Securities and Exchange Commission v. Rinfret et al, No. 1:2019cv06037 - Document 40 (S.D.N.Y. 2020)

Court Description: FINAL JUDGMENT AND ORDER AS TO DEFENDANT PLANDOME PARTNERS LLC. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the motion is GRANTED. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from 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 thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interst ate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security: (a) to employ any device, scheme, or artifice to defraud, and as further specified herein. IT IS HEREBY FU RTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for a civil penalty in the amount of $775,000.00. Defendant shall satisfy this obligation by paying $775,000.00 to the Securities and Exchange Commission within 30 days after ent ry of this Final Judgment. Defendant may transmit payment electronically to the Commission, and as further specified and set forth in this FINAL JUDGMENT AND ORDER AS TO DEFENDANT PLANDOME PARTNERS LLC. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED th at this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Judgment. There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Judgment forthwith and without further notice. Plandome Partners LLC terminated. (Signed by Judge Alison J. Nathan on 12/16/2020) (Attachments: #(1) Appeal Package) (rjm)

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Securities and Exchange Commission v. Rinfret et al Doc. 40 Case1:19-cv-06037-AJN 1:19-cv-06037-AJN Document Document38-2 40 Filed Case Filed12/16/20 11/20/20 Page Page11ofof55 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK __________________________________________ ) SECURITIES AND EXCHANGE ) COMMISSION, ) ) Plaintiff, ) ) v. ) ) PAUL ANDREWS RINFRET and ) PLANDOME PARTNERS LLC ) ) Defendants, ) __________________________________________ 12/16/20 19-civ.-06037 (AJN) FINAL JUDGMENT AND ORDER AS TO DEFENDANT PLANDOME PARTNERS LLC The Securities and Exchange Commission (“Commission”) having filed a Complaint on June 28, 2019, defendant Plandome Partners LLC (“Plandome LLC” or “Defendant”) having failed to answer, plead, or otherwise defend this action, the Court having issued an Order on November 9, 2020 finding that the Commission is entitled to a default judgment against Plandome LLC, the Court having considered the Commission’s motion for entry of a default judgment and all the pleadings and evidence submitted in support thereof; and the Court having determined that defendant Plandome LLC is not an infant or incompetent person and is not in the military service of the United States: I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the motion is GRANTED. Dockets.Justia.com Case1:19-cv-06037-AJN 1:19-cv-06037-AJN Document Document38-2 40 Filed Case Filed12/16/20 11/20/20 Page Page22ofof55 II. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from 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 thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security: (a) to employ any device, scheme, or artifice to defraud; (b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). III. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, 2 Case Filed12/16/20 11/20/20 Page Page33ofof55 Case1:19-cv-06037-AJN 1:19-cv-06037-AJN Document Document38-2 40 Filed directly or indirectly: (a) to employ any device, scheme, or artifice to defraud; (b) to obtain money or property by means of any untrue statement of a material factor any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). IV. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for a civil penalty in the amount of $775,000.00. Defendant shall satisfy this obligation by paying $775,000.00 to the Securities and Exchange Commission within 30 days after entry of this Final Judgment. Defendant may transmit payment electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified check, bank cashier’s check, or United States postal money order payable to the Securities and Exchange Commission, which shall be delivered or mailed to 3 Case1:19-cv-06037-AJN 1:19-cv-06037-AJN Document Document38-2 40 Filed Case Filed12/16/20 11/20/20 Page Page44ofof55 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 and shall be accompanied by a letter identifying the case title, civil action number, and name of this Court; Rinfret as a defendant in this action; and specifying that payment is made pursuant to this Final Judgment. Defendant shall simultaneously transmit photocopies of evidence of payment and case identifying information to the Commission’s counsel in this action. By making this payment, Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part of the funds shall be returned to Defendant. The Commission shall hold the funds (collectively, the “Fund”) and may propose a plan to distribute the Fund subject to the Court’s approval. The Court shall retain jurisdiction over the administration of any distribution of the Fund. If the Commission staff determines that the Fund will not be distributed, the Commission shall send the funds paid pursuant to this Final Judgment to the United States Treasury. The Commission may enforce the Court’s judgment for disgorgement and prejudgment interest by moving for civil contempt (and/or through other collection procedures authorized by law) at any time after 30 days following entry of this Final Judgment. Defendant shall pay post judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961. 4 Case Case1:19-cv-06037-AJN 1:19-cv-06037-AJN Document Document38-2 40 Filed Filed12/16/20 11/20/20 Page Page55ofof55 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Judgment. VI. There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Judgment forthwith and without further notice. December 16, 2020 Dated: ______________, ______ ____________________________________ Hon. Alison J. Nathan UNITED STATES DISTRICT JUDGE 5

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