Securities and Exchange Commission v. Global Materials & Services Inc et al, No. 8:2008cv00881 - Document 66 (C.D. Cal. 2010)
Court Description: FINAL JUDGMENT as to Defendant Stephen F. Owens by Judge David O. Carter. (See Judgment for details) (db)
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Securities and Exchange Commission v. Global Materials & Services Inc et al 1 2 3 4 5 6 7 8 9 10 11 Doc. 66 JOHN E. BIRKENHEIER Email: birkenheierj@sec.gov ANDREA R. WOOD Email: woodar@sec.gov MARGARET GEMBALA NELSON Email: nelsonm@sec.gov U.S. Securities and Exchange Commission 175 W. Jackson Blvd., Suite 900 Chicago, Illinois 60604 Telephone: (312) 353-7390 Facsimile: (312) 353-7398 LOCAL COUNSEL DAVID J. VAN HAVERMAAT, Cal. Bar No. 175761 Email: vanhavermaatd@sec.gov U.S. Securities and Exchange Commission 5670 Wilshire Blvd., 11th Floor Los Angeles, California 90036 Telephone: (323) 965-3998 Facsimile: (323) 965-3908 Attorneys for Plaintiff U.S. Securities and Exchange Commission 12 13 UNITED STATES DISTRICT COURT 14 CENTRAL DISTRICT OF CALIFORNIA 15 16 SECURITIES AND EXCHANGE COMMISSION, 17 Plaintiff, 18 19 20 21 22 23 Case No. SACV 08-881 DOC (RNBx) vs. GLOBAL MATERIALS & SERVICES, FINAL JUDGMENT AS TO INC. et al., DEFENDANT STEPHEN F. OWENS Defendants, and FLINN SPRINGS INN, INC., Relief Defendant. 24 25 26 27 28 Dockets.Justia.com 1 The Securities and Exchange Commission having filed a Complaint and 2 Defendant Stephen F. Owens having entered a general appearance; consented to 3 the Court’s jurisdiction over Defendant and the subject matter of this action; 4 consented to entry of this Final Judgment without admitting or denying the 5 allegations of the Complaint (except as to jurisdiction); waived findings of fact and 6 conclusions of law; and waived any right to appeal from this Final Judgment: I. 7 8 9 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant’s agents, servants, employees, attorneys and all persons in active 10 concert or participation with them who receive actual notice of this Final Judgment 11 by personal service or otherwise are permanently restrained and enjoined from 12 violating Section 5 of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 13 77e] by, directly or indirectly, in the absence of any applicable exemption: 14 (a) 15 of any means or instruments of transportation or communication in the 16 interstate commerce or of the mails to sell such security through the use or 17 medium of any prospectus or otherwise; 18 (b) 19 causing to be carried through the mails or in interstate commerce, by any 20 means or instruments of transportation, any such security for the purpose of 21 sale or for delivery after sale; or 22 (c) 23 communication in interstate commerce or of the mails to offer to sell or offer 24 to buy through the use or medium of any prospectus or otherwise any 25 security, unless a registration statement has been filed with the Commission 26 as to such security, or while the registration statement is the subject of a 27 refusal order or stop order or (prior to the effective date of the registration Unless a registration statement is in effect as to a security, making use Unless a registration statement is in effect as to a security, carrying or Making use of any means or instruments of transportation or 28 2 1 statement) any public proceeding or examination under Section 8 of the 2 Securities Act [15 U.S.C. § 77h]. II. 3 4 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 5 that Defendant and Defendant’s agents, servants, employees, attorneys, and all 6 persons in active concert or participation with them who receive actual notice of 7 this Final Judgment by personal service or otherwise are permanently restrained 8 and enjoined from violating Section 17(a) of the Securities Act [15 U.S.C. § 9 77q(a)], in the offer or sale of any security by the use of any means or instruments 10 of transportation or communication in interstate commerce or by use of the mails, 11 directly or indirectly: 12 (a) to employ any device, scheme or artifice to defraud; 13 (b) to obtain money or property by means of any untrue statement of a 14 material fact or any omission of a material fact necessary in order to make 15 the statements made, in light o the circumstances under which they were 16 made, not misleading; or 17 (c) 18 operates or would operate as a fraud or deceit upon the purchaser. 19 20 to engage in any transaction, practice, or course of business which III. IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED 21 that Defendant and Defendant's agents, servants, employees, attorneys, and all 22 persons in active concert or participation with them who receive actual notice of 23 this Final Judgment by personal service or otherwise are permanently restrained 24 and enjoined from violating, directly or indirectly, Section 10(b) of the Securities 25 Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 26 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or 27 instrumentality of interstate commerce, or of the mails, or of any facility of any 28 3 1 national securities exchange, in connection with the purchase or sale of any 2 security: 3 (a) to employ any device, scheme, or artifice to defraud; 4 (b) to make any untrue statement of a material fact or to omit to state a 5 material fact necessary in order to make the statements made, in the light of 6 the circumstances under which they were made, not misleading; or 7 (c) 8 would operate as a fraud or deceit upon any person. IV. 9 10 to engage in any act, practice, or course of business which operates or IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 11 that, pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and 12 Section 20(d) of the Securities Act [15 U.S.C. § 77t(e)], Defendant is prohibited 13 from acting as an officer or director of any issuer that has a class of securities 14 registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is 15 required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 16 78o(d)]. V. 17 18 IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED 19 that Defendant is permanently barred from participating in an offering of penny 20 stock, including engaging in activities with a broker, dealer, or issuer for purposes 21 of issuing, trading, or inducing or attempting to induce the purchase or sale of any 22 penny stock. A penny stock is any equity security that has a price of less than five 23 dollars, except as provided in Rule 3a51-1 under the Exchange Act [17 C.F.R. 24 240.3a51-1]. 25 26 VI. It Is Further Ordered, Adjudged, And Decreed that Defendant is liable for 27 disgorgement of $1,738,081, representing profits gained as a result of the conduct 28 alleged in the Complaint, together with prejudgment interest thereon in the amount 4 1 of $784,458, and a civil penalty in the amount of $120,000 pursuant to Section 2 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the 3 Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall satisfy this obligation by 4 paying $2,642,539 within 14 days after entry of this Final Judgment by certified 5 check, bank cashier's check, or United States postal money order payable to the 6 Securities and Exchange Commission. The payment shall be delivered or mailed 7 to the Office of Financial Management, Securities and Exchange Commission, 8 Operations Center, 6432 General Green Way, Mail Stop 0-3, Alexandria, Virginia 9 22312, and shall be accompanied by a letter identifying Stephen Owens as a 10 defendant in this action; setting forth the title and civil action number of this action 11 and the name of this Court; and specifying that payment is made pursuant to this 12 Final Judgment. Defendant shall pay post-judgment interest on any delinquent 13 amounts pursuant to 28 USC § 1961. The Commission shall remit the funds paid 14 pursuant to this paragraph to the United States Treasury. 15 VII. 16 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 17 Consent is incorporated herein with the same force and effect as if fully set forth 18 herein, and that Defendant shall comply with all of the undertakings and 19 agreements set forth therein. 20 VIII. 21 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 22 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 23 of this Final Judgment. 24 25 26 27 28 5 1 2 IX. There being no just reason for delay, pursuant to Rule 54(b) of the Federal 3 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment 4 forthwith and without further notice. 5 6 Dated: August 11, 2010 7 ____________________________________ 8 UNITED STATES DISTRICT JUDGE 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6
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