Securities and Exchange Commission v. Nasir N. Shakouri et al, No. 2:2017cv01929 - Document 33 (C.D. Cal. 2017)
Court Description: FINAL JUDGMENT by Judge Stephen V. Wilson, in favor of Securities and Exchange Commission against Bronson L. Quon Related to: Stipulation for Judgment 27 . IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and e njoined 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: (see document for further details). (mrgo)
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Securities and Exchange Commission v. Nasir N. Shakouri et al Doc. 33 1 2 3 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 FOR THE CENTRAL DISTRICT OF CALIFORNIA 11 12 SECURITIES AND EXCHANGE COMMISSION, 13 Plaintiff, 14 15 16 17 vs. Case No. 2:17-cv-01929-SVW-PLA NASIR N. SHAKOURI, ROBERT S. TORINO, BRONSON L. QUON, JOHN S. HONG, and JONATHAN K. SKARIE, Defendants. 18 19 FINAL JUDGMENT AS TO DEFENDANT BRONSON L. QUON 20 The Securities and Exchange Commission having filed a Complaint and 21 22 Defendant Bronson L. Quon (“Defendant”) having entered a general appearance; 23 consented to the Court’s jurisdiction over Defendant and the subject matter of this 24 action; consented to entry of this Final Judgment; waived findings of fact and 25 26 conclusions of law; and waived any right to appeal from this Final Judgment: 27 28 Dockets.Justia.com I. 1 2 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 3 4 5 6 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 7 8 9 10 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: 11 12 (a) to employ any device, scheme, or artifice to defraud; 13 (b) to make any untrue statement of a material fact or to omit to state a 14 material fact necessary in order to make the statements made, in the light 15 of the circumstances under which they were made, not misleading; or 16 17 18 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 19 20 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 21 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 22 binds the following who receive actual notice of this Judgment by personal service or 23 24 otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and 25 (b) other persons in active concert or participation with Defendant or with anyone 26 27 described in (a). 28 2 II. 1 2 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 3 4 5 6 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 7 8 9 10 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 11 12 material fact or any omission of a material fact necessary in order to 13 make the statements made, in light of the circumstances under which 14 they were made, not misleading; or 15 16 17 18 (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 19 20 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 21 binds the following who receive actual notice of this Judgment by personal service or 22 otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and 23 24 (b) other persons in active concert or participation with Defendant or with anyone 25 described in (a). 26 27 28 3 III. 1 2 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 3 4 5 6 Defendant is permanently restrained and enjoined from aiding and abetting any violation of Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)] and Rules 12b20 and 15d-1 promulgated thereunder [17 C.F.R. §§ 240.12b-20, 240.15d-1] by 7 8 9 knowingly or recklessly providing substantial assistance to an issuer that: (a) 10 fails to file an annual report within the period specified in the appropriate report form for the fiscal year in which a registration 11 12 statement under the Securities Act became effective and for each fiscal 13 year thereafter, unless the registrant is exempt from such filing by 14 Section 15(d) of the Exchange Act or the rules thereunder; or 15 16 17 18 (b) fails to include in an annual report the information expressly required to be included in an annual report and such further material information as may be necessary to make the required statements, in the light of the 19 20 circumstances under which they are made not misleading. 21 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 22 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 23 24 binds 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 27 28 (b) other persons in active concert or participation with Defendant or with anyone described in (a). 4 IV. 1 2 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 3 4 5 6 Defendant is permanently restrained and enjoined from aiding and abetting any violation of Section 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act [15 U.S.C. § 78m(b)(2)(A), (B)] by knowingly or recklessly providing substantial assistance to an 7 8 9 10 issuer that fails to make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the issuer or to devise and maintain a system of internal accounting controls sufficient 11 12 13 to provide reasonable assurances that: (a) 14 transactions are executed in accordance with management’s general or specific authorization; 15 16 (b) 17 transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles 18 or any other criteria applicable to such statements, and to maintain 19 accountability for assets; 20 21 (c) 22 access to assets is permitted only in accordance with management’s general or specific authorization; and 23 24 25 26 27 (d) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 28 5 1 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 3 4 5 6 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 7 8 described in (a). 9 10 V. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 11 12 permanently restrained and enjoined from violating, directly or indirectly, Section 13 13(b)(5) of the Exchange Act [15 U.S.C. § 78m(b)(5)] and Rule 13b2-1 promulgated 14 thereunder [17 C.F.R. § 240.13b2-1], by knowingly failing to implement a system of 15 16 internal accounting controls or falsifying or causing to be falsified any book, record, 17 or account subject to Section 13(b)(2) of the Exchange Act. 18 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 19 20 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 21 binds the following who receive actual notice of this Judgment by personal service or 22 otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and 23 24 (b) other persons in active concert or participation with Defendant or with anyone 25 described in (a). 26 27 28 6 VI. 1 2 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 3 4 5 6 permanently restrained and enjoined from violating, directly or indirectly, Rule 13b22 promulgated under the Exchange Act [17 C.F.R. § 240.13b2-2] by, while acting as a director or officer: 7 8 (a) 9 making or causing to be made a materially false statement to an accountant in connection with, or omitting to state, or causing another 10 person to omit to state, any material fact necessary in order to make 11 12 statements made, in light of the circumstances under which such 13 statements are made, not misleading, to an accountant in connection with 14 any required audit, review or examination of the financial statements of 15 16 the issuer or the preparation or filing of any document or report required 17 to be filed with the Commission; or 18 (b) taking any action to coerce, manipulate, mislead, or fraudulently 19 20 influence any independent public or certified public accountant engaged 21 in the performance of an audit or review of the financial statements of an 22 issuer that are required to be filed with the Commission if it is known or 23 24 should be known that such action, if successful, could result in rendering 25 the issuer’s financial statements materially misleading. 26 27 28 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 7 1 2 binds the following who receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 3 4 5 attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). 6 VII. 7 8 9 10 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) of the Securities Act [15 U.S.C. § 77t(e)], Defendant is prohibited from acting as an 11 12 officer or director of any issuer that has a class of securities registered pursuant to 13 Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is required to file reports 14 pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]. 15 VIII. 16 17 18 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $114,500, plus prejudgment interest thereon. 19 20 Defendant’s payment of disgorgement and prejudgment interest shall be deemed 21 satisfied by amounts already paid by Defendant to iPayment, Inc. 22 IX. 23 24 25 26 27 28 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. 8
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