Securities and Exchange Commission VS Global Express Capital Real Estate Investment Fund I, LLC et al
Filing
1095
JUDGMENT in favor of Securities & Exchange Commission against Dawn M. Reese (See Order for Details). Signed by Judge Kent J. Dawson on 2/13/2017. (Copies have been distributed pursuant to the NEF - JM)
Case 2:03-cv-01514-KJD-LRL Document 1093-1 Filed 12/05/16 Page 1 of 7
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DAVID J. VAN HAVERMAAT (Cal. Bar No. 175761)
Email: vanhavermaatd@sec.gov
Attorneys for Plaintiff
Securities and Exchange Commission
Michele Wein Layne, Regional Director
John W. Berry, Associate Regional Director
444 S. Flower Street, Suite 900
Los Angeles, California 90071
Telephone: (323) 965-3998
Facsimile: (213) 443-1904
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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SECURITIES AND EXCHANGE
COMMISSION,
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Plaintiff,
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vs.
GLOBAL EXPRESS CAPITAL REAL
ESTATE INVESTMENT FUND I, LLC;
GLOBAL EXPRESS CAPITAL
MORTGAGE CORP.; GLOBAL
EXPRESS SECURITIES, INC.;
CONNIE S. FARRIS; and DAWN M.
REESE,
Defendants.
Case No. CV-S-03-1514-KJD-(LRL)
[PROPOSED] FINAL JUDGMENT
AS TO DEFENDANT DAWN M.
REESE
Case 2:03-cv-01514-KJD-LRL Document 1093-1 Filed 12/05/16 Page 2 of 7
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Plaintiff Securities and Exchange Commission (“SEC” or “Commission”)
having filed a Complaint and Defendant Dawn M. Reese (“Defendant”) 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 Final Judgment;
waived findings of fact and conclusions of law; and waived any right to appeal
from this Final Judgment:
I.
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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant
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is permanently restrained and enjoined from violating, directly or indirectly,
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Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C.
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§ 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by
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using any means or instrumentality of interstate commerce, or of the mails, or of
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any facility of any national securities exchange, in connection with the purchase or
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sale of any security:
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(a)
to employ any device, scheme, or artifice to defraud;
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(b)
to make any untrue statement of a material fact or to omit to state a
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material fact necessary in order to make the statements made, in the light of the
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circumstances under which they were made, not misleading; or
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(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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
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that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing
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paragraph also binds the following who receive actual notice of this Final
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Judgment by personal service or otherwise: (a) Defendant’s officers, agents,
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Case 2:03-cv-01514-KJD-LRL Document 1093-1 Filed 12/05/16 Page 3 of 7
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servants, employees, and attorneys; and (b) other persons in active concert or
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participation with Defendant or with anyone described in (a).
II.
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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
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that Defendant is permanently restrained and enjoined from violating Section 17(a)
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of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)] in the offer or
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sale of any security by the use of any means or instruments of transportation or
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communication in interstate commerce or by use of the mails, directly or
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indirectly:
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(a)
to employ any device, scheme, or artifice to defraud;
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(b)
to obtain money or property by means of any untrue statement of a
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material fact or any omission of a material fact necessary in order to make the
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statements made, in light of the circumstances under which they were made, not
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misleading; or
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(c)
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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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
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that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing
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paragraph also binds the following who receive actual notice of this Final
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Judgment by personal service or otherwise: (a) Defendant’s officers, agents,
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servants, employees, and attorneys; and (b) other persons in active concert or
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participation with Defendant or with anyone described in (a).
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III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
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that Defendant is liable for disgorgement of $23,232,411, representing profits
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gained as a result of the conduct alleged in the Complaint, together with
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Case 2:03-cv-01514-KJD-LRL Document 1093-1 Filed 12/05/16 Page 4 of 7
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prejudgment interest thereon. Based on Defendant’s sworn representations in her
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Statement of Financial Condition dated May 10, 2016, and other documents and
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information submitted to the SEC, however, the Court is not ordering Defendant to
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pay a civil penalty and payment of the disgorgement and pre-judgment interest
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thereon is waived. The determination not to impose a civil penalty and to waive
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payment of the disgorgement and pre-judgment interest is contingent upon the
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accuracy and completeness of Defendant’s Statement of Financial Condition. If at
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any time following the entry of this Final Judgment the SEC obtains information
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indicating that Defendant’s representations to the SEC concerning her assets,
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income, liabilities, or net worth were fraudulent, misleading, inaccurate, or
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incomplete in any material respect as of the time such representations were made,
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the SEC may, at its sole discretion and without prior notice to Defendant, petition
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the Court for an order requiring Defendant to pay the unpaid portion of the
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disgorgement, pre-judgment and post-judgment interest thereon, and the maximum
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civil penalty allowable under the law. In connection with any such petition, the
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only issue shall be whether the financial information provided by Defendant was
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fraudulent, misleading, inaccurate, or incomplete in any material respect as of the
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time such representations were made. In its petition, the SEC may move this Court
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to consider all available remedies, including, but not limited to, ordering Defendant
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to pay funds or assets, directing the forfeiture of any assets, or sanctions for
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contempt of this Final Judgment. The SEC may also request additional discovery.
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Defendant may not, by way of defense to such petition: (1) challenge the validity
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of the Consent or this Final Judgment; (2) contest the allegations in the Complaint
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filed by the SEC; (3) assert that payment of disgorgement, pre-judgment and post-
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judgment interest or a civil penalty should not be ordered; (4) contest the amount
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of disgorgement and pre-judgment and post-judgment interest; (5) contest the
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Case 2:03-cv-01514-KJD-LRL Document 1093-1 Filed 12/05/16 Page 5 of 7
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imposition of the maximum civil penalty allowable under the law; or (6) assert any
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defense to liability or remedy, including, but not limited to, any statute of
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limitations defense. Defendant shall also pay post-judgment interest on any
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delinquent amounts pursuant to 28 U.S.C. § 1961.
VI.
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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
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that the Consent of Defendant Dawn M. Reese to Entry of Final Judgment is
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incorporated herein with the same force and effect as if fully set forth herein, and
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that Defendant shall comply with all of the undertakings and agreements set forth
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therein.
VII.
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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
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that this Court shall retain jurisdiction of this matter for the purposes of enforcing
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the terms of this Final Judgment.
VIII.
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There being no just reason for delay, pursuant to Rule 54(b) of the Federal
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Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment
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forthwith and without further notice.
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Dated: ______________, _____
February 13, 2017
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HONORABLE KENT J. DAWSON
UNITED STATES DISTRICT JUDGE
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