Securities and Exchange Commission v. David A. Williams et al, No. 2:2009cv02709 - Document 31 (C.D. Cal. 2010)
Court Description: FINAL JUDGMENT AS TO DEFENDANTS DAVID A. WILLIAMS; SHERWOOD SECURED INCOME FUND, LLC; WFG HOLDINGS, INC.; AND WILLIAMS FINANCIAL GROUP, LLC by Judge Jacqueline H. Nguyen: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants Williams, SSIF, WFG HI, and WFG LLC, and each of the Defendants' agents, servants, employees, and all persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise are permanently restrained and enjoin ed from violating, directly or indirectly, Section 17(a) of the Securities Act of 1933 ("Securities Act"), 15 U.S.C.77q(a), by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national se curities exchange, in connection with the offer or sale of any security: IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants Williams, SSIF, WFGHI, and WFG LLC are jointly and severally liable for disgorgement of $3,397,816, representin g profits gained as a result of the conduct alleged in the Compplaint, together with prejudgment interest thereon in the amount of $22,343.18, for a total of $3,420,159.18. Defendants shall satisfy this obligation by paying $3,420,159.18 within 14 days after entry of this Final Judgment by certified check. (bp)
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Securities and Exchange Commission v. David A. Williams et al Doc. 31 1 2 3 4 JS-6 5 6 7 UNITED STATES DISTRICT COURT 8 CENTRAL DISTRICT OF CALIFORNIA 9 WESTERN DIVISION 10 11 SECURITIES AND EXCHANGE COMMISSION, 12 Plaintiff, 13 14 15 16 17 vs. DAVID A. WILLIAMS; SHERWOOD SECURED INCOME FUND, LLC; WFG HOLDINGS, INC.; and WILLIAMS FINANCIAL GROUP, LLC, Case No. 2:09-cv-02709-JHN-JCx FINAL JUDGMENT AS TO DEFENDANTS DAVID A. WILLIAMS; SHERWOOD SECURED INCOME FUND, LLC; WFG HOLDINGS, INC.; AND WILLIAMS FINANCIAL GROUP, LLC Defendants. 18 19 20 21 22 23 24 25 26 27 28 Dockets.Justia.com 1 This matter having come before the Court on the Securities and Exchange 2 Commission’s (“Commission”) Motion for Disgorgement, Prejudgment Interest, 3 and Civil Penalties Against Defendants David A. Williams (“Williams”); 4 Sherwood Secured Income Fund, LLC (“SSIF”); WFG Holdings, Inc. (“WFGHI”); 5 and Williams Financial Group, LLC (“WFG LLC”) (collectively “Defendants”). 6 Defendants each previously entered a general appearance; consented to the Court’s 7 jurisdiction over each of them and the subject matter of this action; and consented 8 to the entry of an Order of Permanent Injunction and Other Relief as to each of 9 them, which orders were entered as to each of the Defendants. Having considered 10 the Commission’s Motion and noting that no opposition to the Motion was filed, 11 the Court finds it appropriate to enter Final Judgment against the Defendants. I. 12 13 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants 14 Williams, SSIF, WFGHI, and WFG LLC, and each of the Defendants’ agents, 15 servants, employees, and all persons in active concert or participation with them who 16 receive actual notice of this Order by personal service or otherwise are permanently 17 restrained and enjoined from violating, directly or indirectly, Section 17(a) of the 18 Securities Act of 1933 (“Securities Act”), 15 U.S.C. § 77q(a), by using any means or 19 instrumentality of interstate commerce, or of the mails, or of any facility of any 20 national securities exchange, in connection with the offer or sale of any security: 21 (a) to employ any device, scheme, or artifice to defraud; 22 (b) to make any untrue statement of a material fact or to omit to 23 state a material fact necessary in order to make the statements 24 made, in light of the circumstances under which they were 25 made, not misleading; or 26 (c) to engage in any transaction, practice, or course of business 27 which operates or would operate as a fraud or deceit upon a 28 purchaser. 1 II. 1 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 3 Defendant Williams, SSIF, WFGHI, and WFG LLC, and each of the Defendants’ 4 agents, servants, employees, and all persons in active concert or participation with 5 them who receive actual notice of this Judgment by personal service or otherwise 6 are permanently restrained and enjoined from violating, directly or indirectly, 7 Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”), 15 U.S.C. 8 § 78j(b), and Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5, by using 9 any means or instrumentality of interstate commerce, or of the mails, or of any 10 facility of any national securities exchange, in connection with the purchase or sale 11 of any security: 12 (a) to employ any device, scheme, or artifice to defraud; 13 (b) to make any untrue statement of a material fact or to omit to 14 state a material fact necessary in order to make the statements 15 made, in light of the circumstances under which they were 16 made, not misleading; or 17 18 19 20 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. III. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 21 Defendants Williams, SSIF, WFGHI, and WFG LLC are jointly and severally 22 liable for disgorgement of $3,397,816, representing profits gained as a result of the 23 conduct alleged in the Complaint, together with prejudgment interest thereon in the 24 amount of $22,343.18, for a total of $3,420,159.18. Defendants shall satisfy this 25 obligation by paying $3,420,159.18 within 14 days after entry of this Final 26 Judgment by certified check, bank cashier’s check, or United States postal money 27 order payable to the Securities and Exchange Commission. The payment shall be 28 delivered or mailed to the Office of Financial Management, Securities and 2 1 Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop 0- 2 3, Alexandria, Virginia 22312, and shall be accompanied by a letter identifying the 3 Defendant making the payment and identifying him/it as a Defendant in this 4 action; setting forth the title and civil action number of this action and the name of 5 this Court; and specifying that payment is made pursuant to this Final Judgment. 6 Defendants shall pay post-judgment interest on any delinquent amounts pursuant to 7 28 USC § 1961. The Commission shall remit the funds paid pursuant to this 8 paragraph to the United States Treasury. The Commission may enforce the 9 Court’s judgment for disgorgement and prejudgment interest by moving for civil 10 contempt (and/or through other collection procedures authorized by law) at any 11 time after 14 days following entry of this Final Judgment. In response to any such 12 civil contempt motion by the Commission, Defendants may assert any legally 13 permissible defense. 14 15 IV. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 16 Defendants Williams, SSIF, WFGHI, and WFG LLC are jointly and severally 17 liable for civil penalties in the amount of $3,420,159.18, pursuant to Section 20(d) 18 of the Securities Act, 15 U.S.C. § 77t(d), and Section 21(d)(3) of the Exchange 19 Act, 15 U.S.C. § 78u(d)(3). Defendants shall make this payment within 14 days 20 after entry of this Final Judgment by certified check, bank cashier’s check, or 21 United States postal money order payable to the Securities and Exchange 22 Commission. The payment shall be delivered or mailed to the Office of Financial 23 Management, Securities and Exchange Commission, Operations Center, 6432 24 General Green Way, Mail Stop 0-3, Alexandria, Virginia 22312, and shall be 25 accompanied by a letter identifying the respective Defendant making the payment 26 and identifying him/it as a Defendant in this action; setting forth the title and civil 27 action number of this action and the name of this Court; and specifying that 28 payment is made pursuant to this Final Judgment. Defendants shall pay post3 1 judgment interest on any delinquent amounts pursuant to 28 USC § 1961. The 2 Commission shall remit the funds paid pursuant to this paragraph to the United 3 States Treasury. 4 V. 5 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 6 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 7 of this Final Judgment. 8 9 10 VI. There being no just reason for delay, the Clerk is ordered to enter this Order forthwith and without further notice. 11 12 Dated this 29th day of July, 2010. 13 14 15 ______________________________________ HONORABLE JACQUELINE H. NGUYEN UNITED STATES DISTRICT JUDGE 16 17 18 19 20 21 22 23 24 25 26 27 28 4
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