Securities and Exchange Commission v. James V Mazzo et al, No. 8:2012cv01327 - Document 37 (C.D. Cal. 2013)
Court Description: FINAL JUDGMENT by Judge David O. Carter, AS TO EDDIE C. MURRAY: lT IS ORDERED 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 are permanently restrained and enjoined from vio ating, directly or indirectly, Section lO(b) or the Securities Exchange Act of 1934 (the "Exchange Act") [ 15 U.S.C. 78j(b) and Rule IOb-5 prom ulgated thereunder [17 C.F.R. 240.1Ob-5], by using any means or instrumentality of interstate con1merce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security: (See document for further details.) Defendant shall pay a total of $123,236 within 14 days after entry of this Final Judgment by certified check, bank cashier's check, or United States postal money order payable to the Securities and Exchange Commission. In the event that the Seized Funds are not retained by the United States through a civil or criminal proceeding, Defendant agrees that he shall immediately pay the Seized Funds directly to the Commission as soon as they come into his possession or are held by another for his benefit by certified check, bank cashier' s check, or United States postal money order payable to the Securities and Exchange Commission. (rla)
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- Securities and Exchange Commission v. James V Mazzo et al Doc. 37 1- -::>. \.0 .. - c.; / <.: X: -<.. "'' ex: r-- ;:: 5-:: 5 lll:l: (.!) <'-' :::: t :: ..J c:c lo ::::;. 4 UNITED STATES DISTRI CT COURT CENTRAL DISTRICT OF CALIFORNIA SOUTHE RN DIVISION ....... c: Case No. A D EXC H /\NGE BkLN \1-- rJ);l (Jfe-,<;J PlaintifT, 6 v. xxxxxxx 7 FINAL JUDGMENT AS TO EDDIE C. MURRAY [3] EDDIE C. MURRAY et a l. , 8 Defe ndants. 9 10 II The Securiti es a nd Exc ha nge Commi ssio n hav in g ti led a Co mpl aint and 12 13 De fendant Eddie C. Murray ("Defendant") hav ing ente red a genera l appearance; 14 consented to the Co urt' s jurisdi ction over Defe ndant and the s ubj ect matte r of this 15 ac tion ; consented to entry of thi s f-inal Judgm ent w itho ut admitting or de nying the 16 17 a llegations of the Compla int (except as to jurisdicti on); wa ived findin gs o f fa ct and I8 conclus ions of law; a nd waived a ny ri g ht to appea l from th is fin a l Judg men t: 19 I. 20 21 22 lT IS HE R EBY ORDE R ED, ADJUDGED, /\ND DECREED that De fenda nt and Defe nd a nt 's agents, servants, employees, atto rneys, and all pe rsons in acti ve 23 concert o r parti c ipatio n w ith th e m w ho receive actu al noti ce of thi s f-inal Jud g m e nt 24 25 by persona l se rv ice or otherwise a re pe rma nentl y restra ined a nd e njoined fro m 26 vio lating, directly or indirectly, Sec ti o n l O(b) or the Sec uriti es Exchange Act of 27 28 I 934 (the "Excha nge A ct") [ 15 U.S.C. § 78j(b )J a nd Ru le I Ob-5 promulgated Dockets.Justia.com thereunder [ 17 C.F.R. § 240.1 Ob-5], by using any tneans or instrumentality of 2 3 interstate con1merce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security: 4 5 (a) to employ any device, scheme, or artifice to defraud; 6 (b) to make any untrue statetnent of a n1aterial fact or to omit to state a 7 material fact necessary in order to tnake the statements made, in the 8 light of the circumstances under which they were made, not misleading; 9 10 l1 or (c) to engage in any act, practice, or course of business which operates or 12 13 would operate as a fraud or deceit upon any person. 14 15 II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 16 17 Defendant and Defendant's agents, servants, employees, attorneys, and all persons in 18 active concert or participation with them who receive actual notice of this Final 19 Judgment by personal service or otherwise are permanently restrained and enjoined 20 21 from violating Section 14(e) of the Exchange Act [15 U.S.C. § 78n(e)] and Rule 22 14e-3 promulgated thereunder [ 17 C.F.R. § 240.14e-3], in coru1ection with any 23 24 25 26 tender offer or request or invitation for tenders, from engaging in any fraudulent, deceptive, or manipulative act or practice, by: (a) purchasing or selling or causing to be purchased or sold the 27 28 securities sought or to be sought in such tender offer, securities 2 convertible into or exchangeable for any such securities or any 2 option or right to obtain or dispose of any of the foregoing 3 securities while in possession of material information relating to 4 5 such tender offer that Defendant knows or has reason to know is 6 nonpublic and knows or has reason to know has been acquired 7 directly or indirectly frotn the offering person; the issuer of the 8 9 securities sought or to be sought by such tender offer; or any 10 officer, director, partner, employee or other person acting on 11 behalf of the offering person or such issuer, unless within a 12 13 reasonable time prior to any such purchase or sale such 14 information and its source are publicly disclosed by press release 15 or otherwise; or 16 17 18 19 20 (b) communicating material, nonpublic information relating to a tender offer, which Defendant knows or has reason to know is nonpublic and knows or has reason to know has been acquired 21 directly or indirectly from the offering person; the issuer of the 22 securities sought or to be sought by such tender offer; or any 23 officer, director, partner, employee, advisor, or other person 24 25 acting on behalf of the offering person or such issuer, to any 26 person under circumstances in which it is reasonably foreseeable 27 28 that such cotnmunication is likely to result in the purchase or sale 3 of securities in the n1anner described in subparagraph (a) above, 2 except that this paragraph shall not apply to a communication made in good faith 4 5 (i) 6 to the officers, directors, partners or employees of the offering person, to its advisors or to other persons, 7 involved in the planning, financing, preparation or 8 execution of such tender offer; 9 10 (ii) lI to the issuer whose securities are sought or to be sought by such tender offer, to its officers, directors, partners, 12 13 employees or advisors or to other persons involved in the 14 planning, financing, preparation or execution of the 15 activities of the issuer with respect to such tender offer; or 16 17 18 (iii) to any person pursuant to a requirement of any statute or rule or regulation promulgated thereunder. 19 20 21 22 III. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for $358,151 in a civil penalty, disgorgement and prejudgment 23 24 interest as follows: ( l) a one-half civil penalty in the amount of $117,657 under 25 .Section 2 I A of the Exchange Act [ 15 U.S.C. § 78u-l] to be paid by Defendant; (2) 26 disgorgement of$235,314, representing profits gained as a result of the conduct 27 28 alleged in the Complaint, but a portion of which is offset, on a dollar-for-dollar basis, 4 by the $234 ,9 15 that was seized by th e Internal Reve nue Serv ice at th e direction of 2 the U.S. Attorney's Office for the Central District of Cali forn ia fro m the Defend ant 's ..., ) brokerage account at Fide lity In vestments, account number - 5 2 2 8 on or about 4 5 August 10, 2009 (the "Seized Funds"), upon the De fendant 's agreemen t that he sha ll 6 not contest, directly or indirectly, the se izure of the Seized F und s, o r any a mount 7 thereo f, in any c ivil or criminal proceeding, leaving a balance o f $399 in 8 9 10 lI disgorgement to be pa id by th e De fendant; an d (3) prejudgment interest in the amount of $5, 180 to be paid by De fendant. Defe ndant shall pay a total of$ 123,236 within 14 days after entry of this F ina l 12 13 Judgment by certified check, bank cashi er's check, or United States postal mo ney 14 order payable to the Securities and Exchange Commission. In the event that the 15 Seized Funds a re not retained by the Un ited States through a c iv il or criminal 16 17 proceeding, Defendant agrees that he shall immedi ately pay the Seized Funds 18 directly to the C ommission as soon as they come into his possession or are he ld by 19 another for his bene fit by certifi ed check, bank cashi er' s chec k, or United States 20 21 22 24 posta l money o rder payable to the Securities and Exchange Commission. T he payme nt(s) described above sha ll be de li vered or ma iled to the Securi ti es and Exc hange Commission, Office of Financial Management, I 00 F Street, NE, Stop 25 6042, Washin gton , D.C. 20 549, a nd shall be accompani ed by a le tter identi fy ing 26 Edd ie C. Murray as a de fenda nt in thi s actio n; se tting forth the titl e and c ivi l acti on 27 28 number of thi s act ion and the na me of thi s Co urt; and specify ing th at payment is 5 • made pursuant to this Final Judgment. Defendant shall sitnultaneously trans1nit 2 3 photocopies of such payment and letter to the Cotnmission' s counsel in this action: Elaine C. Greenberg, Associate Director, Philadelphia Regional Office, Securities 4 8 9 10 II Defendant shall pay post-judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961. The Commission shall remit the funds paid pursuant to this paragraph to the United States Treasury. 12 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 17 herein, and that Defet:tdant shall comply with all of the undertakings and agreements 18 set forth therein. 19 v. 20 21 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 22 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 23 Final Judgment. 24 25 IT IS SO ORDERED. 26 27 28 February 25, Dated: - - - - - - 2013 UNITED STATES DISTRICT JUDGE DAVID O. CARTER 6
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