Securities and Exchange Commission v. Lambert Vander Tuig et al, No. 8:2006cv00172 - Document 740 (C.D. Cal. 2011)
Court Description: FINAL JUDGMENT of permanent injunction and other relief against The Carolina Development Company Inc by Judge Alicemarie H. Stotler. (twdb)
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Securities and Exchange Commission v. Lambert Vander Tuig et al Doc. 740 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE CENTRAL DISTRICT OF CALIFORNIA 10 SOUTHERN DIVISION 11 12 SECURITIES AND EXCHANGE COMMISSION, SACV06-172 AHS (MLGx) 13 14 Plaintiff, v. 15 16 Case No.: LAMBERT VANDER TUIG, et al., FINAL JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF AGAINST THE CAROLINA DEVELOPMEN COMPANY, INC. 17 Defendants. 18 19 20 The Securities and Exchange Commission (the 21 “Commission”) filed a Complaint (Docket # 1) against 22 The Carolina Development Company, Inc. (“Carolina” or 23 “Defendant”) and others on or about February 16, 2006. 24 The Court appointed Thomas A. Seaman as Receiver of 25 Carolina on or about February 16, 2006 (Docket # 13). 26 The Commission requests this Court to enter a Final 27 Judgment against Carolina. 28 Court rules as follows: Based on the foregoing, the 1 Dockets.Justia.com 1 2 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that 3 Defendant and Defendant’s agents, servants, employees, 4 attorneys, and all persons in active concert or 5 participation with them who receive actual notice of 6 this Final Judgment by personal service or otherwise 7 are permanently restrained and enjoined from violating, 8 directly or indirectly, Section 10(b) of the Securities 9 Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 10 78j(b)] and Rule 10b-5 promulgated thereunder 11 [17 C.F.R. § 240.10b-5], by using any means or 12 instrumentality of interstate commerce, or of the 13 mails, or of any facility of any national securities 14 exchange, in connection with the purchase or sale of 15 any security: 16 (a) to employ any device, scheme, or artifice to 17 defraud; 18 19 20 21 22 23 24 25 (b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 26 II. 27 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 28 that Defendant and Defendant’s agents, servants, 2 1 employees, attorneys, and all persons in active concert 2 or participation with them who receive actual notice of 3 this Final Judgment by personal service or otherwise 4 are permanently restrained and enjoined from violating 5 Section 17(a) of the Securities Act [15 U.S.C. § 6 77q(a)] in the offer or sale of any security by the use 7 of any means or instruments of transportation or 8 communication in interstate commerce or by use of the 9 mails, directly or indirectly: 10 (a) to employ any device, scheme, or artifice to 11 defraud; 12 (b) to obtain money or property by means of any 13 untrue statement of a material fact or any omission 14 of a material fact necessary in order to make the 15 statements made, in light of the circumstances 16 under which they were made, not misleading; or 17 (c) to engage in any transaction, practice, or 18 19 20 21 22 23 24 25 course of business which operates or would operate as a fraud or deceit upon the purchaser. III. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Defendant, and Defendant’s 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 26 are permanently restrained and enjoined from violating 27 Sections 5(a) and 5(c) of the Securities Act [15 U.S.C. 28 § 77e (a) and (c)] by, directly or indirectly, in the 3 1 2 absence of any applicable exemption: (a) Unless a registration statement is in 3 effect as to a security, making use of the means 4 or instruments of transportation or communication 5 in interstate commerce or of the mails to sell 6 such security through the use or medium of any 7 prospectus or otherwise; 8 9 (b) Unless a registration statement is in effect as to a security, carrying or causing to be 10 carried through the mails or in interstate 11 commerce, by any means or instruments of 12 transportation, any such security for the purpose 13 of sale or for delivery after sale; or 14 (c) Making use of any means or instruments of 15 transportation or communication in interstate 16 commerce or of the mails to offer to sell or offer 17 to buy through the use or medium of any prospectus 18 19 20 21 22 23 24 25 or otherwise any security, unless a registration statement has been filed with the Commission as to such security, or while the registration statement is the subject of a refusal order or stop order or (prior to the effective date of the registration statement) any public proceeding or examination under Section 8 of the Securities Act [15 U.S.C. § 77h). 26 IV. 27 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND 28 DECREED that Defendant is liable for disgorgement of 4 1 $52,622,339.99 in ill-gotten gains as a result of the 2 conduct alleged in the Complaint, together with pre- 3 judgment interest thereon in the amount of 4 $4,256,764.01, for a total amount of $56,879,104.00. 5 The court-appointed Receiver shall, pursuant to order 6 of this Court, liquidate and convert into money all 7 assets belonging to Defendant. 8 Receiver’s identification, marshaling and liquidation 9 of assets of the Defendant, the Order freezing assets To facilitate the 10 and prohibiting destruction of documents (Docket # 12) 11 and all extensions and amendments of that Order, 12 imposed pursuant to stipulation, Court order or 13 otherwise, shall remain effective until further order 14 of the Court. 15 interest not collected at the conclusion of the 16 Receivership shall be waived, upon submission of the 17 final accounting prepared by the Receiver and approval 18 19 20 21 22 23 24 25 Any disgorgement and/or prejudgment thereof by this Court. V. 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 shall comply with all of the undertakings and agreements set forth therein. VI. 26 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 27 this Court shall retain jurisdiction of this matter for 28 the purposes of enforcing the terms of this Final 5 1 Judgment. 2 3 VII. There being no just reason for delay, pursuant to 4 Rule 54(b) of the Federal Rules of Civil Procedure, the 5 Clerk is ordered to enter this Final Judgment forthwith 6 and without further notice. 7 Dated: March 4, 2011. 8 9 10 11 ___________________________________ ALICEMARIE H. STOTLER Alicemarie H. Stotler United States District Judge 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6
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