Securities and Exchange Commission v. Baldwin et al

Filing 16

FINAL CONSENT JUDGMENT AND PERMANENT INJUNCTION in favor of Securities and Exchange Commission and against Dwight Shane Baldwin. Dft is liable for disgorgement of $8,000,000.00, together with prejudgment interest thereon in the amount of $1,112,967.59; total of $9,112,967.59 is to be paid to the Commission within 14 days after entry of this Final Consent Judgment. Signed by Judge David Nuffer on 10/12/17 (alt)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF UTAH, CENTRAL DIVISION
SECURITIES AND EXCHANGE
COMMISSION,

FINAL CONSENT JUDGMENT AND
PERMANENT INJUCTION AS TO
DEFENDANT DWIGHT SHANE
BALDWIN

Plaintiff,
v.
DWIGHT SHANE BALDWIN, an individual,
and SILVERLEAF FINANCIAL, LLC, a
Utah corporation,

Case No. 2:15-cv-00458-DN
District Judge David Nuffer

Defendants.
The Securities and Exchange Commission (“Commission”) having filed a Complaint1
and Defendant Dwight Shane Baldwin (“Defendant”) having entered a general appearance2;
consented to the Court’s jurisdiction over Defendant and the subject matter of this action;
consented to the entry of this Final Consent Judgment without admitting or denying the
allegations of the Complaint (except as to jurisdiction and except as otherwise provided herein in
paragraph V); waived findings of fact and conclusions of law; and waived any right to appeal
from this Final Consent Judgment:
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

1

Docket No. 2, filed June 25, 2015.

2

Docket No. 13, filed July 14, 2017.

Securities Exchange Act of 1934 (the "Exchange Act")3 and Rule 10b-54 promulgated
thereunder, 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 Consent 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 Section 17(a) of the Securities Act of 1933
(the “Securities Act”)5 in the offer or sale of any security by the use of any means or instruments

3

15 U.S.C. § 78j(b)

4

17 C.F.R. § 240.10b-5

5

15 U.S.C. § 77q(a)
2

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 Final Consent 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 liable for disgorgement of $8,000,000, representing profits gained as a result of the conduct
alleged in the Complaint, together with prejudgment interest thereon in the amount of
$1,112,967.59. Defendant shall satisfy this obligation by paying $ 9,112,967.59 to the
Commission within fourteen (14) days after entry of this Final Consent Judgment.
Defendant may transmit payment electronically to the Commission, which will provide
detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly
from a bank account via Pay.gov through the Commission’s website at
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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; Dwight Shane Baldwin as a defendant in this action; and specifying that payment is
made pursuant to this Final Consent Judgment.
Defendant shall simultaneously transmit photocopies of evidence of payment and case
identifying information to the Commission’s counsel in this action. By making this payment,
Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part
of the funds shall be returned to Defendant.
The Commission may enforce the Court’s judgment for disgorgement and prejudgment
interest by moving for civil contempt (and/or through other collection procedures authorized by
law) at any time after fourteen (14) days following entry of this Final Consent Judgment.
Defendant shall pay post judgment interest on any delinquent amounts pursuant to 28 U.S.C. §
1961. The Commission shall hold the funds, together with any interest and income earned
thereon (collectively, the “Fund”), pending further order of the Court.
The Commission may propose a plan to distribute the Fund subject to the Court’s
approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund
provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain
jurisdiction over the administration of any distribution of the Fund. If the Commission staff
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determines that the Fund will not be distributed, the Commission shall send the funds paid
pursuant to this Final Consent Judgment to the United States Treasury.
IV.
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.
V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of
exceptions to discharge set forth in Section 523 of the Bankruptcy Code,6 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 Final Consent
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.7
VI.
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 Final Consent Judgment.

6

11 U.S.C. §523

7

11 U.S.C. §523(a)(19)
5

VII.
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 Final Consent Judgment as to Defendant Dwight
Shane Baldwin forthwith and without further notice. This Final Consent Judgment does not
resolve claims against Defendant Silverleaf Financial, LLC.
Signed this 12th day of October, 2017.
BY THE COURT

________________________________________
David Nuffer
United States District Judge

6