Securities and Exchange Commission v. Crupi

Filing 13

FINAL JUDGMENT AS TO DEFENDANT JOANN CRUPI: IT IS HEREBY 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: to employ any device, scheme, or artif ice to defraud; As further set forth in this order. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement and prejudgment interest totaling $2,877,696. This disgorgement and prejudgment interest shall be deemed satisfied by the $33 billion of restitution ordered against Defendant in United States v. O'Hara et al., 10 Cr. 228 (S.D.N.Y.) (LTS). IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that no civil penalty shall be ordered against Defe ndant in this civil action, based on Defendant's criminal conviction, restitution order and sentence in United States v. O'Hara et al, 10 Cr. 228 (S.D.N.Y.). 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. (Signed by Judge Louis L. Stanton on 3/10/2025) (ks)

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

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USDCSDNY
DOCUMENT
ELECTRONICALLY FILED
DOC#: _ _ _ ___,...__
DATE FILED: >
M

yo (

SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,

10 Civ. 8702
- against JOANN CRUPI,
Defendant.
-------------------- ----------------------x

FINAL JUDGMENT AS TO DEFENDANT JOANN CRUPI

The Securities and Exchange Commission having filed a Complaint and Defendant
JoAnn Crupi 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.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is

permanently restrained and enjoined from violating Section l 7(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;

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(b)

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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).
II.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section
lO(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. lOb-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.

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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).

III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is permanently enjoined from, directly or indirectly, singly or in concert, by use of
any means or instruments of transportation or communication in interstate commerce or by use
of the mails :
a.

employing any device, scheme or artifice to defraud any client or prospective
client; or

b.

engaging in any transaction, practice or course of business which operates or
would operate as a fraud or deceit upon any client or prospective client,

in violation, or aiding and abetting a violation, of Sections 206( 1) and 206(2) of the Advisers Act
of 1940 ("Advisers Act") [15 U.S.C . §§ 80b-6(1) and (2)].

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

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Defendant is permanently enjoined from, directly or indirectly, while acting as a broker or
dealer, by use of the mails or the means or instrumentalities of interstate commerce, from
effecting transactions in, or inducing or attempting to induce the purchase or sale of, securities,
by means of manipulative, deceptive, or other fraudulent devices or contrivances, including:
a.

acts, practices, and courses of business that operate or would operate as a fraud or
deceit upon any person,

b.

untrue statements of material fact and omissions to state a material fact,
necessary, in light of the circumstances under which they were made, not
misleading,

in violation, or aiding and abetting a violation, of Section 15(c) of the Exchange Act [15 U.S.C.
§78o(c)], and Rule l0b-3 thereunder [17 C.F.R. §240.l0b-3].

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).

V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is permanently enjoined while operating as a broker or dealer, or in concert with such
broker or dealer, from failing to make, maintain on such broker' s or dealer's premises, or keep
accurate, books and records required by law, including, but not limited to, account statements,
ledgers, blotters and journals in violation, or aiding or abetting a violation, of Section l 7(a) of
the Exchange Act [15 U.S .C. § 78q(a)] and Rule 17a-3 thereunder [17 C.F.R. § 240.17a-3].

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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).

VI.
IT IS FURTHER ORDERED that Defendant is permanently enjoined while operating
as an investment adviser, or acting in concert with such an investment adviser, and making use of
the mails or of any means or instrumentality of interstate commerce in connection with her or its
business as an investment adviser, from failing to make, maintain on such investment adviser' s
premises, or keep accurate, books and records required by law, including, but not limited to,
account statements, ledgers, blotters and journals, in violation, or aiding and abetting a violation,
of Section 204 of the Advisers Act [15 U.S.C. § 80b-4] and Rule 204-2 thereunder [17 C.F.R. §
275 .204-2].

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).

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

liable for disgorgement and prejudgment interest totaling $2,877,696. This disgorgement and
prejudgment interest shall be deemed satisfied by the $33 billion of restitution ordered against
Defendant in United States v. O'Hara et al., 10 Cr. 228 (S.D.N .Y.) (LTS).
VIII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that no civil penalty

shall be ordered against Defendant in this civil action, based on Defendant's criminal conviction,
restitution order and sentence in United States v. O'Hara et al , 10 Cr. 228 (S .D.N.Y.).
IX.
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.

X.
IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for

the purposes of enforcing the terms of this Final Judgment.

Dated:

1nMc..l \{], ___:L__Q__'2, 45
UNITED STATES DISTRICT WDGE

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