United States Securities and Exchange Commission

Filing 306

FINAL JUDGMENT as to Defendant Patricia Enright Gray. Signed by District Judge Matthew F. Leitman. (HRya)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
UNITED STATES SECURITIES AND
EXCHANGE COMMISSION,
Plaintiff,

Case No. 17-cv-10963
Hon. Matthew F. Leitman

v.
TREASURE ENTERPRISE LLC,
PATRICIA ENRIGHT GRAY and
LARRY ALLEN HOLLEY,
Defendants,
And
KINGDOM ASSET MANAGEMENT LLC
and CARLEEN RENEE HOLLY,
Relief Defendants
__________________________________________________________________/
FINAL JUDGMENT AS TO DEFENDANT PATRICIA ENRIGHT GRAY
The Securities and Exchange Commission having filed a Complaint and
Defendant Patricia Enright Gray (“Defendant”) having entered a general
appearance; consented to the Court’s jurisdiction over Defendant and the subject
matter of this action; consented to the injunctive relief set forth in Sections I through
III hereto; waived findings of fact and conclusions of law; and waived any right to
appeal from this Final Judgment:

1

I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant
is 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.
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 Final 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).
2

II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is 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
(c)

to engage in any transaction, practice, or course of business which

operates or would operate as a fraud or deceit upon the purchaser.
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 Final 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).

3

III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is permanently restrained and enjoined from violating Section 5 of the
Securities Act [15 U.S.C. § 77e] 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
4

under Section 8 of the Securities Act [15 U.S.C. § 77h].
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 Final 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).
IV.
It is hereby further ordered, adjudged, and decreed that Defendant is liable for
disgorgement of $100,162 and prejudgment interest of $16,899, representing illgotten gains resulting from the conduct alleged in the amended complaint, which
shall be deemed satisfied by the restitution ordered against Gray in the criminal case,
United States v. Patricia E. Gray, No. 18-cr-20224(2) (E.D. Mich.).
V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that civil
penalties are not being imposed against Defendant in light of Defendant’s conviction
and imprisonment in United States v. Patricia E. Gray, No. 18-cr-20224(2) (E.D.
Mich.).

5

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 Final 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 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 herein.

6

VIII.
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
Final Judgment.

KINIKIA ESSIX
CLERK OF COURT
By:
Approved:
s/Matthew F. Leitman
MATTHEW F. LEITMAN
United States District Judge
Dated: February 5, 2024
Detroit, Michigan

7

s/Holly A. Ryan
Deputy Clerk