Securities and Exchange Commission v. Enviro Board Corporation et al, No. 2:2016cv06427 - Document 65 (C.D. Cal. 2018)
Court Description: FINAL JUDGMENT AS TO DEFENDANT JOSHUA D. MOSSHART by Judge Manuel L. Real: IT IS HEREBY ORDERED that the Securities and Exchange Commission's ("SEC") Motion for Entry of Default Judgment against Defendant Joshua D. Mosshart 26 and th e SEC's Motion To Set a Civil Penalty, Order an Adjusted Disgorgement Amount, and Enter Final Judgment Against Defendant Joshua D. Mosshart 61 are GRANTED. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $293,655.00, representing ill-gotten gains obtained as a result of the conduct alleged in the Complaint, plus prejudgment interest thereon in the amount of $30,240.41, and a civil penalty amount of $293,655.00 pursuant to Section 20 (d)(2)(A) of the Securities Act and Section 21(d)(3)(B) of the Exchange Act, for a total of $617,550.41. Defendant shall satisfy this obligation by paying $617,550.41to the SEC within 14 days after entry of this Judgment. See document for injunctive relief and other details. (gk)
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Securities and Exchange Commission v. Enviro Board Corporation et al Doc. 65 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 Western Division 11 12 13 SECURITIES AND EXCHANGE COMMISSION, 14 Plaintiff, 15 16 Case No. 2:16-cv-06427-R-SS FINAL JUDGMENT AS TO DEFENDANT JOSHUA D. MOSSHART vs. 18 ENVIRO BOARD CORPORATION, GLENN B. CAMP, WILLIAM J. PEIFFER, and JOSHUA D. MOSSHART, 19 Defendants. 17 20 21 22 23 24 25 26 27 28 Dockets.Justia.com 1 This matter came before the Court on the Securities and Exchange 2 Commission’s (“SEC”) Motion for Entry of Default Judgment against Defendant 3 Joshua D. Mosshart and the SEC’s Motion To Set a Civil Penalty, Order an Adjusted 4 Disgorgement Amount, and Enter Final Judgment Against Defendant Joshua D. 5 Mosshart (collectively, the “Motions”). The Court having considered the SEC’s 6 Complaint, the Motions, the supporting Memoranda of Points and Authorities, the 7 supporting declarations and exhibits, and the other evidence and argument presented 8 to the Court, finds that: 9 10 I. IT IS HEREBY ORDERED that the SEC’s Motion for Default Judgment 11 against Defendant Joshua D. Mosshart and the SEC’s Motion to Set a Civil Penalty, 12 Order an Adjusted Disgorgement Amount, and Enter Final Judgment against 13 Defendant Joshua D. Mosshart are GRANTED. 14 II. 15 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 16 Defendant is permanently restrained and enjoined from violating Section 5 of the 17 Securities Act of 1933 (“Securities Act”) [15 U.S.C. §§ 77e, by directly or indirectly, 18 in the absence of any applicable exemption: 19 (a) Unless a registration statement is in effect as to a security, making use of 20 any means or instruments of transportation or communication in 21 interstate commerce or of the mails to sell such security through the use 22 or medium of any prospectus or otherwise; 23 (b) Unless a registration statement is in effect as to a security, carrying or 24 causing to be carried through the mails or in interstate commerce, by any 25 means or instruments of transportation, any such security for the purpose 26 of sale or for delivery after sale; or 27 28 (c) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or 1 1 offer to buy through the use or medium of any prospectus or otherwise 2 any security, unless a registration statement has been filed with the 3 Commission as to such security, or while the registration statement is the 4 subject of a refusal order or stop order or (prior to the effective date of 5 the registration statement) any public proceeding or examination under 6 Section 8 of the Securities Act [15 U.S.C. § 77h]. 7 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 8 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 9 bind the following who receive actual notice of this Judgment by personal service or 10 otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and 11 (b) other persons in active concert or participation with Defendant or with anyone 12 described in (a). 13 III. 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 15 is permanently restrained and enjoined from violating Section 15(a) of the Securities 16 Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78o(a)] in connection with the 17 purchase or sale of a security, by the use of means or instrumentalities or interstate 18 commerce, of the mails, or of the facilities of a national securities exchange, directly 19 or indirectly effecting transactions in, or inducing or attempting to induce the 20 purchase or sale of, securities without being registered with the SEC, or affiliated 21 with a broker-dealer registered with the SEC. 22 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 23 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 24 bind the following who receive actual notice of this Judgment by personal service or 25 otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and 26 (b) other persons in active concert or participation with Defendant or with anyone 27 described in (a). 28 2 1 IV. 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 3 is liable for disgorgement of $293,655.00, representing ill-gotten gains obtained as a 4 result of the conduct alleged in the Complaint, plus prejudgment interest thereon in 5 the amount of $30,240.41, and a civil penalty amount of $293,655.00 pursuant to 6 Section 20(d)(2)(A) of the Securities Act and Section 21(d)(3)(B) of the Exchange 7 Act, for a total of $617,550.41. Defendant shall satisfy this obligation by paying 8 $617,550.41to the SEC within 14 days after entry of this Judgment. 9 Defendant may transmit payment electronically to the SEC, which will provide 10 detailed ACH transfer/Fedwire instructions upon request. Payment may also be made 11 directly from a bank account via Pay.gov through the SEC website at 12 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 13 check, bank cashier’s check, or United States postal money order payable to the 14 Securities and Exchange Commission, which shall be delivered or mailed to: 15 16 17 Enterprise Service Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 18 and shall be accompanied by a letter identifying the case title, civil action number, 19 and name of this Court; Joshua Mosshart as a defendant in this action; and specifying 20 that payment is made pursuant to this Judgment. 21 Defendant shall simultaneously transmit photocopies of evidence of payment 22 and case identifying information to the SEC’s counsel in this action. By making this 23 payment, Defendant relinquishes all legal and equitable right, title, and interest in 24 such funds and no part of the funds shall be returned to Defendant. 25 The Commission may enforce the Court’s judgment for disgorgement and 26 prejudgment interest by moving for civil contempt (and/or through other collection 27 procedures authorized by law) at any time after 14 days following entry of this Final 28 Judgment. Defendant shall pay post judgment interest on any delinquent amounts 3 1 pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds, together with 2 any interest and income earned thereon (collectively, the “Fund”), pending further 3 order of the Court. 4 The Commission may propose a plan to distribute the Fund subject to the 5 Court’s approval. Such a plan may provide that the Fund shall be distributed 6 pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 7 2002. The Court shall retain jurisdiction over the administration of any distribution 8 of the Fund. If the Commission staff determines that the Fund will not be distributed, 9 the Commission shall send the funds paid pursuant to this Final Judgment to the 10 11 United States Treasury. Regardless of whether any such Fair Fund distribution is made, amounts 12 ordered to be paid as civil penalties pursuant to this Judgment shall be treated as 13 penalties paid to the government for all purposes, including all tax purposes. To 14 preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or 15 reduction of any award of compensatory damages in any Related Investor Action 16 based on Defendant’s payment of disgorgement in this action, argue that he is entitled 17 to, nor shall he further benefit by, offset or reduction of such compensatory damages 18 award by the amount of any part of Defendant’s payment of a civil penalty in this 19 action (“Penalty Offset”). If the court in any Related Investor Action grants such a 20 Penalty Offset, Defendant shall, within 30 days after entry of a final order granting 21 the Penalty Offset, notify the Commission’s counsel in this action and pay the amount 22 of the Penalty Offset to the United States Treasury or to a Fair Fund, as the 23 Commission directs. Such a payment shall not be deemed an additional civil penalty 24 and shall not be deemed to change the amount of the civil penalty imposed in this 25 Judgment. For purposes of this paragraph, a “Related Investor Action” means a 26 private damages action brought against Defendant by or on behalf of one or more 27 investors based on substantially the same facts as alleged in the Complaint in this 28 action. 4 1 2 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 3 shall retain jurisdiction of this matter for p p purposes of enforcing the terms of this g 4 Judgment. 5 6 7 8 March 21, 2018 Dated: ____________________ ________________________________ ________________________________ _ HONORABLE MANUEL L. REAL HONORABLE O UNITED STATES DISTRICT JUDGE 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5
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