Securities and Exchange Commission v. Rashid

Filing 213

FINAL JUDGMENT AS TO DEFENDANT MOHAMMED ALI RASHID: Accordingly, as discussed in greater detail in the Court's Findings (Doc. 221), and having considered the submissions of the Parties as well as the trial record of these proceedings: I T IS ORDERED, ADJUDGED, AND DECREED that Rashid and his agents, servants, employees, attorneys, and all persons in active concert or participation with him, who receive actual notice of this judgment by personal service or otherwise are permanentl y restrained and enjoined from violating, directly or indirectly, Section 206(2) of the Advisers Act, [15 U.S.C. §§ 80b-6] by, while acting as an investment adviser, by the use of the means and instrumentalities of interstate commerce an d of the mails, directly or indirectly, engaging in transactions, practices, and courses of business which operate as a fraud or deceit upon his clients and prospective clients. As further set forth in this Order. IT IS FURTHER ORDERED, ADJUDG ED, AND DECREED that Rashid shall pay a civil penalty in the amount of $240,000 to the Securities and Exchange Commission pursuant to 15 U.S.C. § 80b-9(e). Rashid shall make this payment within 30 days after entry of this Final Judgment . IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of the Final Judgment. There being no just reason for delay, pursuant to Rule 58 of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. As further set forth herein. (Signed by Judge P. Kevin Castel on 10/14/2020) Mohammed Ali Rashid terminated. (ks)

Case 1:17-cv-08223-PKC Document 212-1 Filed 10/14/20 Page 11of 44
Case 1:17-cv-08223-PKC Document 213 Filed 09/29/20 Page of

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,

No. 17-cv-8223 (PKC)

v.
MOHAMMED ALI RASHID,
Defendant.
FINAL JUDGMENT AS TO
DEFENDANT MOHAMMED ALI RASHID
Pursuant to Rule 58 of the Federal Rules of Civil Procedure and this Court’s Findings of
Facts and Conclusions of Law (the “Court’s Findings”) [Doc. 221], which is incorporated herein,
Final Judgment is entered for:
(1)

Plaintiff Securities and Exchange Commission (“SEC”) and against Defendant

Mohammed Ali Rashid (“Rashid” or “Defendant”) for violating Section 206(2) of the Investment
Advisers Act of 1940 (the “Advisers Act” or the “Act”), 15 U.S.C. §§ 80b-6(2).
(2)

Rashid and against the SEC on its claims that Rashid violated Section 206(1) of the

Advisers Act or, alternatively, that Rashid aided and abetted a violation of Section 206(1) of the
Act.
Having found Rashid liable for a primary violation of Section 206(2) of the Advisers Act,
the Court does not reach whether or not Rashid should be found liable of aiding and abetting a
violation of Section 206(2) of the Act.
Accordingly, as discussed in greater detail in the Court’s Findings (Doc. 221), and having
considered the submissions of the Parties as well as the trial record of these proceedings:

-1-

Case 1:17-cv-08223-PKC Document 212-1 Filed 10/14/20 Page 22of 44
Case 1:17-cv-08223-PKC Document 213 Filed 09/29/20 Page of

I.
PERMANENT INJUNCTION
SECTION 206(2) OF THE INVESTMENT ADVISERS ACT OF 1940
IT IS ORDERED, ADJUDGED, AND DECREED that Rashid and his agents, servants,
employees, attorneys, and all persons in active concert or participation with him, who receive
actual notice of this judgment by personal service or otherwise are permanently restrained and
enjoined from violating, directly or indirectly, Section 206(2) of the Advisers Act, [15 U.S.C. §§
80b-6] by, while acting as an investment adviser, by the use of the means and instrumentalities of
interstate commerce and of the mails, directly or indirectly, engaging in transactions, practices,
and courses of business which operate as a fraud or deceit upon his clients and prospective clients.
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.
CIVIL PENALTY
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Rashid shall pay a
civil penalty in the amount of $240,000 to the Securities and Exchange Commission pursuant to
15 U.S.C. § 80b-9(e). Rashid shall make this payment within 30 days after entry of this Final
Judgment.
Rashid may transmit payment electronically to the Commission, which will provide
detailed ACH transfer/Fedwire instructions upon request.
from

a

bank

account

via

Pay.gov
-2-

Payment may also be made directly

through

the

SEC

website

at

Case 1:17-cv-08223-PKC Document 212-1 Filed 10/14/20 Page 33of 44
Case 1:17-cv-08223-PKC Document 213 Filed 09/29/20 Page of

http://www.sec.gov/about/offices/ofm.htm .

Rashid 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, Mohammed Ali Rashid as a defendant in this action, and specifying that payment is
made pursuant to this Final Judgment.
Rashid shall simultaneously transmit photocopies of evidence of payment and case
identifying information to the Commission’s counsel of record in this action. By making this
payment, Rashid relinquishes all legal and equitable right, title, and interest in such funds and no
part of the funds shall be returned to Rashid. The Commission shall send the funds paid pursuant
to this Final Judgment to the United States Treasury. Rashid shall pay post-judgment interest on
any delinquent amounts pursuant to 28 USC § 1961.
III.
RETENTION OF JURISDICTION
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall
retain jurisdiction of this matter for the purposes of enforcing the terms of the Final Judgment.
IV.
FEDERAL RULE OF CIVIL PROCEDURE 58
There being no just reason for delay, pursuant to Rule 58 of the Federal Rules of Civil
Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.

-3-

Case 1:17-cv-08223-PKC Document 212-1 Filed 10/14/20 Page 44of 44
Case 1:17-cv-08223-PKC Document 213 Filed 09/29/20 Page of

10/14/2020
Dated: _____________________
New York, New York

-4-