U.S. Securities and Exchange Commission v. Mimun et al, No. 2:2021cv01314 - Document 20 (D. Nev. 2024)
Court Description: FINAL JUDGMENT as to Defendants Jonathan Mimun and Ronn Benharav. Re: 18 Motion for Default Judgment. This Court will retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. Signed by District Judge Anne R. Traum on 3/29/2024. (Copies have been distributed pursuant to the NEF - AF)
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U.S. Securities and Exchange Commission v. Mimun et al Doc. 20 1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 8 9 10 11 SECURITIES AND EXCHANGE COMMISSION, 12 Plaintiff, 13 14 15 16 17 vs. Case No. 2:21-cv-01314-ART-MDC FINAL JUDGMENT AS TO DEFENDANTS MIMUN AND BENHARAV JONATHAN MIMUN (A/K/A JONATHAN MAYMON) and RONN BENHARAV, Defendants. 18 19 20 21 22 23 24 25 26 27 28 Dockets.Justia.com 1 The Securities and Exchange Commission (“SEC”) has filed a Complaint 2 against Defendants Jonathan Mimun (“Mimun”) and Ronn BenHarav (“BenHarav”). 3 Mimun and BenHarav failed to appear or otherwise respond to the Complaint and 4 the Clerk entered an order of default against them on September 9, 2022. ECF No. 5 17. The SEC filed a Motion for Entry of Default Judgment against each Defendant, 6 ECF No. 18, who did not oppose the motion or otherwise respond. 7 Having reviewed the SEC’s Motion for Entry of Default Judgment, and being 8 duly advised, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED, that the 9 SEC’s Motion for Entry of Default Judgment against Mimun and BenHarav is 10 GRANTED. 11 I. 12 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants 13 Mimun and BenHarav are permanently restrained and enjoined from violating, 14 directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the 15 “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 16 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, 17 or of the mails, or of any facility of any national securities exchange, in connection 18 with the purchase or sale of any security: 19 (a) to employ any device, scheme, or artifice to defraud; 20 (b) to make any untrue statement of a material fact or to omit to state a 21 material fact necessary in order to make the statements made, in the 22 light of the circumstances under which they were made, not misleading; 23 or 24 25 (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 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 27 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 28 2 1 binds the following who receive actual notice of this Final Judgment by personal 2 service or otherwise: (a) either Defendant’s officers, agents, servants, employees, 3 and attorneys; and (b) other persons in active concert or participation with either 4 Defendant or with anyone described in (a). 5 II. 6 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 7 Defendants Mimun and BenHarav are permanently restrained and enjoined from 8 violating Section 17(a) of the Securities Act of 1933 (the “Securities Act”) [15 9 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or 10 instruments of transportation or communication in interstate commerce or by use of 11 the mails, 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 15 make the statements made, in light of the circumstances under which 16 they were made, not misleading; or 17 18 (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 19 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 20 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 21 binds the following who receive actual notice of this Final Judgment by personal 22 service or otherwise: (a) either Defendant’s officers, agents, servants, employees, 23 and attorneys; and (b) other persons in active concert or participation with either 24 Defendant or with anyone described in (a). 25 III. 26 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 27 Defendants Mimun and BenHarav are permanently restrained and enjoined from 28 3 1 violating Section 5 of the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, 2 in the absence of any applicable exemption: 3 (a) Unless a registration statement is in effect as to a security, making use 4 of any means or instruments of transportation or communication in 5 interstate commerce or of the mails to sell such security through the use 6 or medium of any prospectus or otherwise; 7 (b) Unless a registration statement is in effect as to a security, carrying or 8 causing to be carried through the mails or in interstate commerce, by 9 any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale; or 10 11 (c) Making use of any means or instruments of transportation or 12 communication in interstate commerce or of the mails to offer to sell or 13 offer to buy through the use or medium of any prospectus or otherwise 14 any security, unless a registration statement has been filed with the 15 Commission as to such security, or while the registration statement is 16 the subject of a refusal order or stop order or (prior to the effective date 17 of the registration statement) any public proceeding or examination 18 under Section 8 of the Securities Act [15 U.S.C. § 77h]. 19 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 20 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 21 binds the following who receive actual notice of this Final Judgment by personal 22 service or otherwise: (a) either Defendant’s officers, agents, servants, employees, 23 and attorneys; and (b) other persons in active concert or participation with either 24 Defendant or with anyone described in (a). 25 IV. 26 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 27 Defendants Mimun and BenHarav are permanently restrained and enjoined from, 28 4 1 directly or indirectly, controlling any broker or dealer which is either a person other 2 than a natural person or a natural person not associated with a broker or dealer which 3 is a person other than a natural person (other than such a broker or dealer whose 4 business is exclusively intrastate and who does not make use of any facility of a 5 national securities exchange) who violates Section 15(a)(1) of the Exchange Act [15 6 U.S.C. § 78o(a)] by making use of the mails or any means or instrumentality of 7 interstate commerce to effect any transactions in, or to induce or attempt to induce 8 the purchase or sale of, any security (other than an exempted security or commercial 9 paper, bankers’ acceptances, or commercial bills) without being registered in 10 accordance with Section 15(a)(1) [15 U.S.C. §78o(b)], unless Defendant acts in good 11 faith and does not directly or indirectly induce the act or acts constituting the 12 violation. 13 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 14 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 15 binds the following who receive actual notice of this Final Judgment by personal 16 service or otherwise: (a) either Defendant’s officers, agents, servants, employees, 17 and attorneys; and (b) other persons in active concert or participation with either 18 Defendant or with anyone described in (a). 19 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 20 Defendants Mimun and BenHarav are permanently restrained and enjoined from 21 aiding and abetting any violation of Section 15(a)(1) of the Exchange Act [15 U.S.C. 22 § 78o(a)] by knowingly or recklessly providing substantial assistance to any broker 23 or dealer which is either a person other than a natural person or a natural person not 24 associated with a broker or dealer which is a person other than a natural person (other 25 than such a broker or dealer whose business is exclusively intrastate and who does 26 not make use of any facility of a national securities exchange) who violates Section 27 15(a)(1) of the Exchange Act [15 U.S.C. § 78o(a)] by making use of the mails or 28 5 1 check, bank cashier’s check, or United States postal money order payable to 2 the Securities and Exchange Commission, which shall be delivered or mailed to: Enterprise Services Center 3 Accounts Receivable Branch 4 6500 South MacArthur Boulevard Oklahoma City, OK 73169 5 6 and shall be accompanied by a letter identifying the case title, civil action number, 7 and name of this Court; Defendants’ names as defendants in this action; and 8 specifying that payment is made pursuant to this Final Judgment. 9 Defendants shall simultaneously transmit photocopies of evidence of payment 10 and case identifying information to the Commission’s counsel in this action. By 11 making this payment, Defendants relinquish all legal and equitable right, title, and 12 interest in such funds and no part of the funds shall be returned to Defendants. 13 The Commission may enforce the Court’s judgment for disgorgement and 14 prejudgment interest by using all collection procedures authorized by law, including, 15 but not limited to, moving for civil contempt at any time after 30 days following 16 entry of this Final Judgment. 17 The Commission may enforce the Court’s judgment for penalties by the use 18 of all collection procedures authorized by law, including the Federal Debt Collection 19 Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil contempt for the 20 violation of any Court orders issued in this action. Defendants shall pay post 21 judgment interest on any amounts due after 30 days of the entry of this Final 22 Judgment pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds, 23 together with any interest and income earned thereon (collectively, the “Fund”), 24 pending further order of the Court. 25 The Commission may propose a plan to distribute the Fund subject to the 26 Court’s approval. Such a plan may provide that the Fund shall be distributed 27 28 7 1 pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2 2002. The Court shall retain jurisdiction over the administration of any distribution 3 of the Fund and the Fund may only be disbursed pursuant to an Order of the Court. 4 Regardless of whether any such Fair Fund distribution is made, amounts 5 ordered to be paid as civil penalties pursuant to this Judgment shall be treated as 6 penalties paid to the government for all purposes, including all tax purposes. To 7 preserve the deterrent effect of the civil penalty, neither Defendant shall, after offset 8 or reduction of any award of compensatory damages in any Related Investor Action 9 based on any payment of disgorgement in this action, argue that they are entitled to, 10 nor shall they further benefit by, offset or reduction of such compensatory damages 11 award by the amount of any part of the payment of a civil penalty in this action 12 (“Penalty Offset”). If the court in any Related Investor Action grants such a Penalty 13 Offset, Defendants shall, within 30 days after entry of a final order granting the 14 Penalty Offset, notify the Commission’s counsel in this action and pay the amount 15 of the Penalty Offset to the United States Treasury or to a Fair Fund, as the 16 Commission directs. Such a payment shall not be deemed an additional civil penalty 17 and shall not be deemed to change the amount of the civil penalty imposed in this 18 Judgment. For purposes of this paragraph, a “Related Investor Action” means a 19 private damages action brought against either Defendant by or on behalf of one or 20 more investors based on substantially the same facts as alleged in the Complaint in 21 this action. 22 VI. 23 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, for 24 purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 25 11 U.S.C. §523, the allegations in the complaint are true and admitted by each 26 Defendant, and further, any debt for disgorgement, prejudgment interest, civil 27 penalty or other amounts due by each Defendant under this Final Judgment or any 28 8 1 other judgment, order, consent order, decree or settlement agreement entered in 2 connection with this proceeding, is a debt for the violation by each Defendant of the 3 federal securities laws or any regulation or order issued under such laws, as set forth 4 in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19). 5 VII. 6 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 7 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 8 Final Judgment. 9 10 11 12 Dated: March 29, 2024 ____________________________________ UNITED STATES DISTRICT JUDGE 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9
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