-CMK Securities and Exchange Commission v. Secure Investement Services, Inc., et al, No. 2:2007cv01724 - Document 899 (E.D. Cal. 2011)

Court Description: STIPULATION and ORDER signed by Judge Garland E. Burrell, Jr on 8/22/11 ORDERING that the Commission is authrized to pay the funds represented by the check in Exhibit C over the Receiver by negotiating the check to him otherwise; and the amount of the check, $12,366.32, shall be credited against Snowden's liability under the final judgment against her to reduce the amount of disgorgement still owed by $12,366.32.(Mena-Sanchez, L)

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-CMK Securities and Exchange Commission v. Secure Investement Services, Inc., et al Doc. 899 1 JOHN S. YUN (Cal. Bar No. 112260) THOMAS J. EME (Illinois Bar No. 6224870) 2 Attorneys for Plaintiff 3 SECURITIES AND EXCHANGE COMMISSION 44 Montgomery Street, Suite 2600 4 San Francisco, California 94104 Telephone: (415) 705-2500 5 Facsimile: (415) 705-2501 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 SACRAMENTO DIVISION 11 SECURITIES AND EXCHANGE COMMISSION, Case No. 2:07-cv-01724-GEB-CMK 12 Plaintiff, STIPULATION AND [PROPOSED] ORDER REGARDING DEFENDANT SNOWDEN’S DISGORGEMENT 13 vs. 14 SECURE INVESTMENT SERVICES, INC., 15 AMERICAN FINANCIAL SERVICES, INC., LYNDON GROUP, INC., and KIMBERLY A. 16 SNOWDEN, 17 Defendants. 18 19 20 21 22 23 24 25 26 BACKGROUND Plaintiff Securities and Exchange Commission (“the Commission”) states as follows: 1. The Commission’s complaint alleged that the Defendants operated a securities fraud scheme that raised over $25 million from hundreds of investors. (Compl. Par. 1-3.) The complaint also asked the Court to appoint a receiver to protect investor assets and order the Defendants to disgorge their ill-gotten gains. Id. Par. 4. 2. The Court appointed Michael J. Quilling as the Receiver over the three corporate defendants (Secure Investment Services, Inc., American Financial Services, Inc., and Lyndon Group, 27 28 2 STIPULATION RE DISGORGEMENT Dockets.Justia.com 1 Inc.) Since his appointment, the Reciever has been managing the assets of the receivership estate for 2 the benefit of investors. 3 3. On November 6, 2009, the Court issued a final judgment as to Defendant Kimberly A. 4 Snowden (“Snowden”). The final judgment, attached as Exhibit A, ordered that Snowden is liable 5 for disgorgement in the amount of $574,518.45, together with prejudgment interest thereon in the 6 amount of $53,103.32, for a total of $627,621.77 (“the Disgorgement Amount”). (Exh. A p.1). The 7 final judgment provided that payment of the Disgorgement amount “shall be made to the Clerk of this 8 Court.” (Exh. A p. 2.) 9 4. As evidenced by attached Exhibit B, the Commission filed a claim in Snowden’s 10 bankruptcy proceeding seeking to collect on the judgment. In partial satisfaction of this claim, the 11 Commision recently received a check from the bankruptcy trustee payable to the Commission in the 12 amount of $12,366.32. A redacted copy of the check is attached as Exhibit C. STIPULATION 13 14 The undersigned parties agree and stipulate as follows: 15 5. Notwithstanding the final judgment’s direction that the Disgorgement Amount be paid 16 to the Clerk of Court, the $12,366.32 paid to the Commission by the bankruptcy trustee should be 17 paid over to the Receiver for him to use for the benefit of investors. 18 6. The amount of $12,366.32 should be credited against Snowden’s liability under the 19 final judgment to reduce the amount of the disgorgement still owed by $12,366.32. 20 7. No Defendant admits to any civil or criminal liability by way of this stipulation. 21 22 Respectfully submitted, 23 24 SECURITIES AND EXCHANGE COMMISSION 25 26 Dated: August 22, 2011 27 28 /s/ Thomas J. Eme Thomas J. Eme John S. Yun Attorneys for Plaintiff Securities and Exchange Commission -2- STIPULATION RE DISGORGEMENT 1 2 Dated: August 22, 2011 3 4 Dated: August 22, 2011 5 6 /s/ Jonz Norine (as authorized on Aug. 18, 2011) Jonz Norine Attorney for Defendant Kimberly A. Snowden /s/ Michael J. Quilling (as authorized on Aug. 12, 2011) Michael J. Quilling Receiver for Defendants Secure Investment Services, Inc,. American Financial Services, Inc., and Lyndon Group, Inc. 7 8 ORDER 9 10 IT IS HEREBY ORDERED that: 11 1. The Commission is authorized to pay the funds represented by the check in Exhibit C 12 over to the Receiver by negotiating the check to him or otherwise; and 13 2. The amount of the check, $12,366.32, shall be credited against Snowden’s liability 14 under the final judgment against her to reduce the amount of disgorgement still owed by $12,366.32. 15 nd 16 SIGNED this 22 day of August, 2011. 17 GARLAND E. BURRELL, JR. United States District Judge 18 19 20 21 22 23 24 25 26 27 28 -3- STIPULATION RE DISGORGEMENT

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