Securities and Exchange Commission v. Ly

Filing 7

ORDER/FINAL JUDGMENT AS TO DEFENDANT JONATHAN LY by U.S. District Judge John C Coughenour. (RS)

THE HONORABLE JOHN C. COUGHENOUR

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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SECURITIES AND EXCHANGE
COMMISSION,

CASE NO. C16-1855-JCC
ORDER

Plaintiff,

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v.

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JONATHAN LY,
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Defendant.

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FINAL JUDGMENT AS TO DEFENDANT JONATHAN LY
The Securities and Exchange Commission having filed a Complaint and Defendant

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Jonathan Ly having entered a general appearance; consented to the Court’s jurisdiction over

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Defendant and the subject matter of this action; consented to entry of this Final Judgment;

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waived findings of fact and conclusions of law; and waived any right to appeal from this Final

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Judgment:

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I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is

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permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the

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Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5

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promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of

ORDER
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interstate commerce, or of the mails, or of any facility of any national securities exchange, in

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connection with the purchase or sale of any security:

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(a)

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

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(b)

to make any untrue statement of a material fact or to omit to state a material fact

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necessary in order to make the statements made, in the light of the circumstances

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under which they were made, not misleading; or

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(c)

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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

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Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

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receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

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officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or

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participation with Defendant or with anyone described in (a).

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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

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is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933

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(the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any

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means or instruments of transportation or communication in interstate commerce or by use of the

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mails, directly or indirectly:

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(a)

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

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(b)

to obtain money or property by means of any untrue statement of a material fact

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or any omission of a material fact necessary in order to make the statements

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made, in light of the circumstances under which they were made, not misleading;

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or

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(c)

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to engage in any transaction, practice, or course of business which operates or
would operate as a fraud or deceit upon the purchaser.

ORDER
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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in

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Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

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receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

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officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or

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participation with Defendant or with anyone described in (a).

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

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for disgorgement of $348,515.72, representing profits gained as a result of the conduct alleged in

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the Complaint, together with prejudgment interest thereon in the amount of $27,391.30.

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Defendant shall satisfy this obligation by paying $375,907.02 to the Securities and Exchange

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Commission within 14 days after entry of this Final Judgment.

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Defendant may transmit payment electronically to the Commission, which will provide

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detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly

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from a bank account via Pay.gov through the SEC website at

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http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified check, bank

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cashier’s check, or United States postal money order payable to the Securities and Exchange

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Commission, which shall be delivered or mailed to

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Enterprise Services Center

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Accounts Receivable Branch

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6500 South MacArthur Boulevard

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Oklahoma City, OK 73169

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and shall be accompanied by a letter identifying the case title, civil action number, and name of

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this Court; Jonathan Ly as a defendant in this action; and specifying that payment is made

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pursuant to this Final Judgment.

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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,

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Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part

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of the funds shall be returned to Defendant. The Commission shall send the funds paid pursuant

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to this Final Judgment to the United States Treasury.

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The Commission may enforce the Court’s judgment for disgorgement and prejudgment

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interest by moving for civil contempt (and/or through other collection procedures authorized by

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law) at any time after 14 days following entry of this Final Judgment. Defendant shall pay post

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judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.

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IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, for purposes of

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exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the

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allegations in the complaint are true and admitted by Defendant, and further, any debt for

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disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this

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Final Judgment or any other judgment, order, consent order, decree or settlement agreement

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entered in connection with this proceeding, is a debt for the violation by Defendant of the federal

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securities laws or any regulation or order issued under such laws, as set forth in Section

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523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19).

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V.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is

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incorporated herein with the same force and effect as if fully set forth herein, and that Defendant

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shall comply with all of the undertakings and agreements set forth therein.

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VI.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain

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jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.

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//

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//

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//

ORDER
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DATED this 13th day of February, 2017.

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John C. Coughenour
UNITED STATES DISTRICT JUDGE

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ORDER
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