Securities and Exchange Commission v. Ben-Wal Leasing Company et al, No. 2:2009cv06223 - Document 85 (C.D. Cal. 2011)

Court Description: FINAL JUDGMENT RE DISGORGEMENT AND CIVIL PENALTIES by Judge Otis D Wright, II, in favor of Securities and Exchange Commission against Jerry E. Benson. that Defendant is liable for disgorgement of $2.3 million, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $205,372.05, for a total of $2,505,372.05. In partial satisfaction of his disgorgement obligation, Defendant is further ordered to transfer to the Court-appointed Receiver in this action the following property: a. With respect to the $20,000 being held in the attorney trust account of the Law Office of Stephen L. Belgum, Defendant shall execute that certain Stipulation Amon g Receiver, Defendant Jerry E. Benson and the Law Office of Stephen L. Belgum for OrderAuthorizing Payment of Insurance Proceeds to Receiver.In exchange for Defendants transfer of the aforementioned funds to the Court-appointed Receiver, the Court cr edits the Defendant with partial payment ofhis disgorgement obligation in the amount of $20,000.00, which the Securities and Exchange Commission believes is the fair market value of the aforementionedproperty. FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a civil penalty in the amount of $130,000.00 within 14 days after entry of this final judgment. (see document for specific requirements and instructions). (MD JS-6 (MD JS-6, Case Terminated). (lc)

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Securities and Exchange Commission v. Ben-Wal Leasing Company et al 1 2 3 4 5 6 7 DONALD W. SEARLES, Cal Bar No. 135705 Email: searlesd@sec.gov C. DABNEY O’RIORDAN, Cal. Bar No. 205158 Email: oriordand@sec.gov Doc. 85 JS-6 Attorneys for Plaintiff Securities and Exchange Commission Rosalind R. Tyson, Regional Director John M. McCoy III, Associate Regional Director 5670 Wilshire Boulevard, 11th Floor Los Angeles, California 90036-3648 Telephone: (323) 965-3998 Facsimile: (323) 965-3908 8 9 UNITED STATES DISTRICT COURT 10 CENTRAL DISTRICT OF CALIFORNIA 11 12 SECURITIES AND EXCHANGE COMMISSION, 13 14 15 16 Plaintiff, vs. 19 20 21 FINAL JUDGMENT RE DISGORGEMENT AND CIVIL PENALTIES AGAINST JERRY E. BENSON BEN-WAL LEASING COMPANY; BEN-WAL MANAGEMENT, INC.; and JERRY E. BENSON, 17 18 Case No. CV 09-6223 ODW (FMOx) Defendants, and CTR WEB PRINTING, INC.; and SCOTT W. BENSON, Relief Defendants. 22 23 24 25 26 27 28 Dockets.Justia.com 1 The Securities and Exchange Commission having filed a Complaint and 2 Defendant Jerry E. Benson having entered a general appearance; consented to the 3 Court’s jurisdiction over Defendant and the subject matter of this action; consented 4 to entry this Court’s Judgment dated February 4, 2010, and consented to entry of 5 this Final Judgment Re Disgorgement and Civil Penalties, without admitting or 6 denying the allegations of the Complaint (except as to jurisdiction); waived 7 findings of fact and conclusions of law; and waived any right to appeal from this 8 Judgment: 9 10 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 11 is liable for disgorgement of $2.3 million, representing profits gained as a result of 12 the conduct alleged in the Complaint, together with prejudgment interest thereon in 13 the amount of $205,372.05, for a total of $2,505,372.05. The Commission may 14 enforce the Court’s judgment for disgorgement and prejudgment interest by 15 moving for civil contempt (and/or through other collection procedures authorized 16 by law) at any time after 14 days following entry of this Final Judgment. In 17 response to any such civil contempt motion by the Commission, the defendant may 18 assert any legally permissible defense. Defendant shall satisfy this obligation by 19 paying making payment, by certified check, bank cashier’s check, or United States 20 postal money order payable to Dennis Murphy, the Court-appointed Receiver in 21 this action. The payment shall be delivered or mailed to Mr. Murphy630 N. 22 Rosemead Blvd., Suite 100, Pasadena, California 91107. In the event the Receiver 23 is discharged in this case, and Defendant has not paid the ordered disgorgement in 24 full, future payments shall be made by the Defendant to the Clerk of this Court, 25 together with a cover letter identifying Jerry Benson as a defendant in this action; 26 setting forth the title and civil action number of this action and the name of this 27 Court; and specifying that payment is made pursuant to this Final Judgment. 28 Defendant shall simultaneously transmit photocopies of such payment and letter to 1 1 the Commission’s counsel in this action. By making such payments, Defendant 2 relinquishes all legal and equitable right, title, and interest in such funds, and no 3 part of the funds shall be returned to Defendant. The Clerk shall deposit the funds 4 into an interest bearing account pursuant to Local Rule 67-2. These funds, together 5 with any interest and income earned thereon (collectively, the “Fund”), shall be 6 held in the interest bearing account until further order of the Court. In accordance 7 with Local Rule 67-2, the Clerk is authorized and directed, without further order of 8 this Court, to deduct from the income earned on the Fund a registry fee not to 9 exceed the amount prescribed by the Judicial Conference of the United States. 10 Defendant shall also pay post-judgment interest on any delinquent amounts 11 pursuant to 28 U.S.C. § 1961. II. 12 13 In partial satisfaction of his disgorgement obligation, Defendant is further 14 ordered to transfer to the Court-appointed Receiver in this action the following 15 property: 16 a. With respect to the $20,000 being held in the attorney trust account of 17 the Law Office of Stephen L. Belgum (the “Funds”), Defendant shall 18 execute that certain Stipulation Among Receiver, Defendant Jerry E. 19 Benson and the Law Office of Stephen L. Belgum for Order 20 Authorizing Payment of Insurance Proceeds to Receiver. 21 In exchange for Defendant’s transfer of the aforementioned funds to the 22 Court-appointed Receiver, the Court credits the Defendant with partial payment of 23 his disgorgement obligation in the amount of $20,000.00, which the Securities and 24 Exchange Commission believes is the fair market value of the aforementioned 25 property. 26 III. 27 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 28 Defendant shall pay a civil penalty in the amount of $130,000 pursuant to Section 2 1 21(d)(3) of the Exchange Act. Defendant shall make this payment within 14 days 2 after entry of this Final Judgment by certified check, bank cashier's check, or 3 United States postal money order payable to the Securities and Exchange 4 Commission. The payment shall be delivered or mailed to the Office of Financial 5 Management, Securities and Exchange Commission, Operations Center, 6432 6 General Green Way, Mail Stop 0-3, Alexandria, Virginia 22312, and shall be 7 accompanied by a letter identifying Jerry Benson as a defendant in this action; 8 setting forth the title and civil action number of this action and the name of this 9 Court; and specifying that payment is made pursuant to this Final Judgment. 10 Defendant shall pay post-judgment interest on any delinquent amounts pursuant to 11 28 USC § 1961. The Commission shall remit the funds paid pursuant to this 12 paragraph to the United States Treasury. 13 IV. 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 15 Consent is incorporated herein with the same force and effect as if fully set forth 16 herein, and that Defendant shall comply with all of the undertakings and 17 agreements set forth therein. 18 V. 19 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 20 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 21 of this Judgment. VI. 22 23 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 24 Rules of Civil Procedure, the Clerk is ordered to enter this Judgment forthwith and 25 without further notice. 26 27 28 DATED: January 3, 2011 __________________________________ HONORABLE OTIS D. WRIGHT II UNITED STATES DISTRICT JUDGE 3

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