Securities and Exchange Commission v. Ralph T. Iannelli et al, No. 2:2018cv05008 - Document 93 (C.D. Cal. 2019)
Court Description: FINAL JUDGMENT AS TO DEFENDANT RALPH T. IANNELLI by Judge Fernando M. Olguin. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $9,960,000, representing profits gained as a result of the conduc t alleged in the Complaint, together with prejudgment interest thereon in the amount of $454,828.21, and a civil penalty in the amount of $640,000 pursuant to Section 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act, for a total of $11,054,828.21. Defendant shall satisfy this obligation by paying $11,054,828.21 to the Securities and Exchange Commission within 14 days after entry of this Final Judgment. SEE ORDER FOR DETAILS. (iv)
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Securities and Exchange Commission v. Ralph T. Iannelli et al Doc. 93 1 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 CENTRAL DISTRICT OF CALIFORNIA 8 Western Division 9 10 SECURITIES AND EXCHANGE COMMISSION, 11 Plaintiff, 12 13 14 15 Case No. 2:18-cv-05008-FMO-AFM FINAL JUDGMENT AS TO DEFENDANT RALPH T. IANNELLI vs. RALPH T. IANNELLI and ESSEX CAPITAL CORPORATION, Defendants. 16 17 18 19 20 21 22 23 24 25 26 27 28 Case No. 2:18-cv-05008-FMO-AFM Dockets.Justia 1 The Securities and Exchange Commission having filed a Complaint and 2 Defendant Ralph T. Iannelli having entered a general appearance; consented to the 3 Court’s jurisdiction over Defendant and the subject matter of this action; consented to 4 entry of this Judgment without admitting or denying the allegations of the Complaint 5 (except as to jurisdiction and except as otherwise provided herein in paragraph V); 6 waived findings of fact and conclusions of law; and waived any right to appeal from 7 this Final Judgment: I. 8 9 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 10 permanently restrained and enjoined from violating, directly or indirectly, Section 11 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 12 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using 13 any means or instrumentality of interstate commerce, or of the mails, or of any 14 facility of any national securities exchange, in connection with the purchase or sale of 15 any security: 16 (a) to employ any device, scheme, or artifice to defraud; 17 (b) to make any untrue statement of a material fact or to omit to state 18 a material fact necessary in order to make the statements made, in 19 the light of the circumstances under which they were made, not 20 misleading; or 21 22 (c) to engage in any act, practice, or course of business which operates or 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: (a) Defendant’s officers, agents, servants, employees, and 27 attorneys; and (b) other persons in active concert or participation with Defendant or 28 with anyone described in (a). 1 1 II. 2 3 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 4 Defendant is permanently restrained and enjoined from violating Section 17(a) of the 5 Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale 6 of any security by the use of any means or instruments of transportation or 7 communication in interstate commerce or by use of the mails, directly or indirectly: 8 (a) to employ any device, scheme, or artifice to defraud; 9 (b) to obtain money or property by means of any untrue statement of a 10 material fact or any omission of a material fact necessary in order 11 to make the statements made, in light of the circumstances under 12 which they were made, not misleading; or 13 14 (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 15 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 16 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 17 binds the following who receive actual notice of this Final Judgment by personal 18 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 19 attorneys; and (b) other persons in active concert or participation with Defendant or 20 with anyone described in (a). 21 III. 22 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 23 Defendant is liable for disgorgement of $9,960,000, representing profits gained as a 24 result of the conduct alleged in the Complaint, together with prejudgment interest 25 thereon in the amount of $454,828.21, and a civil penalty in the amount of $640,000 26 pursuant to Section 20(d) of the Securities Act [15 U.S.C. §77t(d)] and Section 27 21(d)(3) of the Exchange Act [15 U.S.C. §78u(d)(3)], for a total of $11,054,828.21. 28 Defendant shall satisfy this obligation by paying $11,054,828.21 to the Securities and 2 1 Exchange Commission within 14 days after entry of this Final Judgment. 2 Defendant may transmit payment electronically to the Commission, which will 3 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 4 be made directly from a bank account via Pay.gov through the SEC website at 5 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 6 check, bank cashier’s check, or United States postal money order payable to the 7 Securities and Exchange Commission, which shall be delivered or mailed to 8 Enterprise Services Center 9 Accounts Receivable Branch 10 6500 South MacArthur Boulevard 11 Oklahoma City, OK 73169 12 and shall be accompanied by a letter identifying the case title, civil action number, 13 and name of this Court; Ralph T. Iannelli as a defendant in this action; and specifying 14 that payment is made pursuant to this Final Judgment. 15 Defendant shall simultaneously transmit photocopies of evidence of payment 16 and case identifying information to the Commission’s counsel in this action. By 17 making this payment, Defendant relinquishes all legal and equitable right, title, and 18 interest in such funds and no part of the funds shall be returned to Defendant. 19 Amounts collected shall be applied first to disgorgement and then prejudgment 20 interest, until the disgorgement and prejudgment interest amounts in this Final 21 Judgment are fully satisfied; only then shall any amount be applied to post judgment 22 interest. The Commission shall hold the funds (collectively, the “Fund”) and may 23 propose a plan to distribute the Fund subject to the Court’s approval. The Court shall 24 retain jurisdiction over the administration of any distribution of the Fund. If the 25 Commission staff determines that the Fund will not be distributed, the Commission 26 shall send the funds paid pursuant to this Final Judgment to the United States 27 Treasury. 28 The Commission may enforce the Court’s judgment for disgorgement and 3 1 prejudgment interest by moving for civil contempt (and/or through other collection 2 procedures authorized by law) at any time after 14 days following entry of this Final 3 Judgment. Defendant shall pay post judgment interest on any delinquent amounts 4 pursuant to 28 U.S.C. § 1961. IV. 5 6 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 7 Consent is incorporated herein with the same force and effect as if fully set forth 8 herein, and that Defendant shall comply with all of the undertakings and agreements 9 set forth therein. V. 10 11 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for 12 purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 13 11 U.S.C. §523, the allegations in the complaint are deemed true and admitted by 14 Defendant, and further, any debt for disgorgement, prejudgment interest, civil penalty 15 or other amounts due by Defendant under this Final Judgment or any other judgment, 16 order, consent order, decree or settlement agreement entered in connection with this 17 proceeding, is a debt for the violation by Defendant of the federal securities laws or 18 any regulation or order issued under such laws, as set forth in Section 523(a)(19) of 19 the Bankruptcy Code, 11 U.S.C. §523(a)(19). VI. 20 21 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 22 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 23 Judgment. 24 25 Dated: June 5, 2019 26 27 28 ______________/s/______________________ UNITED STATES DISTRICT JUDGE FERNANDO M. OLGUIN 4
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