Securities and Exchange Commission v. Toon Goggles, Inc. et al, No. 2:2019cv07687 - Document 10 (C.D. Cal. 2019)
Court Description: FINAL JUDGMENT AS TO DEFENDANT IRA WARKOL by Judge John F. Walter. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 5 of the Securities Act [15 U.S.C. 77e]. SEE JUDGMENT FOR DETAILS. (iv)
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Securities and Exchange Commission v. Toon Goggles, Inc. et al Doc. 10 Dockets.Justia.com 1 The Securities and Exchange Commission having filed a Complaint and 2 Defendant Ira Warkol having entered a general appearance; consented to the Court’s 3 jurisdiction over Defendant and the subject matter of this action; consented to entry 4 of this Final Judgment without admitting or denying the allegations of the Complaint 5 (except as to jurisdiction and except as otherwise provided herein in paragraph VI) 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 Section 5 of the Securities Act 11 [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable 12 exemption: 13 (a) Unless a registration statement is in effect as to a security, making use of 14 any means or instruments of transportation or communication in 15 interstate commerce or of the mails to sell such security through the use 16 or medium of any prospectus or otherwise; 17 (b) Unless a registration statement is in effect as to a security, carrying or 18 causing to be carried through the mails or in interstate commerce, by any 19 means or instruments of transportation, any such security for the purpose 20 of sale or for delivery after sale; or 21 (c) Making use of any means or instruments of transportation or 22 communication in interstate commerce or of the mails to offer to sell or 23 offer to buy through the use or medium of any prospectus or otherwise 24 any security, unless a registration statement has been filed with the 25 Commission as to such security, or while the registration statement is the 26 subject of a refusal order or stop order or (prior to the effective date of 27 the registration statement) any public proceeding or examination under 28 Section 8 of the Securities Act [15 U.S.C. § 77h]. 1 1 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 2 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 3 binds the following who receive actual notice of this Final Judgment by personal 4 service or otherwise: (a) Defendants’ officers, agents, servants, employees, and 5 attorneys; and (b) other persons in active concert or participation with Defendants or 6 with anyone described in (a). II. 7 8 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 9 Defendant is permanently restrained and enjoined from violating Section 15(a) of the 10 Exchange Act [15 U.S.C. § 78o(a)] by, directly or indirectly, in the absence of any 11 applicable exemption, making use of the mails or any means or instrumentality of 12 interstate commerce to effect any transactions in, or to induce or attempt to induce the 13 purchase or sale of, any security (other than an exempted security or commercial 14 paper, bankers’ acceptances, or commercial bills) unless registered in accordance 15 with Section 15(b) of the Exchange Act [15 U.S.C. § 78o(b)]. 16 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 17 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 18 binds the following who receive actual notice of this Final Judgment by personal 19 service or otherwise: (a) Defendants’ officers, agents, servants, employees, and 20 attorneys; and (b) other persons in active concert or participation with Defendants or 21 with anyone described in (a). 22 III. 23 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND 24 DECREED that Defendant is liable for disgorgement of $1,748,985.42, representing 25 profits gained as a result of the conduct alleged in the Complaint, together with 26 prejudgment interest thereon in the amount of $283,641.40, for a total of 27 $2,032,626.82. Defendant shall satisfy this obligation by paying $2,032,626.82 to the 28 Securities and Exchange Commission within 14 days after entry of this Final 2 1 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 Commission’s website 5 at 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 9 10 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 11 and shall be accompanied by a letter identifying the case title, civil action number, 12 and name of this Court; Ira Warkol as a defendant in this action; and specifying that 13 payment is made pursuant to this Final Judgment. 14 Defendant shall simultaneously transmit photocopies of evidence of payment 15 and case identifying information to the Commission’s counsel in this action. By 16 making this payment, Defendant relinquishes all legal and equitable right, title, and 17 interest in such funds and no part of the funds shall be returned to Defendant. 18 The Commission shall hold the funds (collectively, the “Fund”) and may 19 propose a plan to distribute the Fund subject to the Court’s approval. The Court shall 20 retain jurisdiction over the administration of any distribution of the Fund. If the 21 Commission staff determines that the Fund will not be distributed, the Commission 22 shall send the funds paid pursuant to this Final Judgment to the United States 23 Treasury. 24 The Commission may enforce the Court’s judgment for disgorgement and 25 prejudgment interest by moving for civil contempt (and/or through other collection 26 procedures authorized by law) at any time after 14 days following entry of this Final 27 Judgment. Defendant shall pay post judgment interest on any delinquent amounts 28 pursuant to 28 U.S.C. § 1961. 3 IV. 1 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that that 3 Defendant shall pay a civil penalty in the amount of $189,427 to the Securities and 4 Exchange Commission pursuant to Section 20(d) of the Securities Act [15 U.S.C. 5 §77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. §78u(d)(3)]. 6 Defendant shall make this payment within 14 days after entry of this Final Judgment. 7 Defendant may transmit payment electronically to the Commission, which will 8 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 9 be made directly from a bank account via Pay.gov through the SEC website at 10 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 11 check, bank cashier’s check, or United States postal money order payable to the 12 Securities and Exchange Commission, which shall be delivered or mailed to 13 14 15 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard 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; Ira Warkol as a defendant in this action; and specifying that 18 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 U.S.C. § 1961. 26 V. 27 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 28 Consent of Defendant is incorporated herein with the same force and effect as if fully 4 1 set forth herein, and that Defendant shall comply with all of the undertakings and 2 agreements set forth therein. VI. 3 4 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for 5 purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 6 11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant, 7 and further, any debt for disgorgement, prejudgment interest, civil penalty or other 8 amounts due by Defendant under this Final Judgment or any other judgment, order, 9 consent order, decree or settlement agreement entered in connection with this 10 proceeding, is a debt for the violation by Defendant of the federal securities laws or 11 any regulation or order issued under such laws, as set forth in Section 523(a)(19) of 12 the Bankruptcy Code, 11 U.S.C. §523(a)(19). 13 VII. 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 15 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 16 Final Judgment. 17 VIII. 18 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 19 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 20 and without further notice. 21 22 23 24 Dated: October 28, 2019 ________________________________ UNITED STATES DISTRICT JUDGE 25 26 27 28 5
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