Securities and Exchange Commission v. Hani Zeini, No. 2:2018cv08103 - Document 39 (C.D. Cal. 2019)
Court Description: FINAL JUDGMENT AS TO DEFENDANT HANI ZEINI by Judge John F. Walter. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section10(b) of the Securities Exchange Act of 1934 [15 U.S.C. 78j(b)] and Rule 10b-5 promulgated thereunder. SEE ORDER FOR DETAILS. (MD JS-6, Case Terminated). (iv)
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Securities and Exchange Commission v. Hani Zeini 1 2 3 4 5 6 7 8 Doc. 39 AMY J. LONGO (Cal. Bar No. 198304) Email: longoa@sec.gov DONALD W. SEARLES (Cal. Bar No. 135705) Email: searlesd@sec.gov MATTHEW T. MONTGOMERY (Cal. Bar No. 260149) Email: montgomerym@sec.gov Attorneys for Plaintiff Securities and Exchange Commission Michele Wein Layne, Regional Director Amy J. Longo, Regional Trial Counsel 444 S. Flower Street, Suite 900 Los Angeles, California 90071 Telephone: (323) 965-3998 Facsimile: (213) 443-1904 JS-6 9 UNITED STATES DISTRICT COURT 10 CENTRAL DISTRICT OF CALIFORNIA 11 Western Division 12 13 14 SECURITIES AND EXCHANGE COMMISSION, 15 Plaintiff, 16 17 18 vs. Case No. 2:18-cv-08103-JFW (SKx) FINAL JUDGMENT AS TO DEFENDANT HANI ZEINI HANI ZEINI, Defendant. 19 20 21 22 23 24 25 26 27 28 Case No. 2:18-cv-08103-JFW (SKx) Dockets.Justia.com 1 The Securities and Exchange Commission having filed a Complaint and 2 Defendant Hani Zeini having entered a general appearance; consented to the Court’s 3 jurisdiction over him and the subject matter of this action; consented to entry of this 4 Final Judgment without admitting or denying the allegations of the Complaint (except 5 as to jurisdiction and except as otherwise provided herein in paragraph VI); waived 6 findings of fact and conclusions of law; and waived any right to appeal from this 7 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 a 18 material fact necessary in order to make the statements made, in the light of the 19 circumstances under which they were made, not misleading; or 20 (c) 21 would operate as a fraud or deceit upon any person. 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 binds the following who receive actual notice of this Final Judgment by personal 25 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 26 attorneys; and (b) other persons in active concert or participation with Defendant or 27 with anyone described in (a). 28 to engage in any act, practice, or course of business which operates or II. 1 Case No. 2:18-cv-08103-JFW (SKx) 1 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 2 Defendant is permanently restrained and enjoined from violating Section 17(a) of the 3 Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale 4 of any security by the use of any means or instruments of transportation or 5 communication in interstate commerce or by use of the mails, directly or indirectly: 6 (a) to employ any device, scheme, or artifice to defraud; 7 (b) to obtain money or property by means of any untrue statement of a 8 material fact or any omission of a material fact necessary in order to make the 9 statements made, in light of the circumstances under which they were made, 10 not misleading; or 11 (c) 12 operates or would operate as a fraud or deceit upon the purchaser. 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: (a) Defendant’s officers, agents, servants, employees, and 17 attorneys; and (b) other persons in active concert or participation with Defendant or 18 with anyone described in (a). 19 20 to engage in any transaction, practice, or course of business which III. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant 21 to Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) of 22 the Securities Act [15 U.S.C. § 77t(e)], Defendant is prohibited, for five (5) years 23 following the date of entry of this Final Judgment, from acting as an officer or 24 director of any issuer that has a class of securities registered pursuant to Section 12 of 25 the Exchange Act [15 U.S.C. § 78l] or that is required to file reports pursuant to 26 Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]. 27 28 IV. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 2 Case No. 2:18-cv-08103-JFW (SKx) 1 shall pay a civil penalty in the amount of $160,000 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 make 4 this payment within 14 days after entry of this Final Judgment. 5 Defendant may transmit payment electronically to the Commission, which will 6 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 7 be made directly from a bank account via Pay.gov through the SEC website at 8 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 9 check, bank cashier’s check, or United States postal money order payable to the 10 Securities and Exchange Commission, which shall be delivered or mailed to 11 Enterprise Services Center 12 Accounts Receivable Branch 13 6500 South MacArthur Boulevard 14 Oklahoma City, OK 73169 15 and shall be accompanied by a letter identifying the case title, civil action number, 16 and name of this Court; Hani Zeini as a defendant in this action; and specifying that 17 payment is made pursuant to this Final Judgment. 18 Defendant shall simultaneously transmit photocopies of evidence of payment 19 and case identifying information to the Commission’s counsel in this action. By 20 making this payment, Defendant relinquishes all legal and equitable right, title, and 21 interest in such funds and no part of the funds shall be returned to Defendant. The 22 Commission shall send the funds paid pursuant to this Final Judgment to the United 23 States Treasury. Defendant shall pay post-judgment interest on any delinquent 24 amounts pursuant to 28 USC § 1961. 25 26 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 27 Consent is incorporated herein with the same force and effect as if fully set forth 28 herein, and that Defendant shall comply with all of the undertakings and agreements 3 Case No. 2:18-cv-08103-JFW (SKx) 1 set forth therein. 2 3 VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for 4 purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 5 11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant, 6 and further, any debt for disgorgement, prejudgment interest, civil penalty or other 7 amounts due by Defendant under this Final Judgment or any other judgment, order, 8 consent order, decree or settlement agreement entered in connection with this 9 proceeding, is a debt for the violation by Defendant of the federal securities laws or 10 any regulation or order issued under such laws, as set forth in Section § 523(a)(19) of 11 the Bankruptcy Code [11 U.S.C. § 523(a)(19)]. 12 13 VII. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 14 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 15 Final Judgment. 16 17 18 19 Dated: August 15, 2019 ____________________________________ THE HON. JOHN F. WALTER UNITED STATES DISTRICT JUDGE 20 21 22 23 24 25 26 27 28 4 Case No. 2:18-cv-08103-JFW (SKx)
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