Securities and Exchange Commission v. JustInfo LLC et al, No. 2:2017cv07426 - Document 16 (C.D. Cal. 2017)
Court Description: AMENDED FINAL JUDGEMENT AND PERMANENT INJUNCTION AS TO DEFENDANT JUSTINFO LLC UPON CONSENT 5 by Judge Otis D. Wright, II :Defendant is liable for disgorgement, jointly and severally with Defendant David Weddle, of $375,037.00, representing profi ts gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $13,285.34, for a total of $388,322.34.Defendant shall pay a civil penalty in the amount of $905,353.00 to the Securities and Exchange CommissionRelated to: REQUEST to Alter Judgment re Consent Judgment,, 11 . Unopposed Request to Correct Final Judgment as to Defendant Justinfo LLC 15 (lc)
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Securities and Exchange Commission v. JustInfo LLC et al Doc. 16 1 NO JS-6 2 3 4 5 6 7 8 9 10 11 12 13 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 14 15 16 17 18 Case No. 2:17-cv-07426 ODW(MRWx) AMENDED FINAL JUDGMENT AS TO DEFENDANT JUSTINFO LLC v. JUSTINFO LLC, DAVID WEDDLE, AND SCOTT ALLENSWORTH Defendants. 19 20 21 22 23 24 25 26 27 28 Dockets.Justia.com FINAL JUDGMENT AS TO DEFENDANT JUSTINFO LLC 1 2 The Securities and Exchange Commission having filed a Complaint and 3 Defendant JustInfo LLC (the “Defendant”) having entered a general appearance; 4 consented to the Court’s jurisdiction over Defendant and the subject matter of this 5 action; consented to entry of this Final Judgment without admitting or denying the 6 allegations of the Complaint (except as to jurisdiction and except as otherwise 7 provided herein); waived findings of fact and conclusions of law; and waived any 8 right to appeal from this Final Judgment: 9 I. 10 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 11 permanently restrained and enjoined from violating, directly or indirectly, Section 12 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 13 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using 14 any means or instrumentality of interstate commerce, or of the mails, or of any 15 facility of any national securities exchange, in connection with the purchase or sale of 16 any security: 17 (a) to employ any device, scheme, or artifice to defraud; 18 (b) to make any untrue statement of a material fact or to omit to state a 19 material fact necessary in order to make the statements made, in the light of the 20 circumstances under which they were made, not misleading; or 21 (c) 22 would operate as a fraud or deceit upon any person. 23 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 24 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 25 binds the following who receive actual notice of this Final Judgment by personal 26 service or otherwise: 27 attorneys; and (b) other persons in active concert or participation with Defendant or 28 with anyone described in (a). to engage in any act, practice, or course of business which operates or (a) Defendant’s officers, agents, servants, employees, and 1 II. 1 2 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 3 Defendant is permanently restrained and enjoined from violating Section 17(a) of the 4 Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale 5 of any security by the use of any means or instruments of transportation or 6 communication in interstate commerce or by use of the mails, directly or indirectly: 7 (a) to employ any device, scheme, or artifice to defraud; 8 (b) to obtain money or property by means of any untrue statement of a 9 material fact or any omission of a material fact necessary in order to make the 10 statements made, in light of the circumstances under which they were made, 11 not misleading; or 12 (c) 13 to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 15 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 16 binds the following who receive actual notice of this Final Judgment by personal 17 service or otherwise: 18 attorneys; and (b) other persons in active concert or participation with Defendant or 19 with anyone described in (a). (a) Defendant’s officers, agents, servants, employees, and III. 20 21 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 22 Defendant is permanently restrained and enjoined from violating Section 5 of the 23 Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any 24 applicable exemption: 25 (a) Unless a registration statement is in effect as to a security, making use of 26 any means or instruments of transportation or communication in 27 interstate commerce or of the mails to sell such security through the use 28 or medium of any prospectus or otherwise; 2 1 (b) Unless a registration statement is in effect as to a security, carrying or 2 causing to be carried through the mails or in interstate commerce, by any 3 means or instruments of transportation, any such security for the purpose 4 of sale or for delivery after sale; or 5 (c) Making use of any means or instruments of transportation or 6 communication in interstate commerce or of the mails to offer to sell or 7 offer to buy through the use or medium of any prospectus or otherwise 8 any security, unless a registration statement has been filed with the 9 Commission as to such security, or while the registration statement is the 10 subject of a refusal order or stop order or (prior to the effective date of 11 the registration statement) any public proceeding or examination under 12 Section 8 of the Securities Act [15 U.S.C. § 77h]. 13 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 14 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 15 binds the following who receive actual notice of this Final Judgment by personal 16 service or otherwise: 17 attorneys; and (b) other persons in active concert or participation with Defendant or 18 with anyone described in (a). (a) Defendant’s officers, agents, servants, employees, and IV. 19 20 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 21 Defendant is liable for disgorgement, jointly and severally with Defendant David 22 Weddle, of $375,037, representing profits gained as a result of the conduct alleged in 23 the Complaint, together with prejudgment interest thereon in the amount of 24 $13,285.34, for a total of $388,322.34. Defendant shall satisfy this obligation by 25 paying $388,322.34 to the Securities and Exchange Commission within14 days after 26 entry of this Final Judgment. 27 Defendant may transmit payment electronically to the Commission, which will 28 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 3 1 be made directly from a bank account via Pay.gov through the SEC website at 2 http://www.sec.gov/about/offices/ofm.htm. 3 check, bank cashier’s check, or United States postal money order payable to the 4 Securities and Exchange Commission, which shall be delivered or mailed to 5 Enterprise Services Center 6 Accounts Receivable Branch 7 6500 South MacArthur Boulevard 8 Defendant may also pay by certified Oklahoma City, OK 73169 9 and shall be accompanied by a letter identifying the case title, civil action number, 10 and name of this Court; JustInfo as a defendant in this action; and specifying that 11 payment is made pursuant to this Final Judgment. 12 Defendant shall simultaneously transmit photocopies of evidence of payment 13 and case identifying information to the Commission’s counsel in this action. By 14 making this payment, Defendant relinquishes all legal and equitable right, title, and 15 interest in such funds and no part of the funds shall be returned to Defendant. 16 The Commission shall hold the funds (collectively, the “Fund”) and may 17 propose a plan to distribute the Fund subject to the Court’s approval. The Court shall 18 retain jurisdiction over the administration of any distribution of the Fund. If the 19 Commission staff determines that the Fund will not be distributed, the Commission 20 shall send the funds paid pursuant to this Final Judgment to the United States 21 Treasury. 22 The Commission may enforce the Court’s judgment for disgorgement and 23 prejudgment interest by moving for civil contempt (and/or through other collection 24 procedures authorized by law) at any time after 14 days following entry of this Final 25 Judgment. Defendant shall pay post judgment interest on any delinquent amounts 26 pursuant to 28 U.S.C. § 1961. 27 28 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 4 1 shall pay a civil penalty in the amount of $905,353 to the Securities and Exchange 2 Commission pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and 3 Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall 4 satisfy this obligation by paying $905,353 to the Securities and Exchange 5 Commission within 14 days after entry of the Final Judgment. 6 Defendant may transmit payment electronically to the Commission, which will 7 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 8 be made 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; JustInfo LLC as a defendant in this action; and specifying 18 that payment is made pursuant to this Final Judgment. 19 Defendant shall simultaneously transmit photocopies of evidence of payment 20 and case identifying information to the Commission’s counsel in this action. By 21 making this payment, Defendant relinquishes all legal and equitable right, title, and 22 interest in such funds and no part of the funds shall be returned to Defendant. The 23 Commission shall send the funds paid pursuant to this Final Judgment to the United 24 States Treasury. Defendant shall pay post-judgment interest on any delinquent 25 amounts pursuant to 28 USC § 1961. 26 VI. 27 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 28 Consent is incorporated herein with the same force and effect as if fully set forth 5 1 herein, and that Defendant shall comply with all of the undertakings and agreements 2 set forth therein. 3 VIII. 4 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 5 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 6 Final Judgment. 7 IX. 8 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 9 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 10 and without further notice. 11 12 IT IS SO ORDERED. 13 14 15 16 October 24, 2017 ____________________________________ OTIS D. WRIGHT, II UNITED STATES DISTRICT JUDGE 17 18 19 20 21 22 23 24 25 26 27 28 6 PROOF OF SERVICE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 I am over the age of 18 years and not a party to this action. My business address is: U.S. SECURITIES AND EXCHANGE COMMISSION, 444 S. Flower Street, Suite 900, Los Angeles, California 90071 Telephone No. (323) 965-3998; Facsimile No. (213) 443-1904. On October 23, 2017, I caused to be served the document entitled FINAL JUDGMENT AS TO DEFENDANT JUSTINFO LLC on all the parties to this action OFFICE MAIL: By placing in sealed envelope(s), which I placed for addressed as stated on the attached service list: collection and mailing today following ordinary business practices. I am readily familiar with this agency’s practice for collection and processing of correspondence for mailing; such correspondence would be deposited with the U.S. Postal Service on the same day in the ordinary course of business. PERSONAL DEPOSIT IN MAIL: By placing in sealed envelope(s), which I personally deposited with the U.S. Postal Service. Each such envelope was deposited with the U.S. Postal Service at Los Angeles, California, with first class postage thereon fully prepaid. EXPRESS U.S. MAIL: Each such envelope was deposited in a facility regularly maintained at the U.S. Postal Service for receipt of Express Mail at Los Angeles, California, with Express Mail postage paid. HAND DELIVERY: I caused to be hand delivered each such envelope to the office of the addressee as stated on the attached service list. UNITED PARCEL SERVICE: By placing in sealed envelope(s) designated by United Parcel Service (“UPS”) with delivery fees paid or provided for, which I deposited in a facility regularly maintained by UPS or delivered to a UPS courier, at Los Angeles, California. ELECTRONIC MAIL: By transmitting the document by electronic mail to the electronic mail address as stated on the attached service list. E-FILING: By causing the document to be electronically filed via the Court’s CM/ECF system, which effects electronic service on counsel who are registered with the CM/ECF system. FAX: By transmitting the document by facsimile transmission. The transmission was reported as complete and without error. I declare under penalty of perjury that the foregoing is true and correct. Date: October 23, 2017 /s/ Sarah Mitchell 23 24 25 26 Sarah Mitchell 27 28 1 2 SEC v. JUSTINFO LLC, et al. United States District Court—Central District of California Case No. 2:17-cv-07426 ODW(MRWx) 3 SERVICE LIST 1 4 5 6 7 8 9 Scott White (via U.S. Mail) 300 E. Main Street 4th Floor Lexington, KY 40507 Counsel for Defendants JUSTINFO LLC and DAVID WEDDLE Scott Allensworth (via U.S. Mail) 23220 Haskell Vista Lane Newhall, CA 91321 Pro Se Defendant Scott Allensworth 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2
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