Securities and Exchange Commission v. Dean et al

Filing 205

FINAL JUDGMENT AS TO DEFENDANT DONALD J. FOWLER: IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay disgorgement of $132,085.20, prejudgment interest thereon of $35,195.04, and a civil penalty in the amount of $1,950 ,000, for a total of $2,117,280.24. Defendant shall satisfy his obligations to pay the foregoing amounts of disgorgement, prejudgment interest, and civil penalties ordered pursuant to this paragraph by paying the amounts ordered to the Securitie s and Exchange Commission within fourteen (14) days after entry of the relevant order. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Judgment. Th ere 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. And as set forth herein.Signed by Judge Gregory H. Woods on 2/28/2020) (ama)

USDC SDNY
DOCUMENT
ELECTRONICALLY FILED
DOC #:
DATE FILED: 2/28/2020

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
_______________________________________________

:
:
:
Plaintiff,
:
:
-against:
:
DONALD J. FOWLER,
:
:
Defendant.
:
_______________________________________________ :
SECURITIES AND EXCHANGE COMMISSION,

17-CV-139 (GHW)
ECF Case

FINAL JUDGMENT AS TO DEFENDANT DONALD J. FOWLER
Plaintiff Securities and Exchange Commission (“Plaintiff” or “Commission”) having
filed a Complaint and a jury trial having been held between June 10 and June 19, 2019, as to the
Commission’s claims against Defendant Donald J. Fowler (“Defendant”) and the jury having
returned a verdict for Plaintiff as to all claims against the Defendant on June 20, 2019:
I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
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. § 240.10b-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.

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 Judgment by personal service or otherwise: (a) Defendant’s 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 FURTHER 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:
(a)

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

(b)

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 Judgment by personal service or otherwise: (a) Defendant’s agents,

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servants, employees, and attorneys; and (b) other persons in active concert or participation with
Defendant or with anyone described in (a).
III.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay
disgorgement of $132,085.20, prejudgment interest thereon of $35,195.04, and a civil penalty in
the amount of $1,950,000, for a total of $2,117,280.24.
Defendant shall satisfy his obligations to pay the foregoing amounts of disgorgement,
prejudgment interest, and civil penalties ordered pursuant to this paragraph by paying the
amounts ordered to the Securities and Exchange Commission within fourteen (14) days after
entry of the relevant order.
Defendant may transmit payment electronically to the Commission, which will provide
detailed ACH transfer/Fedwire instructions upon request. Payment may then also be made
directly from a bank account via 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; Defendant as a defendant in this action; and specifying that payment is made pursuant
to this Judgment and any order regarding disgorgement, prejudgment interest, and/or civil
penalties.
Defendant shall simultaneously transmit photocopies of evidence of payment and case
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identifying information to the Commission’s counsel in this action. By making this payment,
Defendant will relinquish all legal and equitable right, title, and interest in such funds and no part
of the funds shall be returned to Defendant.
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that for purposes of
exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, any
debt for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant
under this Judgment or any other judgment, order, consent order, decree or settlement agreement
entered in connection with this proceeding, is a debt for the violation by Defendant of the federal
securities laws or any regulation or order issued under such laws, as set forth in Section
523(a)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19).
V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Judgment.
VI.
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.
Dated: February 28, 2020
____________________________________
HONORABLE GREGORY H. WOODS
UNITED STATES DISTRICT JUDGE

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