-FMO SEC v. Dale Carone, et al, No. 2:2003cv00374 - Document 47 (C.D. Cal. 2011)
Court Description: FINAL JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF AS TO ALLEN R. JOHNSON filed by Judge Manuel L. Real against Defendant Allen R Johnson (pj)
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-FMO SEC v. Dale Carone, et al Doc. 47 1 Thomas M. Melton (Utah State Bar No. 4999) Attorney for Plaintiff 2 Securities and Exchange Commission 15 West South Temple, Suite 1800 3 Salt Lake City, Utah 84101 Telephone: (801) 524-5796 4 Facsimile: (801) 524-3558 5 Local Counsel: Karen Matteson (Cal. Bar No. 102103) 6 Securities and Exchange Commission 5670 Wilshire Boulevard, 11th Floor 7 Los Angeles, California 90036-3648 Telephone: (323) 965-3840 8 Facsimile: (323) 965-3908 9 UNITED STATES DISTRICT COURT 10 FOR THE CENTRAL DISTRICT OF CALIFORNIA 11 WESTERN DIVISION 12 SECURITIES AND EXCHANGE 13 COMMISSION, Plaintiff, 14 15 vs. 16 DALE CARONE, JOSEPH W. ISAAC, ALLEN R. JOHNSON, LINKNET, INC., a 17 Utah corporation, and LINKNET de AMERICA LATINA, LTD., a Nevada 18 corporation, 19 Case No. CV 03-374 R (FMOx) FINAL JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF AS TO ALLEN R. JOHNSON Defendants. 20 21 22 The Securities and Exchange Commission (“Commission”) having filed a Complaint and 23 Defendant Allen R. Johnson (“Defendant”) having entered a general appearance; consented to 24 the Court’s jurisdiction over Defendant and the subject matter of this action; consented to entry 25 of this Final Judgment without admitting or denying the allegations of the Complaint (except as 26 to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal 27 from this Final Judgment: 28 Dockets.Justia.com 1 2 3 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant’s agents, servants, employees, attorneys, and all persons in active concert or participation 4 with them who receive actual notice of this Final Judgment by personal service or otherwise are 5 6 permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the 7 Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 8 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate 9 commerce, or of the mails, or of any facility of any national securities exchange, in connection with 10 the purchase or sale of any security: 11 (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 12 13 14 necessary in order to make the statements made, in the light of the circumstances 15 under which they were made, not misleading; or 16 (c) 17 to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 18 II. 19 20 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 21 and Defendant’s agents, servants, employees, attorneys, and all persons in active concert or 22 participation with them who receive actual notice of this Final Judgment by personal service or 23 otherwise are permanently restrained and enjoined from violating Section 17(a) of the Securities Act 24 of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any 25 means or instruments of transportation or communication in interstate commerce or by use of the 26 27 28 mails, directly or indirectly: (a) to employ any device, scheme, or artifice to defraud; - 2- 1 (b) 2 omission of a material fact necessary in order to make the statements made, in light of the 3 circumstances under which they were made, not misleading; or 4 (c) to obtain money or property by means of any untrue statement of a material fact or any to engage in any transaction, practice, or course of business which operates or 5 6 would operate as a fraud or deceit upon the purchaser. III. 7 8 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 9 and Defendant's agents, servants, employees, attorneys, and all persons in active concert or 10 participation with them who receive actual notice of this Final Judgment by personal service or 11 otherwise are permanently restrained and enjoined from violating Sections 5(a) and (c) of the 12 13 Securities Act [15 U.S.C. § 77e(a) and (c)] by, directly or indirectly, in the absence of any applicable 14 exemption: 15 (a) Unless a registration statement is in effect as to a security, making use of any means or 16 instruments of transportation or communication in interstate commerce or of the mails 17 to sell such security through the use or medium of any prospectus or otherwise; 18 (b) Unless a registration statement is in effect as to a security, carrying or causing to be 19 carried through the mails or in interstate commerce, by any means or instruments of 20 transportation, any such security for the purpose of sale or for delivery after sale; or 21 22 (c) Making use of any means or instruments of transportation or communication in 23 interstate commerce or of the mails to offer to sell or offer to buy through the use or 24 medium of any prospectus or otherwise any security, unless a registration statement 25 has been filed with the Commission as to such security, or while the registration 26 27 statement is the subject of a refusal order or stop order or (prior to the effective date of 28 - 3- 1 the registration statement) any public proceeding or examination under Section 8 of 2 the Securities Act [15 U.S.C. § 77h]. 3 IV. 4 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Defendant, and 5 6 Defendant’s officers, agents, servants, employees, attorneys, and accountants, and those persons in 7 active concert or participation with any of them, who receive actual notice of the order by personal 8 service or otherwise, and each of them, are permanently enjoined from engaging in the transactions, 9 acts, practices and courses of business described in the complaint and, and from engaging in conduct 10 of similar purport and object in violation of Section 15(a) of the Exchange Act [15 U.S.C. § 78o(d)]. 11 V. 12 13 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section 14 20(e) of the Securities Act [15 U.S.C. § 77t(e)] and Section 21(d)(2) of the Exchange Act [15 U.S.C. 15 § 78u(d)(2)], Defendant is prohibited from acting as an officer or director of any issuer that has a 16 class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is 17 required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]. 18 VI. 19 20 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is 21 permanently barred from participating in any offering of penny stock pursuant to Section 20(g) of the 22 Securities Act [15 U.S.C. § 77t(g)] and Section 21 (d)(6) of the Exchange Act [15 U.S.C. § 23 78u(d)(6)]. 24 25 26 27 28 - 4- 1 2 3 VII. 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 4 shall comply with all of the undertakings and agreements set forth therein. 5 VIII. 6 7 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain 8 jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. 9 10 11 IX. 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 Judgment forthwith and without further notice. 12 13 Dated: June 28, 2011. 14 ____________________________________ UNITED STATES DISTRICT JUDGE 15 16 Presented by: 17 /s/ Thomas M. Melton Thomas M. Melton 18 Karen L. Martinez Attorneys for Plaintiff 19 Securities and Exchange Commission 20 21 22 23 24 25 26 27 28 - 5-
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