $650,000 pursuant to Sections 20(d)
of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C.
§ 78u(d)(3)]. Defendant shall make this payment upon the entry of this Final Judgment by
certified check, bank cashier's check, or United States postal money order payable to the
Securities and Exchange Commission. The payment shall be delivered or mailed to the Office of
Financial Management, Securities and Exchange Commission, 100 F Street, NE, Stop 6042,
Washington DC 20549, and shall be accompanied by a letter identifying Global Peopleline as a
defendant in this action; setting forth the title and civil action number of this action and the name
of this Court; and specifying that payment is made pursuant to this Final Judgment. Defendant
shall simultaneously transmit photocopies of such payment and letter to Elaine C. Greenberg,
Associate Regional Director, Securities and Exchange Commission, Philadelphia Regional
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Office, 701 Market Street, Suite 2000, Philadelphia, PA 19106. Defendant shall pay postjudgment interest on any delinquent amounts pursuant to 28 USC § 1961. The Commission shall
remit the funds paid pursuant to this paragraph to the United States Treasury.
VII.

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

s/Robert H. Cleland
ROBERT H. CLELAND
UNITED STATES DISTRICT JUDGE
Dated: March 12, 2012
I hereby certify that a copy of the foregoing document was mailed to counsel of record
on this date, March 12, 2012, by electronic and/or ordinary mail.

s/Lisa Wagner
Case Manager and Deputy Clerk
[phone]

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