United States Securities and Exchange Commission v. Stone et al

Filing 168

JUDGMENT AS TO DEFENDANT DAVID LEE STONE The Securities and Exchange Commission having filed a Complaint and Defendant David Lee Stone ("Defendant") having entered a general appearance; consented to the Courts jurisdiction over Defendant and the subject matter of this action; consented to entry of this Judgment; waived findings of fact and conclusions of law; and waived any right to appeal from this Judgment: IT IS ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restr ained 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 an y means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of e nforcing the terms of this Judgment. 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. (And as further set forth herein.) David Lee Stone terminated. (Signed by Judge Victor Marrero on 11/17/2022) (jca)

Case 1:22-cv-03553-VM Document 168 Filed 11/17/22 Page 1 of 4

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
11/17/2022

UNITED STATES SECURITIES AND
EXCHANGE COMMISSION,

22 Civ. 3553 ( VM )

Plaintiff,
v.
DAVID LEE STONE and
JOHN D. ROBSON,
Defendants,
and
HAROLD J. STONE,
GWENDOLYN STONE,
JUSTIN BLAKESLEY, and
BRETT R. ADAMS,
Relief Defendants.

JUDGMENT AS TO DEFENDANT DAVID LEE STONE
The Securities and Exchange Commission having filed a Complaint and Defendant David
Lee Stone (“Defendant”) 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
Judgment; waived findings of fact and conclusions of law; and waived any right to appeal from
this Judgment:
I.
IT IS 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

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Case 1:22-cv-03553-VM Document 168 Filed 11/17/22 Page 2 of 4

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 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 FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall
pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil penalty pursuant
to Sections 21A and/or 21(d)(3) of the Exchange Act [15 U.S.C. §§ 78u-1, 78u(d)(3)]. The Court
shall determine the amounts of the disgorgement, prejudgment interest, and civil penalty upon
motion of the Commission. In connection with the Commission’s motion for disgorgement,
prejudgment interest, and/or civil penalties, and at any hearing held on such a motion: (a)
Defendant will be precluded from arguing that he did not violate the federal securities laws as
alleged in the Complaint; (b) Defendant may not challenge the validity of the Consent or this

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Judgment; (c) solely for the purposes of such motion, the allegations of the Complaint shall be
accepted as and deemed true by the Court; and (d) the Court may determine the issues raised in
the motion on the basis of affidavits, declarations, excerpts of sworn deposition or investigative
testimony, and documentary evidence, without regard to the standards for summary judgment
contained in Rule 56(c) of the Federal Rules of Civil Procedure. In connection with the
Commission’s motion, the parties may take discovery, including discovery from appropriate
non-parties.
III.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of
Defendant David Lee Stone 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, for purposes of
exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the
allegations in the complaint are true and admitted by Defendant, and further, 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).

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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: November 17, 2022

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