Securities and Exchange Commission v. Justin M Paperny, No. 2:2008cv00213 - Document 10 (C.D. Cal. 2008)
Court Description: FINAL JUDGMENT AS TO DEFENDANT JUSTIN M. PAPERNY by Judge Christina A. Snyder 9 . ITS FURTHER ORDERED, ADJUDGED, AND DECREED that in light of restitution order against Defendant in U.S. v. Justin Paperny, Case No. CR-07-60-SVW (C.D. Cal.), Court is not ordering the Defendant to pay disgorgement or a civil penalty in this action. 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. (See Judgement for details) (kpa)
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Securities and Exchange Commission v. Justin M Paperny Doc. 10 1 2 3 4 5 6 7 8 9 KAREN MATTESON, Cal. Bar No. 102103 MattesonK@sec.gov ROBERTO A. TERCERO, Cal. Bar. No. 143760 TerceroR@sec.gov Attorneys for Plaintiff Securities and Exchange Commission Rosalind R. Tyson, Regional Director Andrew Petillon, Associate Regional Director 5670 Wilshire Boulevard, 11th Floor Los Angeles, California 90036 Telephone: (323) 965-3998 Facsimile: (323) 965-3908 10 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA 11 12 WESTERN DIVISION 13 14 15 SECURITIES AND EXCHANGE COMMISSION, 16 Plaintiff, 17 Case No.: CV-08-00213-CAS (VBKx) FINAL JUDGMENT AS TO DEFENDANT JUSTIN M. PAPERNY vs. 18 19 JUSTIN M. PAPERNY, Defendant. 20 21 22 23 24 25 26 27 28 Dockets.Justia.com 1 2 3 4 5 6 7 8 9 10 11 The Securities and Exchange Commission having filed a Complaint and Defendant Justin M. Paperny having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; waived any right to appeal from this Final Judgment; and Defendant having been ordered to pay restitution in the amount of $334,995.01 in the criminal action entitled U.S. v. Justin Paperny, Case No. CR-07-00060-SVW (C.D. Cal.) to the investors alleged to have been defrauded in this action: I. 12 13 14 15 16 17 18 19 20 21 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED 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 violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 [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) 23 to employ any device, scheme, or artifice to defraud; (b) 22 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 24 light of the circumstances under which they were made, not 25 misleading; or 26 (c) 27 28 to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. * * -1- 1 2 3 4 5 6 7 8 9 10 11 12 13 II. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED 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 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, 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 fact or any omission of a material fact necessary in order to 14 make the statements made, in light of the circumstances under which 15 16 17 they were made, not misleading; or (c) operates or would operate as a fraud or deceit upon the purchaser. 18 19 20 21 22 23 24 25 26 27 28 to engage in any transaction, practice, or course of business which III. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED 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 violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 [15 U.S.C. §§ 80b-6(1) & 80b-6(2)] by, while acting as an investment adviser, using the mails or means or instrumentalities of interstate commerce, directly or indirectly: (a) to employ any device, scheme, or artifice to defraud any client or prospective client; or (b) to engage in any transaction, practice, or course of business which -2- 1 2 operates as a fraud or deceit upon any client or prospective client. 3 4 5 6 7 8 9 10 11 IV. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED 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 Judgment by personal service or otherwise are permanently restrained and enjoined from violating Section 5 of the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption: (a) of any means or instruments of transportation or communication in 12 interstate commerce or of the mails to sell such security through the 13 14 15 use or medium of any prospectus or otherwise; (b) any means or instruments of transportation, any such security for the 17 19 20 21 22 23 24 25 26 27 28 Unless a registration statement is in effect as to a security, carrying or causing to be carried through the mails or in interstate commerce, by 16 18 Unless a registration statement is in effect as to a security, making use purpose of sale or for delivery after sale; or (c) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed with the Commission as to such security, or while the registration statement is the subject of a refusal order or stop order or (prior to the effective date of the registration statement) any public proceeding or examination under Section 8 of the Securities Act [15 U.S.C. § 77h]. V. ITS FURTHER ORDERED, ADJUDGED, AND DECREED that in light of the restitution order against Defendant in U.S. v. Justin Paperny, Case No. CR-0700060-SVW (C.D. Cal.), the Court is not ordering the Defendant to pay -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 disgorgement or a civil penalty in this action. VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein. VII. 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. VIII. 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 Final Judgment forthwith and without further notice. Dated: December 4, 2008 ____________________________________ UNITED STATES DISTRICT JUDGE 20 21 22 23 24 25 26 27 28 -4-
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