SEC v. Natl Financial Syst, et al, No. 2:2003cv06908 - Document 155 (C.D. Cal. 2009)

Court Description: REVISED FINAL JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF AGAINST DEFENDANT NATIONAL FINANCIAL SYSTEMS, INC. by Judge Stephen V. Wilson. [See document for details.] 154 (ake)

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SEC v. Natl Financial Syst, et al 1 2 3 4 5 6 7 Doc. 155 JOHN M. McCOY III, Cal. Bar. No. 166244 Email: mccoyj@sec.gov PETER F. DEL GRECO, Cal. Bar No. 164925 Email: delgrecop@sec.gov Attorneys for Plaintiff Securities and Exchange Commission Rosalind R. Tyson, Regional Director Andrew G. Petillon, Associate Regional Director 5670 Wilshire Boulevard, 11th Floor Los Angeles, California 90036 Telephone: (323) 965-3998 Facsimile: (323) 965-3908 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 WESTERN DIVISION 11 12 SECURITIES AND EXCHANGE COMMISSION, 13 Plaintiff, 14 15 16 vs. Case No. CV 03-6908 SVW (JTLx) REVISED FINAL JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF AGAINST DEFENDANT NATIONAL FINANCIAL SYSTEMS, INC. NATIONAL FINANCIAL SYSTEMS, INC. and TERESE HERWICK, Defendants. 17 18 19 20 21 22 23 24 25 26 27 28 Dockets.Justia.com 1 Plaintiff Securities and Exchange Commission (“Commission”) having filed 2 a Complaint and Defendant National Financial Systems, Inc. (“Defendant”) having 3 entered a general appearance; consented to the Court’s jurisdiction over Defendant 4 and the subject matter of this action; consented to entry of this Revised Final 5 Judgment without admitting or denying the allegations of the Complaint (except as 6 to jurisdiction); waived findings of fact and conclusions of law; and waived any 7 right to appeal from this Revised Final Judgment: I. 8 9 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 10 and Defendant’s agents, servants, employees, attorneys, and all persons in active 11 concert or participation with them who receive actual notice of this Revised Final 12 Judgment by personal service or otherwise are permanently restrained and enjoined 13 from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act 14 of 1934 (the “Exchange Act”), 15 U.S.C. § 78j(b), and Rule 10b-5 promulgated 15 thereunder, 17 C.F.R. § 240.10b-5, by using any means or instrumentality of 16 interstate commerce, or of the mails, or of any facility of any national securities 17 exchange, in connection with the purchase or sale of any security: 18 (a) to employ any device, scheme, or artifice to defraud; 19 (b) to make any untrue statement of a material fact or to omit to state a 20 material fact necessary in order to make the statements made, in the 21 light of the circumstances under which they were made, not 22 misleading; or 23 24 25 26 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. II. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 27 Defendant and Defendant’s agents, servants, employees, attorneys, and all persons 28 in active concert or participation with them who receive actual notice of this 1 1 Revised Final Judgment by personal service or otherwise are permanently 2 restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 3 (the “Securities Act”), 15 U.S.C. § 77q(a), in the offer or sale of any security by 4 the use of any means or instruments of transportation or communication in 5 interstate commerce or by use of the mails, directly or indirectly: 6 (a) to employ any device, scheme, or artifice to defraud; 7 (b) to obtain money or property by means of any untrue statement of a 8 material fact or any omission of a material fact necessary in order to 9 make the statements made, in light of the circumstances under which they were made, not misleading; or 10 11 (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 12 III. 13 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 15 Defendant and Defendant’s agents, servants, employees, attorneys, and all persons 16 in active concert or participation with them who receive actual notice of this 17 Revised Final Judgment by personal service or otherwise are permanently 18 restrained and enjoined from violating Sections 206(1) and 206(2) of the 19 Investment Advisers Act of 1940 (the “Advisers Act”), 15 U.S.C. §§ 80b-6(1) & 20 80b-6(2), by use of the mails or means or instrumentalities of interstate commerce, 21 directly or indirectly: 22 (a) client or prospective client; or 23 24 with scienter, to employ any device, scheme, or artifice to defraud any (b) to engage in any transaction, practice, or course of business which 25 operates or would operate as a fraud or deceit upon any client or 26 prospective client. 27 28 IV. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 2 1 Defendant shall pay disgorgement in the amount of $6,666,644, payable to the 2 receiver, the payment of which shall be deemed satisfied by receiver Robert P. 3 Mosier’s filing of a final report affirming that said amount has been distributed to 4 Defendant’s investors and/or applied to the operations, costs and fees of the 5 receivership estate. 6 V. 7 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 8 Consent is incorporated herein with the same force and effect as if fully set forth 9 herein, and that the Defendant shall comply with all of the undertakings and 10 agreements set forth therein. 11 VI. 12 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 13 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 14 of this Revised Final Judgment. 15 16 VII. There being no just reason for delay, pursuant to Rule 54(b) of the Federal 17 Rules of Civil Procedure, the Clerk is ordered to enter this Revised Final Judgment 18 forthwith and without further notice. 19 20 21 Dated: August 26, 2009 __________________________________ HONORABLE STEPHEN V. WILSON UNITED STATES DISTRICT JUDGE 22 23 24 25 26 27 28 3

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