Securities and Exchange Commission v. MacCord, Jr et al

Filing 70

FINAL PARTIAL JUDGMENT as to Defendant Donald MacCord, Jr. Signed by Judge Thomas S. Zilly. (MW) (cc: MacCord via USPS at CA and email via Mark Goldrosen)

Case 2:17-cv-01809-TSZ Document 70 Filed 05/18/22 Page 1 of 5
The Honorable Thomas S. Zilly

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UNITED STATES DISTRICT COURT

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WESTERN DISTRICT OF WASHINGTON

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AT SEATTLE

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12 SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,

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vs.

15 DONALD E. MacCORD, JR.,
SHANNON D. DOYLE, and
16 DIGI OUTDOOR MEDIA, INC.
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Case No. 2:17-cv-1809
FINAL PARTIAL JUDGMENT AS
TO DEFENDANT DONALD E.
MacCORD, JR.

Defendants.

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FINAL PARTIAL JUDGMENT
SEC V. MACCORD, ET AL.
CASE NO. 2:17-CV-1809

SECURITIES AND EXCHANGE COMMISSION
44 MONTGOMERY STREET, SUITE 2800
SAN FRANCISCO, CA 94104 ǁ [phone]

Case 2:17-cv-01809-TSZ Document 70 Filed 05/18/22 Page 2 of 5

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The Securities and Exchange Commission having filed a Complaint and Defendant

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DONALD E. MacCORD, JR. (“Defendant”) having entered a general appearance;

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consented to the Court’s jurisdiction over Defendant and the subject matter of this action;

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consented to entry of this Final Partial Judgment; waived findings of fact and conclusions

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of law; and waived any right to appeal from this Final Partial Judgment:

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I.
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

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

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Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or

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instrumentality of interstate commerce, or of the mails, or of any facility of any national

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securities exchange, in 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 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.

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

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

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the following who receive actual notice of this Final Partial Judgment by personal service

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or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant is permanently restrained and enjoined from violating Section 17(a) of the

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Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)], in the offer or sale of

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FINAL PARTIAL JUDGMENT
SEC V. MACCORD, ET AL.
CASE NO. 2:17-CV-1809

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SECURITIES AND EXCHANGE COMMISSION
44 MONTGOMERY STREET, SUITE 2800
SAN FRANCISCO, CA 94104 ǁ [phone]

Case 2:17-cv-01809-TSZ Document 70 Filed 05/18/22 Page 3 of 5

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any security by the use of any means or instruments of transportation or communication in

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interstate commerce or by use of the mails, directly or indirectly:

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(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.

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

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

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the following who receive actual notice of this Final Partial Judgment by personal service

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or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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

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permanently restrained and enjoined from violating Rule 13b2-2 [17 C.F.R. § 240.13b2-2]

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by, directly or indirectly, making or causing to be made a materially false or misleading

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statement to an accountant in connection with, or omitting to state or causing another to

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omit to state, any material fact necessary in order to make statements made, in light of the

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circumstances under which such statements are made, not misleading, to an accountant in

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connection with:

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(i)
Any audit, review or examination of the financial statements of the
issuer required to be made pursuant to Section 13(b)(2) of the Exchange Act
[15 U.S.C. § 78m(b)(2)]; or
(ii)
The preparation or filing of any document or report required to be filed
with the Commission pursuant to Section 13(b)(2) of the Exchange Act [15
U.S.C. § 78m(b)(2)] or otherwise.

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FINAL PARTIAL JUDGMENT
SEC V. MACCORD, ET AL.
CASE NO. 2:17-CV-1809

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SECURITIES AND EXCHANGE COMMISSION
44 MONTGOMERY STREET, SUITE 2800
SAN FRANCISCO, CA 94104 ǁ [phone]

Case 2:17-cv-01809-TSZ Document 70 Filed 05/18/22 Page 4 of 5

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

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

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the following who receive actual notice of this Final Partial Judgment by personal service

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or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to

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Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) of the

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Securities Act [15 U.S.C. § 77t(e)], Defendant is prohibited from acting as an officer or

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director of any issuer that has a class of securities registered pursuant to Section 12 of the

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Exchange Act [15 U.S.C. § 78l] or that is required to file reports pursuant to Section 15(d)

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of the Exchange Act [15 U.S.C. § 78o(d)].

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V.

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

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permanently barred from participating in an offering of penny stock, including engaging in

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activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or

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attempting to induce the purchase or sale of any penny stock. A penny stock is any equity

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security that has a price of less than five dollars, except as provided in Rule 3a51-1 under

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the Exchange Act [17 C.F.R. 240.3a51-1].

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

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for disgorgement with pre-judgment totaling $1,841,789, representing ill-gotten gains

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received as a result of Defendant’s conduct alleged in the Complaint. This amount shall be

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deemed satisfied by the judgment of restitution entered against Defendant in the criminal

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case United States v. Donald MacCord, Case No. 17-cr-00592-WHA-1 (N.D. Cal.), and

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the court’s order finding that such restitution had been satisfied by Defendant.

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FINAL PARTIAL JUDGMENT
SEC V. MACCORD, ET AL.
CASE NO. 2:17-CV-1809

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SECURITIES AND EXCHANGE COMMISSION
44 MONTGOMERY STREET, SUITE 2800
SAN FRANCISCO, CA 94104 ǁ [phone]

Case 2:17-cv-01809-TSZ Document 70 Filed 05/18/22 Page 5 of 5

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VII.

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

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docket no. 68-1, is incorporated herein with the same force and effect as if fully set forth

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herein, and that Defendant shall comply with all of the undertakings and agreements set

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forth therein.

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VIII.

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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,

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

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

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under any judgment, order, consent order, decree or settlement agreement entered in

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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

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

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IX.

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

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retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Partial

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Judgment.

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X.

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There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of

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Civil Procedure, the Clerk is ordered to enter this Final Partial Judgment forthwith and

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without further notice.

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Dated: May 18, 2022

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A

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Thomas S. Zilly
United States District Judge

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FINAL PARTIAL JUDGMENT
SEC V. MACCORD, ET AL.
CASE NO. 2:17-CV-1809

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SECURITIES AND EXCHANGE COMMISSION
44 MONTGOMERY STREET, SUITE 2800
SAN FRANCISCO, CA 94104 ǁ [phone]