Securities and Exchange Commission v. Ahmed et al

Filing 68

ORDER: IT IS HEREBY ORDERED that: The SEC's Motion for Entry of Default Judgment 56 is GRANTED, and further directing. LET JUDGMENT BE ENTERED ACCORDINGLY. (Written Opinion) Signed by The Hon. Paul A. Magnuson on 8/30/2018. (LLM)

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MINNESOTA
Securities and Exchange Commission,

Civ. No. 17-1478 (PAM/KMM)

Plaintiff,
v.

ORDER

Mohamud Abdi Ahmed and 2waytrading,
LLC,
Defendants.

This matter is before the Court on Plaintiff Securities and Exchange Commission’s
(“SEC”) Motion for Entry of Default Judgments against Defendants Mohamud Abdi
Ahmed and 2waytrading, LLC. Neither Ahmed nor a representative of 2waytrading has
filed any opposition to the Motion, nor did anyone appear on their behalf at the hearing on
the Motion.
Accordingly, IT IS HEREBY ORDERED that:
1.

The SEC’s Motion for Entry of Default Judgment (Docket No. 56) is
GRANTED;

2.

Ahmed and 2waytrading, including their officers, agents, servants,
employees, attorneys, or anyone in active concert or participation with them
who receive actual notice of this Order pursuant to Fed. R. Civ. P. 65(d)(2),
are permanently ENJOINED from violating 15 U.S.C. § 77q(a);

3.

Ahmed and 2waytrading, including their officers, agents, servants,
employees, attorneys, or anyone in active concert or participation with them
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who receive actual notice of this Order pursuant to Fed. R. Civ. P. 65(d)(2),
are permanently ENJOINED from violating 15 U.S.C. § 78j(b) and Rule
10b-5, 17 C.F.R. § 240.10b-5;
4.

Ahmed and 2waytrading, including their officers, agents, servants,
employees, attorneys, or anyone in active concert or participation with them
who receive actual notice of this Order pursuant to Fed. R. Civ. P. 65(d)(2),
are permanently ENJOINED from violating 15 U.S.C. §§ 80b-6(1) and (2);

5.

Ahmed and 2waytrading, including their officers, agents, servants,
employees, attorneys, or anyone in active concert or participation with them
who receive actual notice of this Order pursuant to Fed. R. Civ. P. 65(d)(2),
are permanently ENJOINED from directly or indirectly taking any action
with respect to any securities brokerage or similar account in which Ahmed
or 2waytrading is not the named owner, including but not limited to, directly
or indirectly: (a) requesting access to or accessing any such accounts, (b)
exercising any investment discretion, as defined 15 U.S.C. §§ 78c(a)(35)(A)
& (B), with respect to any such accounts, (c) requesting to exercise such
investment discretion over any such accounts, (d) withdrawing, removing,
transferring, or otherwise disposing of any funds, securities or other assets
from any such accounts, or (e) requesting or instructing the withdrawal,
removal, transfer, or other disposition of any funds, securities or other assets
from any such accounts;

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6.

Ahmed is liable for disgorgement of $282,593, representing profits gained as
a result of the conduct alleged in the Complaint, plus prejudgment interest
thereon in the amount of $23,634.78.
(a) Ahmed shall satisfy this obligation by paying $306,227.78 to the
Securities and Exchange Commission within 14 days after entry of
this Order. Defendant may transmit payment electronically to the
SEC, which will provide detailed ACH transfer/Fedwire instructions
upon request.
account

via

Payment may also be made directly from a bank
Pay.gov

through

the

SEC

website

at

http://www.sec.gov/about/ offices/ofm.htm. Defendant may also pay
by certified check, bank cashier’s check, or United States postal
money order payable to the Securities and Exchange Commission,
which shall be delivered or mailed to:
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
and shall be accompanied by a letter identifying the case title, civil
action number, and name of this Court; Mohamud Abdi Ahmed as a
defendant in this action; and specifying that payment is made pursuant
to this Order.
(b) Ahmed shall simultaneously transmit photocopies of evidence of
payment and case identifying information to the SEC’s counsel in this
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action. By making this payment, Ahmed relinquishes all legal and
equitable right, title, and interest in such funds and no part of the funds
shall be returned to Ahmed. The SEC shall send the funds paid
pursuant to this Order to the United States Treasury.
(c) The SEC may enforce the Court’s judgment for disgorgement and
prejudgment interest by moving for civil contempt (and/or through
other collection procedures authorized by law) at any time after 14
days following entry of this Order. Ahmed shall pay post judgment
interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.
(d) Defendant’s obligation to pay disgorgement, prejudgment interest, and
any post judgment interest accrued in this case shall be deemed
satisfied by submitting proof of entry of a Civil Asset Forfeiture Order
seizing the residence at 1644 Friesian Street, Shakopee, Minnesota
55379, within one year of the date of entry of this Order, to trial
counsel Lynn M. Dean at:
Securities and Exchange Commission
444 South Flower, 9th floor
Los Angeles, CA 90017
accompanied by a letter identifying the case title, civil action number,
and name of this Court; Mohamud Abdi Ahmed as a defendant in this
action; and specifying that the Order is being submitted in lieu of
payment pursuant to this Order;

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7.

Ahmed is liable for a civil penalty of $184,767, pursuant to 15 U.S.C.
§§ 77t(d), 78u(d)(3), and 80b-9(e). The payment instructions set forth in
number 6 above govern the payment of this penalty as well;

8.

Within 3 days after being served with a copy of this Order, PayPal shall
transfer the entire balance of the following account(s) which were frozen
pursuant to an Order of this Court to the Commission:

INSTITUTION
PayPal

ACCOUNT NAME/OWNER

ACCOUNT NO.

2waytrading LLC (or “2-way trading
LLC”)

xxxxxxxxxxxxxxx38539

PayPal may transmit payment electronically to the Commission, which will
provide detailed ACH transfer/Fedwire instructions upon request. Payment
may also be made directly from a bank account via Pay.gov through the SEC
website at http://www.sec.gov/about/offices/ofm.htm. PayPal also may
transfer these funds by certified check, bank cashier’s check, or United
States postal money order payable to the Securities and Exchange
Commission, which shall be delivered or mailed to
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
and shall be accompanied by a letter identifying the case title, civil action
number, and name of this Court; and specifying that payment is made
pursuant to this Order;

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9.

Within 3 days after being served with a copy of this Order, Wells Fargo
Bank, N.A. (“Wells Fargo”) shall transfer the entire balance of the following
account(s) which were frozen pursuant to an Order of this Court to the
Commission:

INSTITUTION

ACCOUNT NAME/OWNER

Wells Fargo Bank NA

2waytrading, LLC

Wells Fargo Bank NA

2waytrading, LLC

Wells Fargo Bank NA

2waytrading, LLC

Wells Fargo Bank NA

2waytrading, LLC

Wells Fargo Bank NA

2waytrading, LLC

ACCOUNT NO.
xxxxxx2363
xxxxxx2355
xxxxxx5634
xxxxxx3719
xxxxxx6927

The payment instructions set forth in number 8 above with respect to PayPal
shall govern this transfer as well;
10.

Within 3 days after being served with a copy of this Order, TD Ameritrade
(“Ameritrade”) shall transfer the entire balance of the following account(s)
which were frozen pursuant to an Order of this Court to the Commission:

INSTITUTION
TD Ameritrade
TD Ameritrade
TD Ameritrade

ACCOUNT NAME/OWNER
2WAYTRADING, LLC
2WAYTRADING, LLC
2WAYTRADING, LLC

ACCOUNT NO.
xxxxx6866
xxx-xx6622
xxx-xx-1647

The payment instructions set forth in number 8 above with respect to
PayPal shall govern this transfer as well; and

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11.

Solely for purposes of exceptions to discharge in 11 U.S.C. § 523, the
allegations in the complaint are true and admitted by Ahmed, and further,
any debt for disgorgement, prejudgment interest, civil penalty or other
amounts due by Ahmed under this Order or any other judgment, order,
consent order, decree or settlement agreement entered in connection with this
proceeding, is a debt for the violation by Ahmed of the federal securities laws
or any regulation or order issued under such laws, as set forth in 11 U.S.C.
§ 523(a)(19).

LET JUDGMENT BE ENTERED ACCORDINGLY.

Dated: August 30, 2018

s/ Paul A. Magnuson
Paul A. Magnuson
United States District Court Judge

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