United States Securities and Exchange Commission v. Jilbert Tahmazian, No. 2:2016cv00954 - Document 18 (C.D. Cal. 2016)
Court Description: FINAL JUDGMENT AS TO DEFENDANT JILBERT TAHMAZIAN by Judge Michael W. Fitzgerald. See Judgment for details. (MD JS-6, Case Terminated). (jy)
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United States Securities and Exchange Commission v. Jilbert Tahmazian 1 2 3 4 5 6 7 Doc. 18 JOHN W. BERRY (Cal. Bar. No. 295760) Email: berryj@sec.gov ANSU N. BANERJE (D.C. Bar No. 440660) Email: banerjeea@sec.gov JS-6 Attorneys for Plaintiff Securities and Exchange Commission Michele Wein Layne, Regional Director John W. Berry, Regional Trial Counsel 444 S. Flower Street, Suite 900 Los Angeles, California 90071 Telephone: (323) 965-3998 Facsimile: (213) 443-1904 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 Western Division 11 12 Case No. 2:16-CV-954-MWF 13 SECURITIES AND EXCHANGE COMMISSION, 14 Plaintiff, FINAL JUDGMENT AS TO DEFENDANT JILBERT TAHMAZIAN 15 16 17 vs. JILBERT TAHMAZIAN, ESQ., Defendant. 18 19 The Securities and Exchange Commission (“SEC”) having filed a Complaint 20 and Defendant Jilbert Tahmazian (“Defendant”) having entered a general appearance; 21 consented to the Court’s jurisdiction over Defendant and the subject matter of this 22 action; consented to entry of this Final Judgment without admitting or denying the 23 allegations of the First Amended Complaint (except as to jurisdiction and except as 24 otherwise provided herein in paragraph XVI); waived findings of fact and 25 conclusions of law; and waived any right to appeal from this Final Judgment: I. 26 27 28 IT IS HEREBY ORDERED, ADJUDGED AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section FINAL JUDGMENT AS TO DEFENDANT 1 Case No. 2:16-CV-954-MWF Dockets.Justia.com 1 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 2 78j(b)] and Rule 10b-5(a) and (c) promulgated thereunder [17 C.F.R. § 240.10b-5], 3 by using any means or instrumentality of interstate commerce, or of the mails, or of 4 any facility of any national securities exchange, in connection with the purchase or 5 sale of any security: 6 (a) to employ any device, scheme, or artifice to defraud; or 7 (b) to engage in any act, practice, or course of business which operates or 8 9 would operate as a fraud or deceit upon any person. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that, as provided 10 in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the 11 following who receive actual notice of this Final Judgment by personal service or 12 otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and 13 (b) other persons in active concert or participation with Defendant or with anyone 14 described in (a). II. 15 16 IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that 17 Defendant is permanently restrained and enjoined from violating Section 17(a)(1) and 18 17(a)(3) of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in 19 the offer or sale of any security by the use of any means or instruments of 20 transportation or communication in interstate commerce or by use of the mails, 21 directly or indirectly: 22 (a) to employ any device, scheme, or artifice to defraud; or 23 (b) to engage in any transaction, practice, or course of business which 24 25 operates or would operate as a fraud or deceit upon the purchaser. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that, as provided 26 in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the 27 following who receive actual notice of this Final Judgment by personal service or 28 otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and FINAL JUDGMENT AS TO DEFENDANT 2 Case No. 2:16-CV-954-MWF 1 (b) other persons in active concert or participation with Defendant or with anyone 2 described in (a). III. 3 4 IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that 5 Defendant is permanently restrained and enjoined from violating Sections 5(a) and 6 5(c) of the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence 7 of any applicable exemption: 8 9 (a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in interstate commerce 10 or of the mails to sell such security through the use or medium of any prospectus or 11 otherwise; or 12 (b) Making use of any means or instruments of transportation or 13 communication in interstate commerce or of the mails to offer to sell or offer to buy 14 through the use or medium of any prospectus or otherwise any security, unless a 15 registration statement has been filed with the SEC as to such security, or while the 16 registration statement is the subject of a refusal order or stop order or (prior to the 17 effective date 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 provided 20 in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the 21 following who receive actual notice of this Final Judgment by personal service or 22 otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and 23 (b) other persons in active concert or participation with Defendant or with anyone 24 described in (a). IV. 25 26 IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that 27 Defendant is liable for disgorgement of $40,000, representing profits gained as a 28 result of the conduct alleged in the First Amended Complaint, together with FINAL JUDGMENT AS TO DEFENDANT 3 Case No. 2:16-CV-954-MWF 1 prejudgment interest thereon in the amount of $6,524, and a civil penalty in the 2 amount of $150,000 pursuant to Section 20(d) of the Securities Act and Section 3 21(d)(3) of the Exchange Act. Defendant shall satisfy this obligation by paying 4 $196,524 to the Securities and Exchange Commission pursuant to the terms of the 5 payment schedule set forth in paragraph V below after entry of this Final Judgment. 6 Defendant may transmit payment electronically to the SEC, which will provide 7 detailed ACH transfer/Fedwire instructions upon request. Payment may also be made 8 directly from a bank account via Pay.gov through the SEC website at 9 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 10 check, bank cashier’s check, or United States postal money order payable to the 11 Securities and Exchange Commission, which shall be delivered or mailed to 12 Enterprise Services Center 13 Accounts Receivable Branch 14 6500 South MacArthur Boulevard 15 Oklahoma City, OK 73169 16 and shall be accompanied by a letter identifying the case title, civil action number, 17 and name of this Court; Jilbert Tahmazian as a defendant in this action; and 18 specifying that payment is made pursuant to this Final Judgment. Defendant shall 19 simultaneously transmit photocopies of evidence of payment and case identifying 20 information to the SEC’s counsel in this action. By making this payment, Defendant 21 relinquishes all legal and equitable right, title, and interest in such funds and no part 22 of the funds shall be returned to Defendant. The SEC shall send the funds paid 23 pursuant to this Final Judgment to the United States Treasury. The SEC may enforce 24 the Court’s judgment for disgorgement and prejudgment interest by moving for civil 25 contempt (and/or through other collection procedures authorized by law) at any time 26 after 14 days following entry of this Final Judgment]. Defendant shall pay post 27 judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961. 28 /// FINAL JUDGMENT AS TO DEFENDANT 4 Case No. 2:16-CV-954-MWF V. 1 IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that 2 3 Tahmazian shall pay the total of disgorgement, prejudgment interest, and penalty due 4 of $196,524 in four installment payments according to the following schedule: (1) an 5 initial payment of $50,000 within 14 days of entry of this Final Judgment; (2) a 6 second payment of $50,000 within 180 days of entry of this Final Judgment; (3) a 7 third payment of $50,000 within 270 days of entry of this Final Judgment; and (4) a 8 fourth and final payment of $46,524 within 330 days of entry of this Final Judgment. 9 Payments shall be deemed made on the date they are received by the SEC and shall 10 be applied first to post judgment interest, which accrues pursuant to 28 U.S.C. § 1961 11 on any unpaid amounts due after 14 days of the entry of Final Judgment. Prior to 12 making the final payment set forth herein, Tahmazian shall contact the staff of the 13 SEC for the amount due for the final payment. If Tahmazian fails to make any 14 payment by the date agreed and/or in the amount agreed according to the schedule set 15 forth above, all outstanding payments under this Final Judgment, including post- 16 judgment interest, minus any payments made, shall become due and payable 17 immediately at the discretion of the staff of the SEC without further application to the 18 Court. VI. 19 20 IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that 21 the Consent is incorporated herein with the same force and effect as if fully set forth 22 herein, and that Defendant shall comply with all of the undertakings and agreements 23 set forth therein. VII. 24 25 IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that, 26 solely for purposes of exceptions to discharge set forth in Section 523 of the 27 Bankruptcy Code, 11 U.S.C. §523, the allegations in the complaint are true and 28 admitted by Defendant, and further, any debt for disgorgement, prejudgment interest, FINAL JUDGMENT AS TO DEFENDANT 5 Case No. 2:16-CV-954-MWF 1 civil penalty or other amounts due by Defendant under this Final Judgment or any 2 other judgment, order, consent order, decree or settlement agreement entered in 3 connection with this proceeding, is a debt for the violation by Defendant of the 4 federal securities laws or any regulation or order issued under such laws, as set forth 5 in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19). 6 7 VIII. IT IS HEREBY FURTHER ORDERED, ADJUDGED AND DECREED that 8 this Court shall retain jurisdiction of this matter for the purposes of enforcing the 9 terms of this Final Judgment. 10 11 Dated: August 26, 2016 12 13 _________________________________ HONORABLE MICHAEL W. FITZGERALD UNITED STATES DISTRICT JUDGE 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 FINAL JUDGMENT AS TO DEFENDANT 6 Case No. 2:16-CV-954-MWF
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