Securities and Exchange Commission v. Thomas Rubin et al, No. 8:2011cv01466 - Document 34 (C.D. Cal. 2013)
Court Description: JUDGMENT by Judge James V. Selna, AS TO DEFENDANT CHRISTOPHER SCOTT: (See document for details.) IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall be liable for disgorgement of $112,056, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $12,604.34, and a civil penalty in the amount of $75,000 pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d) ] and 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)], all of which the Defendant is jointly and severally liable with the entity, E-Info Solutions, LLC. Defendant shall pay the total of disgorgement, prejudgment interest, and penalty du e of $199,660.34 to the Commission according to the following schedule: (1) $59,898.10 within 14 days of the entry of this Final Judgment; (2) $139,762.24 within 364 days of the entry of this Final Judgment plus post judgment interes t, which accrues pursuant to 28 U.S.C. § 1961 on any unpaid amounts due after 14 days of the entry of Final Judgment. Payments shall be deemed made on the date they are received by the Commission and shall be applied first to post judgment in terest, which accrues pursuant to 28 U.S.C. § 1961 on any unpaid amounts due after 14 days of the entry of Final Judgment. Prior to making the final payment set forth herein, Defendant shall contact the staff of the Commission for the amount due for the final payment. (rla)
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Securities and Exchange Commission v. Thomas Rubin et al 1 Doc. 34 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA 2 3 4 SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 5 Case No. SACV11-01466 JVS MLGx 6 Hon. James V. Selna 7 8 9 v. THOMAS RUBIN, CHRISTOPHER SCOTT, BGLR ENTERPRISES, LLC, and E-INFO SOLUTIONS LLC, 10 11 Defendants. 12 13 14 15 16 JUDGMENT AS TO DEFENDANT CHRISTOPHER SCOTT The Securities and Exchange Commission having filed a Complaint and Defendant Christopher Scott having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; consented 17 to entry of this Judgment without admitting or denying the allegations of the 19 18 Complaint (except as to jurisdiction); waived findings of fact and conclusions of 20 law; and waived any right to appeal from this Judgment: 21 22 23 24 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active 25 concert or participation with them who receive actual notice of this Final Judgment 27 26 by personal service or otherwise are permanently restrained and enjoined from 28 Dockets.Justia.com 1 2 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 3 thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of 5 4 interstate commerce, or of the mails, or of any facility of any national securities 6 exchange, in connection with the purchase or sale of any security: 7 (a) to employ any device, scheme, or artifice to defraud; 9 8 (b) to make any untrue statement of a material fact or to omit to state a 10 material fact necessary in order to make the statements made, in the 11 12 light of the circumstances under which they were made, not 13 misleading; or 14 15 16 17 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. II. 18 19 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 20 and Defendant's agents, servants, employees, attorneys, and all persons in active 21 concert or participation with them who receive actual notice of this Final Judgment 22 23 by personal service or otherwise are permanently restrained and enjoined from 24 violating, directly or indirectly, Section 17(a) of the Securities Act of 1933 (the 25 "Securities Act") [15 U.S.C. § 77q(a)], directly or indirectly, by the use of any 26 27 28 means or instruments of transportation or communication in interstate commerce or by use of the mails, in the offer or sale of securities: -2- 1 2 (a) to employ any device, scheme, or artifice to defraud; (b) to obtain money or property by means of any untrue statement of a 3 material fact or any omission to state a material fact necessary in order 5 4 to make the statements made, in light of the circumstances under 6 which they were made, not misleading; or; 7 8 (c) 9 to engage in transactions, practices, or courses of business which operate or would have operated as a fraud or deceit upon the 10 purchaser. 11 III. 12 13 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 14 15 that Defendant and Defendant's agents, servants, employees, attorneys, and all 16 persons in active concert or participation with them who receive actual notice of 17 this Judgment by personal service or otherwise are permanently restrained and 18 19 20 21 enjoined from violating Section 5(a) and 5(c) of the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption: (a) Unless a registration statement is in effect as to a security, making use 22 of any means or instruments of transportation or communication in 23 24 interstate commerce or of the mails to sell such security through the 25 use or medium of any prospectus or otherwise; or 26 27 28 (c) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell -3- 1 2 or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed 3 with the Commission as to such security, or while the registration 5 4 statement is the subject of a refusal order or stop order or (prior to the 6 effective date of the registration statement) any public proceeding or 7 8 examination under Section 8 of the Securities Act [15 U.S.C. § 77h]. 9 IV. 10 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 11 12 that pursuant to Section 20(g) of the Securities Act [15 U.S.C. § 77t(g)] and Section 13 21(d)(6) of the Exchange Act [15 U.S.C. § 78u(d)(6)], Defendant is prohibited for 14 15 five years following the date of entry of this Judgment, from participating in an 16 offering of penny stock, including engaging in activities with a broker, dealer, or 17 issuer for purposes of issuing, trading, or inducing or attempting to induce the 18 19 purchase or sale of any penny stock. A penny stock is any equity security that has a 20 price of less than five dollars, except as provided in Rule 3a51-1 under the 21 Exchange Act [17 C.F.R. 240.3a51-1]. 22 23 V. 24 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that, pursuant 25 to Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) 26 27 28 of the Securities Act [15 U.S.C. § 77t(e)], Defendant is prohibited, for five years following the date of entry of this Final Judgment, from acting as an officer or -4- 1 2 director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is required to file reports pursuant to 3 4 5 6 Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]. VI. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 7 that Defendant shall be liable for disgorgement of $112,056, representing profits 9 8 gained as a result of the conduct alleged in the Complaint, together with 10 prejudgment interest thereon in the amount of $12,604.34, and a civil penalty in the 11 12 amount of $75,000 pursuant to Section 20(d) of the Securities Act [15 U.S.C. 13 § 77t(d)] and 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)], all of which the 14 15 Defendant is jointly and severally liable with the entity, E-Info Solutions, LLC. 16 Defendant shall pay the total of disgorgement, prejudgment interest, and 17 penalty due of $199,660.34 to the Commission according to the following schedule: 18 19 (1) $59,898.10 within 14 days of the entry of this Final Judgment; (2) $139,762.24 20 within 364 days of the entry of this Final Judgment plus post judgment interest, 21 which accrues pursuant to 28 U.S.C. § 1961 on any unpaid amounts due after 14 22 23 days of the entry of Final Judgment. Payments shall be deemed made on the date 24 they are received by the Commission and shall be applied first to post judgment 25 interest, which accrues pursuant to 28 U.S.C. § 1961 on any unpaid amounts due 26 27 after 14 days of the entry of Final Judgment. Prior to making the final payment set 28 -5- 1 2 forth herein, Defendant shall contact the staff of the Commission for the amount due for the final payment. 3 4 5 6 If Defendant fails to make any payment by the date agreed and/or in the amount agreed according to the schedule set forth above, all outstanding payments under this Final Judgment, including post-judgment interest, minus any payments 7 made, shall become due and payable immediately at the discretion of the staff of the 9 8 Commission without further application to the Court. 10 Defendant may transmit payment electronically to the Commission, which 11 12 will provide detailed ACH transfer/Fedwire instructions upon request. Payment 13 may also be made directly from a bank account via Pay.gov through the SEC 14 15 website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by 16 certified check, bank cashier’s check, or United States postal money order payable 17 to the Securities and Exchange Commission, which shall be delivered or mailed to 18 19 Enterprise Services Center 20 Accounts Receivable Branch 21 6500 South MacArthur Boulevard 22 23 Oklahoma City, OK 73169 24 and shall be accompanied by a letter identifying the case title, civil action number, 25 and name of this Court; Defendant’s as a defendant in this action; and specifying 26 27 that payment is made pursuant to this Final Judgment. 28 -6- 1 2 Defendant shall simultaneously transmit photocopies of evidence of payment and case identifying information to the Commission’s counsel in this action. By 3 making this payment, Defendant relinquishes all legal and equitable right, title, and 5 4 interest in such funds and no part of the funds shall be returned to Defendant. The 6 Commission shall send the funds paid pursuant to this Final Judgment to the United 7 States Treasury. Defendant shall pay post-judgment interest on any delinquent 9 8 amounts pursuant to 28 USC § 1961. 10 VII. 11 12 13 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 14 15 16 17 Dated: May 21, 2013 of this Judgment. 19 _ JAMES V. SELNA UNITED STATES DISTRICT JUDGE 20 21 22 23 24 25 26 27 28 -7-
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