Securities and Exchange Commission v. Galleon Management, LP et al

Filing 255

FINAL JUDGMENT AS TO DEFENDANT ZVI GOFFER #11,2335 in favor of Securities and Exchange Commission against Zvi Goffer in the amount of $ 325,273.89. (Signed by Judge Jed S. Rakoff on 12/4/11) (Attachments: # 1 Notice of Right to Appeal)(dt)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

SECUIUTIES AND EXCHANGE COMMISSION,
Plaintiff,

-agalnstGALLEON MANAGEMENT, LP,
RAJ RAJARATNAM,
RAJIVGOEL,
ANILKUMAR,
DANIELLE CHIESI,
MARK KURLAND,
ROBERT MOFFAT,
NEW CASTLE FUNDS LLC,
ROOMY KHAN,
DEEP SHAH,
ALIHARIRl,
ZVIGOFFER,
DAVID PLATE,
GAUTHAM SHANKAR,
SCHOTTENFELD GROUP LLC,
STEVEN FORTUNA,
and
S2 CAPITAL MANAGEMENT, LP,

09 Clv. 8811 (JSR)
ECFCASE

Defendants.

FINAL JUDGMENT AS TO DEFEl'I1>ANT ZVI GOFFER

The Securities and Exchange Commission having filed a Second Amended Complaint
("Complaint") and Defendant Zvi Goffer ("Defendant") having entered a general appearance;
consented to the Court's jurisd ietion over Defendant and the subject matter ofthis action;
consented to entry of this Final Judgment; waived findings offaet and conclusions of law; and
waived any right to appeal from this Final Judgment:

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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 ofthis 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. § 240.1 Ob-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 purcha.se 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 ofthe 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.

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II.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable
for disgorgement of $265,709.33, representing profits salned as a result of the conduct alleged in
the Complaint, plus prejudgment interest thereon in the amount of$59,564.56, for a total of
$325,273.89. Defendant's payment of disgorgement and prejudgment interest shall be deemed
satisfied by the forfeiture ordered by the Court in the criminal case before the United States
District Court ofthe Southern District of New York titled, United States v. Zvi Goffer. IO-CR­
00056 (the "Parallel Criminal Action"). No civil penalty is being imposed in light of the
Judgment entered against Defendant on September 21 J 2011, in the Parallel Criminal Action,
pursuant to which Defendant was sentenced to a term of imprisonment often (10) years and
ordered to pay an assessment of $1 ,400 and forfeiture of $10,022,931.
III.

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

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

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

SECURITms AND EXCHANGE COMMISSION,
Plaintiff,

GALLEON MANAGEMENT, LP,
RAJ RAJARATNAM,
RAJIVGOEL,

ANILKUMAR,

09 Civ. 8811 (JSR)

DANIELLE CRIESI,
MARK KURLAND,
ROBERT MOFFAT,
NEW CASTLE FUNDS LLC,
ROOMY KHAN,
DEEP SHAH,
ALIHARIRI,
ZVIGOFFER,
DAVID PLATE,
GAUTHAM SHANKAR,
SCHOTTENFELD GROUP LLC,
STEVEN FORTUNA,
and
S2 CAPITAL MANAGEMENT, LP,

ECFCASE

Defendants.

CONSENT OF DEFENDANT ZVI GOFFER
1.

Defendant Zvi Goffer ("Defendant") acknowledges ha.vlng been served with the

Second Amended Complaint ("Complaint") in this action, and previously having entered a
general appearance, and admits the Court's Jurisdiction over Defendant and over the subject
matter of this action.

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2.

Defendant hereby consents to the entry of the Final Judgment in the form attached

hereto (the "FinaljudgmentIJ) and incorpora.ted by reference herein. which, among other things;
(a)

permanently restrains and enjoins Defendant from violations ofSection
10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15
U.S.C. § 78j(b)J. and Rule 10b~5 promulgated thereunder [17 C.F.R.
§ 240.1 Ob-5]; and

(b)

orders Defendant to pay disgorgement in the amount of $265,709.33, plus
prejudgment interest thereon In the amount of$59,564.56, for a total of
$325,273.89, but provides that Defendant's payment ofdisgorgement and
prejudgment interest shall be deemed satisfied by the criminal forfeiture
ordered by the Court In the criminal case before the United States District
Court ofthe Southern District of New York titled, United States v, Zyl
Qaffer, I 0-CR-00056 (the "Parallel Criminal Action").

3.

Defendant acknowledges that no civil penalty is being imposed in light ofthe

Judgment entered against Defendant on September 21,20 II, in the Parallel Criminal Action,

pursuant to which Defendant was sentenced to a term of imprisonment often (10) years and

ordered to pay forfeiture of$1 0,022,931.

4.

Defendant waives the entry of findings of fact and conclusions of law pursuant to

Rule 52 of the Federal Rules of Civil Procedure.
5.

Defendant waives the right, ifnny, to a jury trial and to appeal from the entry of

the Final Judgment.
6.

Defendant enters inlo this Consent voluntarily and represent that no threats,

offers, promises, or inducements of any kind have been made by the Commission or any

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member, officer, employee, agent, or representative of the Commission to induce Defendant to
enter into this Consent.
7.

Defendant agrees that this Consent shall bo incorporated into the Final Judgment

with the same force and effect as if fully set forth therein.
8.

Defendant will not oppose the enforcement of the Final Judgment on the ground,

if any exists, that it fails to comply with Rule 65(d) ofthe Federal Rules of Civil Procedure, and
hereby waives any objection based thereon.
9.

Defendant waives servico of the Pinal Judgment and agrees that entry of the Final

Judgment by the Court and filing with the Clerk ofthe Court will constitute notice to Defendant
ofits tenns and conditions. Defendant further agrees to provide counsel for the Commission,
within thirty days after the Final Judgment is filed with the Clerk ofthe Court, with an affidavit
or declaration stating that Defendant has received and read 8 copy ofthe Final Judgment.
10.

Consistent with 17 C.F.R. 202.5(f). this Consent resolves only the claims asserted

against Defendant in this civil proceeding. Defendant acknowledges that no promise or
representation has been made by the Commission or any member, officer, employee, agent, or
representative ofthe Commission with regard to any criminal liability that may have arisen or
may arise from the facts underlying this action or immunity from any such criminal liability.
Defendant waives any claim of Double Jeopardy based upon the settlement ofthis proceeding,
including the imposition of any remedy or civil penalty herein. Defendant further acknowledges
that the Court's entry ofa permanent injunction may have collateral consequences under federal
or state law and the rules and regulations of self-regulatory organizations,1icensingboards. and
other regulatory organizations. Such collateral consequences include, but are not limited to, a
statutory disqualification with respect to membership or participation in, or association with a

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member of~ a self-regulatory organization. This statutory disqualification has consequences that
are separate from any sanction imposed in an admInistrative proceeding. In addition, In any
disciplinary proceeding before the Commission based on the entry ofthe injunction in this
action, Defendant understands that he shall not be permitted to contest the factual allegations of
the complaint in this action.

11.

Defendant understands and agrees to comply wIth the Commission's policy "not

to permit a defendant or respondent to consent to ajudgment or order that imposes a sanction
while denying the allegation in the complaint or order for proceedings." ] 7 C.F.R. § 202.5. In
compliance with this policy, Defendant agrees: (i) not to take any action or to make or permit to
be made any public statement denying, directly or indirectly, any allegation in the complaint or
creating the impression that the complaint is without factual basis; and (ii) that upon the filing of
this Consent, Defendant hereby withdraw any papers filed in this action to the extent that they
deny any allegation in the complaint. If Defendant breaches this agreement, the Commission
may petition the Court to vacate the Final Judgment and restore this action to its active docket.
Nothing in this Consent affects Defendant's: (i) testimonial Obligations; or (ii) right to take legal
or factual positions in litigation or other legal proceedings in which the Commission is not a
party.
12.

Defendant hereby waives any rIghts under the Equal Access to Justice Act, the

Small BusIness Regulatory Enforcement Fairness Act of 1996, or any other provision of law to
seek from the United States, or any agency, or aoy official ofthe United States aCling in his or
her official capacity, directly or indirectly, reimbursement of attorney~s fees or other fees,
expenses, or costs expended by Defendant to defend against this action. For these purposes,

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Defendant agrees that Defendant is not the prevailing party In this action since the parties have
reached a good faith settlement.
13.

Defendant agrees that the Commission may present the Final Judgment to the

Court for signature and entry without further notice.

14.

Defendant agrees that this Court shall retain jurisdiction over this matter for the

purpose ofentbrcing the terms ofthe Final Judgment.

Daled:

1f-I 1-/I

~¥Goffer

IJw

On
/1 y-,
• 201 I,
Zy i GQ{lf<.,.
, a person known to me,
personally appeared before me and acknowledged
=~nsent.

NO~

Commission expires:
LEXANDER DUDELSON

NO'~ry public, State 01 New York

Approved as to form:

No 02Due107380

QUI.\IIf1ed In Ne~ York coun W

CommIssIon Expires 03/29/20

A/L/
~~~~an;erM.

rr

Dudelson. Esq. (1'0'1 ~o1)

Attorney for Zvi Goffer
26 Court Street .. Suite 2306
Brooklyn, New York 11242
[phone]

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12-4-2011 ENDORESEMENT
Given defendant Goffer's parallel criminal conviction, the Court
is able to approve this Consent Judgment.