United States Securities and Exchange Commission v. Cohen et al, No. 1:2019cv09645 - Document 44 (S.D.N.Y. 2020)
Court Description: FINAL JUDGMENT AS TO DEFENDANT GEORGE NIKAS: 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 "Ex change 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: as further set forth herein. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a civil penalty in the amount of $5,300,000 to the Securities and Exchange Commission pursu ant to Section 21A of the Exchange Act [15 U.S.C. § 78u-1]. Defendant shall satisfy this obligation within 30 days after entry of this Final Judgment. IT IS HEREBY ORDERED, ADJUDGED. A D DECREED that, consistent with the Court's previousl y-issued Order (ECF o. 42) modifying the above-referenced asset freeze in this case to allow for the sale of Nikas's interest in certain real property in New York, New York (the "Nikas Apartment"), the sale proceeds from the Nikas Apar tment shall be transferred to the Commission to the extent, and in the amount, necessary to satisfy any unpaid portion of the $5,300.000 civil penalty. together with any post-judgment interest, which remains after completion of the payments desc ribed in paragraphs IV and V above, with such transfer to be effected in the same manner as specified above in paragraph IV. (as further set forth herein). 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 Final Judgment. There being no just reason for delay, the Clerk is ordered to enter this Final Judgment fort forthwith and without further notice. George Nikas terminated. (Signed by Judge Colleen McMahon on 12/22/2020) (kv) Transmission to Finance Unit (Cashiers) for processing.
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United States Securities and Exchange Commission v. Cohen et al Doc. 44 Case 1:19-cv-09645-CM Document 44 Filed 12/22/20 Page 1 of 7 Case 1:19-cv-09645-CM Document 43-2 Filed 12/15/20 Page 1 of 7 USDCSDNY DOCUMENT U ITED STATES DISTRICT COURT SO UTHER DISTRICT OF EW YORK ELECTRONICALLY FILED DOC#: ;; ·. ' F FILED: lJ ITED STATES ECU RITIES A D EXC I-I A GE COMM ISS IO L_ , , / 2- /zz. /'J.O Plaintiff. Civil Action No. 19-cv-09645 (CM) V. GEORGE . IKAS. Defendant. fPnOPOSEDj FI AL ,JUDGMENT AS TO DEFENDANT GEORGE NIKAS The ' ccurities and Exchange Commission having filed a Complaint and Defendant George ikas c· ikas.. or ··Defendant"") having entered a general appearance: consented to the Court' s jurisdiction over Defendant and the subject matter of this acti on; consented to entry of this Final Judgment without admitt ing or denying the allegations of the Complaint (except as to ju risdiction and except as otherwise provided herei n in paragraph VII }; "'aived findings of fact and conclusions of law; and waived any right to appeal from th is Fina l Judgment: I. IT IS HEREBY ORDERED. ADJ UDG ED. A D DEC REED that Defendant is permanently restrained and enjoined from violating, directly or indi rectly. Section I0(b) of the Securities Exchange /\ct of 1934 (the ··Exchange Act"") 115 U.S.C. § 78j(b)I and Rule I0b-5 promulgated thereunder f 17 C.F .R. § 240.1 0b-5]. by using any means or instrumentality of interstate commerce. or of the mails. or of any facil ity 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: Dockets.Justia.com Case 1:19-cv-09645-CM Document 44 Filed 12/22/20 Page 2 of 7 Case 1:19-cv-09645-CM Document 43-2 Filed 12/15/20 Page 2 of 7 (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 Civ il Procedure 65(d)(2). the foregoing paragraph also binds the following who receive actual not ice of thi s Final 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). 11. IT IS I IEREBY f-"U RTH ER ORDERED. ADJUDGED. A 1D DECREED that Defendant is permanent!) restrained and enjoined from violating Section 14(e) of the Exchange Act l15 U.S.C. § 78n(e)I and Ru le 14e-3 [1 7 C.F.R. § 240. 14e-3] promulgated thereunder, in connection with any 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 securities sought or to be sought in such tender offer. securities convertible into or exchangeable for any such securities or any option or right to obtain or di spose of an y of the foregoing securities while in possession of material in formation relating to such tender offer that Defendant knows or has reason to know is nonpublic and knows or has rea on to knO\,\ has been acquired directly or indirectly from the offering person; the issuer of the 2 Case 1:19-cv-09645-CM Document 44 Filed 12/22/20 Page 3 of 7 Case 1:19-cv-09645-CM Document 43-2 Filed 12/15/20 Page 3 of 7 securities sought or to be sought by such tender offer: or any officer. director. partner. employee or other person acting on behalf of the o ffering person or such issuer. unless within a reasonable time prior to any such purchase or sale such in formati on and its source arc publicly di sclosed by press release or otherwise: or (b) communicating material, nonpublic information relating to a tender o ffer, which Defendant knows or has reason to know is nonpublic and knows or has reason to know has been acquired directly or indirectly from the offering person: the issuer of the securities sought or to be sought by such tender o ffer: or any officer. director. partner. employee. advi sor. or other person acting on behalf o f the offering person of such issuer. to any person under circumstances in which it is reasonably foreseeable that such communication is likel y to result in the purchase or sale of securities in the manner described in subparagraph (a) above, except that this paragraph shall not appl y to a communication made in good faith (i) to the offi cers. directors. partners or empl oyee. of the offerin g person, to its advisors or to other persons. involved in the plannin g, financing, preparation or execution of such tender offer; (ii) to the issuer whose securities arc sought or to be sought by such tender offer. to its offi cers. directors, partners. employees or advisors or to other persons involved in the planning. finan cing. preparation or execut ion of the 3 Case 1:19-cv-09645-CM Document 44 Filed 12/22/20 Page 4 of 7 Case 1:19-cv-09645-CM Document 43-2 Filed 12/15/20 Page 4 of 7 activities of the issuer with respect to such tender offer; or (iii) to any person pursuant to a requirement of any statute or rule or regulation promulgated thereunder. IT IS FURTHER ORDERED. ADJUDGED. A D DECREED that. as provided in Federal Rule of Ci vil Procedure 65(d)(2). the foregoing paragraph also binds the fo llo\, ing who receive actual notice of thi s Final Judgment by personal service or otherni se: (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). 111. IT IS FURTHER ORDERED. ADJUDGED, AND DECREED that Defendant shall pay a civil penalty in the amount of $5.300,000 to the Securities and Exchange Commission pursuant to Section 21 /\ of the Exchange Act [ 15 U.S.C. § 78u-1 l. Defendant shall satis fy this obligation '"ithin 30 days after entry of this Final Judgment. Defendant may transmit payment electronically to the Commission. which will provide detailed ACI I transfer/Fedwire instructions upon request. Payment may also be made directly from a bank account via Pay.gov through the SEC website at http://\\ ,, w.sec. gov/about/o ffices/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 Commiss ion. \\ hich shall be delivered or mailed to 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 acti on number. and name of th is Court ; ikas as a defendant in this action: and specifying that payment is made pursuant to 4 Case 1:19-cv-09645-CM Document 44 Filed 12/22/20 Page 5 of 7 Case 1:19-cv-09645-CM Document 43-2 Filed 12/15/20 Page 5 of 7 this Final Judgment. Defendant sha ll 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 send the funds paid pursuant to this Final Judgment to the United States Treasury. Defendant shall pay post-judgment interest on any delinquent amounts pursuant to 28 USC § 196 1. IV. IT IS I IEREBY ORDERED. ADJUDGED. A D DECREED that within 3 days after being served ,,ith a cop) of this Final Judgment. Charles Schwab & Co. ("Sch,,ab'") shall transfer the entire balance of the follo,, ing brokerage account. which was frozen pursuant to an Order of this Court. to the Commission: Acct. Ending in: Account Owner George *8387 ikas Schwab may transmit payment electronically to the Commission, which will provide detailed ACI I transfer/Fedwire instructions upon request. Pa) mcnt may also be made directly from a bank account via Pay.gov through the SEC website at http://\\,,w.sec.gov/about/offices/ofm.htm. Schwab also may transfer these fu nds 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 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma Cit). OK 73169 s Case 1:19-cv-09645-CM Document 44 Filed 12/22/20 Page 6 of 7 Case 1:19-cv-09645-CM Document 43-2 Filed 12/15/20 Page 6 of 7 and shall be accompanied by a letter identi fyi ng the case title. civil action number. and name of this Court: and specifying that payment is made pursuant to th is Final Judgment. V. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that within 3 days after being served with a copy of this Final Judgment. ew York Commercial Bank(" YCB") shall transfer the entire balance of the following bank account. which was frozen pursuant to an Order of this Court. to the Commission. with such transfer to be effected in the same manner as specified above in paragraph IV: Acct. Ending in: Account Owner George *3780 ikas VI. IT IS 11 1: REBY ORDERED, ADJUDG ED. A D DECREED that, consistent with the Court's previously-issued Order (ECF o. 42) modifying the above-referenced asset freeze in thi case to allow for the sale of Nikas·s interest in certa in real property in ew York. New York (the .. , ikas Apartment"). the sa le proceeds from the ikas /\partmcnt shall be transferred to the Commission to the extent. and in the amount, necessary to sati sfy any unpaid portion of the $5,300.000 civil penalty. together with any post-judgment interest. wh ich remains after completion of the payments described in paragraphs IV and V above. with such transfer to be effected in the same manner as speci fi ed above in paragraph IV. VII. IT IS FURTHER ORDERED. /\DJUDGED. AND DECREl: D that. solely for purposes of e:-.ception. to discharge set forth in Section 523 of the Bankruptcy Code. 11 U.S.C. § 523. the allegations in the complai nt are true and admitted by Defendant, and further. any debt for 6 Case 1:19-cv-09645-CM Document 44 Filed 12/22/20 Page 7 of 7 Case 1.19-cv-09645-CM Document 43-2 Filed 12/1 5/20 Page 7 of 7 disgorgement, prej udgment interest, civil penalty or other amounts due by Defendant under th is Final Judgment or any other judgment, order. consent order, decree or settlement agreement entered in connection with this proceeding, is a debt for the violation by Defendant of the federal securities laws or any regulation or order issued under such laws. as set forth in Section 523(a)( 19) of the Bankruptcy Code. 11 U.S.C. § 523(a)( 19). VI 11. IT IS FURTI IER ORDERED. ADJUDGED, A D DECR EED that this Court shall retain jurisdict ion of thi s matter fo r the purposes of enforcing the terms of th is Final Judgment. IX. There being no just reason for delay, the Clerk is ordered to enter this Final Judgment forth\\ ith and v, ithout further notice. ' /! L'/ (.,.' -!Xtr..._ u 7 ..! J,•:~ .. • I I ;,.., • p ~, -
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