Securities and Exchange Commission v. Private Equity Management Group, Inc. et al, No. 2:2009cv02901 - Document 799 (C.D. Cal. 2012)

Court Description: FINAL JUDGMENT AS TO DEFENDANTS PRIVATE EQUITY MANAGEMENT GROUP, LLC AND PRIVATE EQUITY MANAGEMENT GROUP, INC. by Judge Philip S. Gutierrez, in favor of United States of America against Private Equity Management Group, Inc., Private Equity Management Group, LLC: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants and Defendants' agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by per sonal service or otherwise are permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. § 78j(b), and Rule 10b-5 promulgated thereu nder, 17 C.F.R. § 240.10b-5, by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security. IT IS HEREBY FURTHER OR DERED, ADJUDGED, AND DECREED that Defendants and Defendants agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are per manently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 (the "Securities Act"), 15 U.S.C. § 77q(a), in the offer or sale of any security by the use of any means or instruments of transportation or co mmunication in interstate commerce or by use of the mails, directly or indirectly. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants are liable jointly and severally for disgorgement of $631,373,225, representing profits gaine d as a result of the conduct alleged in the Second Amended Complaint, together with prejudgment interest thereon in the amount of $72,581,507, for a total of $703,954,732. The obligations of Defendants to pay disgorgement and prejudgment in terest shall be deemed satisfied by the amount the Court-appointed permanent receiver collects, as reflected in the receiver's reports and final accounting to the Court. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of Defendants Private Equity Management Group, Inc. and Private Equity Management Group, LLC is incorporated herein with the same force and effect as if fully set forth herein, and that Defendants shall comply with all of the undertakings and agreements set forth therein. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. Nothing herein shall extinguish the powers and authorities granted to the Receiver in the Court's August 4, 2009 Preliminary Injunction (See Docket No. 246). 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. (see document for further details) (bm)