Securities and Exchange Commission v. Dunn et al

Filing 94

FINAL JUDGMENT in favor of Securities and Exchange Commission against Nicholas P Howey. Nicholas P Howey terminated. See Judgment for details. Signed by Judge James C. Mahan on 5/31/12. (Copies have been distributed pursuant to the NEF - ECS)

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NANCY J. GEGENHEIMER
DUGAN BLISS
U.S. SECURITIES AND EXCHANGE COMMISSION
Denver Regional Office
1801 California Street Suite 1500
Denver, CO 80202
[phone]
E-mail: [e-mail]
E-mail: [e-mail]

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UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,

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Case No.
2:09-cv-02213-JCM-LRL

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R. BROOKE DUNN
and NICHOLAS P. HOWEY,

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Defendants.

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FINAL JUDGMENT AS TO DEFENDANT NICHOLAS P. HOWEY
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The Securities and Exchange Commission having filed a Complaint and Defendant

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Nicholas P. Howey having entered a general appearance; consented to the Court’s jurisdiction
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over Defendant and the subject matter of this action; consented to entry of this Final Judgment

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without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived

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findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment:

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Case 2:09-cv-02213-JCM -VCF Document 89-1

Filed 05/24/12 Page 3 of 5

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I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and

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Defendant's agents, servants, employees, attorneys, and all persons in active concert or

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participation with them who receive actual notice of this Final Judgment by personal service or

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otherwise are permanently restrained and enjoined from violating, directly or indirectly, Section

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10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and
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Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or

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instrumentality of interstate commerce, or of the mails, or of any facility of any national

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securities exchange, in connection with the purchase or sale of any security:

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(a)

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

(b)

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to make any untrue statement of a material fact or to omit to state a material fact

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necessary in order to make the statements made, in the light of the circumstances
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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

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operate as a fraud or deceit upon any person.
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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

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and Defendant's agents, servants, employees, attorneys, and all persons in active concert or

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participation with them who receive actual notice of this Final Judgment by personal service or

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otherwise are permanently restrained and enjoined from violating Section 17(a) of the Securities

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Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the

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Case 2:09-cv-02213-JCM -VCF Document 89-1

Filed 05/24/12 Page 4 of 5

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use of any means or instruments of transportation or communication in interstate commerce or

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by use of the mails, directly or indirectly:

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(a)

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

(b)

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to obtain money or property by means of any untrue statement of a material fact

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or any omission of a material fact necessary in order to make the statements

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made, in light of the circumstances under which they were made, not misleading;

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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.

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III.
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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable

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for disgorgement of $181,594, representing profits gained and losses avoided as a result of the

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conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of
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$30,403, and a civil penalty in the amount of $181,594, pursuant to Section 21A of the Exchange

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Act [15 U.S.C. §78u-1]. Defendant shall satisfy this obligation by paying $393,591 in three

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equal installments, with the first installment due within two weeks after entry of this Final

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Judgment, the second installment due within six months after entry of this Final Judgment, and

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the third installment due within one year after entry of this Final Judgment. Each installment

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shall be by certified check, bank cashier's check, or United States postal money order payable to

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the Securities and Exchange Commission, and delivered or mailed to the Office of Financial

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Management, Securities and Exchange Commission, 100 F Street, NE, Stop 6042, Washington,

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DC 20549. Each installment shall be accompanied by a letter identifying Nicholas P. Howey as

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a defendant in this action; setting forth the title and civil action number of this action and the

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name of this Court; and specifying that payment is made pursuant to this Final Judgment.

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Defendant shall pay post-judgment interest on any delinquent amounts pursuant to 28 USC
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§ 1961. The Commission shall remit the funds paid pursuant to this paragraph to the United
States Treasury.

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

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V.

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There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil
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Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.

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May 31
Dated: ______________, 2012

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____________________________________

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UNITED STATES DISTRICT JUDGE

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